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2 October 2018
California Man Pleads Guilty to Hacking Websites for the Combating Terrorism Center at West Point and the New York City ComptrollerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BILLY RIBEIRO ANDERSON, a/k/a “Anderson Albuquerque,” a/k/a “AlfabetoVirtual,” pled guilty today to two felony counts of computer fraud for obtaining unauthorized access to and committing defacements of the websites for the Combating Terrorism Center at the United States Military Academy in West Point, New York (“West Point”), and the Office of the New York City Comptroller (the “NYC Comptroller”). ANDERSON pled guilty before U.S. District Judge Laura Taylor Swain.
U.S. Attorney Geoffrey S. Berman said: “Billy Anderson hacked the websites of the New York City Comptroller and West Point, one of the most prestigious military academies in the world. He has now pled guilty to those crimes and faces time in federal prison. This case demonstrates that those who seek to commit cyber intrusions of government websites will be prosecuted to the fullest extent of the law.”
According to the allegations contained in the Information to which ANDERSON pled guilty and statements made at the plea proceeding:
Website defacements are acts of computer intrusion in which a hacker obtains unauthorized access to computers hosting Internet websites and then replaces the publicly available contents of the website with content generated by the hacker, thereby “defacing” the website. Hackers frequently claim responsibility for defacements by listing their online pseudonyms as part of the defaced content.
From 2015 through at least March 13, 2018, ANDERSON took responsibility for obtaining unauthorized access to, and committing more than 11,000 defacements of, various U.S. military, government, and business websites around the world under the online pseudonym “AlfabetoVirtual,” including websites for the Combating Terrorism Center at West Point and the NYC Comptroller.
On July 10, 2015, a website owned by the NYC Comptroller was defaced, and ANDERSON, using the online pseudonym “AlfabetoVirtual,” claimed responsibility for the intrusion and defacement. The contents of the NYC Comptroller website were modified to display the text “Hacked by AlfabetoVirtual,” “#FREEPALESTINE” and “#FREEGAZA.” The defacement was performed by exploiting security vulnerabilities associated with the version of a plugin being used on the website.
On October 4, 2016, a website for the Combating Terrorism Center at West Point was defaced, and ANDERSON, using the online pseudonym “AlfabetoVirtual,” claimed responsibility for the intrusion and defacement. The content of the Combating Terrorism Center website was modified to display the text “Hacked by AlfabetoVirtual.” The defacement was performed by an unauthorized administrative account that exploited a known cross-site script vulnerability, thereby enabling ANDERSON to bypass access controls and target an internal Combating Terrorism Center website address.
ANDERSON also committed unauthorized intrusions of thousands of web servers located around the world by surreptitiously installing malicious code on victim web servers that provided ANDERSON with administrative rights to the victimized web servers, thereby enabling ANDERSON to commit defacements and to maintain persistent unauthorized access to the victimized web servers.
* * *
ANDERSON, 41, of Torrance, California, pled guilty to two counts of computer fraud for causing damage to a protected computer, each of which carries a maximum sentence of 10 years in prison. Sentencing before Judge Swain is scheduled for February 13, 2019, at 2:00pm.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI. Mr. Berman also thanked the Computer Crime Investigative Unit of the United States Army Criminal Investigation Command and the Brazilian Federal Police Cyber Crime Unit for their assistance with the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
CPA Sentenced for Role in Racketeering EnterpriseRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin J. Katz (619) 546-9604 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – October 2, 2018
SAN DIEGO – Luke Fairfield, a San Diego-based Certified Public Accountant, was sentenced today to 21 months in prison for his role in the criminal enterprise led by former USC football player Owen Hanson – an international drug trafficking, gambling, and money laundering organization known as “ODOG.”
Hanson operated ODOG in the United States, Central and South America, and Australia from 2012 to 2016, trafficking in thousands of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), and other illegal drugs in wholesale and retail quantities. The ODOG enterprise also operated a vast illegal gambling network focused on high-stakes wagers placed on sporting events. To carry out its gambling operation, the ODOG enterprise employed numerous bookies and money runners, and in the event a customer did not pay his gambling debt, the ODOG enterprise employed enforcers to threaten, intimidate, and injure its own customers in order to force compliance.
As Fairfield admitted when pleading guilty in March of 2017, his role in the ODOG enterprise included laundering money, aiding in the creation of shell companies to hide ODOG’s criminal proceeds, and training ODOG money runners on methods and tactics to hide the enterprise’s activities from law enforcement and banks. On one occasion, Fairfield personally transferred proceeds of Hanson’s Australian drug trafficking to the United States using an alias and fake identification. Fairfield also worked with Hanson to track the collection of debts from bookies and gamblers who owed the ODOG enterprise hundreds of thousands of dollars from illegal bookmaking.
Because of this conviction, Fairfield is no longer licensed as a CPA. The defendant, who is free on bond, was ordered to surrender on November 9, 2018.
“Transnational racketeering organizations like Hanson’s are a threat to the safety and security of our communities, and we are committed to prosecuting the corrupt professionals, like Fairfield, who use their specialized skills to help criminal organizations,” said U.S. Attorney Adam Braverman.
“Money laundering is the grease that allows the wheels of Transnational Criminal Organizations to turn,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today’s sentencing of Fairfield sends a clear message that business professionals who facilitate the finances of these organizations not only risk losing their professional licenses but also face the prospect of time in prison. This conviction would not have been possible without the significant contributions of the Internal Revenue Service and the New South Wales Police Force.”
Fairfield is the last of 22 defendants charged in the case to be sentenced. The case arose out of a joint investigation by FBI, DEA, and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Assistant U.S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case, with assistance from DOJ’s Office of International Affairs.
DEFENDANTS Case Number 15-CR-2310-WQH
Owen Hanson Age: 34
Luke Fairfield Age: 40
Kenny Hilinski Age: 39
Giovanni Brandolino Age: 42
Daniel Portley-Hanks Age: 70
Jack Rissell Age: 50
Derek Loville Age: 48
Chalie D’Agostino Age: 52
Marlyn Villareal Age: 32
Dylan Anderson Age: 34
Tim Bryan Age: 48
Jim Muse Age: 53
Jeff Bellandi aka “Jazzy” Age: 50
Curtis Chen Age: 33
James Duley Age: 41
Dee Foxx Age: 35
Khalid Petras Age: 55
Rahul Bhagat Age: 31
David Kipper Age: 35
Todd Oldham Age: 32
Daniel Ortega Age: 42
SUMMARY OF CHARGES
Racketeering Conspiracy to Conduct RICO Enterprise Affairs, 18 U.S.C. § 1962(d)
Maximum penalty: 20 years in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of any property obtained or operated by RICO enterprise, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
U.S. Drug Enforcement Agency
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
CEO of Encrypted Communications Company Pleads Guilty to Operating a Criminal Enterprise that Facilitated the Transnational Distribution of NarcoticsRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Mark W. Pletcher (619) 546-9714 and Benjamin J. Katz (619) 546-9604
NEWS RELEASE SUMMARY – October 2, 2018
SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, pleaded guilty today to leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications devices.
In his plea agreement, Ramos admitted that he and his co-conspirators facilitated the distribution of cocaine, heroin, and methamphetamine to locations around the world including in the United States, Australia, Mexico, Canada, Thailand and Europe by supplying narcotics traffickers with Phantom Secure encrypted communications devices designed to thwart law enforcement. To keep the communications out of the reach of law enforcement, Ramos and others maintained Phantom Secure servers in Panama and Hong Kong, used virtual proxy servers to disguise the physical location of its servers, and remotely deleted or “wiped” devices seized by law enforcement. Ramos and his co-conspirators required a personal reference from an existing client to obtain a Phantom Secure device. And Ramos used digital currencies, including Bitcoin, to facilitate financial transactions for Phantom Secure to protect users’ anonymity and launder proceeds from Phantom Secure. Ramos admitted that at least 450 kilograms of cocaine were distributed using Phantom Secure devices.
As part of his guilty plea, Ramos agreed to an $80 million forfeiture money judgment as well as the forfeiture of tens of millions of dollars in identified assets, ranging from bank accounts worldwide, to houses, to a Lamborghini, to cryptocurrency accounts, to gold coins. In addition, Ramos agreed to forfeit the server licenses and over 150 domains which were being used to operate the infrastructure of the Phantom Secure network, enabling it to send and receive encrypted messages for criminals.
“The Phantom Secure encrypted communication service was designed with one purpose – to provide drug traffickers and other violent criminals with a secure means by which to communicate openly about criminal activity without fear of detection by law enforcement,” said U.S. Attorney Adam Braverman. “As a result of this investigation, Phantom Secure has been dismantled and its CEO Vincent Ramos now faces a significant prison sentence. The United States will investigate and prosecute anyone who provides support, in any form, to criminal organizations, including those who try to help criminal organizations ‘go dark’ on law enforcement.”
“Today’s guilty plea of Phantom Secure’s CEO, Vincent Ramos, is a significant strike against transnational organized crime,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “The FBI and our international law enforcement partners have demonstrated that we will not be deterred by those who exploit encryption to benefit criminal organizations and assist in evading law enforcement. With this case, we have successfully shut down the communication network of dangerous criminals who operated across the globe.”
Ramos’s co-defendants - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz – remain international fugitives, charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. All have been charged with Conspiracy to Commit Racketeering in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. § 841 and 846.
Ramos is scheduled to be sentenced on December 17, 2018 before U.S. District Judge Sentencing was set for December 17 before Judge Hayes
This case was investigated by FBI San Diego. In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; Customs and Border Protection; the Department of Homeland Security; Seattle and Las Vegas field offices of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
DEFENDANT Case Number 18CR1404-WQH
Vincent Ramos (1) Richmond, British Columbia, Canada
aka “CEO”
aka “Business”
SUMMARY OF CHARGES
Racketeering Conspiracy (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)
Maximum Penalty: 20 years prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Department of Justice, Office of International Affairs
Australian Federal Police
New South Wales Police (Australia)
New South Wales Crime Commission (Australia)
Australian Criminal Intelligence Commission
Royal Canadian Mounted Police
International Assistance Group, Department of Justice, Canada
Branford Man Sentenced to Prison for Selling Stolen Goods OnlineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REIDELL, 42, of Branford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three months of imprisonment, followed by six months of home confinement and three years of supervised release, for his role in a large-scale fencing operation. Judge Shea ordered REIDELL to perform 150 hours of community service while on supervised release.
According to the evidence presented during the trial of REIDELL and his co-defendant, George J. Connelly, Jr., Connelly and another co-defendant, Paul Muzyka, operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. At Ace Amusements, Connelly and Muzyka knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. Connelly and Muzyka then resold the stolen goods at Ace Amusements, and also online at websites such as eBay. Connelly and Muzyka also sold property to resellers, including REIDELL, who then resold the property online using online websites.
The trial evidence showed at least $1.5 million in sales on eBay from 2007 to 2016 by individuals, including REIDELL, who purchased stolen items at Ace Amusements to resell online.
On May 23, 2018, REIDELL was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and one count of interstate transport of stolen property. Connelly was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and two counts of interstate transport of stolen property.
On March 16, 2018, Muzyka, of North Haven, pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.
REIDELL, who is released on a $100,000 bond, was ordered to report to prison on December 3, 2018.
On October 1, 2018, Connelly was sentenced to 78 months of imprisonment and was ordered to forfeit an interest of $86,220.85 in a house he owns on Tuttle Drive in New Haven, $10,338.68 that was seized from his and Ace Amusements’ bank accounts, and $13,078.67 in cash that was seized from his person and from various locations inside Ace Amusements on January 25, 2016.
Muzyka is scheduled to be sentenced on November 15.
This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.
Benjamin Joel Brooks Sentenced to Serve Ten Years in Prison for Armed Robbery of Morristown PharmacyRead the Press Release
GREENEVILLE, Tenn. – On October 2, 2018, Benjamin Joel Brooks, 40, of Newport, Tennessee, was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve ten years in federal prison. Upon his release from prison, he will be supervised by U.S. Probation for five years. Brooks pleaded guilty in March 2018 to armed robbery of a pharmacy and using, carrying and brandishing a firearm during the robbery.
In October 2017, Brooks entered the East End Pharmacy in Morristown, Tennessee, with his face and head covered, wearing a sweatshirt, and brandishing a small silver handgun. He demanded the pharmacy staff give him various opioid narcotics.
Officers with the Morristown Police Department and Hamblen County Sheriff’s Office arrived at the pharmacy within minutes of the robbery and set up a perimeter. A K9 officer helped apprehend Brooks, who was found a short distance away, hiding in a thicket of Kudzu vines along railroad tracks directly behind the pharmacy. His capture was recorded on an officer-worn body camera. The K9 recovered some of the clothing Brooks wore during the robbery. Some of the pills that were stolen from the pharmacy were also recovered.
Three pharmacy employees and one customer were present during the robbery. The pharmacist and a customer identified the handgun as a small silver pistol, which was later recovered by officers with the Morristown Police Department.
Randy Hurley, 47, of Newport, Tennessee, was charged with aiding and abetting Brooks in this robbery. He is set to enter a plea of guilty to these charges at 10:00 a.m., October 11, 2018, in U.S. District Court, Greeneville.
Agencies involved in this investigation included the Morristown Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Hamblen County Sheriff’s Department. 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.
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Beauregard Parish men sentenced for roles in Dequincy bank robberyRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that two men from Singer were sentenced Monday for robbing a DeQuincy bank of nearly $16,000.
Gordon Scott Cooper, 56, of Singer Louisiana, was sentenced to 84 months in prison and Chad Allen Cooper, 39, also of Singer, was sentenced to 48 months in prison for one count of bank robbery. They were also sentenced to five years of supervised release and were ordered to pay $15,899 restitution. United States District Judge Robert G. James presided over the hearing. According to the guilty pleas, Gordon Cooper entered a bank in DeQuincy, Louisiana, with an air-powered BB gun that looked like an automatic pistol and stole $15,999 from two teller drawers. Police later learned that a maroon Honda Pilot had been seen in the area prior to the robbery and that the driver had been seen acting suspiciously. Police located Chad Cooper who is Gordon Cooper’s nephew and found BBs and a CO2 cartridge for the air pistol used in the robbery. Chad Cooper admitted to assisting in the robbery and directed officers on how to find his uncle. At Gordon Cooper’s residence, police located the Honda Pilot, a plastic bag containing money, and a pair of tennis shoes that Gordon Cooper identified as the ones worn in the robbery.
The FBI and the Dequincy Police Department conducted the investigation. Assistant U.S. Attorney David J. Ayo prosecuted the case.
Bay Area Man Sentenced to over 17 Years in Prison for Production of Child PornographyRead the Press Release
SAN FRANCISCO –Douglas Pippert was sentenced to 210 months in prison for production of child pornography, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down today by U.S. District Judge Vince G. Chhabria
Pippert, 49, formerly of Montana, pleaded guilty to the charge on June 19, 2018. According to his plea agreement, Pippert admitted he produced pornographic images of at least two minor victims while they were unconscious. Pippert engaged in sexual acts with one of the minors, while he was conscious and unconscious, and recorded the molestation. Both of the minors would sometimes stay at Pippert’s home. Pippert also developed the persona of a minor female on Facebook in order to trick teenage boys into sending him images of their genitals.
According to documents filed by the federal government, law enforcement agents discovered approximately 400,000 images and 50 hours of videos involving child pornography on Pippert’s electronic devices.
In addition to the prison term, Judge Chhabria sentenced Pippert to a ten-year term of supervised release. Pippert currently is in federal custody and will begin serving his sentence immediately.
Assistant United States Attorneys Neal C. Hong and Meredith B. Osborn are prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the FBI and the Fort Bragg Police Department.
Bank Branch Manager and Bank Customer Convicted of Conspiracy to Commit Money Laundering at East West BankRead the Press Release
LOS ANGELES – A federal jury has returned guilty verdicts against an East West Bank branch manager and a bank customer who conspired to launder over $25,000 in cash by converting the currency into cashier’s checks.
Vivian Tat, 54, of Hacienda Heights, who is a vice president at East West Bank, as well as the manager of the San Gabriel branch, and Ruimin Zhao, 48, of Temple City, each were convicted Friday evening of one count of conspiring to commit money laundering. Additionally, Tat was convicted of two counts of causing a false statement in a bank record.
The guilty verdict were the result of a conspiracy in which Tat, Zhao and Zhao’s husband – Raymond Tan, 62, of Temple City – laundered cash through East West Bank’s San Gabriel branch.
The evidence presented during a week-long trial showed that Tat, Zhao and Tan led an informant into the bank’s conference room, where the informant provided $25,500 in cash that was then laundered into three “clean” cashier’s checks issued off of the account of a bank client.
However, what Tat, Zhao and Tan did not know was that the informant, working as part of a long-running money laundering investigation dubbed Operation “Phantom Bank,” was wearing a secret recording device. Throughout the transaction, Tat, Zhao and Tan made clear their knowledge that money laundering was illegal, but they nevertheless completed the transaction.
To cover their tracks, Tat facilitated false entries to be made in East West Bank’s records, which made it appear that this transaction was legitimate.
Tat and Zhao are scheduled to be sentenced by United States District Judge Otis D. Wright in February 2019, at which time each defendant will face up to 20 years in federal prison for the money laundering conspiracy. Additionally, Tat will face a statutory maximum sentence of 30 years in prison for each of the false statement charges.
Tan previously pleaded guilty to money laundering conspiracy and money laundering in this case and in two other cases brought as part of Operation Phantom Bank.
Six separate indictments arose out of Operation Phantom Bank. With the recent convictions of Tat and Zhao, a total of nine defendants have been convicted, and 16 defendants are pending trial.
This case is the result of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The case against Tat and Zhao was tried by Assistant United States Attorneys Karen I. Meyer and Joseph D. Axelrad of the Violent and Organized Crime Section.
Athens Resident Pleads Guilty to Possessing A Firearm in Furtherance of Drug TraffickingRead the Press Release
ATHENS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Jamarcus Huff, age 29, of Athens, Georgia, pled guilty on October 2, 2018 to Possession of a Firearm in Furtherance of a Drug Trafficking Crime before U.S. District Court Judge Hugh Lawson in Athens, Georgia.
In entering his plea, Mr. Huff admitted that officers with the Athens-Clarke County Police Department (ACCPD) executed a search warrant at his house after a confidential informant had bought drugs there on multiple occasions. Inside the house, ACCPD officers found crack cocaine, and a loaded Ruger, 9mm handgun. Mr. Huff waived his Miranda rights and admitted to selling crack cocaine. He later admitted to possessing the handgun in furtherance of drug trafficking.
Mr. Huff faces a mandatory minimum term of imprisonment of not less than five (5) years and not more than life in prison, a maximum fine of $250,000.00, or both, and a term of supervised release of five (5) years.
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 case was investigated by the Athens-Clarke County Police Department. Assistant U.S. Attorney Peter Leary is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Athens Resident Pleads Guilty to Distribution of Crack CocaineRead the Press Release
ATHENS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Patrick O’Neal Kennedy, age 42, of Athens, Georgia, pled guilty on October 2, 2018 to Distribution of Cocaine Base before U.S. District Court Judge Hugh Lawson in Athens, Georgia.
In entering his plea, Mr. Kennedy admitted that on March 23, 2018, he sold crack cocaine to a confidential informant working on behalf of the Federal Bureau of Investigation and the Athens-Clarke County Police Department in exchange for $600. The sale of crack cocaine was recorded with an audio/video device worn by the confidential informant. Mr. Kennedy has prior felony convictions for Possession of Cocaine with Intent to Distribute (2017), Possession of Cocaine (2014), and Possession of Cocaine with Intent to Distribute (2006).
Mr. Kennedy faces a term of imprisonment of not more than twenty (20) years, a $1,000,000 fine, or both, and at least three (3) years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the Athens-Clarke County Police Department. Assistant U.S. Attorney Peter Leary is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Anchorage Group Indicted on Federal Kidnapping and Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that five Anchorage residents have been indicted on federal kidnapping and drug trafficking charges, among other offenses, in connection with the August 2017 beating and placing of a victim into a dog kennel.
Macauther Christmas Vaifanua, 29, Faamanu Junior Vaifanua, 28, Jeffrey Jeremey Ahvan, 30, Rex Faiva Faumui, 25, and Tamole Tierra Pattijo Lauina, 22, all from Anchorage, were named in the recently unsealed federal indictment. Macauther and Faamanu Vaifanua have both been charged with kidnapping, drug trafficking conspiracy, and brandishing a firearm during and in relation to a drug trafficking conspiracy. Jeffrey Ahvan and Rex Faumui have been charged with kidnapping, and Lauina has been charged with being an accessory after the fact. All are currently in custody, and are expected to have their arraignment hearings scheduled for this week.
According to the federal indictment, between Jan. 1, 2015 and Aug. 15, 2017, Macauther Vaifanua and Faamanu Vaifanua allegedly conspired to distribute, and possess with intent to distribute, quantities of heroin and methamphetamine, all while brandishing a firearm in furtherance of their drug trafficking activities. Furthermore, on Aug. 13, 2017, Macauther Vaifanua, Faamanu Vaifanua, Jeffrey Ahvan, and Rex Faumui allegedly kidnapped and severely assaulted “Victim A,” due to a conflict arising within their drug trafficking relationship and a disputed debt.
Specifically, as alleged in state court documents, on Aug. 13, 2017, the victim was lured into a garage where he was forcibly bound and gagged, and then severely beaten by an aluminum baseball bat, a broom stick, and stomps to the head. The victim was then put inside of a black metal dog kennel, while still bound and gagged. After threatening a person, at gunpoint, in the nearby area to back his pickup truck to the garage door, the four defendants then placed the kennel into the back of the truck, with the victim still inside the kennel. The driver was allegedly held at gunpoint and was told to leave and never be seen again. The victim was then dropped off at the hospital, where he was brought in for emergency treatment for fractures to his face and skull, which required brain surgery.
The federal indictment further alleges that Tamole Lauina provided aid and assistance to Macauther and Faamanu Vaifanua in order to prevent their arrest for the crimes alleged.
If convicted, the law provides a maximum sentence of life in prison and a fine of $250,000 for the kidnapping charge; a maximum sentence of 20 years in prison and a fine of $1 million for the drug trafficking conspiracy charge; a mandatory minimum sentence of seven years up to life in prison, and a fine of $250,000 for brandishing a firearm during and in relation to a drug trafficking conspiracy; and a maximum sentence of 15 years in prison and a fine of $250,000 for being an accessory after the fact. Under the federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorneys Stephan A. Collins and Adam Alexander.
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.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
19 Local Crips Gang Members Charged in Racketeering Conspiracy that Includes Five MurdersRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged 19 Columbus men associated with a local Crips gang in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes. The indictment was returned in Columbus on September 27 and 15 of the defendants are in custody today.
Attorney General Jeff Sessions, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division Columbus Police Chief Kim Jacobs, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the charges.
According to the indictment, the men are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
T&A
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
The boundaries of the gang’s territory are marked by Mt. Vernon Avenue to the south, Leonard Avenue to the north, Taylor Avenue to the east and St. Clair Avenue to the west.
The criminal organization included various subgroups, including, Atcheson Crip Gangsters (ACG), Catch A Body (CAB), Kwamie Gang (KMG), Waun Gang, Family Over Everything (FOE), Go Gang, On The Family (OTF) Toe Tag, and Go Crazy.
T&A identifies with the national Crip gang, adopting the traditional colors, symbols, culture, codes and enemies of the Crip gang. Its local rival Blood gangs include, but are not limited to, the Easthaven Bloods, Poindexter Thug Life (PTL) and the Milo Bloods.
T&A members marked the gang’s territory with graffiti and themselves with common tattoos. Members also produced songs to boast of the gang’s existence, communicate their violent methods and threaten non-members and rival gang members. These songs were posted on various social networking sites used by the T&A members.
Those charged include:
Name
Also Known As
Age
Dominique Bryant
Doggy
26
Charles Carson
23
Jonathan Dantzler
Jesus
26
Terrell Hansard
T Body
21
Andrew Harris
Drip
30
Eric Henderson, Jr.
Lil Go, Little E
19
Eric Henderson, Sr.
Easy
39
Michael Henderson
Bang
20
Steve Henderson, Jr.
Big Go, Tana
25
Brandon Martin
Gunner
26
Lee Devine McCrae
Capone
22
Shawn Nelms
Mook
25
Terrance Pyfrom
Tee
21
Donovan Reed
Don Don
26
Deswan Robinson
Dezzy
25
Thomas Seals
Bhomo
24
Derrick Thornton
Fresh
29
Marcus Walton
Ox, Wax
35
Michael Watson
Sossa
25
The Indictment
The seven-count indictment alleges:
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes within the Southern District of Ohio and elsewhere.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders.
On July 1, 2012 in the area of 431 Ellison Street, Dantzler and Nelms shot and killed Franky Tention.
On March 15, 2013, Martin, Nelms and Robinson shot and murdered William Moore, a rival gang member.
Michael Henderson and Watson shot and killed Marvin Ector on December 23, 2013, on East 5th Avenue.
On January 24, 2015, Carson shot and murdered Quincy Story.
Hansard was involved in the murder of Deaonte Fisher on March 4, 2016.
Additionally, from June 14, 2010 until March 15, 2017, the indictment details at least 26 separate incidences in which T&A gang members attempted to murder more individuals by shooting at them.
Co-conspirators also threatened and/or intimidated witnesses, using violence or the threat of violence to deter them from providing information to law enforcement and to enforce a “no snitching” code.
Defendants distributed cocaine, crack cocaine, heroin, oxycodone and marijuana. They also used “trap houses” in other individuals’ names to store and sell narcotics.
T&A members used the drug proceeds to purchase firearms to use in gang wars in Columbus. They often traveled to Huntington, W.Va, Portsmouth, Ohio and Chillicothe, Ohio (among other locations) to sell and purchase drugs and guns.
Each of the defendants faces life in prison. Carson, Dantzler, Hansard, Martin, Nelms, Robinson and Watson are charged with murder in aid of racketeering, a crime that could make them eligible for the death penalty.
“Violent gangs seek to dominate and control neighborhoods in Columbus and in cities across America—but we're fighting back,” Attorney General Jeff Sessions said. “Under the Department of Justice's crime reduction strategy, Project Safe Neighborhoods, we work with state and local law enforcement to target the most violent criminals in the most violent areas. In 2017 we prosecuted more violent criminals than in any year on record—and this past fiscal year we broke our own record. Today we take our next step of indicting 19 alleged gang members from the King-Lincoln neighborhood who are facing potential life sentences. The indictment alleges multiple murders and attempted murders. I want to thank the ATF, FBI, the Marshals Service, Columbus Police, and Franklin County Prosecutor Ron O’Brien for their hard work and I especially want to thank AUSAs Kevin Kelley, Noah Litton, and David DeVillers. This case is a perfect example of what PSN is all about.”
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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18th Street Gang Member Sentenced for Firearm ChargeRead the Press Release
BOSTON – A Salvadoran national was sentenced today in federal court in Boston for being an alien in possession of a firearm.
Roberto Portillo, aka “Mysterio,” 24, a Salvadoran national previously residing in Chelsea, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one year and one day in prison. Portillo will face deportation proceedings upon completion of his sentence. In June 2018, Portillo pleaded guilty to one count of being an alien in possession of a firearm and ammunition.
The case arose from an investigation into the criminal activities of 18th Street gang members. According to court documents, Portillo is a member of 18th Street, a violent gang that has engaged in a long-running feud with MS-13. On Jan. 13, 2018, law enforcement officers were investigating drug dealing in East Somerville when they saw three people inside a gray Honda Accord purchase drugs. After confirming the drug sale, law enforcement stopped the car and frisked the front passenger, later identified as Portillo, and found a silver semi-automatic pistol with an obliterated serial number loaded with five rounds of .25 caliber CBC ammunition in his pocket. A subsequent review of immigration databases revealed that Portillo had not legally entered the country, making him an illegal alien in possession of a firearm.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorney Timothy Moran of Lelling’s Organized Crime and Gang Unit prosecuted the case.
1 October 2018
Wichita Man to Remain in Jail on Federal Firearm ChargeRead the Press Release
WICHITA, KAN. – A convicted felon who lives in Wichita will remain in jail pending trial on a federal firearm charge, U.S. Attorney Stephen McAllister said Monday.
Justin Mashaney, 29, Wichita, Kan., appeared in federal court Monday for a hearing on whether he would be released pending trial. U.S. Magistrate Judge Gwynne E. Birzer granted the government’s motion to keep him in jail. Mashaney is charged with one count of unlawful possession of a firearm following a felony conviction.
According to an affidavit filed in the case, law enforcement officers were investigating the murder of Sedgwick County Sheriff’s Deputy Robert Kunze by Cody Greeson when they encountered Mashaney. They were investigating information they received that Mashaney and Greeson had been committing crimes together. Greeson and Deputy Kunze died Sept. 16 in an exchange of fire.
If convicted, Mashaney faces up to 10 years in federal prison and a fine up to $250,000. The Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
U.S. Attorney, Justice Department announce grant to Western District of Louisiana to fight opioidsRead the Press Release
LAFAYETTE, La. – On the first day of National Substance Abuse Prevention Month, U.S. Attorney David C. Joseph and the Department of Justice announced that a half a million-dollar grant has been awarded to the St. Mary Parish government drug court to aid in the battle against opioid abuse.
The grant is included in $320 million in grants the Department of Justice has issued to combat the opioid crisis across the United States. The unprecedented funding will directly help those most impacted by the deadliest drug crisis in American history, including crime victims, children, families and first responders. In St. Mary Parish, the $500,000 will be used for the improvement, enhancement or expansion of drug court services. The grants are provided to agencies within the Western District of Louisiana through the Office of Justice Programs (OJP).
Drug courts have been demonstrated to reduce recidivism and substance abuse among high risk, high need participants and increase their likelihood of successful rehabilitation. These courts integrate evidence-based substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services in judicially supervised court settings.
“Fighting the opioid epidemic is more than just about making arrests,” Joseph stated. “The Department of Justice supports drug courts and programs that aim to treat and address the underlying addiction left in the aftermath of opioid use. Through a multi-faceted approach, we can reduce damage caused by these dangerous drugs. I want to thank the Justice Department for making these funds available to the citizens of St. Mary Parish.”
“President Trump has made ending the opioid crisis a priority for this administration, and under his leadership, the Department of Justice has taken historic action,” said Attorney General Jeff Sessions. “Today we are announcing our next steps: investing $320 million into all three parts of the President’s comprehensive plan to end the epidemic: prevention, treatment and enforcement. We are attacking this crisis from every angle—and we will not let up until we bring it to an end.”
In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. October marks two important anti-drug events: Red Ribbon Week and National Prescription Drug Take Back Day. Red Ribbon Week takes place every year between October 23 to 31 and encourages students, parents, schools and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 aims to provide an opportunity for Americans to prevent overdose deaths and drug addictions before they start. DOJ expanded on DEA’s Drug Take Back Days and collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017.
The Attorney General has been resolute in the fight against the drug crisis in America. The Department assigned more than 300 federal prosecutors to U.S. Attorneys’ offices and hired more than 400 DEA task force officers, announced the formation of Operation Synthetic Opioid Surge, a new program to reduce the supply of deadly synthetic opioids in high impact areas, and created a new data analytics program called the Opioid Fraud and Abuse Detection Unit to assist 12 prosecutors sent to drug “hot spot districts.” In addition, the Department charged more than 3,000 defendants with trafficking in heroin, fentanyl, or prescription drugs in fiscal year 2017, announced the first-ever indictments of Chinese nationals for fentanyl trafficking, and scheduled variants of fentanyl to prevent illicit drug labs from circumventing the law. In addition, DOJ executed the largest ever health care fraud enforcement action charging more than 600 defendants and proposed rules consistent with President Trump’s “Safe Prescribing Plan,” requiring a reduction of ten percent in 2019 in manufacturing quotas. The Department dismantled AlphaBay, the largest criminal marketplace on the Internet and has already generated prosecutions in the fight against online drug trafficking through the Joint Criminal Opioid Darknet Enforcement Team (J-CODE).
The approximately $320 million awarded by the OJP will be distributed in order to maximize effectiveness over the country. A breakdown of the grant funding can be found here.
- Innovative Prosecution Solutions for Combating Violent Crime and Opioid Abuse ($2.8 Million) to help prosecutors develop strategies to address violent crime caused by illegal opioid distribution and abuse.
- Comprehensive Opioid Abuse Site-based Program ($162 Million) to help jurisdictions plan and implement programs aimed at reducing opioid abuse and mitigating its impact on crime victims, including training and technical assistance.
- Justice and Mental Health Collaboration Program ($5.9 Million) to address the treatment needs of people using opioids under the Justice and Mental Health Collaboration Program.
- Helping Children and Youth Impacted by Opioids ($46.6 Million) to help children and youth impacted by the opioid crisis, including training and technical assistance.
- Drug Courts ($81.2 Million) to assist adult, juvenile, and family drug courts and veterans treatment courts, including training and technical assistance.
- Paul Coverdell Forensic Science Improvement Grant Program ($17 Million) to address the dramatic increase in deaths and the backlogs of seized drugs as a result of the opioid crisis.
- Opioid-Related Research for Criminal Justice Purposes ($4.1 Million) to develop of new tools to enforce the law, ensure public safety, prevent and control crime, and ensure fair and impartial administration of justice.
The Office of Justice Programs provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Shappert Announces Enhanced Efforts to Make our Communities Safer through Project Safe NeighborhoodsRead the Press Release
"Reducing violent crime and enhancing public safety are primary goals of the U.S. Attorney’s Office here in the Virgin Islands", U.S. Attorney Gretchen C.F. Shappert announced today. "On the one-year anniversary of the re-energized Project Safe Neighborhoods, we are moving forward with renewed energy to investigate and prosecute violent crime, even as we celebrate the hard work and dedication of our community and law enforcement PSN partners."
One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program that has proven effective at reducing violent crime. Through PSN, community 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.
Here in the Territory, the U.S. Attorney’s Office (USAO) has collaborated with federal and territorial law enforcement, local organizations, and members of the community to re-focus on violent crime prosecutions, to increase training opportunities, to enhance partnerships, and to develop new strategies designed to reduce violent crime and make our neighborhoods safer for everyone. Ongoing communication and dialog are important components of the strategy.
"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."
As examples of the revitalized PSN program, Shappert pointed to significant examples of collaboration that are designed to improve public safety:
Enforcement Actions:
• An ongoing case-screening process between the USAO and the Virgin Islands Attorney General’s Office to identify the most appropriate forum for criminal prosecution of cases that impact our communities;
• A strong emphasis on federal prosecution of firearms cases to prevent additional acts of violence. In July, for example, defendants on St. Croix were sentenced to federal prison for mailing a pistol and an AR-15 lower receiver through the U.S. mails and for possession of a firearm associated with a planned robbery. Other federal firearms prosecutions have focused on the use of firearms in the commission of violent felonies, such as robbery, and the apprehension of individuals who are prohibited under federal law from carrying a firearm, such as convicted felons.
• Systematic investigation and prosecution of criminal groups—conspiracies, crews, and gangs—that use violence for monetary gain. Following the violent robbery of the Gems and Gold Corner jewelry store in St. Thomas, three of the perpetrators were convicted in a January of 2018 jury trial in federal court. Five other members of the conspiracy entered guilty pleas, one on a separately filed bill of information. Members of the conspiracy received significant federal sentences and were ordered to pay restitution.
• Recognizing the strong nexus between violent crime and narcotics trafficking, federal law enforcement in the USVI have re-doubled their efforts to apprehend drug smugglers in the Territory. These efforts have led to recent drug seizures on vessels and at the airport. In September of 2018, for example, approximately 36 kilograms of cocaine were seized at the Cyril E. King Airport on a single day.
Recent Training Opportunities for Federal and Territorial Law Enforcement:
• March 2018: discovery training for law enforcement to ensure professional investigation and prosecution of criminal cases, consistent with legal and constitutional requirements.
• May 2018: asset forfeiture and victim issues training to support efforts to "take the profit out of crime" and to ensure that law enforcement is sensitive to victim-related issues in criminal cases.
• Ongoing roll-call trainings for VIPD personnel by federal prosecutors and agents on timely legal issues.
• September 2018: "The Blue Campaign", a DHS-USAO collaboration to train law enforcement and community members on how to identify human trafficking. Classes for law enforcement also included training on how to investigate and prosecute these crimes.
Community Outreach:
• PSN-sponsored community discussions at Public Housing meetings.
• Law enforcement and federal prosecutor presentations at local schools.
• Radio presentations to discuss public safety issues.
• Community meetings and a round-table discussion of human trafficking issues.
Despite these efforts, the violent crime rate in the Territory remains high. A recent PBS News Hour for 2016, the international gun-related deaths per capita statistics place the U.S. Virgin Islands seventh in the world if the USVI were treated as its own country. "We all agree that the violent-crime rate for the Territory is unacceptable," Shappert said. "We have our work cut out for us. Working together, we will develop and strengthen the necessary relationships that will enable us to create safer communities."
Learn more about Project Safe Neighborhoods.
U.S. Attorney Announces Progress in Making Our Communities Safer Through Project Safe Neighborhoods in FresnoRead the Press Release
SACRAMENTO, Calif. — One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. PSN is a nationwide initiative that brings together federal, state, and local law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. The PSN strategy empowers each district to develop targeted, localized violent crime reduction strategies, tailoring solutions to each individual community. PSN has been proven to reduce violent crime since it was launched in 2001, and the revitalized version has been enhanced with new technologies and a redoubling of efforts to strengthen partnerships with local communities.
“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.”
U.S. Attorney Scott stated: “Our office has a strong track record of working with our federal, state and local partners to prosecute cases aimed at reducing violent crime in our communities. We have developed a model that targets the most violent street gangs plaguing counties in our district, and we have focused on stemming the tide of illegal firearms flowing into our communities, prosecuting those who manufacture, distribute, and possess those weapons. We have deployed this strategy in the Counties of Fresno, Sacramento, San Joaquin, Shasta, Kern, Solano and Tulare, and we are working to spread this model throughout the district. Project Safe Neighborhoods is alive and well in the Eastern District of California.”
The U.S. Attorney’s Office works regularly with District Attorney’s Offices in Fresno, Sacramento, Kern, Stanislaus, Solano, and Tulare Counties, and partners with local law enforcement and federal agencies to target drivers of violence in those communities, including gang members and those who inject illegal firearms into the hands of criminals. This team collects and analyzes statistical and anecdotal data to refine the targeted use of pooled resources. Since the revitalization of PSN in October 2017, more than 110 defendants have been indicted federally for charges arising from PSN investigations in Fresno, Kern, Merced, Stanislaus, and Tulare Counties. In 2018, a total of 35 PSN defendants were sentenced to between two and 15 years in prison.
Project Safe Neighborhoods has helped to reinvigorate existing partnerships in our district, which has a history of successful collaborations with local, state and federal law enforcement agencies. Those collaborations have resulted in several large-scale, long-term, multidefendant gang cases, with many arrests, guilty pleas, and sentencings occurring over the past year. Below are examples.
- Operation Blue Inferno (Fresno) — 21 defendants were charged with offenses including murder, kidnapping, assault with a dangerous weapon in aid of racketeering, as well as a drug trafficking conspiracy.
- Operation Dog Track (Fresno) — The defendants were charged with various racketeering, human trafficking, fraud and firearms offenses in U.S. v. James York, et al. All 17 defendants have pleaded guilty, and 11 have been sentenced, receiving sentences of up to 10 years in prison.
- Operation Alpha Dog (Fresno) — The 2017 investigation into Fresno criminal street gangs resulted in federal charges against 18 defendants and state charges against at least 14 defendants. The various charges include drug trafficking, conspiracy to traffic illegally in firearms, and transportation for the purpose of prostitution.
- Operation Blind Mice (Kern)— A multi-agency investigation of Bakersfield’s West Side Crips gang resulted in federal indictments against 11 gang members or associates as well as state charges against approximately 30 individuals for crimes ranging from burglary to murder.
- Operation Downward Dog — Two defendants from this operation were in court last week: Christopher Martinez Jr. pleaded guilty to a drug trafficking conspiracy, and Randy Seja was sentenced to 10 years in prison for his role in the drug trafficking conspiracy. Both were members of the Bulldogs criminal street gang and ranking members of the related Malos Hechos motorcycle gang.
- Operation Red Sol (Tulare) – The final defendant, Fabian Magana, from this Tulare County operation targeting Nortenos and associates, was sentenced in November 2017. The investigation resulted in 6 federal indictments and convictions on drug trafficking and firearms charges, and a substantial number more state charges. All 6 defendants have been sentenced with sentences up to 15 years imprisonment.
Additionally, Project Safe Neighborhoods has targeted individuals engaged in a number of firearms offenses, including armed robbery, felons in possession of firearms and firearms trafficking. Some of those cases are highlighted below. - Javier Alonso Beltran and Ulises Medina were members of a conspiracy that committed a series of armed robberies of gas stations, convenience stores, and liquor stores in Tulare and Kern counties from May 19, 2016, until July 22, 2017.
- On April 5, 2018, a federal grand jury returned an indictment charging seven Tennessee and California residents with various firearms offenses. Firearms purchased in Tennessee were shipped to California where they were offered for sale.
- On March 8, 2018, Turlock residents Miguel Rosas and Francisco Rosas were charged with dealing in firearms without a license with regard to the sale of 24 firearms, including a multiple AR-15 style rifles, a short barrel shotgun, a short barrel rifle, bulletproof vests and ammunition. Jaime Arellano, of Fresno, was charged with being a felon in possession of a firearm.
- On March 8, 2018, Jovan Escalante of Fresno, was indicted for maliciously damaging a building by fire. Escalante allegedly threw multiple Molotov cocktails (ignited bottles of gasoline) at an apartment complex in Fresno, causing fire damage to the apartment and a car parked at the apartment complex.
- On June 4, 2018, Luvell Ronell Blinks, a two time convicted felon and East Side Crips gang member, was sentenced to five years in prison for possession of a loaded .357‑caliber Smith and Wesson revolver and a loaded handgun.
In addition to prosecutions, the Project Safe Neighborhoods initiative in Fresno and Bakersfield supports law enforcement, clergy and community groups working to reduce gun violence. This is critical, as the goal of PSN is not to merely manage or punish crime but to make every district safer through community partnerships.
In Fresno, the HOPE Coalition does a monthly block party where food/groceries are given away, bicycles for kids are given away, and free food and entertainment are provided. The location of the block parties are typically ones where a shooting has occurred and the residents may be too fearful to come out of their houses. The block party tries to bring the neighborhood together. The HOPE Coalition also organizes special events to give away backpacks, Christmas presents & Easter baskets. They are currently working on hosting evening community forums at Southeast Schools.
The Bakersfield Safe Streets Partnership also does occasional block parties with other non-profit organizations, as well as, partnering with Kern County Superintendent of Schools for various youth trainings – Youth Mental Health First Aid & Youth Mentoring. They also do an annual Stop the Violence March.
Bakersfield also hosts meetings in which law enforcement, clergy, social service organization, medical providers, and the community come together to talk to individuals who are involved in gangs or are at risk for becoming involved in gangs in an effort to provide alternatives to choosing that path.
Improvements to Community Safety
- The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline. The nationwide violent crime rate decreased by approximately 1 percent in 2017, while the nationwide homicide rate decreased by nearly 1.5 percent.
- The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly 5 percent in those cities in the first six months of 2018 compared to the same period a year ago.
- In the city of Fresno, one area in which PSN partnerships are strong, statistics from the Fresno Police Department show a decline in violent crime, including murders and shootings since 2017. As of September 3, 2018, in the city of Fresno, there is a 34 percent reduction in murders, a 24 percent reduction in gang-related murders, a 29 percent reduction in shootings, a 27 percent reduction in gang-related shootings, and a 12 percent reduction in robberies.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
Two Fort Thompson Men Charged with Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that two Fort Thompson, South Dakota, men have been indicted by a federal grand jury for Possession of a Stolen Firearm and Felon in Possession of Firearm.
Jacob Hawk Wing, age 24, and Craig Ross, age 29, were indicted on September 11, 2018. Both men 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, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 29, 2018, Hawk Wing and Ross did knowingly possess, receive, conceal, store, barter, sell, and dispose of a stolen firearm. At the time Hawk Wing and Ross possessed the firearm, Ross had been previously convicted of a crime punishable by imprisonment for a term of one year.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The charges are merely accusations and Hawk Wing and Ross are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Hawk Wing and Ross were both remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Two District Men Plead Guilty to Charges in Killing of Man in Southeast WashingtonRead the Press Release
WASHINGTON – Kevin Grover, 26, of Washington, D.C., pled guilty today to killing a man in broad daylight in February 2016 in Southeast Washington. A second defendant, Justin Robinson, 19, also of Washington, D.C., pled guilty to a related charge.
The guilty pleas were announced by U.S. Attorney Jessie K. Liu.
Grover pled guilty to second-degree murder, and Robinson pled guilty to assault with intent to kill. Both pleas were before the Honorable Judith Bartnoff in the Superior Court of the District of Columbia. The pleas, which are contingent upon the Court’s approval, call for Grover to be sentenced to 16 to 20 years in prison and for Robinson to be sentenced to three to seven years of incarceration. Judge Bartnoff scheduled a sentencing hearing for Dec. 14, 2018.
According to the government’s evidence, on Feb. 24, 2016, at about 2:30 p.m., Robinson and the victim, Demetrius Medlay, bumped shoulders and briefly argued at a market in the 3100 block of Martin Luther King, Jr. Avenue SE. Robinson drove away, but returned to the area about 10 minutes later. He got out of the car holding a handgun with an extended magazine. While waving the gun, he argued with Mr. Medlay on the sidewalk and then drove off.
Robinson stopped the car at the corner of Martin Luther King Jr. Avenue and Esther Place SE at about 2:45 p.m. Grover was standing at the corner. Referring to Mr. Medlay, Robinson said, “You can smoke him,” to which Grover replied, “All right.”
Moments later, Grover pulled a semi-automatic firearm out of his pocket and pointed it at Mr. Medlay. He shot him twice in the chest. Grover fled the scene. Mr. Medlay ran back to the food market, where he collapsed. Mr. Medlay, 22, was pronounced dead a short time later.
A law enforcement investigation led to Grover’s arrest in August 2016. Robinson was arrested in in July 2017.
In announcing the pleas, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the assistance provided by the U.S. Secret Service, the U.S. Marshals Service, the Capital Area Regional Fugitive Task Force, and the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Charles Willoughby, Jr., former Assistant U.S. Attorney Richard DiZinno, Paralegal Specialist Sharon Newman, former Paralegal Specialist Zekiah Wright, and Investigative Analyst Zachary McMenamin.
Finally, she commended the work of Assistant U.S. Attorney Jeffrey Nestler, who investigated and prosecuted the case.
Twenty Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that twenty previously deported aliens were indicted separately on September 26, 2018, by a federal grand jury for illegal re-entry into the United States. These matters arose in counties throughout the District including Cumberland, Dauphin, Franklin, Lackawanna, Lebanon, Luzerne, Monroe and York.
According to United States Attorney David J. Freed, Rogaciano Hernandez-Sanchez, age 56, of Mexico, was previously deported from the United States to Mexico in March 2001, October 2009, and May 2012. He is alleged to have illegally re-entered the United States sometime after May 2012, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Jose Perez-Amaro, age 23, of Mexico, was previously deported from the United States to Mexico in March and April 2016. He is alleged to have illegally re-entered the United States sometime after April 2016, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Hernandez-Sanchez and Perez-Amaro face a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Wilder Orodonez-Calderas, age 26, of Guatemala, was previously deported from the United States to Guatemala in March 2018. He is alleged to have illegally re-entered the United States sometime after March 2018, and was found in the United States in Monroe County, Pennsylvania after eluding examination or inspection by immigration officers.
Francisco Sacaria, age 38, of Honduras, was previously deported from the United States to Honduras in July 2014. He is alleged to have illegally re-entered the United States sometime after July 2014, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Abel Perez-Perez, age 25, of Mexico, was previously deported from the United States to Mexico in November 2013. He is alleged to have illegally re-entered the United States sometime after November 2013, and was found in the United States in Lebanon County, Pennsylvania after eluding examination or inspection by immigration officers.
Gustavo Vazquez-Ramirez, age 31, of Mexico, was previously deported from the United States to Mexico in May 2011. He is alleged to have illegally re-entered the United States sometime after May 2011, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Juan Martinez-Vazquez, age 29, of Mexcio, was previously deported from the United States to Mexico in August and September 2012. He is alleged to have illegally reentered the United States sometime after September 2012 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Jairo Rodrigues-Murillo, age 39, Honduras, was previously deported from the United States to Honduras in June 2008 and March 2012. He is alleged to have illegally re-entered the United States sometime after March 2012, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Irais Estrada-Martinez, age 32, of Mexico, was previously deported from the United States to Mexico in December 2015. She is alleged to have illegally re-entered the United States sometime after December 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Nicacio Lopez-Hernandez, age 37, of Mexico, was previously deported from the United States to Mexico in February 2014 and January 2015. He is alleged to have illegally re-entered the United States sometime after January 2015, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Pedro Santiz-Santiz, age 29, of Mexico, was previously deported from the United States to Mexico in October 2012. He is alleged to have illegally re-entered the United States sometime after October 2012, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Hipolito Morales-Cortez, age 51, of Mexico, was previously deported from the United States to Mexico in January 2007. He is alleged to have illegally re-entered the United States sometime after January 2007, and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Martin Romero-Mercado, age 47, of Mexico, was previously deported from the United States to Mexico in September and October 2017. He is alleged to have illegally re-entered the United States sometime after October 2017, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Ernesto Guevara-Aldade, age 38, of Mexico, was previously deported from the United States to Mexico in September 2015. He is alleged to have illegally re-entered the United States sometime after September 2015, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Jesus Carranza-Mondragon, age 29, of Mexico, was previously deported from the United States to Mexico in June 2014 and July 2014. He is alleged to have illegally re-entered the United States sometime after July 2014, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Kevin Lopez-Calderon, age 30, of Guatemala, was previously deported from the United States to Guatemala in November 2006 and March 2013. He is alleged to have illegally re-entered the United States sometime after March 2013, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Luis Avila-Munguia, age 29, Guatemala, was previously deported from the United States to Guatemala in September 2010 and August 2015. He is alleged to have illegally reentered the United States sometime after August 2015 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Estaban Santiago-Sanchez, age 38, of Mexico, was previously deported from the United States to Mexico in August 2016. He is alleged to have illegally re-entered the United States sometime after August 2016, and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Ramiro Olivares-Velasquez, age 27, of Mexico, was previously deported from the United States to Mexico in June 2013 and July 2015. He is alleged to have illegally re-entered the United States sometime after July 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Rogaciano Hernandez-Sanchez, age 56, of Mexico, was previously deported from the United States to Mexico in March 2001, October 2009, and May 2012. He is alleged to have illegally re-entered the United States sometime after May 2012, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Orodonez-Calderas, Sacaria, Perez-Perez, Vazquez-Ramirez, Martinez-Vazquez, Rodrigues-Murillo, Estrada-Martinez, Lopez-Hernandez, Santiz-Santiz, Morales-Cortez, Romero-Mercado, Guevara-Aldade, Carranza-Mondragon, Lopez-Calderon, Avial-Munguia, Santiago-Sanchez, Olivares-Velasquez and Hernandez-Sanchez face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
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.
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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Tuba City Woman Sentenced to 72 Months in Prison for Stabbing on Navajo ReservationRead the Press Release
PHOENIX – Today, Tomacita Nez, 41, of Tuba City, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 72 months’ prison followed by three years’ supervised release. Nez had previously pleaded guilty to one count of voluntary manslaughter.
Nez admitted to stabbing the victim during a domestic disagreement outside her home on the Navajo Nation Indian Reservation. The victim died as a result of his injuries. Judge Humetewa denied the defense attorney’s request for a lower sentence, describing the offense as “incredibly violent” and finding Nez was a danger to the community. Both Nez and the victim were members of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08314-PCT-DJH
RELEASE NUMBER: 2018-126_Nez
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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.
Texas Resident Sentenced in South Florida to More Than 6 Years in Prison for Violations of the Cuban EmbargoRead the Press Release
On September 27, 2018, a Texas resident was sentenced in the Southern District of Florida to 6.5 years in prison for unlawfully exporting to Cuba electronic devices that require a license to export due to national security controls.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert J. Luzzi, Special Agent in Charge, U.S. Department of Commerce Office of Export Enforcement (OEE), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office made the announcement.
Bryan Evan Singer, 46, of Bryan, Texas was convicted at trial for attempting to illegally smuggle electronics to Cuba in violation of the Cuban Embargo, in violation of Title 18, United States Code, Section 554, and for making false statements to federal law enforcement, in violation of Title 18, United States Code, Section 1001(a)(2). On September 27, 2018, U.S. District Court Chief Judge K. Michael Moore sentenced Singer to 78 months in prison, to be followed by supervised release.
On May 2, 2017, Singer intended to travel from Stock Island, Florida to Havana, Cuba aboard his vessel “La Mala.” Prior to Singer’s departure, law enforcement conducted an outbound inspection of the boat. During the inspection, Singer declared that he was only bringing to Cuba those items observable on the deck, and that the value of those items was less than $2,500. However, law enforcement conducting the search discovered a hidden compartment under a bolted down bed in the cabin of Singer’s boat. In the hidden compartment, law enforcement discovered hundreds of electronic devices, valued at over $30,000. Included in those devices were over 300 Ubiquiti Nanostation Network devices, which are designed to provide highly encrypted connections between computer networks over long distances. These devices require a license for export to Cuba, under United States law, because their capabilities threaten national security. Singer never sought or obtained a license to export to Cuba, prior to his offenses of conviction.
U.S. Attorney Fajardo Orshan commended the investigative efforts of OEE, ICE-HSI, and CBP in this matter. Mrs. Fajardo Orshan thanked the U.S. Coast Guard for the agency’s assistance. This case was prosecuted by Assistant U.S. Attorney Brian J. Shack.
Related court documents and information can be found on the District Court for the Southern District of Florida’s website at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Charleston Man Pleads Guilty to Federal Heroin and Fentanyl ChargesRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pled guilty today to federal heroin and fentanyl charges, announced United States Attorney Mike Stuart. Christopher Thomas Campbell, 24, entered his guilty plea to distribution of heroin and fentanyl before United States District Judge Joseph R. Goodwin. Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team (MDENT).
“Fentanyl is deadly,” said United States Attorney Mike Stuart. “We are vigorously prosecuting the peddlers of this poison, regardless of drug quantity. Too many lives are being lost at the hands of heroin and fentanyl dealers. We will not stand idly by – we will hold them accountable and put them behind bars.”
On January 2 and 11, 2018, MDENT agents made controlled purchases of heroin and fentanyl from Campbell at his Goshorn Street apartment in South Charleston. Shortly after the second purchase, MDENT agents arrested Campbell at his apartment. Following his arrest, Campbell admitted to police that he had been selling heroin for approximately one year. Campbell was on bond at the time of the offense for drug charges unrelated to the federal offense.
Campbell faces up to forty years when he is sentenced on January 7, 2019. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Serial Pedophile Committed to Federal Custody as a Sexually Dangerous PersonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr., announced that Chief United States District Judge James C. Dever, III, committed JACK LOUIS SPORICH, 84, to the custody of the Attorney General as a sexually dangerous person. SPORICH is now the oldest sex offender to be committed under the Adam Walsh Child Protection and Safety Act of 2006.
SPORICH has a long history of sexually molesting children and was once considered one of California’s most dangerous sex offenders. His first known sexual offense occurred in 1966. Over the course of the next 50 years – and despite a lengthy prison sentence, a term of state parole, and an involuntary commitment in a state hospital – SPORICH continued molesting children as young as five years old. Even in his seventies, Sporich traveled to Cambodia, where he enticed children with money, toys, clothes, food, and other items, and then sexually molested them. The evidence at trial demonstrated that SPORICH has molested at least ten children in his lifetime.
In March 2017, and while SPORICH was serving a federal prison sentence for his offenses in Cambodia, the United States certified him as a sexually dangerous person under the Adam Walsh Child Protection and Safety Act. Congress passed that Act in 2006 to provide another powerful legal mechanism for protecting the public from some of the most dangerous sexual offenders. The Act allows the United States to seek civil commitment of sexually dangerous persons who, because of a serious mental illness, abmnormality, or disorder, would have serious difficulty refraining from sexually violent conduct or child molestation.
The United States believed that SPORICH met every element of that definition. The Court agreed. On September 27, 2018, after a bench trial, Judge Dever committed SPORICH to the custody of the Attorney General as a sexually dangerous person. In doing so, Judge Dever explained that SPORICH is not able to control his urges as they relate to children and continues to be sexually attracted to boys ages 8-12. Judge Dever noted that Sporich’s offense conduct spans much of his adult life and demonstrates extraordinary efforts to create an atmosphere in which he could molest young boys.
“Jack Sporich is an unrelenting, unrepentant sexual predator,” said U.S. Attorney Higdon. “He clearly could not control his deviant sexual urges, and children the world over suffered for it. No more. Our children and our communities are safer with Sporich off the streets, and he can now get the treatment that he so desperately needs.”
The United States Attorney’s Office for the Eastern District of North Carolina litigates all Adam Walsh Act cases for the entire country. All sexually dangerous persons who are committed to federal custody are housed in a federal facility in that district, where intensive, residential treatment is offered to them. SPORICH is the eightieth sexually dangerous person committed under the Adam Walsh Act.
Special Assistant United States Attorneys Michael Bredenberg and Genna Petre, and Assistant United States Attorney Michael Anderson, represented the government in this case.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on September 24, 2018, by U.S. District Judge Roberto A. Lange.
Calvin Gillette, age 27, was sentenced to 4 months in federal prison, 4 months of home confinement, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Gillette was indicted by a federal grand jury on September 12, 2017. He pled guilty on July 11, 2018.
The conviction stemmed from an incident on January 31, 2017, when Gillette fled from Rosebud Sioux Tribal Law Enforcement, and hid in the basement of a residence under some boxes and clothing. When law enforcement located Gillette, he began to resist arrest and wrestled with the law enforcement officers attempting to detain him. Law enforcement ultimately had to use pepper spray on Gillette to gain his compliance.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Gillette was immediately turned over to the custody of the U.S. Marshals Service.
Rolling 30s Crips Gang Member Sentenced to Prison for Gun and Drug OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jose Ramon Rivera (23, Orlando) to 10 years and 11 months in federal prison for distributing heroin and methamphetamine, possessing firearms as a convicted felon, and carrying a firearm during a drug-trafficking crime. Rivera pleaded guilty on July 12, 2018.
According to court documents and testimony at sentencing, Rivera is a member of the Rolling 30s Crips gang, which has been linked to several homicides in the Orlando area. Within weeks of his release from state prison, Rivera sold heroin, methamphetamine, and a firearm to a confidential informant who was acting at the direction of law enforcement. A few days later, Rivera sold the informant an assault-style rifle and additional heroin and methamphetamine.
This case was investigated by the U.S. Drug Enforcement Administration, the Orange County Sheriff’s Office, the U.S. Marshals Service, the Clermont Police Department, the Longwood Police Department, the Winter Garden Police Department, and the Winter Park Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Rochester Man Sentenced on Charge Involving Synthetic CannabinoidsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Mohammed Akram, 30, of Rochester, NY, who was convicted of misbranding food, was sentenced by U.S. District Judge Elizabeth A. Wolford to 60 months in prison.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between November 2014 and April 2015, the defendant managed Best in the West, a convenience store located at 670 Jay Street in Rochester. On April 14, 2015, search warrants were executed at that location and at the apartment above the store, where Akram lived. Officers recovered $67,847 in United States currency and approximately 1,900 packets of suspected synthetic cannabinoids.
The defendant traveled to New York City to purchase and transport bulk quantities of 3-5 ounce packages containing green vegetable matter to Rochester. The packages were labeled “G-20,” “Bizarro,” “Mardi Gras,” “G10 Potporri,” “Mr. Happy,” “WTF,” “VooDoo,” “Remarkable Herbs,” “MR SIN,” “Scooby Snax,” and “Mad Hatter.” The green vegetable matter was laced with chemicals that were not authorized by law for human consumption. The defendant, who claimed the packages were potpourri, offered the various packages of green vegetable matter for retail sale in the convenience store knowing that customers intended to ingest the green vegetable matter.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, New York, New York Field Division, and the New York State Police, under the direction of Major Eric Laughton.
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Robbery Duo Convicted at Trial Sentenced to Lengthy Federal Prison TermsRead the Press Release
PITTSBUGRH, PA – Kahlil Shelton, age 23, formerly of Duquesne, PA and Deron Howell, age 25, formerly of Swissvale, PA have been sentenced to 192 months and 511 months, respectively, and three years of supervised release on numerous drug, firearm, and robbery convictions, United States Attorney Scott W. Brady announced today. Shelton and Howell were tried before United States District Court Judge Billy Roy Wilson in Pittsburgh in May of 2018. As a result of their convictions, Howell faced a mandatory minimum 30 years of imprisonment and Shelton faced a mandatory minimum seven years of imprisonment.
According to Assistant United States Attorneys Timothy Lanni and Jeffrey Bengel, who prosecuted the case, the evidence presented at trial established that on or about July 27, 2017, Deron Howell, and two unidentified accomplices used firearms to rob four professional video game players of $6,700 dollars to be used at a video game tournament. Howell accomplished the robbery by picking up the four victims at the Pittsburgh International Airport in his silver Kia Optimum and driving them to a section of the City of Pittsburgh. After Howell locked the victims in the car, two unknown accomplices pulled the victims from the car and held them at gunpoint with an AK-47 and a pistol, while Howell stripped the victims of their belongings, the $6700 dollars, and their luggage.
Additionally, on or about August 7, 2017, Howell and Kahlil Shelton also robbed two individuals of marijuana in Cranberry, PA while using firearms. Howell and Shelton organized this robbery by telling the victim that they wanted to purchase approximately six pounds of marijuana. Howell, Shelton, and a third unknown accomplice then travelled to the victim’s house in Cranberry, PA. Upon arrival, Shelton excused himself to go to the bathroom and returned from the bathroom holding a firearm to the head of both of the victims. At this time, Howell stole the marijuana from one of the victims. The second victim struggled with Shelton before attempting to flee from the house. Before the second victim could flee from the house, the third unknown accomplice shot the victim through the chest. Howell and Shelton committed this robbery while a 6-year-old child was in the room.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Cranberry Township Police Department, and the City of Pittsburgh Police conducted the investigation leading to the convictions in this case.
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.
Retired Nurse Sentenced to 5 Years in Prison for Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTINE MILES, 59, of Windsor Locks, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MILES and others conspired to possess and distribute heroin, oxymorphone, hydrocodone and alprazolam. MILES is a retired nurse.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of MILES and Montoya’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. MILES and her husband, Oscar Montoya, were arrested on state charges after the search.
The investigation revealed that, through this drug trafficking conspiracy, MILES and Montoya amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, after MILES’ arrest on state drug charges in August 2016, MILES and Montoya used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
MILES and Montoya were arrested on federal charges on November 16, 2017, and have been detained since their arrests. On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.
On May 15, 2018, MILES pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000.
As part of this case, MILES and Montoya agreed to forfeit their Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Montoya pleaded guilty to the same charges and, September 4, 2018, was sentenced to 36 months of imprisonment.
On May 22, 2018, Miles’s daughter, Christy Miles, pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam. She awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Hartford Resident Office and the U.S. Marshals Service, with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor and Manchester Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Pottawatomie County Man to Serve 210 Months in Prison for Unlawful Possession of FirearmsRead the Press Release
OKLAHOMA CITY – ADRIAN DAVID RAY GERDON, 38, of Pottawatomie County, has been sentenced to 210 months in federal prison for being a convicted felon in possession of a firearm, announced Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma.
According to court records, state authorities issued felony arrest warrants in unrelated cases for Gerdon on December 28, 2017. An investigation led law enforcement to Gerdon, who had been hiding out in a trailer in Newalla, Oklahoma. During Gerdon’s arrest on January 24, 2018, law enforcement discovered a Smith and Wesson, Model 3913, 9mm pistol in the trailer along with a Savage Arms, Mark II, .22 caliber rifle. Further investigation revealed that Gerdon had previous felony convictions in Pottawatomie County for domestic assault and battery by strangulation, burglary in the first degree, assault with a dangerous weapon, possession of illegal drugs, bringing illegal drugs into a jail, and domestic assault and battery resulting in great bodily injury. Under federal firearms laws, Gerdon was prohibited from being in possession of any firearm because of his prior felony convictions.
On March 7, 2018, Gerdon was indicted by a federal grand jury for being in unlawful possession of a firearm following his felony convictions. He pleaded guilty on May 17, 2018.
At his sentencing hearing on September 28, United States District Judge Vicki Miles-LaGrange found that Gerdon’s criminal history makes him an Armed Career Criminal, which increases his minimum punishment to 15 years in prison. Judge Miles-LaGrange ordered the 210 months to be served concurrently with several previously-imposed state-court sentences. Additionally, Gerdon was ordered to serve three years of supervised release after his prison term.
This sentence is the result of an investigation by the Bureau of Alcohol Tobacco Firearms and Explosives, the Shawnee Police Department, and Oklahoma’s District 23 Drug and Violent Crimes Task Force, with assistance from the Cleveland County District Attorney’s Office and the Pottawatomie County District Attorney’s Office. Prosecuted by Assistant U.S. Attorney Mark R. Stoneman, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to public filings for further information.
Pomona Woman Sentenced to Federal Prison in Scheme to Smuggle Restricted Space Communications Technology to ChinaRead the Press Release
SANTA ANA, California – A Chinese national who pleaded guilty to participating in a scheme that illegally exported sensitive space communications technology to China was sentenced today to serve 46 months in federal prison.
Si Chen, 33, a Pomona resident who has been in custody since her arrest in May 2017, was sentenced by United States District Judge Cormac J. Carney.
Chen, who used various aliases, included “Cathy Chen,” pleaded guilty in July to conspiracy to violate the International Emergency Economic Powers Act (IEEPA), which controls and restricts the export of certain goods and technology from the United States to foreign nations. Chen also pleaded guilty to money laundering and using a forged passport with her photo but a different name that appeared to have been issued by the People’s Republic of China.
“This defendant knowingly participated in a plot to secretly send items with military applications to China,” said United States Attorney Nick Hanna. “The smuggled items could be used in a number of damaging ways, including in equipment that could jam our satellite communications. We will aggressively target all persons who provide foreign agents with technology in violation of U.S. law.”
According to court documents, from March 2013 through the end of 2015, Chen purchased and smuggled sensitive items to China without obtaining licenses from the U.S. Department of Commerce that are required under IEEPA. Those items included components commonly used in military communications “jammers.” Additionally, Chen smuggled communications devices worth more than $100,000 that are commonly used in space communications applications. Chen falsely under-valued the items on the shipping paperwork to avoid arousing suspicion. Chen received payments for the illegally exported products through an account held at a bank in China by a family member.
Under IEEPA, it is crime to willfully export or attempt to export items that appear on the Commerce Control List without a license from the U.S. Department of Commerce. These are items authorities have determined could be detrimental to regional stability and national security.
“The export of sensitive technology items to China or anywhere else in the world is tightly regulated for good reason,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “One of HSI’s top enforcement priorities is preventing U.S. military products and sensitive technology from falling into the hands of those who might seek to harm America or its interests. We will continue to work closely with its law enforcement partners to aggressively target and investigate those who jeopardize our nation’s security – or the welfare of those devoted to protecting it.”
In addition to participating in the scheme to violate IEEPA, Chen used several aliases and a forged Chinese passport to conceal her smuggling activities. Chen used a Chinese passport bearing her photo and a false name – “Chunping Ji” – to rent an office in Pomona where she took delivery of the export-controlled items. After receiving the goods, Chen shipped the devices to Hong Kong, and from there the items were transshipped to China. The parcels shipped to Hong Kong bore her false name, along with false product descriptions and monetary values, all done in an effort to avoid attracting law enforcement scrutiny.
“Today’s sentencing is the result of outstanding collaborative investigative work by the Office of Export Enforcement and its law enforcement partners to prevent the illegal shipment of sophisticated U.S.-origin technology. We will continue to pursue violators wherever they may be,” said Richard Weir, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Los Angeles Field Office.
“Today’s sentencing of Chen demonstrates the Defense Criminal Investigative Service’s unwavering commitment to protect our country from those who would do harm,” said Chris Hendrickson, Special Agent in Charge, DCIS Western Field Office. “DCIS, along with our federal law enforcement partners, will relentlessly pursue those who put our military at risk by illegally exporting protected military assets and sensitive technology to bad actors.”
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Department of Commerce’s Office of Export Enforcement, and the Defense Criminal Investigative Service.
The case against Chen is being prosecuted by Assistant United States Attorney Judith A. Heinz of the National Security Division.
Pittsburgh Man Pleads Guilty to Fraud and Tax ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to charges of filing false income tax return and theft of government property, United States Attorney Scott W. Brady announced today.
Robert Alan Seth, Sr. pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on April 15, 2014, Seth, Sr. filed a false income tax return for the tax year 2013. Additionally, from in and around January 2009, and continuing thereafter to in and around July 2017, Seth, Sr. collected Social Security Disability Insurance benefits for himself and for his minor child in an amount totaling $248,145.90.
Judge Hornak scheduled sentencing for February 6, 2019. The law provides for a total maximum sentence of 13 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.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation and the Social Security Administration conducted the investigation that led to the prosecution of Robert Alan Seth, Sr.
Pittsburgh Man Pleads Guilty to Fraud and Tax ChargesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to charges of filing false income tax return and theft of government property, United States Attorney Scott W. Brady announced today.
Robert Alan Seth, Sr., of 4 Danvers Avenue, Pittsburgh, Pennsylvania pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on April 15, 2014, Seth, Sr. filed a false income tax return for the tax year 2013. Additionally, from in and around January 2009, and continuing thereafter to in and around July 2017, Seth, Sr. collected Social Security Disability Insurance benefits for himself and for his minor child in an amount totaling $248,145.90.
Judge Hornak scheduled sentencing for February 6, 2019. The law provides for a total maximum sentence of 13 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.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigations and the Social Security Administration conducted the investigation that led to the prosecution of Robert Alan Seth, Sr.
Philadelphia man and Wheeling man sentenced for drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – James R. Stewart, of Philadelphia, Pennsylvania, and Deion J. Jones, of Wheeling, West Virginia, were sentenced today to a combined 78 months for drug distribution charges, United States Attorney Bill Powell announced.
Stewart, also known as James R. Steward, Jr., age 32, was sentenced today to 41 months incarceration. He pled guilty to one count of “Distribution of Cocaine” in July 2018. Stewart admitted to selling cocaine in Ohio County in November 2017.
Jones, age 27, was sentenced today to 37 months incarceration. He pled guilty to one count of “Distribution of Oxycodone” in July 2018. Jones admitted to selling oxycodone in Ohio County in June 2015.
Assistant U.S. Attorney Robert H. McWilliams, Jr., prosecuted the cases on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp., Jr. presided.
Omaha Man Sentenced for Failing to Comply with Federal Lead-Based Paint Disclosure RequirementsRead the Press Release
United States Attorney Joe Kelly announced today that on October 1, 2018, United States Magistrate Judge Susan M. Bazis fined Gerald Wojtalewicz, age 68 of Omaha, Nebraska, $7,500 following his misdemeanor conviction for failing to comply with federal lead-based paint disclosure requirements under the Residential Lead-Based Paint Hazard Reduction Act of 1992.
An investigation conducted by the EPA Criminal Investigation Division determined that between November 2012 and December 2015 Wojtalewicz owned and leased an Omaha residence that contained lead-based paint. Wojtalewicz was responsible for ensuring compliance with the Residential Lead-Based Paint Hazard Reduction Act of 1992. Investigators determined Wojtalewicz failed to provide his tenant with lead-based paint warnings and related disclosures required under that Act.
Along with other Federal agencies, the EPA is a participant in the Federal Lead Strategy, an initiative by the Presidential Task Force on Environmental Health Risks and Safety Risks to Children. EPA pursues both civil and criminal enforcement of lead-based paint violations, to deter noncompliance and promote a level playing-field among regulated businesses and landlords.
“If tenants are to make sound choices concerning their place of residence, it is essential they have sound information,” said Special Agent in Charge Jeff Martinez of EPA’s criminal enforcement program in Nebraska. “Landlords and owners who fail to notify prospective tenants about the hazards of lead poisoning put those tenants at serious risk.”
EPA has also launched a Campaign on Lead, a multi-pronged approach aimed at eliminating childhood exposure to lead in water, soil, air and other sources, as well as in paint.
Oklahoma man sentenced for sex offender registry violationRead the Press Release
CLARKSBURG, WEST VIRGINIA –Marvin Gene McLaughlin, of Enid, Oklahoma, was sentenced today to 30 months incarceration for a sex offender registry violation, United States Attorney Bill Powell announced.
McLaughlin, age 58, pled guilty to one count of “Failure to Update Sex Offender Registration” in June 2018. McLaughlin, a person required to register under the Sex Offender Registration and Notification Act, admitted to traveling from Oklahoma to Marion County, West Virginia without updating his sex offender registration in January 2018.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Nunda Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Bryan Matacale, 43, of Nunda, NY, who was convicted of production of child pornography and possessing an obscene sexual performance by a child, was sentenced to 25 years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that in March 2017, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) received information from the Belgian Federal Police that a Belgian citizen identified individuals in the United States as being involved the possession and distribution of child pornography. The Belgian citizen told police that an individual he knew as "Bob" paid him money in exchange for images and videos of child pornography on several occasions. Subsequent investigation determined that “Bob” was defendant Matacale.
On August 28, 2017, a federal search warrant was executed at Matacale’s residence during which various computers and electronic media were seized by law enforcement officers. During an examination of the defendant’s cellular telephone, officers observed text messages Matacale and A.W., an individual known to law enforcement who had two daughters, ages four and six. In multiple messages, the defendant requested naked pictures of A.W.’s daughter stating they would be used for a “research” report. A. W. sent Matacale approximately a dozen photos between September 2016 and February 2017.
During a review of the defendant’s electronic equipment, law enforcement officers recovered online conversations between Matacale and a 16-year-old girl from Vermont. At the defendant’s request, the girl sent naked pictures of herself on three separate dates in August 2017.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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New Haven Man Sentenced to More Than 6 Years in Prison for Role in Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GEORGE J. CONNELLY, JR., 48, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by three years of supervised release, for his role in a large-scale fencing operation.
According to the evidence presented during the trial of CONNELLY and his co-defendant, William Reidell, CONNELLY and another co-defendant, Paul Muzyka, operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. At Ace Amusements, CONNELLY and Muzyka knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. CONNELLY and Muzyka then resold the stolen goods at Ace Amusements, and also online at websites such as eBay. CONNELLY and Muzyka also sold property to resellers, including Reidell, who then resold the property online using online websites.
The trial evidence showed at least $1.5 million in sales on eBay from 2007 to 2016 by individuals, including Reidell, who purchased stolen items at Ace Amusements to resell online.
On May 23, 2018, CONNELLY was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and two counts of interstate transport of stolen property. Reidell was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and one count of interstate transport of stolen property.
On March 16, 2018, Muzyka, of North Haven, pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.
As part of the sentence, Judge Shea ordered CONNELLY to forfeit an interest of $86,220.85 in a house he owns on Tuttle Drive in New Haven, $10,338.68 that was seized from his and Ace Amusements’ bank accounts, and $13,078.67 in cash that was seized from his person and from various locations inside Ace Amusements on January 25, 2016.
CONNELLY, who is released on a $100,000 bond, was ordered to report to prison on December 3, 2018.
Reidell, of Branford, is scheduled to be sentenced tomorrow, and Muzyka is scheduled to be sentenced on November 15.
This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.
Nevada U.S. Attorney's Office Remembers One-Year Anniversary of October 1 Mass Shooting and Recommits to Project Safe Neighborhoods ProgramRead the Press Release
LAS VEGAS, Nev. – Today marks the one-year anniversary of the most tragic day in our city’s history. The United States Attorney’s Office for the District of Nevada joins our community in remembering everyone who lost their lives as a result of the senseless act committed on October 1, 2017. Earlier today, the United States Attorney’s Office, together with the United States Marshal for the District of Nevada, held a ceremony to honor and remember the Route 91 Harvest Music Festival victims, survivors, and the brave first responders who risked it all. The United States Attorney’s Office remains steadfastly committed to making our community safer and preventing future tragedies. Our community must be protected from violent criminals who terrorize our residents and visitors alike.
With the support of the United States Department of Justice, we have hired three additional prosecutors who are focused on identifying and prosecuting violent offenders, including prosecuting persons who: unlawfully possess firearms, including individuals with domestic violence convictions, commit robberies, with and without firearms, commit car-jackings and assaults, as well as kidnappers and murderers. The addition of new prosecutors allows the United States Attorney’s Office to target the most violent criminals including street gangs that destroy our neighborhoods and drug trafficking organizations that peddle their poison to our children.
Critical to our violent crime reduction effort is the Department of Justice’s Project Safe Neighborhoods (PSN) program, a nationwide initiative that brings together federal, state, local, and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. On October 5, 2017, Attorney General Jeff Sessions reprioritized and enhanced the PSN program, making it the centerpiece of the Department’s violent crime reduction strategy.
Project Safe Neighborhoods empowers each United States Attorney’s office to develop and implement targeted, localized violent crime reduction strategies, tailoring solutions to individual communities and the challenges they face. So far in 2018, the United States Attorney’s Office prosecuted 123 cases including the following violent crime and firearm offenses, all which came in through our PSN program. Recent notable cases include:
- Josue Diaz-Orellana, Luis Reyes-Castillo, David Perez-Manchame, and Miguel Torres-Escobar, all El Salvadoran nationals who are illegally in the United States and alleged to be MS-13 gang members, were arrested and charged in connection with the kidnapping and murder of a rival gang member whose body was found on federal property in southern Nevada. The maximum statutory penalty is 20 years in prison for the assault charge and life imprisonment for both the kidnapping and the discharging of a firearm count.
- Uriah Crain, a Las Vegas felon, was sentenced to 18 years in prison for his involvement in two violent armed carjackings that resulted in injury to two victims.
- Samual Lane Donesing and Jaemillah Eagans, both of Las Vegas, were indicted for possession of more than 300 stolen firearms belonging to a Federal Firearms Licensee. Donesing is also charged with felon in possession of a firearm. The maximum statutory penalty is 10 years in prison and a $250,000 fine for each count.
- Joseph Michael Gill, a former DEA Supervisory Special Agent in Tucson, Arizona, pleaded guilty to illegally selling firearms without a Federal Firearms License. He faces the maximum penalty of five years in prison and a $250,000 fine.
- Omar Qazi, a Las Vegas felon, was convicted by a jury of illegal possession of a firearm. He faces the maximum statutory penalty of 10 years in prison and a $250,000 fine.
- Connor Woods and Michael Miller, both of Santa Rosa, California, were each sentenced to 13 years in prison for robbing a Reno convenience store at gunpoint.
- Paul Nelson, of Pahrump, was sentenced to 15 years in prison for selling a stolen revolver and a stolen semi-automatic rifle with a large capacity magazine.
- Charles Ellis, of North Las Vegas, was indicted for illegally purchasing and reselling firearms, including assault rifles, without a Federal Firearms License. He faces the maximum statutory penalty of five years in prison and a $250,000 fine.
- Richard Canterbury, of Las Vegas, was sentenced to more than 10 years in prison for robbing a bank in the Southern Highlands area after escaping from a Bureau of Prisons facility in Arizona.
- Jacqueline Moore, a Las Vegas felon, was convicted by a jury of unlawful possession of a .25 caliber pistol and ammunition. She faces the maximum statutory penalty of 20 years in prison and a $500,000 fine.
- Jose Valentin Mora; Sandy Diaz Tavares; Jose Vega; Angel Diaz; Javier Chavez; Shawn Curl; Marcos Hernandez; Roberto Mora-Mora; Juana Baca; Elizabeth Reyes-Delacerda; Richard Rossall; Ciara Hernandez; Marco Antonio Ramirez; Kelsea Barbara Riley; Leon DeJesus Munera; and Jorge Ayala-Chavez, all of Reno, Nevada; and Francisco Meza Recio, of Simi Valley, California, were indicted for conspiracy to distribute large quantities of methamphetamine, cocaine, and heroin in Reno and elsewhere. Each defendant faces the maximum statutory penalty of life in prison and a fine of $10,000,000. The three-related indictments charge Jose Valentin Mora, Jose Vega, Jose Mora-Silva, Dagoberto Mora-Silva, and Alberto Acosta-Macias with firearms offenses. Felons Jose Mora and Jose Vega are charged with unlawful possession of a firearm after having a prior felony conviction in Nevada. Jose Mora-Silva is charged with unlawful possession of a firearm while being an alien unlawfully in the United States. Dagoberto Mora-Silva is charged with aiding and abetting the possession of a firearm by prohibited persons Jose Mora and Jose Mora-Silva. Jose Mora and Acosta-Macias are charged with possession of a stolen .22 caliber Marlin rifle. Each defendant faces the maximum statutory penalty of 10 years in prison and a fine of $250,000.
- Ronald Robinson, of Reno, was sentenced to over 18 years in prison for possession with intent to distribute methamphetamine and possession of a .40 caliber pistol.
- Jessie Mendoza, of Henderson, was sentenced to more than six years in prison for stealing approximately $123,000 worth of jewelry and other property from a pawn shop.
- Sylvester Mitchell, of Las Vegas, was charged for selling hundreds of firearms, some of which were subsequently used in crimes, without a Federal Firearms License. He faces the maximum term of five years in prison.
- Jamie Joe Dulus, of Henderson, was sentenced to more than six years in prison for firing multiple shots at security guards at the Las Vegas Boat Harbor Marina.
Under PSN, federal, state, local, and tribal law enforcement and prosecutors partner with each other and the communities they serve to drive down violent crime – and it is working. The FBI’s Uniform Crime Report for 2017 reflects that the staggering increases from 2015 and 2016 are slowing. Preliminary data from 61 large cities suggest that violent crime overall was down in those cities in the first six months of 2018 compared to 2017. The overall violent crime rate in those cities is down nearly five percent and murder is down more than six percent. Thanks to the good work of law enforcement, Las Vegas’s violent crime reduction rate is impressive. According to the Las Vegas Metropolitan Police Department 2017 Annual Report, violent crimes decreased by 27%. Specifically, compared to last year, aggravated assault is down by 30%, robbery is down by 32%, and auto theft is down by 10%. While the national trend in the number of homicides is decreasing, Las Vegas is also unique in that it has seen an increase in homicide, to include domestic-violence related homicides. Our office, together with federal, state, local, and tribal law enforcement are all committing to reducing the numbers of homicides.
Based on the overall reduction in violent crime, there are good reasons to be optimistic that our efforts will be successful. To that end, our office is stepping up efforts to reduce the number of homicides. We have implemented a strategy to take additional firearms cases involving individuals who have domestic violence convictions, and those who are present in this county illegally and have violent criminal histories. Together with our partners, we have good reason to be optimistic that the efforts to reduce violent crime will pay off.
The United States Attorney’s Office grieves with and supports Las Vegas, the families that lost so much just one year ago, and the survivors who will continue on their road to recovery. Our grief focuses our resolve to combat violent crime and to make our community a safer place. Through our partnerships with law enforcement, community leaders and others, we will work steadfastly to identify violent criminals and bring them to justice. Because together, we are stronger.
For more information about PSN and the Department’s efforts to reduce violent crime, visit www.justice.gov/usao-nv.
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Navajo Man Pleads Guilty to Commercial Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Trevor David Littleman, 25, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the Hobbs Act, assault, and firearms charges. Littleman’s plea agreement recommends that he be sentenced to a ten-year term of imprisonment followed by a term of supervised release to be determined by the court.
Littleman was arrested on Sept. 18, 2017, on a criminal complaint charging him with the armed robbery of the Giants Gas Station and Convenience Store located on New Mexico State Road 371, Main Street in Crownpoint, N.M. According to the complaint, before departing from the store with cigarettes and cash from the cash registers, Littleman fired a round of ammunition into the ceiling. Officers allegedly found a 9mm casing and shattered fluorescent light and debris on the floor of the gas station.
Littleman subsequently was indicted on Oct. 11, 2017, and was charged with robbing the gas station, a business engaged in interstate commerce, assault with a dangerous weapon with intent to do bodily harm, and using and brandishing a firearm during and in relation to a crime of violence. The indictment charged Littleman with committing the offenses on Sept. 8, 2017, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Littleman pled guilty to the indictment, and admitted that on Sept. 8, 2017, he robbed the gas station at gunpoint, demanding cigarettes and money, and threatening to shoot the clerk if he did not comply. Littleman further admitted discharging his firearm by firing a round into the ceiling of the store before running out of the store and leaving the area in a vehicle that was waiting for him.
Littleman remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division
Moss Point Man with 47 Firearms, Silencer and Sawed-Off Rifle Pleads Guilty to Possession of Unregistered FirearmRead the Press Release
Gulfport, Miss – James Hurshell Dugger, 78, of Moss Point, entered a guilty plea Friday, before U.S. District Judge Louis Guirola, to possession of an unregistered firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Dugger will be sentenced on December 12, 2018, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
On August 11, 2017, deputies with the Jackson County Sheriff’s Office responded to Dugger’s home after Dugger shot a man during an altercation. On searching Dugger’s home, deputies found 47 firearms including silencers and a sawed-off rifle. Dugger has prior felony convictions for possession with intent to distribute marijuana and possession of unregistered firearms.
The Jackson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
More Than 25 Defendants Facing Federal or State Drug Charges for Allegedly Selling Fentanyl or Fentanyl-Laced Heroin in ChicagoRead the Press Release
CHICAGO — More than 25 individuals are facing federal or state drug charges for allegedly selling pure fentanyl or fentanyl-laced heroin in Chicago.
Many of the defendants sold narcotics to an undercover law enforcement officer earlier this year, according to the charges. Several of the sales occurred in daytime hours during the summer months. The federal charges describe drug sales in the Tri-Taylor, Humboldt Park and West Garfield Park neighborhoods on Chicago’s West Side, as well as deals in the Chatham neighborhood on the city’s South Side.
The investigation was led by the Chicago Police Department, with support from agents from numerous federal agencies assigned to the High Intensity Drug Trafficking Area (HIDTA) Task Force, including the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Department of Homeland Security - Homeland Security Investigations, and U.S. Marshals Service. In addition to the undercover work, law enforcement during the investigation conducted extensive surveillance and seized distribution quantities of fentanyl and fentanyl-laced heroin.
Seven defendants were charged in federal court, while 22 defendants were charged in state court. Many of the defendants were arrested Thursday. The federal defendants have begun making initial appearances in U.S. District Court in Chicago, while the state defendants will appear in Cook County Criminal Court.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Eddie Johnson, Chicago Police Superintendent; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. Substantial assistance was provided by the Illinois State Police.
“These arrests send a clear message that anyone who sells fentanyl on the streets of Chicago will endure the full weight of law enforcement,” said U.S. Attorney Lausch. “The U.S. Attorney’s Office will continue to focus its efforts on individuals and groups who distribute fentanyl – a dangerously potent drug – and prosecute those offenders in federal court.”
“We’ve seen the devastation that drugs – especially fentanyl – leave on an individual, their family and our communities,” said State’s Attorney Foxx. “These charges are a step in the right direction as we send a message that fentanyl has no place on our streets. My office is committed to holding anyone responsible for this harmful substance accountable and will continue working with our federal and local partners to do so.”
“The sale and use of these substances has affected more than just the individual using them,” said CPD Supt. Johnson. “It has left multiple scars on some of our communities. CPD will continue to work with our federal and state partners to do everything we can to make our streets safer and to save lives in the process.”
“These arrests help tackle our city’s most serious drug threat – fentanyl,” said DEA Special Agent-in-Charge McKnight. “For those who want to put poison on our streets, we are not done with you.”
“The results of these investigations show the powerful impact law enforcement can have when we work as one team to combat the lethal threat fentanyl poses to our communities,” said FBI Special Agent-in-Charge Sallet.
According to the federal complaints, ANTHONY MCCLENDON, 38, of Chicago, sold more than three grams of pure fentanyl to an undercover officer on May 18, 2018. The deal allegedly occurred on the street in the 1000 block of South Western Avenue in Chicago. Special Assistant U.S. Attorney Chester Choi represents the government in McClendon’s case.
ANTRON BINION, 48, of Chicago, sold at least four grams of fentanyl-laced heroin over five separate deals this summer, the complaint states. The deals allegedly occurred at various locations in Chicago’s West Garfield Park neighborhood, including a transaction on a ramp leading to a pedestrian bridge over the Dwight D. Eisenhower Expressway. Assistant U.S. Attorney Aaron R. Bond represents the government in Binion’s case.
VANCE ESTES, 34, of Chicago, sold more than a gram of fentanyl-laced heroin and more than a gram of heroin in two separate deals in July, the complaint states. The deals allegedly occurred as Estes sat in his vehicle in the 9100 block of South Wabash Avenue in Chicago. ALEJANDRO JUNCO, 27, of Chicago, also sold distribution levels of fentanyl-laced heroin in the same block in July, the complaint states. Assistant U.S. Attorneys Andrew J. Dixon and John D. Mitchell represent the government in the Junco and Estes cases.
JAMES ALEXANDER, 34, of Chicago, KENYON SAVAGE, 24, of Chicago, and LASHAWN BANKS, 20, of Chicago, each sold distribution levels of fentanyl-laced heroin in Chicago’s Humboldt Park neighborhood this summer, the complaints state. The government is represented in the Alexander case by Assistant U.S. Attorney Kristen Viglione; in the Savage case by Assistant U.S. Attorney Kalia Coleman; and in the Banks case by Assistant U.S. Attorney Jared Jodrey.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The federal drug distribution charge is punishable by a maximum sentence of 20 years in prison. If convicted of the federal charge, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Mobile County Man Sentenced to 110 Months in Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge Kristi K. DuBose sentenced Corey Dewayne Hughes on September 28, 2018 to serve a term of imprisonment of 110 months followed by 5 years of supervised release for possession with the intent to distribute methamphetamine in violation of Title 21 USC § 841(a)(1). The defendant previously plead guilty to the offense on August 16, 2017.
According to documents filed in connection with his guilty plea, on April 21, 2017, officers from the Mobile County Street Enforcement Narcotics Team (MCSENT) executed a search warrant at the defendant’s residence in Mobile County. Prior to the search warrant being executed, the officers made several controlled buys from the defendant at this location. During the search, officers recovered approximately 544 grams of pure methamphetamine from the defendant’s home and a number of firearms. The defendant had four previous felony convictions to include Rape 2nd , Assault 2nd and Dog-Fighting.
The case was investigated by Mobile County Street Enforcement Narcotics Team and referred for federal prosecution through the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDETF) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Milton-Freewater Man Sentenced to 60 Months in Federal Prison for Dealing MethamphetamineRead the Press Release
PORTLAND, Ore. – Carlos Cisneros-Razo, 45, of Milton-Freewater, Oregon, was sentenced today to 60 months in federal prison for dealing methamphetamine. Upon completion of his prison sentence, Cisneros-Razo will be on supervised release for four years.
According to court documents, in May 2017, the Blue Mountain Enforcement Narcotics Team (BENT) purchased distributable quantities of methamphetamine from Cisneros-Razo. On May 31, 2017, BENT executed a search warrant at Cisneros-Razo’s residence and recovered 10.9 grams of methamphetamine in his home and a loaded revolver on his person. Cisneros-Razo admitted to selling methamphetamine to as many as seven people. Cisneros-Razo was illegally present in the District of Oregon.
Cisneros-Razo previously pleaded guilty to one count of possession with intent to distribute methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B) on June 20, 2018.
This case was investigated by BENT and the FBI and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Mexican National Man Sentenced for Illegally Reentering the United StatesRead the Press Release
Defendant had two prior removals for illegally entering the United States
CHARLESTON, W.Va. – Javier Leon Villagomez was sentenced to “time served” and immediately remanded for deportation proceedings for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Villagomez, 40, of Guanajato, Mexico, was taken into ICE custody at the conclusion of the hearing. Villagomez pled guilty on August 9, 2018 and had been in federal custody since May 12, 2018. United States Attorney Mike Stuart praised the work of the Jackson County Sheriff’s Department and Immigration and Customs Enforcement (ICE).
“Individuals illegally enter our country over and over again,” said United States Attorney Mike Stuart. “We will prosecute them each and every time and deport them – unless they follow the rules.”
On May 12, 2018, Villagomez was arrested for domestic violence charges near Ravenswood, Jackson County, West Virginia by officers working for the Jackson County Sheriff’s Department. In investigating the case, Jackson County Sheriff’s Department contacted ICE to confirm Villagomez’s legal status. ICE agents spoke to Villagomez, and confirmed that he was not legally present in the United States. ICE agents further submitted Villagomez fingerprints for a forensic examination. The results of the examination matched Villagomez to two prior removals from the United States. One prior removal was in 2007 and the second in 2008, both from the Milwaukee, Wisconson area. After being deported on two separate occasions, Villagomez then illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Villagomez is a citizen of Mexico.
Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge Joseph R. Goodwin presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act LiabilitiesRead the Press Release
HealthCare Partners Holdings LLC, doing business as DaVita Medical Holdings LLC (DaVita), has agreed to pay $270 million to resolve its False Claims Act liability for providing inaccurate information that caused Medicare Advantage Plans to receive inflated Medicare payments, the Justice Department announced today. DaVita is headquartered in El Segundo, California.
“Federal healthcare programs rely on the accuracy of information submitted by healthcare providers to ensure that managed care plans receive the appropriate compensation,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “We will pursue those who undermine the integrity of the Medicare program and the data it relies upon. This also illustrates that the Department encourages and incentivizes health care organizations to make voluntary disclosures to the government when they identify false claims.”
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in and obtaining health care from Medicare Advantage Plans (MA Plans) that are owned and operated by private Medicare Advantage Organizations (MAOs). Unlike traditional Medicare, where payments to health providers are based on the services they render to the patient, MA Plans are paid a fixed, monthly amount to provide health care to beneficiaries who enroll in their plans. To accommodate costs that may be associated with patients that require more care than an average patient, Medicare payments to MA plans are “risk adjusted” to reflect, in significant part, the health status of the beneficiary. The result is that MAO plans receive higher payments for patients who are diagnosed with conditions that require greater care.
To provide the patient care, MAOs may contract directly with physicians and other healthcare providers, or they may contract with Medical Services Organizations (MSOs), which in turn either employ or contract with healthcare providers. These health care providers then render the patient care and provide the diagnoses that MAOs submit, in turn, to Medicare to obtain the risk-adjusted payments from CMS.
DaVita operated an MSO and contracted with MAOs in various states, including California, Nevada, and Florida, to provide care to the MAOs’ enrolled Medicare beneficiaries. In connection with the medical services it provided to those beneficiaries, DaVita collected and submitted diagnoses to the MAOs. As payment for its services, DaVita received from the MAOs a share of the payments that the MAOs received from CMS for the beneficiaries under DaVita’s care.
DaVita voluntarily disclosed to the government various practices that were instituted by HealthCare Partners, a large California-based independent physician association that DaVita acquired in 2012, that caused MAOs to submit incorrect diagnosis codes to CMS and obtain inflated payments in which DaVita and HealthCare Partners shared. For example, HealthCare Partners disseminated improper medical coding guidance instructing its physicians to use an improper diagnosis code for a particular spinal condition that yielded increased reimbursement from CMS. Based on these self-disclosures, and DaVita’s cooperation with the government’s subsequent investigation, the United States agreed to a favorable resolution of potential claims arising from the conduct.
The settlement also resolves allegations made by a whistleblower that HealthCare Partners engaged in “one-way” chart reviews in which it scoured its patients’ medical records for diagnoses its providers may have failed to record. It then submitted these “missed” diagnoses to MAOs to be used by them in obtaining increased Medicare payments. At the same time, it ignored inaccurate diagnosis codes that should have been deleted and that would have decreased Medicare reimbursement or required the MAOs to repay money to Medicare.
“This settlement demonstrates our tireless commitment to rooting out fraud that drains too many taxpayer dollars from public health programs like Medicare,” said United States Attorney Nick Hanna. “This case involved illegal conduct in which patients’ medical conditions were improperly reported and were not corrected after further review – all for the purpose of boosting the bottom line. We will continue to pursue and hold accountable any entity that seeks to illegally increase revenue at the expense of the Medicare Advantage so that the program may continue to remain viable for all who need it.”
“DaVita’s alleged conduct was irresponsible and compromised the integrity of the Medicare program,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region. “HHS-OIG will continue to ensure that companies that do business with federally funded health care programs do so in an honest fashion.”
The allegations of “one way” chart reviews were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act. This statute permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is James Swoben, who was a former employee of an MAO that did business with DaVita. Mr. Swoben will receive $10,199,100 for the settlement of the “one way” allegations.
The corporate affiliates related to Health Care Partners and which are part of today’s settlement are: DaVita Medical Group Nevada (Coats), Ltd; DaVita Medical Group California, P.C.; DaVita Medical Group Associates California, Inc.; HealthCare Partners Affiliates Medical Group and its subsidiary medical groups; DaVita Medical Group ARTA Health Network California, P.C.; and DaVita Medical Group ARTA Western California, Inc.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorneys Office for the Central District of California, and HHS-OIG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Swoben v. Secure Horizons, et al., 09-5013 (C.D. Cal.).
Medicare Advantage Provider to Pay $270 Million to Settle False Claims Act LiabilitiesRead the Press Release
LOS ANGELES – HealthCare Partners Holdings LLC, doing business as DaVita Medical Holdings LLC, has agreed to pay $270 million to resolve its False Claims Act liability for providing inaccurate information that caused Medicare Advantage Plans to receive inflated Medicare payments, the Justice Department announced today. DaVita is headquartered in El Segundo.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in and obtaining health care from Medicare Advantage Plans (MA Plans) that are owned and operated by private Medicare Advantage Organizations (MAOs). Unlike traditional Medicare, where payments to health providers are based on the services they render to the patient, MA Plans are paid a fixed, monthly amount to provide health care to beneficiaries who enroll in their plans. To accommodate costs that may be associated with patients that require more care than an average patient, Medicare payments to MA plans are “risk adjusted” to reflect, in significant part, the health status of the beneficiary. The result is that MAO plans receive higher payments for patients who are diagnosed with conditions that require greater care.
To provide the patient care, MAOs may contract directly with physicians and other healthcare providers, or they may contract with Medical Services Organizations (MSOs), which in turn either employ or contract with healthcare providers. These health care providers then render the patient care and provide the diagnoses that MAOs submit, in turn, to Medicare to obtain the risk-adjusted payments from CMS.
DaVita operated an MSO and contracted with MAOs in various states, including California, Nevada and Florida, to provide care to the MAOs’ enrolled Medicare beneficiaries. In connection with the medical services it provided to those beneficiaries, DaVita collected and submitted diagnoses to the MAOs. As payment for its services, DaVita received from the MAOs a share of the payments that the MAOs received from CMS for the beneficiaries under DaVita’s care.
DaVita voluntarily disclosed to the government various practices that were instituted by HealthCare Partners, a large California-based independent physician association that DaVita acquired in 2012, that caused MAOs to submit incorrect diagnosis codes to CMS and obtain inflated payments in which DaVita and HealthCare Partners shared. For example, HealthCare Partners disseminated improper medical coding guidance instructing its physicians to use an improper diagnosis code for a particular spinal condition that yielded increased reimbursement from CMS.
Based on these self-disclosures, and DaVita’s cooperation with the government’s subsequent investigation, the United States agreed to a favorable resolution of potential claims arising from the conduct.
“Federal healthcare programs rely on the accuracy of information submitted by healthcare providers to ensure that managed care plans receive the appropriate compensation,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “We will pursue those who undermine the integrity of the Medicare program and the data it relies upon. This also illustrates that the Department encourages and incentivizes health care organizations to make voluntary disclosures to the government when they identify false claims.”
The settlement also resolves allegations made by a whistleblower that HealthCare Partners engaged in “one-way” chart reviews in which it scoured its patients’ medical records for diagnoses its providers may have failed to record. It then submitted these “missed” diagnoses to MAOs to be used by them in obtaining increased Medicare payments. At the same time, it ignored inaccurate diagnosis codes that should have been deleted and that would have decreased Medicare reimbursement or required the MAOs to repay money to Medicare.
“This settlement demonstrates our tireless commitment to rooting out fraud that drains too many taxpayer dollars from public health programs like Medicare,” said United States Attorney Nick Hanna. “This case involved illegal conduct in which patients’ medical conditions were improperly reported and were not corrected after further review – all for the purpose of boosting the bottom line. We will continue to pursue and hold accountable any entity that seeks to illegally increase revenue at the expense of the Medicare Advantage so that the program may continue to remain viable for all who need it.”
The allegations of “one-way” chart reviews were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act. This statute permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is James Swoben, who was a former employee of an MAO that did business with DaVita. Mr. Swoben will receive $10,199,100 for the settlement of the “one-way” allegations. The case is captioned United States ex rel. Swoben v. Secure Horizons, et al., CV09-5013 (C.D. Cal.).
The corporate affiliates related to Health Care Partners and which are part of today’s settlement are DaVita Medical Group Nevada (Coats), Ltd; DaVita Medical Group California, P.C.; DaVita Medical Group Associates California, Inc.; HealthCare Partners Affiliates Medical Group and its subsidiary medical groups; DaVita Medical Group ARTA Health Network California, P.C.; and DaVita Medical Group ARTA Western California, Inc.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorneys’ Office for the Central District of California, and HHS-OIG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Meadville Felon Sentenced to 5 Years in Prison for Firearms OffensesRead the Press Release
ERIE, Pa. - A former resident of Meadville, Pennsylvania, has been sentenced in federal court to 63 months in jail on his conviction of violating federal firearm laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jesse Lee Anderson, 37.
According to information presented to the court, Anderson unlawfully possessed ammunition while being prohibited from firearm possession because he is a convicted felon. In addition, Anderson possessed an improvised firearm device utilizing two pipes capable of discharging a shot, not registered to him in the National Firearms Registration and Transfer Record.
Assistant United States Attorney Marshall J. Picicnini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshal’s Service for the investigation leading to the successful prosecution of Anderson.
McNairy County Man Found Guilty of Drug Conspiracy, Being a Felon in Possession of Firearms, and Possessing Firearms in Furtherance of Drug Trafficking OffensesRead the Press Release
Jackson, TN – A federal jury has convicted a McNairy county man for conspiring to distribute, and distributing actual methamphetamine, being a felon in possession of firearms in furtherance of drug trafficking crimes. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty verdict today.
According to the information presented in court, Joshua Tucker, 28, of Selmer, TN was a member of a drug conspiracy operating throughout West Tennessee from October 2016 to April 2017. The investigation led to the federal prosecution of Tucker, along with eleven other co-conspirators, who sold large amounts of methamphetamine throughout West Tennessee including Bath Springs, Lexington, Parsons, Selmer, Reagan, Lutts, and Milledgeville and Iuka, MS.
Tucker’s conviction results from an extensive investigation by federal, state and local law enforcement officials into a drug trafficking organization involving Kevin Smith and his associates including Joshua Tucker. Agents with the Drug Enforcement Administration (DEA), Tennessee Bureau of Investigation (TBI), West Tennessee 24th Judicial Drug and Violent Crime Task Force, and Tennessee Highway Patrol (THP) conducted a yearlong investigation and utilized various investigation strategies to determine that Tucker had sold over two kilograms of actual methamphetamine (ICE) to co-conspirators who resold the ICE between December 2016 and April 2017.
The investigation further revealed that Tucker, a convicted felon, possessed firearms in furtherance of his drug trafficking. On April 27, 2017, investigators with McNairy County Counter-Drug Unit and Selmer Police Department executed a probation search at Tuckers home. During the search, officers located an AR-15 style rifle along with a 9 mm pistol in Tuckers bedroom. Officers located approximately 20 grams of ICE packaged for resale in a safe containing two digital scales and $5,677.75. In the same room, officers located drug
paraphernalia including boxes of plastic baggies and pipes as well as .223 and 9mm ammunition. Investigators also seized five vehicles. After searching the vehicles, officers located over 400 grams of methamphetamine inside a container under the driver seat of one of the cars.
U.S. Attorney Dunavant said, "Armed Drug Trafficking Organizations will NOT continue to endanger our communities in West Tennessee with impunity. We use all available law enforcement and prosecutorial resources to pursue, disrupt and dismantle groups and conspiracies that are most responsible for the illegal sale of this position to our citizens, and to remove dangerous offenders with firearms from our streets. This defendant and his co-conspirators have sowed addiction, pain, and destruction into our communities, and now they will reap a long prison sentence as a consequence."
"It takes a collaborative effort to dismantle complex drug organizations," said D. Christopher Evans, DEA Special Agent In Charge. "These types of investigations show that DEA remains committed to working with our state and local partners, and our ATF counterparts to target violent drug traffickers and make our communities safer," Evans added.
Tucker was charged with several offenses including:
• conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine;
• aiding and abetting each other to possess with the intent to distribute 50 grams or more of actual methamphetamine;
• knowingly possessing with intent to distribute 50 grams or more of actual methamphetamine;
• being a felon in possession of an AR-15 style rifle;
• being a felon in possession of a 9 mm pistol;
• possessing the AR-15 style rifle in furtherance of a drug trafficking offense; and
• possessing the 9 mm pistol in furtherance of a drug trafficking offense.
After a four-day trial, the defendant was found guilty as to each count.
Sentencing is set for January 8, 2019 at 1:30 p.m., before U.S. Chief Judge S. Thomas Anderson. Tucker faces a mandatory minimum of 15 years up to life imprisonment.
The case was investigated by the Drug Enforcement Administration (DEA), Tennessee Bureau of Investigation (TBI), West Tennessee 24th Judicial Drug and Violent Crime Task Force, and Tennessee Highway Patrol (THP), along with McNairy County Counter-Drug Unit and Selmer Police Department.
Assistant United States Attorneys Taylor Eskridge and Hillary Parham prosecuted this case on the government’s behalf.
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McLaughlin Man Sentenced for Sex AbuseRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of Abusive Sexual Contact of a Person Incapable of Consent was sentenced on September 17, 2018, by U.S. District Judge Charles B. Kornmann.
Jerome Goodhouse, age 27, was sentenced to 36 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goodhouse was indicted by a federal grand jury on October 17, 2017. He pled guilty on June 24, 2018.
The conviction stemmed from an incident on April 5, 2016, when Goodhouse gave a ride home to an individual and took a detour to a remote location, where he parked the vehicle and began to fondle and kiss the victim. Goodhouse knew that the victim had been drinking and was incapable of consenting to the sexual contact.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Goodhouse is ordered to self-report to the custody of the U.S. Marshals Service no later than 2:00 p.m. on October 9, 2018.