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18 October 2018
Leominster Man Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Leominster man pleaded guilty yesterday in federal court in Boston to passport fraud.
“John Doe,” whose true identity and age are presently unknown, and whose last known address was in Leominster, pleaded guilty to one count of making false statements in a passport application. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 17, 2019.
At the plea hearing, Doe admitted that in December 2011, he entered a Jamaica Plain post office and used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Lauren A. Graber of Lelling’s Criminal Division are prosecuting this case.
Lenoir City Resident Indicted for Fraud Scheme Involving Elderly VictimsRead the Press Release
KNOXVILLE, Tenn. – On October 16, 2018, a federal grand jury in Knoxville returned a six-count indictment against Christina Erin Myers, 36, of Lenoir City, Tennessee, charging her with wire fraud and money laundering. Myers appeared before U.S. Magistrate Judge Deborah Poplin in U.S. District Court on October 18, 2018, and pleaded not guilty to the charges included in the indictment.
Myers trial is set for December 18, 2018, in U.S. District Court. If convicted, she faces 20 years in prison.
The indictment alleges that from May 2014 through July 2018, Myers engaged in a scheme to defraud elderly individuals under the guise of selling them residential properties at Williams Ferry Pointe (WFP), which is a senior living community in Lenoir City, Tennessee. WPF is operated by Tennessee Baptist Adult Homes (TBAH), a provider of residential care for senior adults and adults with exceptional needs. She allegedly implemented her scheme by diverting funds that were for the purchase of the real estate to her own personal use and marketing non-existent senior community housing. The indictment further alleges that Myers promoted and sold fictitious investment opportunities and diverted those funds to her own personal use instead of investing them for the victims. In total, Myers fraudulently obtained approximately $518,000. Additional details of her scheme are outlined in the indictment, which is on file with the U.S. District Court and available to the public.
Agencies whose investigation led to indictment of Myers include the Internal Revenue Service - Criminal Investigation and the Lenoir City Police Department. Assistant U.S. Attorney Frank Dale will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Leader of Target Department Store Credit Card Fraud Scheme Sentenced to 6.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Frank Her, 39, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to six years and six months in prison for conspiracy to commit access device fraud, possession of device-making equipment, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, Her was the leader of an organization numbering up to 50 people who created fraudulent credit cards, stole others’ mail, and compromised victims’ identities. Her specifically conspired with others to traffic in and use unauthorized Target REDcard account numbers to obtain things of value in excess of $1,000 in a one-year period. Her’s conduct involved at least 500 unauthorized and counterfeit cards, affected hundreds of victims, and led to an estimated actual loss of over $200,000 to those victims.
Her operated a credit card and access device “lab” out of his garage in Sacramento, which included possessing and operating voluminous device-making equipment used to create fake credit, debit, gift, and other banking cards, falsifying government identification documents, and washing checks. In particular, Her would create fraudulent Target REDcards in his garage, give them to co-conspirators, and direct them to use those REDcards to buy merchandise and other items at Target stores in the Sacramento area. Her learned an algorithm revealing how to create working Target REDcard account numbers and encoded those account numbers onto blank cards without authorization from Target or the account holders. To avoid detection, Her often sent co‑conspirators to Target alone or, if he went himself, wore disguising clothing and accessories. Her also personally stole mail and directed others to do so.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and André M. Espinosa are prosecuting the case.
Five of Her’s six co-defendants have already been sentenced, with the final co-defendant, Amy Her, scheduled to be sentenced on October 25, 2018.
Large Metro Denver Cocaine and Methamphetamine Trafficking Organization Members Indicted and ArrestedRead the Press Release
DENVER – During an early raid this morning, over 100 law enforcement officers arrested members of two separate but related drug trafficking organizations, U.S. Attorney Bob Troyer, FBI Denver Division Acting Special Agent in Charge Janeen Diguiseppi, DEA Denver Division Special Agent in Charge Tim McDermott, and IRS-Criminal Investigations Special Agent in Charge Steven Osborne announced. The Northern Colorado Drug Task Force (NCDTF) also played a critical role in the investigation. Of those indicted, 18 have been arrested (8 of them in Mexico, one in New Mexico, 2 in El Paso) as of the time this press release was issued. The remaining defendants, including 2 in Denver are being sought and will be considered fugitives.
In January 2015, the NCDTF initiated an investigation into the Acosta cocaine trafficking organization. Defendant Omar Chavez-Gutierrez was identified as the head of the Acosta Drug Trafficking Organization (DTO). In March 2017, members of the Denver OCDETF Strike Force started a new investigation into two independent but connected cocaine trafficking organizations. The first DTO was led by Omar Chavez-Gutierrez. The second DTO was directed by Mexican Source of Supply Eduardo Ramon Tarango-Tarango, with assistance from Colorado-based cell head Armando Colacion-Talamantes. The two organizations used a common source of supply, shared distributors, and maintained an overlapping customer base. Both DTOs obtained cocaine from multiple sources in Chihuahua, Mexico. The cocaine crossed the U.S./Mexico border between Juarez and El Paso. Multi-kilogram shipments were transported by couriers to Colorado where the cocaine was delivered to distributors in the Denver metro area, and then sold to lower-level dealers. Bulk cash drug proceeds were hidden in courier vehicles and transported to sources of supply in Mexico.
Based on this information, a federal grand jury in Denver returned five indictments charging 35 defendants with drug trafficking related crimes. During the course of the investigation law enforcement seized approximately 25 kilograms of cocaine, 25 pounds of methamphetamine and $500,000. During today’s raid, an additional 4 kilos of heroin, 1 ¼ kilo of cocaine, $47,000 cash, 5 handguns, 2 rifles (AK-47 and AR-15) and a car were seized.
If convicted, all defendants face multiple drug trafficking charges. Each face not less than 10 years, and up to life, as well as a fine of up to $10,000,000.
This case was investigated by the Denver OCDETF Strike Force, including the FBI, DEA, IRS-CI, the Northern Colorado Drug Task Force and the Colorado Attorney General’s Office. Agencies that assisted with today’s arrests include: the United States Marshals Service, the Aurora Police Department, ATF, ICE, DEA Colorado Springs Residence Office, DEA El Paso, and DEA Las Cruces.
The defendants were prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Zachary Phillips.
The indictments contain allegations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
Kansas Man Pleads Guilty to Not Paying Employment TaxesRead the Press Release
KANSAS CITY – A Jefferson County man pleaded guilty today to failing to pay over payroll taxes to the Internal Revenue Service for a medical staffing company he owned, U.S. Attorney Stephen McAllister said.
David Monhollon, 61, Ozawkie, Kan., pleaded guilty to one count of failing to pay payroll taxes owed by First Call Medical Group, LLC. The company provided medical staffing services to health care providers. In his plea, Monhollon admitted he failed to pay a total of $68,261 for seven quarters of the company’s payroll taxes. He admitted he knew the taxes were due but paid other obligations such as payroll, utilities and telephone bills instead.
He will be sentenced at a later date. He faces a penalty of up to five years in federal prison and a fine up to $250,000. McAllister commended IRS – Criminal Investigation, Tax Division Trial Attorney John Mulcahy and Assistant U.S. Attorney Leon Patton for their work on the case.
Kansas City Physician Sentenced to Prison for Illegal Reselling and Prescribing of Hormones and SteroidsRead the Press Release
St. Louis, MO – John C. Verstraete, 55 of Kansas City, KS, was sentenced to 12 months imprisonment today in the U.S. District Court in Kansas City, Missouri for health care fraud and illegal prescription of drugs. Dr. Verstraede appeared before Judge Gary A. Fenner who accepted his plea to health care fraud and distribution of controlled substances outside the scope of legitimate medical practice in April.
Verstraete admitted to prescribing Human Growth Hormone (HGH) to a number of patients who, having received reimbursement for the prescription through their health care plans, resold the hormones back to Verstrade for cash. This re-sold HGH provided Verstreade’s medical practice with an inventory of HGH which he then resold to other patients for unauthorized purposes.
Verstraete also admitted to obtaining approximately 25,000 units of illegal, anabolic steroids from foreign countries and dispensing them to patients with no medical need for them. This receipt and prescription practice occurred totally outside the FDA and DEA regulatory oversight process.
Verstraete maintained medical offices at 3215 Main Street in Kansas City.
In response to today’s sentencing, William Callahan, DEA Special Agent in Charge of the St. Louis Division said, “No one, especially a medical professional who takes an oath to practice medicine, is above the law. Those who try to deceive the system and willingly do harm to others by prescribing unnecessary medications will be brought to justice.”
“Health care professionals who illegally distribute prescription drugs and controlled substances may put their patients’ health at risk,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice criminals who jeopardize the public’s health.”
This case has been investigated by the Drug Enforcement Administration and the U.S. Food and Drug Administration.
KC Man Sentenced to 15 Years for Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for a nearly $500,000 investment fraud scheme.
Ryan Scott Luscombe, 45, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole. The court also ordered Luscombe to pay $483,482 in restitution to his victims.
Luscombe was found guilty at trial on Feb. 12, 2018, of three counts of wire fraud, two counts of mail fraud and one count of money laundering.
Luscombe solicited investments for his business, Five Star Trading Group, Inc., claiming to investors that he would utilize his expertise in stock trading to produce exorbitant returns. Instead, evidence introduced during the trial indicated that nearly all the investor funds, which totaled $483,482, was used by Luscombe on personal expenditures in 2013, 2014 and 2015, including the purchase of a 2010 BMW 750I and a trip to Bermuda.
Several victim investors used money from their retirement accounts to invest with Luscombe. None of Luscombe’s investors have received funds from returns or the return of their original investment.
During the course of the scheme to defraud victims of their investment money, Luscombe represented himself as a wealthy individual and a successful day trader capable of producing tremendous returns on investments. Luscombe lied to investors about his past success in order to obtain their money for his own personal use and financial gain.
Luscombe told investors he was creating a new business to manage over $50 million from three investors in Arizona. Luscombe claimed he would be the primary investment trader, but because the dollar amount to be invested would be too large for one person to handle, he was recruiting additional individuals to assist in his trading endeavor. In exchange for a fee or investment in the business, Luscombe offered to train the additional individuals in his trading strategy. Eventually, Luscombe told investors he would allow a small number of friends and family to take advantage or “piggyback” off the investment strategy of the larger investors.
Luscombe’s stated investment strategy was to trade securities in the stock market based on the identification of trends in the upward or downward direction of the stock price. Luscombe told investors the risk was very low and minimal because he constantly monitored the stock price. Luscombe told investors he had been in the trading business for many years and had previously made millions of dollars.
Luscombe regularly provided positive projected investment return updates to the victims regarding their investments, and claimed investor money would be utilized for trading and generating profits for investors. As a direct result of these conversations, investors entrusted their money to him.
Investors never authorized Luscombe to spend investment money on personal expenditures. Luscombe never told investors their investment money would be spent on his personal expenditures. A salary for Luscombe was not authorized by investors. At the time of investment, Luscombe never informed investors that investment funds would be utilized to pay his salary. An analysis of financial activity revealed Luscombe’s spending of investor funds included the following: (a) $83,088 in cash and cash equivalents; (b) $78,542 in retail expenses; (c) $67,990 in restaurants and entertainment; (d) $52,925 in vehicle expenses; (e) $45,940 in travel expenses; (f) $41,058 in rent and utilities; (g) $39,673 in investment firm losses, fees, and interest1; and
(h) $21,144 in nutrition, fitness and beauty expenses.Luscombe was not registered with the Financial Industry Regulatory Authority as a broker dealer or as an investment advisor representative. Luscombe and Five Star Trading Group were not registered with the Missouri Secretary of State – Securities Division.
In 2016, Luscombe notified the victims that all of their investor funds had been lost in trading and that Five Star was forced to close down.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman and Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the FBI.
KC Man Sentenced to 15 Years for Heroin Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing a firearm.
Sidney A. Williams, 65, was sentenced by U.S. Chief District Judge Greg Kays to 15 years and eight months in federal prison without parole. The court also sentenced Williams to supervised release for the rest of his life following incarceration, and ordered him to forfeit to the government $10,000.
On May 1, 2018, Williams pleaded guilty to participating in a conspiracy to distribute heroin and to being a felon in possession of a firearm and ammunition.
Williams admitted that he participated in the drug-trafficking conspiracy from October 2012 to September 2016. In February 2013, detectives of the Kansas City, Mo., Police Department became aware of a large-scale heroin trafficking organization operating in the Kansas City metropolitan area and began working with the Drug Enforcement Administration to investigate. Williams was identified as a distributor of black tar heroin in the metropolitan area.
Williams was arrested on April 30, 2014, for possession of a controlled substance. Officers searched his residence and found a loaded Hi-Point .40-caliber pistol, black tar heroin, crack cocaine, pills, a book of prescriptions and drug paraphernalia. Williams also had a bag of black tar heroin and marijuana in his pockets.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has a prior federal felony conviction for being a felon in possession of a firearm, for which he was sentenced to 15 years in prison. Williams also has prior felony convictions for bank robbery, robbery and assault.
Williams is among five defendants who have been convicted in this case. Four co-defendants also have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes, IV, and Trey Alford. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Jerry Bowman Arrested for Armed Robbery of Carter County BankRead the Press Release
GREENEVILLE, Tenn. – On October 17, 2018, Jerry Bowman, 58, of Johnson City, Tennessee, was arrested for the robbery of the Carter County Bank on Milligan Highway in Johnson City, Tennessee.
U.S. Magistrate Judge Clifton L. Corker issued a criminal complaint, charging Bowman with the armed robbery of the bank and with brandishing a firearm in furtherance of the robbery. The complaint, on file with the U.S. District Court, alleges that at approximately 1:30 p.m. on October 17, 2018, Bowman entered the Carter County Bank branch, displayed a firearm, and demanded money from the bank tellers. After taking the cash from the tellers, Bowman fled in a blue Ford Fusion. Later that evening, officers stopped a blue Ford Fusion, being driven by another individual, who admitted to residing with Bowman and knowing about the robbery. That stop led to the arrest of Bowman at his residence, where officers recovered money taken in the robbery and the firearm he used.
If convicted, Bowman faces up to 25 years in prison for the robbery. Additionally, he faces a consecutive mandatory minimum sentence of seven years up to life for the firearms charge. Upon his release from prison, he will be subject to up to five years of supervised release by U.S. Probation.
The investigation leading to the arrest was the product of the combined efforts of the Elizabethton Police Department, Carter County Sheriff’s Office, Johnson City Police Department, and FBI. Assistant U.S. Attorneys J. Gregory Bowman will represent the United States in court proceedings.
Members of the public are reminded that a complaint constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Jacksonville Man Sentenced to Five Years in Federal Prison for Firearms OffenseRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Melvin Charles Chapman (63, Jacksonville) to five years in federal prison for possessing firearms as a convicted felon. Chapman had pleaded guilty on April 26, 2018.
According to court documents, on November 16, 2017, the Jacksonville Sheriff’s Office SWAT team executed a search warrant at Chapman’s home in Jacksonville. During the search, nine firearms were found, as well as numerous rounds of ammunition and illegal drugs. At the time, Chapman had multiple felony convictions and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jacksonville Doctor Pleads Guilty to Theft of Government Property for Kickbacks Received for Writing Prescriptions for Compounded MedicationsRead the Press Release
Jacksonville, Florida – U.S. Attorney Maria Chapa Lopez announces that Dr. Felmor Agatep (59, Jacksonville) pleaded guilty today to theft of government property for receiving kickbacks related to a federal health care benefit program. Agatep faces a maximum penalty of 10 years in federal prison.
According to the plea agreement, Agatep, a medical doctor practicing in Jacksonville, wrote prescriptions for expensive compound creams to treat scars and pain, among other things. These creams, which were prescribed largely to TRICARE beneficiaries, costing on average more than $16,000 per cream for a one-month supply. Beginning in late 2014, Agatep was recruited by an individual associated with a marketing group in Jacksonville that recruited largely TRICARE beneficiaries as patients and promoted compounded creams for various pharmacies. Agatep was paid $100 per patient to write prescriptions for compound creams that were filled and billed to TRICARE. Individuals working for the marketing group provided patient names and phone numbers to Agatep. Agatep never saw the patients and knew that writing the prescriptions was not in the ordinary course of medical practice and not medically necessary.
Between December 12, 2014, and January 31, 2015, Agatep wrote 268 prescriptions for compound cream medications for TRICARE beneficiaries, for which TRCIARE was billed approximately $4.4 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Julie Hackenberry.
Italian Smuggler Caught After Fleeing from Border PatrolRead the Press Release
ALBANY, NEW YORK – Efisio Mascia, age 36, and a citizen of Italy residing in Ibiza, Spain, was arrested Tuesday after a high-speed flight from Border Patrol on New York State Route 37 near Malone, New York. The arrested followed a failed smuggling attempt. No one was injured.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
According to the criminal complaints, Border Patrol Agents interrupted an alien smuggling event in progress along the border near the Fort Covington Port of Entry. An agent attempted to pull over a New Jersey-plated BMW that was observed on a private dirt road along the border at the same time that a woman was observed illegally crossing the border. The BMW initially yielded to the Border Patrol Agent, but sped off at a high rate of speed. Agents lost contact with the vehicle but later came upon it stopped in traffic at the intersection of State Routes 37 and 11. A Border Patrol agent pulled into the intersection with emergency lights on, blocking the BMW, when the BMW then backed up at a high rate of speed, turned 180 degrees in the opposite direction and fled again.
Agents found the driver, Mascia, hiding behind a closed store, and found the smuggled alien, a woman from France, in a store parking lot across the street. The BMW was later found abandoned on Route 30 south of Malone.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Mascia was charged with transporting an alien unlawfully present in the United States. He appeared today before United States Magistrate Judge Gary L. Favro and was ordered detained pending a detention hearing scheduled for October 25. The smuggled alien, Sofie You, age 38, of Paris, France, is charged with the misdemeanor offense of entry without inspection.
The charges filed against Mascia carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Iranian Television Personality Sentenced to Federal Prison for Paying $39,000 in Cash Bribes to Corrupt Immigration OfficersRead the Press Release
LOS ANGELES – A personality on a Persian-language television network who formerly acted as an “immigration consultant” was sentenced today to one year and one day in federal prison for paying cash bribes to corrupt U.S. Citizenship and Immigration Services (USCIS) officers in exchange for the immigration officers approving applications for citizenship.
Vida Heravi, 59, of Beverly Hills, who co-hosts a talk show host on the Tapesh TV Network, was sentenced by United States District Judge Michael W. Fitzgerald.
Heravi pleaded guilty in May to one count of conspiracy to bribe public officials employed by USCIS. When she pleaded guilty, Heravi specifically admitted paying at least $39,000 in cash bribes to corrupt USCIS officers.
During the course of the scheme, corrupt immigration officers approved the applications of ineligible aliens to become naturalized citizens, typically receiving $1,000 per alien. Heravi paid at least $39,000 on behalf of 43 ineligible aliens.
Heravi also admitted in court that she submitted to USCIS at least 20 fraudulent medical waivers that falsely indicated a doctor had diagnosed the aliens as suffering from conditions that exempted them from the English-reading and language requirements in the naturalization process. Heravi used the fraudulent medical waivers to assist the corrupt USCIS officers in evading detection and to mislead other officers.
The USCIS officers accepted cash in exchange for falsely certifying that immigrants had met requirements for citizenship such as “passing” the English competency and civics portions of the naturalization interview and examination administered by USCIS. The corrupt immigration service also accepted the fraudulent medical waivers without questioning the interviewing aliens’ medical disability.
Another woman charged in the bribery conspiracy along with Heravi in a grand jury indictment – Mohdeh Erfani, 50, of Irvine – has pleaded guilty and is pending sentencing.
Previously in this investigation, former USCIS officer Daniel Espejo Amos was sentenced to three years in federal prison for taking bribes from Heravi and other immigration consultants.
The prosecution of Heravi and the others is the result of a joint investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Department of Homeland Security’s Office of the Inspector General, and the Federal Bureau of Investigation.
This matter was prosecuted by Assistant United States Attorney Elisa Fernandez of the Public Corruption and Civil Rights Section.
Inmate Pleads Guilty to Vicious AssaultRead the Press Release
Jackson, Miss. – Curtis Pixley, 39, of Washington, D.C., pled guilty yesterday before Chief United States District Judge Daniel P. Jordan III, to intentionally assaulting another person and to possessing a shank in prison, announced U.S. Attorney Mike Hurst.
On September 7, 2017, Curtis Pixley—a federal prisoner—retrieved a 9-inch shank from his cell in a housing unit at the federal penitentiary in Yazoo City, Mississippi. He walked to a table where prisoners were seated and as a prisoner got up from the table Mr. Pixley began stabbing him repeatedly. The victim survived his injuries.
Pixley will be sentenced in Jackson by Judge Jordan on January 25, 2018, and faces a maximum penalty of 15 years in prison, followed by up to 6 years of supervised release, and a $500,000 fine.
This case was investigated by the Federal Bureau of Prisons.
Illegal alien living in Abbeville sentenced to 90 months in prison for possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico was sentenced Wednesday to seven years and six months in prison for using his phone and an online account to acquire and possess child pornography.
Paul Armenta-Bojorquez, 34, of Sinaloa, Mexico, but who resided in Abbeville, Louisiana, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of child pornography. According to the May 16, 2018 guilty plea, law enforcement agents interviewed Armenta-Bojorquez on November 13, 2017 regarding possession of child pornography. He told agents that he received child pornography through his phone and then transferred it onto an online account. Law enforcement agents reviewed the material found on the online account, and it contained child pornography. Some of the material was of children who were younger than 12.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and the Louisiana Attorney General’s Louisiana Bureau of Investigation Cyber Crime Unit conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Henryetta Woman Pleads Guilty to Theft by Bank EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stacey Becker Lawson, age 41, of Henryetta, Oklahoma, entered a guilty plea to Theft, Embezzlement Or Misapplication By Bank Employee, in violation of Title 18, United States Code, Section 656, punishable by not more than 30 years imprisonment, up to a $1,000,000.00 fine, or both.
The Indictment alleged that from in or about 2015, the exact date unknown to the Grand Jury, until on or about June 13, 2018, in the Eastern District of Oklahoma, the defendant, being an employee of, and connected in a capacity with, American Exchange Bank of Henryetta, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said American Exchange Bank of Henryetta, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets and securities entrusted to the custody and care of American Exchange Bank of Henryetta, Oklahoma, in that the defendant withdrew cash and transferred funds from the bank and misapplied, embezzled, abstracted and purloined the funds.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Greenville Woman Guilty of Fraud Involving ImmigrationRead the Press Release
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that on October 17, 2018, Veronica Perdomo, age 43, of Greenville, South Carolina, entered a plea of guilty as charged before United States District Judge Timothy M. Cain. Perdomo pled guilty to two counts of Wire Fraud, each such count carrying a sentence of up to 20 years in prison, four counts of Impersonating an Officer or Employee of the United States, each such count carrying a sentence of up to 3 years in prison and twelve counts of Fraudulently Affixing the Seal of an Agency of the United States to a Document, each such count carrying a sentence of up to 5 years in prison. Sentencing will occur after the preparation of a presentence report by the United States Probation Office.
At the guilty plea hearing, Assistant United States Attorney David C. Stephens advised Judge Cain of the following facts: Perdomo devised a scheme whereby she, at various times, pretended to be either an employee, officer or attorney working with or for the Department of Homeland Security, U.S. Citizenship and Immigration Services (DHS/CIS). Perdomo would seek out aliens who were either illegally in the United States or were here legally but having problems with their immigration status. For a fee, Perdomo would “assist” these people in dealing with their immigration problems. In truth and fact she did absolutely nothing to assist them with their problems. In order to facilitate the scheme and artifice, Perdomo would prepare documents that she claimed were being sent to DHS/CIS, which actually were simply being piled up in a storage shed behind her home. Perdomo would then create bogus documents bearing the seal of DHS/CIS which she claimed were being sent from DHS/CIS and provide same to her victims to purportedly show that their situations were being addressed. USA Lydon advised that further details of the case could be found in the Indictment, a copy of which is attached.
USA Lydon further advised that a co-defendant in the case, Latoya Sanders, age 30, of Greenville, South Carolina, had earlier entered a plea of guilty as outlined in a press release which is also attached hereto. At the time of that plea no facts concerning the case were released due to Perdomo’s case being pending. USA Lydon stated that Sanders played a lesser role in the offense than did Perdomo and was basically used to collect money from the victims and assist Perdomo in her charade of being a part of the DHS/CIS.
USA Lydon commended the efforts of the real agents from DHS/CIS who she said worked many hours conducting a superb investigation. Additionally, Lydon had high praise for the officers from the Greenville City Police Department who originated the case and were outstanding partners as the investigation moved in to the federal arena.
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sanders_latoya_-_plea.pdf indictment.pdfGrand Jury Returns Superseding Indictment in Shamo Case; Adds Distribution of Fentanyl Count Resulting in DeathRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a second superseding indictment Thursday morning in the Aaron Michael Shamo case. The 13-count indictment alleges a count of aiding and abetting the distribution of a controlled substance (fentanyl) resulting in death.
The indictment alleges that Shamo intentionally and knowingly distributed a substance containing Fentanyl, the use of which resulted in the June 13, 2016, death of a person identified as R.K. in the indictment.
The superseding indictment charges one count of Continuing Criminal Enterprise; three counts of aiding and abetting the importation of a controlled substance; one count of possession of a controlled substance with intent to distribute, one count of manufacture of a controlled substance and two counts of knowing and intentional adulteration of drugs while held for sale. It also includes one count of aiding and abetting the use of the U.S. mail in furtherance of a drug trafficking offense, one count of conspiracy to commit money laundering, one count of money laundering promotion and concealment, and one count of engaging in monetary transactions in property derived from specified unlawful activities – in addition to the distribution resulting in death count.
The indictment alleges Shamo directed an international drug trafficking organization that imported Fentanyl and Alprazolam from China and manufactured controlled substances, namely fake oxycodone pills made with Fentanyl and counterfeit Xanax tablets. Documents filed by federal prosecutors as a part of the case allege Shamo and his co-conspirators purchased pill tableting machines – sometimes called pill presses – to mark pills so the markings would match those of legitimate pharmaceutical drugs. The organization distributed these controlled substances to other individuals for distribution throughout the United States and elsewhere using their storefront, PHARMA-MASTER, on the Dark Net marketplace AlphaBay and through the U.S. mail, according to the indictment and case documents. According to a complaint filed in the case, when law enforcement officers executed a search warrant at Shamo’s house in November 2016, they found approximately 70,000 pills that had the appearance of Oxycodone and more than 25,000 pills that appeared to be Alprazolam. The drug trafficking organization distributed more than 800,000 pills.
Counts 8 and 9 of the indictment allege Shamo manufactured round blue tablets with markings on them to look like Oxycodone tablets. He offered the tablets for sale on the internet as Oxycodone 30 mg tablets. Despite these representations, the defendant did not use Oxycodone in the manufacturing process. He substituted Fentanyl, a much more potent synthetic opioid, the indictment alleges.
The organization began as a collaboration between Shamo and Drew Wilson Crandall, but grew to include others.
Crandall, age 32, most recently of Brisbane, Australia, pleaded guilty in federal court Wednesday to conspiracy to distribute Fentanyl, conspiracy to distribute Alprazolam, and conspiracy to commit money laundering. As a part of a statement in advance of the plea agreement filed in court, Crandall admitted that he and his co-defendant, Shamo, imported and distributed controlled substances in Utah and elsewhere. He admitted they sold controlled substances on dark web marketplaces. As he made plans to leave the country, he trained co-conspirators to assume the roles he had held in the organization. He admitted he stayed in contact with Shamo after leaving Utah and began to provide online customer support for Shamo’s vendor account on AlphaBay. This work continued until Shamo’s arrest in November 2016.
Crandall admitted that the co-conspirators each had a role to play and they relied on each other to meet their common objective: to earn money by selling drugs.
According to the plea agreement, Shamo normally paid Crandall by bitcoin while he was out of the country. However, at his request in November 2016, Shamo deposited drug proceeds – specifically U.S. currency – into Crandall’s bank account as payment for his ongoing services to PHARMA-MASTER.
Federal prosecutors have agreed to recommend Crandall be sentenced at the low end of the sentencing guideline range determined by the Court. He faces up to life in prison with a mandatory minimum of 10 years in prison for the conspiracy to distribute fentanyl conviction, up to five years for the for conspiracy to distribute alprazolam, and a maximum of 20 years for conspiracy to commit money laundering.
Other defendants charged in earlier indictments have also reached plea agreements in the case. They include Alexandrya Marie Tonge, age 26, and Katherine Lauren Anne Bustin, age 28, both of South Jordan, Utah; and Mario Anthony Noble, age 29, and Sean Michael Gygi, age 28, both of Midvale, Utah. Sentencings for these defendants will be scheduled at a later date.
Shamo faces a mandatory life sentence if convicted of the Continuing Criminal Enterprise count in the indictment. Several other counts, including aiding and abetting the importation of fentanyl, possession of fentanyl with intent to distribute and aiding and abetting the distribution of a controlled substance resulting in death carry potential life sentences. Other counts carry potential sentences of five years to 40 years.
The indictment includes a notice that federal prosecutors intend to seek criminal forfeiture of property and proceeds derived from the alleged conduct or used to commit or facilitate the commission of the offenses. Included in the notice is millions of dollars in U.S. currency, an industrial large pill press and associated dyes, four 100-ounce silver bars, and cash as a substitute for two vehicles sold as a part of the case – among other things.
Indictments are not findings of guilt. An individual charged in an indictment is presumed innocent unless or until proven guilty in court.
A three-week trial is set to start on Jan. 22, 2019, before U.S. District Judge Dale A. Kimball.
Special Assistant U.S. Attorneys from the Utah Attorney General’s Office are joining an Assistant United States Attorney in the U.S. Attorney’s Office in Salt Lake City in prosecuting the case. U.S. Postal Inspectors and special agents of U.S. Immigrations and Customs Enforcement Homeland Security Investigations, the FDA, DEA Metro Narcotics Task Force in Salt Lake City, and IRS-Criminal Investigation are investigating the case.
Fourteenth and Final Member of the “Felony Lane Gang” Pleads Guilty in $1 Million Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – The final defendant in the federal indictments charging 14 Florida residents with a bank fraud conspiracy involving over $1 million in losses pleaded guilty today. Kevin Williams, age 43, of Fort Lauderdale, Florida, pleaded guilty to federal charges of bank fraud conspiracy and aggravated identity theft. Williams was a member of the nationwide group of fraudsters known to law enforcement as the “Felony Lane Gang,” whose members traveled from Florida to Maryland and other states, broke into vehicles parked at recreation areas, sports fields, gyms, fitness centers, and other locations, and stole wallets, purses and other items left in the vehicles. Williams and his co-defendants used the victims’ stolen checks, credit cards and identifications to conduct fraudulent financial transactions.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Daniel Kurz of the United States Secret Service - Baltimore Field Office; Chief Darryl McSwain of the Maryland National Capital Park Police, Montgomery County Division; Chief Stanley Johnson of the Maryland National Capital Park Police, Prince George’s County Division; Chief Gary Gardner of the Howard County Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
According to his guilty plea and other court documents, from September 2012 through July 2015, Williams is part of an organized group out of Florida who travel around the United States committing check fraud. Traveling groups generally consisted of two to four managers and one to six “strikers” (sometimes called “faces”) or persons who passed the fraudulent and stolen checks. Williams and his co-conspirators recruited prostitutes, drug addicts and other vulnerable individuals as faces to travel with them to conduct financial transactions using the stolen checks, driver’s licenses and other materials, and paid them with drugs, food, and small amounts of cash amounting to a fraction of the total value of the checks they cashed. They traveled in rental cars and stayed in hotels, sometimes paying for the rental cars and hotel rooms using victims’ identities and credit cards.
The managers, including Williams, went to locations where individuals often leave their belongings in their car—such as gyms, parks, and athletic fields—and broke into vehicles and stole wallets and purses for the identifications, credit cards, and check books—collectively called “paper.” Other items were usually discarded. The “paper” was provided to the strikers, along with glasses and wigs to allow them to resemble the individuals pictured in the stolen forms of identification. These co-conspirators, generally in teams of a driver and a passenger posing as the victim, traveled to banks to cash the checks stolen from victims. The managers were either in another car parked nearby so they could watch the transaction and look out for police, or they were crouched down behind the front seat.
As detailed in his plea agreement, Williams managed a crew and often coordinated crews who were in the same area at the same time. He both obtained the “paper” that was later distributed to strikers so that fraudulent checks could be cashed, and traded “paper” between crews as they came and went in a particular area. Williams assisted co-conspirators in cashing checks using the names and identifying information of the victims at banks in Maryland, including in Columbia, Millersville, and Edgewater.
According to their indictments and other court documents, the conspirators traveled throughout Maryland and other states conducting these thefts and financial transactions in one location for several days or weeks until the banks or law enforcement began thwarting their activities. Then they returned to Florida or moved on to another location, burying or hiding for future use the checks, credit cards, identification cards and other items they had stolen from vehicles, but had not yet used. A few weeks or months later, after scrutiny of their activities had faded, the defendants would return to Maryland, retrieve the hidden items, and use them to continue their financial fraud scheme.
As part of his plea agreement, Williams will be required to pay restitution in the full amount of the loss, which the government contends is no greater than $550,000. The full amount of the loss will be determined at sentencing.
Williams faces a maximum penalty of 30 years in prison for bank fraud conspiracy and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January15, 2019, at 10:00 a.m.
The following 13 defendants have all pleaded guilty in a related case and nine were sentenced to between time served and 54 months in federal prison:
Theodore L. Pittman, a/k/a Teddy, Tony, and Bear, age 32, of Lauderhill, Florida; Courtney B. Walker, a/k/a Wayne Leo Walker, age 28, of Ft. Lauderdale, Florida; James J. Blakey, a/k/a Jamal, age 29, of Ft. Lauderdale; Vincent Lee Sands, a/k/a Young SP, and Chad, age 26, of Lauderhill; Tara Kathleen Whyte, age 29, of Hollywood, Florida, and Gambrills, Maryland; Tracy Lee Whyte, a/k/a Nikki, age 34, also of Hollywood and Gambrills; Heather Brooke Roberts, age 45, of Perry, Ohio; Michael J. Walker, age 44, of Pompano Beach, Florida, and Perry, Ohio; Shannon Elise Isley, age 29, of Sunrise, Florida; Lauren Anne Bole, age 28, of Miramar, Florida; Felicia Kaye Waybright, a/k/a Felicia Kaye Phillips, age 25, of Daytona Beach, Florida; Ronald Jason Rhoda, a/k/a Jason Rhoda, age 43, of Hollywood, Florida; and
Amie Nicole Carter, age 32, of Casselberry, Florida.Heather Roberts and Michael Walker are scheduled to be sentence on November 2, 2018 at 2:00 and 3:00 p.m., respectively. Sentencing has not yet been scheduled for Pittman and Rhoda.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
United States Attorney Robert K. Hur commended the U.S. Secret Service, Maryland National Capital Park Police - Montgomery and Prince George’s County Divisions, and the Howard County, Baltimore County and Anne Arundel County Police Departments for their work in the Maryland portion of this multi-state, multi-agency investigation. Mr. Hur thanked Assistant U.S. Attorneys Tamera L. Fine and Ayn B. Ducao, who are prosecuting the case.
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Four Plead Guilty in Multi-Million Dollar TRICARE SchemeRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, and Artie DeLaneuville, Acting Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), announced today the guilty pleas of Brad Duke, 43, of Little Rock, Charlotte Leija, 38, of Conway, Michael "Chance" Beeman, 48, of Maumelle, and Michael Sean Brady, 50, of Little Rock, to conspiring to violate the Anti-Kickback Statute. Duke pleaded guilty on October 3, while Leija, Beeman, and Brady all pleaded guilty on Wednesday before Chief United States District Judge Brian S. Miller, who will sentence the group at a later date.
As has been widely reported, TRICARE (our military’s health insurer) paid nearly $2 billion for compound prescription drugs in 2015—an eighteen-fold increase over previous years—prompting investigations around the country.
Duke, who worked as a medical sales representative in Little Rock, promoted prescription pain cream, scar cream, and supplements for a Mississippi-based compounding pharmacy, earning a share of whatever the pharmacy was paid on prescriptions issued by affiliated doctors. After learning TRICARE would pay tens of thousands of dollars per month per patient for compounded drugs, Duke focused upon generating prescriptions for those with TRICARE insurance.
Duke paid patient recruiters, including Beeman and Brady, to find TRICARE beneficiaries to receive prescriptions, telling them a doctor would sign the prescriptions without consulting patients. Patient recruiters forwarded beneficiary insurance information to Duke, which he then routed to local medical assistant Charlotte Leija, whom Duke paid to file the prescriptions under the name of the doctor for whom she worked.
In less than one year, the scheme generated over $10 million in compound prescriptions for over 100 TRICARE beneficiaries hailing from as far west as Chula Vista, Calif., to as far east as Foxborough, Mass. Duke paid patient recruiters more than $2 million to find the beneficiaries and over $250,000 to Leija to issue the prescriptions.
“Duke’s scheme resulted in millions of dollars of fraud and waste to our taxpaying citizens,” U.S. Attorney Hiland said. “This office is determined to root out the criminal fraud in our nation’s health care programs.”
Under the terms of their plea agreements, Duke, Leija, Beeman, and Brady each face up to five years in federal prison and together will forfeit nearly $1.9 million in illicit proceeds. More charges involving additional defendants are expected.
“These pleas are a reflection of Duke’s greed to promote prescriptions for compounded drugs in a kickback scheme for his own profit,” stated SAC Upchurch. “The United States Attorney’s Office, HHS-OIG, and the FBI will aggressively pursue providers who violate the law for personal gain.”
“Any time fraudulent claims are submitted for payment, the nation’s health insurance programs suffer,” said Acting SAC DeLaneuville. “Along with our law enforcement partners, this office will continue the important mission of protecting the financial integrity of our nation’s health care systems, and bringing to justice those individuals who deliberately manipulate those systems to obtain federal dollars to which they are not entitled, especially funds designated for providing vital health care services to our military veterans.”
If you or someone you know was approached about getting compounded prescription drugs, please contact [email protected].
The crime of conspiring to violate the Anti-Kickback Statute, 42 U.S.C. § 1320a- 7b(b), is punishable by up to five years in prison, a fine of not more than $250,000, and up to three years of supervised release. This case was investigated by the FBI and HHS- OIG, and prosecuted by Assistant United States Attorney Alexander D. Morgan.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter: @EDARNEWS
Former Webb County Commissioner ConvictedRead the Press Release
HOUSTON - A former Webb County Commissioner and a former city councilman have entered guilty pleas to conspiracy to commit federal program bribery, First Assistant U.S. Attorney Tim Braley announced today along with FBI Special Agent in Charge Christopher Combs.
Former Webb County Commissioner Jaime Alberto Canales, 51, and John “Johnny” Amaya, 70, owner of JAUC Services Inc. and a former Laredo City Councilman, pleaded guilty in Houston federal court today. Both reside in Laredo.
Canales admitted at least in or about January 2015 through in or about January 2017, an individual gave and agreed to give things of value in order to influence and reward him for his official acts as a Webb County commissioner and Laredo Metropolitan Planning Organization (MPO) representative. Canales accepted these things of value, intending to be influenced and rewarded for his official assistance. These things of value, which included checks disguised as campaign contributions and personal loans, use of a co-conspirator Padre Island condominium and meals and entertainment, were provided in connection with business and transactions of Webb County and the Laredo MPO well in excess of $5,000.
Amaya owned and controlled JAUC Service Inc. A co-conspirator employed Amaya as a consultant for Corporation A, as listed in the indictment, from in or about January 2011 through in or about April 2017. In this role, Amaya met and spoke with various Webb County and City of Laredo officials to direct them to take actions that benefitted the co-conspirator and corporation. Amaya maintained close contact with officials who could help the conspirator and corporation by setting up meetings and passing messages to and from the conspirator. Amaya admitted he acted as a middleman between the conspirator and public officials. At the conspirator direction, Amaya provided cash payments, personal checks disguised as campaign contributions and meals and entertainment to these officials, including Canales.
All of the payments were reimbursed with the corporation’s corporate funds, either directly or indirectly. At the conspirator direction, Amaya also supported specific candidates in the November 2016 election cycle by providing rental cars, drivers and gas cards for those rental vehicles to transport voters to the polls, all for which the corporation paid.
U.S. District Judge Sim Lake accepted the pleas today and has set sentencing for Feb. 14, 2019. At that time, Canales and Amaya face up to five years in federal prison. They were permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorneys Carolyn Ferko and John Pearson are prosecuting the case.
Former FBI Agent Sentenced for Leaking Classified InformationRead the Press Release
Terry J. Albury, 39, a former Special Agent of the FBI, was sentenced today to 48 months in the District of Minnesota in connection with his unauthorized disclosure and retention of classified national defense information.
The announcement was made by Attorney General Jeff Sessions, FBI Director Chris Wray, Assistant Director in Charge of the Washington Field Office Nancy McNamara, and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, after sentencing by U.S. District Judge Wilhelmina M. Wright.
"We are conducting perhaps the most aggressive campaign against leaks in Department history," said Attorney General Sessions. "Crimes like the one committed by the defendant in this case will not be tolerated—they will be prosecuted to the fullest extent of the law and punished. I want to thank Assistant Attorney General Demers, U.S. Attorney Terwilliger, and their attorneys for their hard work in prosecuting this important case. Today's sentence should be a warning to every would-be leaker in the federal government that if they disclose classified information, they will pay a high price."
"Every FBI agent has a solemn obligation to protect classified information from unauthorized disclosure to safeguard our national security. Terry Albury betrayed that responsibility, and he betrayed the trust bestowed on him by the American people," said FBI Director Christopher Wray. "His sentencing today demonstrates those who violate the law by disclosing classified information will be held responsible for their reckless and illegal actions."
“Leaking classified national defense information to the media is a crime that damages our national security,” said U.S. Attorney Terwilliger. “Albury transmitted classified information not just to one hostile foreign power, but to every hostile foreign power with the ability to pick up a newspaper or access the Internet. To be clear, this was not whistleblower activity. Albury made no attempts to engage in any of the legitimate whistleblower processes available to him, and instead chose to betray his oath and his colleagues by leaking classified national defense information to the press. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
"Terry Albury willingly disclosed classified information that he had taken an oath to protect, for his own purposes," said Assistant Director in Charge Nancy McNamara. "He violated the trust that was placed in him by willfully providing information that could endanger national security to individuals not authorized to receive it and lied to the FBI about his actions. Albury violated the trust that was placed in him and his attempt to leverage national security information for his own reasons brought him to this sentence today. The FBI will continue to take all necessary and appropriate steps to thoroughly investigate individuals, no matter their position, who undermine the integrity of our justice system by lying to federal investigators."
According to court documents, Albury worked as an FBI Special Agent in the Minneapolis field office at the time of the disclosures, held a Top Secret//Sensitive Compartmented Information security clearance, and his daily duties provided him access to sensitive and classified FBI and other U.S. government information.
According to court documents, beginning in 2016 and continuing through August 2017, Albury knowingly and willfully disclosed national defense information, classified at the Secret level, to a reporter. Albury employed methods to avoid detection, including printing documents that he created by cutting and pasting portions of an original document into a new document so as to avoid leaving a record of having printed the original, classified document. Albury also accessed documents on a classified computer and took pictures of the computer screen in order to photograph certain classified documents. Those additional classified documents were recovered on an electronic storage device found during a search of his home.
Assistant U.S. Attorney Danya E. Atiyeh of the Eastern District of Virginia, and Trial Attorneys Patrick T. Murphy and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.Former Bridgeport Resident Admits Participation in Medicaid Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIET JACOB, 49, of Wake Forest, North Carolina, formerly of Bridgeport, waived her right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of health care fraud stemming from a Medicaid fraud scheme.
According to court documents and statements made in court, beginning in January 2012, Jacob and another individual operated two businesses, Transitional Development And Training (TDAT), and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport. The businesses were to provide social and psychotherapy services to the Bridgeport area. Jacob and the other individual used ITAP and TDAT to bill Medicaid for psychotherapy services that were never provided. As part of their scheme, Jacob and the other individual used the Medicaid provider numbers of two licensed health care providers who had neither rendered nor supervised any of the psychotherapy services that Jacob and the other individual billed to Medicaid.
Through this scheme, Jacob and the other individual defrauded Medicaid of approximately $2.5 million.
As part of her guilty plea, Jacob also admitted that, in a separate scheme in 2010 and 2011, she conspired with Ronnette Brown and Beverly Coker to defraud Medicaid of more than $214,000 by fraudulently billing for psychotherapy services that were not provided.
When she is sentenced, Jacob faces a maximum term of imprisonment of 10 years. She also has agreed to a restitution order of $2,711,173. A sentencing date has not been scheduled.
Jacob is released on a $25,000 bond pending sentencing.
On May 26, 2017, a jury found Ronnette Brown guilty of 23 counts of health care fraud and one count of conspiracy to commit health care fraud, stemming from these schemes. On April 19, 2018, Judge Bolden sentenced Brown to 48 months of imprisonment and ordered her to pay restitution in the amount of $2,033,962.
Beverly Coker pleaded guilty to one count of health care fraud and, on May 8, 2018, was sentenced to five years of probation and restitution of $214,555.
Three other individuals have been charged and convicted of health care fraud offenses stemming from this ongoing investigation.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case is being jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Foreign National Sentenced to 15 Years on Drug Trafficking and Firearm ChargesRead the Press Release
PROVIDENCE –A Dominican national in the United States illegally, who admitted to using several alias and who was previously convicted and incarcerated in federal and state prisons on drug trafficking charges, was sentenced today to 15 years in federal prison for trafficking fentanyl, heroin, cocaine and methamphetamine, and being an alien and a felon in possession of a firearm.
Marcio Alexandro Martinez-Lara, 45, a native of Bani, Dominican Republic, has been detained in federal custody since July 19, 2017, when members of the Rhode Island DEA Drug Task Force concluded an investigation into his drug trafficking activities, which included seizures of significant quantities of fentanyl, heroin, cocaine, and methamphetamine.
Between October 27, 2016 and June 14, 2017, numerous controlled purchases totaling more than 80 grams of fentanyl and nearly 21 grams of fentanyl-laced cocaine were made from Martinez-Lara.
On July 19, 2017, law enforcement simultaneously executed court-authorized search warrants at Martinez-Lara’s Providence residence, his Cranston business, a drug stash house under his control in Cranston, and two vehicles.
Martinez-Lara was arrested as he left the Cranston stash house prior to the execution of the search warrant. He was found to be carrying 100 grams of fentanyl stashed inside his clothing. From inside the stash house, law enforcement seized 1,281grams of fentanyl, 1,148 grams of fentanyl-laced heroin, 106 grams of methamphetamine, and nearly 29 grams of cocaine. Also seized was a loaded semi-automatic 40-caliber firearm.
Martinez-Lara’s sentence of 15 years (180 months) imprisonment followed by 5 years supervised release, imposed by United States District Court Chief Judge William E. Smith, is announced by United States Attorney Stephen G. Dambruch and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 235 months to 293 months. As stipulated in a plea agreement filed with the Court, the government and the defense recommended the Court impose a sentence of 15 years incarceration.
According to court records, in October 1997, Martinez-Lara was convicted in federal court on cocaine trafficking charges and subsequently sentenced to 121 months in federal prison; in April 1998 Martinez-Lara was convicted in Rhode Island state court on delivery of schedule I/II controlled substances and conspiracy charges and sentenced to 10 years in state prison – 18 months to serve with 102 months suspended with probation; and on June 9, 2016, Martinez-Lara was arrested by Providence Police and released on bail on a charge of delivery of heroin. He was awaiting trial at the time of his most recent arrest by members of the DEA Drug Task Force.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, Rhode Island State Police, and Providence, Cranston, East Providence, Central Falls, Newport, North Kingstown, Pawtucket, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments.
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Florida Man Convicted of Armed Robbery of 7–11 StoreRead the Press Release
Tampa, Florida – A federal jury has found Joseph Deleon (29, Mount Dora) guilty of robbery and brandishing a firearm during a crime of violence. Deleon faces a maximum penalty of life in federal prison. His sentencing hearing has not yet been scheduled. He was indicted on July 11, 2018.
According to testimony and evidence presented at trial, shortly after midnight on March 15, 2018, in St. Petersburg, Deleon pointed a gun at a cashier at a 7–11 store and demanded the contents from his register. After obtaining approximately $100 and several packages of stamps, Deleon fled the scene.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant U.S. Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Jury Convicts Chilton County Man for Transporting Two Minors and Producing, Transporting, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal jury today convicted a Chilton County man on multiple counts of transporting two minor girls for illegal sexual activity and producing, transporting, and possessing child pornography, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
The jury returned a guilty verdict against BRUCE NICHOLSON, 56, after three days of testimony before U.S. District Court Judge Madeline Haikala. A sentencing date has not been set.
BRUCE NICHOLSON was convicted of multiple charges for production, transportation, and possession of child pornography and transporting two minors with the intent to engage in unlawful sexual activity with them. The evidence at trial demonstrated that, for years, NICHOLSON had sexually abused his minor daughter and minor stepdaughter. In mid-2012, after impregnating his stepdaughter with twins, NICHOLSON fled the state of Alabama with both girls. He was apprehended in another state more than a month later.
NICHOLSON was indicted in 2016 on Mann Act and child pornography charges. Forensic examination of NICHOLSON’s devices revealed images of child pornography, including one image he had directed his stepdaughter to produce and send him.
“This man stole the innocence of two girls and a large part of their childhoods, and he had every intention of stealing the rest,” Town said. “This guilty verdict cannot take away the pain those girls have experienced, but it sends a message loud and clear to this defendant and every other sexual abuser. It also is another example of the courage that survivors of this abuse continue to show so that not another second of their lives is taken by these disgusting criminals.”
“Taking away the innocence of a child is deplorable and inexcusable,” Sharp said. “I am proud of the work done by my agents and our partners to hold Nicholson accountable for these crimes.”
FBI investigated the case, which Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting.
Federal Jury Convicts Anchorage Man for Making Threatening Statements against Police Officer, OthersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that, yesterday, a federal jury in Anchorage convicted Tyler Chance Bateman, 28, of Anchorage, of eight counts of threatening interstate communications, for using the internet to threaten people in Anchorage. The victims included Bateman’s parents, two Anchorage Police Department officers and their families, and shoppers at a local business.
Within one hour of deliberation, the jury found Bateman guilty on all eight counts after a three-day trial before Chief U.S. District Judge Timothy M. Burgess. As a result of his convictions, Bateman faces a maximum penalty of up to five years in prison, and a fine of up to $250,000. The sentencing hearing has been set for Feb. 4, 2019.
According to evidence presented at trial, on Feb. 4, 2018, Bateman left his home in Anchorage on a one-way airline ticket to New York City. On Feb. 26, 2018, while in New York, Bateman created a text message thread to three people – two family members and a former employer, writing about why he left Alaska, his plans for making a living in New York, how those plans failed, and asked that someone buy him a ticket back to Alaska. After none of the text message recipients offered to buy him a ticket, Bateman responded with a series of messages threatening to shoot, poison, and cut the victims. One of the threats suggested that Bateman would commit a mass shooting.
Later that same day, Bateman threatened, via social media, to shoot and poison an Anchorage Police Officer and “several other people.” Bateman also sent threats to the Police Officer’s personal social media account. Further, Bateman sent threats to APD’s public Facebook page saying, among other things, “I am going to walk into a building with an AR15. I am going to hurt a lot of people.” Approximately seven minutes later, Bateman sent a message to the same APD account alleging that a specific address is where the Chief of Police lived.
On the morning of March 2, 2018, FBI Special Agents in New York City arrested Bateman on charges alleging that he made threatening statements against an Anchorage business and an Anchorage Police Officer. Shortly after his arrest, Bateman was transported back to Anchorage to face the charges.
“Even in the modern digital world, all Alaskans deserve to live their lives safely and securely, without being the victims of frightening — and seemingly anonymous — threats,” said U.S. Attorney Bryan Schroder. “What this case clearly illustrates is that those threats do not remain anonymous. Our law enforcement partners will find the perpetrators, and we will prosecute them.”
“It may have taken Mr. Bateman just a few minutes to write his threats, but now he’s facing a lifetime of consequences,” said Special Agent in Charge of the FBI’s Anchorage Field Office, Jeffery Peterson. “This case is a stark example of how the FBI and our partners respond to threats seriously. It also illustrates the anonymity of the keyboard will not prevent law enforcement from finding a perpetrator and bringing that person to justice.”
The Federal Bureau of Investigation (FBI), with assistance from the Anchorage Police Department (APD), conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Everett Man Pleads Guilty to Scheme to Defraud the Massachusetts Department of Unemployment AssistanceRead the Press Release
BOSTON – An Everett man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud the Massachusetts Department of Unemployment Assistance of more than $1.8 million.
Edison Delarosa, 53, pleaded guilty to one count of mail fraud and one count of wire fraud. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 24, 2019. In February 2017, Delarosa was arrested and charged and subsequently released on conditions.
From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting the Department of Unemployment Assistance’s (DUA) online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,813,170, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.
The charges of wire fraud and mail fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance cooperated with the investigation. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Pleads Guilty to Firearms Offenses Involving Purchase of Fully Automatic Assault RifleRead the Press Release
WASHINGTON – Clark Calloway, 39, of Washington, D.C., pled guilty today to possession of a firearm and to acquiring that firearm with the intent to commit assault, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Calloway pled guilty in the U.S. District Court for the District of Columbia to charges of interstate transportation of a firearm and ammunition, unlawful possession of a firearm and ammunition, and illegal possession of a machine gun. Each of the charges carries a statutory maximum of 10 years in prison and potential financial penalties. The Honorable Emmet G. Sullivan scheduled sentencing for Jan. 31, 2019.
During the plea colloquy, Calloway admitted that while a subject of an undercover investigation, he agreed to purchase a fully automatic AK-47 for $250. At the time, Calloway stated that he wanted to use the AK-47 on white people. He acknowledged making numerous statements expressing support against non-Muslims, police officers, and white people. He also acknowledged that he was a former Marine and a felon previously convicted of a felony.
Calloway was arrested by the FBI on May 4, 2017 when he took delivery of the AK-47. He has been in custody ever since.
This case was investigated by the FBI’s Washington Field Office. Assistance was provided by Paralegal Specialist Donna Galindo and former Paralegal Specialist Jorge Casillas of the U.S. Attorney’s Office for the District of Columbia. The case is being prosecuted by Assistant U.S. Attorneys Tejpal S. Chawla and Jeffrey Pearlman of the U.S. Attorney’s Office for the District of Columbia, with assistance from Trial Attorneys Justin Sher and Benita Corlett of the Justice Department’s National Security Division.
Department of Justice, EPA Reach Clean Air Act Settlement with Ohio Based Hazardous Waste CompanyRead the Press Release
The Department of Justice and U.S. Environmental Protection Agency (EPA) entered into a settlement with Heritage Thermal Services Inc., a subsidiary of Heritage Environmental Services LLC, resolving allegations that the company violated the Clean Air Act at its hazardous waste incinerator located in East Liverpool, Ohio.
Some of the alleged violations arose from an explosion at the incinerator on July 13, 2013, which ruptured incinerator ducting, releasing untreated flue gas, steam, and boiler ash beyond the incinerator’s fence line.
“The July 2013 explosion at the Heritage incinerator was a consequence of systemic failures to comply with the Clean Air Act, which protects communities and American workers from harmful releases of air pollutants,” said Acting Assistant Attorney General Jeffrey H. Wood. “This settlement requires the company to comply with Clean Air Act requirements and to perform important lead abatement work to make the East Liverpool community a safer and healthier place for workers and residents.”
“Today’s settlement will bring the Heritage plant into compliance with Clean Air Act regulations, preventing incidents like the July 2013 explosion,” said EPA Office of Enforcement and Compliance Assurance Associate Administrator Susan Bodine. “In addition, Heritage will perform a project that will help to protect people, especially children, from the harmful health effects of lead exposure.”
The U.S. alleges that Heritage violated the Clean Air Act on hundreds of days beginning in November 2010 and continuing thereafter, including violations emanating from the July 13, 2013 explosion. The violations include failures to comply with applicable emissions limits, operating parameter limits, and other Clean Air Act regulatory requirements.
The settlement, which was lodged in federal court for the Northern District of Ohio, requires that Heritage undertake extensive measures designed to bring its operations into compliance with the Clean Air Act. For instance, Heritage will not accept certain wastes that cause the kind of excess emissions that contributed to the July 2013 incident. Heritage is also required to investigate and implement corrective measures to reduce future emissions and will study whether other changes in its production process would also prevent Clean Air Act violations. Heritage is also required to pay a penalty of $288,000, and to spend at least $302,500 performing lead hazard abatement work at properties within 25 miles of East Liverpool, Ohio where the owners cannot afford to undertake lead abatement or replacement of lead water service lines.
The Department of Justice and EPA will hold a public meeting at the East Liverpool City Council Chambers on November 7, 2018, from 6:30 pm to 8:30 pm EDT to provide the public with information about the settlement and to answer questions by the public.
The proposed settlement is subject to a 30-day public comment period and final court approval. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.
Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.
Darien Man Pleads Guilty to Defrauding Service MemberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office, today announced that CHRISTOPHER TEIXEIRA, 34, of Darien, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of wire fraud relating to his theft of more than $57,000 from a former U.S. Navy service member.
According to court documents and statements made in court, the Defense Finance and Accounting Service (“DFAS”) is the agency of the U.S. Department of Defense that administers all payments to U.S. service members. DFAS operates the “MyPay” online portal, through which service members may provide and obtain information related to payments from DFAS.
A U.S. Navy service member (“the victim”) was scheduled to receive a medical severance payment from the Navy in January 2017. The victim provided his MyPay login and password information to Teixeira, who he trusted with certain financial responsibilities. On January 10, 2017, before the victim was to receive the medical severance payment, Teixeira changed the victim’s direct deposit information to a bank account controlled by Teixeira. DFAS then sent the victim’s $57,255.66 medical severance payment to Teixeira’s account. In order to avoid detection, Teixeira logged back into the victim’s MyPay account and reverted the direct deposit instructions back to the victim’s bank account.
Teixeira and the victim communicated after Teixeira stole the medical severance payment. Instead of admitting to the theft, Teixeira told the victim that he would assist in finding the money. When the victim indicated he was in need of funds, Teixeira transferred approximately $6,500 to the victim without telling him that Teixeira had stolen the money.
Teixeira used the stolen funds to pay his own personal expenses, and transferred $25,000 to another individual’s account.
The charge of wire fraud carries a maximum term of imprisonment of 20 years. Teixeira is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 20, 2019.
Teixeira is released pending sentencing.
This matter is being investigated by the Defense Criminal Investigative Service and the Defense Finance and Accounting Service. This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Crowley man pleads guilty to possessing child pornography on electronic devicesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Crowley man pleaded guilty Wednesday to possessing sexually explicit images of juveniles.
Kenneth Poullard, 43, of Crowley, Louisiana, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of possessing child pornography. According to the guilty plea, law enforcement agents learned that Poullard was downloading child pornography to electronic devices in his home. Agents searched his home on March 13, 2014 and found a desktop computer containing 50 images of child pornography. Poullard, who was present at the time of the search, admitted to intentionally searching for and downloading images and video of child pornography.
Poullard faces up to 20 years in prison, five years to life of supervised release, registration as a sex offender and a $250,000 fine. The court set the sentencing date for February 12 2019.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and Louisiana Attorney General’s Office High Technology Crime Unit conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
Covington Man Pleads Guilty for His Role in Operation of Covington Business Running Medical Reimbursement Account ProgramRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that BRENT ANTHONY SILVA, age 52, a resident of Covington, Louisiana, pleaded guilty as charged today before United States District Court Chief Judge Nannette Jolivette Brown to a one-count bill of information charging him with conspiracy to make false statements and representations in connection with a multiple employer welfare arrangement, in violation of 18 U.S.C. ' 371, for his role in the operation of the Total Financial Group (“TTFG”). “TTFG” is a Covington-area business that created and marketed what purported to be a Medical Reimbursement Program.
According to court documents, TTFG was a Louisiana business incorporated with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. TTFG and its owners, “De.J.” and “Do.J.,”created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-customers that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer-customers that the contributions would be stored in a unique account for each employee and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employees a fee of between $150 and $250 per month and the employer a fee of five (5) percent of each employee’s contribution amount. At its peak, in late 2016, over 350 employers and 4,400 employees (“participants”) nationwide were enrolled in TTFG’s Classic 105 program.
According to the Bill of Information, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan, and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. In truth, the only money actually paid to TTFG were the fees.
SILVA was hired by the owners of TTFG in about 2013. SILVA performed numerous functions at TTFG, including preparing the federal and state income tax returns for TTFG and its owners, as well as serving as the primary point of contact for all accounting-related issues that arose. In his role with TTFG, SILVA knowingly caused false statements to be made to employer-clients and employee-participants about the financial condition, solvency, and benefits provided by Classic 105 during the marketing and sale of the program, including statements on December 17, 2014 and January 15, 2015.
SILVA faces a maximum term of five (5) years imprisonment, a fine of up to $250,000.00, three (3) years of supervised release after any term or imprisonment, and a mandatory $100 special assessment. Sentencing before Chief Judge Brown has been scheduled for January 24, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service – Criminal Investigations; Federal Bureau of Investigation; and United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Convicted Felon Sentenced to More Than 5 Years for Illegally Possessing a Loaded Handgun in Western SuburbRead the Press Release
CHICAGO — A convicted felon has been sentenced to more than five years in federal prison for illegally possessing a loaded semi-automatic handgun in a west suburb of Chicago.
MARK HILL possessed the gun on June 17, 2016, in Broadview. Hill had previously been convicted of a felony and was not legally allowed to possess a firearm. After his arrest, Hill attempted to obstruct justice by urging his girlfriend to lie on his behalf.
Hill, 41, of Broadview and Chicago, pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon. U.S. District Judge Gary Feinerman on Tuesday sentenced Hill to five years and ten months in federal prison.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Valuable assistance was provided by the Broadview Police Department, Bellwood Police Department, and Hillside Police Department.
“Possessing a firearm as a convicted felon is a serious offense and creates wholly unnecessary risks to public safety,” Assistant U.S. Attorney Erin E. Kelly argued in the government’s sentencing memorandum.
Evidence in the case revealed that Hill stored the loaded handgun and additional ammunition under a mattress in the bedroom of his girlfriend’s apartment. After his arrest, Hill telephoned his girlfriend from jail on numerous occasions. Hill urged his girlfriend to lie under oath concerning the location of evidence that police found in the apartment. Hill also told his girlfriend that he would coach her testimony, requesting that she “come see me so you tell ‘em everything I tell you to say.”
Columbia Man Pleads Guilty to Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to illegally possessing firearms and ammunition that had been stolen in a recent burglary.
Deangelo Wayne Joe, Jr., 24, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of firearms and ammunition.
Columbia police officers responded to a report of shots fired in the parking lot of The Links apartment complex in the 1500 block of Clark Lane at approximately 11:42 p.m. on July 11, 2018. When they arrived, the officers located Joe and told him to put his hands up. Joe looked at the officers and took off running into an apartment in the complex.
Police officers surrounded the building. For approximately 30 minutes, officers gave commands over the PA for the residents to exit the apartment into which Joe had run. When Joe exited the apartment he was arrested on outstanding warrants. Officers who searched him found .22-caliber ammunition, including a fired shell casing, in his pants pocket.
Officers searched the apartment and found a Browning .22-caliber handgun and an FMK .22-caliber rifle. In a bedroom closet they also found a range bag, which contained multiple rounds of .22-caliber ammunition. Both firearms and the range bag full of ammunition were reported stolen in a burglary that occurred a few days earlier.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Joe has two prior felony convictions for burglary.
Under federal statutes, Joe is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron Maness. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Clinton Man Pleads Guilty Under Project EJECT to CarjackingRead the Press Release
Jackson, Miss. – Cedric Winfield, 23, of Clinton, pled guilty yesterday before Senior U.S. District Judge William H. Barbour, Jr. to carjacking, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
A federal grand jury indicted Alexus Guster, Darrell Moore, and Cedric Winfield for carjacking a victim at gunpoint on November 7, 2017. Winfield pleaded guilty yesterday to participating in the carjacking.
Winfield faces a maximum penalty of fifteen years in prison and a $250,000 fine for his role in the carjacking. Guster pled guilty to carjacking in January and is set to be sentenced on November 29, 2018. Moore’s trial is scheduled for November 14, 2018, at 9:00 a.m. before Judge Barbour.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorneys Mary Helen Wall and Kimberly Taft Purdie.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
California Resident Pleads Guilty in Scheme to Defraud the United States of over $9 MillionRead the Press Release
Jacqueline Ramos, aka Jackie Acosta, of Salinas, California, pleaded guilty yesterday to one count of conspiring to submit false claims for income tax refunds and two counts of bank fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Alex G. Tse of the Northern District of California.
According to documents and information provided to the court, Ramos conspired with others to defraud the Internal Revenue Service (IRS) by filing false tax returns to obtain fraudulent refund checks, and then depositing the checks into bank accounts under their control. The false returns included fake income, bogus dependents, and sham education expenses. By filing these fraudulent returns, Ramos and her co-conspirators are alleged to have stolen more than $9 million in tax refunds. Two of those co-conspirators, Ana Bajo, aka Ana Covarrubias, and Norma Morfin, aka Norma Mandujano, pleaded guilty earlier this year to related tax charges.
U.S. District Court Judge Lucy H. Koh scheduled sentencing for March 20, 2019. Ramos faces a maximum sentence of ten years in prison for the conspiracy count and thirty years for each of the bank fraud counts, in addition to a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Tse commended the IRS special agents who investigated this case, as well as the Department of Justice attorneys who are handling it, Assistant United States Attorney Michael G. Pitman and Trial Attorney Christopher Magnani.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Buffalo Man Sentenced to 17 Years in Federal Prison on Gun and Drug 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 Jay Neal, 40, of Buffalo, NY, who was convicted of eight counts including conspiracy to possess with intent to distribute 100 grams or more heroin, possession with intent to distribute, and distribution of, heroin, maintaining a drug involved premises, possession of a firearm in furtherance of drug trafficking activity, being a felon in possession of a firearm, and possession of a defaced firearm, was sentenced to serve 210 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 on October 20, 2015, Neal sold a quantity of heroin to an individual working with the Drug Enforcement Administration. The following day, on October 21, 2015, Neal once again agreed to sell a quantity of heroin. Neal drove to a residence at 87 Mariner Street in Buffalo. About an hour later, Neal and co-defendant Quashawn Lawrence were arrested by police. At the time of his arrest, Neal was armed with a 9mm handgun and had $10,000 in cash. A search warrant executed inside 87 Mariner recovered two guns, ammunition, 10 grams of heroin inside a dresser drawer, and multiple scales.
In 1997, Neal was convicted in state court of Attempted Murder and Robbery in the 1st Degree. As a result of those convictions, Neal was legally prohibited from possessing a firearm.
Today’s 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, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
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Broussard woman sentenced to 2 years for stealing nearly $275,000 from bank customer accountsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Broussard woman was sentenced Wednesday to 24 months in prison for embezzling almost $275,000 from bank customers.
Derlena Carrier, 59, of Broussard, Louisiana, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of theft, embezzlement or misapplication by a bank officer or employee. She was also sentenced to five years of supervised released and was ordered to pay $274,980. According to the May 11, 2018 guilty plea, Carrier worked as an account clearing house (ACH) specialist for a bank where she had access to bank customer accounts and handled ACH wire transfers. From March of 2010 to December of 2016, Carrier initiated 74 fraudulent wire transfers from customers’ accounts to personal accounts. Carrier embezzled a total of $274,980 during the course of the scheme.
The U.S. Secret Service and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Broken Arrow Man Sentenced to 10 Years for Enticing a MinorRead the Press Release
United States Attorney Trent Shores announced today that Skylor Ramazani Norman, 24, of Broken Arrow, was sentenced to serve more than 10 years in federal prison after being found guilty of Enticement of a Minor.
United States District Judge Claire V. Eagan ordered Norman to pay restitution in the amount of $3,925 and a special monetary assessment totaling $100. After release from prison, Norman must serve seven years of supervised release.
On February 19, 2018, Norman provided the 12-year-old victim with his telephone number while she was at a local restaurant. She did not have a cell phone, so she downloaded an app on her iPad and later began communicating with the perpetrator. Norman groomed the victim, asking to be in a relationship with her and referring to her as his girlfriend. After multiple text exchanges, they agreed to meet. The victim sneaked out of her mother’s house and spent two nights at Norman’s residence. The mother, fearing her daughter had been kidnapped, contacted police.
“Children’s frequent use of technology has made them especially vulnerable to perpetrators who gain their trust and exploit them,” stated U.S. Attorney Trent Shores. “This prosecution serves as a stern warning to those predators who would initiate contact and use texting apps and social networking to prey upon children in northeastern Oklahoma. Your criminal actions will be exposed. Law enforcement agents will find you, and federal prosecutors will give voice to the child victims who suffered at your hand.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Investigating officials were the Federal Bureau of Investigation and the Broken Arrow Police Department. This case was prosecuted by Assistant U.S. Attorneys Jeffrey A. Gallant and Victor A.S. Régal.
Bristol Man Sentenced for Receipt of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Cody Clark, 27, of Bristol, Vermont, was sentenced on October 18, 2018, in United States District Court in Burlington, Vermont, to serve 120 months in prison after his guilty plea to one count of receipt of child pornography. U.S. District Judge Christina Reiss also ordered Clark to serve a thirty (30) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, in the summer of 2017, Google transmitted a “Cybertip” to the National Center for Missing and Exploited Children (NCMEC) that a user, later identified as Clark, had uploaded images of child pornography to Clark’s Google account. NCMEC forwarded the tip to the Vermont Internet Crimes Against Children Task Force (the ICAC). The ICAC investigated the tip and obtained a warrant to search Clark’s residence in Bristol, Vermont. On September 2, 2017, law enforcement executed the search warrant and seized several computers and other devices from Clark. Officers also discovered a minor child in his bed. During a statement made to law enforcement, Clark admitted that he produced and possessed images of child pornography, that he knew he had a problem and needed help, and that he had inappropriately touched young boys in his care, though he claimed that such touches were non-sexual. A forensic examination of his devices confirmed that Clark had produced images of child pornography, and possessed images that he had downloaded from the Internet.
United States Attorney Christina E. Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations in the investigation and prosecution of Clark. She added:
“Let this case serve as a reminder that those who sexually exploit children will be targets for federal prosecution, and a top priority for federal investigators. Society should be measured by how it protects its most innocent and vulnerable members, and the Vermont law enforcement community will bear this in mind as we relentlessly pursue those who harm children and advocate for serious sentences. As Judge Reiss said in imposing sentence, this defendant’s conduct was ‘unforgiveable and a violation of trust.’”
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Clark. Clark was represented by Assistant Federal Public Defender Elizabeth Quinn.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Belton Man Sentenced to 17 Years for Meth Conspiracy in Northern MissouriRead the Press Release
KANSAS CITY, Mo. – A Belton, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in north central Missouri and for illegally possessing firearms.
Robert Ryan Hicks, 36, was sentenced by U.S. District Judge Gary A. Fenner to 17 years and seven months in federal prison without parole.
On Dec. 4, 2017, Hicks pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possessing firearms in relation to drug trafficking. Hicks admitted that he was responsible for the distribution of at least 1.5 kilograms of methamphetamine during the conspiracy.
NITRO (the Northwest Inter-agency Team Response Operation) initiated an investigation in Grundy County, Mo., in December 2014 that focused on methamphetamine distribution in the north central region of Missouri, with sources of supply in the Kansas City, Mo., metropolitan area.
Hicks was stopped by Grandview, Mo., police officers on two occasions in 2015. On Jan. 20, 2015, he was in possession of 39.46 grams of pure methamphetamine, as well as pills and marijuana. On Feb. 3, 2015, he was in possession of a Hi-Point 9mm pistol and a Cobra .380-caliber pistol. On May 22, 2015, Hicks supplied a co-defendant with 27.6 grams of pure methamphetamine to sell to an undercover law enforcement officer.
Hicks is among six defendants who have pleaded guilty and been sentenced in this case. Ryan Peter Trombley, 33, of Trenton, Mo., was sentenced to 11 years and six months in federal prison without parole. Alicia Marie Grimes,50, of Trenton, was sentenced to a year and a day in federal prison without parole. Christopher John Vaccaro, 42, of Kansas City, Mo., was sentenced to 17 years in federal prison without parole. Crystal Renee Breshears, 27, of Belton, was sentenced to five years and 10 months in federal prison without parole. Allen Ray Watson, 45, of Blue Springs, Mo., was sentenced to five years in federal prison without parole.
Co-defendant Faron Wayne Lawrence, 51, of Trenton, also has pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and NITRO (the Northwest Missouri Interagency Team Response Operation).
Alorton Man Pleads Guilty, Faces Possible Life Sentence for Shooting A Federal WitnessRead the Press Release
Tereze L. Fenderson, age 39, pleaded guilty in federal court to charges that he attempted to retaliate against a witness or informant, unlawfully possessed a firearm as a convicted felon, and discharged a firearm in connection with a crime of violence, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
In early 2015, agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives executed a warrant searching for guns and drugs at Fenderson’s Alorton, Illinois home. Fenderson immediately ran into the house and locked the door. The agents ultimately made forced entry into the home and discovered more than four pounds of marijuana, along with a 9 mm semi-automatic pistol. Another 68 pounds of Fenderson’s marijuana was separately recovered from his girlfriend’s house. Officers later seized approximately $13,000 in cash from Fenderson upon his arrest on a federal indictment for unlawful possession of a firearm.
Evidence presented at Fenderson’s plea hearing established that, while out on bond pending trial, Fenderson became convinced that a former drug associate had cooperated against him in the federal investigation. On October 22, 2017, at nearly 1:00 AM, Fenderson located and confronted his former associate on the sidewalk outside a bar on Piggott Avenue, in East St. Louis, Illinois. When a mutual friend interceded and tried to deescalate the situation, the former associate walked around the building and out of sight. Fenderson got back into his car with two other men and drove slowly around the block looking for his former associate. Minutes later, Fenderson found the man hiding near the intersection of 15th and Piggott Streets.
Fenderson stopped the car in the middle of 15th Street, where he and another man in the car opened fire, shooting the victim in the hip and lower leg. The victim sought cover behind a nearby parked car and returned fire from his own handgun. After Fenderson sped away, the victim was rushed to a nearby hospital. The gunshot to his lower leg broke both bones and has required multiple surgeries to repair.
Because of the shooting, Fenderson’s bond was revoked and he was re-arrested on November 2, 2017. He remains in custody. He was later charged in a superseding indictment that added additional charges for witness retaliation and using a firearm during a crime of violence.
Causing bodily injury to a prospective witness is a federal crime that carries up to 20 years imprisonment. Fenderson is also facing up to 10 years imprisonment for unlawful possession of a firearm by a felon, and a mandatory minimum of not less than 10 years and as much as life imprisonment for discharging a firearm in connection with a crime of violence.
Fenderson previously served a six-year prison term in the Illinois Department of Corrections on a 2005 conviction out of St. Clair County for involuntary manslaughter.
Sentencing is scheduled for January 25, 2019, in East St. Louis, Illinois.
United States Attorney Steven D. Weinhoeft said, "This case should serve as a warning that federal law enforcement will relentlessly pursue those who embrace the ‘code of the street’ by threatening or retaliating against witnesses. This so-called ‘street code’ is contrary to the most basic tenets of society and is calculated to undermine the rule of law so that violent actors can prey upon the vulnerable in darkness without the fear of getting caught. The public can be assured that law enforcement will do everything in its power to protect witnesses while forcefully prosecuting those who would do harm."
Earlier today, the Attorney General announced that in fiscal year 2018, the Justice Department charged more defendants with violent crimes than in any other year since the Department began tracking the statistic more than 25 years ago – surpassing by nearly 15% the previous record set just last year.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by United States Attorney Steven D. Weinhoeft and Assistant U.S. Attorney James G. Piper, Jr.
Allen Charged in Seven-Count Federal Indictment with Threat to Use A Biological Toxin as A WeaponRead the Press Release
SALT LAKE CITY – 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.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging ELIMAS MENDEZ-ROBLERO, age 33, of Mexico, with illegal reentry of a deported alien.
If convicted of illegal reentry subsequent to an aggravated felony conviction (conspiracy to commit possession with intent to sell or deliver a Schedule II controlled substance), MENDEZ-ROBLERO, previously deported and found in Wake County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by ICE’s Enforcement and Removal Operations.
AUSA Heather L. Carlton Named Federal Prosecutor of the Year by Virginia Gang Investigators AssociationRead the Press Release
VIRGINA BEACH, VIRGINIA –Assistant United States Attorney Heather L. Carlton was honored Tuesday at the Virginia Gang Investigators Association’s 20th Annual Gang Conference in being named the Federal Prosecutor of the Year.
AUSA Carlton was presented the award during a ceremony in Virginia Beach featuring law-enforcement leaders from across Virginia, including more than 500 gang investigators.
For more than 25 years, the Virginia Gang Investigators Association has been the premier law-enforcement association for training and up-to-date information on the latest trends and prevention techniques.
“I am thrilled that the VGIA has honored Heather Carlton with this award,” U.S. Attorney Cullen stated. “Thanks in large part to her initiative and leadership—as well as the hard work of our federal, state, and local law-enforcement partners—we are making significant strides towards reducing violence in Danville. Nearly 20 alleged gang members are no longer operating on the streets of this community, and Heather and her task force partners are continuing their efforts to achieve a meaningful and lasting reduction in violent crime there.”
The Virginia Gang Association recognized AUSA Carlton for her work on the Rollin 60s and Milla Bloods racketeering indictments out of Danville, Virginia. The two indictments, returned in June 2018, charged 18 alleged gang members and associates from the City of Danville with crimes ranging from murder to drug distribution to obstruction of justice. At the time, U.S. Attorney Cullen called it “the largest and most significant federal prosecution of organized gang activity in the Western District of Virginia in at least a decade.”
AUSA Carlton also serves as the Deputy Criminal Chief for the Western District of Virginia and is responsible for the district’s Project Safe Neighborhoods [PSN] and violent-crime reduction strategies. Project Safe Neighborhoods fosters coordination and cooperation between federal, state, and local law-enforcement agencies with the goal of reducing violent crime.
“Over the past year, Heather has been instrumental in establishing critical PSN infrastructure and directing PSN strategy in Danville and Roanoke,” U.S. Attorney Cullen stated. “In addition, she recently helped secure a significant PSN grant for the Western District, which will be used to promote additional gang and violent-crime reduction strategies in other parts of our large district.”
17 October 2018
Woman Sentenced for Embezzling Money from a Labor UnionRead the Press Release
She stole over 140,000 dollars between 2010 and 2014 from Charleston Building and Construction Trades Council
CHARLESTON, W.Va. – A South Charleston woman was sentenced to a year and a day in prison, announced United States Attorney Mike Stuart. Joan Matthews, 70, pled guilty on June 12, 2018 to the felony offense of embezzlement and theft from a labor union. The Court also ordered her to pay $141,325.78 in restitution to the Charleston Building and Construction Trades Council (CBCTC). Stuart commended the investigative efforts of the United States Department of Labor, Office of Labor-Management Standards.
“When you are 70 years old, a sentence of a year and a day is a lifetime,” said United States Attorney Mike Stuart. “Matthews used her position as a bookkeeper for the CBCTC to steal money over several years. She earned her sentence.”
Matthews previously admitted that she was employed as a bookkeeper by the CBCTC. Matthews told the Court that she began embezzling CBCTC union monies in 2010. To accomplish the theft, she would prepare and cash unauthorized union checks, use union funds to pay credit card bills, and make personal charges to the CBCTC credit cards. Her embezzlement continued until September 2014 when her crimes were discovered by other union employees. Matthews is no longer employed by the CBCTC. The CBCTC is chartered by the Building and Construction Trades Department of the AFL-CIO and has jurisdiction over local construction unions, and unions in the building and trades industries throughout West Virginia.
Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr. presided over the hearing.
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Wilmington Man Sentenced to More Than 10 Years for Heroin DistributionRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge Terrence W. Boyle sentenced DAVID ANDREW KIRTON, JR. 25, of Wilmington, North Carolina to 100 months of imprisonment followed by 3 years of supervised release and a consecutive sentence of 24 months for a supervised release violation. The total active sentence imposed was 124 months, followed by 3 years of supervised release.
On May 1, 2018, KIRTON entered a plea of guilty to distribution and possession with intent to distribute a quantity of heroin. KIRTON admitted a supervised release violation for a prior federal conviction for Conspiracy to possess with the intent to distribute and distribute more than five grams of cocaine base and a quantity of heroin at the time of his sentencing.
A joint investigation between the Wilmington Police Department Gang Unit and the Federal Bureau of Investigation’s Safe Streets Task Force revealed that between October 2016 and April 2017, KIRTON, and others were responsible for the distribution of significant amounts of heroin in the Wilmington area. During this period of time, several undercover purchases of heroin were made from KIRTON at the direction of law enforcement. These occurred while KIRTON was on federal supervised release for a previous conviction for conspiracy to possess with the intent to distribute and distribute cocaine base (crack) and heroin.
This case is part of the Take Back North Carolina Initiative of United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This investigation was conducted by the Wilmington Police Department Gang Unit and the Federal Bureau of Investigation’s Safe Streets Task Force, and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy M. Severo handled the prosecution of this case for the government.
Wilmington Man Sentenced to 10 Years for Cocaine DistributionRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge Terrence W. Boyle sentenced WILLIAM POLLOCK 31, of Wilmington, North Carolina to 120 months of imprisonment followed by 3 years of supervised release.
On June 26, 2018, POLLOCK entered a plea of guilty to Possession with Intent to Distribute 28 Grams or More of Cocaine Base (Crack) and 500 Grams or More of Cocaine.
On January 18, 2018, the New Hanover County Sheriff’s Office (NHCSO) Narcotics Detectives conducted a traffic stop of a car leaving a drug stash house in which Pollock was a passenger. Law enforcement discovered items in the car that led to a search warrant of POLLOCK’S residence. NHCSO officers found more than 350 grams of cocaine and 50 grams of crack cocaine in the residence.
During the course of the investigation it was discovered that POLLOCK had been purchasing cocaine since July 2017. This included the several ounces of cocaine purchased just two days prior to his arrest.
POLLOCK’S self-described philosophy is summed by a tattoo on his body which reads, “Port City Menace” said investigators.
This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This investigation was conducted by the New Hanover County Sheriff’s Vice Unit and the Federal Bureau of Investigation’s Costal Career Criminal Enterprise Unit. Assistant United States Attorney Timothy M. Severo handled the prosecution of this case for the government.
Wilmington Gang Members Sentenced for Heroin DistributionRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday, United States District Judge James C. Dever III sentenced DEANDRE SWEET, 27, of Wilmington to 105 months of imprisonment followed by 3 years of supervised release. Additionally, yesterday, KYERIC SWEET, 25, of Wilmington was sentenced to 90 months of imprisonment followed by 3 years of supervised release.
On September 19, 2016, in a joint investigation, the FBI Safe Streets Task Force Gang Unit and the New Hanover County Sheriff’s Office Vice Division arranged an undercover purchase of heroin from DEANDRE SWEET. When DEANDRE SWEET arrived in a parking lot in Wilmington to complete the sale, law enforcement stopped his rental car and found 500 bags of heroin during a search of the vehicle. DEANDRE SWEET was then arrested.
According to the investigation, DEANDRE SWEET imported more than 500 grams of heroin from New York and New Jersey for distribution. A portion of this heroin was provided to gang members in the Wilmington area.
In the same joint investigation, law enforcement conducted several undercover purchases from KYERIC SWEET between June and October 2017. On October 12, 2017, law enforcement arrested KYERIC SWEET in possession of a quantity of heroin and more than $2,500. According to law enforcement, KYERIC SWEET is a validated gang member.
These cases are part of the Organized Crime Drug Enforcement Task Force Investigation entitled Tooth Fairy targeting gangs and heroin distribution in southeast North Carolina. This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force, Wilmington Police Department Gang Unit and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy M. Severo handled the prosecution of this case for the government.