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3 October 2018
U.S. Attorney Announces $493,694 Grant to Wichita PoliceRead the Press Release
WICHITA, KAN. - A $493,694 federal grant will support the Wichita Police Department’s program to work with gun owners and gun dealers to reduce violent crime, U.S. Attorney Stephen McAllister said today.
The grant to the Wichita Police Department comes from the U.S. Department of Justice’s Project Safe Neighborhood program. This week is the one-year anniversary of the revitalized Project Safe Neighborhood program, which is a centerpiece of the Justice Department’s strategy for reducing violent crime.
“The Wichita police have some innovative new ideas for reducing violent crime,” McAllister said. “Our office is working closely with them to coordinate our efforts and make our communities safer.”
Deputy Chief Jose Salcido said the department soon will be announcing a new program to educate the public on what everyone can do to help reduce violent crime by preventing guns from being stolen and used in crimes. The voluntary program also will reach out to gun ranges and gun dealers, he said.
Two men from Toledo indicted for trafficking cocaine; prosecutors seek to forfeit $320,000 in cash that was seizedRead the Press Release
Two men from Toledo were indicted for their roles in a conspiracy to distribute at least five kilograms of cocaine.
Jeffrey A. Geckle, 40, and Scott A. Nigh, 39, were each indicted on one count of conspiracy to possess with intent to distribute cocaine and one count of attempted to possession with intent to distribute cocaine.
Prosecutors are seeking to forfeit approximately $320,000 in cash that was seized on Sept. 18 from Nigh and Geckle, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation in Lima. The case is being handled by Assistant U.S. Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Plead Guilty to Federal Firearm Charges Arising from Lexington County Home InvasionRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Brandon J. Thompson, age 31, and Quintrell Morris, age 19, both of Columbia, plead guilty in federal court. Thompson plead guilty to conspiracy to commit Hobbs Act robbery, use/carry/possess/brandish of firearms during and in relation to and in furtherance of a crime of violence, and felon in possession of a firearm and ammunition, all in violation of Title 18, United States Code, Sections 1951(a), 922(g)(1), and 924(c)(1)(A). Morris plead guilty to conspiracy to commit Hobbs Act robbery, conspiracy to use/carry/possess/brandish of firearms during and in relation to and in furtherance of a crime of violence, use/carry/possess/brandish of firearms during and in relation to and in furtherance of a crime of violence, and felon in possession of a firearm and ammunition, all in violation of Title 18, United States Code, Sections 1951(a), 922(g)(1), 924(c)(1)(A), and 924(o). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty pleas and will impose sentences after she has reviewed the presentence reports, which will be prepared by the United States Probation Office.
Evidence presented in court established that on the early morning hours of December 30, 2017, deputies with the Lexington County Sheriff’s Office responded to a 911 call referencing a home invasion on Maple View Drive. Upon approaching the residence, deputies noticed the door open, entered the home, and found two armed men, Thompson and Morris. After detaining both Thompson and Morris, deputies located a female, who had been tied up, and her children, one of whom had called 911. The female advised that they had forced her to open a safe and give them the money from it. Deputies seized a loaded Smith & Wesson 9mm handgun from Thompson and a loaded Bushmaster .223 caliber rifle from Morris. A ballistic vest was also seized from Thompson’s vehicle, which was located nearby. The investigation revealed that Thompson and Morris went to this home in an effort to rob the homeowners of proceeds from various businesses they operated.
Thompson and Morris are both prohibited under federal law from possessing firearms and ammunition based upon their prior state convictions. Thompson has prior state convictions for armed robbery and assault with intent to kill. Morris, a gang member who was on state probation at the time, has prior state convictions for possession of a stolen motor vehicle and unlawful carrying of a weapon.
Thompson and Morris face the following penalties: a maximum of 20 years imprisonment, a fine of $250,000, and 3 years of supervised release on the Hobbs Act robbery charges; a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge; and a mandatory minimum of 7 years imprisonment and a maximum of life, consecutive to any other term of imprisonment, a fine of $250,000, and 5 years of supervised release on the use/carry/possess/brandish a firearm during and in relation to a crime of violence charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lexington County Sheriff’s Office, and the South Carolina State Law Enforcement Division (SLED) and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Two Pharmacy Technicians Sentenced for Their Roles in Largest Pharmacy Theft in West Virginia HistoryRead the Press Release
CHARLESTON, W.Va. - United States Attorney Mike Stuart announced that Marcia Evans, 60, of Gilbert, and Kimberly McCoy, 43, of Amherstdale, were sentenced for their involvement in the theft of the controlled substance Suboxone. Evans and McCoy were sentenced to 10 and 6 months in prison, respectively. The sentences were imposed by United States District Judge David A. Faber. The investigation was conducted by the Drug Enforcement Administration, with assistance from the West Virginia Board of Pharmacy.
“The sentences imposed are consistent with federal guidelines. The largest pharmaceutical theft in the recorded history of the West Virginia Board of Pharmacy, yet the sentencing guidelines suggested sentences that are comparatively light to other comparable drugs of abuse,” said United States Attorney Mike Stuart. “Suboxone is being abused in record numbers across the country. I have personally requested that the DEA and Department of Justice reconsider the scheduling of Suboxone to a classification that will provide sentences worthy of the danger this drug poses if not used for legitimate medical purposes.”
Evans and McCoy perpetrated what the West Virginia Board of Pharmacy has called the largest pharmacy theft in West Virginia since records have been maintained by the Board. Both Evans and McCoy were previously employed as pharmacy technicians at Riverside Pharmacy in Gilbert. They admitted that from 2014 to September 2016, they conspired with others to take Suboxone and Xanax from the supply at the pharmacy. In order to conceal the shortage of controlled substances, Evans and McCoy manipulated the controlled substance count in the pharmacy’s computers. An audit was performed comparing shipment records with distribution records at the pharmacy, and a shortage of over 23,000 dosage units of Suboxone and over 137,000 dosage units of Xanax was revealed. Evans and McCoy further admitted that they sold some of the Suboxone stolen from the pharmacy.
This case is a result of the work of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Trinity Scott Johnson Sentenced to Serve 17 Years in Prison for Conspiring to Distribute Methamphetamine and Possession of FirearmRead the Press Release
GREENEVILLE, Tenn. – On October 3, 2018, Trinity Scott Johnson, 39, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 17 years in federal prison. Johnson pleaded guilty in July 2018 to conspiracy to distribute over 50 grams of methamphetamine (meth) or “Ice” and possession of a firearm in furtherance of a drug trafficking offense.
In February 2018, following an investigation conducted by the Hamblen County Sheriff’s Department, a suspicious person report to police caused Johnson to be arrested at an unoccupied residence in Morristown, Tennessee. When officers arrived, it appeared that the front door of the residence had been kicked in and Johnson was leaving the residence.
During a consent search of that residence, officers found a plastic grocery bag containing a large sealed bag of meth, a black bag containing four separate bags of meth, a camera case containing another bag of meth, a glass jar containing 15 bags of marijuana, and another separate bag of marijuana. The meth was field tested and weighed 1,169 grams. The marijuana weighed 25 grams. Officers also found drug paraphernalia, digital scales, two pistols, 17 guns, two shotgun barrels, numerous shotgun shells, 9mm rounds, and three .380 caliber rounds of ammunition in the residence. Johnson was interviewed and admitted ownership of the meth.
Johnson said he began using and selling gram quantities of meth in August 2016. After his first supplier was arrested, he found a new supplier who provided him larger quantities of meth. He admitted to purchasing ounce and half-kilogram quantities of meth from his second supplier on multiple occasions for approximately six months. After this supplier was arrested, Johnson found a third supplier who provided half-kilogram quantities of meth. Over the next six months, he purchased multiple half-kilograms of meth from the third supplier, until that supplier was also arrested.
While dealing with the third supplier Johnson met his fourth supplier who sold kilogram and half-kilograms of meth to him. Johnson stated that he always paid cash, $11,000 for a half-kilogram of meth, but could not recall how many times he purchased half-kilograms from this fourth supplier. He estimated he purchased at least 15, but not as many as 20, kilograms of meth from this supplier.
Johnson consented to a search of his residence in Morristown, Tennessee. During that search, officers located a safe in the bedroom closet containing seven guns and ammunition, 13 bags of meth, 12 bags of marijuana, a bag of cocaine, and drug paraphernalia (digital scales, empty bags, pipes). Field weight of the methamphetamine was 175.4 grams, field weight of the marijuana was 194.7 grams, and field weight of the cocaine was 8.1 grams.
All of Johnson’s co-defendants have pleaded guilty to offenses related to this conspiracy and are awaiting sentencing. Truman Lee Jones, 33, of Russellville, Tennessee, is set to be sentenced on November 11, 2018, and faces 10 years to life in federal prison. Amanda Marie Hilton, 36, of Whitesburg, Tennessee, is set to be sentenced on November 19, 2018, and faces five to 40 years in federal prison. Colby McGwire Scarlett, 20, of Morristown, Tennessee, faces 10 years to life in federal prison and is set to be sentenced on January 6, 2019. Jessica James, 30, of Morristown, Tennessee, also faces 10 years to life in federal prison and is set to be sentenced on February 6, 2019. Finally, sentencing for Megan Gilliam, 25, of Morristown, Tennessee, is set for February 11, 2019. She also faces 10 years to life in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and FBI. Assistant U.S. Attorney Robert. M. Reeves represented the United States in court proceedings.
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.
This case was also the result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Three New Jersey Men Arraigned on Mortgage Fraud ChargesRead the Press Release
TRENTON, N.J. – Three New Jersey men – a real estate investor, a builder, and a real estate settlement attorney – were arraigned today on multiple charges in connection with their alleged roles in a mortgage fraud scheme, U.S. Attorney Craig Carpenito announced.
Victor Santos, a/k/a “Vitor Santos,” 58, of Watchung, New Jersey; Arsenio Santos, a/k/a “Gaspar Santos,” 51, of Warren, New Jersey; and Fausto Simoes, 65, of Millington, New Jersey, were charged on Sept. 24, 2018, in a 19-count indictment. They were each charged with one count of conspiring to commit bank fraud. Victor Santos was charged with nine counts of bank fraud and nine counts of making false statements in an application for credit. Arsenio Santos was charged with four counts of bank fraud and four counts of making false statements in an application for credit. Simoes was charged with seven counts of bank fraud and seven counts of making false statements in an application for credit.
All three were arraigned today before U.S. District Judge Michael Shipp in Trenton federal court.
According to documents filed in this case:
From September 2007 through November 2008, Victor Santos, a real estate investor; Arsenio Santos, a builder; and Simoes, a real estate settlement attorney, and others allegedly conspired to fraudulently obtain mortgage loans with a total value of more than $4 million.
Victor Santos, Arsenio Santos, and their conspirators allegedly recruited “straw buyers” –individuals who purchase a property for another in order to conceal the identity of the actual purchaser, usually in exchange for a fee – to purchase properties in Newark.
In exchange for the use of the straw buyers’ identity and credit history, Victor Santos, Arsenio Santos, and others allegedly agreed to pay each of the straw buyers a fee of at least $5,000, provide the straw buyer’s down payment and cash required for closing, secure tenants to lease the purchased property, and make the mortgage payments on each of the fraudulently obtained mortgages. These secret agreements were not disclosed to the bank. Shortly after the properties were acquired the mortgages went into default.
For the three representative schemes highlighted in the indictment, Victor Santos, Arsenio Santos, and their conspirators prepared and submitted mortgage applications containing false information to the bank and obtained loans totaling more than $1.3 million. The conspirators allegedly arranged transactions for the Newark properties whereby the straw buyers would nominally purchase the properties for far more than the sellers had agreed to sell them, and the conspirators diverted excess loan proceeds for their own benefit and to further the conspiracy.
Simoes was the closing attorney on approximately 10 of the fraudulent transactions and signed and certified the final settlement statements. These statements falsely stated that the cash required for closing for each transaction came from the straw buyer. In fact, Victor Santos and his conspirators provided those funds to Simoes and the funds were deposited into Simoes’ attorney trust account. For certain transactions, a shell company – whose bank account was controlled by Victor Santos and a conspirator – and to which funds from fraudulently obtained mortgage loans were disbursed – was the source of the cashier’s checks given to Simoes to fund the straw buyer’s cash required at closing. For other transactions, down payments came from an account owned and controlled by Arsenio Santos or from the proceeds of a previously obtained fraudulent loan.
The conspiracy to commit bank fraud count, the bank fraud counts, and the false statement counts, each carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others whichever is greater.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Acting Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie of the Newark office, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorneys Charlie Divine and Kevin DiGregory of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and the Federal Housing Finance Agency, Office of Inspector General.
Texas Woman Pled Guilty to Conspiracy to Commit Mail and Wire Fraud as Part of Lottery ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEBRA KROM, age 36, a resident of Wylie, Texas, pleaded guilty to one count of conspiracy to commit mail and wire fraud.
According to the Bill of Information filed on February 8, 2018, on or before August 2013, and continuing through December 2015, KROM and others operated a scheme to contact elderly individuals and people with diminished capacity who would be susceptible to being scammed. The scheme involved contacting victims by telephone through Voice over Internet Protocol (“VoIP”) and informing them they had won the Publisher’s Clearing House sweepstakes (“PCH”) or similar lottery and needed to pay KROM and others monies by cash, check, wire, and other methods in order to claim their lottery winnings.
Unknown members of the conspiracy, but believed to be residing in Jamaica, obtained names, addresses, and other biographical information from an unknown source. These individuals used the information to identify victims, telephone them, or directed others to telephone the victims and tell them that they had won the PCH sweepstakes. They needed to send KROM or other co-conspirators money to claim their winnings.
Co-conspirator, Andre Bowyer, charged in case 16-96 “J” in the Eastern District of Louisiana, directed KROM and others residing in the United States, including Alex Saunders, charged in case 18-168 “E”, to open bank accounts in the United States for the purpose of receiving money from elderly victims and transferring the proceeds into Bowyer’s account in Jamaica. It was part of the scheme and artifice to defraud that on certain dates between August 2013 and December 2015, the defendant, KROM, Saunders and others, conspired with Bowyer to accomplish the unlawful scheme of fooling elderly victims into believing they had won a sweepstakes, causing the victims to send money via the United States Postal Service or by wire transfer to KROM, Saunders or others. Immediately after receiving the funds in the mail from the victims, KROM, Saunders, and others transferred the ill-gotten proceeds from their accounts to Bowyer’s account in Jamaica.
KROM is scheduled to be sentenced on February 6, 2019 before United States District Court Judge Sarah S. Vance. She faces a maximum of 5 years imprisonment, a fine of not more than $250,000, supervised release of up to 3 years, and a special assessment of $100.
U.S. Attorney Strasser commended special agents of the United States Secret Service, the United States Postal Inspection Service, and the United States Department of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Sharan E. Lieberman.
Taos County Man Pleads Guilty to Theft and Destruction of U.S. Government Property ChargesRead the Press Release
ALBUQUERQUE – John Vaughn Rohan, 38, of Taos County, N.M., pled guilty yesterday in federal court in Albuquerque, N.M., to theft and destruction of U.S. Government property charges.
Rohan and his co-defendant, Joey Angelo Cruz, 38, of Trampas, N.M., were charged in a six-count indictment filed on Jan. 11, 2018, with three counts of theft of government property and three counts of destruction of government property. The indictment alleged that the defendants committed the offenses by breaking and entering into the Pilar Maintenance Storage Yard, which was maintained by the Bureau of Land Management in Taos County, on Nov. 23, 2016, March 12, 2017, and March 26, 2017. It further alleges that on each date, the defendants stole property valued in excess of $1,000, and destroyed property belonging to the United States.
During yesterday’s change of plea hearing, Rohan pled guilty to one count of theft from the United States and one count of destruction of U.S. property. In entering the guilty plea, Rohan admitted that on March 26, 2017, he broke into a storage container and stole more than $1,000 worth of equipment with the intention of selling the equipment for money. Rohan acknowledged that he later learned that the Bureau of Land Management owns the land he broke into and owned the property he stole.
At sentencing, Rohan faces a statutory maximum penalty of ten years in federal prison and a fine up to $250,000. A sentencing hearing has yet to be scheduled.
Cruz has entered a plea of not guilty to the charges against him. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Bureau of Land Management and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Statement of the U.S. Attorney’s Office and the Bureau of Indian Affairs Office of Justice Services on Actions Needed to Strengthen Rule of Law and Public Safety on the Fort Berthold ReservationRead the Press Release
FARGO – A number of concerns have recently been raised about public safety and criminal investigations on the Fort Berthold Reservation. In response to these concerns, Christopher Myers, U.S. Attorney for the District of North Dakota, and Charles Addington, Director of the Office of Justice Services at the Bureau of Indian Affairs, met in Fargo in September to discuss law enforcement resources and jurisdictional issues on the Fort Berthold Reservation. As a result of this meeting, the BIA is taking steps to enhance investigative resources and will soon increase its staffing levels from one to two investigators.
Both the BIA and Department of Justice are committed to doing their part to improve public safety and conduct effective criminal investigations on the Fort Berthold Reservation. This includes helping to drive down the high rate of violence against women and children and assisting in the active and ongoing investigation into a suspicious death case. However, the BIA and DOJ also recognize the necessary and vital role that tribal law enforcement must play in this process. To that end, the BIA is in communication with tribal law enforcement about how to improve the effectiveness of investigations on the Fort Berthold Reservation. In addition, DOJ is working with the FBI and the Department of the Interior to ensure the prompt provision of investigative resources for serious crimes such as domestic and sexual violence against women and children prevalent on North Dakota reservations.
The Departments of Justice and Interior are working together to deliver training to improve the quality of investigations and coordination among law enforcement agencies and jurisdictions in Indian Country. To provide quality training techniques to law enforcement responsible for conducting criminal investigations in Indian Country, the BIA and FBI have teamed up and developed a nine-day Indian Country Criminal Investigator Training Program. The training program is highly interactive and filled with hands-on labs specific to conducting criminal investigations in Indian Country. In addition, the Department of Justice is identifying training resources that can be brought to the field to improve the capacity of tribal and federal law enforcement to address the situation.
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Statement of Assistant Attorney General Makan Delrahim Before the Senate Subcommittee on Antitrust, Competition Policy and Consumer RightsRead the Press Release
Chairman Lee, Ranking Member Klobuchar, and distinguished members of the Subcommittee, it is an honor for me to appear before you today on behalf of the Antitrust Division of the Department of Justice. I want to thank especially Chairman Lee and Ranking Member Klobuchar for your support of my efforts and those of the Department this past year. I am humbled by your support of my nomination, and am grateful for your public support of our work at the Antitrust Division to fairly and effectively enforce the antitrust laws. I appreciate the important role this Committee plays in our constitutional system of checks and balances. I view my position as the Assistant Attorney General for Antitrust as that of a protector of the rights of all American consumers to the fruits of vigorous competition. Free market competition is a bedrock principle of the American economy, and protecting, preserving and promoting competition through the enforcement of our antitrust laws is a vital function of our government. I, and all employees of the Antitrust Division, are dedicated to carrying out that mission to the very best of our abilities.
The Antitrust Division has been extraordinarily busy in our daily efforts to protect consumers, workers, and entrepreneurs through sound and vigorous antitrust enforcement and competition advocacy throughout the government. My testimony today will review our extensive efforts in criminal and civil enforcement and many of our recent new initiatives to promote competition.
The following are some highlights of the Division’s recent accomplishments and initiatives.
COMPETITION ADVOCACY AND OTHER NEW INITIATIVES:
- Engaged in advocacy regarding antitrust law and intellectual property in the context of standards setting organizations (SSOs): Advocated views on the analysis of antitrust law and intellectual property in the context of the adoption and implementation of SSO-developed standards, so as to maximize innovation incentives.
- Improved consent decree process, including a renewed emphasis on structural relief when possible, and the incorporation of standard provisions in all settlements to make consent decrees more enforceable and less regulatory.
- Announced Office of Decree Enforcement within the Division to better enforce the terms of consent decrees entered into with parties to a merger.
- Strengthened Amicus Program in the Division, and have filed amicus briefs and statements of interest as part of our competition policy and advocacy work.
- Hosted a series of three roundtable discussions this past spring on competition and deregulation. The discussions focused on exemptions and immunities from the antitrust laws, consent decrees, and the consumer cost of anticompetitive regulations. A report on these roundtables is in the process of being published. Planning for additional roundtables and workshops is underway as part of the Division’s competition and advocacy work.
- Promoted competition in the real estate industry by co-hosting a public workshop with the FTC in June to examine recent developments in residential real estate brokerage competition.
- Established James F. Rill Fellowship Program at the Division, and the inaugural fellow is currently being selected.
- Established Jackson-Nash Address Series to recognize the contributions of former Supreme Court Justice Robert H. Jackson and Nobel Laureate economist John Nash, and to honor the speaker, recognizing and celebrating the role of economics in the mission of the Division.
CIVIL HIGHLIGHTS:
- Protected and Restored Competition in a Number of Key Industries Impacting American Consumers and obtained significant civil settlements. A few of the markets impacted by the Division’s efforts include crop protection chemicals and seed treatments (one of the largest ever merger divestitures), radio stations, nationwide telecommunication fibers, and entertainment.
- Litigated matters in industries ranging from nuclear waste management and hospitals to aviation fuel products.
- Litigated first vertical merger case to judgment in 40 years in United States v. AT&T/DirecTV and Time Warner—what some in the press have dubbed the “antitrust trial of the century”—which continues on appeal.
- Launched Judgment Termination Initiative involving a comprehensive review of nearly 1,300 legacy judgments and filing motions in courts across the country to terminate ones that no longer serve to protect competition.
- Opened review of Paramount Consent Decrees, which have regulated how certain movie studios distribute films to movie theatres since the Supreme Court’s decision in United States v. Paramount, 334 U.S. 131 (1948).
- Modernizing merger review process, with recent announcement of series of improvements to enhance and speed up the merger review process.
CRIMINAL HIGHLIGHTS:
- Investigated and prosecuted criminal antitrust violations across many sectors of the economy, with over $3.243 billion in criminal fines imposed in FYs 2016-17. In fiscal year 2017, investigated and prosecuted individual cases that resulted, in the highest number of individuals sentenced to prison terms since 2012. (30 individuals were sentenced to prison terms in FY 2017.)
- Devoted substantial resources to individual prosecutions and sentencings.
- Over FYs 2016-17, 52 defendants in Antitrust Division cases have been sentenced to prison terms, totaling 15,110 days of incarceration.
- Many of the Division’s individual convictions were the result of investigations into anticompetitive conduct at public real estate foreclosure auctions. This conduct was widespread and harmed homeowners and others.
- Trial due to start on October 9 in a price-fixing case against three traders from major banks, who are charged with manipulating the foreign currency exchange spot market for U.S. dollars and Euros. This follows corporate pleas in 2015.
- A record-setting number of criminal cases (nine) went to trial in FY 2017—the highest number in the last two decades.
- Actively engaged in outreach and training for agents at offices of inspectors general at numerous federal agencies. Such engagement and training arms these agents with the ability to detect and report antitrust crimes. In many instances these agencies also join our investigative efforts.
- Implemented no-poach initiative, investigating and prosecuting “no-poach” and wage-fixing agreements.
- Updated Leniency Program information designed to increase transparency and self-reporting of cartel behavior.
- Held a public roundtable discussion on “the role that corporate antitrust compliance programs play in preventing and detecting antitrust violations and ways to further promote corporate antitrust compliance.”
- Hosted event on the 25th anniversary of the Division’s Leniency Program
INTERNATIONAL HIGHLIGHTS:
- Established Antitrust Division International Working Group, with representation from each section within the Division, with the goal of learning about new and ongoing international issues and discussing best practices.
- Increased International Engagement
- Advanced a core set of procedural norms through the Multilateral Framework on Procedures in Competition Law Investigation and Enforcement (or “MFP”), working in partnership with leading antitrust agencies around the world.
- Led the Department’s NAFTA negotiation team and continue to serve as the Departmental point on trade coordination issues.
- Promoted effective enforcement of antitrust and competition laws across the globe, visiting or hosting agencies in the following jurisdictions to discuss enforcement: Argentina, Australia, Brazil, Canada, China, the European Union, Germany, Hong Kong, India, Korea, Mexico, and the United Kingdom.
- Coordinated 21 technical assistance programs in FY 2018 to such diverse jurisdictions as Australia, El Salvador, Guatemala, Georgia, Honduras, Hungary, Hong Kong, India, Ireland, Korea, Mexico, the Philippines, Ukraine, and Vietnam. All but three of these programs were financed from outside sources (e.g., USAID, OECD, or the local competition authority) and many of them were coordinated with the FTC.
- Engagement in the Division’s Visiting International Enforcers’ Program (VIEP), a two-week intensive exchange program for senior agency personnel designed to deepen institutional and personal ties with our foreign counterparts.
Criminal Enforcement
The Division investigated and prosecuted antitrust violations across many sectors of the economy, with over $3.243 billion in criminal fines imposed in FYs 2016-17. In the most recent fiscal year, the Division investigated and prosecuted individual cases that resulted in the highest number of individuals sentenced to prison terms since 2012. The Division also has made efforts to increase self-reporting of cartel behavior through its clarification of its amnesty program.
Criminal enforcement has long been a vital tool to protect competition and consumers. The Sherman Act has been a criminal statute ever since it was signed into law in 1890. Antitrust violations such as price-fixing, bid-rigging, and market allocation unambiguously disrupt the integrity of the competitive process, harm consumers, and reduce faith in the free market system. Such harmful agreements among competitors are subject to a rule of per se illegality, and individuals who engage in such conduct appropriately face criminal accountability along with the corporations they serve. At the Division, we focus our criminal enforcement efforts on holding culpable corporations and individuals accountable, including high-level executives.
In an important example, the Division brought charges against and obtained guilty pleas from executives of a generic pharmaceutical company for price fixing, bid rigging, and customer allocation for an antibiotic and a drug used to treat diabetes. (E.g., Plea Agreement, U.S. v. Glazer, 2:16-cr-00506 (E.D. Pa. Jan. 9, 2017), /media/876731/dl?inline.) It is particularly galling that, when healthcare prices in the United States are already high, certain corporations and executives engaged in anticompetitive activities at the expense of individuals who depend on critical medications.
In another area that has a profound impact on American consumers, the Division actively prosecuted bid rigging and fraud relating to real estate foreclosure auctions. To date, 138 individuals and 3 companies have been charged as a result of the Division’s investigations of bid rigging and fraud relating to real estate foreclosure auctions in California, Alabama, North Carolina, Georgia, and Mississippi. (E.g., Press Release, U.S. Dep’t of Justice, Seventh Mississippi Real Estate Investor Pleads Guilty to Conspiring to Rig Bids At Public Foreclosure Auctions (July 19, 2018), https://www.justice.gov/opa/pr/seventh-mississippi-real-estate-investor-pleads-guilty-conspiring-rig-bids-public-foreclosure.) On an individual basis, each of these cases is relatively small, but on an aggregate basis, these cases are important to the economy, particularly because the convicted investors subverted competition and lined their pockets by illegal bid rigging and fraud while diverting money from the homeowners and mortgage holders entitled to any proceeds.
The Division has many open criminal investigations. The Division is trying more criminal cases than ever before and obtaining more prison sentences for individuals than in recent years. Corporate leaders and business executives who consider deviating from the rules of our free enterprise system should take notice.
Moreover, the American public should know that the Antitrust Division is looking out for their salaries, as well. We have put employers on notice that agreements between employers that eliminate competition for hiring employees in the form of no-hire or non-solicitation agreements (often referred to as “no-poach” agreements) are per se violations of the Sherman Act when they are not ancillary to legitimate collaborations. In October 2016, the Division reminded the business community that no-poach and wage-fixing agreements can be prosecuted as criminal violations when they are not reasonably necessary to a separate, legitimate transaction or collaboration between employers. As a matter of prosecutorial discretion, the Division will pursue no-poach agreements terminated before October 2016 through civil actions. Defendants should anticipate potential criminal enforcement actions for any such naked no-poach agreements we uncover that post-date our October 2016 guidance, although we reserve discretion as appropriate in making our ultimate determinations.
The Division will continue to be diligent in detecting and deterring collusion that harms American consumers, and we will remain focused on crucial industries that affect Americans deeply, such as real estate, food, financial services, and health care, just to name a few.
Civil Enforcement
Our merger review program is perhaps the best known of the Division’s many functions, as key mergers generate not only extensive media interest but also typically touch the everyday lives of the American public. Protecting American consumers and businesses from anticompetitive mergers is an essential element of the Division’s mission.
The Division has been confronting huge mergers that cover large swaths of the U.S. economy that touch nearly every consumer, including telecommunications and entertainment (AT&T/Time Warner), agriculture (Bayer/Monsanto, Dow/Dupont), and health care (CVS/Aetna), among many others. We invest large portions of our limited resources to evaluate these massive transactions to ensure that consumers remain protected and competition is preserved. As a result, we have been extraordinarily busy in our merger review program.
One prominent example of our efforts on behalf of the American consumer is our review and challenge of AT&T’s $108 billion acquisition of Time Warner, one of the largest transactions in U.S. history. After the matter did not settle, we litigated in the district court for the District of Columbia the first vertical merger case that went to judgment in 40 years. We have appealed the district court’s decision and are proceeding before the Court of Appeals for the District of Columbia Circuit on an expedited review schedule. (Proof Brief of Appellant United States of America, U.S. v. AT&T Inc., No. 18-5214 (D.C. Cir. Aug. 6, 2018), /media/973241/dl?inline.)
AT&T/Time Warner is only one of the mega-mergers we have focused on in the past year. In May, in response to Bayer’s proposed $66 billion acquisition of Monsanto, we secured a $9 billion divestiture to protect consumers. (Competitive Impact Statement, U.S. v. Bayer AG & Monsanto Co., No. 1:18- cv-01241 (D.D.C. May 29, 2018), /media/954026/dl?inline.) Bayer and Monsanto were two of the largest agricultural companies in the world, and they competed to provide farmers with a broad range of seed and crop protection products. After a thorough investigation, we concluded that the proposed merger would have likely resulted in higher prices, lower quality, and fewer choices to farmers, and ultimately American consumers, across a wide array of seed and crop protection products. The merger also threatened to stifle the innovation in agricultural technologies that has produced significant benefits to American farmers and consumers.
We were able to negotiate appropriate solutions to those competitive problems, including divestitures to BASF, a global chemical company with a multi-billion-dollar crop protection business. Through these divestitures, we achieved a robust structural solution that preserves competition from horizontal and vertical concerns raised by the merger. The settlement also addressed incentives to compete through innovation by requiring divestitures of certain intellectual property and research capabilities. These innovation-focused divestitures include “pipeline” R&D projects and Bayer’s nascent “digital agriculture” business. The settlement also reflected important efforts to strengthen the enforceability and effectiveness of our consent decrees.
In another large agricultural matter, the Division obtained important divestitures associated with Dow’s acquisition of DuPont. (Competitive Impact Statement, U.S. & Plaintiff States v. Dow Chemical Co. & E.I. Du Pont de Nemours & Co., No. 1:17-cv-01176 (D.D.C. June 15, 2017), /media/900176/dl?inline.) The Division’s structural remedies were focused on preserving viable, ongoing businesses that preserve needed competition in the agricultural sector.
For the foreseeable future, the Division’s merger enforcement activities will continue ahead at full steam. We continue to vigorously enforce the laws and review pending transactions in order to preserve robust competition for the millions of Americans who rely on private health insurance products.
I would note that these efforts, especially when we pursue litigation against very large mergers, which often involve threats to competition in multiple markets, are resource intensive. Not only do they require substantial devotion of personnel, but they also require increasingly large outlays for experts and document review.
Thanks to the hard work and dedication of the Antitrust Division staff, we have often been able to resolve large and significant transactions within six months, as illustrated in the recent Disney/Fox and Cigna/Express Scripts investigations. Nonetheless, doing all we can to modernize and speed up the process of merger review is a worthy goal. To that end, I recently announced a series of changes in how we approach the merger review process at the Division. As part of this improved process, we will post a model voluntary request letter and a model timing agreement on our website. Going forward, we will also make some changes to what we generally agree to in timing agreements. We will generally seek to collect documents from fewer custodians and to take fewer depositions. Provided the parties agree to faster and earlier productions, make certain commitments on privilege, and agree to longer post-complaint discovery (if necessary), we will shorten the time from the parties certifying compliance to the Division making a decision to 60 days or less, with the proviso that the responsible deputy can extend that time period if he or she deems it necessary. With respect to Civil Investigative Demand enforcement, we will bring enforcement actions if necessary to ensure timely and complete compliance. We are also withdrawing the 2011 Policy Guide to Merger Remedies. The 2004 Policy Guide to Merger Remedies will be in effect until we release an updated policy. (Makan Delrahim, Assistant Att’y Gen., Antitrust Div., U.S. Dep’t of Justice, It Takes Two: Modernizing the Merger Review Process, Remarks as Prepared for the 2018 Global Antitrust Enforcement Symposium (Sept. 25, 2018), /media/977416/dl?inline.)
In addition to our merger review program, the Division also expends substantial resources investigating and, when appropriate, challenging non-merger conduct that may have the unlawful effect of depriving consumers of the fruits of robust competition. Some of these conduct issues are straightforward applications of antitrust principles. For example, the Division has successfully challenged unlawful agreements among South Central Michigan hospitals to not market their services to customers in each other’s territories. In February, following almost three years of litigation, the Division entered into a resolution of its litigation with the last of these hospitals: Henry Ford Allegiance Health (“Allegiance”), which operates a 475-bed hospital in Jackson County, Michigan. (Competitive Impact Statement, U.S. & Mich. v. W.A. Foote Mem’l Hosp. D/B/A Allegiance Health, No. 5:15-cv-12311 (E.D. Mich. Feb. 27, 2018), /media/941606/dl?inline.)
Some conduct issues are complex and require close study for when and how they affect competition and how they should be analyzed under the antitrust laws. For example, I have given speeches focusing on how policies adopted by a standards setting organization (SSO) should ensure that a diversity of views are represented, that patent holders have adequate incentives to innovate and create new technologies, and that licensees have appropriate incentives to implement those technologies. (E.g., Makan Delrahim, Assistant Att’y Gen., Antitrust Div., U.S. Dep’t of Justice, The “New Madison” Approach to Antitrust and Intellectual Property Law (Mar. 16, 2018), https://www.justice.gov/opa/speech/assistant-attorney-general-makan-delrahim-delivers-keynote-address-university.) Because SSOs can promote innovation but also provide opportunities for competitors to harm competition, it is critical to examine closely the proper role of antitrust law and take enforcement or advocacy efforts that appropriately maximize incentives for innovation.
Along with our specific enforcement actions, the Division continues to pursue policy initiatives to strengthen our civil enforcement program. One such initiative is to streamline and improve the Division’s use of consent decrees and other remedies, guided by the view that antitrust enforcement is law enforcement, not regulation. (See Makan Delrahim, Assistant Att’y Gen., Antitrust Div., U.S. Dep’t of Justice, Remarks at the Antitrust Division's Second Roundtable on Competition and Deregulation (Apr. 26, 2018), https://www.justice.gov/opa/speech/assistant-attorney-general-makan-delrahim-delivers-remarks-antitrust-divisions-second.) The Division will favor structural relief such as divestitures that rely on free market competitive processes to remedy competitive concerns with a merger rather than behavioral relief that regulates conduct. Doing so places risks of failure on the merging parties and relies on ongoing mechanisms to enforce settlement terms.
A crucial aspect of a consent decree is the ability to enforce it to ensure that the remedy that was necessary to preserve competition is fully implemented. In that regard, we have implemented a number of changes in the Division’s practices to strengthen our ability to ensure decree compliance. First, we are now incorporating a set of provisions as standard improvements in our consent decrees that will make decrees more enforceable. Under these provisions, negotiated with the settling parties, the Division may establish a violation of a consent decree by a preponderance of the evidence (rather than the more exacting clear and convincing evidence standard), thereby using the same standard in a decree violation lawsuit that applies to proving liability in a civil antitrust case in the first instance.
Another of the new provisions permits the government to apply for an extension of a decree’s term if the court finds a violation of the decree. An additional new term requires defendants to reimburse the taxpayers for attorneys’ fees, expert fees, and costs incurred in connection with any consent decree enforcement effort. After a certain number of years, typically five, another new provision gives the Division the ability to terminate a decree upon notice to the court and defendants if it concludes in its discretion the decree is no longer necessary to protect competition. We are also establishing a new Office of Decree Enforcement in the Division to dedicate Division personnel to ensuring proactive enforcement of consent decrees.
Last, but not least, we are in the midst of a robust effort to review nearly 1,300 so-called “legacy” judgments, some of which date back about a century. Our review considers changes in industry conditions, changes in economics, and changes in law to determine whether these decrees are necessary to protect competition and consumers. Some of them may be affirmatively harmful to competition. We have begun the process of filing motions in federal district courts to terminate decrees that are no longer needed to protect competition. In August, the D.C. District Court granted our first motion to terminate 19 such judgments. (Order Terminating Final Judgments, U.S. v. American Amusement Ticket Manufacturers Association, 1:18-mc-00091-BAH (D.D.C Aug. 15, 2018), /media/1183021/dl?inline.) This ongoing effort will continue to identify and eliminate unnecessary restrictions on individuals and businesses who remain subject to legacy decrees so that we may better focus the Division’s resources and attention on protecting competition.
As part of this effort, we also announced our review of the Paramount Consent Decrees, which for over seventy years have regulated how certain movie studios distribute films to movie theatres. The public is invited to comment on the Paramount Consent Decrees until the comment period closes tomorrow, October 4. (Press Release, U.S. Dep’t of Justice, Department of Justice Opens Review of Paramount Consent Decrees (Aug. 2, 2018), https://www.justice.gov/opa/pr/department-justice-opens-review-paramount-consent-decrees.)
Policy and Program Initiatives
Apart from our direct enforcement efforts, the Division has implemented a wide range of initiatives designed to advance competition both nationally and internationally. These efforts do not always draw the same interest as our enforcement cases, but can be just as essential, if not more so, to our efforts to protect American consumers and businesses. I will discuss briefly a few of them.
International: Multilateral Framework on Procedures
Today, companies must regularly navigate the antitrust and competition enforcement authorities that now exist across the globe. To promote competition and due process, the United States regularly reaches out to our international counterparts in efforts to harmonize practices around those that best promote competition and to help ensure that competition laws around the world are enforced efficiently, effectively, and fairly. In June, the United States, in partnership with leading antitrust agencies around the world, advanced an effort to better align with one another on a core set of procedural norms through the Multilateral Framework on Procedures in Competition Law Investigation and Enforcement (or “MFP”). (See Makan Delrahim, Assistant Att’y Gen., Antitrust Div., U.S. Dep’t of Justice, Remarks on Global Antitrust Enforcement at the Council on Foreign Relations (June 1, 2018), https://www.justice.gov/opa/speech/assistant-attorney-general-makan-delrahim-delivers-remarks-global-antitrust-enforcement.) We are working closely with our international colleagues to achieve consensus on, and publicly commit to, fundamental procedural protections necessary to ensure due process such as non-discrimination, transparency, timely resolution, confidentiality, conflicts of interest, proper notice, opportunity to defend, access to counsel, and judicial review.
Given the complex array of antitrust issues we address with our sister competition agencies across the globe, we are also improving the way we tackle these issues internally. For example, we established formal internal working groups that incorporate staff from all sections in the Division. These working groups meet regularly, sometimes with input from outside speakers. The goal is to learn about new and ongoing international issues, share ideas, discuss best practices, forge consensus, and identify the people and resources that can help address these challenges.
Appellate: Amicus Initiative
The Division has recently expanded our amicus program to increase our participation in private litigation not only in the Supreme Court, but at the district and appellate courts as well. In that way, we can more proactively and more effectively promote appropriate use of antitrust and competition principles across the judiciary. So far, in 2018, the Division has filed five statements of interest at the district court and five amicus briefs in an appeals court in cases where the United States is not a party, as compared to just two amicus briefs in 2017.
Thought Leadership
Through workshops and roundtables, the Division provides a forum for industry participants, academics, consumer advocates, and other interested parties to discuss important developments in particular business sectors, the appropriate scope of various legal doctrines, or recent advancements in our understanding of relevant economic principles.
On three dates this spring, the Division held a series of public roundtable discussions to explore the relationship between competition and regulation and its implications for antitrust enforcement. (Public Roundtable Discussion Series on Regulation & Antitrust Law, Antitrust Div., U.S. Dep’t of Justice, https://www.justice.gov/atr/CompReg (last updated June 25, 2018).) Specific issues included exemptions and immunities from the antitrust laws, the most effective and appropriate scope for consent decrees, and the consumer costs of anticompetitive regulations. Our speakers spanned a diverse range of policy perspectives and stakeholder viewpoints. These were fruitful discussions that are already shaping our actions at the Division, such as recent improvements to the Division’s consent decree practices.
Moreover, in April, the Division hosted a public Roundtable on Criminal Antitrust Compliance to engage with inside and outside corporate counsel, foreign antitrust enforcers, international organization representatives, and other interested stakeholders on the topic of criminal antitrust compliance. (Public Roundtable on Criminal Antitrust Compliance, Antitrust Div., U.S. Dep’t of Justice, https://www.justice.gov/atr/public-roundtable-antitrust-criminal-compliance (last updated Sept. 10, 2018).) More than 100 participants attended and discussed the role that antitrust compliance programs play in preventing and detecting criminal antitrust violations, and ways to further promote corporate antitrust compliance.
In June, the Division also held a joint workshop with the FTC on competition in residential real estate brokerage markets. (Public Workshop: What’s New in Residential Real Estate Brokerage Competition, Antitrust Div., U.S. Dep’t of Justice, https://www.justice.gov/atr/events/public-workshop-competition-real-estate (last updated June 25, 2018).) The workshop drew a diverse array of industry participants, thought leaders, and stakeholders. This is a sector that has merited recent competition advocacy from the Division to state officials, and the diverse viewpoints from the workshop will inform the Division’s advocacy and enforcement efforts going forward. We continue to closely monitor industry developments and the state of competition.
In addition to workshops and roundtables, the Division has also established the Jackson-Nash Addresses, a new lecture series to inspire and educate Division staff and the public about cutting-edge issues and developments in the field. (Press Release, U.S. Dep’t of Justice, Antitrust Division Establishes the “Jackson-Nash Address” and Announces Professor Alvin Roth as Inaugural Speaker (Feb. 8, 2018), https://www.justice.gov/opa/pr/antitrust-division-establishes-jackson-nash-address-and-announces-professor-alvin-roth.) Through extraordinary, distinguished guest speakers, we recognize and celebrate the role of economics in advancing the objectives of the antitrust laws and the mission of the Division. In so doing, the series will honor the weighty contributions to the field of antitrust from former Supreme Court Justice Robert H. Jackson and Nobel laureate economist John Nash. We were proud to have our inaugural address feature Alvin Roth, also a Nobel Prize winning economist, who is lauded for his important contributions to game theory and market design that shaped the way medical students are matched with residency programs and patients are matched with kidney donors. Our second address featured George Akerloff, another Nobel Prize winning economist, who is lauded for his important contributions to markets characterized by asymmetric information, such as markets for lemons, and John Q. Barrett, a professor of law at St. John’s University who is writing a biography on Justice Jackson.
Looking to the Future
It is indeed an exciting time to be at the Antitrust Division as we work to achieve important results for American consumers. One of the not-so-secret secrets to our success is our talented and devoted staff. It is critical that the Division continues to attract and retain bright, talented, and passionate individuals—whether they be attorneys, economists, paralegals, or support staff.
One way we will draw talent is through the recently established James F. Rill Fellowship Program. (The James F. Rill Fellowship, Antitrust Div., U.S. Dep’t of Justice, https://www.justice.gov/oarm/james-f-rill-fellowship (last updated Aug. 13, 2018).) The Fellowship is designed to provide elite candidates of the Honors Program with a special opportunity to participate in antitrust enforcement actions and in the development and implementation of antitrust policy. I feel fortunate that through this fellowship I can honor one of the greats in the antitrust field, a man whose contributions span public service and private practice, administrations of all stripes, and the field of competition law not just domestically but across the globe. I hope that the fellowship will draw future great contributors to the field of antitrust. I look forward to working with this Committee on finding further means to ensure the Antitrust Division has the resources and talent it needs to protect and promote competition.
Conclusion
I have been the AAG of the Antitrust Division for one year and one week now, and it has been an exhilarating experience. I am honored to have the support of this Committee, and to be working with the dedicated women and men of the Antitrust Division to protect American consumers. We have done much, but much more remains to be done. I look forward to the coming challenges, knowing the importance of our work.
Mr. Chairman, thank you for the opportunity to speak here today. I look forward to further discussion of these issues.
Springdale Man Sentenced to over 6 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jose Adilio Mancia-Sandoval, age 29, of Springdale, was sentenced today to 78 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in the summer of 2015, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in Northwest Arkansas by Mancia-Sandoval. In May of 2016, the DEA arranged and conducted a controlled purchase of methamphetamine from Mancia-Sandoval in Springdale, Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 53.0 grams of actual methamphetamine.
Mancia-Sandoval was indicted by a Federal Grand Jury in October 2017 and entered a guilty plea in March 2018.
This case was investigated by the Drug Enforcement Administration (DEA). Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Six Massachusetts Jurisdictions Awarded over $3 Million in Federal Grants to Support School SafetyRead the Press Release
BOSTON – The Department of Justice announced today that six Massachusetts jurisdictions will receive over $3 million in grant funding to bolster school security, educate and train students and faculty and support law enforcement officers and first responders who arrive on the scene of a school violence incident.
“President Trump and his administration will ensure the safety of every American school,” Attorney General Jeff Sessions said. “Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”
“There is no greater priority than preventing violence in schools and keeping students safe,” said United States Attorney Andrew E. Lelling. “Schools should be a safe haven for young people, but as recent events across the country have demonstrated, schools are increasingly becoming targets. These awards will provide new technology for reporting systems and other threat deterrent measures, and create school safety training and education programs for school administrators, staff, students and first responders.”
The Justice Department is awarding more than 220 grants, through three funding sources, to jurisdictions across the country to help make schools more secure:
- STOP School Violence Threat Assessment and Technology Reporting Program: The Massachusetts Executive Office of Public Safety and Security (EOPSS) will receive $750,000 to establish regional threat assessment teams, which will involve collaboration among the Commonwealth’s public safety, public health and public education disciplines. The City of Fitchburg, through its police department, will receive $57,364 to solicit professional development training opportunities related to threat assessment team training; to host monthly debriefings regarding concerning issues and behaviors at the schools; and to evaluate the security measures of each school, which will include a detailed assessment of each campus and recommendations for improvements. They will also receive $13,300 to implement anonymous tip reporting software throughout the Fitchburg Public School District over a two year period.
- STOP School Violence Prevention and Mental Health Training Program: The Massachusetts Attorney General’s Office (MAGO) will receive $1 million to provide school violence and suicide prevention trainings to school districts across the state. The MAGO will partner with Sandy Hook Promise (SHP) to train and educate students and educators in the three Know the Signs violence prevention programs; to re-train students, educators, and schools to provide ongoing support; to create a school and parents’ resource guide of available mental health services in Massachusetts for young people and information on the warning signs of mental illness; and to collect data on all training and education sessions. With grant funding, the MAGO and SHP will be able to train participants in at least 50 school districts, encompassing over 260 schools and almost 140,000 students in grades 6-12.
- COPS Office School Violence Prevention Program (SVPP): The cities of Fitchburg, Lowell, Revere and Westfield will receive grants to fund school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence, and technology for expedited notification of law enforcement during an emergency.
The grants are authorized by the STOP School Violence Act, which is intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
Addition information on the grant announcements is available here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program.
Several men indicted on federal firearms charges as part of program focused on domestic abusers with gunsRead the Press Release
Several people with domestic violence convictions have recently been indicted in federal court as part of an emphasis on keeping firearms out of the hands of domestic abusers.
Among those charged with firearms offenses: William G. Smith III, 33, of Ravenna; Edward Kennerly, 46, of Cleveland; Antonio Stewart, 30, of Lorain; Elijah Harder, 23, of Cleveland; Steven Kennedy, 29, of Euclid; Jason Calton, 44, of Liberty Center.
“The law is clear: if you have been convicted of domestic violence, even a misdemeanor, or have an active protection order, you are not allowed to have a gun,” U.S. Attorney Justin Herdman said. “Data tells us that more than half of all women homicide victims were killed by their partners. We also know one of the greatest risks for police officers is responding to a domestic disturbance. These indictments will help make our community safer.”
“We should all feel safe in our homes, with our families, friends, and loved ones,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “It is a breach of trust when family members suffer violence at the hands of those they trust most. ATF will continue to work with our law enforcement partners to ensure that those who break that trust while using firearms face the full consequences of their actions.”
Federal prosecutors in recent months have met with police, local prosecutors and domestic violence advocates to discuss filing more federal indictments for domestic abusers found to be in possession of firearms.
A study by the Centers for Disease Control released in July showed more than 55 percent of the deaths of women came at the hands of an intimate partner. The study examined more than 10,000 homicides between 2003 and 2014.
Additionally, several police officers killed in the line of duty recently in Ohio were killed while responding to domestic violence calls.
This enforcement initiative is part of Project Safe Neighborhoods (PSN), which one year ago Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Smith had a SCCY 9mm pistol, a Remington .22-caliber rifle, a Masterpiece Arms .45-caliber pistol, a Ruger 5.56-caliber rifle , a Glock .45-caliber pistol and a Romarm Cugir 7.62-caliber rifle earlier this year, despite a previous conviction for domestic violence, according to court documents.
Kennerly attempted to buy a Mossberg 12-gauge shotgun from Gold Star Pawn & Gun in Eastlake last year. Kennerly made false statements in an effort to acquire the shotgun, including that he was not under a restraining order from the court barring him from contact with his intimate partner and that he was not under indictment for domestic violence, according to court documents.
Stewart had a CN Romarm 7.62-caliber assault rifle, a Smith & Wesson 9 mm handgun, another Smith & Wesson handgun and ammunition in August, despite a conviction for domestic violence, according to court documents.
Harder possessed a Derringer Corp. GE, Model CB9 pistol in May after having been convicted of domestic violence, according to court documents.
Kennedy in August possessed a Smith & Wesson .40-caliber pistol and ammunition despite a previous conviction for domestic violence, according to court documents.
Calton possessed a Harrington & Richardson .22-caliber revolver last year, despite a previous conviction for domestic violence, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Scranton Man Indicted on Drug Trafficking and Ammunition ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lamarr Adams, age 31, of Scranton, Pennsylvania, was indicted on October 2, 2018, by a federal grand jury on drug trafficking and ammunition charges.
According to United States Attorney David J. Freed, the indictment alleges that Adams conspired to distribute and possess with intent to distribute over 500 grams of cocaine between February 1, 2018 and September 25, 2018, in Scranton, Pennsylvania. The indictment also alleges that Adams possessed ammunition when he is prohibited because of a prior felony conviction.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Scranton Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Savannah-Chatham County awarded nearly $500,000 in DOJ grantsRead the Press Release
WASHINGTON – Southern District U.S. Attorney Bobby L. Christine joined the Department of Justice in announcing more than $70 million in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident, including $306,911 for Chatham County and $187,500 for the Savannah-Chatham Board of Education Police Department.
These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.
“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”
“Our office is dedicated to eliminating violent crime throughout the Southern District of Georgia, and early intervention is a key component of reducing violence,” said Bobby L. Christine, U.S. Attorney for the Southern District. “These substantial grants will provide valuable assistance in Savannah-Chatham as we work to make our schools safer and thus help make all our communities safer.”
The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.
- The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency. Chatham County is receiving $306,911 from this program.
- BJA’s STOP School Violence Prevention and Mental Health Training Program will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million, including the $187,500 award to Savannah-Chatham schools.
- The STOP School Violence Threat Assessment and Technology Reporting Program, also managed by BJA, will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program. These grant programs help states automate and upgrade records accessed by the firearms background check system. This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
The Department is also investing more than $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.
For addition information on these grant announcements, visit www.bja.gov or www.cops.usdoj.gov.
NOTE: The breakdown of the STOP School Violence Grants can be found here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Rosebud Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Garrett Alan Heck, age 23, was indicted on September 11, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 28, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Heck was convicted of Aggravated Sexual Abuse in July 2012. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 27, 2018, and July 2018, Heck, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Heck is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Heck was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Richmond County Board of Education Awarded DOJ GrantRead the Press Release
WASHINGTON – Southern District U.S. Attorney Bobby L. Christine joined the Department of Justice in announcing more than $70 million in grant funding to bolster school security, educate and train students and faculty, and support law enforcement officers and first responders who arrive on the scene of a school violence incident, including $250,000 for the Richmond County Board of Education.
These grants are in addition to the funding to the National Association of School Resource Officers (NASRO), announced by Attorney General Sessions last week, to expand and update their curriculum to better support training programs. These grants combined will better protect students, teachers, faculty, and first responders across the United States. Additionally, the Department is awarding more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems, which will help law enforcement and increase the effectiveness of background checks.
“President Trump and his administration will ensure the safety of every American school," Attorney General Jeff Sessions said. "Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence. Today I am announcing $70 million in these grants to hundreds of cities and states across America. These grants will go a long way toward giving young people and their families both safety and peace of mind.”
“Our office is dedicated to eliminating violent crime throughout the Southern District of Georgia, and early intervention is a key component of reducing violence,” said Bobby L. Christine, U.S. Attorney for the Southern District. “This substantial grant will provide valuable assistance in Richmond County as we work to make our schools safer and thus help make all our communities safer.”
The Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and the Office of Community Oriented Policing Services (COPS Office) together are making more than 220 awards to jurisdictions across the country to help make schools more secure. The awards, granted through three funding streams, will provide new technology for reporting systems and other threat deterrent measures and create school safety training and education programs for school administrators, staff, students, and first responders. This includes the support for existing crisis intervention teams and the creation of new ones.
- BJA’s STOP School Violence Prevention and Mental Health Training Program will provide training and education on preventing violence and effectively responding to related mental health crises. This program will fund 85 awards at nearly $28 million, including the award to Richmond County schools.
- The STOP School Violence Threat Assessment and Technology Reporting Program, also managed by BJA, will provide 68 awards valued at more than $19 million. This funding supports training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
- The COPS Office School Violence Prevention Program (SVPP) will provide nearly $25 million to 91 jurisdictions for school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.
The grants are authorized by the STOP School Violence Act, which are intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.
The Department also announced that it has awarded more than $64 million to state agencies to improve the completeness, quality, and accessibility of the nation’s criminal record systems. These grants are administered by the Bureau of Justice Statistics, part of OJP. Approximately $43 million in funding will be administered through the National Criminal History Improvement Program (NCHIP), and nearly $21 million will be awarded under the National Instant Criminal Background Check System (NICS) Act Record Improvement Program. These grant programs help states automate and upgrade records accessed by the firearms background check system. This year, at the direction of the Attorney General, the Department prioritized funding for projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
The Department is also investing over $1 million in research to better understand the factors behind mass shooting incidents. The grant awards, made by the Department’s National Institute of Justice (NIJ), part of OJP, support scientific investigations that will examine factors that contribute to mass violence, identify any patterns in mass shootings, analyze psychological and social life histories of mass shooters and community-level predictors of mass violence, and will examine firearm purchasing patterns of known mass shooters in order to create a risk prediction tool.
For addition information on today’s grant announcements, visit www.bja.gov or www.cops.usdoj.gov.
NOTE: The breakdown of the STOP School Violence Grants can be found here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program
For any questions, please contact Barry Paschal at the United States Attorney’s Office at (912) 652-4422.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 18, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Patrick Okroi, age 61, was sentenced to 20 years custody in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Beginning January 2016, Okroi travelled to California from Rapid City at least once or twice every month to pick up methamphetamine. Okroi then distributed between 5 and 15 kilograms of methamphetamine in western South Dakota to other persons, including Gregory O’Kelley and Amanda Tindall. O’Kelley and Tindall both previously received 121 months in federal prison. Juan Porcayo, also alleged to be involved in this conspiracy, is pending trial in March 2019.
On January 13, 2017, Okroi’s home was searched and two (2) pistols and two (2) rifles were located and seized from his home.
This case was investigated by the Unified Narcotics Enforcement Team, Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Okroi was immediately turned over to the custody of the U.S. Marshals Service.
Randolph Man Sentenced for Federal Firearms ChargeRead the Press Release
BOSTON – A Randolph man was sentenced today in federal court in Boston for being a previously convicted felon in possession of a firearm.
Dararong James Heang, 28, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 21 months in prison and two years of supervised release. In June 2018, Heang pleaded guilty to being a convicted felon in possession of a firearm and ammunition.
Shortly after midnight on June 16, 2017, law enforcement officers stopped Heang and two other individuals in the area of Shirley Avenue in Revere, which had been the scene of recent gang violence. During a subsequent search, Heang was found to be in possession of a semi-automatic firearm and seven rounds of ammunition. At the time, Heang was on state probation and had previously been convicted of multiple felonies in state court, including assault and battery and a drug offense.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County District Attorney John P. Pappas; and Revere Police Chief James R. Guido made the announcement today.
Providence Man Sentenced for Valentine’s Day 2017 Bank RobberyRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to robbing a Providence bank as it was closing for the business day on Valentine’s Day in February 2017 was sentenced today to 46 months in federal prison.
Efrain Delacruz, 35, previously admitted to the Court that on February 14, 2017, he entered a Santander Bank branch office on Elmgrove Avenue, approached a teller, and gave her a note that said, “give me all the money. No dye packs, no fifties and no hundreds.”
When Delacruz fled the bank he dropped nearly half of the money in the vestibule. Delacruz came back to the bank looking for the dropped money. Delacruz attempted to reenter the bank but was unsuccessful, because the doors were locked. He then fled in his vehicle, leading police on a chase that exceeded 6 miles, often at high speed. Delacruz struck as many as seven vehicles prior to getting cornered by Providence Police and stopping.
$3,569 of stolen funds was found in the center console of the car. The balance of the money handed to the defendant by the teller and dropped inside the bank was recovered.
Appearing before U.S. District Court Judge William E. Smith on June 19, 2018, Delacruz pleaded guilty to one count of bank robbery. At sentencing today, U.S. District Court Chief Judge William E. Smith also ordered Delacruz to serve 3 years supervised release upon completion of his term of incarceration.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 46-57 months. The government recommended the court impose a sentence of 57 months in prison.
Delacruz’s sentence is announced by United States Attorney Stephen G. Dambruch, Providence Police Chief Hugh T. Clements, Jr, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The case, investigated by the Providence Police Department and the FBI, was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Providence Man Sentenced for Selling Silencer Equipped Machine GunRead the Press Release
PROVIDENCE, RI – A Providence man arrested in April 2017 during a year-long Project Safe Neighborhoods investigation to identify individuals possessing or trafficking firearms in and around the Chad Brown neighborhood of Providence was sentenced today to 60 months in federal prison for possessing and selling an unregistered machine gun equipped with a silencer and for selling 240 grams of fentanyl laced heroin to an undercover federal law enforcement agent.
Edward Trinidad, 30, pleaded guilty in February as charged in an indictment returned on April 6, 2017, to one count each of possession of an unregistered machine gun, possession of an unregistered silencer, and transfer of a machine gun; two counts of distribution of heroin and fentanyl; and one count of distribution of 100 grams or more of heroin.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Trinidad to serve 4 years supervised release upon completion of his term of incarceration.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 60-63 months. The government recommended the court impose a sentence of 60 months in prison.
Trinidad’s sentence is announced by United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; and Providence Police Chief Colonel Hugh T. Clements, Jr.
Appearing before U.S. District Court Chief Judge William E. Smith on February 14, 2017, Trinidad admitted to the Court that on June 3, 2016, he sold an undercover ATF agent an unregistered machine gun equipped with a silencer. Trinidad also admitted that on June 24, 2016, he sold the undercover agent 29.61 grams of fentanyl laced heroin; on November 9, 2016, he sold the agent 109.42 grams of fentanyl laced heroin; and that on March 31, 2017, he sold the agent 101.15 grams of a material containing fentanyl.
In spring 2016, the ATF, the Rhode Island ATF Task Force and the Providence Police Department launched a joint Safe Streets Neighborhoods investigation to analyze shell casings retrieved from crime scenes in and around the Chad Brown neighborhood and elsewhere, utilizing ATF’s National Integrated Ballistic Information Network (NIBN). The investigation was expanded to attempt to determine who possessed various firearms used to commit crimes and the origin of those firearms.
NIBN identifies marks left on shell casings unique to a particular firearm. NIBN then assists in linking crime scenes to a firearm.
The investigation, publicly disclosed in April 2017, resulted in the seizure of the machine gun equipped with a silencer, a .45 caliber semi-automatic pistol, a .40 caliber semi-automatic pistol, a .25 caliber semi-automatic pistol, a .22 caliber revolver; a .380 caliber semi-automatic pistol, various types and quantities of ammunition, substantial quantities of heroin, fentanyl, cocaine and crack cocaine, and approximately $21,000 in suspected drug proceeds.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Rhode Island State Police, and the Rhode Island Department of Corrections Special Investigations Unit.
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Previously Convicted Felon from Essex County, New Jersey, Sentenced to 94 Months in Prison for Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man who was arrested following a domestic disturbance in which he discharged his weapon was sentenced today to 94 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Dequan Farlow, 38, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an indictment charging him with one count of possession of a firearm as a previously convicted felon. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Farlow was arrested by Newark police officers on June 30, 2017 after he allegedly shot a speaker next to his ex-girlfriend’s mother and struck the mother with the gun at her residence in Newark.
Farlow admitted that he knowingly possessed a loaded Hi-Point JCP semi-automatic handgun, despite having at least one prior felony conviction in Essex County Superior Court. As part of his plea agreement, Farlow also acknowledged that he knowingly fired the gun on June 30, 2017.
In addition to the prison term, Judge Chesler sentenced Farlow to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked officers of the Newark Police Division, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Plant manager indicted for violating the Clean Water ActRead the Press Release
ATLANTA - Carlos Conde, 37, of Smyrna, Georgia was arraigned on federal charges on October 2, 2018, for allegedly violating the Clean Water Act and for making false statements to a federal agent. Conde was indicted by a federal grand jury on September 25, 2018.
“Conde allegedly instructed workers to intentionally wash toxic and hazardous chemicals into the Chattahoochee River watershed,” said U.S. Attorney Byung J. “BJay” Pak. “The Chattahoochee is one of Georgia’s jewels that must be protected from those who recklessly damage the wildlife and environment.”
“It is important that we continue to remain vigilant to protect our precious waters throughout the southeast,” said Trey Glenn, Regional Administrator for the U.S. Environmental Protection Agency (EPA) Southeast Region (Region 4). “EPA takes seriously any allegations of improper disposal of toxic and hazardous chemicals, which pose serious threats to public health and the environment.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On August 12, 2016, a batching tank at the Apollo Industries chemical mixing facility in Smyrna, Georgia, began leaking a carburetor cleaner containing naphthalene, a toxic and hazardous chemical. The following morning, two workers discovered the spill and called Conde, the plant manager. Conde arrived at the plant and allegedly instructed the employees to wash the chemical away with water from multiple hoses. The chemical was washed into a tributary of Nickajack Creek and the Chattahoochee River. Conde allegedly twice denied his role in the spill cleanup during interviews with a federal agent with the U.S. Environmental Protection Agency.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Fraud Section is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Pittsburgh Man Charged with Distributing and Possessing Heroin and FentanylRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named William Jamar Saunders, age 39, as the sole defendant.
According to the indictment presented to the court, Saunders distributed and possessed with intent to distribute a quantity of heroin and fentanyl, on or about August 21, 2018.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria Woman Sentenced for Distribution of Fentanyl Resulting in DeathRead the Press Release
PHOENIX – This week, Fany Madrigal-Lopez, 46, of Peoria, Ariz., was sentenced by the Honorable Douglas L. Rayes, United States District Judge for the District of Arizona, to concurrent 12-year terms of imprisonment. Madrigal-Lopez had previously pleaded guilty to distributing fentanyl that resulted in death, and conspiracy to distribute and to possess with the intent to distribute controlled substances. As part of her sentence, Madrigal-Lopez’s residence in Peoria, Ariz., was forfeited to the United States.
Madrigal-Lopez’s sentencing followed other hearings in which Judge Rayes imposed sentences of probation and supervised release for three of Madrigal-Lopez’s adult children who participated in some of her crimes. Previously, Paulina Madrigal-Macias, 26, of Hawaii, pleaded guilty to conspiracy to distribute and to possess with the intent to distribute controlled substances. Adolfo Macias-Madrigal, 27, of Peoria, Ariz., and Luis Angel Macias, 21, of Phoenix, Ariz., both pleaded guilty to unlawful use of a communications facility as part of a drug conspiracy.
According to publicly-filed court documents, between the fall of 2015 and August 2017, Madrigal-Lopez obtained quantities of oxycodone and blue “M-30” pills that looked like oxycodone but contained fentanyl, cocaine, and alprazolam from others in Arizona. The four defendants then sold these substances to customers. On Nov. 16, 2016, Fany Madrigal-Lopez sold blue “M-30” pills to a customer who later died after consuming them. Despite learning of this death, Madrigal-Lopez continued to distribute various controlled substances to customers in the Phoenix area
Despite learning of this death, Madrigal-Lopez continued to distribute various controlled substances to customers in the Phoenix area. On Aug. 18, 2017, the Drug Enforcement Administration executed a search warrant at her residence in Peoria, Ariz., and recovered quantities of oxycodone; cocaine; blue “M-30” pills that contained fentanyl; and alprazolam.
The investigation in this case was conducted by the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigation, who were assisted by the Peoria Police Department and the Arizona National Guard. The prosecution was handled by Carolina Escalante Konti, D.J. Pashayan, and Jeffrey Borup, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-2:17-1110-PHX-DLR
RELEASE NUMBER: 2018-128_Madrigal-Lopez
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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.
Owner of Vancouver, WA Precious Metals Firm Indicted for Multiple Counts of Wire and Mail FraudRead the Press Release
The owner of Blue Moon Coins in Vancouver, Washington was indicted by the grand jury on 11 counts of wire fraud and five counts of mail fraud for his scheme to defraud customers of more than $1.3 million, announced U.S. Attorney Annette L. Hayes. AARON MICHAEL SCOTT, 40, a resident of Portland, Oregon, is scheduled to be arraigned on the indictment in U.S. District Court in Tacoma at 10:30 on Thursday October 4, 2018.
According to the indictment, between October 2013 and April 2014, SCOTT repeatedly accepted customer money for the purchase of precious metals and coins, and then used the money for his personal and company expenses. SCOTT represented to customers that the money would be used to immediately purchase the coins and metals but instead it was used for expenses or to fulfill earlier customer orders in the form of a Ponzi scheme. When customers complained about the delay in receiving their items, SCOTT used a plethora of excuses such as: weather delays; a supplier had gone bankrupt; a corporate buyout; ice and snow; delayed armored truck delivery; and a bad flu season.
In all more than 139 customers were defrauded of more than $1.3 million. Losses to individual investors range from just over $2,000 to more than $154,000.
Wire fraud and mail fraud are punishable by up to 20 years in prison.
The charges contained in the indictment 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 FBI, Vancouver Police Department and the U.S. Commodities Futures Trading Commission (CFTC). The CFTC has filed a civil enforcement action against SCOTT and Blue Moon Coins seeking restitution for the victims and a permanent registration and trading ban.
The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Operators of Sushi House Restaurant at Jacksonville Town Center Plead Guilty to Harboring Illegal AliensRead the Press Release
Jacksonville, Florida – Min Lin (35) and He Ying Qiu (46), both of Jacksonville, have pleaded guilty to harboring illegal aliens for the purpose of commercial advantage and private financial gain. Each faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to their plea agreements, Lin and Qiu are married and own and operate the Sushi House restaurant located at the Town Center shopping complex in Jacksonville. After receiving a tip from a concerned citizen, federal agents conducted an investigation and discovered that employees were being transported in a van, driven by Qiu, between the Sushi House and two residences owned by Lin. On January 29, 2018, officers from the Jacksonville Sheriff’s Office (JSO) stopped the van as it was coming from Sushi House, after it had closed for business that day. Qiu was driving the van and Lin was in the front seat passenger. Four passengers in the van appeared to be aliens who were illegally present in the United States.
On June 5, 2018, law enforcement agents executed search warrants at the Sushi House and the two residences owned by Lin. Before the warrants were executed, a JSO officer stopped the van Qiu was driving near the Sushi House. Two of the passengers, who were also in the van when it was stopped on January 29, 2018, were found to be illegally present in the United States. During the execution of the warrant at one of the residences, agents encountered two more aliens who were also found to be illegally present in the United States. They had also been passengers in the van during the previous strop.
Upon questioning, each of the four aliens admitted to being illegally present in the United States. They stated that they worked at the Sushi House and were paid in cash with no taxes withheld from their pay. They also stated that they lived at the residence rent-free, that Qiu took them to and from work, and that neither Lin nor Qiu had asked them to provide documents to establish that they were legally authorized to work in the United States. Employers are required by law to obtain such documents before hiring any employee. During the search of the residence, agents found identification, mail, photographs, and other documents belonging to the aliens and others.
As part of their plea agreements, Lin and Qiu agreed to forfeit the residence and the van they had used to transport the aliens.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Olympia Man Sentenced to 10 Years in Federal Prison for Attempted Child Sex TraffickingRead the Press Release
https://www.justice.gov/pscSpokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Paul Rosier, age 76, of Olympia, Washington, was sentenced after having pleaded guilty on June 26, 2018, to Attempted Child Sex Trafficking. Senior United States District Court Judge Edward F. Shea sentenced Rosier to a 10-year term of imprisonment, to be followed by a life term of court supervision after he is released from federal prison. Judge Shea also ordered Rosier to pay $105,000 in fines, $5,000 of which was ordered pursuant to the Justice for Victims of Trafficking Act. Rosier will be required to register as sex offender upon his release from confinement.
According to information disclosed during court proceedings, as part of an undercover sting operation, a Kennewick Police Department detective with the Southeast Regional Internet Crimes Against Children Task Force, posing as a 16-year old minor and pimp, signed on to the “Pinger” social media application and received a message from Rosier stating Rosier planned to be in the Kennewick area and was looking for a “hook up” and a “rub and more.” As part of the sting operation, the undercover detective replied that he had a 13-year old friend who might be available. Rosier text-messaged the undercover detective asking if the 13-year old was available for an “outcall,” a commercial sex trade term that means the person performing the service comes to the customer’s location. Rosier also sent a message to the undercover detective asking for “Daty” and “bbbj”, commercial sex industry terms for oral sex on a female and oral sex performed on a male without a condom. Rosier specifically requested the 13-year old girl perform these acts. When the undercover detective asked Rosier what the 13-year old was worth to him, Rosier text-messaged $160, and indicated he wanted “FS,” an abbreviation for “full service” and meaning intercourse. The undercover detective, posing as a pimp, replied that his fee was an additional $40. Rosier messaged the undercover detective that he was at a hotel in Kennewick, Washington, and provided his room number. After the undercover detective notified Rosier the under-age girl was at the hotel, members of the Southeast Regional Internet Crimes Against Children task force arrested Rosier when he went to meet her. A search incident to arrest revealed Rosier possessed $200.
Joseph H. Harrington said, “I commend the outstanding work of the Southeast Regional Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Kennewick Police Department. Sexual predators routinely target the young and most vulnerable in our communities. The sentence imposed removes a sexual predator from the streets and sends a strong message that the federal government will use all of the tools at its disposal to investigate and prosecute these crimes.”
“Adults who prey on children deserve the consequences of their actions. In this case, Rosier was looking for a child to engage in sexual acts with him. Thanks to the efforts of the Southeast Regional Internet Crimes Against Children Task Force, we prevented him from doing so,” said Brad Bench, Special Agent in Charge of HSI Seattle. “Combatting child predators is truly a team effort that requires the cooperation of local, state and federal law enforcement entities, and this case is testament that the work we do truly does make our community safer.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, the Kennewick Police Department, and the Southeast Regional Internet Crimes Against Children Task Force. This case was prosecuted by Laurel Holland and Scott T. Jones, Assistant United States Attorneys for the Eastern District of Washington.
Olathe Man Pleads Guilty to Unlawfully Importing Asian Leopard CatsRead the Press Release
KANSAS CITY, KAN. - A Kansas man pleaded guilty Wednesday to unlawfully importing endangered leopard cats, U.S. Attorney Stephen McAllister said.
The leopard cat is a small wild cat native to Asia. It is considered as an endangered species under federal law.
Lawrence E. Payne, 34, Olathe, Kan., pleaded guilty to one count of violating the Endangered Species Act. The investigation began when Payne applied to the U.S. Department of Agriculture for a breeding license for Asian leopard cats. When investigators served a search warrant at Payne’s home, they found three Asian leopard cats. Payne admitted importing the animals.
Sentencing will be set for a later date. He faces a penalty of up to a year in jail and a fine up to $50,000. McAllister commended the U.S. Fish and Wildlife Service, the U.S. Department of Agriculture and Assistant U.S. Attorney Chris Oakley for their work on the case.
Nurse Practitioner and Technician Plead Guilty to Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
LAS VEGAS, Nev. – A nurse practitioner and a surgical technician pleaded guilty in federal court Tuesday in connection to the unlawful distribution of prescription opioids and for committing Medicare and Medicaid fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Robert D. Harvey, a surgical technician, 45, of Henderson, pleaded guilty to one count of conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance, and Alejandro “Alex” Incera, aka Alexander Jiminez-Incera, an Advance Practice Registered Nurse, 48, of Las Vegas, pleaded guilty to eight counts of distribution of controlled substance and eight counts of health care fraud.
The investigation revealed that from January 1, 2018 to about May 3, 2018, Harvey and Incera conspired to distribute Hydrocodone and Oxycodone to patients without a legitimate medical purpose in exchange for cash payments.
Harvey, who did not have a medical or DEA license, met individuals in various parking lots in the Las Vegas Valley and unlawfully distributed opioid prescriptions using Incera’s prescription pad with Dr. Horace P. Guerra’s DEA license number, in exchange for cash payments. Dr. Guerra would pre-sign the prescriptions, facilitating Harvey’s unlawful distribution.
Incera also defrauded Medicare and Medicaid by writing Lidocaine, Modafinil, and Diclofenac Sodium prescriptions to patients without a legitimate medical purpose between July 2016 to about December 2017. The prescriptions were filled and processed by Atlas Pharmacy who paid Incera approximately $30,000 in exchange for referring patients to fill their prescriptions at Atlas Pharmacy. The Medicare and Medicaid programs were defrauded out of approximately $3.7 million.
United States District Judge James C. Mahan accepted their guilty pleas and scheduled a sentencing hearing for January 10, 2019. The maximum penalty is five years in prison and a $250,000 for conspiracy to distribute a controlled substance and distribution of a controlled substance, and the maximum penalty is 10 years in prison and a $250,000 fine for health care fraud.
Co-defendant Leslie Kalyn, aka Leslie Feth, a Doctor of Nursing, 35, of Las Vegas, was charged with one count of conspiracy to commit health care fraud and six counts of health care fraud and is scheduled for a jury trial on September 23, 2019. Guerra, 55, pleaded guilty to one count of conspiracy to distribute controlled substances and he is scheduled to be sentenced on October 25, 2018. Nelson M. Mukuna, owner and operator of Atlas Pharmacy, 41, pleaded guilty to one count of conspiracy to commit health care fraud and one count of structuring transactions to evade reporting requirements, and he is scheduled to be sentenced on December 3, 2018.
The case is being investigated by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.
The District of Nevada was selected as one of 12 districts nationally to participate in the Opioid Fraud and Abuse Detection Unit, a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada has assigned a prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Newton Man Sentenced to over 17 Years in Prison for Extensive Cyberstalking CampaignRead the Press Release
BOSTON - A Newton man was sentenced today in federal court in Boston for conducting an extensive cyberstalking campaign against his former housemate, her family members, co-workers, friends, and other unrelated individuals. The defendant hacked into his former housemate’s online accounts, posted fraudulent sexual solicitations in the victims’ names, sent unsolicited images of child pornography, and made over 120 hoax bomb threats.
Ryan S. Lin, 25, was sentenced by U.S. District Court Judge William G. Young to 210 months in prison and five years of supervised release, after pleading guilty in April 2018 to seven counts of cyberstalking, five counts of distribution of child pornography, nine counts of making hoax bomb threats, three counts of computer fraud and abuse and one count of aggravated identity theft. Lin was arrested in October 2017, and has been in custody since.
From approximately May 2016 through Oct. 5, 2017, Lin engaged in a cyberstalking campaign against his housemate, a 25-year-old female victim. Lin hacked into the victim’s online accounts and devices and stole the victim’s private photographs, personally identifiable information, and private diary entries, which contained sensitive details about her medical, psychological and sexual history, and distributed the material to hundreds of people associated with her.
Lin also created and posted fraudulent online profiles in the victim’s name and solicited rape fantasies, including a “gang bang,” and other sexual activities, which in turn caused men to show up at the victim’s home. He also engaged in a number of other activities targeting the victim, including relentless anonymous text messaging and hoaxes.
In addition to his former housemate, Lin engaged in cyberstalking activity aimed at six other individuals. Some were associated with the primary victim, and others were unrelated. The additional victims include two women who were Lin’s housemates in Newton at the time of his arrest. On multiple occasions, Lin sent unsolicited sexually explicit images of prepubescent children to the primary victim’s mother, the victim’s co-worker and housemate, a friend of the victim who resided in New Jersey, and two of Lin’s former classmates in New York.
Furthermore, Lin falsely and repeatedly reported to law enforcement that there were bombs at the primary victim’s Waltham residence. Lin also created a false social media profile in the name of the primary victim’s housemate in Waltham and posted that he was going to “shoot up” a school in Waltham, stating that there would be “blood and corpses everywhere.” These threats became part of a prolonged pattern of threats in Waltham, and eventually in surrounding towns, including schools, homes, businesses and other institutions.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Waltham Police Chief Keith MacPherson made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance of the Middlesex County District Attorney’s Office and the Watertown, Newton and Wellesley Police Departments. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit, and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
McKees Rocks Woman Admits Buying 2 Guns for a Known FelonRead the Press Release
PITTSBURGH, PA - A resident of McKees Rocks, Pennsylvania, pleaded guilty in federal court to a charge of aiding and abetting the possession of a firearm by a convicted felon, United States Attorney Scott W. Brady announced today.
Talaya Thompkins, 36, pleaded guilty to one count before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that from on or about August 27, 2016, and continuing thereafter to on or about August 7, 2017, Talaya Thompkins unlawfully aided and abetted Vincent Eggleton’s possession of firearms. Thompkins purchased the two firearms in August 2016 and February 2017 and made them available to Eggleton. Thompkins was aware that Eggleton had a prior felony conviction, which prohibits Eggleton from possessing any firearm.
On March 1, 2018, Eggleton pleaded guilty to possession of a firearm and ammunition by a felon, as well as conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a related drug-trafficking charge. On August 1, 2018, Eggleton was sentenced to a total of 121 months’ imprisonment on those charges.
Judge Cercone scheduled sentencing of Thompkins for February 13, 2019. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court continued Talaya Thompkins on bond pending sentencing.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.
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.
McComb Man Sentenced for Committing Commercial Driver’s License FraudRead the Press Release
Jackson, Miss. – Derrious Emadrick Dillon, 37, of McComb, was sentenced yesterday by U.S. District Judge David Bramlette III to two years in prison followed by one year of supervised release for aggravated identity theft, announced U.S. Attorney Mike Hurst and Special Agent in Charge Todd Damiani, with the U.S. Department of Transportation, Office of Inspector General. Dillon was also ordered to pay a $1500 fine.
Dillon previously worked for a company that provided training and certification to individuals seeking commercial driver’s licenses ("CDLs"). When his employment was terminated in 2014, he continued providing paperwork to those whom wanted a CDL. Dillon obtained a list of authorized CDL instructors and their identification numbers in the State of Mississippi. He used names and identification numbers of those authorized CDL instructors to prepare fraudulent paperwork for individuals seeking CDLs. This fraudulent paperwork would be given to an individual seeking to obtain a CDL in exchange for payment to Dillon. The fraudulent paperwork would be presented by these individuals to the Mississippi Department of Public Safety in order to secure a commercial driver’s license.
Dillon received $200-$400 for each set of fraudulent paperwork. A review of the commercial drivers’ paperwork in Mississippi showed that some of the applicants could not have achieved the results on the paperwork. Some Commercial Driver’s License holders were interviewed and said they had never taken the test and just paid Dillon for the paperwork. Dillon pled guilty on January 9, 2018.
"The sentencing in this investigation underscores the U.S. Department of Transportation Office of Inspector General's (DOT-OIG) commitment to ensuring the integrity of the Department's commercial driver’s license (CDL) program," stated Todd Damiani, Regional Special Agent-In-Charge at DOT-OIG. "We remain steadfast in our efforts to prevent and detect CDL fraud schemes which endanger the traveling public in the State of Mississippi and throughout the country."
The case was investigated by the United States Department of Transportation-Office of Inspector General, the Mississippi Department of Public Safety, the Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It was prosecuted by Assistant United States Attorney Erin Chalk.
Massachusetts Man Sentenced to More than 17 Years in Prison for Cyberstalking Former Housemate and Others, Computer Hacking, Sending Child Pornography and Making over 100 Hoax Bomb ThreatsRead the Press Release
A Massachusetts man was sentenced today to 210 months in prison for conducting an extensive cyberstalking campaign against his former housemate, her family members, co-workers, friends, and others, including hacking into her online accounts, posting fraudulent sexual solicitations in their names, sending unsolicited images of child pornography, and making over 120 hoax bomb threats.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, Special Agent in Charge Harold H. Shaw of the FBI Boston Field Office and Waltham Police Chief Keith MacPherson made the announcement today.
Ryan S. Lin, 25, formerly of Newton, Massachusetts, was sentenced today by U.S. District Judge William G. Young of the District of Massachusetts, who also ordered him to serve five years of supervised release following his prison sentence. Lin pleaded guilty in April 2018 to seven counts of cyberstalking, five counts of distribution of child pornography, nine counts of making hoax bomb threats, three counts of computer fraud and abuse and one count of aggravated identity theft. Lin was arrested in October 2017 and has been held in custody since. As part of Lin’s plea agreement, Lin agreed to be sentenced to a minimum of seven years and a maximum of 17 ½ years in prison.
According to admissions made in connection with his plea and evidence presented at sentencing, from about May 2016 through Oct. 5, 2017, Lin engaged in an extensive cyberstalking campaign against a 25-year-old female victim. Lin, the victim’s former housemate, hacked into the victim’s online accounts and devices and stole the victim’s private photographs, personally identifiable information, and private diary entries, which contained highly sensitive details about her medical, psychological and sexual history, and distributed the victim’s material to hundreds of people associated with her.
Lin also created and posted fraudulent online profiles in the victim’s name and solicited rape fantasies, including “gang bang” and other sexual activities, which in turn caused men to show up at the victim’s home. Lin engaged in a number of other activities targeting the female victim, including relentless anonymous text messaging and additional hoaxes, from shortly after he met her until October 2017.
In addition to his former housemate, Lin engaged in cyberstalking activity aimed at six additional individuals. Some were associated with the former housemate, and others were entirely unrelated. The additional victims include two female victims who were also Lin’s housemates in Newton at the time of his arrest. On multiple occasions, Lin sent sexually explicit images of prepubescent children on an unsolicited basis to the primary victim’s mother, the victim’s co-worker and housemate, a friend of the victim who resided in New Jersey, and two of Lin’s former classmates in New York.
In addition to the cyberstalking activity, Lin falsely and repeatedly reported to law enforcement that there were bombs at the primary victim’s Waltham, Massachusetts residence. Lin also created a false social media profile in the name of the primary victim’s housemate in Waltham and posted that he was going to “shoot up” a school in Waltham, stating that there would be “blood and corpses everywhere.” These threats expanded beyond Waltham and became part of an extensive and prolonged pattern of threats to local schools, private homes, businesses, and other institutions in the broader community. Ultimately, Lin pleaded guilty to having made over 100 bomb threats, including 24 in a single day.
The investigation was conducted by the FBI’s Boston Field Office and the Waltham Police Department. The Middlesex County District Attorney’s Office and Watertown, Newton and Wellesley Police Departments assisted in the investigation. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit, prosecuted the case.
Manhattan Hair Salon Owner Pleads Guilty to Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ABELL OUJADDOU pled guilty to participating in a scheme to trade in the stock of the Valspar Corporation (“Valspar”) based on material nonpublic information relating to another’s company’s efforts to acquire Valspar. OUJADDOU pled guilty to one count of conspiracy to commit securities fraud before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey Berman said: “Abell Oujaddou, a salon owner and hairstylist, pled guilty today to receiving favorable material nonpublic information about Valspar’s stock, and then trading on that information before it became public, netting nearly $200,000 in illegal gains. As he admitted today, Oujaddou – who had never previously traded Valspar stock – was given the tip by his co-defendant, who worked at a rating agency and had access to inside information about the acquisition of Valspar. Our Office will continue to fight insider trading and ensure that those who cheat in our financial markets are held to account.”
According to the allegations contained in the Complaint and Indictment filed against OUJADDOU and his co-conspirators, and statements made in related court filings and proceedings:[1]
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company’s credit rating agency often evaluates, and ultimately issues a press release relating to, the impact that the acquisition could have on the acquiring company’s credit rating. Therefore, companies often contact rating agencies before an acquisition is publicly announced in order to secure the rating agency’s views on how a possible acquisition could impact a company’s credit rating. All the major rating agencies offer a service – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, a credit rating agency in Manhattan (the “Firm”) assigned Sebastian Pinto-Thomaz, a credit ratings analyst, to work on an RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”). In connection with this assignment, Pinto-Thomaz had access to confidential information about Sherwin-Williams’ acquisition of Valspar prior to the public announcement of the acquisition. The Firm’s written policies prohibited the unauthorized disclosure of confidential information, which included the information about the possible acquisition of Valspar (the “Inside Information”). During his tenure at the Firm, Pinto-Thomaz reviewed and certified his duties of loyalty and confidentiality to the Firm and its clients.
The Insider Trading Scheme
In March 2016, Pinto-Thomaz misappropriated the Inside Information about Sherwin-Williams’ acquisition of Valspar and passed it to OUJADDOU and Jeremy Millul so that they could use it to make profitable trades. On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
OUJADDOU is a Manhattan hairstylist and salon owner who has a close relationship with Pinto-Thomaz, as well as with a member of Pinto-Thomaz’s immediate family (the “Relative”). Pinto-Thomaz repeatedly provided OUJADDOU with Inside Information about the Valspar acquisition, oftentimes shortly after Pinto-Thomaz became aware of the Inside Information through his work at the Firm. From March 10, 2016, through March 18, 2016, OUJADDOU, who had never previously purchased Valspar or Sherwin-Williams’ securities, used the Inside Information he had received from Pinto-Thomaz to purchase 8,630 shares of Valspar stock. After the acquisition was publicly announced, OUJADDOU sold his Valspar shares for approximately $192,080 in profits. OUJADDOU admitted that he agreed to give Pinto-Thomaz a portion of OUJADDOU’s trading profits in exchange for the Inside Information.
Millul is a Manhattan jeweler who has a close personal friendship with Pinto-Thomaz and the Relative. Pinto-Thomaz also provided Millul with Inside Information about the Valspar acquisition. Although Millul had never owned a brokerage account in the United States and had never traded in U.S. securities prior to March 2016, he opened a brokerage account on March 13, 2012, and shortly thereafter purchased 480 shares of Valspar common stock. On March 18, 2016, the last trading day before the acquisition was publicly announced, Millul also purchased 75 Valspar out-of-the-money call options. After the acquisition was publicly announced, Millul sold his Valspar stock and options for approximately $106,806 in profits. In December 2016, Millul gave Pinto-Thomaz $3,500 in cash.
Pinto-Thomaz Makes False Statements About OUJADDOU and Millul in Connection with a FINRA Inquiry
In June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent the Firm a list of individuals and entities that had traded in Valspar in advance of the public announcement of the acquisition (the “List”). The Firm forwarded the List to its employees who had worked on the Sherwin-Williams RES, including Pinto-Thomaz, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both OUJADDOU and Millul were on the List, Pinto-Thomaz denied having a relationship with anyone on the List.
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ABELL OUJADDOU, 55, of New York, New York, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
OUJADDOU is scheduled to be sentenced on February 5, 2019 at 4 p.m.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
[1] As for the defendants who have pled not guilty, Sebastian Pinto-Thomaz and Jeremy Millul, the description of the charges set forth herein constitute only allegations.
Man Sentenced to Prison for Multiple Armed Bank RobberiesRead the Press Release
NORFOLK, Va. – A Georgia man was sentenced today to over 15 years in prison for armed robbery of two banks and one credit union.
According to court documents, Marquis Larosa Buckley, 41, of Townsend, conducted an armed robbery of a Fulton Bank and a PNC Bank, both located in Virginia Beach. At the Fulton Bank, Buckley stole $973, and at the PNC Bank he stole $8404. During the PNC Bank robbery a teller secreted a GPS device within the money given to Buckley. The device allowed law enforcement to locate Buckley and his co-conspirator as they were driving away from the robbery. Buckley also conducted an armed robbery of SPE Federal Credit Union in State College, Pennsylvania, wherein they netted $7,177. During each of these robberies, Buckley used a fake bomb in addition to a firearm to enhance his threats and to serve as a diversion for law enforcement while he made his escape.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-2.
Lower Brule Residents Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that three Lower Brule, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Shanna St. Cloud, age 20, Alisha Flute, a/k/a Alisha Pretty Sounding Flute, age 20, and Teresa Jandreau, age 39, were indicted on September 11, 2018. Flute appeared on September 14, 2018, St. Cloud appeared on September 21, 2018, and Jandreau appeared on October 2, 2018, before U.S. Magistrate Judge Mark A. Moreno. All three pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that between December 1, 2015, and September 11, 2018, St. Cloud, Flute, and Jandreau knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota.
The charges are merely accusations and St. Cloud, Flute, and Jandreau are presumed innocent until and unless proven guilty.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
St. Cloud was remanded to the custody of the U.S. Marshals Service pending trial. Jandreau and Flute were released on bond pending trial. A trial date is set for November 27, 2018.
Leading Electrolytic Capacitor Manufacturer Ordered to Pay $60 Million Criminal Fine for Price FixingRead the Press Release
Nippon Chemi-Con was sentenced to pay a $60 million criminal fine for its role in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today. The $60 million fine is the largest fine imposed in the Justice Department’s investigation into collusion in the capacitors industry. In addition to the $60 million criminal fine, Nippon Chemi-Con was also sentenced to a five-year term of probation during which the company must implement an effective compliance program and submit annual written reports on its compliance efforts.
"Today’s sentence affirms the Antitrust Division’s commitment to holding companies, whether foreign or domestic, accountable for conspiring to cheat American consumers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “In addition to the significant fine, the five-year probation period promotes deterrence and will help to protect the public.”
In May 2018, Nippon Chemi-Con pleaded guilty to conspiring with others to suppress and eliminate competition for electrolytic capacitors from at least as early as November 2001 to January 2014. Nippon Chemi-Con was charged by indictment filed in October 2017 in the U.S. District Court for the Northern District of California. The indictment charged Nippon Chemi-Con with carrying out the conspiracy by agreeing with co-conspirators to fix prices of electrolytic capacitors during meetings and other communications. Capacitors were then sold in accordance with these agreements. As part of the conspiracy, Nippon Chemi-Con and its co-conspirators took steps to conceal the conspiracy, including the use of code names and providing misleading justifications for prices and bids submitted to customers in order to cover up their collusive conduct.
In total, eight companies and ten individuals have been charged for their participation in this conspiracy. All eight companies have pleaded guilty and have been sentenced to criminal fines collectively totaling over $150 million. Of the ten individuals charged, two have pleaded guilty, and eight remain under indictment, including four Nippon Chemi-Con executives: Takuro Isawa, Takeshi Matsuzaka, Yasutoshi Ohno, and Kaname Takahashi.
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances, and office equipment.
This case results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.
Las Vegas Man Pleads Guilty to Armed CarjackingRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident who was standing trial for an armed carjacking pleaded guilty late Monday to the federal charge, announced U.S. Attorney Dayle Elieson for the District of Nevada.
On the first day of trial, after a jury selection was complete, Raul Casarez, 36, pleaded guilty before U.S. District Judge Kent J. Dawson to one count of carjacking. A sentencing hearing is scheduled for January 30, 2019.
As part of the plea agreement, Casarez admitted that, on January 1, 2015, he and two accomplices entered a 63-year-old man’s home in Henderson, Nevada. Once inside the victim’s house, Casarez pointed the firearm at the victim’s face and demanded money. He tied the victim up and threatened to shoot the victim if the victim didn’t do what he said to do. Once the victim was restrained, Casarez stole a television, a camera, and other property from the house. Then he loaded the stolen property into the victim’s pickup truck and left the residence, taking the stolen items and vehicle with him. He later unloaded the property into a separate vehicle and parked the stolen truck near the Fiesta Casino in Henderson where it was later recovered by law enforcement. Forensic evidence, including fingerprints, tied Casarez and his accomplices to the crime. At the time of this offense, Cararez was wanted for violations of his federal supervised release for an underlying felony Escape conviction from 2013. Casarez has multiple prior felony convictions, including priors for Robbery, Attempted Assault with a Deadly Weapon, Felon in Possession of a Firearm, and Escape. Casarez’s accomplices previously pleaded guilty to charges arising from this event.
The maximum statutory penalty is 15 years and a fine of $250,000.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Henderson Police Department, and the Las Vegas Metropolitan Police Department Gang Task Force. Assistant U.S. Attorneys Nadia J. Ahmed and Alexandra Michael are prosecuting the case.
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Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
Attorney General Sessions today commemorated the reinvigoration of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. In support of the Department’s PSN programs throughout the country, the Attorney General also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas, utilizing policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGIC), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the “traffickers and trigger pullers” who are fueling the violence in their communities. By using modern technologies and cutting-edge police work, the Justice Department is deploying resources strategically to provide the greatest return on our community-based anti-violence efforts.
United States Attorneys across the country are using powerful federal laws against the criminals driving the violent crime in their communities. In fiscal year 2018, the Department brought cases against more violent criminals than ever before—increasing by approximately 15 percent than the Department’s previous record set just last year. Additionally, in 2018 the Department set another record by charging approximately 20 percent more criminals with federal firearms offenses than it had in 2017, which is the most in the Department’s history.
The Department has already started to observe positive signs of progress. The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent. The preliminary information for 2018 shows that the Department’s efforts are continuing to pay off. Public data from 60 major cities show that violent crime decreased by nearly five percent in those cities in the first six months of 2018 compared to the same period one year earlier.
The grants announced today build on Attorney General Sessions’ commitment to reducing violent crime in America, as directed by President Trump’s February 2017 Executive Order. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.
Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
OKLAHOMA CITY – In support of the Department’s PSN programs throughout the country, Attorney General Sessions has announced almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime.
Of the almost $28 million, $247,251 has been allocated to the Oklahoma District Attorneys Council to support PSN in the Western District of Oklahoma. The Council was also allocated $157,363 for PSN in the Northern District of Oklahoma and $111,323 for PSN in the Eastern District of Oklahoma.
"Project Safe Neighborhoods is a proven program with demonstrated results," Attorney General Jeff Sessions said. "We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities."
PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas and using policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGICs), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the "traffickers and trigger pullers" who are fueling the violence in their communities.
The Department has already started to observe signs of progress. The FBI’s official crime data for 2017 reflects that, after two consecutive increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one-and-a-half percent. The preliminary information for 2018 shows that the Department’s efforts are continuing to pay off. Public data from 60 major cities show that violent crime decreased by nearly five percent in those cities in the first six months of 2018 compared to the same period one year earlier.
The grants announced today build on Attorney General Sessions’s commitment to reducing violent crime in America. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.
Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
KNOXVILLE, Tenn. – Attorney General Sessions today commemorated the reinvigoration of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. In support of the Department’s PSN programs throughout the country, the Attorney General also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer.
The Eastern District of Tennessee was awarded $294,968 for use by the recently formed PSN Task Force, consisting of representatives from local, state and federal law enforcement, in its efforts to reduce violent crime in the district. Led by the U.S. Attorney’s Office, the PSN Task Force includes representatives from the Chattanooga Police Department, Knoxville Police Department, Greeneville Police Department, First, Second, Sixth, and Eleventh District Attorney’s Offices, Tennessee Bureau of Investigation, Tennessee Probation and Parole, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Marshals Service, Homeland Security, and U.S. Probation Office.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“We are committed to driving down violent crime across the Eastern District of Tennessee,” said U.S. Attorney J. Douglas Overbey. “The PSN Task Force plans to attack the violent crime problem by identifying significant offenders and targeting them for prosecution. Though collaboration and cooperation with our local, state and federal law enforcement and prosecutorial partners, our goal is to reduce violent crime and make our neighborhoods safer.”
PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas, utilizing policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGIC), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the “traffickers and trigger pullers” who are fueling the violence in their communities. By using modern technologies and cutting-edge police work, the Justice Department is deploying resources strategically to provide the greatest return on our community-based anti-violence efforts.
United States Attorneys across the country are using powerful federal laws against the criminals driving the violent crime in their communities. In fiscal year 2018, the Department brought cases against more violent criminals than ever before—increasing by approximately 15 percent than the Department’s previous record set just last year. Additionally, in 2018 the Department set another record by charging approximately 20 percent more criminals with federal firearms offenses than it had in 2017, which is the most in the Department’s history.
The Department has already started to observe positive signs of progress. The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent. The preliminary information for 2018 shows that the Department’s efforts are continuing to pay off. Public data from 60 major cities show that violent crime decreased by nearly five percent in those cities in the first six months of 2018 compared to the same period one year earlier.
The grants announced today build on Attorney General Sessions’ commitment to reducing violent crime in America, as directed by President Trump’s February 2017 Executive Order. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.
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Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
NOTE: The Revised FY 2018 PSN Funding Allocation Amounts can be found here.
WASHINGTON – Attorney General Sessions today commemorated the reinvigoration of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. In support of the Department’s PSN programs throughout the country, the Attorney General also announced awards of almost $28 million in grant funding to combat violent crime through PSN and another $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Over the past year, the Department has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make American neighborhoods safer.
The Eastern District of Kentucky received $185,994 in grant funding to support PSN efforts.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Through the enhanced PSN, the Department is targeting the most violent criminals in the most violent areas, utilizing policing tools that did not exist even a few years ago. Tools like crime gun intelligence centers (CGIC), which combine intelligence from gunshot detection systems, ballistics, gun tracing, and good old-fashioned police work, help to develop real-time leads on the “traffickers and trigger pullers” who are fueling the violence in their communities. By using modern technologies and cutting-edge police work, the Justice Department is deploying resources strategically to provide the greatest return on our community-based anti-violence efforts.
United States Attorneys across the country are using powerful federal laws against the criminals driving the violent crime in their communities. In fiscal year 2018, the Department brought cases against more violent criminals than ever before—increasing by approximately 15 percent than the Department’s previous record set just last year. Additionally, in 2018 the Department set another record by charging approximately 20 percent more criminals with federal firearms offenses than it had in 2017, which is the most in the Department’s history.
The Department has already started to observe positive signs of progress. The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent. The preliminary information for 2018 shows that the Department’s efforts are continuing to pay off. Public data from 60 major cities show that violent crime decreased by nearly five percent in those cities in the first six months of 2018 compared to the same period one year earlier.
The grants announced today build on Attorney General Sessions’ commitment to reducing violent crime in America, as directed by President Trump’s February 2017 Executive Order. The Department has distributed additional resources and built up strong partnerships with local law enforcement in communities plagued by violent crime. Since the announcement of the reinvigoration of the PSN program in October 2017, the Department of Justice has increased the number of federal prosecutors focused on violent crime by over 300, directed its resources to improving cooperation between federal and local law enforcement agencies, restored local control of police agencies by reining in excessive use of consent decrees, reformed civil asset forfeiture and restored asset-sharing with state and local law enforcement, and helped fund over 800 hundred officers in police departments across America.
Justice Department Awards More Than $30 Million to Project Safe Neighborhoods to Combat Violent CrimeRead the Press Release
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the Department’s violent crime reduction strategy. Today, $28 million in grant funding was awarded nationally to combat violent crime through PSN programs, as well as an additional $3 million for training and technical assistance to develop and implement violent crime reduction strategies and enhance services and resources for victims of violent crime. Locally, the District of Minnesota has received a funding allocation of $441,632.
“Collaboration with federal, state, local, and tribal law enforcement and community stakeholders to develop tailored solutions to address violent crime issues throughout the state is key,” said U.S. Attorney MacDonald. “I am surging federal resources to our violence reduction efforts, which includes hiring additional prosecutors and the provision of nearly $500,000 in funding. These resources will support an aggressive, three-pronged approach to our PSN strategy—including enforcement, prevention, and treatment—because ensuring safe neighborhoods and communities for all Minnesotans is my top priority.”
The District of Minnesota is collaborating with the Minnesota Department of Public Safety to administer the funding. A portion of the funding will be dedicated to the City of Minneapolis to continue efforts to reduce gang and gun violence through its Group Violence Intervention (GVI) strategy. Funding will also be set aside for other jurisdictions that are seeing an uptick in violence and are interested in developing locally-based solutions, in partnership with the federal government. Additional information for jurisdictions interested in applying will be available in the coming months, through the Minnesota Department of Public Safety’s Office of Justice Programs.
FY 2018 PSN Funding Allocation amounts can be found here.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Jefferson County Man Charged with Receiving and Possessing Child PornographyRead the Press Release
PITTSBURGH, PA – A resident of Jefferson County has been indicted by a federal grand jury in Pittsburgh on charges of violating federal law relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The three-count indictment, returned on September 27, 2018 and unsealed today, names Matthew James Kite, age 22, of Reynoldsville, PA, as the sole defendant.
According to the Indictment, on or about October 15, 2017, Kite received videos containing material depicting the sexual exploitation of minors. The Indictment further alleges that on October 26, 2017, and on April 18, 2018, Kite possessed images and videos, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not reached the age of 12.
The law provides for a maximum total sentence of not less than five years and up to 40 years imprisonment, a maximum term of lifetime supervised release, and a fine of $750,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement/Department of Homeland Security conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson County Brothers Indicted in Connection with Convenience Store Clerk ShootingRead the Press Release
BEAUMONT, Texas – Two Beaumont brothers have been indicted on federal violations in connection with a shooting in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Brandon Oneal Dodd, 33, was indicted by a federal grand jury on Oct. 3, 2018, and charged with conspiracy to commit a Hobbs Act robbery, attempted Hobbs Act robbery, and aiding and abetting the discharge of a firearm during a crime of violence.
Darryl James Dodd, 36, was indicted and charged with being a felon in possession with a firearm.
According to information presented in court, on Aug. 25, 2018, Brandon Dodd and two co-conspirators approached the Valero Fuel Mart located at 1481 IH-10 East in Beaumont with intentions of robbing it. The men found an employee of the convenience store in the parking lot near his car and forced him back into the store at gunpoint. One of the men jumped on the counter, pointed a gun at the store clerk and demanded money. The clerk resisted and was shot in the chest as the three men fled the scene. Although it is not believed Darryl Dodd was present during the shooting, it was revealed during the investigation that Darryl Dodd, a convicted felon, had possessed the firearm that was used in the attempted robbery.
If convicted, Brandon Dodd faces up to 20 years in federal prison. Darryl Dodd faces up to 10 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Jefferson County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Russell E. James.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Jacksonville Sexual Predator Charged with Child Pornography Production OffensesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced that James Thomas Butler II (38, Jacksonville) has been arrested and charged by a federal criminal complaint with production and attempted production of child pornography. In 2001, Butler was convicted of attempted sexual battery and lascivious molestation of a minor in Jacksonville and was required to register as a sexual predator. Because of his prior sex offense conviction, Butler faces an enhanced mandatory minimum penalty of 25 years, and up to 50 years, in federal prison, and a potential lifetime of supervision. He has been in custody since his arrest on October 2, 2018. A detention hearing is scheduled for October 9, 2018.
According to the
complaint , on May 2, 2018, FBI agents and other law enforcement officers executed a search warrant at a home in north Jacksonville, where several offenders and sexual predators resided. While interviewing the residents, the agents consensually obtained two smartphones from Butler, who was residing at the location. During a forensic review of one of the devices, agents discovered pornographic videos of a minor child that appeared to have been surreptitiously filmed using a hidden camera. Further investigation revealed the identity of the child and the Jacksonville residence where the production had occurred.This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Duval County School Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is 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 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.
Jackson Man Found Guilty by Federal Jury under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Terrence Omar Gates, 32, of Jackson, was found guilty this morning by a federal jury for illegally possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst, Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Jackson Police Chief James E. Davis.
On June 7, 2017, officers with the Jackson Police Department stopped Terrence Omar Gates for traffic violations at the corner of Mill Street and Mitchell Street. While running Gates’ driver’s license, one of the officers observed Gates reaching under the front passenger seat. Gates was ordered to stop reaching and was removed from the vehicle. Officers searched the vehicle and recovered a stolen Taurus pistol, a glass mason jar containing approximately 30 grams of marijuana, and a black digital weighing scale from under the front passenger seat where Gates was reaching. Approximately $6,937.00 wrapped in a rubber band was also recovered from Gates front left pocket.
Gates was previously convicted in the Circuit Court of Davidson County, Tennessee, for the felony offense of Criminal Simulation. He was also convicted in the Circuit Court of Hinds County for felony offenses of Possession of Counterfeit Currency and Grand Larceny.
Gates will be sentenced by Senior U.S. District Judge William H. Barbour, Jr., on December 18, 2018, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It was prosecuted by Assistant United States Attorneys Keesha D. Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictment: Robber Told Bank Teller to be Quiet and Hand over the MoneyRead the Press Release
KANSAS CITY, KAN. – A Kansas man was indicted Wednesday on charges of robbing a bank in Kansas City, Kan., U.S. Attorney Stephen McAllister said.
Ralph McGinnis, 62, Kansas City, Kan., was charged with one count of bank robbery. The indictment alleges that on Sept. 6, 2018, McGinnis robbed the Bank of Labor at 756 Minnesota Avenue. According to documents filed in the case, McGinnis told a teller, “Don’t say anything,” as he handed her a note. The note said: “This is a robbery. Give me 100’s and 50’s.” After the robbery, a security guard followed the robber to a nearby apartment building where McGinnis was living.
If convicted, McGinnis faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Trent Krug is prosecuting.OTHER INDICTMENTS
Jose Martinez De La Cruz, 43, who has been living in Kansas City, Kan., although he is not a U.S. citizen, is charged with unlawfully re-entering the United States after being deported in 2010.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Alan Lopez-Perez, 29, who has been living in Shawnee, Kan., although he is not a U.S. citizen, is charged with unlawfully re-entering the United States after twice being deported.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Thomas Vanlerberg, 60, Tonganoxie, Kan., is charged with one count of distributing methamphetamine and one count of possessing methamphetamine. The crimes are alleged to have occurred Feb. 1, 2017, in Leavenworth County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million on each count. The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
Jason E. Valles, 37, Atchison, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm by a user of controlled substances. The crime is alleged to have occurred June 14, 2018, in Atchison County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million on the drug charge, not less than five years and a fine up to $250,000 on the first firearm count and up to 10 years and a fine up to $250,000 on the second firearms count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Zabel is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal alien from Honduras sentenced for possessing pistol after West Monroe arrestRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that an illegal alien from Honduras was sentenced Tuesday to 18 months in prison for illegally possessing a pistol in West Monroe.
Medardo Zuniga, 36, of Honduras, was sentenced by U.S. District Judge Terry A. Doughty on one count of possession of a firearm by an illegal alien. According to the June 13, 2018 guilty plea, a West Monroe police officer conducted a traffic stop on a truck Zuniga was a passenger in on September 15, 2017. Three individuals were in the vehicle including Zuniga. After a search of the vehicle, an empty pistol magazine was found on Zuniga, and a Taurus 9 mm-caliber pistol with an obliterated serial number was found on the floorboard where he had been sitting. After his arrest, he admitted to being in the United States illegally and to possessing the pistol. The defendant was arrested in 2007 for driving unlawfully and had been previously deported on November 14, 2007.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and West Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.