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11 October 2018
Erie Man Charged with Fraud and Identity TheftRead the Press Release
ERIE, Pa. – A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of food stamp fraud, access device fraud and identity theft, United States Attorney Scott W. Brady announced today.
The eight-count indictment named John Alan Vanhouwe, 56, as the sole defendant.
According to the indictment presented to the court, Vanhouwe, who owned and operated a mobile convenience store in Erie, allowed customers to pay credit accounts with food stamps and used a database he created to gain access to customers’ food stamp accounts so he could pay down their credit accounts at his store without their knowledge.
The law provides for a maximum total sentence of 80 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eleven Bay Area Residents Charged in Federal Drug Trafficking, Firearms CrackdownRead the Press Release
SAN JOSE- Federal law enforcement authorities arrested eight Bay Area residents for a broad range of charges involving methamphetamine trafficking and the unlawful possession and sale of firearms, announced United States Attorney Alex G. Tse; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree; Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen; and U.S. Marshal Don O’Keefe. The arrests were made pursuant to five separate federal indictments handed down between March 8, 2018, and August 23, 2018. In total, the indictments charge eleven defendants, three of whom already were in custody.
The five indictments were unsealed yesterday as the defendants made initial appearances before U.S. Magistrate Judge Virginia DeMarchi. According to the indictments, each defendant engaged in at least one crime related to the distribution of methamphetamine or the illegal possession or sale of firearms.
The eleven defendants and the corresponding charges are as follows:
Defendant
Age
Charges
Maximum Statutory Penalty
ELISEO MARTINEZ
a/k/a Snowman
24
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841(b)(1)(B)
August 2016 through October 7, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(B) October 7, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
DANIEL NOGUEIRA
26
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841 (b)(1)(B)
August 2016 through October 7, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)
October 17, 2016
Lifetime imprisonment (minimum 10 years), $10 million fine, lifetime of supervised release (minimum 5 years)
Felon in Possession of a Firearm / Ammunition (two counts),
18 U.S.C. § 922(g)
November 18, 2016
December 13, 2017
(For each count)
10 years’ imprisonment, $250,000 fine,
3 years supervised release,
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
December 13, 2016
40 years’ imprisonment (minimum 5 years),
$5 million fine,
Lifetime of supervised release (minimum 4 years)
SHAWN MOORE, a/k/a S Mo
51
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841 (b)(1)(B)
January 17, 2017 through
January 23, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine (three counts),
21 U.S.C. 841(a)(1) and 841(b)(1)(B)
January 19, 2017
January 23, 2017
February 8, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
Lifetime of supervised release (minimum 4 years)
Felon in Possession of Ammunition,
18 U.S.C. § 922(g)
February 13, 2017
10 years’ imprisonment, $250,000 fine,
3 years supervised release,
ANTHONY LOPEZ, a/k/a Evil
34
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and 841 (b)(1)(B)
January 17, 2017 through
January 23, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine (two counts),
21 U.S.C. 841(a)(1) and 841(b)(1)(B)
January 19, 2017
January 23, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
DEREKE HOLDEN a/k/a Dee
22
Sale of Firearm / Ammunition to Felon (four counts),
18 U.S.C. § 922(d)(1)
January 30, 2017
May 30, 2017
June 23, 2017
(For each count)
10 years’ imprisonment,
$250,000 fine,
3 years supervised release
Distribution of Methamphetamine (two counts),
21 U.S.C. 841(a)(1) and 841(b)(1)(B)
September 12, 2017
September 20, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
SALVADOR MORFIN
a/k/a Panda
34
Distribution of Methamphetamine (two counts),
21 U.S.C. §§ 841(a)(1) and 841 (b)(1)(B)
September 20, 2017
October 5, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
COLLIN BLAUDEANDERSON
22
Sale of Firearm / Ammunition to Felon,
18 U.S.C. § 922(d)(1)
May 30, 2017
10 years’ imprisonment,
$250,000 fine,
3 years supervised release
Felon in Possession of Firearm / Ammunition (two counts),
18 U.S.C. § 922(g)(1)
May 30, 2017 and
June 23, 2017
(For each count)
10 years’ imprisonment, $250,000 fine,
3 years supervised release
ZION KORCZYNSKI
a/k/a Cream
25
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and
841(b)(1)(B)
February 13, 2017 through
September 12, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine (two counts),
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)
February 13, 2017
September 12, 2017
(For each count)
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
OSCAR MADRIGAL, JR.
a/k/a Oso
22
Sale of Firearm /Ammunition to Felon (two counts),
18 U.S.C. 922(d)(1)
June 23, 2017
October 5, 2017
(For each count)
10 years’ imprisonment,
$250,000 fine,
3 years supervised release
LARRY A. LUNDY
51
Conspiracy to Distribute Methamphetamine,
21 U.S.C. §§ 846, 841(a)(1) and
841(b)(1)(B)
February 13, 2017 through
September 12, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)
September 12, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
Lifetime of supervised release (minimum 4 years)
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)
September 18, 2017
October 11, 2017
Lifetime imprisonment (minimum 10 years), $10 million fine, lifetime of supervised release (minimum 5 years)
BREANN MANUEL ALONSO
a/k/a Manny
22
Unlicensed Dealing in Firearms,
18 U.S.C. §922(a)(1)(A)
July 5, 2017 through
September 6, 2017
5 years’ imprisonment,
$250,000 fine,
3 years supervised release
Felon in Possession of a Firearm / Ammunition (four counts),
18 U.S.C. § 922(g)
July 31, 2017
August 22, 2017
August 29, 2017
September 6, 2017
(For each count)
10 years’ imprisonment, $250,000 fine,
3 years supervised release,
Distribution of Methamphetamine,
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)
August 29, 2017
40 years’ imprisonment (minimum 5 years),
$5 million fine,
lifetime of supervised release (minimum 4 years)
Nogueira, Moore, Holden, Blaudeanderson, Madrigal, Alonso, Korczynski, and Lundy were arrested yesterday. Each made his initial appearance before Magistrate Judge DeMarchi and pleaded not guilty to the charged offenses. All the defendants except two are residents of San Jose. Moore is a resident of San Francisco and Blaudeanderson is a resident of Morgan Hill.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney John Bostic is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the ATF. Assisting in the arrest operation were the United States Marshals Service, Drug Enforcement Administration, and Santa Clara County Specialized Enforcement Team.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Christian Marshall, age 27, was indicted on August 13, 2018. Marshall appeared before U.S. Magistrate Judge Mark Moreno on October 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 6, 2018, Marshall, James Charger, and Andrew Good Eagle did unlawfully assault an individual, and said assault did result in serious bodily injury to the victim.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty. Charger and Good Eagle previously appeared on August 22, 2018, in front of Magistrate Judge William Gerdes and pled not guilty to the Indictment.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date of October 16, 2018, has been set.
Dominican Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Carlos Del Villar, of the Dominican Republic, pleaded guilty in federal court to participating in a drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in August 2018, U.S. Postal Inspectors obtained a search warrant for a suspicious package sent from Arizona to Del Villar’s apartment in Manchester. The package was found to contain approximately 242 grams of fentanyl. Del Villar was arrested after a Postal Inspector conducted a controlled delivery of the package to his apartment.
Del Villar is scheduled to be sentenced on January 17, 2019.
“Fentanyl continues to pose a serious threat to public safety in New Hampshire,” said U.S. Attorney Murray. “Those who bring this deadly drug into New Hampshire will be prosecuted aggressively. We will continue to work with all of our law enforcement partners to stop the flow of opioids into our state.”
This matter was investigated by the United States Postal Inspection Service, with assistance from the DEA and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Dansville Man Sentenced for His Role in Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Donald McKinney, 53, of Dansville, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of actual methamphetamine, was sentenced to serve 120 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that between January 2017 and April 25, 2017, the defendant conspired with others to ship high purity crystal methamphetamine from suppliers in California into Dansville, NY, where it was then distributed. McKinney regularly communicated with co-conspirators, Thomas Williams and Julie Cota, in California, and arranged for them to ship quantities of crystal methamphetamine to him in Dansville, via parcel service. The defendant paid Williams and Cota $1,000 per ounce and then sold the crystal methamphetamine to another co-conspirator, Kurt Redance, for $1,400 an ounce. In turn, Redance distributed the crystal methamphetamine to others, including sales at The Boneyard, an auto salvage business in Dansville.
McKinney is one of seven defendants charged in this methamphetamine conspiracy. All seven have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Eric Laughton.
# # # #
Couple Sentenced to Lengthy Prison Terms for $12.7 Million Affinity Investment FraudRead the Press Release
SUNG HONG, 47, and HYUN JOO HONG, 42, of Clyde Hill, Washington were sentenced today in U.S. District Court in Seattle to lengthy prison terms for defrauding more than 55 clients out of $12.7 million, announced U.S. Attorney Annette L. Hayes. SUNG HONG, aka LAURENCE HONG or LAWRENCE HONG, was sentenced to 15 years in prison. His wife, HYUN JOO HONG, aka GRACE HONG, was sentenced to six years in prison. From 2010 until their arrest in June 2017, the couple held themselves out as experienced investment advisors with a track record of performance in order to solicit investor funds for their hedge fund, Pishon Holdings, and for management through separately managed accounts. In fact, SUNG HONG had just completed a 33 month sentence for committing investment fraud when he launched this new scheme in 2010. At the sentencing hearing U.S. District Judge Thomas S. Zilly said, “This scheme was a serious, complex fraud over seven years. You targeted religious victims. You used God as a way to gain trust…. You have emotionally and spiritually damaged these victims and most of them will never recover.”
“Using faith and fraud, this couple stole millions from people whose dreams of a better life have now been shattered,” said U.S. Attorney Annette L. Hayes. “Both repeatedly lied to their investors, all while spending their hard earned money on high-end shopping sprees, luxurious vacations, a yacht and an expensive rental home. Their victims now live paycheck to paycheck with college and retirement funds depleted and a very different financial future than they expected.”
According to records filed in the case, the HONGs recruited investors using religious organizations and shared religious beliefs. The couple claimed that LAURENCE HONG privately invested billions of dollars for wealthy Korean families and that GRACE HONG held a Series 65 securities license and previously worked for a large international investment firm. None of these statements were true. Likewise, the defendants did not disclose LAURENCE HONG’s past criminal conviction for investment fraud. The couple sent potential investors misleading and false investment prospectuses that contained an inaccurate record of their past investment performance and other plagiarized investment outlooks.
Throughout their fraudulent scheme, the HONGs used stolen investor funds for their own benefit, including payments for a 9,000 square foot rental home in Clyde Hill; a 45-foot yacht; multiple high-end vehicles, such as BMWs, a Maserati, an Aston Martin, and a Lamborghini; and numerous expensive vacations to locations such as the Bahamas and Beverly Hills.
One church in California invested $1 million with the HONGs and lost about $300,000 on a single trade. Still, despite the steep losses and a fee arrangement based on investment gains, the HONGs withdrew almost $150,000, ostensibly as advisor fees, from the church’s account. Another couple allowed the HONGs to manage their $180,000 in retirement funds only to lose $100,000 within less than a year. After meeting with the HONGs, that couple then invested their remaining retirement funds in the HONGs’ hedge fund, only for those funds to be redirected into GRACE HONG’s personal account. The HONGs used those funds to pay credit card bills and other personal expenses, including a $16,000 payment to a resort in the Bahamas for a HONG family vacation.
Speaking to LAWRENCE HONG, Judge Zilly noted his prior conviction for a similar fraud: “You clearly did not learn anything from the fact you were convicted and sentenced to prison…. You are one of those con men who will never be able to stop conning people.” Judge Zilly noted that GRACE HONG played “an intricate and important role in the entire scheme. She misrepresented her credentials… she took God’s name – she used that to entice investors to put money in their pockets.”
Judge Zilly ordered the pair to pay more than $12.7 million in restitution. The losses for certain investors represented their entire life or retirement savings.
The case was investigated by the FBI. The United States Attorney’s Office thanks the Commodity Futures Trading Commission (CFTC) for its assistance in the investigation.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.
Convicted Felon Sentenced to 52 Months in Prison for Illegal Gun PossessionRead the Press Release
DAYTON – Thurston Lewis Goodjohn, 34, of Springfield, was sentenced in U.S. District Court to 52 months in prison for illegally possessing a firearm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Clark County Prosecuting Attorney D. Andrew Wilson and North Hampton Police Chief Jarrod Campbell announced the sentence handed down Tuesday by District Judge Walter H. Rice.
According to the Statement of Facts in this case, police stopped Goodjohn while he was driving in the Clark County village of North Hampton on April 8, 2017. The police officer saw a .40 caliber handgun in plain view in the car along with a magazine containing 15 rounds of ammunition. Goodjohn admitted that the gun was his and that he knew he was not allowed to possess a firearm because he had prior felony convictions.
Goodjohn pleaded guilty before Judge Rice on July 9, 2018 to one count of felon in possession of a firearm.
U.S. Attorney Glassman commended the cooperative investigation by ATF and North Hampton Police, as well as Assistant United States Attorney Andrew Hunt and former Special Assistant U.S. Attorney and former Clark County Assistant Prosecutor Andrew Picek, who represented the United States in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Cleveland Woman Pleads Guilty to Hospice FraudRead the Press Release
OXFORD, MS. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, together with Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta and Jim Hood, Attorney General for the State of Mississippi, announced today that a Cleveland, Mississippi woman has pled guilty to defrauding the United States by operating multiple fraudulent hospice programs and submitting fraudulent claims.
Charline Brandon of Cleveland, Mississippi, pled guilty on Wednesday before U.S. District Judge Debra M. Brown, to one count of Conspiracy to Commit Healthcare Fraud for her role in collecting Medicare and Medicaid payments from the U.S. Department of Health and Human Services and the Mississippi State Division of Medicaid for the fraudulent hospice claims.
Evidence submitted at the change of plea hearing showed that Brandon owned and operated a series of Hospice organizations headquartered in Cleveland, Mississippi, including Haven Hospice, North Haven Hospice, Lion Hospice and North Lion Hospice. Brandon admitted that she fraudulently submitted claims to Medicare and Medicaid for hospice services that were not medically necessary or that were not provided to the hospice patients as claimed. Brandon further admitted that she illegally recruited patients who were not hospice eligible. The Government alleged at the change of plea hearing that Brandon submitted more than $11 million in fraudulent claims to Medicare and more than $2 million in fraudulent claims to Medicaid.
“This sham hospice provider exploited the most vulnerable in our society while stealing millions from our health care system,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This is one of the largest and most egregious hospice schemes I have seen in Mississippi. The OIG will continue to identify the individuals committing these crimes and prosecute them to the fullest extent of the law.”
“Hospice is designed for end of life care to care for our most vulnerable people, not for personal gain. Unfortunately, this defendant was billing the taxpayers for patients who were not terminal. It is our duty to make sure our tax dollars are not stolen so there is money available to care for those who are terminally ill.” Attorney General Jim Hood said. “Joint investigations such as this one are key to protecting our healthcare system.”
U.S. Attorney William C. Lamar remarked: “In addition to helping to protect victims and those vulnerable members of our society, another part of our mission and goal is to protect our taxpayer dollars from those who would steal and misuse them. The United States Attorney’s Office will always seek to hold accountable those individuals who victimize our citizens and steal those resources designed to help them.”
This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Mississippi Attorney General’s Office and prosecuted by AUSA Clay Dabbs.
Claypool, Indiana Man Sentenced to 100 Months in PrisonRead the Press Release
SOUTH BEND – Seth Allen, 29 years old, of Claypool, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio, after pleading guilty to possessing a firearm after having been convicted of a felony, announced U.S. Attorney Kirsch.
The Court imposed a sentence of 100 months incarceration and 1 year of supervised release.
According to documents in the case, on January 3, 2018, Allen possessed and sold an Intratec model Tec-DC9, nine-millimeter Luger semi-automatic pistol to another individual. Allen had previously been convicted of a felony and has had multiple other criminal convictions since turning 18 years old.
This case was investigated by ATF with assistance from the Warsaw Police Department, and prosecuted by Assistant United States Attorney Jesse Barrett.
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Buffalo Man Sentenced for Selling Thousands of Bags of HeroinRead 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 Emmanuel Lopez, 27, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, 100 grams or more of heroin, was sentenced to 63 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2016 and December 5, 2017, the defendant sold heroin and fentanyl in the Buffalo area. In October 2017, the ICE-HSI Border Enforcement Security Team (BEST) conducted two controlled purchases from Lopez. During the buys, the defendant turned over 52 small yellow bags, which later tested positive for heroin, fentanyl, and tramadol.
At other times in October and November 2017, HSI agents observed Lopez engage in hand-to-hand transactions with suspected heroin customers. On at least one occasion, one of the customers was stopped by law enforcement and found to be in possession of suspected heroin. During a subsequent interview, the customer admitted to buying heroin from the defendant and the customer’s phone contained the defendant’s cell phone number.
Lopez was arrested on December 5, 2017. HSI agents then executed a federal search warrant at the defendant’s residence on Riverside Avenue in Buffalo. At the time of Lopez’s arrest, agents found $2,556 in cash in the pocket of the defendant’s sweatshirt, and his cellular telephone.A subsequent search of the defendant’s cellular telephone established that during the latter part of 2017, Lopez sold approximately 6,022 bags of heroin.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly.
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Bridgeport Man Admits Selling Heroin While Awaiting Sentencing for Selling Heroin to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARRYCK NORRIS, 25, of Bridgeport, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to distributing heroin while released on bond and awaiting sentencing for a prior heroin distribution offense.
According to court documents and statements made in court, at approximately 8:49 p.m. on October 27, 2016, Milford Police and emergency medical personnel responded to a residence in Milford and found an unresponsive 37-year-old male slumped over in the downstairs living area of the residence. Emergency personnel attempted lifesaving measures and administered two doses of the opiate antidote Narcan, which had no effect. The victim was pronounced deceased. Officers searched the immediate area and seized four empty baggies and one full baggy that contained suspected heroin. Each of the bags was stamped with the same brand stamp.
Officers also seized the victim’s iPhone. Analysis of text messages revealed that the victim had ordered heroin from NORRIS earlier that day. Witness interviews and further cellphone analysis revealed that the victim had purchased heroin from NORRIS for several months prior to the victim’s overdose.
On November 1, 2016, members of the DEA and Milford Police Department conducted a controlled purchase of heroin from NORRIS in Bridgeport. The heroin bags purchased were stamped with the same stamp that was found on the bags seized from the overdose victim’s residence.
NORRIS was arrested on a federal criminal complaint on November 3, 2016, and was released on a $50,000 bond. On May 17, 2017, he pleaded guilty to one count of distribution of heroin.
Judge Underhill allowed NORRIS to remain released on bond pending sentencing, and granted NORRIS’s request to attend the U.S. District Court’s Support Court program.
On February 16, 2018, NORRIS was arrested by the Bridgeport Police Department and charged with possession of narcotics with intent to sell, and other offenses. Subsequent investigation revealed that NORRIS had been distributing heroin between approximately December 2017 and his arrest on February 16.
When he is sentenced, NORRIS faces a maximum term of imprisonment of 20 years on each count of distribution of heroin. A sentencing date is not scheduled.
NORRIS is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Task Force, and the Milford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bellaire Man Charged in Ponzi SchemeRead the Press Release
HOUSTON – A 60-year-old resident of Bellaire made his initial appearance on a 13-count indictment charging him with wire fraud, mail fraud and money laundering, announced U.S. Attorney Ryan K. Patrick.
William Andrew Hightower surrendered to federal authorities yesterday.
He was president of Hightower Capital Group (HCG) which he founded it in 2010. There, he held himself out to be an investment advisor.
The 13-count indictment alleges Hightower took money from clients from 2013-2018 and made false promises as to their investments. In reality, according to the charges, he was conducting a Ponzi Scheme.
Hightower would allegedly tell investors their money was being invested in various projects, such as restaurants, movies, insurance contracts, among other things. The indictment alleges Hightower received more than $10 million from investors, many of whom believed Hightower was investing their money in legitimate projects. According to the allegations, Hightower used investor funds to pay earlier investors in a Ponzi Scheme, pay himself and fund his lifestyle.
Hightower also concealed from his clients that the Financial Industry Regulatory Authority (FINRA) had barred him from acting as a broker or otherwise associating with a broker-deal firm in October 2015, according to the indictment.
If convicted, he faces up to 20 years in federal prison for each count as well as a thousands of dollars in possible fines.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty through due process of law.
Batavia Man Charged with Stealing More Than A Dozen Firearms from A Gun Store in Bergen, NYRead 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 Morgan R. Coles, 20, of Batavia, NY, was charged by criminal complaint with stealing from a federal firearm licensee, and possession of a defaced firearm. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, on September 26, 2018, the defendant forcibly entered The Firing Pin, a Federal Firearms Licensee located at 8240 Buffalo Road in Bergen, NY. Coles made entry through a gable vent located on the roof of the building.
On September 27, 2018, an ATF Special Agent reviewed video surveillance, provided by the owner, of the break in. The video shows the defendant entering the retail portion of The Firing Pin from the range area, and is seen removing 14 firearms from the shelf and appears to place them into a bag. The video also shows Coles using a light, possibly from a cell phone, to navigate around the retail area. The surveillance video shows the defendant exiting the store through the range area.
On October 3, 2018, the Genesee County Sheriff’s Office obtained a search warrant for the residence of Coles on Jackson Street in Batavia, as well as another residence and a vehicle associated with the defendant. During the execution of search warrants, officers located 15 handguns at Coles's residence. Fourteen of the handguns had obliterated serial numbers. According to the complaint, the handguns found at the defendant's residence appear to match the descriptions of the handguns stolen from The Firing Pin.
Coles was arrested and charged in City Court of Batavia in Genesee County with Criminal Possession of a Weapon in the First Degree, a Class B felony.The defendant will make an initial appearance on October 17, 2018, before U.S. Magistrate Judge Jeremiah J. McCarthy.
The complaint is the result of an investigation by the Genesee County Sheriff's Office, under the direction of Sheriff William A. Sheron, Jr., and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Attorney General Jeff Sessions Welcomes Jeffrey Clark as Assistant Attorney General for the Environment and Natural Resources DivisionRead the Press Release
Attorney General Jeff Sessions welcomed the confirmation of Jeffrey Bossert Clark as the Assistant Attorney General of the Department of Justice’s Environment and Natural Resources Division (ENRD) today.
“Jeff Clark is one of the leading environmental litigators in the country, and has been counsel in many of the most significant environmental and natural resource cases of the past two decades, both here at the Department of Justice and in private practice,” said Attorney General Sessions. “Jeff has four years of experience as part of the Environment and Natural Resources Division leadership team, working on virtually every case that the division litigated in the courts of appeals and every environmental case argued before the Supreme Court. He is ready to lead this Division — and it should not have taken us 16 months to get him confirmed. And so today I want to congratulate Jeff and to thank my former colleagues in the Senate for confirming his nomination to this important role.”
ENRD is responsible for litigation in trial and appellate courts on behalf of the United States regarding the prevention and clean-up of pollution, challenges to federal programs and activities, the stewardship of public lands and natural resources, property acquisition to promote national security, wildlife protection, and Indian rights and claims.
Prior to his appointment as Assistant Attorney General, Mr. Clark was a partner with the international law firm of Kirkland & Ellis LLP in its Washington, D.C. office. During his time at the firm, he practiced in diverse areas of law, ranging from environmental to antitrust. Mr. Clark has argued and won numerous cases in multiple U.S. Courts of Appeals. He has deep experience in matters involving the Clean Air Act, the National Environmental Policy Act, the Energy Policy and Conservation Act of 1975, and the Energy Independence and Security Act of 2007.
Before joining the firm, Mr. Clark served as a Deputy Assistant Attorney General within ENRD from 2001 to 2005. In that role, he oversaw ENRD’s Appellate Section and the Indian Resources Section, where he reviewed, edited, and contributed to virtually every brief ENRD filed in the Courts of Appeals, including several cases of exceptional significance that he personally briefed and argued. During his time in ENRD, Mr. Clark also worked on all environmental or natural resource cases argued in front of the Supreme Court.
Mr. Clark received his bachelor’s degree in Economics and History from Harvard University and earned a master’s degree in Urban Affairs and Public Policy from the University of Delaware. He obtained his law degree from the Georgetown University Law Center, where he was an editor for the Georgetown Law Journal.
Attorney General Jeff Sessions Welcomes Eric Dreiband as Assistant Attorney General for the Civil Rights DivisionRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Eric Dreiband as the Department of Justice’s Assistant Attorney General for the Civil Rights Division.
“Eric has distinguished himself as an outstanding lawyer and a committed public servant,” said Attorney General Jeff Sessions. “His previous experience in protecting the civil and constitutional rights of all individuals will enable him to effectively lead the Civil Rights Division.”
Mr. Dreiband’s background spans the public and private sector, and also the issues covered by the Civil Rights Division. He previously served as the General Counsel of the United States Equal Employment Opportunity Commission (EEOC) from 2003-2005. As General Counsel, he led litigation teams on a number of federal employment discrimination enforcement matters, including enforcement of the Civil Rights Act of 1964. Prior to his tenure at the EEOC, Mr. Dreiband served as Deputy Administrator of the Department of Labor’s Wage and Hour Division. In this capacity, he helped lead enforcement efforts for the federal government of the Fair Labor Standards Act, the Family and Medical Leave Act, among other laws.
Prior to his nomination by President Trump to serve as the Assistant Attorney General for the Civil Rights Division, Mr. Dreiband was a partner in the Washington, D.C. office of the law firm of Jones Day. Mr. Dreiband received his J.D., with honors, from Northwestern University Pritzker School of Law, his M.T.S. from Harvard Divinity School, and his A.B. from Princeton University.
Atlantic City Police Officer Charged with Civil Rights and Other OffensesRead the Press Release
CAMDEN, N.J. - A federal grand jury has indicted an Atlantic City police officer for multiple offenses arising from an assault outside the Tropicana Hotel and Casino in June 2013, U.S. Attorney Craig Carpenito announced.
In an indictment returned Oct. 10, 2018, and unsealed today, Sterling Wheaten, 34, of Mays Landing, New Jersey, was charged with one count of violating an individual’s civil rights and one count of falsifying a record for submitting a false police report about the assault. He made his initial appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
On June 15, 2013, Wheaten was working in his official capacity as an Atlantic City Police Department (ACPD) officer with his K-9 partner. That day, four ACPD officers encountered the victim in the area of the Tropicana. After the victim was told to leave the area, the victim walked across Morris Avenue and began yelling threats and obscenities at the police officers. After several minutes, ACPD Officer #1 ran across the street toward him to arrest him.
While ACPD Officer #1 and other officers attempted to grab the victim, the victim pulled away and grabbed ACPD Officer #1 around the waist as the victim was taken to the ground. ACPD Officer #1 fell to the ground with the victim on top of him. Three ACPD Officers, Officers #2 through #4, pulled the victim from on top of ACPD Officer #1. The four officers then delivered knee strikes to the victim’s shoulder and back, punches to the victim’s back, and baton strikes to the victim’s back and legs. Eventually, ACPD Officer #5 arrived and delivered two knee strikes to the victim before successfully handcuffing the victim’s left hand.
During the struggle, which lasted less than two minutes, ACPD Officers radioed for the assistance of a K-9 Officer. Wheaten responded to the call. When he arrived, the victim was laying on his stomach with ACPD Officer #1 kneeling on the victim’s head/neck area and several ACPD Officers were pressing on the victim’s back and legs.
Wheaten immediately took his dog out of the vehicle and ran directly at the victim and the five ACPD Officers. ACPD Officer #5 got off of the victim while still holding the handcuff, which caused the victim’s chest to be exposed to the dog. Without issuing a warning that he would deploy the dog, or allowing the victim a chance to surrender, Wheaten released the dog, and the dog bit the victim in the chest.
The victim pushed the dog off of his chest and rolled to his side. The dog bit the victim on the back of his neck. Wheaten did not immediately remove the dog from the back of the victim’s neck, but instead told the dog to “hold” on the victim’s neck. During his training at the K-9 Academy, Wheaten was trained that the only type of K-9 apprehension that has resulted in the death of a suspect occurred when a K-9 bit a suspect on his neck, and that even though the K-9 was immediately recalled and medical care given, the suspect died.
While the dog was biting the back of the victim’s neck, Wheaten punched the victim twice in the shoulder/neck area. Eventually, the victim was handcuffed and the dog was placed into the police vehicle. ACPD Officer #6 administered first aid to the victim’s head and neck until paramedics arrived. The victim was taken to AtlanticCare Regional Medical Center in Atlantic City in police custody, where he was treated for dog bites to his head, neck and chest.
After the victim was transported to the hospital, Wheaten and ACPD Officers #1 through #5, returned to the police station to prepare their reports. Prior to writing the reports, ACPD Officer #1 obtained Tropicana’s surveillance video of the assault. Wheaten met with ACPD Officers #1 through #4 and they watched the security video from the Tropicana before preparing their police reports.
To justify his actions against the victim, Wheaten prepared and submitted false and fraudulent police reports. He wrote that the victim was “fighting my K9 partner,” “[struck] my partner with his right hand,” “a further violent struggle ensued,” and, in an effort to falsely justify the utilization of the K-9, that the “suspect violently assaulted uniformed law enforcement officer[s] with hands and fists . . . .” As part of the report, Wheaten, in an effort to falsely justify the closed fist punches to the victim, falsely stated that he feared that the victim “was going to get up and retrieve his weapon to injure us or flee the area endangering the public.” As part of the report, Wheaten falsely stated that he provided first aid to the victim’s wound until the ambulance/EMT arrived.
The violation of civil rights count carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden in the criminal case.
The charges and accusations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Federal Bank Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Gabriel Stephens, 37, of Albuquerque, N.M., pled guilty today in federal court to bank robbery and firearms charges.
The FBI, with assistance from the Rio Rancho Police Department, arrested Stephens in Feb. 2018, on a criminal complaint charging him with robbing the Mountain America Credit Union located at 9200 Golf Course Rd. NW in Albuquerque on Feb. 7, 2018, and the Rio Grande Credit Union located at 1526 Unser Blvd., in Rio Rancho, N.M., on Feb. 17, 2018. During both robberies, Stephens gave bank tellers a note demanding money and the bank tellers responded by placing money into Stephens’ backpack. During the Feb. 7, 2018, bank robbery, Stephens motioned as though he was holding a firearm inside his backpack, and during the Feb. 17, 2018, bank robbery he showed the bank teller a firearm located inside his backpack.
Stephens was indicted on March 13, 2018, and was charged with armed bank robbery and with using and carrying a firearm during and in relation to a crime of violence. The indictment was superseded on April 24, 2018, and charged Stephens with bank robbery of the Mountain America Credit Union on Feb. 7, 2018, in Bernalillo County, N.M.; armed bank robbery of the Rio Grande Credit Union on Feb. 17, 2018, in Sandoval County, N.M.; and using and carrying a firearm during and in relation to a crime of violence on Feb. 17, 2018, in Sandoval County.
During today’s proceedings, Stephens pled guilty to armed bank robbery and using and carrying a firearm during and in relation to a crime of violence. In entering the guilty plea, Stephens admitted that on Feb. 17, 2018, he entered the Rio Grande Credit Union and gave the teller a note, which demanded money. Stephens further admitted that as the teller was handing him money, Stephens opened his bag so the teller could see the firearm that was inside the bag.
At sentencing, Stephens faces a maximum penalty of 25 years in federal prison on the armed bank robbery charge and a mandatory minimum penalty of five years in federal prison for using and carrying a firearm during and in relation to a crime of violence, which must be served consecutive to the sentence imposed on the bank robbery charge. Stephens remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Rio Rancho Police Department. Assistant U.S. Attorney James D. Tierney is prosecuting the case.
7 Members of New Rochelle Drug Trafficking Organizations and 3 Members of Bridgeport Drug Trafficking Organization Charged in Federal Courts with Narcotics ConspiracyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John H. Durham, United States Attorney for the District of Connecticut, William F. Sweeney, Assistant Director in Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), James J. Hunt, Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Brian D. Boyle, Special Agent in Charge of the New England Division of the DEA, Brian C. Turner, Special Agent in Charge of the FBI, New Haven, and Joseph F. Schaller, the Commissioner of the New Rochelle Police Department, announced the results of a coordinated operation earlier today, in which federal, state, and local law enforcement officers arrested six defendants in Westchester County, New York, and three defendants in Fairfield County, Connecticut.
Ten defendants are charged in two federal indictments, unsealed today. Seven of the defendants were charged in the Southern District of New York with conspiracy to distribute five kilograms and more of cocaine and 50 grams and more of methamphetamine in and around New Rochelle, New York, since at least April 2018. The U.S. Attorney’s Office for the District of Connecticut has charged an additional three defendants with narcotics offenses, including conspiracy to distribute 500 grams and more of cocaine. Those defendants arrested today who are charged in the federal indictment in the Southern District of New York were presented in White Plains federal court today before Magistrate Judge Paul E. Davison.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Our Office is committed to ridding New York neighborhoods of highly addictive and extremely dangerous drugs. And we will continue to help coordinate our efforts with other U.S. Attorney’s Offices and local and federal law enforcement agencies.”
Connecticut U.S. Attorney John H. Durham stated: “We allege that these individuals were responsible for bringing significant amounts of cocaine and methamphetamine into our state. I thank our federal, state and local law enforcement partners for their diligent efforts in these cases, and our counterparts in the Southern District on New York for coordinating with us in these investigations and today’s take down of the most significant members of this organization.”
FBI Assistant Director-in-Charge of the New York Field Office William F. Sweeney stated: “The distribution of illegal narcotics continues to be a scourge on our communities. As alleged, these defendants profited from trafficking cocaine and methamphetamines at the expense of those subjected to all the negatives wrought by these substances. Today’s charges should serve as a reminder that the FBI, through our Westchester County Safe Streets task force, will continue to target these offenders and the impact they are having on our communities.”
FBI Special Agent-in-Charge of the New Haven Office Brian C. Turner stated: “Despite the ongoing battle against the opioid crisis in our communities, this indictment should make it abundantly clear that we at the FBI, along with all of our law enforcement partners, have not lost sight of the other illicit drugs and those that traffic them. Together we will continue to pursue those that seek to pollute our communities.”
DEA New York Special Agent-in-Charge James J. Hunt stated: “Earlier this year, DEA joined forces with FBI and the New Rochelle Police Department to dismantle a drug trafficking organization operating in Westchester and Fairfield Counties. By shutting down this family-run methamphetamine operation, lives will be saved. I applaud the efforts of our law enforcement partners and the US Attorney’s Offices Southern District of New York and District of Connecticut.”
DEA New England Special Agent-in-Charge Brian D. Boyle stated: “DEA is committed to investigating and dismantling large-scale poly drug trafficking organizations like this one operating in the Bridgeport, Connecticut, area. As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, ravages the very foundations of our families and communities. This investigation demonstrates the strength of collaborative local, state, and federal law enforcement efforts to seek and bring to justice anyone who engages in these crimes.”
New Rochelle Police Commissioner Joseph F. Schaller stated: “This is another example of the excellent work being performed by the joint federal, state and local drug enforcement task forces operating in Westchester and Fairfield Counties. The City of New Rochelle and the New Rochelle Police Department thank our law enforcement partners in this operation for their exceptional efforts and invaluable assistance in removing a significant number of dangerous drug traffickers from the streets of our city.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From April 2018 up to October 2018, ULYSSES LOPEZ, VALENTINO LOPEZ, and CHRISTIAN LOPEZ conspired to distribute five kilograms and more of powder cocaine and 50 grams and more of methamphetamine, and FELIPE BARAJAS, a/k/a “Felipe Barajas Gallegos,” JOSE OCEGUERA, a/k/a “Cande,” FELIPE CORTES, and SATURNINO OLIVER FARIAS, a/k/a “Genaro Robles,” conspired to distribute five kilograms and more of powder cocaine.
As alleged in the Indictment unsealed today in New Haven federal court:
From March 2018 through June 26, 2018, RAFAEL LOPEZ-MACIAS, a/k/a “Rafa,” a/k/a “Martin Sanchez,” JAIME LOPEZ, a/k/a “Compa,” and JUAN CARLOS FIGUEROA, a/k/a “Chaito,” conspired to distribute 500 grams or more of powder cocaine. In addition, on June 26, 2018, RAFAEL LOPEZ-MACIAS possessed with intent to distribute 500 grams and more of methamphetamine, and on June 7, 2018, JAIME LOPEZ possessed with intent to distribute a quantity of cocaine.
The defendants charged in White Plains federal court each face a maximum sentence of life imprisonment, and a mandatory minimum term of 10 years in prison. The defendants charged in New Haven federal court each face a maximum sentence of 40 years in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman and Mr. Durham praised the outstanding investigative work of the FBI, DEA, the Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. Mr. Berman also thanked the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance and the U.S. Attorney’s Office for the District of Connecticut for its ongoing coordination in the case.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
These cases are being prosecuted by Assistant United States Attorneys Emily Deininger and Celia Cohen of Southern District of New York’s White Plains Division, and by Assistant United States Attorneys Anthony Kaplan and Lauren Clark of the District of Connecticut.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
6 Members of New Rochelle Drug Trafficking Organization and 3 Members of Bridgeport Drug Trafficking Organization Charged with Narcotics ConspiracyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John H. Durham, United States Attorney for the District of Connecticut, William F. Sweeney, Assistant Director in Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), James J. Hunt, Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Brian D. Boyle, Special Agent in Charge of the New England Division of the DEA, Brian C. Turner, Special Agent in Charge of the FBI, New Haven, and Joseph F. Schaller, the Commissioner of the New Rochelle Police Department, announced the results of a coordinated operation earlier today, in which federal, state, and local law enforcement officers arrested six defendants in Westchester County, New York, and three defendants in Fairfield County, Connecticut.
Ten defendants are charged in two federal indictments, unsealed today. Seven of the defendants were charged in the Southern District of New York with conspiracy to distribute five kilograms and more of cocaine and 50 grams and more of methamphetamine in and around New Rochelle, New York, since at least April 2018. The U.S. Attorney’s Office for the District of Connecticut has charged an additional three defendants with narcotics offenses, including conspiracy to distribute 500 grams and more of cocaine. Those defendants arrested today who are charged in the federal indictment in the Southern District of New York were presented in White Plains federal court today before Magistrate Judge Paul E. Davison.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Our Office is committed to ridding New York neighborhoods of highly addictive and extremely dangerous drugs. And we will continue to help coordinate our efforts with other U.S. Attorney’s Offices and local and federal law enforcement agencies.”
Connecticut U.S. Attorney John H. Durham stated: “We allege that these individuals were responsible for bringing significant amounts of cocaine and methamphetamine into our state. I thank our federal, state and local law enforcement partners for their diligent efforts in these cases, and our counterparts in the Southern District on New York for coordinating with us in these investigations and today’s take down of the most significant members of this organization.”
FBI Assistant Director-in-Charge of the New York Field Office William F. Sweeney stated: “The distribution of illegal narcotics continues to be a scourge on our communities. As alleged, these defendants profited from trafficking cocaine and methamphetamines at the expense of those subjected to all the negatives wrought by these substances. Today’s charges should serve as a reminder that the FBI, through our Westchester County Safe Streets task force, will continue to target these offenders and the impact they are having on our communities.”
FBI Special Agent-in-Charge of the New Haven Office Brian C. Turner stated: “Despite the ongoing battle against the opioid crisis in our communities, this indictment should make it abundantly clear that we at the FBI, along with all of our law enforcement partners, have not lost sight of the other illicit drugs and those that traffic them. Together we will continue to pursue those that seek to pollute our communities.”
DEA New York Special Agent-in-Charge James J. Hunt stated: “Earlier this year, DEA joined forces with FBI and the New Rochelle Police Department to dismantle a drug trafficking organization operating in Westchester and Fairfield Counties. By shutting down this family-run methamphetamine operation, lives will be saved. I applaud the efforts of our law enforcement partners and the US Attorney’s Offices Southern District of New York and District of Connecticut.”
DEA New England Special Agent-in-Charge Brian D. Boyle stated: “DEA is committed to investigating and dismantling large-scale poly drug trafficking organizations like this one operating in the Bridgeport, Connecticut, area. As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, ravages the very foundations of our families and communities. This investigation demonstrates the strength of collaborative local, state, and federal law enforcement efforts to seek and bring to justice anyone who engages in these crimes.”
New Rochelle Police Commissioner Joseph F. Schaller stated: “This is another example of the excellent work being performed by the joint federal, state and local drug enforcement task forces operating in Westchester and Fairfield Counties. The City of New Rochelle and the New Rochelle Police Department thank our law enforcement partners in this operation for their exceptional efforts and invaluable assistance in removing a significant number of dangerous drug traffickers from the streets of our city.”
As alleged in the Indictment unsealed today in White Plains federal court:
From April 2018 up to October 2018, ULYSSES LOPEZ, VALENTINO LOPEZ, and CHRISTIAN LOPEZ conspired to distribute five kilograms and more of powder cocaine and 50 grams and more of methamphetamine, and FELIPE BARAJAS, a/k/a “Felipe Barajas Gallegos,” JOSE OCEGUERA, a/k/a “Cande,” FELIPE CORTES, and SATURNINO OLIVER FARIAS, a/k/a “Genaro Robles,” conspired to distribute five kilograms and more of powder cocaine.
As alleged in the Indictment unsealed today in New Haven federal court:
From March 2018 through June 26, 2018, RAFAEL LOPEZ-MACIAS, a/k/a “Rafa,” a/k/a “Martin Sanchez,” JAIME LOPEZ, a/k/a “Compa,” and JUAN CARLOS FIGUEROA, a/k/a “Chaito,” conspired to distribute 500 grams or more of powder cocaine. In addition, on June 26, 2018, RAFAEL LOPEZ-MACIAS possessed with intent to distribute 500 grams and more of methamphetamine, and on June 7, 2018, JAIME LOPEZ possessed with intent to distribute a quantity of cocaine.
The defendants charged in White Plains federal court each face a maximum sentence of life imprisonment, and a mandatory minimum term of 10 years in prison. The defendants charged in New Haven federal court each face a maximum sentence of 40 years in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Berman and Mr. Durham praised the outstanding investigative work of the FBI, DEA, the Connecticut State Police, and the New Rochelle, Norwalk and Stamford Police Departments. Mr. Berman also thanked the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance and the U.S. Attorney’s Office for the District of Connecticut for its ongoing coordination in the case.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
These cases are being prosecuted by Assistant United States Attorneys Emily Deininger and Celia Cohen of Southern District of New York’s White Plains Division, and by Assistant United States Attorneys Anthony Kaplan and Lauren Clark of the District of Connecticut.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
2 Florida Men Plead Guilty to Multimillion-Dollar Credit Card Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMES BECKISH and JOSEPH ANTHONY DEMARIA pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to make unauthorized charges on credit cards through sham companies that purportedly offered nutraceutical products for sale over the internet. BECKISH and DEMARIA pled guilty before United States District Judge Edgardo Ramos.
According to the Complaint, the Information to which BECKISH and DEMARIA pled guilty, and statements made during the proceedings today:
Between 2013 and 2017, BECKISH, DEMARIA and others, created and operated dozens of companies that purported to sell dietary supplements and similar products called “nutraceuticals” over the internet. The websites of the defendants’ companies purported to sell products like dietary supplements but, in reality, were primarily used to repeatedly bill consumers who never ordered their products, or even if they did, almost never received them. The defendants used these websites as a cover for unauthorized and recurring charges that were placed on thousands of credit card numbers that the defendants had purchased or obtained, or had acquired from consumers who had attempted to order the products in question. For example, in one email, DEMARIA asked BECKISH: “Are we shipping these guys actual nutra products? Lol.” To which BECKISH responded: “Nope.”
BECKISH, DEMARIA, and others created these different companies and websites, because they knew that credit card processors would stop doing business with them over time as consumers noticed the unauthorized charges and sought refunds. These refunds, called “chargebacks” by credit card processors, are generally low for legitimate businesses but reached extremely high percentages for many of the companies associated with the defendants’ scheme. In certain instances, the chargeback rates quickly approached or even exceeded 20 percent – that is, consumers were seeking refunds of more than 20 percent of the charges placed by certain of the defendants’ companies. Credit card processors, in turn, paid millions of dollars in refunds for fraudulent charges associated with the defendants’ companies between 2013 and 2017 in attempts to refund affected consumers.
In total, BECKISH and DEMARIA both pled guilty to causing more than $7 million in loss during the duration of the scheme.
* * *
BECKISH, 32, of Miami, Florida, and DEMARIA, 33, of Miami, Florida, each plead guilty to one count of conspiracy, which carries a maximum sentence of five years in prison. BECKISH and DEMARIA also agreed to pay restitution and to forfeit $7,231,878. Sentencing for BECKISH is scheduled for January 16, 2019 at 12:30 p.m. before Judge Ramos. Sentencing for DEMARIA is scheduled for January 18, 2019 at 12:30 p.m. before Judge Ramos.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendants will be determined by the judge.
Mr. Berman praised the investigative work of the Secret Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Sassoon, Olga Zverovich, and Michael McGinnis are in charge of the prosecution.
10 October 2018
Wichita Man Pleads Guilty to Robbing a Quik TripRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty today to robbing a Quik Trip in Wichita, U.S. Attorney Stephan McAllister said.
Samuel L. Vliet, 26, Wichita, Kan., pleaded guilty to one count of robbing a commercial business. In his plea, he admitted that on July 18, 2018, he robbed a Quik Trip at 110 S. Rock Road in Wichita. After Vliet left the store with money from the register, investigators lifted prints from a door where the clerk saw the robber touch the glass. The prints helped investigators identify Vliet and arrest him.
Sentencing is set for Jan. 3. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Westerly Resident Admits to Child Pornography ChargesRead the Press Release
PROVIDENCE – A Westerly man pleaded guilty in U.S. District Court in Providence today to receiving, possessing and distributing child pornography, and to transferring obscene material to a minor.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Jonathan Breslin, 33, admitted to the Court that he exchanged sexually explicit images involving minors with others via online social media applications. Breslin also admitted to sending sexually explicit images to a minor via the Internet and attempting to entice minors to create and share with him sexually explicit images and/or videos.
Breslin pleaded guilty to possession of child pornography, transferring obscene material to a minor, and two counts of receipt and distribution of child pornography, announced by United States Attorney Stephen G. Dambruch; Special Agent in Charge of Homeland Security Investigations Peter C. Fitzhugh; Superintendent of the Rhode Island State Police Ann C. Assumpico; Westerly Police Chief Richard G. Silva; and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents, Homeland Security Investigations learned from a Canadian law enforcement agency of 78 unique users who shared and/or communicated about child pornography on a social media application. Through further investigation, Homeland Security Investigations identified one of the IP addresses as belonging to Jonathan Breslin. The investigation into Breslin's online activities revealed a series of sexually explicit discussions about creating, distributing and the viewing of child pornography.
As part of the investigation, a Homeland Security Investigations agent posing as an individual interested in child pornography engaged Breslin in a series of communications. During the exchanges with the agent, Breslin discussed viewing, possessing and the attempted production of child pornography.
Additionally, the investigation determined that Breslin transferred obscene material online to a person under the age of 16 and attempted to entice a minor to engage in illicit sexual activity.
On August 9, 2017, a court-authorized search of Breslin’s residence by agents from Homeland Security Investigations, the Rhode Island State Police Internet Crimes Against Children Task Force, and members of the Westerly and Warwick Departments resulted in the seizure of a computer, a digital media storage device and cell phone all containing child pornography. A forensic audit of the electronic equipment revealed at least 275 images and 46 videos containing child pornography.
Breslin, who has been detained in federal custody since his arrest on August 9, 2017, is scheduled to be sentenced on January 10, 2019.
Possession of child pornography and transfer of obscene material to a minor are punishable by statutory penalties of up to 10 years in federal prison. Receipt and distribution of child pornography is punishable by statutory penalties of 5-20 years in federal prison.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island Internet Crimes Against Children Task Force is comprised of law enforcement personnel from the Rhode Island State Police, Homeland Security Investigations, and the Warwick, Cranston, East Providence, Newport, Pawtucket, North Kingstown, Bristol, and Woonsocket Police Departments.
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West Haven Man Sentenced to 140 Months for Drug Trafficking, Attempt to Destroy Body of Murder VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAURICE WEARING, 29, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 140 months of imprisonment, followed by five years of supervised release, for drug trafficking and his role in an attempt to destroy the body of a victim of a related murder with a homemade pipe bomb on July 4, 2015.
According to court documents and statements made in court, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven.
After West Haven Police informed investigators that Brooks had been residing with Christopher Miller at 59 Front Avenue in West Haven, and that Miller and other residents of 59 Front Avenue were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of cocaine base (“crack cocaine), approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
The investigation revealed that, in the early morning hours of July 4, 2015, Miller shot Brooks three times with a firearm that was equipped with a silencer, at their residence. Miller and Wearing then wrapped Brooks’ body in plastic, drove the body to the wooded area in Hamden, placed a homemade pipe bomb underneath Brooks’ body, and detonated the pipe bomb in an attempt to destroy evidence.
The investigation further revealed that in the year prior to Brooks’ murder, Miller, Wearing and others distributed at least 1.6 kilograms of crack cocaine, as well as other narcotics.
On August 18, 2017, Wearing pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), and one count of possession of an explosive by a convicted felon.
On April 5, 2017, Miller pleaded guilty to one count of possession of a firearm and explosive device in furtherance of a drug trafficking crime. On August 22, 2018, he was sentenced to 360 months of imprisonment.
Miller and Wearing also were charged with related state offenses.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Vanessa Richards in coordination with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Waterford Man Sentenced for Accessing Child Pornography Web SiteRead the Press Release
ALBANY, NEW YORK – Brian Napier, age 35, of Waterford, New York, was sentenced today to 36 months in prison for accessing a child pornography web site available only through an anonymous Internet network.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Thomas J. McAvoy also ordered Napier to serve a 20-year term of supervised release following his release from prison, and to pay a special assessment of $15,300. Napier must also register as a sex offender following his release from prison.
As part of his plea, Napier admitted that in 2015, he accessed Playpen, an online forum through which registered users advertised, viewed, and distributed child pornography. Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted.
Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information. Napier admitted that he logged into Playpen in order to access its child pornography content.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Vancouver Man Sentenced for His Actions that Caused the Diversion of a Delta FlightRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced today that Bolutife Olusegun Olorunda, 29, of Vancouver, Washington, was sentenced to three months of probation for Assault Within Maritime and Territorial Jurisdiction.
On May 30, 2018, while on Delta Air Lines flight 1156, en route from Portland, Oregon, to Atlanta, Georgia, Olorunda verbally assaulted and interfered with a flight attendant on the aircraft. Due to his threatening behavior, the pilot and Captain of the aircraft declared an “emergency” and diverted the aircraft to Tulsa International Airport for an emergency landing.
“Airline passengers must follow the lawful directions of flight crew members. As this case shows, there are serious consequences when one does not abide by the rules of the flight. There are no exceptions. This defendant’s actions caused a flight to be diverted to Tulsa. Diverted flights are costly to the airlines and extremely inconvenient to other travelers,” said U.S. Attorney Trent Shores. “More importantly, defiant and belligerent behavior potentially places lives at risk. The crew and Federal Air Marshals are to be applauded for swiftly handling the situation and ensuring the safety of those aboard Delta flight 1156.”
As part of his Plea Agreement, Olorunda will also pay restitution to Delta Air Lines in the amount of $9,118 for the cost of diverting the flight for an emergency landing. Additionally, Olorunda will face a civil penalty, which includes significant fines from the Federal Aviation Administration and the Transportation Security Administration.
Olorunda faced a maximum sentence of six months in prison, a $5,000 fine, and one year supervised release. He was sentenced today in United States Magistrate Court by U.S. Magistrate Judge Jodi F. Jayne.
The case was investigated by agents with the Transportation Safety Administration’s Office of Law Enforcement, the Federal Bureau of Investigation, and the Tulsa Airport Police. Assistant U.S. Attorney Robert T. Raley handled the prosecution of this case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
U.S. Attorney Thomas T. Cullen Announces Progress in Making our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
Roanoke, VIRGINIA – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
Throughout the past year, the United States Attorney’s Office has partnered with all levels of law enforcement to reduce violent crime and make the communities and neighborhoods of the Western District of Virginia safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“Reducing violent crime through the PSN initiative is my top priority,” said U.S. Attorney Cullen. “With the assistance of our federal, state, and local law-enforcement partners, we have made significant progress towards this goal in Danville and Roanoke. Over 20 alleged violent gang members are no longer operating on the streets of these communities, and we look forward to continuing our efforts there and expanding PSN to other localities in the Western District of Virginia.”
Led by U.S. Attorney Cullen, the Western District of Virginia’s PSN Initiative tasks federal prosecutors with targeting violent individuals, groups, and gangs within specific communities and, through vigorous prosecution, working to achieve meaningful reductions in the rates of violent crime. Over the past year there have been many highlights on the newly revitalized PSN program. Here are some examples of the most effective:
- Danville RICO Indictment: On June 14, 2018, federal, state, and local authorities announced the largest and most significant prosecution of organized gang activity in the Western District of Virginia in over a decade. “Read More”
- US v. Justin Stallings: On July 25, 2018, a federal grand jury charged a Danville man with committing numerous armed robberies of businesses in Danville, Bedford, and Rocky Mount. “Read More”
- Roanoke RICO Indictment: On October 1, 2018, federal, state, and local authorities announced federal racketeering conspiracy charge against four Roanoke gang members and associates. “Read More
In addition to vigorous enforcement efforts, the United States Attorney’s Office maintains strong partnerships with a variety of federal, state, and local law enforcement agencies throughout the Western District of Virginia. The United States Attorney’s Office collaborates on PSN initiatives with the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration, and, in its target enforcement areas, with the Danville Police Department, the Commonwealth’s Attorney for the City of Danville, the Roanoke City Police Department, and the Commonwealth’s Attorney for the City of Roanoke.
Moving forward into 2019, the United States Attorney’s Office will expand its PSN programs into more locations throughout the Western District to make the Western District of Virginia an even safer place.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
U.S. Attorney Matthew Schneider Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy.
“Project Safe Neighborhoods has been a long-standing weapon in our fight against violent gangs and gun crimes in Michigan,” United States Attorney Matthew Schneider said. “With this new revitalization of Project Safe Neighborhoods, we now have even more resources to go after violent offenders who seek to wreak havoc in our communities. Our success is a direct result of the hard work and commitment of our state and local law enforcement partners.”
PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, the U.S. Attorney’s Office has continued to partner with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“We are one community. When criminals prey on one of us, it hurts all of us,” said ATF Special Agent in Charge James Deir. “Because we are one community, ATF will never waver in our mission to protect the public from violent criminals.”
“Ensuring the safety and security of our residents in the city of Detroit is our number one priority. With the collaborative efforts of Project Safe Neighborhoods, we will continue our efforts to target and dismantle gangs, as well as, other violent offenders that pose a threat to the safety and wellbeing of our City,” said Assistant Chief James White.
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
Detroit is one of the original ten cities that participated in the rollout of Project Safe Neighborhoods in 2001. Since then, the U.S. Attorney’s Office has expanded its PSN efforts to cover the entire Eastern District of Michigan.
Since the revitalization of PSN in October 2017, the U.S. Attorney’s Office has increased its PSN caseload by 14%.
In the last few months, the United States Attorney’s Office has hired 18 new Assistant United States Attorneys to fill vacancies in the office. Six of these Assistant U.S. Attorneys are entirely new positions. Five are focusing on violent crime and gun prosecutions; one is focusing on immigration-related crimes. The office now has 120 full-time Assistant U.S. Attorneys. The Eastern District of Michigan covers 34 counties with a population of over 6.5 million residents
The U.S Attorney’s Office has been working closely with our state and local partners to ensure that federal efforts are focused on the most violent offenders. By incorporating the basic principles of the Detroit One Initiative along with PSN, we have created a unified approach, working in partnership with a large community of stakeholders to reduce violent crime. By utilizing available data and advances in technology, we have been able to identify offenders who are driving violent crime rates in certain areas of Detroit.
Given the success of PSN in the northwest area of Detroit, the Justice Department is providing additional PSN funding to the eastside of Detroit using the nearly $700,000 grant awarded last week. The funding will be utilized to enhance the suppression, prosecutorial and outreach activities identified as best practices to target violent crime and improve the quality of life for the community.
In addition, the Department of Justice announced last week that the City of Detroit was awarded $800,000 to be used to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
Information sharing is a key piece in this strategy. Two ways in which information is shared is through Project Green Light and Gun Stat. Project Green Light is a crime-fighting partnership between the City of Detroit, the Detroit Police Department and local businesses whereby real-time cameras are installed and connected directly to the Detroit Police Department headquarters where video feeds are received, monitored and analyzed. Information gathered from the surveillance cameras have proven useful in federal prosecutions. In one instance, the footage from one of the surveillance cameras lead to an indictment of a three-time convicted felon who was arrested and charged with being a felon in possession of a firearm after officers caught him trying to discard a firearm into a dumpster.
Another vital tool in sharing information is Gun Stat. Gun Stat is a partnership between the Detroit Police Department, the U.S. Attorney’s Office, Wayne County Prosecutor’s Office, the ATF, and the FBI. The purpose of GunStat is to focus on benchmarks that lead to an overall reduction of violent gun related crime. Specific emphasis is place on violent offenders and gun related cases. Law enforcement will review citywide gun arrests and look at whether the arrestee has certain characteristics that statistically contribute to violent gun related crimes. Such characteristics include if the arrestee is a gang member or an associate of a gang, has a prior arrest with a firearm, has a violent criminal history, is on probation or parole, was shot or has been a shooter, or has other gun related contacts. Based on these factors, law enforcement will prioritize resources and focus on those individuals who are more likely to engage in violent gun related crimes.
Community Partnerships
Another key component to any successful crime-fighting initiative is community engagement. The United States Attorney’s Office, along with our law enforcement partners and community members are actively involved in outreach programs as part of our prevention strategy. Two of those outreach programs are Ceasefire and Project Sentry.
Operation Ceasefire Detroit is a community based violence prevention partnership aimed at reducing violent crime. Under the program violent street group members on parole or probation are called in to meetings as a condition of their release. Participants include law enforcement officials who explain to the street groups that continued violence will result in prosecution and stiff prison sentences. Social service providers describe services that are available under re-entry programs to help street group members succeed outside of prison and residents of the street group members’ own communities -- clergy, ex-offenders and families of victims of violent crime describe in graphic and personal terms the consequences of violence in their neighborhood, and insist that the street group members help stop the violence. Call-ins occur quarterly at preselected locations within the City of Detroit. Following the hour long presentation, the speakers and participants have dinner and fellowship to reinforce the message: the community will assist every group member who wants to change his life for the better.
Project Sentry is a school-based youth engagement approach to reducing gun violence through prevention and deterrence strategies. The United States Attorney for the Eastern District of Michigan (USAMIE) is committed to educating youth on the dangers and consequences of gun violence. Like many USAMIE outreach efforts, Project Sentry relies on federal, state, and local law enforcement volunteers, along with other first responders to raise awareness about gun violence.
Improvements to Community Safety
• The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
• The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
• Detroit PSN focuses on the 8th precinct of Detroit. The 8th precinct, on Detroit’s west-side, historically has experienced some of the highest levels of violence in the city. According to statistics compiled by the PSN Michigan State University Research Partner, fatal and non-fatal shootings continued a downward trend that began in 2017. The first six months of 2018 experienced a 13% decrease from 2017 and a 28% decrease from 2016. When compared to the average number of fatal and non-fatal incidents that occurred from 2014 to 2016, the first six months of 2018 witnessed a 20% decline.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
U.S. Attorney John F. Bash Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Attorney General Sessions has demonstrated tough and inspiring leadership in prioritizing the fight against violent crime,” said U.S. Attorney John F. Bash. “Our office and our federal, state, and local partners have focused considerable resources on areas in Central and West Texas that have struggled with violent crime in the past. In my view, this not just a law-and-order issue. It is also an issue of economic and social justice. When children in some communities grow up in constant fear of a sudden outbreak of random violence—when the simple act of walking to school is fraught with risk—their chance for success and happiness in life is inevitably diminished. We won’t ensure that every child in this Nation can succeed until we rid every community of gangs and gun violence.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
- San Antonio (Operation Triple Beam) – From September to December 2017 the U.S. Marshal’s Lone Star Fugitive Task Force partnered with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the San Antonio Police Department (SAPD), the Bexar County Sheriff’s Office (BCSO) and the Texas Department of Public Safety (DPS). The operation targeted gangs and violent fugitives resulting in approximately 200 arrests, the seizure of nearly 70 firearms, and the confiscation of approximately $170,000 worth of drugs.
- San Antonio – In 2017, gang violence came to a head in San Antonio when a four-year-old boy was the victim of a drive-by shooting. The child was shot in the head with a .223 round as he played video games in his home. The ensuing investigation, as well as others by the Federal Bureau of Investigation (FBI), ATF, USMS, SAPD, BCSO, and DPS, resulted in federal firearm and drug trafficking charges filed against dozens of individuals including members and associates of the local factions of the Bloods and Crips.
- San Antonio – ATF has worked with SAPD and DPS on the National Integrated Ballistics Information Network (NIBIN) Task Force. NIBIN’s ballistic technology links shell casings from one crime scene to firearms and casings found at crime scenes throughout the United States. In the area of gun violence, this effort has yielded 317 leads and 33 arrests and has resulted in 75 shootings being solved.
- Temple/Killeen – Federal authorities are working with local authorities to get violent criminals off the street. Since October 2017, authorities have filed federal firearms/drug charges against more than 80 convicted felons in the Temple/Killeen areas. These filings reflect a 319% increase in federal charges filed over the previous fiscal year for offenses in the same areas.
- Odessa – For 2015 and 2016, Texas Monthly declared Odessa the “Most Dangerous City” in Texas based on statistical information for violent crimes. The Odessa PSN Task Force (Odessa Police Department, Ector County Sheriff’s Office, DPS, FBI, USMS, Drug Enforcement Administration (DEA) and ATF) recognized and focused their investigative efforts on the growing number of firearm thefts and the resulting sale of those firearms to known criminal actors, narcotics distributors and gang members. As a result, federal prosecutions in 2017 for firearms violations increased almost 30% in the Midland/Odessa Division. Individuals charged federally had extensive criminal histories (5-20 previous events).
Community Partnerships
- The U.S. Attorney’s Office is currently working with two elementary schools in the San Antonio Target Enforcement Area to establish a volunteer program made up of the office’s employees. The children in this area live in neighborhoods marked by high levels of crime and households that often mistrust law enforcement officials. The school officials believe that law enforcement officers and the U.S. Attorney’s Office could provide these students with positive role models who can help guide them to a path for productive lives and help foster trusting relationships with law enforcement agencies.
Improvements to Community Safety Nationwide
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our U.S. Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each U.S. Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
U.S. Attorney Charles E. Peeler Announces Progress in Making Georgia Communities Safer Through Project Safe NeighborhoodsRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past year, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“Project Safe Neighborhoods is a common sense approach to reducing violent crime by forming partnerships between the United States Attorney’s Office and federal, state, and local law enforcement and district attorneys to identify, arrest and prosecute the most violent individuals,” United States Attorney for the Middle District of Georgia Charles E. Peeler said. “I want to thank law enforcement across our district for their assistance with this initiative. It is making a real impact. Our office looks forward to continuing to work with our law enforcement and community partners to further reduce violent crime in the Middle District of Georgia.”
As we celebrate the one-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
Since the revitalization of Project Safe Neighborhoods, the United States Attorney’s Office for the Middle District of Georgia has partnered with federal, state and local law enforcement officials in creating PSN Task Forces in Albany, Athens, Columbus, Macon, Americus and Valdosta. These task forces meet at least once a month to identify violent gun, gang and drug offenders for federal prosecution. Some examples include:
- In Albany, Georgia, the United States Attorney’s Office in coordination with the United States Marshals Service, Southeastern Regional Fugitive Task Force, Albany Police Department, Georgia Department of Community Supervision, Dougherty County Sheriff’s Office, Dougherty County Police Department and Dougherty County District Attorney’s Office conducted Operation Arrowhead resulting in more than 50 arrests of violent drug, gun and gang offenders. https://www.albanyherald.com/news/local/law-enforcement-agencies-announce-joint-crackdown-on-crime/article_e3d7e5da-07d4-5285-986b-68559523f1c5.html
- In Milledgeville, Georgia, a Project Safe Neighborhoods prosecution led to the conviction of over 13 defendants including one defendant, Delma Goddard, who will be facing a minimum mandatory sentence of 125 years in federal prison. https://www.macon.com/news/local/crime/article215849345.html
- In Macon, Georgia, in an effort to target violent offenders, the United States Attorney’s Office in coordination with the United States Marshals Service, Southeastern Regional Fugitive Task Force, Bibb County Sheriff’s Office, Bibb County District Attorney, FBI, ATF, and DEA launched Operation Shockwave which resulted in the arrest of 46 individuals, and removal of eight firearms and multiple pounds of ecstasy from the streets of Macon. https://www.macon.com/news/local/crime/article217017325.html
- In Columbus, Georgia ten defendants were indicted and arrested on Federal Firearms and Narcotics violations in a sweep coordinated by the United States Attorney’s Office, United States Marshals Service, Southeastern Regional Fugitive Task Force, Columbus Police Department, Georgia Department of Community Supervision, Muscogee County Sheriff’s Department, Muscogee County District Attorney’s Office, FBI, DEA and ATF. https://www.justice.gov/usao-mdga/pr/ten-indicted-and-arrested-federal-firearms-and-narcotics-violations-sweep
Community Partnerships
Business leaders across the Middle District of Georgia assist PSN Task Forces by evaluating Project Safe Neighborhood grant requests to ensure that federal money is used where it can make the biggest impact reducing violent crime. Partnerships between federal, state and local law enforcement, the private sector and community groups are instrumental to reducing violent crime across our district.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
- Since the formation of the PSN Task Forces in the Middle District of Georgia, the homicide rate in Albany, Georgia has dropped by 30% and in Columbus, Georgia by 10% during 2018.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
For further information, please contact Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or [email protected].
Two Washington, D.C. Siblings Plead Guilty for Attack Outside D.C. CourthouseRead the Press Release
Washington, D.C. siblings pleaded guilty today for their April attack on a federal prosecutor and a murder victim’s daughter outside the Superior Court for the District of Columbia, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Maurice Hight, 28, pleaded guilty today to one count of felony assault on a federal official. Tiera Hight, 21, pleaded guilty today to one count of misdemeanor assault on a federal official and one count of misdemeanor assault in violation of District of Columbia Code. According to admissions made in connection with their plea agreements, on April 5, 2018, Maurice and Tiera Hight were in a courtroom in the Superior Court for the District of Columbia waiting for a verdict against their brother, who was being tried for murder. After the guilty verdict, Maurice and Tiera Hight exited the courthouse and waited outside. Several minutes later, the murder victim’s daughter exited the courthouse, escorted by a federal prosecutor. As they approached the street, Tiera Hight walked directly towards the pair and she and Maurice Hight began to circle them. Tiera Hight then began to spit on the murder victim’s daughter and physically attacked her. The federal prosecutor intervened, but Tiera Hight continued her attack. Maurice Hight then joined the fight, forcibly grabbing the federal prosecutor, pulling her down and punching her in the right side of the face with a closed fist. The federal prosecutor fell hard to the ground and sustained swelling and bruises to her face and arm. Two deputy U.S. Marshals in the area placed Maurice Hight under arrest, and Maurice Hight proceeded to spit in the face of one of the deputy U.S. Marshals.
“Our criminal justice system cannot tolerate violence against crime victims or those entrusted with enforcing our laws,” said Assistant Attorney General Benczkowski. “Today’s guilty pleas reinforce the Department of Justice’s steadfast commitment to prosecuting anyone who engages in vindictive attacks against victims of crime or federal officials.”
The Hights will be sentenced on Dec. 18 before Senior U.S. District Judge Paul L. Friedman of the District of Columbia.
The Criminal Investigations and Intelligence Unit for the U.S. Attorney’s Office for the District of Columbia investigated this case. Trial Attorneys Jennifer A. Clarke and Lauren Bell of the Criminal Division’s Public Integrity Section are prosecuting the case.
Two Fort Gibson Individuals Sentenced for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremy Moore, age 41, of Fort Gibson, Oklahoma, was sentenced to 235 months imprisonment and 5 years supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A); and Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2.
Rose Marie Myers, age 40 and also from Fort Gibson, was charged in the same indictment as Moore and sentenced to 130 months imprisonment and 5 years supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A); Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2; and Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
The charges against Moore and Myers arose from an investigation by the Drug Enforcement Administration (“DEA”) and the Oklahoma Bureau of Narcotics and Dangerous Drugs (“OBN”), as well as the Bureau of Alcohol Tobacco, Firearms and Explosives (“ATF”), the U.S. Marshal Service (“USMS”), the Muskogee Police Department (“MPD”), and the Muskogee County Sheriff’s Office (“MCSO”).
The Indictment alleged that beginning in or about June 2016, and continuing until the date of the indictment, within the Eastern District of Oklahoma and elsewhere, the defendants, willfully and knowingly conspired and agreed to commit the offenses against the United States of possession with intent to distribute and distribution of 50 grams or more of methamphetamine. It further alleged than on or about May 25, 2017 the defendants knowingly and intentionally possessed with intent to distribute 50 grams or more of Methamphetamine, a Schedule II controlled substance.
The Indictment additionally alleged that on or about May 25, 2017, in the Eastern District of Oklahoma, Myers knowingly possessed a firearm – a loaded RG .38 revolver – in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine.
United States Attorney Brian J. Kuester said, “The investigation and prosecution of Moore and Myers is a win for the communities in Eastern Oklahoma. If this duo had continued to carry out the plans of its conspiracy, thousands upon thousands more dosage units of Methamphetamine would have flowed into cities and towns in the Eastern District of Oklahoma and beyond. This office successfully prosecuted these defendants because of the ongoing joint cooperative efforts by the DEA, OBN, ATF, USMS, MPD, MCSO, and members of the United States Attorney’s Office.”
DEA Assistant Special Agent in Charge Richard W. Salter Jr. added, “This year-long investigation targeted an element of the United Aryan Brotherhood (UAB) prison gang, and further exposed how violent prison gang networks continue to operate with impunity from behind State Prison Walls using contraband cell phones. The combined efforts of the Muskogee PD, Muskogee County Sheriff’s Office, the U.S. Marshal, ATF, OBN, and the DEA, working in concert with the Eastern District U.S. Attorney’s Office proved successful once again in taking down yet another significant methamphetamine distribution cell operating in Eastern Oklahoma. The DEA will not relent in our efforts until our families and communities are free from this destructive poison.”
OBN Director John Scully stated, “For the Oklahoma Bureau of Narcotics, it is such an honor to work in collaboration with the U.S. Attorney’s Office for the Eastern District of Oklahoma and our other Law Enforcement partners. This collaborative effort is a great example of on-going police investigations that successfully disrupts and dismantles dangerous criminal enterprises such as this. With Defendants Moore and Myers off the streets, our communities will be safer for our children and all our citizens.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Assistant United States Attorney Kristin Harrington represented the United States. The defendants will remain in custody pending transportation to the designated federal facilities at which the non-paroleable sentences will be served.
Twenty White County Defendants Charged with Wire Fraud for Unemployment Benefits SchemeRead the Press Release
LITTLE ROCK— Twenty defendants from White County have been charged in a conspiracy to commit wire fraud by allegedly obtaining unemployment insurance benefits to which they were not entitled in Arkansas and 15 other states.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Steven Grell, Special Agent-in-Charge, Dallas Region, U.S. Department of Labor Office of Inspector General, announced today the unsealing of an indictment returned by a federal grand jury charging the 20 defendants, including Mark King, aka “Big Head,” the alleged ringleader of the conspiracy. On Wednesday, King, 53, of Judsonia, and two other defendants (Alan Gentry and Benjamin Bradley) were arrested. Also, Natalie Floyd was already in federal prison, and Mark Scheffler was in the Arkansas Department of Corrections, both on unrelated charges.
Those arrested today will be seen Thursday by United States Magistrate Judge Beth Deere for plea and arraignment. The remaining defendants will be served with a summons to appear in federal court at a later date.
“Our office is committed to protecting the integrity of important federal programs,” U.S. Attorney Hiland said. “We will continue to work with the Office of Inspector General to investigate and prosecute anyone attempting to take advantage of these programs, which ultimately hurts taxpayers and those who truly need assistance.”
The charge stems from an investigation by the United States Department of Labor, in collaboration with the United States Attorney’s Office for the Eastern District of Arkansas, that began in the spring of 2016. Local law enforcement in the White County area also assisted in the effort.
The indictment alleges that the wire fraud conspiracy took place from June 2012 through August 2017. According to the indictment, King created employer business accounts in 16 states, including Arkansas, using fictitious business names. These fictitious businesses all had addresses in Arkansas. King then falsely reported to the various state unemployment agencies in these 16 states that the fictitious companies had paid wages to him and the other indicted and unindicted co-conspirators for work performed, when, in fact, that was not true. In turn, King and the other co-conspirators and unindicted co-conspirators then made claims for unemployment benefits and, because King did not contest the unemployment benefits on behalf of the fictitious businesses, these conspirators were paid by the Department of Labor.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the U.S. Department of Labor’s Unemployment Insurance programs,” Special Agent-in-Charge Grell said. “We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers,”
The indictment alleges that some of the co-conspirators claimed unemployment benefits while incarcerated, contrary to the eligibility requirement that a claimant must be available for work and actively seeking employment. The conspiracy resulted in a monetary loss exceeding $500,000.
The maximum statutory penalty for the charge is up to 20 years’ imprisonment, a fine of not more than $250,000, and supervised release of not more than three years.
The case is being investigated by the Department of Labor, Office of Inspector General, with assistance from the White County Sheriff’s Office, the Judsonia Police Department, the Searcy Police Department, and the Bald Knob Police Department. It is being prosecuted by Assistant United States Attorney Angela Jegley.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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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: @EDARNEWSTangipahoa Man Sentenced to Prison for His Role in Stolen Identity Refund Fraud SchemeRead the Press Release
NEW ORLEANS – A Tangipahoa Parish man was sentenced to 50 months in prison for conspiring to defraud the United States, Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana announced today.
According to the indictment, AARON DANIELS conspired with others to defraud the United States by submitting false tax returns that requested tax refunds. DANIELS obtained the names and social security numbers of people he was incarcerated with in the East Carroll Detention Center and provided that information to his co-conspirators to use to file false tax returns. In exchange for providing names and social security numbers, DANIELS was paid by his co-conspirators.
In addition to the term of imprisonment, United States District Court Judge Martin L.C. Feldman ordered DANIELS to serve three years of supervised release, and pay $11,584, in restitution to the IRS.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Strasser commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Syracuse Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Martin Nicholson, age 31, of Syracuse, New York was arrested and charged today with one count of Sexual Exploitation of a Child and one count of Receipt of Child Pornography, announced United States Attorney Grant C. Jaquith, James Hendricks, Special Agent in Charge of the of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent George P. Beach II.
Nicholson was arrested today and appeared in federal court in Syracuse. He was ordered held without bail pending a hearing on October 15, 2018.
Martin Nicholson is charged with Sexual Exploitation of a Child, which carries a minimum sentence of 15 years and a maximum sentence of 30 years in prison. He is also charged with Receipt of Child Pornography, which carries a minimum sentence of 5 years and a maximum sentence of 20 years in prison. The defendant could also be fined up to $250,000.00 on each count and can be sentenced to a minimum of 5 years and up to life a life term of Supervised Release. Additionally, the defendant will be required to register as a Sex Offender, if convicted.
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.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Martin Nicholson was arrested yesterday on related New York State charges and was released after he posted bail.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Suspected Online Drug Dealer Indicted in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 10, 2018
SAN DIEGO – Suspected drug dealer Trevon Lucas was indicted by a federal grand jury for distributing fentanyl that caused the death of a La Jolla resident, identified only as C.A.S. in court filings.
According to statements made by prosecutors at his detention hearing yesterday, C.A.S. was found dead in his mother’s home on the morning of June 30, 2018. Evidence obtained from C.A.S.’s cellular phone and a parking lot surveillance camera indicate he met Lucas to purchase prescription oxycodone pills around 11:20 p.m. the night before his mother found his body. Law enforcement officials recovered counterfeit oxycodone pills that contained fentanyl from C.A.S.’s residence, and the medical examiner has since identified fentanyl intoxication as the cause of death.
Lucas and three other residents of the Highland / San Bernardino area—Cenclair Fields, Donovan Carter, and Kevin Chandler—were also indicted for their roles in an ongoing conspiracy to distribute pharmaceutical pills containing hydrocodone. Law enforcement officials have gathered evidence indicating that Lucas and Carter posted advertisements on a well-known website to illegally sell prescription pills.
“Fentanyl is claiming record numbers of victims, most of whom don’t even know they’re swallowing a pill that’s laced with the deadly drug,” said U.S. Attorney Adam Braverman. “Those who sell fentanyl resulting in death will be held accountable for their callous and reckless disregard for human life.”
“We’re seeing a dangerous trend of drug dealers and cartels cutting various drugs with fentanyl, which is a recipe for death,” said District Attorney Summer Stephan. “When you sell fentanyl to another human being, you are providing them with toxic poison that can kill them in a matter of seconds. Even a tiny amount of fentanyl can be deadly, which is why we’re working with our partners at the U.S. Attorney’s Office, and Drug Enforcement Administration to address this disturbing trend.”
“Unless you buy your prescription pills from a legitimate pharmacy, it’s very likely you’ll get fake prescription pills laced with deadly fentanyl,” said DEA Special Agent in Charge Karen Flowers. “Individuals seeking to make an easy buck are putting fentanyl into fake pills and passing them off as legitimate prescription medications. DEA and our law enforcement partners will continue to target and relentlessly pursue the individuals who are selling fake prescription pills laced with deadly fentanyl to citizens in our community.”
Lucas, Carter, Chandler, and Fields made their initial appearances in federal court Friday, October 5, before U.S. Magistrate Judge Barbara L. Major, followed by a detention hearing yesterday morning. Judge Major detained Lucas based on the seriousness of the charges against him, while setting bonds for Fields, Carter and Chandler. Their next hearing is scheduled for November 9, 2018 before U.S. District Judge Cathy Ann Bencivengo.
Lucas is the fifth person since January to be charged in the Southern District of California with Distribution of Fentanyl Resulting in Death. This case involved a collaborative effort between the United States Attorney’s Office and the San Diego County District Attorney’s Office.
DEFENDANTS Case Number 18cr4224-CAB
Trevon Antone Lucas Age: 23 Highland, CA
Cenclair Marie Fields Age: 23 Highland, CA
Kevin Vandale Chandler Age: 24 Highland, CA
Donovan Adontas Carter Age: 23 San Bernardino, CA
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum Penalty: Mandatory minimum 20 years’ imprisonment up to life
Conspiracy to Distribute and Possess with Intent to Distribute Hyrdrocodone – Title 21, U.S.C., Sections 846 and 841(a)(1) & (b)(1)(C)
Maximum Penalty: 20 years
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Stoughton Man Charged with Distributing FentanylRead the Press Release
BOSTON – A Stoughton man was indicted today in federal court in Boston for distributing fentanyl and crack cocaine.
Matthew Pizarro, 30, was indicted on one count of distribution of fentanyl, one count of distribution of 40 grams or more of fentanyl, and one count of possession with intent to distribute 28 grams or more of crack cocaine. Pizarro was arrested in August 2018 on a criminal complaint and has been in custody since.
According to court documents, on July 30, 2018, Pizarro sold an undercover agent approximately 20 grams of fentanyl in exchange for $940. A few days later, Pizarro followed up with the undercover agent about purchasing more drugs. On Aug. 7, 2018, Pizarro sold the undercover agent 70 grams of fentanyl for $2,500. After the exchange, law enforcement arrested Pizarro.
The charges of distribution of 40 grams or more of fentanyl and possession with intent to distribute 28 grams or more of crack cocaine provide for a mandatory minimum sentence of five years and up to 40 years in prison, a mandatory minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. According to court documents, Pizarro has a prior drug conviction; therefore, he faces a mandatory minimum sentence of 10 years and up to life in prison, at least eight years and up to a lifetime of supervised release, and a fine of up to $8 million. 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; Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Paul, Minnesota Man Sentenced to 10 Years in Prison for Using the Internet to Induce A Fresno Minor to Engage in Sexual ActivityRead the Press Release
FRESNO, Calif. — John Baker Rose, 77, of St. Paul, Minnesota, was sentenced today by United States District Judge Dale A. Drozd to 10 years in prison, followed by a ten-year term of supervised release, for using the internet to induce a minor in Fresno, Calfiornia to engage in illegal sexual activity, United States Attorney McGregor W. Scott announced. The court also ordered that Rose pay the minor victim $25,000 in restitution.
According to court documents, from approximately September 2015 through November 2015, Rose met a 14-year-old minor female from Fresno online and groomed her through buying her a computer, jewelry, and clothing. Rose traveled to Fresno on two occasions to engage in sexual intercourse with her.
This case was the product of an extensive investigation by the Fresno Office of Homeland Security Investigations (HSI), St. Paul, Minnesota and Fresno Police Departments. Assistant United States Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Software Company Owner Collected Payroll Taxes, then Failed to Pay Them over to the IRSRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania pleaded guilty in federal court to charges of willfully failing to pay over payroll taxes, United States Attorney Scott W. Brady announced today.
Amarender Tiparthy, 50, of Coraopolis, pleaded guilty to four felony counts before Senior United States District Judge Donetta Ambrose.
In connection with the guilty plea, the court was advised that Tiparthy willfully failed to account for and pay over payroll taxes totaling $2,285,807.70, including all relevant conduct, for the sixteen tax quarters in 2010 through 2013.
According to information provided during the guilty plea hearing, Tiparthy was the sole owner of Prodigy Software Group, Inc. ("Prodigy"), a Subchapter S business that provided companies and governmental entities with consulting services regarding information technology projects. The business model of Prodigy included the employment of individuals who then were assigned to various information technology projects pursuant to contracts negotiated and entered into by Tiparthy on behalf of Prodigy. Although Tiparthy collected payroll taxes for the sixteen tax quarters in 2010 through 2013, he failed to truthfully account for and pay over the taxes when due to the Internal Revenue Service.
Judge Ambrose scheduled sentencing for March 19, 2019 at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Tiparthy on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation, conducted the investigation leading to the conviction in this case.
Rockland County Man Charged with Manufacturing an Explosive Device and Transporting Explosives Across State LinesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that PAUL M. ROSENFELD has been charged in U.S. District Court for the Southern District of New York in connection with manufacturing an explosive device in his Rockland County residence. The defendant was presented before U.S. Magistrate Judge Paul E. Davison in White Plains federal court this afternoon.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Paul M. Rosenfeld concocted a twisted plan to draw attention to his political ideology by killing himself on the National Mall in Washington, D.C.—risking harm to many others in the process. Rosenfeld’s alleged plan for an Election Day detonation cut against our democratic principles. Thanks to outstanding coordination between local and federal law enforcement, Rosenfeld’s alleged plot was thwarted and he is now in federal custody.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “As alleged in the complaint, Paul M. Rosenfeld planned to detonate a large explosive to kill himself and draw attention to his radical political beliefs. Had he been successful, Rosenfeld’s alleged plot could have claimed the lives of innocent bystanders and caused untold destruction. Fortunately, his plans were thwarted by the quick action of a concerned citizen and the diligent work of a host of our law enforcement partners and the FBI’s Joint Terrorism Task Force. I’d like to extend particular thanks to our partners with the Orangetown Police Department, the Rockland County Sheriff’s Office, the Rockland County District Attorney, the New York State Police, the New York City Police Department, and the Stony Point Police Department for their respective roles in bring this investigation to a safe conclusion.”
As alleged in the Complaint:[[1]]
In August and September 2018, ROSENFELD sent letters and text messages to an individual in Pennsylvania (“Individual-1”). These letters and text messages stated that ROSENFELD planned to build an explosive device and detonate it on November 6, 2018, on the National Mall in Washington, D.C. ROSENFELD’s stated reason for these acts was to draw attention to his political belief in “sortition,” a political theory that advocates the random selection of government officials.
On October 9, 2018, law enforcement agent stopped a car driven by ROSENFELD. ROSENFELD agreed to answer questions and, in an interview with law enforcement, stated that he ordered large quantities of black powder—an explosive substance—over the Internet, which he transported from a location in New Jersey to his home in Tappan, New York (the “Residence”). ROSENFELD stated, among other things, that he used approximately eight pounds of black powder to construct a large explosive device in the basement of the Residence, and that he installed certain components in the explosive device to ensure that he was killed in the blast. ROSENFELD reported that he had previously constructed smaller explosive devices and had conducted test detonations. He also indicated that he planned to detonate the larger explosive device on November 6, 2018, on the National Mall in Washington, D.C. in order to draw attention to sortition.
On October 9, 2018, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. In the basement, law enforcement agents found what appeared to be a functional explosive device weighing approximately 200 pounds (the “Explosive Device”). FBI bomb technicians removed the Explosive Device from the basement of the Residence and transported it to a safe location. Within the Residence, law enforcement agents also found, among other things, a fusing system for triggering explosive devices and what appeared to be empty canisters of black powder.
* * *
PAUL M. ROSENFELD, 56, of Tappan, New York, has been charged with one count of unlawfully manufacturing a destructive device, which carries a maximum sentence of 10 years in prison, and one count of interstate transportation and receipt of an explosive, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents of the FBI and detectives of the New York City Police Department. Mr. Berman also thanked the Rockland County Sheriff’s Office, the Stony Point Police Department, the Rockland County District Attorney’s Office, New York State Police, and the Orangetown Police Department for their valuable assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Michael K. Krouse is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Rochester Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Dennis Chaney, 31, of Rochester, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 12, 2018, Chaney intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 200 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed Chaney’s vehicle arrive. They then followed the vehicle toward New Hampshire and passed the license plate and their observations on to the New Hampshire State Police. A trooper observed the vehicle and stopped the vehicle for traffic violations. The trooper subsequently used his drug detection dog who alerted to Chaney’s vehicle. A search warrant subsequently was executed on the vehicle, which resulted in the discovery of approximately 225 grams of fentanyl.
On March 14, 2018, Chaney telephoned his source in Lawrence, Massachusetts and ordered an additional 100 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed Chaney’s vehicle arrive. They then followed the vehicle toward New Hampshire and passed the license plate and their observations on to the New Hampshire State Police. A trooper observed the vehicle and stopped the vehicle for traffic violations. The trooper subsequently used his drug detection dog who alerted to Chaney’s vehicle. A subsequent search of the vehicle resulted in the seizure of approximately 98 grams of fentanyl.
During the investigation, Chaney ordered and purchased approximately 845 grams of fentanyl.
Chaney is scheduled to be sentenced on January 22, 2019.
“This case is an example of the way that the law enforcement community is working together to stop the flow of fentanyl into the Granite State,” said U.S. Attorney Murray. “Those who chose to distribute this deadly drug should understand that they will be arrested and prosecuted. We will continue to use all resources at our disposal to protect the public from those who choose to bring fentanyl into New Hampshire.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Resident of Quechee, Vermont Sentenced for Filing False Tax ReturnsRead the Press Release
CONCORD - Kurt Devoid, 60, of Quechee, Vermont, was sentenced to three years of probation, including six months of home confinement, for filing false income tax returns, announced United States Attorney Scott W. Murray.
According to court documents, Devoid is a self-employed painter. Devoid’s personal federal income tax returns for tax years 2010 through 2013 were prepared by a commercial tax preparation office in Lebanon, New Hampshire. On the returns, Devoid reported income he received from commercial customers of his painting business, but failed to report substantial income he received from his residential customers. Devoid’s failure to report the true amount of his personal income during the four year period caused a tax loss of $98,482 to the United States Treasury.
DeVoid, who previously pled guilty on May 10, 2018, also was ordered to pay $98,482 in restitution.
“The federal tax laws apply to all citizens,” said U.S. Attorney Murray. “Those who choose to submit false tax returns should understand that they will be caught by the IRS and will be referred for prosecution. The potential penalties for tax evasion far outweigh any personal advantage anticipated by those who seek to avoid paying.”
“Self-employed individuals like Mr. Devoid have a legal obligation to honestly report their income and timely pay their taxes,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. “Those who willfully file false tax returns underreporting their taxable income and taxes owed steal from the public and damage our nation’s system of taxation. Violators will be prosecuted, punished, and obligated to repay their taxes along with substantial penalties and interest.”
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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Queens Man Indicted for Strangling A Woman on Cruise ShipRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the Indictment of CARLOS BATISTA JR., charging him with strangling and suffocating the woman he was dating.
U.S. Attorney Geoffrey S. Berman said: As alleged, Carlos Batista Jr. assaulted his girlfriend while on a cruise, grabbing and choking her until she passed out. Thankfully others on the ship came to her aid. Now Batista is back on New York soil and must answer for his alleged criminal actions.”
According to the allegations in the Indictment and the Complaint[1]:
As alleged in the criminal Complaint and the Indictment, following a dispute on September 8, 2018, with his girlfriend, BATISTA grabbed, dragged, pushed, and pulled the victim through the hallways of the cruise ship. When the victim screamed for help, BATISTA covered her mouth and restricted her breathing, at one point causing the victim’s body to go limp. Ultimately, BATISTA dragged the victim into his cabin and continued to assault her until others on the ship, who responded to the screaming, were able to open BATISTA’s cabin door where they found BATISTA with his arm around the victim’s neck.
* * *
BATISTA, 22, of Elmhurst, New York, has been charged with one count of assault of a spouse, intimate partner, or dating partner by strangling or suffocating, which carries a maximum sentence of 10 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Ryan B. Finkel and Mathew Hellman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Previously Deported Dominican National Pleads Guilty to Identity Theft, Health Care and Welfare Fraud, Misuse of Social Security Numbers and Illegal ReentryRead the Press Release
PROVIDENCE, RI – A previously deported Dominican national pleaded guilty in U.S. District Court in Providence today to charges that he reentered the country illegally, and then used the identities and Social Security numbers of others without their knowledge to fraudulently obtain health care and welfare benefits.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Carlos José Portes-Ortiz, 38, of Pawtucket, pleaded guilty to health care fraud, welfare (SNAP) fraud, misuse of Social Security numbers, aggravated identity theft, and illegal reentry.
Portes-Ortiz was among more than 600 individuals in 58 districts charged last spring and summer by the Department of Justice and United States Attorney’s Offices for their participation in fraud schemes, particularly health care and welfare fraud schemes.
Portes-Ortiz, a.k.a. Juan Carlos Mendieta Vega, a.k.a. Anthony Clausell Rivera, a.k.a. Jose Jimenez Agosto, a.k.a. Willian Acevedo Gil, a.k.a. Allison Gabriel, was deported from the United States in February 2009, after having been sentenced in June 2007 to 37 months in federal prison for conspiracy to import 100 grams or more of heroin and 500 grams or more of cocaine. Portes-Ortiz was arrested in June 2005 at Newark Liberty International Airport after arriving from the Dominican Republic.
According to information presented to the Court, in November 2015, Providence Police responded to a traffic accident and encountered Portes-Ortiz, who presented officers with a Dominican driver’s license in the name of another person. He was arrested on charges of driving under the influence and driving after denial, suspension or revocation of a driver’s license.
In March 2017, Portes-Ortiz was arrested in Dedham, MA, after attempting to purchase over $1,000 worth of iPhone and iPad equipment using a driver’s license depicting his photograph and a credit card both in the name of a female. At the time of his arrest, Portes-Ortiz was found to be in possession of a Rhode Island Neighborhood Health Plan card, a Rhode Island EBT card for SNAP benefits, a Rhode Island identification card, a Puerto Rican driver’s license and a bank debit card, some depicting his photograph but all in names other than his own. It was later determined through fingerprints that the person arrested was actually Portes-Ortiz.
An expansive investigation led by local agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations determined that Portes-Ortiz used multiple names and stolen personal identifying information to gain Rhode Island ID cards; Medicaid and health care benefits, including medical, pharmaceutical and dental services; and EBT cards and SNAP benefits.
The investigation also determined that Portes-Ortiz was employed at a retail store while, at the same time, fraudulently obtaining federal program benefits and services using stolen identities and identifying information.
Portes-Ortiz, detained in federal custody since his arrest on June 27, 2018, is scheduled to be sentenced on January 10, 2019.
Portes-Ortiz’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General; Rebecca J. Adducci, Interim Field Office Director for ICE Enforcement & Removal Operations; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and Bethanne M. Dinkins, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys Ly T. Chin and Terrence P. Donnelly.
The matter was investigated by agents from the U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations; Homeland Security Investigations - Immigration and Custom Enforcement; U.S. Social Security Administration, Office of Inspector General; and U.S. Department of Agriculture, Office of Inspector General.
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Pharmacist Who Owned and Operated a Baltimore Pharmacy Pleads Guilty to Federal Drug Distribution Conspiracy Charges Involving Fraudulent Prescriptions for Oxycodone and AlprazolamRead the Press Release
Baltimore, Maryland – David Robinson, age 49, of Baltimore, Maryland, pleaded guilty today to a drug conspiracy involving the distribution of oxycodone and alprazolam. Robinson, a licensed pharmacist who owned and operated the Frankford Family Pharmacy, admitted that he dispensed oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Interim Commissioner Gary Tuggle of the Baltimore Police Department.
“Pharmacists who divert pharmaceutical drugs for illegal purposes betray the trust placed in them and further the tragic cycle of addiction and the epidemic of opioid overdose deaths,” said U.S. Attorney Robert K. Hur. “Abuse of pharmaceutical drugs is one of our most significant drug enforcement challenges.”
According to Robinson’s plea agreement, a confidential source advised law enforcement that the pharmacist at Frankford Family Pharmacy knowingly filled fraudulent prescriptions for alprazolam and oxycodone at the pharmacy. During the DEA’s investigation, between January and July 2016, the confidential source made a number of controlled purchases from Robinson at the pharmacy, using blank prescriptions provided to the source by DEA. Robinson knew that the prescriptions were fraudulent because he told the source what name to use on the prescription and what quantity of oxycodone tablets to write on the prescriptions. Robinson also told the source to include non-controlled medications on the same prescriptions in order to evade law enforcement. Between April 2015 and June 2017, Robinson fraudulently distributed approximately 12,330 units of alprazolam, with a street value of $2 per milligram, and 10,000 milligrams of oxycodone, with a street value of $1 per milligram.
DEA investigators also learned that during Robinson’s tenure as a pharmacist working the night shift at a pharmacy in Waldorf, Maryland, Robinson also filled fraudulent prescriptions for oxycodone. Robinson admitted that he wrote prescriptions using the names of prominent athletes provided to him as the purported patients. Between September and December 2015, Robinson admitted that he dispensed at least 85,500 milligrams of oxycodone outside the scope of professional practice and not for a legitimate medical purpose.
Search warrants were obtained for Robinson’s residence, for the Frankford Family Pharmacy, for his vehicle, and for a safe deposit box rented by Robinson. Law enforcement recovered $159,862 in cash from Robinson’s home; $46,927 in a briefcase, blank prescriptions, a prescription pad, and a loaded 9mm pistol from Robinson’s car; and $60,486 in cash, an AR-15 rifle with a magazine, several boxes of ammunition for the rifle, and records, invoices, and receipts from the pharmacy. In addition, law enforcement recovered $25,041 in cash, $4,500 in gold coins, and $1,010 in silver coins from a safe deposit box.
Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to 51 months in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for February 25, 2019 at 2:00 p.m.
In a separate case, licensed pharmacist Richard Daniel Hiller, age 64, of Owings Mills, Maryland, pleaded guilty on August 24, 2018, to distributing oxycodone in exchange for sexual favors. In that case, Hiller admitted that between January 2014 and February 2017, he filled fraudulent prescriptions, distributing approximately 20,500 15 milligram oxycodone pills. Hiller faces a maximum sentence of 20 years in prison at his sentencing on November 15, 2018, at 10:00 a.m., before U.S. District Judge Ellen L. Hollander.
The Robinson case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
Pennsylvania man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Washington, Jr., of Glenolden, Pennsylvania, was sentenced today to 63 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Washington, age 30, pled guilty to one count of “Distribution of Oxycodone” in July 2018. Washington admitted to selling oxycodone in Ohio County in February 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp., Jr. presided.
Pee Dee Re-Entry Job Fair & ExpoRead the Press Release
Myrtle Beach, South Carolina ----–The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Department of Employment and Workforce; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Third Annual Pee Dee Reentry Job Fair & Expo will be held on Wednesday, October 24, 2018, from 10:00 am to 1:00 pm at the Horry Georgetown Technical College Conference and Business Center, located at 950 Crabtree Lane, Myrtle Beach, SC 29577
This fair, which targets the Pee Dee region of the State, is one in a series of fairs held annually, including in the Low Country, the Upstate, and the Midlands. The partner organizations believe that these tailored expos, for people with a criminal background, will provide some focused help for the particular obstacles individuals face after returning home, particularly in securing employment.
The first two Pee Dee Reentry Job Fairs were hosted in Florence, South Carolina where more than 500 job seekers attended over the two years, combined. The opportunity to host this year’s fair in Myrtle Beach will expand the availability of resources to new employers and job seekers alike.
Professional dress is required. Job seekers should inquire with Marcos Barahona of the US Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258 or [email protected] if they have any questions about the event. Employers should contact Kimberly Burke at [email protected] or make inquiry at [email protected].
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Pedro Silva Segura Sentenced to Federal Prison for Conspiracy to Transport Undocumented Aliens Resulting in DeathRead the Press Release
In San Antonio today, Senior U.S. District Judge David A. Ezra sentenced 47–year-old Pedro Silva Segura to 108 months in federal prison followed by five years of supervised release for his role in an undocumented alien smuggling operation that resulted in ten deaths last year, announced U.S. Attorney John F. Bash and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
“Today’s lengthy sentence is a reminder that the penalties are very severe for anyone who participates in the dangerous business of illegally transporting human beings in tractor trailers. Time and again, we have seen this practice result in the loss of life of the most vulnerable among us. We will be relentless in prosecuting this very serious crime,” stated U.S. Attorney Bash.
“As this sentence makes clear, those who exploit people in this brutal and disgraceful way will face serious consequences themselves,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “Alien smugglers view their clients as nothing more than a commodity and they have no qualms about collecting their smuggling fees.”
On March 8, 2018, Silva pleaded guilty to one count of conspiracy to transport undocumented aliens resulting in death. By pleading guilty, Silva admitted to operating a stash house in Laredo, TX, used as a holding area for undocumented aliens awaiting transportation to final destinations in the U.S. Silva further admitted that approximately five undocumented aliens left the stash house on the night of July 22, 2017, and were delivered to a truck driven by James Matthew Bradley, Jr., that was bound for San Antonio.
According to court records, which Silva and Bradley admitted in court were factually correct, San Antonio Police Department (SAPD) officers responded to a call at the Wal-Mart store located at 8538 Interstate 35 in San Antonio shortly after midnight on Sunday, July 23, 2017. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. At the scene, law enforcement officers discovered 39 undocumented aliens. Of the 39 aliens found at the scene ten (10) died, eight (8) died in the trailer and two (2) died later in area hospitals. There were four juveniles, aged 14-17 years old, within the group of aliens in Bradley’s trailer who were unaccompanied by an adult. Court records further state that the undocumented aliens estimated the trailer contained between 70 and 180 to 200 people during transport. They also described differing fees for being transported.
On October 16, 2017, Bradley pleaded guilty to federal charges in connection with this investigation. On April 20, 2018, Judge Ezra sentenced Bradley to life imprisonment.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated this case together with ICE Enforcement and Removal Operations (ERO), the San Antonio Police Department and the San Antonio Fire Department. The Bexar County Sheriff’s Office and the U.S. Customs and Border Protection’s Border Patrol assisted in this investigation. Assistant United States Attorneys Christina Playton and Matthew Lathrop prosecuted this case on behalf of the Government.
Project Safe Neighborhoods 2.0Read the Press Release
The Attorney General announces the anniversary of the launch of PSN 2.0
PRESS RELEASE
Indianapolis–Josh J. Minkler, the United States Attorney, announced the Attorney General’s renewed commitment and dedication to stemming the gun violence epidemic through the launch of Project Safe Neighborhoods 2.0 (PSN).
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the more effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
In the Southern District of Indiana, the Justice Department’s commitment has yielded strong and continued partnerships across law enforcement and newly cultivated relationships with non-traditional partners aimed at recognizing the district’s violent crime challenges and taking action steps to reduce the number of non-fatal shooting victims.
United States Attorney Minkler and a team of criminal Assistant United States Attorneys led by Deputy Chiefs of the Criminal Division Barry Glickman and Todd Shellenbarger have demonstrated steeled determination to target the district’s most violent, habitual gun-toting felons for federal prosecution. This renewed focus has yielded 180 federal PSN cases investigated in large part by the Bureau of Alcohol Tobacco and Firearms, Indianapolis Metropolitan Police Department, Marion County Sheriff’s Department, Evansville Police Department, and the Indiana State Police. Recently, the Federal Bureau of Investigation created a new group comprised of one special agent and three task force officers to complement the district’s PSN work and augment resources devoted to gun violence victims and important PSN investigations.
In addition to increased number of criminal prosecutions, the Department awarded in excess of $2 million in grant funds to agencies and organizations within the district whose focus is aligned with PSN:
Date
Recipient
Amount
Grant Focus
09/24/18
Indianapolis Metropolitan Police Department
$798,000
Crime Gun Intelligence Center
10/1/18
City of Indianapolis
Mayor Joseph Hogsett
$456,891
PSN
10/1/18
John H. Boner Community Center
CEO James Taylor
$999,913
Community-Based Crime Reduction Program (CBCR)
10/2/18
Indiana Criminal Justice Institute Executive Director David Murtaugh
$421,952
PSN
10/4/18
Marion County Prosecutor’s Office
$277,968
National Integrated Ballistics Information Network Focus
United States Attorney Minkler’s efforts including conceptualizing a PSN Strategic Plan and a non-traditional outreach portfolio have been recognized nationally and locally, culminating in a national nomination of the district’s PSN Task Force efforts.
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Owners of currency exchange business that made $600 million convicted of fraudRead the Press Release
ATLANTA – The co-owners and chief operating officer of one of the largest Iraqi dinar exchangers in the United States were convicted by a federal jury following a five-week trial. Tyson Rhame, James Shaw, and Frank Bell were each convicted of mail and wire fraud conspiracy, as well as multiple counts of mail and wire fraud. Rhame and Bell were also convicted of making false statements to federal law enforcement agents.
“These executives engaged in a lengthy campaign to defraud investors by spreading lies about the investment potential of the Iraqi dinar,” said Acting U.S. Attorney Kurt R. Erskine. “These convictions resulted from years of investigation, which included dozens of electronic and physical search warrants, hundreds of witness interviews, and extensive financial analysis.”
“The conviction of these three defendants is the result of an extensive effort by the government to protect investors from those who make unsubstantiated claims about the potential revaluation of a foreign currency,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their greed led them to steal the hopes of unsuspecting investors and ultimately led them to their demise. The FBI and its partners make it a priority to root out and punish anyone who preys on investors for their own selfish desires.”
“This was a trial about fraudulent inducements, conspiracy, investment fraud and outright greed,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “Rhame, Shaw, and Bell saw an opportunity to build their personal net worth and business position in the currency market by seizing on investors’ desire for high returns on their investments. At the end of the trial, the jury agreed with the government and found the Sterling Currency Group co-owners and chief operating officer guilty of the conspiracy and the underlying frauds. Despite the challenges these complex cases present, IRS-CI is committed to working with our partners at the FBI, and the U.S. Attorney’s Office to show white-collar fraud is still an investigative priority.”
According to Acting U.S Attorney Erskine, the charges, and other information presented in court: Rhame and Shaw owned and operated the Sterling Currency Group, which was once one of the country’s largest sellers of the Iraqi dinar. Bell was Sterling’s chief operating officer. Between 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies, while Rhame and Shaw received over $180 million in distributions.
The evidence at trial established that the defendants took steps to make investors believe they would get rich by investing in the Iraqi dinar. At one point, Rhame posted information on Sterling’s website falsely suggesting that the dinar was about to revalue. At other times, Rhame and Bell falsely claimed that Sterling would cash out investors at airports around the country following a dinar “revaluation.” The defendants also paid substantial sums of money to third parties who in turn spread false information about the dinar on conference calls and Internet chat rooms.
Tyson Rhame, 53, and James Shaw, 55, both of Atlanta, Georgia, and Frank Bell, 55, of Decatur, Georgia, were convicted of conspiracy to commit mail and wire fraud and multiple mail and wire fraud counts. Rhame and Bell were also convicted of making false statements to federal agents regarding Sterling’s operations. The jury acquitted the defendants of money laundering charges. A fourth defendant, Terrence Keller, was acquitted of all charges at trial.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Thomas J. Krepp, Alison B. Prout, and Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime Section are prosecuting the case. Assistant U.S. Attorneys Kelly K. Connors and Dahil D. Goss are handling the parallel civil forfeiture actions related to this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Oakland Gang Members Sentenced to Prison for Racketeering Conspiracy and Use of Firearm to Commit MurderRead the Press Release
OAKLAND – Two members of the West Oakland gang, Acorn, were sentenced for their respective roles in a criminal racketeering conspiracy, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Phyllis J. Hamilton, Chief United States District Judge, today sentenced Jermaine Earnest, a/k/a “Acorn Maine,” to 37 years in prison, following a guilty plea entered by the defendant on May 2, 2018. The Honorable Phyllis J. Hamilton previously sentenced John Devalier Daniels, a/k/a “Lil Jon,” to 14 years in prison on September 5, 2018, following a guilty plea entered by the defendant on May 7, 2018. Both defendants admitted being involved with murder, robbery, and distribution of controlled substances.
According to his plea agreement, Earnest, 28, of Oakland, admitted that he became involved with the Acorn gang in or about 2006. He acknowledged that he agreed to participate in the Acorn gang’s activities to help achieve its objectives, including shooting members of rival gangs. Among the crimes Earnest committed for Acorn was a shooting that occurred on April 16, 2014. Earnest admitted that on the morning of April 16, he carried a gun and rode in a car with other Acorn members to a rival gang’s neighborhood. When Earnest saw a man he believed was a rival gang member, he fired several shots at the victim who died as a result of his injuries.
A federal grand jury indicted Earnest on October 16, 2014, for illegal gun possession in September 2014, a superseding indictment was subsequently filed on June 18, 2015, adding additional charges related to the April 16, 2014 shooting, and a second superseding indictment was filed on January 25, 2018. On May 2, 2018, Earnest pleaded guilty to the following charges from the second superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
Daniels, 31, of Oakland, also admitted he was a member of the Acorn gang. Daniels admitted he was a member of the Acorn gang and was the driver of the rental vehicle used in the April 16, 2014 drive-by shooting to which Earnest admitted. Daniels also admitted he was engaged in narcotics trafficking and robbery as part of his support for the Acorn gang.
Daniels was named as a defendant in the June 18, 2015 superseding indictment, and the January 25, 2018, second superseding indictment. On May 7, 2018, Daniels pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), in the second superseding indictment.
In addition to the prison terms, Chief District Judge Hamilton also ordered each of the defendants to serve five years of supervised release.
The case is the result of an investigation by the FBI and the Oakland Police Department (OPD).