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Wednesday 29 August 2018
Federal Jury Convicts New Bern Man on Federal Drug and Firearms ChargesRead the Press Release
ELIZABETH CITY – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that, DAMIEN LAMONTE BROWN, a/k/a “Dame,” 36, of New Bern, NC, was convicted in federal court following a two day jury trial before United States District Judge Terrence W. Boyle. The jury found BROWN guilty of conspiracy to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession of a firearm and ammunition by a felon, and possession with intent to distribute one hundred (100) grams or more of heroin.
The evidence presented at trial established that BROWN coordinated multi-kilogram shipments of heroin from New York to New Bern, and then established a network of individuals to transport, distribute, and sell that heroin to the community. The investigation resulted in the seizure of nearly 800 grams of heroin from one house, multiple firearms, and over $6,000 in cash.
At sentencing set for the November 12, 2018 term of court, BROWN faces not less than 10 years imprisonment and up to life imprisonment followed by 8 years of supervised release and up to an 8 million dollar fine.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was investigated by the New Bern Police Department, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Craven County Sheriff’s Office, Trent Woods Police Department, Jacksonville Police Department, and Bridgeton Police Department. Assistant United States Attorney Laura S. Howard prosecuted the case on behalf of the United States.
Federal Jury Convicts Man of Sex Trafficking Two Minor GirlsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man today for sex trafficking two minor girls, ages 14 and 16.
According to court records and evidence presented at trial, Steve Nowell, 64, was a frequent commercial sex customer of a prostitution ring led by Michael Gunn, who trafficked the two minor girls over the course of two years in the DMV area. Nowell was identified by the minor victims, and by two co-conspirators of Michael Gunn, as a regular commercial sex customer who paid one or both minors for sex on at least 23 occasions. After a search warrant was executed at Nowell’s home, law enforcement found hidden cameras that secretly recorded at least one of the minors and other females in various stages of undress while at his residence for prostitution. Law enforcement also found numerous photographs of one of the minors posing nude in his bathtub and throughout his house, including in his kitchen, on a bear rug, and on exercise equipment. In a recorded interview, Nowell admitted to paying for sex with one of the minors. He claimed he did not know her real age.
Michael Gunn was convicted by a federal jury in September 2017, and was sentenced to 30 years in prison in January 2018. Angel Gunn and Vanessa Dominguez, who assisted Michael Gunn in sex trafficking the minors, each pleaded guilty and were sentenced to 140 months and 120 months in prison, respectively.
Nowell faces a mandatory minimum of 10 years and a maximum penalty of life in prison when sentenced on November 30. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Barry M. Barnard, Chief of Prince William County Police, and M. Jay Farr, Arlington County Chief of Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Assistant U.S. Attorneys Maureen C. Cain and Kimberly R. Pedersen are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-188.
Federal Jury Convicts Founder of Wind Energy Company in Multi-Million Dollar Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of SHAWN ROBERT DOOLING, 52, for orchestrating a multi-million dollar wind energy fraud scheme. Following a six-day trial before U.S. District Judge Paul A. Magnuson, the jury found DOOLING guilty on all counts.
Assistant U.S. Attorney Surya Saxena said, “Mr. Dooling wanted to live a life of luxury without earning the money to pay for it, so he lied to and stole from people who trusted him, most of whom were hardworking farmers. Mr. Dooling will now be held accountable for his actions.”
“We are grateful for the work of the jury who deliberated this case and saw what we saw, and that was a scheme crafted by Mr. Dooling to defraud innocent and well intentioned investors of their hard earned money with the empty promise of energy efficiency that would never come to be,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI.
As proven at trial, in 2009, DOOLING founded Renewable Energy SD, LLC (“RESD”), a wind energy company headquartered in Excelsior, Minnesota. DOOLING, as the owner and president of RESD, marketed and sold wind turbines, as well as wind turbine installation and maintenance services, as a way for customers to save money by reducing or eliminating their energy expenses. RESD’s customers were predominantly farmers who owned and operated farms in Minnesota, Wisconsin, and Iowa. From approximately 2010 through 2013, DOOLING devised and executed a scheme to defraud his customers by falsely representing that for an agreed-upon contract price, RESD would build and maintain wind energy turbines on customers’ land. However, in reality, DOOLING spent his customers’ money on personal expenses and diverted their money to pay for other customers’ projects.
As part of the scheme, DOOLING told customers that he would send a portion of their money to a third-party manufacturer as a down payment to reserve a specific wind turbine. Then, when the wind turbine was completed and ready to be shipped, he would send the remaining portion of the money to the manufacturer to complete the purchase. DOOLING furthered his scheme by lying to customers about the status of their orders and told customers that RESD’s failure to deliver the wind turbines was due to manufacturer delays. As a result of his scheme, more than 70 customers paid a combined total of more than $13 million to DOOLING and his company and never received the promised wind turbines or a refund of their money. DOOLING withdrew approximately $2 million from RESD’s bank accounts over the course of the scheme for his personal use, including luxury automobile purchases, travel, and college tuition payments for his son.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Surya Saxena and Amber M. Brennan tried the case.
Defendant Information:
SHAWN ROBERT DOOLING, 52
Excelsior, Minn.
Convicted:
- Mail fraud, 3 counts
- Wire fraud, 1 count
- Engaging in a monetary transaction in criminally derived property, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Indictment Targets Inglewood-Based Street Gang that Used Strip Mall Storefront to Cook and Distribute Crack CocaineRead the Press Release
LOS ANGELES – Authorities have arrested 10 members and associates of an Inglewood-based street gang on federal narcotics-trafficking and firearms charges contained in a grand jury indictment that outlines how the defendants obtained cocaine, used a purported convenience store to convert it into crack cocaine, and distributed the drugs on the streets of Inglewood and South Los Angeles.
The indictment targets the leadership and key members of the 92 Osage Legend Crips (OLC), a violent street gang that allegedly manufactured and distributed crack cocaine from the “Stop and Shop Market” in a strip mall on South Prairie Avenue. After cooking and packaging the crack cocaine at the Stop and Shop, members of the drug-trafficking conspiracy allegedly delivered drugs to customers at various locations, including at a U.S. VETS office and the Social Security office in Inglewood.
Various defendants charged in this case, some of them previously convicted felons, allegedly possessed firearms in relation to their drug-trafficking activities. The street gang members and their associates “used violence and intimidation, including firearms, to maintain and expand their drug-dealing territory, to protect themselves, their drugs, and their drug proceeds from rival gangs and drug-dealing organizations, and to collect payment from drug customers,” according to the indictment.
The indictment charges 15 defendants, 10 of whom were arrested last night and this morning. Out of the remaining five defendants, one was already in state custody, and four are currently fugitives.
The 16-count indictment charges all 15 defendants in a conspiracy to manufacture, distribute, and possess with intent to distribute crack cocaine. The indictment also charges various defendants with maintaining a drug-involved premises; possession with intent to distribute, and distribution, of crack cocaine; possession of firearms in furtherance of a drug-trafficking crime; and felon in possession of firearms and ammunition.
“Street gangs use violence and intimidation as tools to control narcotics trafficking in their territory,” said United States Attorney Nick Hanna. “We are committed to making significant improvements in our communities by targeting gangs that bring the dual scourges of drugs and violence into neighborhoods.”
“This multi-year investigation began in partnership with the Inglewood Police Department following a spike in violence in the city involving the Osage Legend Crips and indications that the gang had evolved from a local street gang to an organized criminal enterprise,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our local partners will continue to target the most violent gangs whose members hijack Los Angeles neighborhoods in furtherance of their illegal narcotics sales and criminal interests.”
The lead defendants in the indictment – Glen Dwight Love, also known as “Big Luck,” 46, of Pasadena; Deshay Lewann King, also known as “Shay Bone,” 45, of South Los Angeles; and Wiley Venoy Ivory II, also known as “Slim,” 38, an Inglewood resident who was already in state custody on unrelated charges – ran the Stop and Shop, which from the exterior appeared to be a convenience store, but in reality was nothing more than a drug processing and storage facility. According to the indictment, several defendants “discussed attempting to make the shop look like an actual retail store and getting window signs to tell drug customers and co-conspirators when to avoid going into the shop.”
Various members of the conspiracy allegedly sold crack cocaine by driving in and around Inglewood, making stops at regular locations where street-level customers knew they could find dealers. Many of the gang’s narcotics sales were for small amounts, but the indictment discusses a series of larger transactions, some involving ounce quantities of crack cocaine. Intercepted communications during the investigation revealed members of the conspiracy discussing a transaction involving four kilograms of cocaine.
The defendants taken into custody since last night are scheduled to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If they were to be convicted, each of the defendants would face decades in federal prison. The conspiracy count alone carries a mandatory minimum sentence of 10 years in prison and a statutory maximum sentence of life without parole.
The investigation targeting the OLC was conducted by the Federal Bureau of Investigation and the Inglewood Police Department.
The case is being prosecuted by Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section.
D’Iberville Man Pleads Guilty to Drug and Firearm ChargesRead the Press Release
Gulfport, Miss – Dung Anh Nguyen, 35, of D’Iberville, entered a guilty plea today before U.S. District Judge Louis Guirola to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nguyen faces a maximum penalty of five years in prison for the drug charge and a minimum of 5 years for the firearm charge. He further faces fines up to $250,000 along with 3 years of supervised release. Sentencing is set for November 27, 2018, at 10:00 a.m.
After receiving a tip that drugs were being sold out of a D’Iberville home, Harrison County Coastal Narcotics Enforcement Team, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, served a search warrant on Nguyen’s home in March 2018. Agents found approximately 2 kilograms of marijuana, along with several loaded firearms, large capacity magazines, ammunition and a ballistic vest. Nguyen was previously convicted of conspiracy to possess with intent to distribute controlled substances in Texas and Harrison County courts.
The Harrison County Sheriff’s Department Coastal Narcotics Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is prosecuted by Assistant United States Attorney Annette Williams.
Dominican Republic National Apprehended at the Red Hook Ferry Dock Appears in Federal Court on Illegal Reentry ChargesRead the Press Release
St. Thomas, USVI – Ezequiel Rivera Gomez aka Francisco Mejia, 48, made his initial appearance before U.S. Magistrate Judge Ruth Miller after being arrested and charged with illegal reentry into the United States, United States Attorney Gretchen Shappert announced. The Magistrate Judge detained Gomez pending preliminary and detention hearings scheduled for August 31, 2018.
According to court documents, Customs and Border Protection officers encountered Gomez at the Red Hook dock where he arrived by ferry boat from St. John. He was previously removed from the United States on March 1, 2016, after having been convicted of a controlled substance offense.
Under federal law Fernandez faces a maximum sentence of 10 years in prison and a $250,000 fine.
United States Attorney Shappert reminds the public that every defendant is presumed innocent until and unless proven guilty.
This case is being investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Doctor Sentenced for Running Pill MillRead the Press Release
DAYTON – David Kirkwood, 62, of Dayton, was sentenced in U.S. District Court today to 70 months in prison and five years of supervised release for running a pill mill in Dayton.
In August 2017, Kirkwood and his wife, Beverly Kirkwood, pleaded guilty to health care fraud. David Kirkwood also pleaded guilty to one count of unlawful drug trafficking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG) Chicago Region and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) announced the sentence imposed today by U.S. District Judge Walter H. Rice.
According to court documents, David Kirkwood owned and operated Kirkwood Family Practice in Dayton beginning in 1986.
David Kirkwood distributed nearly 4,000 units of Oxycodone outside the scope of medical practice and not for a legitimate medical purpose. All of these units were paid for by Medicare or Medicaid.
The doctor often used the same billing code for his customers regardless of the service performed, and would accept health care insurance payments for examinations that were not medically appropriate or sufficient for the billing codes submitted. Those bills were submitted on behalf of the practice and with the assistance of Beverly Kirkwood, who has been sentenced to six months in prison.
According to the indictment, David Kirkwood saw up to 100 patients per day, charging $100 per office visit.
“David Kirkwood’s method of distribution was the prescription pad, but make no mistake: he was a drug dealer,” said U.S. Attorney Glassman. “His prescriptions exposed his ‘patients’ to the risk of overdose and encouraged their addiction.”
“Our mission is to protect Ohio’s families, and we’ve made cracking down on pill mills a priority,” said Ohio Attorney General Mike DeWine. “David Kirkwood prescribed pills that never should have been prescribed and put his own interests above the health and safety of his patients.”
“Ensuring the appropriate use and prescribing of opioids is essential to protecting the health and safety of patients and the integrity of the Medicare and Medicaid programs”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Dr. Kirkwood’s actions were reckless and criminal and are reflective of a mindset that was polluted by greed. The OIG has made combatting the opioid crisis a top enforcement priority and we will continue to work with our law enforcement partners to investigate and hold accountable those who act illegally and put patients’ health and safety at risk.”
David and Beverly Kirkwood have agreed to pay restitution in the amount of nearly $160,000, which represents the loss to Medicare and Medicaid.
“More than three fourths of heroin addiction in the United States begins with prescription pills,” said U.S. Attorney Glassman. “This case is one example of our commitment to end opioid-related health-care fraud.”
As part of that commitment, an Assistant United States Attorney in the Southern District of Ohio has been designated as part of the Attorney General’s Opioid Fraud and Abuse Task Force.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Medicaid Fraud Control Unit, HHS-OIG and DEA, as well as Special Assistant United States Attorney Maritsa Flaherty and Assistant United States Attorney Timothy Oakley.
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Distributor of Child Pornography Sentenced to 17 Years’ ImprisonmentRead the Press Release
PHOENIX – Yesterday, Joseph Alexander Dashee, 26, of Tempe, Ariz., was sentenced by U.S. District Judge David G. Campbell to 17 years’ imprisonment to be followed by lifetime supervised release for distribution of child pornography and abusive sexual contact. Dashee previously pleaded guilty to distribution of child pornography and abusive sexual contact. Dashee will also be required to register as a sex offender.
In the summer of 2015, FBI agents discovered Dashee was downloading and distributing child pornography through bit torrent file sharing. A search of Dashee’s residence resulted in the seizure of 90 images and seven videos containing child pornography. During questioning, Dashee also admitted sexually abusing two minor victims under the age of 12.
This investigation was conducted by the Federal Bureau of Investigation and the Salt River Police Department. The prosecution was handled by Assistant U.S. Attorneys Gayle L. Helart and Brandon M. Brown.
CASE NUMBER: CR-17-1001-PHX-DGC
RELEASE NUMBER: 2018-114_ Dashee
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Department of Justice Reminds the Public to be Aware of Fraud When Disaster Strikes and Report it to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Rod Rosenstein. “We are now in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
The recent Carr Fire in California, though largely contained, has caused severe damage; the Pacific Hurricane Season has already proven to be quite active, as demonstrated by Hurricane Lane’s destructive landfall in Hawaii; and we are already 90 days into the 2018 Atlantic Hurricane Season. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
In ongoing efforts to strengthen partnerships and better inform the American people of its mission, the NCDF has joined with Louisiana Attorney General Jeff Landry, who was recently installed as the President of the National Association of Attorneys General (NAAG), in an effort to spread the message of the NCDF to more of our partners nationwide. We at the NCDF are collaborating with Attorney General Landry and the NAAG to inform every state Attorney General of the mission and function of the NCDF as part of Attorney General Landry’s presidential initiative on disaster fraud.
“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director. “Our collaboration with the National Association of Attorneys General and Attorney General Landry is yet another example of our efforts to better serve the American people before, during and after a natural disaster. Raising public awareness by spreading the message of the NCDF through the state Attorneys General is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.”
“As President of the National Association of Attorneys General, my goal is to use the next 18 months to gather as much intel as possible so we may better prepare state and federal leaders for future crises,” said Louisiana Attorney General Jeff Landry. “We are fortunate to have the NCDF right here in Louisiana and it has served as a great resource to our citizens through hurricanes, floods, and other natural disasters. I am proud to team up with U.S. Attorney Fremin and the great men and women at the NCDF as we continue to look for ways to move our Louisiana and other states forward in terms of emergency preparedness and management.”
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Department of Justice Reminds the Public to be Aware of Fraud When Disaster Strikes and Report it to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Rod Rosenstein. “We are now in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
The recent Carr Fire in California, though largely contained, has caused severe damage; the Pacific Hurricane Season has already proven to be quite active, as demonstrated by Hurricane Lane’s destructive landfall in Hawaii; and we are already 90 days into the 2018 Atlantic Hurricane Season. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
In ongoing efforts to strengthen partnerships and better inform the American people of its mission, the NCDF has joined with Louisiana Attorney General Jeff Landry, who was recently installed as the President of the National Association of Attorneys General (NAAG), in an effort to spread the message of the NCDF to more of our partners nationwide. We at the NCDF are collaborating with Attorney General Landry and the NAAG to inform every state Attorney General of the mission and function of the NCDF as part of Attorney General Landry’s presidential initiative on disaster fraud.
“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director. “Our collaboration with the National Association of Attorneys General and Attorney General Landry is yet another example of our efforts to better serve the American people before, during and after a natural disaster. Raising public awareness by spreading the message of the NCDF through the state Attorneys General is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.”
“As President of the National Association of Attorneys General, my goal is to use the next 18 months to gather as much intel as possible so we may better prepare state and federal leaders for future crises,” said Louisiana Attorney General Jeff Landry. “We are fortunate to have the NCDF right here in Louisiana and it has served as a great resource to our citizens through hurricanes, floods, and other natural disasters. I am proud to team up with U.S. Attorney Fremin and the great men and women at the NCDF as we continue to look for ways to move our Louisiana and other states forward in terms of emergency preparedness and management.”
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Cleveland man sentenced to prison for stealing $77,000 in grants designed to help Native AmericansRead the Press Release
A Cleveland man was sentenced to prison for stealing more than $77,000 in federal grants designed to help Native Americans.
Robert Roche, 71, was sentenced to four months in prison followed by four months of home confinement by U.S. District Judge Donald C. Nugent. Roche previously pleaded guilty two counts of theft from programs receiving federal funds.
Roche was also ordered to pay restitution in the amount of $77,097.
“This defendant stole from taxpayers and betrayed the Native American families he purported to help,” U.S. Attorney Justin E. Herdman said. “He took tens of thousands of dollars designated for mental health and wellness programs and put the money in his own pockets.”
“Simply put, Mr. Roche stole taxpayer dollars that were intended to help needy children and families and today he was held accountable,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to be diligent in investigating and seeking prosecution of individuals who steal HHS grant funds in order to unjustly enrich themselves.”
Roche served as executive director of the American Indian Education Center (AIEC), a Parma-based nonprofit established in 1995 to support Native American causes in Northeast Ohio, according to court documents.
Craig McGuire operated McGuire & Associates LLC, a company that wrote grant applications and provided evaluation services. Roche entered into an agreement with McGuire & Associates in April 2011 to draft grant proposals on behalf of the AIEC. Later that year, McGuire submitted an application on behalf of the AIEC to receive a Circle of Care grant, offered through the Substance Abuse and Mental Health Services Administration (SAMHSA). The grant was designed to provide Native American communities with the tools and resources to design programs to support mental health and wellness for children and families, according to court documents.
The AIEC’s application contained numerous false statements including: misrepresenting the date the AIEC was established; falsely claiming the AIEC had a wellness department and a “Positive Paths” afterschool program serving 500 children when no such department or program existed; fraudulently listing people the AIEC allegedly employed and mischaracterizing the description of the AIEC’s building and alleged physical amenities, according to court documents.
SAMHSA awarded the AIEC a Circle of Care grant on Sept. 1, 2012 of approximately $302,340 for FY 2012. On June 26, 2012, SAMHSA awarded the second year of a Circle of Care grant in the amount of $308,040 for FY 2013, according to court documents.
The AIEC received approximately $482,766 from SAMHSA from 2011 through 2013. The AIEC did not receive full funding because SAMHSA placed it in “high risk” status, according to court documents.
Roche paid himself through AIEC on several occasions as a project coordinator for the Circle of Care project. Roche was not identified as the project coordinator on the grant application and such payments were precluded by regulation, according to court documents.
Roche and McGuire embezzled at least $183,703 from the SAMHSA grant. Roche converted approximately $77,097 of that money for his own personal use, according to court documents.
McGuire pleaded guilty to crimes related to his role in the conspiracy.
This case is being prosecuted by Assistant United States Attorneys Robert J. Patton, Alex Abreu and Suzanna Koch following an investigation by the Department of Health and Human Services – Office of Inspector General.
Clarksville Man Facing Bank Robbery ChargesRead the Press Release
NASHVILLE, Tenn. – August 29, 2018 – Muhammed Talik Shahid, 25, of Clarksville, Tennessee, was charged yesterday in a criminal complaint with attempting to rob the U.S. Bank in Clarksville, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to the complaint, on August 22, 2018, a masked gunman entered the Fort Campbell Boulevard branch of the U.S. Bank and handed a teller a note demanding at least $50,000. As the teller began gathering the cash, the suspect paced back and forth, looking out the front windows of the bank and then left the bank without the cash.
An alert citizen saw the suspect enter and exit the bank and followed the suspect as he drove away and eventually flagged down a police officer in nearby Oak Grove, Kentucky. The Oak Grove officer surveilled the suspect’s vehicle until he returned to Clarksville and was arrested by officers with the Clarksville Police Department and found to be in possession of a loaded handgun.
If convicted, Shahid faces up to 25 years in federal prison.
This case was investigated by the FBI; the Clarksville Police Department; and the Oak Grove, Kentucky Police Department. Assistant U.S. Attorney Lynne T. Ingram is prosecuting the case.
Citizen of the Dominican Republic Sentenced to Prison for Heroin Trafficking and Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORGE TAVERAS-DeJESUS, 36, a citizen of the Dominican Republic formerly residing in Lawrence, Massachusetts, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing heroin and for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, this matters stems from a DEA Hartford Task Force investigation of a heroin trafficking organization that was operating in Connecticut, Massachusetts, New York and the Dominican Republic. Court-authorized wiretaps and law enforcement surveillance confirmed that TAVERAS regularly traveled to Connecticut to supply distribution quantities of heroin to individuals in Hartford. The investigation revealed that members of the organization were distributing heroin from the Katty Grocery store located at 584 Franklin Avenue in Hartford.
On February 24, 2017, investigators arrested TAVERAS in Hartford and seized from his person approximately 82 grams of combined heroin and fentanyl.
A subsequent fingerprint analysis revealed that TAVERAS had been deported from the U.S. after a 2006 New York state conviction for sale of narcotics, and again after a 2010 federal conviction for illegal reentry.
TAVERAS has been detained since his arrest. On May 23, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin, and one count of reentry of a reentry of a removed alien.
Ten individuals have been charged with various narcotics and immigration offenses as a result of this investigation.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Charter Captain Pleads Guilty to Misconduct or Neglect that Resulted in DeathRead the Press Release
Mauricio Alvarez, 49, of Miami, Florida, pled guilty today, before U.S. District Court Judge Cecilia M. Altonaga, to misconduct or neglect of a ship officer that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.
Benjamin G. Greenberg, United States Attorney of the Southern District of Florida, Zinnia P. James, Acting Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.
“Illegal charter boat operations pose a grave danger to the public’s safety,” stated U.S. Attorney Benjamin Greenberg. “Before embarking on an excursion, we implore all passengers to confirm that the charter boat company and captain are authorized to operate. The U.S. Attorney’s Office and our USCG and FWC partners will continue to enforce all federal criminal laws and maritime regulations and hold the violators accountable, so that residents and visitors can safely enjoy South Florida’s open waters.”
"Tragically people have lost their lives on illegal charters, as was seen in the case of the vessel Jaguar in the Tampa Bay area and in the case of the Miami Vice yacht in Miami," said Capt. Ladonn Allen, Chief of the Coast Guard Seventh District Prevention Department. "The unsafe atmospheres that these types of companies and unlicensed captains, who knowingly engage in illegal activity, create on their boats show a complete disregard for passenger safety and have been responsible for multiple deaths in Florida alone. We cannot stress enough to anyone looking to charter a boat to verify the captain’s license and safety of the vessel."
"The results of this case send a strong message to anyone looking to operate a charter boat illegally," said Capt. Michael Fazio, Staff Judge Advocate for the Coast Guard's Seventh District in Miami. "We will continue to work with our Department of Justice partners to investigate, enforce, and hold accountable these reckless companies and operators who take shortcuts and care only about the money they can make while subverting the regulations and licensing designed to prevent tragedies such as this one."
“The work performed by investigators with all of the agencies involved in this case was exemplary, and we at the FWC appreciate the work done by the Coast Guard Investigative Service and the U.S. Attorney's Office to reach a lawful resolution to this tragedy,” stated Major Alfredo Escanio, FWC.
According to the court record, including the agreed upon factual proffer, on April 1, 2018, the United States Coast Guard (USCG) received a report from a Miami-Dade 911 operator that a person was trapped under the motor yacht (M/Y) MIAMI VICE, near Monument Island. USCG and local law enforcement units arrived at the scene of the reported incident and located M/Y MIAMI VICE adjacent to Monument Island. An investigation by FWC revealed M/Y MIAMI VICE was chartered for a four-hour period on April 1, 2018 and departed a marina with approximately seven passengers. Alvarez was employed as the vessel captain of M/Y MIAMI VICE and had a first mate on board the vessel. M/Y MIAMI VICE had been chartered for a four-hour trip for $3,000 and Alvarez was to be paid $150 per hour.
Two passengers were reportedly in the water in close proximity to the stern of M/Y MIAMI VICE when Alvarez engaged the engines of M/Y MIAMI VICE in reverse. One of the individuals, who was swimming in the water, was struck by M/Y MIAMI VICE’s propellers and killed. Alvarez, as the operator of the M/Y MIAMI VICE, could not see the stern of the vessel or ensure the safety of any remaining swimmers in the water while engaging the engines from this location without assistance from another individual. Alvarez did not have a United States Captain license at the time of the incident.
Alvarez is scheduled to be sentenced by Judge Altonaga on November 19, 2018 at 9:00 a.m., in Miami.
Mr. Greenberg commended the investigative efforts of CGIS and FWC in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorney Phil Jones.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Candia Woman and Manchester Man Plead Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Meghan Bowers, 31, of Candia, New Hampshire and Albert Gordon, 45, of Manchester, New Hampshire, pleaded guilty to participating in a conspiracy to distribute fentanyl.
According to court documents and statements made in court, in the course of an ongoing drug trafficking investigation that included wiretaps of certain telephones, investigating agents learned that on March 7, 2018, an individual intended to travel from New Hampshire to a location in Massachusetts to purchase fentanyl. Agents conducted surveillance in the area of the transaction and observed a hand-to-hand exchange between a known drug trafficker and the driver of the car at the driver’s side window. The vehicle left Massachusetts and agents followed it directly to New Hampshire. A New Hampshire State Trooper stopped the vehicle. During the traffic stop, the Trooper subsequently located an orange bag containing approximately 184 grams of fentanyl. Gordon and Bowers admitted that another individual had asked them to drive him to Massachusetts to buy drugs and that they had agreed to do so.
Gordon is scheduled to be sentenced on December 10, 2018. Bowers sentencing has not been scheduled by the court.
“The U.S. Attorney’s Office is committed to the aggressive prosecution of those who are bringing fentanyl and other deadly drugs into New Hampshire,” said U.S. Attorney Murray. “In order to protect the citizens of our state from further harm, we will work closely with our law enforcement partners to identify and prosecute those who transport and distribute these deadly substances.”
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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CEO of Two Bellevue Information Technology Companies Arrested on Visa Fraud ChargeRead the Press Release
The CEO of two Bellevue, Washington information-technology firms was arrested yesterday afternoon at Sea-Tac Airport on a charge relating to a multi-year visa-fraud scheme, announced U.S. Attorney Annette L. Hayes. PRADYUMNA KUMAR SAMAL, 49, a citizen of India, was taken into custody as he arrived from an international flight. The criminal complaint describing the visa-fraud scheme was filed under seal in April 2018, soon after SAMAL fled the United States while the investigation was ongoing. SAMAL remained out of the country until yesterday when he was arrested by law enforcement. SAMAL will make his initial appearance on the charges in U.S. District Court in Seattle at 2:00 PM today.
The criminal complaint describes how two companies incorporated by SAMAL in 2010 and 2011, engaged in a scheme sometimes referred to as a “bench-and-switch” scheme, to exploit foreign-national workers, compete unlawfully in the market, and defraud the U.S. government. According to the investigation that began in 2015, SAMAL served as the Chief Executive Officer of ‘Divensi’ and ‘Azimetry.’ Both companies were in the business of providing information-technology workers, such as Software Development Engineers, to major corporate clients. The complaint alleges that SAMAL submitted, and directed his employees to submit, forged and false application materials to the United States government, making it appear as if two corporate clients already had agreed to use several foreign-national employees named in the applications. In fact, neither client had agreed to do so. The forged documents included forged letters and fraudulent statements of work, which appeared as if they had been signed by senior executives at the two clients. After USCIS relied on the false representations and approved the applications, SAMAL’s companies “benched” the foreign nationals – i.e., the companies left those foreign nationals unpaid – until and unless they were able to place those employees at actual end clients.
Nearly 200 workers may have been brought in under the phony applications. The employees were forced to pay SAMAL’s companies a partially-refundable “security deposit” of as much as $5,000 for the visa filings, regardless of whether they were assigned to any projects that provided them with income.
Visa Fraud is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. State Department’s Diplomatic Security Service (DSS). The case is being prosecuted by Assistant United States Attorney Siddharth Velamoor.
Butler Drug User Illegally Possessed 7 Firearms, Six of Which he Purchased for Others in Exchange for Drugs and CashRead the Press Release
PITTSBURGH, PA - A resident of Butler, Pennsylvania pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Craig Evers Cyphert, 47, pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that beginning in February 2011 and continuing until February 2016, Cyphert, an unlawful drug user or drug addict, possessed seven firearms. The law prohibits any person who is an unlawful user of, or is addicted to any controlled substance from possessing any firearm in or affecting commerce. The court was further advised that from 2014 to 2016, Cyphert made false statements when he acquired six of these firearms, by advising a federally licensed firearms dealer that he was purchasing said firearms for himself, when he was in fact purchasing said firearms at the direction of another person, in exchange for heroin, crack cocaine and cash.
Judge Schwab scheduled sentencing for January 10, 2019. At each of the three counts, the law provides for a total maximum sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Cyphert’s bond.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Cyphert.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
Bergen County, New Jersey, Man Arrested on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested and charged today with distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Barry Goldstein, 46, of Bergenfield, New Jersey, was arrested at his home. He is charged by complaint with one count of distributing child pornography. Goldstein made his initial appearance before U.S. Magistrate Judge Michael A. Hammer this afternoon in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2018 through August 2018, an undercover law enforcement officer (the “UC”) communicated over an instant messaging mobile application (the “IM App”) with Goldstein. The IM App allows users to transmit and receive content after users register a username. Goldstein maintained an account on the IM App, which was accessed from Internet Protocol addresses associated with Goldstein’s home.
In May and June 2018, after engaging in explicit conversations with the UC regarding the sexual abuse of children, Goldstein used his account on the IM App to share with the UC multiple files depicting child sexual abuse. On Aug. 29, 2018, law enforcement officers searched Goldstein’s residence, interviewed Goldstein and arrested him.
The count of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s arrest.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Barbour County woman admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Chelsey Farley, of Philippi, West Virginia, has admitted to a methamphetamine distribution charge, United States Attorney Bill Powell announced.
Farley, age 26, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Farley admitted to possessing crystal methamphetamine, also known as “Ice,” in November 2016 in Barbour County.
Farley faces up to 20 years incarceration and a fine of $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Bank Robber Sentenced to 14 Years in PrisonRead the Press Release
HONOLULU – Mitchum L. Pastor, 52, was sentenced today to 14 years in prison for the bank robberies of First Hawaiian Bank and Hawaii State Federal Credit Union. As part of his sentence, Pastor must pay $320 in restitution, and serve 3 years of supervised release following his incarceration.
U.S. Attorney Kenji M. Price stated that, according to court documents and information presented in court, on April 12, 2018, Pastor entered First Hawaiian Bank, told the teller he had a weapon, and demanded money. He received $320 in cash and fled on foot. The incident was captured on bank surveillance. The next day, Pastor entered Hawaii State Federal Credit Union, demanded money from the teller, and stated he had a gun as he reached into his back pocket. The teller placed $2,000 in cash in a bank envelope and handed it to Pastor. Pastor again fled the scene. Shortly thereafter, Honolulu Police Department officers identified Pastor from First Hawaiian Bank surveillance footage and arrested him. At the time of his arrest, he was found in possession of $2,000 in cash.
Pastor has two previous felony bank robbery convictions in two entirely separate cases. In 1993, Pastor received a prison sentence of 12 years for one bank robbery. In 2005, approximately a week after Pastor completed that prison sentence and while he was on supervised release, Pastor committed another bank robbery. He pled guilty and was sentenced to a term of imprisonment of 10 years. In addition, Pastor has two prior New York state robbery convictions.
The case was investigated by the Honolulu Police Department and the FBI, and prosecuted by Assistant U.S. Attorney Sara D. Ayabe.
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Baltimore County Man Who Enticed Children to Send Him Sexually Explicit Videos of Themselves Pleads Guilty to Producing Child PornographyRead the Press Release
Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4854
Greenbelt, Maryland – Keith Edward Taylor, age 33, of Kingsville, Maryland, pleaded guilty today to production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Taylor’s plea agreement, in 2017, Taylor used an instant-messaging software application to communicate with minors throughout the United States and internationally. Specifically, Taylor admitted that he engaged in sexually explicit conversations with at least five minor male victims, ranging from 12 to 15 years old, and residing in various states, including Texas, Massachusetts, Iowa, Michigan, and Colorado. During the course of his conversations with the boys, Taylor typically portrayed himself as a woman. Taylor repeatedly requested that the boys send sexually explicit photos and videos of themselves engaging in sexually explicit conduct. Taylor sent some of the boys sexually explicit photos of women, falsely claiming that they were photos of himself.
Taylor further admitted using the messaging app to distribute and trade child pornography with adults. For example, during December 2017, Taylor traded child pornography with a user who sent Taylor a live photo of a child that the user claimed was his own stepchild. Taylor repeatedly requested sexually explicit photos of the child and discussed the other user engaging in sex acts with the child. Taylor also maintained digital collections of child pornography in multiple cloud storage accounts and electronic devices.
As part of his plea agreement, Taylor must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Taylor faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for production of child pornography. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 30, 2018 at 3 p.m.
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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Robert K. Hur commended HSI-Baltimore, the Baltimore County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
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Atlantic Mobile Imaging Services, Inc. Agrees to Pay More Than $320,000 to Settle False Claims Act Allegations of Operating Without A LicenseRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that Atlantic Mobile Imaging Services, Inc. has agreed to pay the United States $321,388.50 to resolve allegations that it violated the False Claims Act by knowingly billing the government for services while it was unlicensed.
The settlement relates to the expiration of Atlantic Mobile’s license with the State of Florida in 2015. Atlantic Mobile allegedly billed federal healthcare programs for mobile x-ray services it had provided at various locations without a valid license. According to the settlement agreement, from June 9, 2015, through December 28, 2015, Atlantic Mobile billed over $160,000 for services it was not licensed to provide, in order to receive payment from the United States.
“The U.S. Attorney’s Office seeks to protect Medicare, TRICARE, and other federal health care programs from unlicensed providers,” said U.S. Attorney Maria Chapa Lopez. “We will continue to protect the people in our district from providers who do not follow the law.”
“Medicare licensure requirements help to ensure that patients receive services from competent providers,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “On behalf of patients and taxpayers, we will hold violators accountable who fail to meet those requirements.”
This settlement resulted from an investigation coordinated by Assistant U.S. Attorney Jeremy R. Bloor, with assistance from the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General. The settlement resolves the United States’ claims. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Amaurys Mendez Campanon Sentenced to Serve 57 Months in Federal Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
GREENEVILLE, Tenn. – On August 29, 2018, Amaurys Mendez Campanon, 40, of Miami, Florida, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve a total of 57 months in federal prison for his role in a wire fraud and aggravated identity theft conspiracy involving credit card skimmers. Upon his release from prison, he will be supervised by U.S. Probation for three years. Campanon was also ordered to pay restitution in the amount of $21,114.84.
In April 2018, Campanon pleaded guilty to three counts of a September 2017 federal indictment. Details of the scheme are outlined in his plea agreement on file with U.S. District Court. According to the plea agreement, between August 7, 2017 and August 10, 2017, Campanon and Odemnis Prats Leiva purchased credit and debit card account information pertaining to numerous persons without their knowledge. They used the fraudulently obtained information to re-encode unloaded gift cards, which they shoplifted from various retail establishments. The re-encoded cards – which were, in effect, converted credit cards bearing the account information of the victims - were then used to purchase loaded gift cards and other consumer items at various retail establishments across east Tennessee and elsewhere.
As a result of an ongoing investigation by law enforcement, Campanon and Leiva were arrested in Rogersville, Tennessee, on August 10, 2017. At the time of their arrest, Leiva was in possession of nine unlawfully re-encoded devices, $7,020.25 in cash, numerous gift cards, all of which he had obtained as part of the conspiracy, as well as other items used in furtherance of their conspiracy. Leiva also pleaded guilty to these charges and was sentenced in July 2018 to serve 54 months in prison.
This investigation was conducted by the U.S. Secret Service, Johnson City Police Department and Rogersville Police Department. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
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Alien Sentenced for Illegal Reentry Subsequent to Multiple DeportationsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that LUIS LAURO ZAMORA-ESPIRIQUETA, age 53, of Mexico, was sentenced in Raleigh by Senior United States District Court Judge W. Earl Britt to 21 months imprisonment for reentry of a removed alien.
ZAMORA-ESPIRIQUETA was named in a one-count Indictment returned by a grand jury sitting in the Eastern District of North Carolina on August 16, 2017. ZAMORA-ESPIRIQUETA pled guilty on May 22, 2018 to reentry of a removed alien.
According to information presented in court, ZAMORA-ESPIRIQUETA was previously deported three (3) times and found in Johnston County, North Carolina, due to his arrest for possession with intent to sell and deliver cocaine. As presented in court, ZAMORA-ESPIRIQUETA had sold cocaine to an individual and a search of a hotel room occupied by ZAMORA-ESPIRIQUETA in Selma, North Carolina, revealed 11 grams of cocaine. In addition, a search of ZAMORA-ESPIRIQUETA’s residence in Clayton, North Carolina, uncovered methamphetamine and drug paraphernalia.
The case was investigated by ICE’s Enforcement and Removal Operations.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Ronald P. Lopez, 25, of Albuquerque, N.M., pled guilty this morning in federal court to a bank robbery charge. Lopez entered the guilty plea without the benefit of a plea agreement.
The FBI arrested Lopez on March 14, 2018, on a criminal complaint charging him with robbing the US Bank branch located at 2015 Eubank Blvd., in Albuquerque on Feb. 26, 2018. Lopez subsequently was indicted on April 10, 2018, and was charged with bank robbery on Feb. 26, 2018, in Bernalillo County, N.M.
At sentencing, Lopez faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. Lopez has been in federal custody since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Alameda Laboratory to Pay $1.25 Million to Settle Claims of Conducting Unnecessary TestingRead the Press Release
SAN FRANCISO – Laboratory testing services company Singulex, Inc. of Alameda, Calif., has agreed to resolve allegations that it violated the False Claims Act by billing federal health care programs for medically unnecessary testing, announced United States Attorney Alex G. Tse, Special Agent in Charge Steven J. Ryan of the Health and Human Services’ Office of Inspector General (HHS-OIG), Special Agent in Charge Chris D. Hendrickson of the Western Field Office, Defense Criminal Investigative Service (DCIS), and Special Agent in Charge John F. Bennett of the Federal Bureau of Investigation San Francisco Field Office. Under the settlement, which stems from a whistleblower action filed under the federal False Claims Act, Singulex will pay $1.25 million.
As alleged in the lawsuit, Singulex caused the submission of false claims to Medicare and TRICARE by pressuring health care providers to select certain diagnosis codes without regard to the patient’s medical condition, and/or added such codes to laboratory test orders without the health care provider’s knowledge or consent. In addition, the lawsuit alleged that Singulex knowingly pressured health care providers to order laboratory tests without regard to medical necessity, made misrepresentations to health care providers to convince them to order additional laboratory tests, and/or added certain procedure codes to laboratory test requisition forms without health care provider’s knowledge or consent. As a result, the United States alleges that Singulex billed federal health care programs, including Medicare and TRICARE, for medically unnecessary tests.
“This settlement reflects the continuing commitment of the U.S. Attorney’s Office and our law enforcement partners to identify and prosecute improper Medicare and TRICARE billings by companies that are looking to increase their profits at the expense of taxpayers and without regard to proper patient care,” said U.S. Attorney Tse.
“Health care companies that use illegal shortcuts to boost profits undermine the financial integrity of federal health care programs,” said HHS-OIG Special Agent in Charge Steven J. Ryan. “Our agency will continue to hold those who engage in such fraudulent schemes accountable.”
“Today's result resolves serious allegations of fraud against Singulex and is a victory for the U.S. taxpayer,” said Special Agent in Charge Hendrickson. “DCIS and its law enforcement partners will aggressively pursue those who attempt to defraud the U.S. military's health care program and other health care programs in order to ensure the health care system works for U.S. military personnel and their families.”
The lawsuit was filed by Vicki Swartzell and Jim Vandermeer under the qui tam provisions of the False Claims Act. Under the act, private individuals can bring a lawsuit on behalf of the government for false claims. The individual then shares in any recovery. The act also permits the United States to intervene in and take over a whistleblower suit, as it has done here.
Assistant U.S. Attorney Rebecca A. Falk is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with the assistance of Garland He. This matter was investigated by the U.S. Attorney’s Office of the Northern District of California, HHS-OIG, DCIS and the FBI.
Afton Man Charged with Possessing a "Pipe Bomb"Read the Press Release
TULSA, Okla.— Richard C. Cole, 36, of Joplin, Missouri, was charged today by way of criminal complaint with possession of an unregistered destructive device discovered at a residence in Afton, Oklahoma, from which he was recently evicted.
According to the Complaint affidavit, on August 25, Delaware County Sheriff’s deputies were called to 27950 South Highway 25, Unit 27-1, in Afton, OK, when a landlord discovered a suspected improvised explosive device. The Oklahoma Highway Patrol Bomb Squad was contacted, and upon arrival, they observed two, one pound canisters of what appeared to be “mixed Tannerite,” two boxes of ammunition, along with the explosive device in an ammunition container.
United States Attorney Trent Shores stated, “I am thankful no one was injured by the pipe bomb. The Oklahoma Highway Patrol Bomb Squad and the Delaware County Sheriff’s Office are to be commended for quickly handling the situation in order to protect the public and render this destructive device safe.”
Agencies involved in the investigation and arrest included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol, and the Delaware County Sheriff’s Office. Assistant United States Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma
A Complaint is a set of allegations that, if the case were to proceed to trial, the government would need to prove beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.
Afton Man Charged with Possessing a "Pipe Bomb"Read the Press Release
TULSA, Okla.— Richard C. Cole, 36, of Joplin, Missouri, was charged today by way of criminal complaint with possession of an unregistered destructive device discovered at a residence in Afton, Oklahoma, from which he was recently evicted.
According to the Complaint affidavit, on August 25, Delaware County Sheriff’s deputies were called to 27950 South Highway 25, Unit 27-1, in Afton, OK, when a landlord discovered a suspected improvised explosive device. The Oklahoma Highway Patrol Bomb Squad was contacted, and upon arrival, they observed two, one pound canisters of what appeared to be “mixed Tannerite,” two boxes of ammunition, along with the explosive device in an ammunition container.
United States Attorney Trent Shores stated, “I am thankful no one was injured by the pipe bomb. The Oklahoma Highway Patrol Bomb Squad and the Delaware County Sheriff’s Office are to be commended for quickly handling the situation in order to protect the public and render this destructive device safe.”
Agencies involved in the investigation and arrest included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol Bomb Squad, and the Delaware County Sheriff’s Office. Assistant United States Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma
A Complaint is a set of allegations that, if the case were to proceed to trial, the government would need to prove beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.
Tuesday 28 August 2018
West Mifflin Woman Gets Probation, Ordered to Complete Drug Treatment for Conspiring to Distribute FentanylRead the Press Release
PITTSBURGH, PA – A resident of West Mifflin, Pennsylvania, has been sentenced in federal court to three years’ probation, the first 180 days of which are to be served under home detention, and 75 hours of community service on her conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jammie Fridley, age 49. According to information presented to the court, Fridley, from March through June 2017, regularly purchased fentanyl and other drugs for personal use and distribution, and was responsible for the distribution of between 32 and 40 grams of fentanyl. In light of her history of drug abuse, the court ordered her to complete drug treatment and mental health programs during the probationary period imposed. Fridley is the fifth of the 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Violent Drug Dealer Receives 15 Year SentenceRead the Press Release
St. Louis, MO – Keith English, 26, was sentenced to 15 years’ imprisonment for possession with the intent to distribute more than a kilogram of methamphetamine and possessing a firearm in furtherance of his drug dealing activities. English appeared before Judge E. Richard Webber in United States District Court in St. Louis this morning.
English admitted to a string of arrests during which he was found in possession of drugs and weapons in St. Louis County during 2017. The final confrontation involved a sale of two ounces of methamphetamine on a north county parking lot during which English was arrested with a 9 millimeter handgun after briefly trying to outrun the police. In all, English admitted to possessing three different handguns. English also admitted to using straw purchasers to obtain firearms for himself and other convicted felons who are legally prohibited from possessing firearms.
“Drug dealing and illegal weapons are a dangerous combination for our community. This sentence reflects that danger and will keep a violent drug dealer out of the community for a long time,” said U.S. Attorney Jeff Jensen.
The case was investigated by the St. Ann Police Department, the St. Louis County Police Department, the Hazelwood Police Department, and the U.S. Drug Enforcement Administration – St. Louis Office. Assistant U.S. Attorney Sara Koppenaal handled the case for the U.S. Attorney’s Office.
Vinalhaven Man Convicted of Making Interstate ThreatsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Eric Malmstrom, 40, of Vinalhaven, Maine, was convicted yesterday following a one-day jury trial in U.S. District Court of transmitting threatening interstate communications.
The evidence at trial revealed that on three occasions in February and March, Malmstrom placed telephone calls to an employee of the Swedish embassy in Washington, D.C., threatening to slit the employee’s throat. Between September 2017 and March 2018, Malmstrom placed hundreds of calls to the embassy and to the employee.
Malmstrom faces up to five years in prison, a $250,000 fine and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
“Threats made against public officials, whether those of the United States or of foreign governments serving their citizens in this country, cannot be taken lightly,” said U.S. Attorney Frank. “People who make such threats should expect to be caught, charged and prosecuted.”
“The Diplomatic Security Service is firmly committed to ensuring the safety and security of foreign diplomats in the United States,” said Bart Brown, director of DSS’s Office of Protective Intelligence Investigations. “This case is the result of a joint DSS investigation with the U.S. Secret Service and the Knox County Sheriff’s Department.”
U.S. Department of Justice and Federal Agencies Reach Resolution with Northern California Landowner Regarding Clean Water Act and Endangered Species Act ViolationsRead the Press Release
SAN JOSE – A federal district court judge approved a settlement resolving alleged violations of the Clean Water Act and the Endangered Species Act in and around the Van Duzen River by Humboldt County landowner, Jack Noble. The announcement was made by U.S. Attorney Alex G. Tse, Acting Assistant Attorney General for the U.S. Justice Department’s Environment and Natural Resource Division (ENRD) Jeffrey H. Wood, U.S. Environmental Protection Agency (EPA) Pacific Southwest Regional Administrator Michael Stoker, and Assistant Director for National Oceanic and Atmospheric Administration (NOAA) Fisheries West Coast Division Office of Law Enforcement Greg Busch.
The settlement, approved by U.S. District Judge Saundra B. Armstrong on Monday, August 27, 2018, includes a consent decree pursuant to which Noble will remove concrete and other debris that he dumped into the Van Duzen River in an attempt to armor the river’s banks. Noble also will create woody alcoves in the river for fish habitat and revegetate the banks to restore the river. Under the decree, Noble also will pay a $10,000 civil penalty and is enjoined from additional work in the Van Duzen without first obtaining a clearance from relevant federal agencies.
The Clean Water Act requires any person who plans to discharge fill in any portion of rivers (or other waters of the United States) to obtain a permit from the United States Army Corps of Engineers or authorized state. Further, the Endangered Species Act protects listed species and prohibits killing listed species, injuring them, or significantly modifying or degrading their habitat. In this case, Noble placed fill and other pollutants in sections of the Van Duzen River, a designated Wild and Scenic River that serves as habitat to protected coho salmon, chinook salmon, and steelhead trout. He did so without obtaining a permit and despite warnings from state and federal officials. These activities altered the reach of the river, had an adverse impact on critical fish spawning areas, and otherwise crushed or stranded fish.
“The federal law has been crafted to protect certain areas from unpermitted construction and dumping,” said U.S. Attorney Alex G. Tse. “Today’s settlement would ensure that this critical habitat in Humboldt County will be restored to the condition it was before pollutants were introduced in and around the Van Duzen River. We will continue to use the resources of this office to ensure that federal laws are enforced for the protection of our environment.”
“The Van Duzen River is not only a place for recreation, but also serves as an important water supply for the communities of Humboldt County, California,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resource Division. “Today’s settlement shows that the Justice Department will continue to work closely with its partners at the federal, state and local level to ensure the longevity of our natural resources and make sure that companies, as well as individuals, comply with the Clean Water Act.”
“Today’s settlement will help restore one of California’s Wild and Scenic Rivers and enhance habitat for salmon,” said Regional Administrator Mike Stoker with the EPA’s Pacific Southwest Region. “EPA looks forward to continuing to work with our local, state and federal partners to monitor the restoration work’s success.”
“NOAA is committed to enforcing regulations for the conservation and recovery of threatened and endangered species,” said Greg Busch, Assistant Director for NOAA Fisheries Office of Law Enforcement, West Coast Division. “This case is an excellent example of how state and federal agencies work together to reduce the harmful effect of human activities on protected species and their habitats.”
This litigation was handled jointly by Assistant U.S. Attorney Michael Pyle of the Northern District of California and Trial Attorneys John Thomas Do, Simi Bhat, and Andrea Gelatt of the Department of Justice Environment and Natural Resources Division. The resolution of this case is the result of a joint effort by EPA, the U.S. Army Corps of Engineers, and NOAA who are often aided by their state counterparts as well as groups and individuals who report suspected violations. This matter was brought to the attention of the federal agencies by the California Department of Fish and Wildlife and members of the public.
U.S. Attorney’s Office and Law Enforcement Partners Postpone Tonight’s Town Hall Meeting at Medgar Evers Library Regarding Project EJECTRead the Press Release
Jackson, Miss. – The United States Attorney’s Office and its law enforcement partners are postponing tonight’s scheduled town hall meeting at Medgar Evers Library in Jackson to discuss Project EJECT, as the local councilman for the Ward recently noted that he has a conflict with the timing of tonight’s Jackson City Council meeting and several law enforcement partners are now unavailable to attend, announced United States Attorney Mike Hurst.
The town hall meetings held by the U.S. Attorney’s Office and its law enforcement partners to explain the good work being done under Project EJECT to combat crime have solicited valuable input directly from citizens that will ultimately make Jackson safer and its citizens more secure.
"Working with our law enforcement partners under Project EJECT here in the City of Jackson, we have already been successful in reducing violent crime in the City of Jackson by almost 20% from just this time last year. I commend the Jackson Police Department, our federal and state law enforcement agents and officers, and our local and federal prosecutors for taking the fight to the criminals and protecting law-abiding citizens. We will continue this fight together to make Jackson safer for everyone, and we will only continue to be successful with involvement and cooperation from our communities and our residents," said U.S. Attorney Hurst.
Project EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness, under the Department of Justice’s Project Safe Neighborhoods ("PSN"). PSN is 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.
Since announcing Project EJECT in December 2017, the U.S. Attorney’s Office, the Jackson Police Department, and agents and task force officers from various federal and state law enforcement agencies, have indicted over 80 individuals for federal crimes ranging from carjacking to illegally possessing firearms to business robberies to drugs. Of those individuals whom have been arrested and are being prosecuted, approximately 97% have been detained while awaiting trial, and 40 have either pled or been found guilty of committing federal crimes. For those whom have been convicted and sentenced, the average sentence thus far for crimes prosecuted under Project EJECT is over 6 years in federal prison.
U.S. Attorney Announces Project Safe Neighborhoods InitiativeRead the Press Release
RAPID CITY, SD – On August 28, 2018, United States Attorney Ron Parsons announced the formation of a Project Safe Neighborhoods Task Force in Rapid City, South Dakota, and highlighted some of the initiative’s early successes.
One of the highest priorities of the Department of Justice is the reduction of violent crime. In the fall of 2017, U.S. Attorney General Jeff Sessions revitalized the Project Safe Neighborhoods program, also referred to as PSN. The PSN program is a national-scale violent crime reduction program aimed at bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer and more secure.
The PSN program utilizes focused enforcement efforts, along with technology and data analysis, to identify enforcement priorities. Since the program began in 2001, PSN has been updated and enhanced, emphasizing the role of U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. The program is proving to be more effective than ever and is helping fulfill our mission to make America safer.
The primary focus of the PSN initiative in South Dakota is to reduce gun and drug crimes through collaborative law enforcement, proactive investigations, data analysis, and community outreach.
In our communities, the rise of methamphetamine and other drug trafficking presents a clear and present danger to our children, families, citizens, and communities. At the same time, gun crimes and other acts of violence are rising as well. This is not a coincidence.
Make no mistake: drug trafficking is a crime of violence. Illegal drugs are the direct cause of much of the suffering and death in our communities. It has become common for law enforcement to find guns in the possession of drug dealers and users. Often, these guns have been stolen from law-abiding citizens. Over the past several years, there has been a nationwide increase in violent crimes, including robberies and assaults, committed by individuals under the influence of meth and other drugs.
The U.S. Department of Justice is committed to reversing those trends.
In cooperation with state, local, and federal law enforcement agencies, the U.S. Attorney’s Office for the District of South Dakota has targeted Rapid City as a focus location for its Project Safe Neighborhood efforts. A Rapid City PSN task force has been established, consisting of representatives from:
- U.S. Attorney’s Office
- Pennington County State’s Attorney’s Office
- South Dakota Attorney General’s Office
- Rapid City Police Department
- Pennington County Sheriff’s Office
- South Dakota Division of Criminal Investigations
- U.S. Marshal’s Service
- Bureau of Alcohol, Tobacco, Firearms, and Explosives
- Drug Enforcement Agency
- Community partners through our Re-entry Initiative
Making direct use of crime mapping and other data analysis, these state, local, and federal law enforcement agencies are working together to identify and arrest the most significant violent offenders, increase enforcement efforts against illegal guns and drugs, conduct warrant sweeps, and participate in community engagement and prevention programs.
Once cases are developed, the U.S. Attorney’s Office, Pennington County State’s Attorney’s Office, and Attorney General’s Office coordinate the prosecution of these cases to determine whether the case is better suited for state or federal court. The PSN task force meets regularly to discuss ongoing investigations, prosecutions, and necessary changes that will help reduce violent crime.
Since the beginning of this year, the U.S. Attorney’s Office in Rapid City alone has indicted approximately 45 individuals for firearms offenses and another 43 individuals for drug offenses under the Project Safe Neighborhoods initiative. During that same time period, many more criminal defendants have been charged in state court.
In addition, the Rapid City Police Department, Pennington County Sheriff’s Office, and federal ATF agents have collectively pulled at least 209 guns off the street thus far in 2018. All of these firearms were confiscated because they were illegal guns, such as sawed-off shotguns; used in the commission of a crime, including drug crimes; or found in the possession of someone prohibited by law from having firearms, such as those with a prior felony conviction. And this total does not include the 22 stolen guns recently recovered by law enforcement from the burglary at The Rooster Sporting Goods store in Rapid City.
The U.S. Attorney’s Office also is committed to prosecuting those who illegally attempt to obtain guns by lying, either directly or by omitting the truth, when seeking to purchase a gun. Federal law requires licensed firearms dealers to perform a background check before transferring any firearm. Those who attempt to thwart the background check process by lying or providing incomplete information on the required forms are likely to find themselves the subject of a federal prosecution.
Nationwide, at least 85 percent of all law enforcement occurs at the state, local, and tribal level. It is our state and local police officers, our sheriffs and deputies, DCI officers, highway patrol officers, federal agents, and tribal police who stand in the breach every day of their lives protecting us from violence and lawlessness. The Department of Justice is dedicated to doing everything it can to support them, including the reinvigoration of Project Safe Neighborhoods by Attorney General Sessions.
“We want everyone to know that we will not tolerate drug dealers in our communities,” said U.S. Attorney Parsons. “We won’t tolerate the use of guns against our fellow citizens. If you commit these crimes, we will find you. And you will be sent to prison.”
Recent federal prosecutions in Rapid City resulting from Project Safe Neighborhoods include:
- Nathanial Geiger, charged with possessing a sawed off shotgun. When arrested, he was found to be high on meth. He was sentenced to 7 years in federal prison for possessing the illegal firearm.
- AJ Bradshaw, charged with possessing firearms while using a controlled substance. He forfeited 41 firearms and explosives and was sentenced to 8 years in federal prison.
- William Corbine and Tristan Amos, charged with illegally discharging a firearm during a crime of violence. Corbine was sentenced to 15 years and Amos sentenced to 10 years in federal prison.
- Daniel Richards, charged with conspiracy to distribute methamphetamine in Rapid City. He was sentenced to more than 17 years in federal prison. Numerous co-conspirators were charged and are awaiting trial.
- Brandon Dykzuel, charged with distribution of meth by sending it through the U.S. mail. He was sentenced to almost 6 years in federal prison.
- Michael Mamola and Timothy Conwell, charged with conspiracy to distribute methamphetamine. Mamola was sentenced to 8 years and Conwell sentenced to 6 years in federal prison.
Two Sent to Prison after Seminal Fluid Links them to Armed RobberyRead the Press Release
HOUSTON – Two men have been ordered to prison after DNA found in seminal fluid identifies them in connection to the armed robbery of a Houston area massage parlor, announced U.S. Attorney Ryan K. Patrick. Javian Chapman, 20, and Joseph Berzat, 21, both of Houston, pleaded guilty in March 2018 to two counts of aiding and abetting interference with commerce by robbery and one count of aiding and abetting the discharge of a firearm during and in relation to a crime of violence.
Today, U.S. District Judge Andrew S. Hanen handed Chapman a 63-month sentence for the robbery charges in addition to an additional 120 months for the firearms charge which must be served consecutively to the other sentence imposed. Berzat received 96 months for the robbery charges and 120 months for the firearms charge. The respective 183 and 216-month terms of imprisonment will be immediately followed by five years of supervised release. The defendants were also ordered to pay restitution for an ATM they damaged and the cash they stole as well as medical expenses incurred by one of the victims. At the hearing, the court heard Berzat and Chapman had physically assaulted the employees. The court determined that the robbers had abducted employees by forcing them to move into separate rooms at gunpoint.
From approximately 11:00 p.m. Friday, Aug. 5, 2016, until nearly 2:00 a.m. Aug. 6, 2016, Chapman and Berzat entered Hana Spa located at 14015 Bammel North in Houston, demanding money and property at gunpoint. They ultimate left with cash, a Samsung Galaxy S5 cell phone and a 2014 Acura SUV. While inside, the suspects broke open the ATM and removed cash from inside using a drill and other tools they had brought with them. They also discharged a firearm.
During the robbery, the suspects had physically and sexually assaulted employees. Authorities later processed the scene for forensic evidence and uncovered DNA from seminal fluid found at the scene which positively identified Berzat and Chapman. Investigators also recovered a palm print from the ATM, which was determined to match Berzat. In addition, Spa employees identified both men as the suspects that held pistols and demanded money during the robbery.
Chapman and Berzat have been and will remain in custody.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Jill J. Stotts prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.
Two Rapid City Men Charged in the Rooster BurglaryRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men were charged in federal district court with Theft of a Firearm, Possession of Stolen Firearms, and Use of a Firearm During a Drug Trafficking Crime.
Matthew Keifer, age 30, and Zephaniah Thompson, age 28, were charged on August 24, 2018. Keifer and Thompson appeared before U.S. Magistrate Judge Daneta Wollmann on August 27, 2018, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years up to life in federal prison and/or a $250,000 fine, 5 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Keifer and Thompson stealing approximately 24 firearms from The Rooster on August 22, 2018, at Rapid City. The charges are merely an accusation and Keifer and Thompson are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Department of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Keifer and Thompson were detained pending a preliminary hearing. A trial date has not been set.
Turner Man Charged with Illegal Firearm/Silencer Possession and Marijuana TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Andrew Waite, 29, of Turner, Maine, was charged by indictment in U.S. District Court with illegal possession of a firearm in relation to a drug trafficking crime, illegal possession of a silencer without a serial number that was not registered to him, and possession with intent to distribute marijuana.
According to a criminal complaint, the charges arose from an investigation into a drug trafficking organization located in Turner that is alleged to have grown and distributed large quantities of marijuana in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. In February 2018, federal, state and local law enforcement agents executed over 20 search warrants in the Lewiston-Auburn area. The defendant’s Nezinscott Drive residence was searched. Agents seized about 100 pounds of marijuana, a loaded 9mm pistol, a 7.62mm x 39 pistol, a drum magazine, ammunition, a silencer and more than $150,000, much of which was stacked in $5,000 increments. Agents also seized a Ferrari pursuant to a seizure warrant on the basis that it was forfeitable as proceeds of drug trafficking, facilitated drug trafficking, or was involved in money laundering offenses.
If convicted, the defendant faces between five years and life and a $250,000 fine on the firearm charge, up to five years and a $250,000 fine on the drug charge, and up to 10 years and a $250,000 fine on the silencer charge.
The defendant was arrested on July 18 in North Carolina and is scheduled to make his initial appearance in U.S. District Court in Portland today at 3:30 p.m.
The investigation is being conducted by the U.S. Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Maine State Police; and the Lewiston, Auburn, Windham, Biddeford and Scarborough Police Departments.
A criminal complaint and an indictment are merely accusations, and a defendant is presumed innocent unless proven guilty in a court of law.
Three Ocala Men Found Guilty in Heroin ConspiracyRead the Press Release
Ocala, FL – A federal jury has found Juan Pablo Malagon-Alvarez (40), Jose Lucio Mendoza-Servin (35), and Aurelio Gomez-Andrade (40), all of Ocala, guilty of conspiracy to possess with the intent to distribute one kilogram or more of heroin. Each faces a minimum mandatory of 10 years, and up to life, in federal prison for that charge. In addition, the jury found Malagon-Alvarez guilty of possession with the intent to distribute heroin; the charge carries a maximum penalty of 20 years in federal prison. The sentencing hearings are scheduled for November 14, 2018.
Malagon-Alvarez, Mendoza-Servin, and Gomez-Andrade had been indicted on January 11, 2018.
According to testimony and other evidence presented at trial, between June 2015 and December 14, 2017, Malagon-Alvarez distributed multiple ounces of heroin on a weekly or bi-monthly basis to two Ocala drug dealers. During several transactions, Malagon-Alvarez was assisted by Mendoza-Servin and Gomez-Antrade. The drug deals typically occurred on horse farms in Ocala. One cooperating witness obtained 49 grams of heroin from Malagon-Alvarez on June 16, 2017.
This case was investigated by the Gainesville resident office of the Drug Enforcement Administration, with assistance from the Ocala Police Department, the Marion County Sheriff’s Office, and the Marion County Unified Drug Enforcement Strike Team. It is being prosecuted by Assistant United States Attorney Dale Campion.
Three Defendants Sentenced for Their Roles in Series of Rochester Armed RobberiesRead 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 Jonathan Middlebrooks, 22, Nasir Perez, 20, and Deborah Siegel-Edelman, 22, all of Rochester, NY, who were convicted of aiding and abetting Hobbs Act Robbery, were sentenced by U.S. District Judge Elizabeth A. Wolford. Defendants Middlebrooks and Perez were also convicted of aiding and abetting the possession of a firearm that was discharged during a crime of violence. Defendant Perez was sentenced to serve 180 months in prison; defendant Middlebrooks was sentenced to serve 188 months in prison; and defendant Siegel-Edelman was sentenced to serve 144 months in prison.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that Middlebrooks, Perez, and Siegel-Edelman took part in a series of gunpoint robberies at stores in the City of Rochester between September 3, 2017, and September 23, 2017:
• On September 3, 2017, Perez and Middlebrooks committed a gunpoint robbery of the Hudson Save More on Hudson Avenue. Together with co-conspirators Damien Rutledge and Dylan Miller, Perez acted as a lookout at the front door while Middlebrooks removed approximately $1,420 from the store’s cash registers;
• On September 14, 2017, during a gunpoint robbery of the 18 Hour Store on North Goodman Street, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $500 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver;
• On September 18, 2017, during a gunpoint robbery of the Four Star Market on Lake Avenue, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $2,650 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver;
• On September 23, 2017, during a gunpoint robbery of the Bronx Market on Brown Street, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $900 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver;
• Also on September 23, 2017, Siegel-Edelman drove Middlebrooks and Perez, along with co-defendants Miller and Rutledge, to the Greyhound Express Mini Mart on Carter Street. Middlebrooks, Perez, Miller, and Rutledge entered the store, a gun was pointed at the store owner, and after a struggle between the store owner and one the robbers, a store employee removed the robber’s gun from the robber’s hand. The store employee then pointed the gun at Middlebrooks, who put his hands up, but also moved forward towards the store employee. After Middlebrooks took several steps towards the employee, the employee fired the gun, and the discharged round hit Middlebrooks in the stomach. Middlebrooks, Perez, Miller and Rutledge got back into Siegel-Edelman’s car, and she drove them away from the scene of the attempted robbery.Charges remain pending against defendants Dylan Miller and Damien Rutledge. The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The Natural Center for Disaster Fraud Announces Partnership with the National Association of Attorneys General to Combat Disaster-Related FraudRead the Press Release
** MEDIA ADVISORY **
WHAT: United States Attorney Brandon J. Fremin and Louisiana Attorney General Jeff Landry will make an announcement regarding a partnership between the National Center for Disaster Fraud and the National Association of Attorneys General.
WHEN: Wednesday, August 29, 2018 at 9:00 a.m.
WHERE: National Center for Disaster Fraud Call Center, LSU’s Johnston Hall
Texas Man Sentenced to Almost 12 Years for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Antonio Ulises Mireles, 24, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 142 months of imprisonment for his conviction on a methamphetamine trafficking charge. Mireles will be on supervised release for five years after completing his prison sentence. Mireles also was ordered to pay a $7,000 money judgment and $500 in community restitution.
Mireles was arrested on Aug. 11, 2017, on a criminal complaint charging him with drug trafficking offenses in Dona Ana County, N.M. According to court documents, Mireles distributed quantities of drugs to an undercover law enforcement agent on the following dates:
- Approximately 572 grams of methamphetamine on June 9, 2017;
- Approximately 856 grams of methamphetamine and 493 grams of heroin on July 13, 2017;
- Approximately 458 grams of methamphetamine on July 28, 2017; and
- Approximately 1,209 grams of methamphetamine on Aug. 11, 2017.
On Nov. 8, 2017, Mireles pled guilty to a felony information charging him with conspiracy and distribution of methamphetamine. In entering the guilty plea, Mireles admitted that from June 2017 through Aug. 2017, he conspired with others to distribute methamphetamine. Mireles further admitted that during that time, he was responsible for distributing approximately 3.3 kilograms of methamphetamine in Dona Ana County.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Brock E. Taylor.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Tampa Man Sentenced to Ten Years for Attempted Enticement of A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Richard Plummer (37, Tampa) to 10 years in federal prison for attempted enticement of a minor. Plummer was also ordered to serve 25 years of supervised release and must register as a sex offender. He pleaded guilty on May 25, 2018.
According to court documents, in March 2018, Plummer exchanged over 160 text messages with an individual whom he believed was 14 years old. During the conversations, Plummer attempted to induce the child to meet him for a casual sexual encounter. Plummer also sent the child explicit photographs and video of himself. The 14-year-old boy, in reality, was an undercover officer from the Tampa Police Department. Officers arrested Plummer after he showed up to a residence to have sex with the child.
This case was jointly investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
This represents another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Taiwanese Exchange Student Who Threatened to Shoot up School Pleads Guilty to Federal Ammunition ChargeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Taiwanese exchange student pleaded guilty today to being an alien in possession of ammunition. Sentencing is scheduled for December 11, 2018 before United States District Judge Nitza I. Quinones Alejandro.
According to the Information, An-Tso Sun, 18, also known as “Edward Sun,” is a Taiwanese national who came to the United States in August 2017 on an F-1 visa to be a student at a high school in Upper Darby, Pennsylvania. While attending school, he resided with a host-family in Upper Darby. Beginning in October 2017, Sun visited a Philadelphia shooting range on multiple occasions, where he fired a variety of firearms, including semiautomatic rifles and shotguns. Over the next few months, Sun purchased hundreds of rounds of ammunition from online vendors, and directed that they be shipped to his host-family address. In January 2018, Sun purchased pistol components from multiple online vendors and assembled them to create a functioning homemade pistol.
On March 26, 2018, after the school bell rang at the end of the day, Sun made the following statement to a fellow student: “Hey, don’t come to school on May 1st . . . I’m going to come here armed and shoot up the school. Just kidding.” That student reported the incident to school officials, who then alerted law enforcement officials. Upper Darby Police officers executed a search warrant at Sun’s residence and seized the following from Sun’s bedroom: 20 rounds of 9mm Blazer Brass ammunition; a ballistic suit, including a vest, jacket and pants; a crossbow; seven arrows; and various firearm accessories and shooting equipment. Sun’s host-mother was later interviewed and explained that, prior to the search, she had removed a number of items from Sun’s bedroom, including bullets and firearm-related items, and given the items to an attorney. Law enforcement took possession of those items, which included, among other things, a homemade semiautomatic pistol, two AK-style 30-round magazines with ammunition, two AR-15-style 30-round magazines with ammunition, and numerous additional boxes of ammunition, totaling over 1,600 rounds.
Sun was arrested by Upper Darby police and charged locally with making terroristic threats. He pled guilty to that charge in early June and was sentenced to 4-23 months’ incarceration, with immediate parole, and credit for time served. He was released to the custody of U.S. Immigration and Customs Enforcement and charged federally by complaint on June 5, 2018. He has been in federal custody since that time.
Under federal law, as a student present in the United States on an F-1 visa (a nonimmigrant visa) without a hunting license, Sun was not permitted to possess any ammunition or firearms. Sun faces a maximum possible sentence of ten years’ imprisonment, a $250,000 fine, and three years’ supervised release. As part of his guilty plea, Sun has agreed that upon completing his prison sentence, he is subject to immediate and permanent removal from the United States.
“Federal, state, and local law enforcement authorities will continue to work together to prevent tragedy and combat terrorism and threats of violence,” said U.S. Attorney McSwain. “As I have stated before, however, parents and guardians are the first line of defense in these kinds of situations involving children’s access to firearms. It should be obvious that no child should be stockpiling an arsenal – or have any access to firearms or other dangerous weapons – without their parents’ or guardians’ knowledge. Every parent needs to be involved and actively aware of what is going on in their child’s life. It is their duty and obligation, not only to the child, but also to the community at large.”
“Sadly, threats of school violence have become all too common in this country,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Children in this country should feel safe in their school environment and free from the violence that terrorizes communities when these senseless acts occur. Thanks to the quick action and diligent teamwork of federal, state, and local law enforcement in this particular case, a potentially devastating tragedy was averted.”
“In the case of An-Tso Sun, there is no question that this young man is a dangerous individual, who was armed with over 1,000 rounds of ammunition, ready to cause devastating harm to his classmates,” said Delaware County District Attorney Katayoun M. Copeland. “As the result of the swift response of his classmates, school officials, and the Upper Darby Police Department, no one was harmed, and Mr. Sun is now rightfully facing the severe consequences of his actions. I would like to commend Homeland Security Investigations and the Upper Darby Police Department for leading this investigation and thank United States Attorney William M. McSwain and the United States Attorney’s Office in the Eastern District of Pennsylvania for pursuing federal charges in this case and ensuring the safety of our residents.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, with the assistance of the Upper Darby Police Department and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
Saratoga Doctor Sentenced to More Than Five Years in Prison for Lying Related to Health Care Matters and Providing False Billing Statements to Health Care Benefit ProgramsRead the Press Release
SAN JOSE- Vilasini Ganesh was sentenced today to 63 months in prison for making false statements related to a health care benefits program, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Ganesh, 47, and her husband Gregory Belcher, 56, both of Saratoga, Calif., were convicted of the charges on December 15, 2017, after an eight-week trial. The evidence at trial demonstrated Ganesh submitted a series of false medical claims related to the family medical practice she owned, Campbell Medical Group in Saratoga. For example, Ganesh submitted claims for days when a patient had not been seen by the provider and claims for patients who had been seen by a physician provider who no longer was affiliated with her practice. Additionally, Ganesh billed insurers with claims that certain patients were seen twelve to fifteen times in a single month.
On July 13, 2017, a federal grand jury indicted Ganesh and Belcher, charging them with one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); multiple counts health care fraud, in violation of 18 U.S.C. § 1347 and 2; and making a false statement relating to health care matters, in violation of 18 U.S.C. § 1035. The jury convicted Belcher of one count of making a false statement related to health care matters and convicted Ganesh of five counts of health care fraud and five counts of making false statements. The jury acquitted defendants of the remaining counts.
During Ganesh’s sentencing hearing, Judge Koh stated that Ganesh obstructed justice by misrepresenting her understanding of the legal system, the amount of money she was paid by insurers, and whether she understood that it was improper to “upcharge” when submitting claims to insurers. Judge Koh also found that Ganesh had abused a position of trust by submitting the false claims. In addition to the prison term, Judge Koh sentenced Ganesh to a 3-year term of supervised release and ordered the defendant to pay restitution in the amount of $344,916.20. Ganesh will begin serving the prison sentence on November 1, 2018.
On April 4, 2018, Judge Koh sentenced Belcher to a year and a day in prison to be followed by three years of supervised release.
Assistant U.S. Attorneys Patrick Delahunty and Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider and Nina Burney Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Roma Man Sentenced for Hiring Others to Purchase FirearmsRead the Press Release
McALLEN, Texas – A 21-year-old man from Roma has been ordered to federal prison following his conviction for aiding and abetting the making of false statements or representations with regards to firearms records, announced U.S. Attorney Ryan K. Patrick. Alexis Lopez pleaded guilty May 15, 2017.
Today, U.S. District Judge Randy Crane sentenced Lopez to 51 months imprisonment to be immediately followed by three years of supervised release. The sentence was enhanced as the court took into consideration the fact that Lopez recruited and directed three straw purchasers to purchase a total of four .50 caliber rifles on his behalf.
From 2015 to 2017, Lopez and straw purchasers bought a total of 10 firearms, five of which were previously recovered in Mexico. The majority of the firearms were military style firearms. In one instance, authorities recovered a .50 caliber rifle in Mexico within 17 days of its purchase.
During the hearing today, the court heard that the investigation began when a federal firearms license holder (FFL) referred information to law enforcement concerning a suspicious individual believed to be using an assumed name who was attempting to purchase a grenade launcher. Authorities later determined that the individual in question was Lopez.
Lopez has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations jointly conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Purported International Banker Convicted of Investor FraudRead the Press Release
A federal jury convicted a Manhattan Beach, California woman of eight counts of wire fraud yesterday, announced United States Attorney Matthew Schneider. The convictions followed a week-long trial in front of U.S. District Judge Robert H. Cleland.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation and Special Agent in Charge Manny Muriel, Internal Revenue Service-Criminal Investigation Division.
“Our office aggressively investigates and prosecutes people who defraud our citizens through lies and deceit,” stated United States Attorney Matthew Schneider stated. “When investors entrust their hard-earned money to third parties, they should know that their money won’t be stolen. When investors are lied to and taken advantage of, we’ll hold the swindlers accountable for their crimes.”
Gayle Hassan Al-Said, 68, a purported international banker, was found to have defrauded local Detroit investors and used their investment funds for her own benefit. Among the expenditures that Al-Said made using investor funds were purchases at high-end retail stores in Europe, payment for a plastic surgeon, and cash transfers to herself and her family members. Al-Said also used investor funds to make a down payment on a $4 million home and rented a high-end London flat for $16,000/month. She failed to disclose any of these expenditures to the investors, who had been led to believe that their investments would be placed in risk-free trust accounts.
Al-Said also claimed to have high-level connections to the royal family of Saudi Arabia and represented herself to be the chairwoman and chief executive officer of multiple international banks. Evidence at trial demonstrated that these banks were, in fact, shell companies that did not engage in any banking activity.
In total, Al-Said’s fraudulent scheme caused approximately $1.3 million in losses to investors.
Al-Said faces a maximum possible penalty of 20 years’ imprisonment for each count of conviction. Sentencing has been set for January 8, 2019 at 1:30 p.m..
The case was investigated by special agents of the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Stephen L. Hiyama and Andrew J. Yahkind.
Providence Nurse Sentenced for Tampering with OxycodoneRead the Press Release
BOSTON – A licensed nurse was sentenced today in federal court in Worcester for tampering with oxycodone by stealing pills from a nursing home where she worked and attempting to conceal the theft by replacing the medication with other medications.
Charlotte Demers, 37, of Providence, R.I., was sentenced by U.S. District Court Judge Timothy S. Hillman to four years of probation, with the first six months to be served in home confinement. In June 2017, Demers pleaded guilty to four counts of tampering with a consumer product, specifically oxycodone, a narcotic used for pain relief. Demers enrolled in the Court-run RISE program, which she successfully completed.
Between Sept. 12, 2016, and Oct. 8, 2016, while working as a Licensed Practical Nurse at Countryside Health Care in Milford, Mass., Demers tampered with four blisterpacks of oxycodone that had been prescribed for residents of the nursing facility. She removed the oxycodone pills from the blisterpacks, replaced them with other medications that were used to treat other medical conditions, re-sealed the blistercards and put them back on medication carts at the nursing facility.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office prosecuted the case.
The Court-run RISE Program (Repair, Invest, Succeed, Emerge) is designed for individuals who have pled guilty and are under pretrial supervision prior to sentencing. These individuals must apply for admission to the program and be accepted into the program by the U.S. District Court.
Project Huntington Update: Two More Operation Saigon Sunset Defendants Plead GuiltyRead the Press Release
HUNTINGTON, W.Va. – Another two defendants indicted for their roles in a major, multi-state heroin and fentanyl distribution network pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. To date, 11 of the 15 defendants charged in the indictment have entered guilty pleas. The joint investigation was conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Huntington. Detroit. Jacksonville. Canton. Far reaching and netting drug traffickers from across the east coast,” said United States Attorney Mike Stuart. “Operation Saigon Sunset closed down a major drug network. Our message to drug thugs and traffickers? Huntington and West Virginia are CLOSED to hooligans. Stay away or be prepared to join the Peterson gang in a federal prison.”
Willie Peterson, also known as “Chill,” 50, from Detroit, entered his guilty plea to an indictment charging him with conspiracy to distribute 100 grams or more of heroin and a quantity of fentanyl. Peterson admitted that between July 2017 and April 2018 he conspired with individuals to distribute 100 grams or more of heroin and quantities of fentanyl in Huntington, West Virginia. Peterson admitted that he distributed quantities of heroin to his brother, Manget Peterson, also known as “Money,” for him to distribute in Huntington in exchange for money. Individuals in Huntington would send Peterson drug proceeds in Detroit, Michigan from drug sales in Huntington, West Virginia. As part of his plea agreement, Peterson also admitted that in March 2018 he assisted David Miller, also known as “John,” in placing fentanyl and cocaine in a black box and attaching the box to Miller’s vehicle. Miller intended to transport the controlled substances to Huntington for distribution purposes. However, the Michigan State Police conducted a traffic stop on Miller and seized the controlled substances.
Corey Beach, 30, from Jacksonville, Florida, entered his guilty plea to an indictment charging him with conspiracy to distribute heroin. Beach admitted that between October 2017 and January 2018 he conspired with individuals to distribute heroin in Huntington, West Virginia. As part of the plea agreement, Beach admitted that Luther Peterson, also known as “Mook,” told him to deliver heroin to an informant at the Burger King on Route 60 in Huntington, West Virginia.
Willie Peterson faces between 5 years and up to 40 years in prison and Beach faces up to 20 years in prison when they are sentenced on December 10, 2018.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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Owner of Old Town Albuquerque Jewelry Stores Sentenced to Six Months for Fraudulently Selling Filipino-Made Jewelry as Native American-MadeRead the Press Release
ALBUQUERQUE – U.S. District Judge Judith C. Herrera of the District of New Mexico today sentenced Nael Ali, 54, of Albuquerque, N.M., for violating the Indian Arts and Craft Act (IACA) by fraudulently selling counterfeit Native American jewelry as Indian-Made. Judge Herrera sentenced Ali, who previously pled guilty to two felony IACA charges, to six months of imprisonment followed by a year of supervised release. Ali also was ordered to pay $9,048.78 in restitution.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian or Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
“The tremendous contributions made by Native Americans to the cultural and artistic heritage of our nation must be preserved and protected,” said New Mexico U.S. Attorney John C. Anderson. “This case and the continuing investigation demonstrates the Justice Department’s commitment to safeguard the rich culture and heritage of New Mexico’s Pueblos and Tribes while promoting confidence in New Mexico’s rich art market.”
“We applaud the outstanding work conducted by the Office of the U.S. Attorney in District of New Mexico, the U.S. Fish and Wildlife Service Special Agents who conduct Act investigations on behalf of the Board, and all others who have assisted in this landmark case,” said Harvey Pratt, Chairman, Indian Arts and Crafts Board, U.S. Department of the Interior. “Their commitment to combating the onslaught of counterfeit Indian art is to be highly commended. The Board firmly believes that robust Indian Arts and Crafts Act enforcement is imperative to protecting and strengthening Indian Country's economies, artistic traditions, and cultural heritage for both current and future generations.”
“This landmark investigation has brought much needed attention to the rampant problem of counterfeit Native American jewelry and art in the marketplace,” said Edward Grace, Acting Assistant Director of the Office of Law Enforcement for the U.S Fish and Wildlife Service. “We hope today’s sentencings will deter others who would seek to defraud consumers and undermine Native American artists.”
“Native American art is more than stunning jewelry. It also is a critical source of income for the many different tribes that create it and share with the world their culture and history,” said Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division. “The FBI worked closely with our partners on this case, which we hope demonstrates our commitment to protecting one of our country’s most precious resources.”
The charges against Ali and co-defendant Mohammad Manasra, 58, also of Albuquerque, were the result of an ongoing federal investigation led by the U.S. Fish and Wildlife Service (FWS) and FBI into an international scheme to violate the IACA. During a law enforcement operation in Oct. 2015, federal agents executed 15 search warrants in New Mexico and one in California. Eight of the search warrants were executed in Albuquerque including four at retail and wholesale jewelry businesses. In addition, search warrants were executed at three jewelry stores in Gallup, three jewelry stores in Santa Fe, and a jewelry production shop in Zuni. Federal agents also executed a search warrant at a jewelry store in Calistoga, Calif. Three federal seizure warrants also were executed on bank accounts in a Charlotte, N.C., bank and a San Francisco, Calif., bank. In addition, the Philippines National Bureau of Investigations conducted a series of investigative interviews at two factories in Cebu City, Philippines.
Ali and Manasra were charged in Oct. 2015, in a four-count indictment with conspiracy to violate the IACA and three substantive violations of the Act. A superseding indictment was filed in March 2016, charging Ali and Manasra with conspiracy and substantive violations of the IACA, mail fraud, and wire fraud. The superseding indictment charged Ali, the owner of two jewelry stores, Gallery 8 and Galleria Azul, in Albuquerque’s Old Town specializing in Native American jewelry, and Manasra, a wholesaler of Native American jewelry, with violating IACA by conspiring to import and fraudulently sell Filipino-made jewelry as Native American-made.
Ali pled guilty on Oct. 18, 2017, to violating IACA by selling counterfeit Native American-style jewelry out of two retail jewelry stores located in Albuquerque’s Old Town. In entering the guilty plea, Ali admitted selling Native American-style jewelry made by laborers in the Philippines; mixing Filipino-made jewelry with Native American-made jewelry without labeling the Filipino-made jewelry with the country of origin; intentionally stocking the Filipino-made jewelry in a manner that falsely suggested that it was Native-American made; providing lists for the employees to reference symbols and initials to falsely suggest the jewelry was Native American-made; and training employees to tell customers the jewelry was Native American-made.
Manasra pled guilty to a misdemeanor charge of violating IACA on Oct. 5, 2017, and admitted fraudulently selling a Kokopelli pendant and earing set, two rings, a bracelet and an orange cluster pendant to an undercover agent. Manasra acknowledged knowing the jewelry was made in the Philippines even though he intentionally told the undercover agent that the Kokopelli set was “Zuni” and the rings, bracelet and cluster set were “Navajo,” and displaying the Filipino-made jewelry to suggest that it was made by members of federally recognized Indian Tribes. Manasra was sentenced on May 10, 2018, to two days of imprisonment and a year of supervised release. Manasra also was ordered to forfeit 5,268 pieces of Native-American style jewelry and to pay a $500 money judgment.
“HSI will continue to work with our federal, tribal and local law enforcement partners to protect the intellectual property and cultural patrimony of Native Americans,” said HSI Special Agent in Charge Jack P. Staton. “We will be relentless and use our cross-border authority to make sure individuals, who want to profit from crimes such as these, are brought to justice.”
“It was an honor to assist with this unique and important case to help protect something truly exclusive to this region. It has been a recent trend that when our two agencies work together, great things happen,” said Captain Tim Cimbal, Northwest Area Field Operations, State of New Mexico Department of Game and Fish.
The continuing investigation is led by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service and the Albuquerque Division of the FBI with assistance from Homeland Security Investigations (HSI), the Indian Arts and Crafts Board, and the State of New Mexico Department of Game and Fish. The U.S. Marshals Service and DEA assisted in the investigation of this case. The U.S. Fish and Wildlife Service’s Office of Law Enforcement for Region Eight and California Department of Fish and Wildlife provided support in Calistoga, Calif., and HSI provided support in La Habra, Calif. The U.S. Fish and Wildlife Service Attaché for Southeast Asia and the Philippine National Bureau of Investigations provided support in Cebu City, Philippines. Assistant U.S. Attorneys Kristopher N. Houghton and Sean J. Sullivan prosecuted the case and are assisting in the continuing investigation.
Opinion: Prosecutors Need the Tools to Protect Americans from Violent OffendersRead the Press Release
Nothing federal prosecutors do is more important than protecting our fellow Americans from violence. In recent years, however, we have lost one of the most important tools we use to protect our communities: the Armed Career Criminal Act (ACCA). Only Congress can restore the ACCA to help us keep our neighborhoods safe.
The ACCA operated on a simple premise: when a felon is convicted of illegally possessing a firearm, he receives a mandatory fifteen-year sentence if his prior convictions include three or more “violent felonies” or “serious drug offenses.” These “armed career criminals” are not low-level offenders but rather criminals who have already been convicted of multiple serious offenses and then were caught with a firearm. In contrast to those included under the ACCA, lower sentences are given to felons who illegally possess firearms but lack that violent history. Common sense tells us that when a felon with a violent past illegally possesses a firearm, he is extremely dangerous and must be incarcerated. The ACCA was intended to bring that common-sense idea to the law.
For a long time, the ACCA really worked. After a period of increasing violent crime in America, President Reagan signed the ACCA into law in 1984. From 1964 to 1980, the overall violent crime rate tripled in the United States. Robbery crimes and rapes tripled, and murders doubled. Then came the ACCA and other major criminal reforms; the elimination of parole, reform of the bail system, the sentencing guidelines, and better funding for law enforcement. The goal of these reforms was to reduce violent crime, and from 1991 to 2014, violent crime dropped by half. Murders and aggravated assaults dropped by half, while robberies dropped by nearly two-thirds. The ACCA, along with these other reforms, was a resounding success that made our neighborhoods safer.
So what happened to the ACCA? The answer is a 2015 Supreme Court decision called Johnson v. United States. There, the Supreme Court considered whether Samuel Johnson, a white supremacist who admitted to planning acts of domestic terrorism, was properly deemed an armed career criminal after he was found guilty of illegally possessing an AK-47, several other firearms, and 1,000 rounds of ammunition. The Supreme Court concluded that Johnson was not an armed career criminal because his prior conviction for illegally possessing a sawed-off shotgun was not a “violent felony.” Most importantly, in reaching that conclusion the Supreme Court held that part of the definition of “violent felony” in the ACCA was too vague to understand and thus violated the Constitution’s guarantee of due process. As a result, the Court struck that part of the definition from the statute, and now, after Johnson, many of the crimes that once were considered “violent felonies” under the ACCA no longer qualify.
It is no exaggeration to say that Johnson destroyed the common-sense nature of the ACCA. Courts across the country have ruled that many plainly violent crimes are no longer “violent felonies.” Even murder is being challenged in some jurisdictions. Here in North Carolina, our common law robbery crime—taking property from someone by means of violence or fear—is no longer a “violent felony,” nor (believe it or not) is shooting into an occupied building. It just doesn’t make any sense, and clearly no one intended the ACCA to lead to these absurd results.
Because of Johnson, more than 1,400 violent career criminals have been released early, and 600 of those have already been arrested again just three years later. On average, these 600 offenders have been arrested or reoffended three times. As the Attorney General recently stated, “Releasing repeat offenders has consequences.” Those awful consequences have been felt in our communities, such as in Utah, where a career criminal released because of Johnson tortured and murdered two teenagers, and in California, where a career criminal released after Johnson allegedly murdered his father, carjacked a vehicle, and killed the vehicle’s driver.
Just last month in the Eastern District of North Carolina, Charlie O’Bryant Terry was sentenced to twenty years in federal prison for obstruction of justice and illegal possession of a firearm (https://www.justice.gov/usao-ednc/pr/henderson-man-sentenced-20-years-federal-prison-obstructing-justice-and-illegal). This was not Terry’s first federal sentence. In fact, in 2008, Terry had been sentenced under the ACCA to fifteen years in federal prison after pleading guilty to being a felon in possession of a firearm after three prior violent felonies, including two common law robberies. Because of Johnson, in August 2016, Terry’s fifteen-year sentence under the ACCA was vacated when his previous convictions for common law robbery no longer qualified as violent felonies. As a result, Terry was released early and placed on federal supervised release.
In January 2017, a mere five months after his release from custody, Terry struck again, assaulting and robbing a couple at gunpoint. During the assault, Terry placed a pistol in the mouth of one of the victims, and he cut the other victim’s head by repeatedly hitting the victim with the firearm, requiring staples to close the wound. After Terry was arrested in April 2017 for violating his federal supervision, federal agents executed a search warrant for Terry’s cellular telephone and found that Terry had taken several “selfies,” or photographs of himself, with an AR-15 semiautomatic firearm the day prior to his arrest. While in jail, Terry also threatened one of the victims in an effort to change his testimony. Terry received a twenty-year sentence for his post-release conduct, but if his sentence under the ACCA had not been cut short due to Johnson, Terry’s victims would have been safe from his violent criminal behavior in the first place.
Johnson caused these violent offenders to be released early, and going forward federal prosecutors will no longer be able to ensure sufficient sentences for many repeat violent offenders caught illegally possessing firearms. Innocent people will face the tragic consequences that will follow these offenders back to our streets, and the law enforcement officers who protect us will face the danger of confronting and arresting again the same violent felons they already removed from our streets years ago.
But amidst all this bad news, there is still room for something positive: Congress can fix the ACCA. The Supreme Court in Johnson found part of the ACCA’s definition unconstitutionally vague, but the Court left it open to Congress to craft a new definition that avoids these problems. The Attorney General and the Department of Justice have been working with members of Congress to create awareness about this urgent problem. The ACCA focuses on the most dangerous career felons—the kind we can and must take off the streets to protect our communities.
Congress made our nation so much safer in 1984 by passing the Armed Career Criminal Act. Now we need Congress to keep us safe in 2018 by fixing it.