Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 17 August 2018
Ohio Resident Sentenced to 15 Months in Federal Prison for Role in Business E-Mail Compromise SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OLUMUYIWA YAHTRIP ADEJUMO, also known as “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade” and “Hadey,” 33, of Toledo, Ohio, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 15 months of imprisonment, followed by three years of supervised release, for his role in a business e-mail compromise scheme.
According to court documents and statements made in court, ADEJUMO, his co-conspirator Adeyemi Odufuye and others targeted CEOs, CFOs, controllers and others at U.S. businesses, including businesses in Connecticut, using sophisticated cyber techniques to defraud the businesses. ADEJUMO and his co-conspirators sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. ADEJUMO and his co-conspirators sent the e-mails with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.
The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
In pleading guilty, ADEJUMO admitted that his participation in the scheme caused total losses of more than $100,000 to at least three organizational victims.
Chief Judge Hall ordered ADEJUMO to pay restitution in the amount of $90,930.
ADEJUMO has been detained since his arrest on November 16, 2017. On April 20, 2018, he pleaded guilty to one count of conspiracy to commit wire fraud.
ADEJUMO, a citizen of Nigeria and lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
Odufuye, also known as “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz,” and “Jefe,” is a citizen of Nigeria. On December 19, 2016, he was arrested in the United Kingdom. Odufuye was extradited from the U.K. to the U.S. and, on January 3, 2018, pleaded guilty to one count of wire fraud and one count of aggravated identity theft. He is detained while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the U.S. Attorney’s Office for the Northern District of Ohio and the FBI’s Cleveland Field Office for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Nine Indicted for Heroin Conspiracy in Greene CountyRead the Press Release
SPRINGFIELD, Mo. – Eight men and one woman were indicted by a federal grand jury this week for their roles in a conspiracy to distribute heroin in Greene County, Mo.
Dangelo P. Moore, 30, of Willard, Mo., James D. Elbert, 36, Jerry R. Blue, 29, Keilan A. Murray, 25, and Presley A. Pike, 26, all of Springfield, Mo., Michael K. Johnson, Jr., 32, of Ozark, Mo., Rodriguez R. Bradley, 35, of Fordland, Mo., Kevin D. Paine, 28, of Cahokia, Ill., and Kewan J. Rogers, 35, of St. Louis, Mo., were charged in a 22-count superseding indictment returned by a federal grand jury in Springfield. This week’s superseding indictment replaces the original indictment returned under seal on July 11, 2018, and adds Pike as a co-defendant.
This week’s indictment alleges that all nine of the defendants participated in a conspiracy to distribute at least 100 grams of heroin in Greene County from Oct. 2, 2015, to Nov. 13, 2017.
Elbert is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of firearms and ammunition. Elbert allegedly was in possession of a Smith & Wesson .40-caliber semi-automatic pistol and an HS Products (Springfield Armory) .45-caliber semi-automatic pistol on April 24, 2017.
Paine is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Paine allegedly was in possession of a Glock .40-caliber semi-automatic pistol on Jan. 5, 2017.
In addition to the drug-trafficking conspiracy, the remaining counts of the indictment allege specific instances in which various defendants distributed heroin.
The indictment also contains forfeiture allegations, which would require Moore, Elbert and Bradley to forfeit to the government a total of $34,332 and the various firearms and ammunition that were seized by law enforcement officers during the course of the investigation.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.
New York Attorney Sentenced to 18 Months’ Imprisonment for Securities Fraud and Wire Fraud Conspiracies, and Ordered to Pay More Than $10 Million in RestitutionRead the Press Release
Earlier today, in federal court in Brooklyn, Evan Greebel, a former partner at the New York office of Katten Muchin Rosenman LLP who served as outside counsel to Retrophin, Inc., a biopharmaceutical company, was sentenced by Judge Kiyo A. Matsumoto to 18 months’ imprisonment for conspiracy to commit wire fraud and conspiracy to commit securities fraud, to be followed by three years’ supervised release. The Court also ordered Greebel to pay $116,462.03 in forfeiture and $10,447,979 in restitution. Greebel was convicted by a federal jury in December 2017, following an 11-week trial, for his role in two interrelated fraud schemes with Retrophin CEO Martin Shkreli and others, in which Greebel, Shkreli and others stole millions of dollars in cash and stock from Retrophin and manipulated the price and trading volume of Retrophin stock.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence reinforces our message that attorneys who facilitate crimes will be held accountable for their actions,” stated United States Attorney Donoghue. “Evan Greebel leveraged his legal training and the trust placed in him by Retrophin’s Board of Directors to commit serious crimes, including the theft of millions of dollars in cash and stock from the very company he was hired to represent. In doing so, Greebel broke the law and violated the ethical duties he owed to his client.” Mr. Donoghue expressed his thanks to the United States Securities and Exchange Commission (SEC), New York Regional Office, and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their significant cooperation and assistance in this case.
“As an attorney well-versed in the law, Greebel was expected to abide by it – not violate it,” stated FBI Assistant Director-in-Charge Sweeney. “Instead he used his professional expertise to prepare illegitimate agreements, allowing him and others to carry out their illegal activity. His sentencing today serves as a reminder to others that there are consequences for this type of behavior.”
Between 2011 and 2014, Greebel conspired with Shkreli and others to misappropriate Retrophin’s assets in order to pay off defrauded investors in Shkreli’s hedge funds, MSMB Capital Management LP (MSMB Capital) and MSMB Healthcare Management LP (MSMB Healthcare). Specifically, Greebel negotiated and prepared so-called settlement agreements with various of the defrauded investors, causing Retrophin to reimburse them more than $2 million in cash and stock. Greebel also arranged for other defrauded investors to enter into sham consulting agreements with Retrophin as a means to settle liabilities owed by Shkreli and the hedge funds.
In addition, between 2012 and 2014, Greebel and Shkreli schemed to defraud investors in Retrophin by attempting to control illegally the price and trading volume of Retrophin’s stock. As part of the scheme, they concealed Shkreli’s beneficial ownership and control of most of Retrophin’s free-trading shares, recruited associates of Shkreli to be nominee holders of those shares and prevented the nominees from selling the shares. Some of the shares were used to settle liabilities owed by the MSMB hedge funds and Shkreli.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith, David Pitluck and David K. Kessler are in charge of the prosecution.
The Defendant:
EVAN GREEBEL
Age: 45
Scarsdale, New YorkE.D.N.Y. Docket No. 15-CR-637 (KAM)
Montana Woman Sentenced for Aiding and Abetting Receipt of Stolen Mail MatterRead the Press Release
United States Attorney Ron Parsons announced that a Missoula, Montana, woman convicted of Aiding and Abetting Receipt of Stolen Mail Matter was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Cydrea Nicholes, age 26, was sentenced on August 15, 2018, to time served, 2 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and $875 in restitution.
Nicholes was indicted by a federal grand jury in September 2017. The charge related to Nicholes and her co-defendant stealing mail from mailboxes in Montana. On August 12, 2017, they were stopped by law enforcement in Spearfish, and a search of the vehicle revealed multiple cell phones, stolen mail matter, check printing paper, and multiple identification cards belonging to Nicholes and her co-defendant.
This case was investigated by the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, the Department of Homeland Security, Missoula, Montana, Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Postal Service. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Minnesota Attorney Pleads Guilty to Federal Charges in Connection with Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica MacDonald today announced the guilty plea of PAUL R. HANSMEIER, 37, for orchestrating a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. HANSMEIER pleaded guilty to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. On March 6, 2017, HANSMEIER’S co-defendant JOHN L. STEELE pleaded guilty for his role in the scheme.
“This scheme, orchestrated by licensed attorneys, caused widespread damage throughout the United States and wasted judicial resources by causing litigation that should never have happened,” said U.S. Attorney MacDonald. “The defendants’ actions brought embarrassment to the legal profession and amounted to a shameful abuse of their law licenses, only to satisfy their greed. This office is and will always be dedicated to bringing such disgraceful conduct to the bar of justice.”
“Paul Hansmeier’s guilty plea today closes a sad chapter in the career of an attorney who abused his license to practice law and disgraced the bar,” said Special Agent in Charge of the Minneapolis Division Jill Sanborn. “Hansmeier’s role in a brazen multi-million dollar fraud scheme exploited victims by misusing his position of trust as an officer of the court. The FBI will continue to work closely with our law enforcement partners to detect crimes such as this and bring the perpetrators to justice.”
“The role of IRS Criminal Investigation becomes even more important in financial cases, including extortion and money laundering schemes, because of the complex financial transactions that take time to unravel,” said Gabriel Grchan, Acting Special Agent in Charge, St. Paul Field Office. “IRS Special Agents are skilled at investigating all types of financial crimes and today's guilty plea of Paul Hansmeier is a reminder that IRS Criminal Investigation is committed to following the money trail.”
According to his guilty plea and documents filed in court, between 2010 and 2014, HANSMEIER and STEELE, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites. HANSMEIER admitted in court today that he and STEELE created a series of sham entities, which and STEELE controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. The defendants then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, HANSMEIER and STEELE gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
In November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, HANSMEIER and STEELE admitted that they created and used Prenda Law, among other law firms, to pursue their fraudulent claims and proceeds of the scheme. HANSMEIER acknowledged in court today that he and STEELE exerted de facto control over Prenda Law throughout the scheme.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, HANSMEIER and STEELE recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants” who were sued in exchange for HANSMEIER and STEELE waiving their settlement fees while pursuing claims against their supposed “co-conspirators.” In court today, HANSMEIER admitted that the allegations of “hacking” in these complaints were made up.
In total, HANSMEIER and STEELE obtained approximately $6 million from the fraudulent copyright lawsuits.
This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS. Assistant U.S. Attorneys Benjamin Langner and David Maclaughlin of the District of Minnesota and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Defendant Information:
PAUL R. HANSMEIER, 37
Woodbury, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of Nevada City-Based Conspiracy Sentenced to 10 Years in Prison for Multimillion Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — George B. Larsen, 56, formerly of San Rafael, was sentenced to 10 years and one month in prison and ordered to pay $1,759,100 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.
On December 6, 2017, Larsen was convicted following trial on one count of conspiracy and four counts of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Larsen was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators indicated to the homeowners these entities would offer protection against the banks.
Larsen ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home, with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
One co-defendant, Larry Todt, formerly of Malibu, was convicted at trial along with Larsen. Three other co-defendants have previously entered guilty pleas: Remus A. Kirkpatrick, formerly of Oceanside, Michael Romano, of Benicia, and Laura Pezzi, of Roseville. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.
Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations: both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Maryville Detective Honored for Community ServiceRead the Press Release
KANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, announced today that Detective Sgt. Ryan Glidden of the Maryville Department of Public Safety has received the 2018 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Glidden was honored on Thursday, Aug. 16, 2018, during the 16th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Glidden has 21 years of law experience, including 13 years with the Maryville Department of Public Safety.
Following an event earlier in his career, Glidden recognized the need for equipment and training so law enforcement officers could assist victims of gunshot wounds and severe trauma to stop bleeding. He wanted to equip every officer in his agency with a “go-bag” trauma kit. Glidden collaborated with a local medic to conduct the training and began the ambitious project of raising money to pay for the kits, as his agency could not afford to purchase them. Through hard work and his leadership, $24,000 was raised to fully fund the project for his agency.
Realizing that the local sheriff’s office faced the same financial restraints as his own agency, Glidden directed his attention to seeking funds and assisted in raising nearly $18,000 to fully equip that agency with trauma kits.
Not done giving yet, Glidden realized that the regional dive team that assists agencies in multiple states needed assistance in securing additional equipment. He set out to raise over $21,000 to purchase a much-needed rescue boat with a motor capable of transporting a six-person dive crew as well as protective equipment. This equipment provides greater capability of providing the necessary lifesaving operations, which would not have been possible without this funding.
In light of the increase in school shootings, Glidden reached out to public and private schools, not only in his city but across the entire county, inquiring if trauma kits would be of value. One administrator asked him the cost for these kits and he responded with his own question: “What would be the cost if we needed them and didn’t have them?” With overwhelming support from parents, teachers, administrators and the general public, Glidden began raising funds and secured 450 trauma kits, one for each classroom in the county, at a cost of more than $28,000. He also organized in-service training with a trained paramedic to provide hands-on training with staff in each school.
Glidden spends a lot of his free time volunteering as a Big Brother for Big Brothers Big Sisters of Nodaway County. This is something he takes very seriously. He has a unique connection not only to his little brother but also to his little brother’s mother, helping her navigate life, especially when things aren’t going well.
Glidden was nominated by two different individuals from two different law enforcement agencies. Among the nominations and 10 letters of support for Glidden, it was written, “When our program has a need, Ryan is always one of the first people to step up when asked. He leads by example. His kindness to others and calm nature make him an excellent mentor, friend and law enforcement officer. Beyond what he brings to our organization, he is an endearing individual with an obvious passion for our community and a drive to help others.”
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847. He was appointed the first sheriff of Sullivan County, Mo., in 1845. He was in office a little over two years, but he was known to be an honorable, hardworking man intent on protecting the residents of his community. Sheriff Morelock was shot and killed during a court ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Maryland Man Sentenced to 15 Years in Prison for Shooting That Killed One Man, Wounded AnotherRead the Press Release
WASHINGTON – Demarius Jackson, 25, of Hyattsville, Md., was sentenced today to 15 years in prison on charges stemming from a shooting in Northwest Washington last year that killed one man and injured another, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jackson pled guilty in May 2018, in the Superior Court of the District of Columbia, to charges of voluntary manslaughter while armed and assault with a dangerous weapon. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence between 13 and 16 years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced Jackson accordingly. Following his prison term, Jackson will be placed on five years of supervised release.
According to a factual proffer submitted at the plea hearing, the shooting took place at approximately 2:50 a.m. on Saturday, July 8, 2017. The shooting, in the 3500 block of Water Street NW, in the Georgetown area, followed a verbal altercation between the victims and the occupants of a vehicle. The vehicle was operated by an associate of Jackson’s. The interaction continued for about five minutes and concluded when Jackson walked up to one victim, Kennedy Amaya-Olivares, and shot him three times. He then chased after the other victim, shooting at him multiple times and striking him twice in the torso. Mr. Amaya-Olivares, 19, was shot once in the back of the head and once in the chest. He was pronounced dead a short time later.
Jackson was arrested on Sept. 12, 2017, in Morgantown, W. Va., and extradited to the District of Columbia. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lornce Applewhite, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Lindsey Merikas, who investigated and prosecuted the matter.
Man Sentenced to Prison for Sex Trafficking a Minor by ForceRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to 18 years in prison for forcibly sex trafficking a minor.
According to court documents, Justin Shayne Robinson, 27, lured the 16-year-old victim to a motel in northern Virginia. Once the minor victim arrived, Robinson directed sexualized photos to be taken of the her, and created and posted online advertisements for commercial sex acts with the minor. Robinson and his co-conspirator, Markus Jakeem Plummer, 27, of Woodbridge, then trafficked the minor over a period of roughly a week. Robinson and Plummer took all the proceeds of the minor’s commercial sex acts for their own benefit. Robinson and Plummer used force and surveillance to ensure that the minor continued to see clients and was unable to escape the motel. Robinson used violence to force the victim to continue working for him, including choking her and leaving medically documented bruising on her leg and neck.
Co-Conspirator Markus Plummer is scheduled for sentencing on September 28.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI Agents and detectives from the Fairfax County Police, Prince William County Police, Loudoun County Sheriff’s Office, Fauquier County Sheriff’s Office, Leesburg Police Department, Alexandria City Police, Arlington County Police, Washington Metropolitan Police Department, USMS, and other federal OIGs.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Whitney Russell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-310.
Man Sentenced to More than 17 Years in Prison for Traveling to the Dominican Republic to Engage in Sex Acts with MinorsRead the Press Release
Theodore William Symonds, 51, was sentenced yesterday by United States District Judge Robert N. Scola to more than 17 years in prison and 30 years of supervised release, after previously pleading guilty to traveling to the Dominican Republic for the purpose of engaging in illicit sexual conduct with minors.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Symonds, a U.S. citizen, frequently traveled between the United States and the Dominican Republic, including on March 20, 2017. Symonds was arrested on March 23, 2017, by local Dominican authorities for crimes related to the sexual abuse of children. ICE-HSI began investigating him shortly thereafter and uncovered proof of Symonds’ sexual abuse of children, both in person and using the internet.
U.S. Attorney Benjamin Greenberg said, “The U.S. Attorney’s Office and our law enforcement partners stand united against child exploitation and abuse. There is no immunity for these heinous crimes, whether committed at home or abroad. Any individual who victimizes the most vulnerable members of society, our children, can look to today’s sentencing to see there will be severe consequences within the U.S. federal criminal justice system.”
“This sentence should send a powerful message to child predators who believe that they can evade law enforcement by using international travel to engage in this type of reprehensible behavior,” said Mark Selby, Special Agent in Charge of HSI Miami. “Sexual exploitation of children is a despicable crime that will never be tolerated. HSI will continue to work closely with its law enforcement partners around the world so that sexual predators are always brought to justice.”
Mr. Greenberg commends the investigative efforts of ICE-HSI in support of this matter. Mr. Greenberg also thanked the local prosecutors and law enforcement officers in Puerto Plata, Dominican Republic, as well as members of the HSI Dominican Republic Transnational Criminal Investigative Unit (TCIU), for their assistance. This case was prosecuted by Assistant United States Attorneys Jonathan Kobrinski and Daniel Cervantes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced for Defrauding Elderly Victims in Magazine ScamRead the Press Release
ALEXANDRIA, Va. – An Arizona man was sentenced today to 14 years in prison for his role in a conspiracy that defrauded elderly victims, including several Virginia residents, out of over $640,000.
“Oliver preyed upon approximately 350 individuals, including a 94-year-old resident of Alexandria and an 84-year-old resident of Painter who suffered from Alzheimer’s,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Not content to simply deceive his victims, Oliver would badger and threaten his victims to extort even more money from them. This conduct is depraved in its own way and hopefully there will be some relief to the victims and their loved ones knowing that Oliver won’t be in a position to harm anyone else.”
According to court documents, Raheem Oliver, 38, operated a magazine subscription renewal fraud scam that began when he or one of his associates contacted magazine subscribers and offered to renew their subscriptions over the phone. When a subscriber agreed, Oliver would double or triple-bill their accounts, without ever actually renewing their subscriptions as promised. Throughout this process, Oliver also identified victims who were particularly vulnerable to such a scam, primarily including elderly individuals. Oliver targeted those vulnerable victims with threatening phone calls, falsely representing that the victims needed to pay thousands of dollars at a time for purported renewal fees, past-due balances, fines, attorneys’ fees and other legal fees, and court costs. He threatened victims with legal action, often including arrest, if they did not make the payments as requested, and thereby convinced victims to mail checks and wire money to him and his associates in Arizona.
“Protecting the elderly from criminal fraud schemes is a priority for the Postal Inspection Service,” said Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “While today’s sentence should serve as a strong deterrent for those seeking to threaten and steal from these vulnerable individuals, Postal Inspectors will continue to pursue those who misuse the mail to prey on their victims.”
Earlier this year, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than a 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Samantha Bateman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-9.
Long Island Convenience Store Owner Sentenced to Prison for Selling K2 Drug from His Convenience StoreRead the Press Release
Earlier today, in federal court in Central Islip, Osman Ak was sentenced by United States District Judge Denis R. Hurley to a year and one day in prison, to be followed by three years’ supervised release, for selling the illegal drug K2, also known as “spice” and synthetic marijuana, from his convenience store in Medford, New York. Ak pleaded guilty in November 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and George Beach II, Superintendent, New York State Police (NYSP), announced the sentence.
“Osman Ak is going from his convenience store to prison for selling dangerous drugs over the counter, placing the community at risk to the dangers associated with this synthetic hallucinogen and its unpredictable side effects,” stated United States Attorney Donoghue. “This Office is working tirelessly with our law enforcement partners to prosecute drug traffickers and dealers at all levels and hold them responsible for their crimes.”
“Ingesting K2 is like playing Russian roulette, and Osman AK was the person responsible for enticing the young people of Long Island to play,” stated DEA Special Agent-in-Charge Hunt. “Today AK is being held accountable for peddling this extremely dangerous and potentially life threatening synthetic cannabinoid into our communities. I commend the agents and officers assigned to our DEA Long Island District Office, our partners at the New York State Police, and the prosecution team at the Eastern District of New York for their hard work on this investigation.”
"As we have seen time and again, synthetic drugs endanger the health of users and have no place being sold in our neighborhoods,” stated NYSP Superintendent Beach. “This case sends a strong message that we will not tolerate the sale of synthetic drugs anywhere in New York State, and those who sell these illegal substances at the detriment of our communities will be held fully accountable.”
The defendant owned and operated the convenience store, Eyup Gas & Convenience Store, Inc. d/b/a US Food Mart in Medford where, between April 2017 and May 29, 2017, he sold the illegal drugs during business hours. According to court filings, the K2 was packaged in glitter bags bearing cartoon characters and brand names such as “OMG,” “AK47,” “Joker” and “Hayze Peachy King.” The drugs were kept in cigar boxes hidden behind the cash register. Store videotapes seized by law enforcement for the relevant time period showed bags of K2 being sold to customers, most of whom appeared to be young adults.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
OSMAN AK
Age: 45
Holbrook, New YorkE.D.N.Y. Docket No. 17-CR-527 (DRH)
Local Insurance Agent Convicted of FraudRead the Press Release
Memphis, TN – Following a four-day jury trial in federal court, a Memphis man has been convicted on two counts of wire fraud. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the verdict today.
According to information presented in court, Manzur Mazumder, 49, an insurance agent, started a hedge fund business which defrauded several individuals of their retirement savings. Between 2014 and 2017, Mazumder obtained a total of $360,000 from "M.T.," a resident of Hawaii, "J.T.," a resident of Missouri, and "A.J.," a resident of Memphis.
U.S. Attorney D. Michael Dunavant said, "Fraudulent schemes that steal hard-earned retirement savings from innocent victims represent the very worst betrayals of trust in our financial markets. We are pleased that justice has been achieved on behalf of the victims, and we commend the FBI for their outstanding investigation in this disturbing case.
Mazumder used a large portion of the investors’ funds to pay for personal expenses, including living and travel expenses, a down payment on a condominium, loan payments, debit card charges and overdrafts in several bank accounts. Mazumder day-traded the rest of the investors’ funds in options contracts, resulting in large losses.
"Today’s conviction shows that those who prey on innocent investors and violate the law in order to line their own pockets will be identified, investigated, prosecuted and held accountable for their crimes," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This type of crime degrades the trust investors place in their investment advisors and the financial markets, and the FBI remains steadfast in our commitment to pursue these type of cases to protect the public from such fraud."
This case was investigated by the FBI.
Assistant U.S. Attorneys Dean DeCandia and David Pritchard are prosecuting this case on the government’s behalf.
Las Vegas Resident Sentenced for Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who obtained passports from citizens of foreign countries then filed false tax returns using their identities was sentenced to 366 days in prison and three years’ supervised release, announced U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation.
Edwin Israel Bravo-Donis, 32, previously pleaded guilty to one count of submitting a false, fictitious, and fraudulent claim to the Government. United States District Judge Richard F. Boulware II presided over yesterday’s sentencing hearing.
According to admissions made in the plea agreement, between January 1, 2015, and October 24, 2017, Bravo-Donis obtained passports from citizens of foreign countries, such as Guatemala and El Salvador. Even though these foreign citizens did not live or work in the United States, Bravo-Donis used their identities to file fabricated tax returns with the Internal Revenue Service that falsely claimed they were each entitled to thousands of dollars in tax refunds. As part of the scheme, Bravo-Donis assisted in or participated in the filing of at least 228 false tax returns in the names of 67 foreign citizens that received more than $500,000 in refunds from the IRS.
The case was investigated by the IRS and the Department of Homeland Security. Assistant U.S. Attorney Tony Lopez prosecuted the case.
###
Laguna Pueblo Man Sentenced to Seven Years for Conviction on Federal Conspiracy and Commercial Robbery ChargesRead the Press Release
ALBUQUERQUE – Cruz Abeita, 28, an enrolled member of the Laguna Pueblo who resides in San Felipe, N.M., was sentenced today in federal court in Santa Fe, N.M., to 84 months of imprisonment for his conviction on a conspiracy charge and for violating the Hobbs Act. Abeita will be on supervised release for three years after completing his prison sentence. Abeita’s conviction arises out of the robbery of the Dancing Eagle Travel Center in Cibola County, N.M., on Dec. 30, 2016,
Abeita was arrested in Feb. 2017, on a criminal complaint charging him with armed robbery and brandishing a firearm during a crime of violence on Dec. 30, 2016, on the Laguna Pueblo in Cibola County. According to the complaint, Abeita and another individual entered the Casa Blanca Travel Center on the Laguna Pueblo where they threatened the cashier with what appeared to be a handgun and stole money from the cash register.
On Oct. 3, 2017, Abeita pled guilty to a felony information charging him with conspiracy and violating the Hobbs Act by robbing a business engaged in interstate commerce. In entering the guilty plea, Abeita admitted that on Dec. 30, 2016, he entered the Dancing Eagle Travel Center in Cibola County, with an associate, where they demanded money from the cashier and threatened the cashier with a replica pistol that appeared to be a real firearm.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, and the Laguna Police Department. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
Krebs Man Found Guilty of Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jared Robert Faulkner, age 30, of Krebs, Oklahoma, was found guilty by a federal jury of Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The jury trial began with testimony on Thursday, August 16, 2018 and concluded on Friday, August 17, 2018 with the guilty verdict.
Evidence at trial proved that on or about February 10, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce. The verdict was the result of an investigation coordinated as part of the Project Safe Neighborhoods effort in the Eastern District of Oklahoma to reduce gun and related drug crime. Project Safe Neighborhoods is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the McAlester Police Department, the Krebs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The evidence presented to the jury by the U.S Attorney’s Office was the result of work by multiple agencies – the McAlester and Krebs Police Departments and the ATF – working together. The investigation began when a person called police asking that they respond to a disturbance Jared Faulkner was involved in. When they arrived officers discovered that Faulkner possessed a firearm which was unlawful for him to have because he was a convicted felon,” said United States Attorney Brian J. Kuester. “I want to thank the jurors for giving their time for the very important service they gave to the community. Jury duty is sometimes looked upon as an inconvenience – something that should be avoided if at all possible. While it may require some sacrifice by the jurors, their service is crucial to our legal system.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Dean Burris represented the United States.
KC, Independence Men Plead Guilty to Drug Trafficking That Led to Kidnapping, TortureRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and an Independence, Mo., man have pleaded guilty in federal court to their roles in a drug-trafficking conspiracy that involved the kidnapping and torture of an Independence, Mo., man.
Gerald L. Holmes, also known as “Jerry” or “Joker,” 26, of Kansas City, pleaded guilty today before U.S. Chief District Judge Greg Kays to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime.
Jeremy R. Bond, 40, of Independence, pleaded guilty on Thursday, Aug. 17, 2018, to his role in the drug-trafficking conspiracy.
Co-defendant Randal G. Holmes, also known as “Peckerwood” or “Wood,” 54, the father of Gerald Holmes, pleaded guilty on July 10, 2018 to the same charges as his son – one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime.
According to today’s plea agreement, co-conspirators purchased at least 120 pounds of marijuana from a source in Colorado, for which they made more than a dozen trips between Colorado and Kansas City. Gerald Holmes paid their source between $1,600 to $2,400 per pound, depending on the type and quality of marijuana available.
During the conspiracy, which lasted from May 1 to Sept. 13, 2016, Bond invested $10,000 into the marijuana operation. In return, he received $1,000 a week as interest and free marijuana until the entire principal investment was repaid in full. This investment allowed Gerald Holmes and a co-conspirator, identified in court documents as “C.H.” (who had made four trips to Colorado with Gerald Holmes), to purchase greater quantities of marijuana per trip. Once it reached the greater Kansas City metropolitan area, the marijuana was then resold by Gerald Holmes and C.H.
On Sept. 12, 2016, Gerald and Randal Holmes agreed to kidnap C.H. because he stole money that was intended for the purchase of marijuana.
Holmes arrived at the Independence, Mo., residence of the victim’s father, identified as “W.H.,” on Sept. 12, 2016. During their conversation, Gerald Holmes removed a firearm from his waistband and placed it on a table in front of W.H. Conspirators told W.H. to call C.H. and tell him he was being held at gunpoint and that C.H. needed to come to the residence right away. When C.H. arrived at the residence, Randal Holmes pointed a firearm at him and told him to get into his vehicle. While in the vehicle, Gerald Holmes struck, punched and choked C.H. as Randal Holmes drove away.
They took C.H. to Randal Holmes’s residence, where they were met by a third co-conspirator. C.H. was taken to the basement, where Gerald Holmes continued to assault him with fists, a hammer and tin snips/clippers. During the assault, Randal Holmes repeatedly demanded that C.H. disclose where the duffle bag containing the money was located. Gerald and Randal Holmes left to retrieve the duffle bag while a co-conspirator held C.H. at gunpoint.
Randal Holmes later drove C.H. to a rural residence near Edwards, Mo. As Randal Holmes drove them to the residence, Gerald Holmes continued to strike C.H. with fists and the butt of a firearm. When they arrived at the residence, C.H. was told to call his father and to tell him that he was okay, that he had taken a beating, that he would be home in a couple of days and that he deserved what had happened.
Law enforcement officers were able to trace the telephone call and on Sept. 13, 2016, officers were able to locate C.H. and arrest Gerald and Randal Holmes. Officers observed that C.H. had suffered multiple, visible injuries to his face, head, hands and feet. Officers noted that C.H. had trouble walking, that his face was black and blue, as well as swollen with traces of dried blood. Upon receiving medical treatment, it was determined that C.H. had also suffered a fracture in his left hand.
Officers found a Jimenez Arms 9mm pistol in Randal Holmes’s vehicle and a Hi-Point 9mm pistol in the residence where C.H. had been held. Officers also found an FN Herstal .40-caliber pistol, a Remington .270-caliber rifle, an RG .22-caliber revolver, a Ruger .22-caliber rifle, a Mossberg .20-gauge shotgun, 36.4 grams of marijuana and drug paraphernalia in Gerald Holmes’s residence.
Under the terms of today’s plea agreement, Gerald Holmes is subject to a minimum sentence of 25 years in federal prison without parole, up to a sentence of 35 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Under federal statutes, Bond is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Benton County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s "Safe Prescribing Plan" that seeks to "cut nationwide opioid prescription fills by one-third within three years," the proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average of ten percent, as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and the current proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs."The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action."
"We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day," said DEA Acting Administrator Uttam Dhillon. "This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine."
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from "legitimate channels of trade" by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
Already, the Justice Department initiative appears to be having an impact in the Southern District of Illinois. The most recent data available for St. Clair County shows a steady decline in opioid prescriptions over the past three years:
At the same time, the district has seen opioid overdoses, and deaths resulting from those overdoses, steadily increasing:
"Opioid addiction is driving the overdose epidemic in this community," U.S. Attorney Steven D. Weinhoeft said, "and reducing access to the most addictive pain killers is an obvious place where we can make an impact. We’re going to continue working on this problem from every angle, including aggressively prosecuting the dealers and the pill mill doctors that perpetuate the cycle of opioid abuse here in the Southern District of Illinois."The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“I share the sentiments of our Attorney General that we face an unprecedented crisis. I am appalled by the tragic loss of so many lives in our state. We are defined as a nation by our response to crisis. As such, I wholeheartedly support and commend the efforts of the Department of Justice and the Drug Enforcement Administration to reduce the availability of opioids available for illegal distribution and abuse. As we struggle to come to grips with the enormity of the opioid threat in our state and in our nation, we recognize that we must employ a ‘whole-of-government approach’ to end this crisis. Therefore, I will continue to commit the full resources of the United States Attorney’s Office for the Eastern District of North Carolina to address this threat and to protect the citizens we serve by vigorous enforcement of our laws.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction Plan in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
United States Attorney Kurt G. Alme voiced support for the proposed rulemaking. Alme stated, “The Safe Prescribing Plan provides valuable support for our efforts across Montana to reduce the amount of unlawfully diverted opioid medications. This plan reduces the production of these highly addictive medications for the third year in a row and will help reduce the amounts of these drugs potentially diverted to drug traffickers. The proposed final rule also promotes greater involvement from the state attorneys general, and I look forward to working with A.G. Fox to identify and stop the unlawful diversion of these drugs.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
ARIZONA - The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average of ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quota (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
See attached Aggregate Production Quota for Opioids (Table).
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“The OPIOID Task Force -- led by our office in close partnership with federal, local, state, and tribal law enforcement -- has made great strides in prosecuting opioid-related offenses,” stated Elizabeth A. Strange, First Assistant United States Attorney. “We applaud the proposal to further restrict manufacturing and, for our part, we will continue to focus our Task Force on combatting this epidemic throughout Arizona.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Please note: This is the text of the 2019 Aggregate Production Quota Notice of Proposed Rulemaking (NPRM) as signed by the Acting DEA Administrator, but the official version of the NPRM will be published in the Federal Register.
To view the 2019 Aggregate Production Quota NPRM click here.
RELEASE NUMBER: 2018-107_ Opioid (AZ)
# # #
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.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
Tampa, FL -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl.
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“The misuse and abuse of opioids in our communities has reached epidemic proportions,” said U.S. Attorney Maria Chapa Lopez. “We intend to work with our partners to use every tool in our arsenal, including prevention, education, and prosecution where necessary, to stem the flow of this devastating scourge.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“The Eastern District of Louisiana (EDLA) will use every investigative technique available to combat the illegal distribution of opioids,” United States Attorney Duane A. Evans said. “The U.S. Drug Enforcement Administration’s proposed manufacturing quotas for certain opioid drugs serve as additional tools to fight the opioid epidemic. The proposal’s implementation should reduce the illegal distribution of certain opioids and is not intended to stymie the legitimate use of those very same drugs. Also, the proposal will not curtail the EDLA’s efforts to prosecute those individuals or entities that choose to illegally distribute opioid drugs.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Jury Convicts Inscription House Man for Violent Conspiracy and CarjackingRead the Press Release
PHOENIX – Today, Shaun Hurley, 39, of Inscription House, Ariz., was convicted by a jury on all charges, including conspiracy, carjacking, robbery, and assault with a dangerous weapon. The jury also found Hurley guilty of three counts of using, brandishing, and discharging a firearm in a crime of violence. Hurley will be sentenced by U.S. District Judge Douglas L. Rayes on Oct. 29, 2018.
In July of 2017, Hurley participated in a conspiracy to steal a truck from the victim. Hurley and his co-conspirator, who previously pleaded guilty in the case, assaulted the victim with a shotgun and stole his truck. All involved are members of the Navajo Nation, and the crimes occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08211-DLR
RELEASE NUMBER: 2018-108_Hurley
# # #
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.
PHOENIX – Today, Shaun Hurley, 39, of Inscription House, Ariz., was convicted by a jury on all charges, including conspiracy, carjacking, robbery, and assault with a dangerous weapon. The jury also found Hurley guilty of three counts of using, brandishing, and discharging a firearm in a crime of violence. Hurley will be sentenced by U.S. District Judge Douglas L. Rayes on Oct. 29, 2018.
In July of 2017, Hurley participated in a conspiracy to steal a truck from the victim. Hurley and his co-conspirator, who previously pleaded guilty in the case, assaulted the victim with a shotgun and stole his truck. All involved are members of the Navajo Nation, and the crimes occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08211-DLR
RELEASE NUMBER: 2018-108_Hurley
# # #
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.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Guillermo Jose Rodriguez, of Charles Town, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Rodriguez, age 25, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride.” Rodriguez admitted to possessing and distributing cocaine in Jefferson County in January 2018.
Rodriguez faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jackson Man Pleads Guilty to Commercial Driver’s License FraudRead the Press Release
Jackson, Miss. –Benjamin James McGrigg, 43, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to commercial driver’s license fraud, announced U.S. Attorney Mike Hurst and Department of Transportation, Office of Inspector General Regional Special Agent in Charge Marlies Gonzalez.
On March 5, 2018, McGrigg was charged in a five-count federal indictment charging conspiracy and making false and fraudulent material representations.
McGrigg previously worked for a company that provided training and certification to individuals seeking commercial driver’s licenses ("CDLs"). His employment only authorized certification to those that were students of the company. McGrigg provided paperwork to those whom wanted a CDL that were not students of his employer. McGrigg prepared the paperwork representing that the applicant had taken the road skills test, when in fact the applicant had not. This fraudulent paperwork would be given to an individual seeking to obtain a CDL in exchange for payment to McGrigg. Such fraudulent paperwork would be presented by these individuals to the Mississippi Department of Public Safety in order to secure a commercial driver’s license. A review of the commercial drivers’ paperwork in Mississippi showed that some of the applicants could not have achieved the results on the paperwork. Some Commercial Driver’s License holders were interviewed and said they had never taken the test and just paid McGrigg for the paperwork.
"This investigation demonstrates our commitment to protecting the efficacy of DOT’s commercial driver’s license regulations and advancing safety on the roads by ensuring that only qualified individuals obtain CDLs," stated Marlies Gonzalez, Regional Special Agent-In-Charge at U.S. DOT-OIG. "Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent, detect and prosecute fraud schemes which endanger the traveling public."
McGrigg will be sentenced by Judge Jordan on November 16, 2018 at 9:15 a.m. He is facing a maximum penalty of three years imprisonment, a $250,000 fine, and 3 years of supervised release.
The case was investigated by the United States Department of Transportation-Office of Inspector General, the Mississippi Department of Public Safety, the Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“I commend the efforts of the Department of Justice and the Drug Enforcement Administration to reduce Opioid production,” said U.S. Attorney for the District of South Dakota Ron Parsons. “This year, at least twelve drug overdose deaths have occurred in Minnehaha County alone. That is twelve deaths too many. I am hopeful the continued and enhanced efforts to curb the availability of these drugs will result in less overdoses.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
It’s Time to Restore a Valuable Tool to Prosecutors by Fixing the ACCARead the Press Release
Violent crime rates in our country tripled from 1964 to 1980. Robbery tripled, murder doubled, and aggravated assault nearly tripled. This was an alarming time for communities across our nation.
To fight back, Congress passed the Armed Career Criminal Act (ACCA) in 1984, giving federal prosecutors a powerful new tool to deal with the growing rate of violent crime. The ACCA gave prosecutors the ability to take the most violent criminals off the streets by requiring courts to impose a minimum 15-year sentence for felons who were caught with a firearm and had a criminal history of three or more violent felonies.
Federal prosecutors across the county aggressively used this new tool, charging and convicting violent offenders and taking them out of the communities they were terrifying. By 1992, violent crime had begun a historic decline. From 1991 to 2014, violent crime and murder fell by half, aggravated assault fell by 47 percent, and robbery fell by nearly two thirds.
While some debate how much of this dramatic decline was caused by the enactment of the ACCA, the United State Sentencing Guidelines (when their application was mandatory across the country), and a number of other things, there really is no doubt the most significant factor in the decline in the rate of violent crime was due to keeping the most violent criminals off the streets longer.
In 2015—after 30 years on the books—a critically important part of the ACCA was struck down by the Supreme Court in Johnson v. United States as being vague. Lawyers, judges, and scholars can disagree about whether the Court got it right, but one thing not up for reasonable debate is the dire fallout resulting from the Johnson decision.
Invalidating a portion of the ACCA nullified many violent offenders’ sentences, causing their release to be earlier than intended. This resulted in real consequences across the nation and has led directly to an increase in crime. The defendants released as a result of this ruling have already victimized hundreds of persons: 10 defendants were arrested for murder, 14 for kidnapping, 11 for sexual assault, 37 for robbery, 218 for assault, 56 for burglary, 156 for larceny, and 13 for stolen cars. In addition, 53 defendants were re-arrested for drunk driving, 81 defendants went back to drug trafficking, and 166 were re-arrested for other drug charges. Ironically, 100 defendants were also re-arrested for weapons offenses.
In the Eastern District of Tennessee, at least 37 defendants were granted relief in light of the Johnson ruling. Twenty-seven have already been released from prison. Of those, at least 14—more than half—have already had their terms of supervised release revoked or modified due to noncompliance. Three of the 14 referenced above have actually had their supervised release revoked twice and are back in jail today.
Placing career violent criminals back on the street before their time is served should be unacceptable to everyone. More than 1,400 criminals—each convicted of three felonies—have been let out of jail since the Court ruling. So far, more than 600 have been arrested again. On average, these 600 criminals have been arrested, rearrested, or reoffended three times since 2015. A majority of those who have been out of prison for two years have already been arrested again.
While these numbers are shocking, experience tells us they are likely an underrepresentation of the illegal activity committed by these criminals. In the short three years since the ruling by the Supreme Court, released violent felons have already needlessly victimized hundreds of Americans. How many more will be victimized this year, or the next, or the next? As the top federal law enforcement official in our District, I shudder to think we will only see history repeat itself again and again.
Thankfully, the problem is solvable. Congress can fix the problem created by the Johnson decision. Congress has the ability to amend the ACCA so that prosecutors can continue to keep the most violent offenders behind bars and out of our neighborhoods and communities. It’s not for me to say how Congress should go about this fix—I understand that there are many options on the table. But, in my opinion, one more victim is one too many.
J. Douglas Overbey, United States Attorney
Illegal alien admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rogelio Santacruz Godinez, also known as “Tramposo,” also known as “Trampa,” of Axton, Virginia, Citizen of Mexico, has admitted to a drug charge, United States Attorney Bill Powell announced.
Godinez, age 36, pled guilty to one count of “Conspiracy to Distribute Cocaine.” Godinez worked with others to distribute cocaine in Berkeley and Jefferson Counties from August 2017 to February 2018.
Godinez faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the case on behalf of the government. The investigation was led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies that assisted in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Houston Man Ordered to Prison for Attempting to Damage Hermann Park StatueRead the Press Release
HOUSTON – A 26-year-old man has been sentenced to federal prison following his conviction for attempting to maliciously damage property receiving federal financial assistance, announced U.S. Attorney Ryan K. Patrick. Andrew Schneck pleaded guilty March 27, 2018.
Today, U.S. District Judge Ewing Werlein Jr. handed Schneck a 78-month sentence to be immediately followed by three years of supervised release. The court also imposed a $10,000 fine.
On the evening of Aug. 19, 2017, a Houston park ranger observed Schneck kneeling among the bushes in front of the General Dowling Monument located in Hermann Park in Houston. Schneck was holding two small boxes with various items inside to include what appeared to be duct tape and wires. After placing the boxes on the ground per the ranger’s request, Schneck took a drink of clear liquid from a plastic bottle, spit it out and poured the remainder on the ground. The ranger then noticed a timer and wires in the box and notified the Houston Police Department (HPD).
The HPD Bomb Squad tested the clear liquid and a white powdery substance found in a small, black aluminum tube which revealed they were nitroglycerin and hexamethylene triperoxide diamine (HMTD), respectively. HMTD is a high explosive organic compound used as an initiating, or primary, explosive. Nitroglycerin is used as an active ingredient in the manufacture of explosives. ln its pure form, nitroglycerin is a contact explosive with physical shock causing it to explode and which degrades over time to even more unstable forms. Nitroglycerin is highly dangerous to transport or use.
The FBI Explosive Unit Laboratory examined the items in Schneck’s possession on Aug. 19 and determined them to comprise a fully functioning improvised explosive device.
Schneck has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and HPD conducted the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel are prosecuting the case.
Heroin Trafficker for Mexican Drug Cartel Sentenced in Brooklyn Federal Court to 68 Months’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Francisco Canizales-Ramirez, who transported heroin for a violent Mexican drug trafficking organization known as “H-2,” was sentenced by United States District Judge Carol Bagley Amon to 68 months’ imprisonment. In April 2018, Canizales-Ramirez pleaded guilty to conspiring to distribute and possess with intent to distribute heroin. Upon completion of his sentence, the defendant will be deported to Mexico.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, Canizales-Ramirez has been held responsible for his role as a smuggler for a large-scale Mexican drug trafficking organization that relies on criminals like the defendant to receive imported heroin and distribute it into our country,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are responding to the opioid epidemic by vigorously investigating and prosecuting all traffickers, large and small.” Mr. Donoghue extended his grateful appreciation to the United States Attorney’s Office for the Southern District of Ohio; Las Vegas District Office, Columbus District Office and New York Division of the U.S. Drug Enforcement Administration; Ohio State Highway Patrol; and a number of Ohio police departments, specifically, the Columbus Division of Police, Narcotics Bureau, Franklin County Sheriff’s Office, Westerville Police Department and Upper Arlington Police Department, for their assistance in the investigation and prosecution.
According to court filings and facts presented during court proceedings, the defendant agreed to receive and transport a kilogram of heroin on behalf of “H-2,” which is based in Nayarit and Sinaloa, Mexico. The defendant subsequently received the heroin from a drug courier in Columbus, Ohio, and transported the drugs to Brooklyn for distribution.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Alicia N. Washington, G. Karthik Srinivasan, Ryan C. Harris, Craig R. Heeren and Michael P. Robotti are in charge of the prosecution.
The Defendant:
FRANCISCO CANIZALES-RAMIREZ
Age: 35
Columbus, OhioE.D.N.Y. Docket No. 16-CR-658 (CBA)
Haysville Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Haysville man was sentenced Friday to 130 months in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said.
Daniel I. Miller, 35, Haysville, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used a file sharing program on his computer to obtain and share videos depicting children engaged in sex acts. A detective working with the Kansas Internet Crimes Against Children Task Force downloaded child porn from Miller’s computer via the Internet.
McAllister commended Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Guardian of Justice Award: KC Detectives, Federal Agents Honored for InvestigationsRead the Press Release
KANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, announced today that local and federal law enforcement officers were recognized for their work on two significant cases as recipients of the 2018 Guardian of Justice Award.
Kansas City, Mo., Police Detective Leland Blank and FBI Special Agent Ryan Williams were recognized for their investigation of two men who were convicted after a week-long trial of charges related to the kidnapping and murder of another man.
Kansas City, Mo., Police Detective Don Stanze and U.S. Postal Inspector Justin Lewis were recognized for their investigation into a conspiracy to distribute large amounts of PCP, which was shipped in gallon-sized containers from California. This successful investigation resulted in the trial conviction of the California supplier as well as the successful prosecution of numerous local defendants.
The award recipients were honored on Thursday, Aug. 16, 2017, during the 16th Annual LECC Training Seminar in Springfield, Mo.
USA v. King and Ross
Raynal King and Howard R. Ross III were each sentenced to multiple life terms in federal prison without parole for the carjacking, kidnapping and murder of Jaime Patton, following the investigation by Blank and Williams.
Patton was returning home from the hospital, where he had been caring for a family member, sometime after 5 a.m. that day when King and Ross kidnapped him and stole his 2014 Jeep Patriot. They held Patton at gunpoint and drove him around in his Jeep to ATM machines, attempting to force him to provide his PIN number for his debit card so they could withdraw cash from his bank account. Patton was unable to provide a working PIN number to withdraw cash. King and Ross became upset with the lack of cooperation from Patton and shot him in his upper thigh to make sure he knew they were not playing around.
King and Ross then drove Patton in his Jeep south on Holmes Road while they discussed what to do with him. At approximately 6:30 a.m., shortly after traveling south on Holmes Road through the intersection with 135th Street and further out of the city, Patton jumped out of his Jeep while it was moving. Patton was shot multiple times while attempting to jump and he fell to the roadway. King and Ross then fled from the area in Patton’s Jeep, leaving him to die on the side of the road.
Blank and Williams expended tremendous investigative efforts in this case and further demonstrated their dedication to justice during trial preparations and throughout the trial. It is important to note that after the jury was excused, several members of the jury were compelled to personally commend the dedication to seeking justice and thoroughness of the investigative efforts by law enforcement in this case. This type of acknowledgement by members of our community who were randomly selected to serve as jurors in this case is truly an honor.
USA v. Hamilton
Ladronal S. Hamilton, a resident of Hawthorne, California, was sentenced to life in federal prison following the investigation by Stanze and Lewis. Hamilton was the organizer and supplier to large-scale Kansas City PCP distributors, each of whom has been convicted and sentenced in federal court. He organized and arranged the cross-country shipment of numerous multi-kilogram containers of PCP from California.
Investigators made three seizures of PCP from Hamilton that totaled approximately 14 kilograms. In addition, the testimony of cooperating witnesses during the trial established that Hamilton distributed additional amounts in excess of 37 kilograms of PCP. Hamilton also possessed firearms in relation to drug trafficking during the timeframe of the conspiracy. One investigator testified that he recovered cocaine and three firearms from Hamilton’s California residence.
PCP is an exceptionally dangerous and volatile hazardous material requiring hazmat units or certified laboratories for proper handling. PCP in the mail creates a tremendous safety risk for postal employees and customers.
Hamilton was identified as the supplier in two additional federal investigations that resulted in the convictions of 31 defendants in separate cases.
In seeking the life sentence for Hamilton, the government’s court filings refer to the serious nature of the crime and to Hamilton’s extensive prior criminal record, which includes felony convictions for armed bank robbery, second-degree murder, first-degree assault, armed criminal action and possession with intent to distribute a controlled substance. A career offender for violent crimes and narcotic offenses, Hamilton’s s interstate distribution of large quantities of PCP began within three years of his release from federal prison for armed bank robbery as a result of his second revocation from supervised release.
Stanze joined the Kansas City, Mo., Police Department following his service as a soldier in the United States Army. During his 20-year career as a police officer, Stanze has become a subject matter expert in narcotics trafficking. As an undercover drug detective, Stanze purchased nearly every type of illegal drug available on the streets of Kansas City. He has used that experience to build long-term, federal investigations against some of Kansas City’s most prolific and violent drug dealers. Stanze has been sought out by federal investigators to lead or assist on multiple OCDETF investigations due to his experience and work ethic.
Lewis has worked for the U.S. Postal Service almost his entire adult life. He began working for the Post Office in college and spent approximately eight years working as a clerk, branch supervisor, and in the accounting department, before he became an inspector with the U.S. Postal Inspection Service, where he has served for 15 years. As an inspector, Lewis has focused his career on seizing illegal drugs and conducting investigations for the successful prosecution of high-level drug dealers. Lewis is also one of a select few postal inspectors who is qualified as a Dangerous Mail Specialist and since 2003, Lewis is one of a select few inspectors trained to respond to mail or parcels containing hazardous materials. Based on his extensive experience, Lewis has been a subject matter expert in narcotics interdiction and an instructor for drug interdiction for new U.S. Postal Inspectors for approximately five years. Were it not for his focus and keen insight into Hamilton’s use of the mail to facilitate his PCP shipments, the evidence to prosecute the case may have never been discovered.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.
Greenville Man Pleads Guilty to Wire FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Timothy L. Ware, age 52, of Greenville, pled guilty in federal court in Anderson, to wire fraud, a violation of Title 18, United States Code, Section 2252A. United States District Judge Timothy M. Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Seaboard Corporation (“Seaboard”) intended to wire $352,929 (“the Funds”) to Advantage Ford Commercial Sales (“Advantage”) related to a legitimate business transaction. Unbeknownst to either Seaboard or Advantage, an Advantage email account was compromised and instructions were sent to Seaboard to wire the Funds to a Branch Banking & Trust (“BB&T”) account in the custody and control of Ware. On July 8, 2016, the Funds were wired from Seaboard to the BB&T account of Ware.
On July 8, 2016, Ware began transferring the Funds from his BB&T account to accounts at the Bank of Travelers Rest and Navy Federal Credit Union. On that same day Ware withdrew $40,000 in cash from his BB&T account. Similarly, Ware obtained three BB&T cashier checks in the amounts of $87,500, $52,500, and $87,500, respectively.
The case was investigated by agents with the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####
Gang Member Sentenced to 7 Years in Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTWANE WILLIAMS-BEY, also known as “Buck,” 27, of East Windsor, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking by members and associates of the Orange Street Killas (OSK) in Hartford’s Parkville neighborhood. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the drugs on the streets of Hartford.
The investigation revealed that WILLIAMS-BEY, an OSK member, supplied heroin and crack to other OSK members for street sale. WILLIAMS-BEY also used the home of a family member on Sterling Street in Hartford to store narcotics and service drug customers.
WILLIAMS-BEY was arrested on February 10, 2017. On that date, a search of his East Windsor residence revealed approximately 800 bags of heroin and $1,650 in cash. A search of the home on Sterling Street revealed distribution quantities of heroin and crack cocaine.
WILLIAMS-BEY has been detained since his arrest. On February 22, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
WILLIAMS-BEY’s criminal history includes convictions for firearm, drug and assault offenses. The assault conviction stems from an incident in August 2009 when he shot a man from a car sunroof in West Hartford.
Sixteen individuals were charged and convicted as a result of this investigation.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fulton Sex Offender Indicted for Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A prior sex offender residing in Fulton, Mo., has been indicted by a federal grand jury for attempting to entice a minor to engage in illegal sexual activity.
Michael James Collins, 21, was charged in a three-count indictment returned by a federal grand jury in Jefferson City, Mo., on Thursday, Aug. 16, 2018. Collins, who was a resident at the Community Supervision Center in Fulton, has a prior felony conviction for sexual misconduct involving a child.
The federal indictment charges Collins with using the internet and a cell phone from July 21 to Dec. 10, 2017, to attempt to entice a minor under the age of 14 to engage in illegal sexual activity. Collins is also charged with one count of transporting a minor under the age of 14 across state lines with the intent to engage in illegal sexual activity. The indictment also alleges that Collins committed those felony offenses when he was required to register as a sex offender.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Fulton, Mo., Police Department, the FBI, the Callaway County, Mo., Prosecutor’s Office and the Callaway County Children’s Division.
Fraudsters in Eastern, North Carolina Beware! U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) has Identified Raleigh as an Expansion Site to Create a New Document and Benefit Fraud Task Force (DBFTF)Read the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that his Office is “proud to partner with Homeland Security Investigations and other top-tier law enforcement agencies to pursue benefit fraud investigations and prosecutions. Immigration fraud is a significant national problem, and we need to address it with all available resources."
Established in April 2006, these task forces, known as DBFTFs focus their efforts on detecting, deterring and disrupting both benefit fraud and document fraud. Investigators from a variety of agencies with expertise in different aspects of document and benefit fraud collaborate with U.S. Attorney’s Offices around the country to formulate a comprehensive approach in targeting the criminal organizations and the beneficiaries behind these fraudulent schemes.
“Immigration benefit fraud harms everyone who seeks to enter the United States lawfully by cluttering the system with fraudulent applications,” said Homeland Security Resident Agent in Charge Brian Padian. “Benefit fraud wastes government resources better spent on adjudicating legitimate applications. Document and benefit fraud task forces allow HSI/ICE to partner with federal, state, and local agencies to combat immigration fraud, protect the integrity of the immigration system, and punish those who profit from promoting fraudulent schemes.”
ICE partners with the U.S. Citizenship and Immigration Services (USCIS), U.S. Department of State, U.S. Department of Labor, Social Security Administration, and various state and local law enforcement agencies on these task forces.
“This task force expansion is another example of a DHS-wide effort to combat fraud” said Roxroy Collins, USCIS Atlanta District, Fraud Detection and National Security Chief. “Immigration fraud undermines the integrity and fairness of our immigration system and can provide dangerous individuals access to our country. Together with our DHS colleagues, we are committed to holding those accountable that commit fraud to enter or remain in the United States as well as on those who prey on immigrants with the false promise of services and benefits.”
“Passport and visa fraud are potential threats to our national security. United States passports and visas are among the most coveted documents in the world. Terrorists and criminals could use fraudulent passports and visas to enter the United States to commit acts of violence. Travel document fraud makes the United States more vulnerable to crime and terrorism, plain and simple,” said David Monroe, Resident Agent in Charge of the U.S. State Department’s Diplomatic Security Service.
Supporting these DBFTFs is ICE’s Forensic Document Laboratory, the only federal crime laboratory dedicated to the forensic examination of travel and identity documents, and its Cyber Crimes Center, and USCIS’ Office of Fraud Detection and National Security.
DBFTFs currently operate in 17 major cities including Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Los Angeles, Miami, New York, Newark, Philadelphia, Phoenix, Saint Paul, San Francisco, Tampa, Washington, D.C./Northern Virginia, and now Raleigh, North Carolina.
During the 2017 fiscal year alone, Homeland Security Investigations initiated more than 601 criminal investigations that resulted in 459 indictments and 445 criminal arrests, along with 254 convictions and seizures totaling $5,911,875.
Document fraud refers to the manufacture, sale, or use of counterfeit identity documents such as fake driver’s licenses, birth certificates, Social Security cards or passports – for immigration fraud or other criminal activity. Document fraud also involves efforts to obtain genuine identity documents through fraudulent means and often supports the crime of benefit fraud.
Benefit fraud refers to the misrepresentation or omission of material facts on applications to obtain immigration benefits the beneficiary is not entitled to, such as U.S. citizenship, adjustment of status, employment, or visas. Because these benefits provide the ability to freely enter, work or reside in this country, they are highly valued by illegal aliens, terrorists, and other criminals.
Using fake documents and making false statements to obtain government benefits and vote in the United States is a threat to national security and undermines the principles, integrity, and fairness of all government institutions, programs, and our national immigration system. The coordinated interagency efforts of the DBFTF in Raleigh, North Carolina, will help prevent future abuses, while enabling the identification of criminals who make false statements, and utilize and manufacture false documentation.
Four Indicted in Crack Cocaine Distribution Conspiracy Run from Inside RI State PrisonRead the Press Release
PROVIDENCE, RI – A Project Safe Neighborhoods investigation by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and members of the Rhode Island ATF Task Force has resulted in the indictment of four individuals, three of them alleged to be members or associates of the C-Block street gang, for their alleged roles in a crack cocaine distribution conspiracy run from inside the Adult Correctional Institutions.
According to information presented to the Court, it is alleged that the conspiracy operated at the direction of James Gomes, 29, an inmate at the Adult Correctional Institutions. The grand jury indictment charges Gomes, and his mother, Lisa Ellis, 50, of Pawtucket, with conspiracy, distribution of 28 grams or more of cocaine base, and three counts of distribution of cocaine base.
The indictment also charges Joshua Moore, 28, of Pawtucket with conspiracy and three counts of distribution of cocaine base, and Gerald Price, 33, of Cranston, with conspiracy and distribution of 28 grams or more of cocaine base.
According to information presented to the Court, it is alleged that Gomes, Moore and Price are members or associates of the C-Block street gang.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The investigation and resulting indictment are announced by United States Attorney Stephen G. Dambruch and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
According to information presented to the Court, it is alleged that from inside the prison, Gomes arranged crack cocaine sales to individuals outside of the prison. It is alleged that Gomes, using his prison call account and the accounts of others, placed calls to people outside of the prison directing them to distribute narcotics to certain individuals.
It is alleged that Gomes frequently called his mother, Lisa Ellis, and would direct her to establish conference calls with Moore and Price. During the conference calls, it is alleged that Gomes would direct Ellis, Moore and/or Price to sell crack cocaine to others. Some of the sales were made to an undercover law enforcement officer. After the sales, Ellis, kept a small portion of the proceeds for herself and deposit the rest of the money into Gomes’s ACI prison account.
It is alleged that members of the conspiracy were responsible for the sale of a total of approximately 112 grams of crack cocaine.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Cranston Police Department, Rhode Island State Police, and the Rhode Island Department of Corrections.
###
Former U.S. Navy Captain and Two Chief Petty Officers Latest to be Indicted in International Navy Bribery and Fraud ScandalRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – August 16, 2018
SAN DIEGO – U.S. Navy Captain (Retired) David Williams Haas was indicted by a federal grand jury yesterday on charges that he received at least $145,000 in bribes from foreign defense contractor Leonard Francis, who plied him with parties at luxurious hotels, prostitutes, top-shelf booze and food.
In separate indictments, Master Chief Petty Officer (Retired) Ricarte Icmat David and Chief Petty Officer (Retired) Brooks Alonzo Parks were charged with honest services fraud for receiving cash, luxury travel, lavish hotel suites, dining and the services of prostitutes from Francis, owner and chief executive of Glenn Defense Marine Asia. The company provided services such as tugboats, security, fuel, food, water and trash removal to U.S. Navy ships during port visits in Asia Pacific.
According to three indictments returned today in San Diego, the trio reciprocated by using their influence within the Navy’s Seventh Fleet to approve inflated invoices by GDMA, to steer ships to GDMA-controlled ports and otherwise advance the interests of Francis and GDMA. The indictment further alleges that they and their co-conspirators used their access to slip GDMA classified and proprietary U.S. Navy information, and helped GDMA recruit other U.S. Navy officers to join the conspiracy.
According to the eight-count indictment, Haas received the following bribes, among others, from Francis:
- On November 5, 2011, while Haas was director of Maritime Operations for the Seventh Fleet staff aboard the USS Blue Ridge, Francis took Haas and others to dinner at the Ritz Carlton in Tokyo, Japan, and provided them with prostitutes at a cost of more than $20,000.
- On May 11-15, 2012, Francis paid for rooms at the Shangri-La in Jakarta, Indonesia, plus dinner, entertainment at a night club, alcohol and prostitutes for Haas and others.
- On June 29-30, 2012, in Tokyo, Japan, Francis paid for a two-day party for Haas and others including transportation, dinner at Nobu Restaurant and entertainment at several hostess clubs where the services of prostitutes were provided, at a cost of more than $75,000.
- On November 30, 2012, Francis provided a car and driver for Haas and his subordinate and co-conspirator Commander Michael Misiewicz from Yokosuka, Japan, to the Ritz Carlton Hotel in Tokyo, where Francis was staying. (Misiewicz pleaded guilty and was sentenced to 78 months in prison for conspiracy and bribery in April 2016). In Francis’s room, with Haas present, Misiewicz handed Francis an envelope of classified long-range Seventh Fleet ship schedules and Seventh Fleet organization charts. The schedules were stamped “SECRET” and projected ship visits approximately 14 months in advance. These classified schedules included information related to the U.S. Navy ballistic missile defense operations in the Pacific. After reviewing the ship schedules, Francis, Haas and Misiewicz pored over the Seventh Fleet organizational chart, which Haas and Misiewicz had brought with them, in an effort to identify and evaluate potential successors to the corrupt relationship with Francis when Misiewicz departed the Seventh Fleet the following month, in December 2012. Following these discussions, Francis took Haas and Misiewicz to a strip club where food and prostitutes were provided at a cost of approximately $7,000.
A separate indictment alleges that Master Chief Petty Officer David conspired with Francis, GDMA and others to defraud the United States of David’s honest services. In exchange for breaching his fiduciary duties to the United States Navy and the American public, David received cash, hotel rooms, and prostitutes. According to the indictment, David conspired to accept things of value from Francis and other GDMA employees in exchange for David approving fraudulently inflated invoices following port visits, passing classified information to GDMA, advocating for GDMA in contracting disputes, and providing GDMA with internal U.S. Navy information concerning competitors.
Francis gave David cash in exchange for David approving GDMA’s fraudulently inflated ship husbanding invoices, the indictment alleges. After the receipt of one cash installment, on November 16, 2005, David emailed Francis thanking him for the “wonderful Christmas present.” David, thereafter, repeatedly asked Francis for cash to build his retirement home in the Philippines, among other things. During the course of the conspiracy, David received a total of approximately $40,000 in cash from Francis.
A third indictment alleges that Parks received gifts, lavish hotel suites, airline tickets and various other benefits in exchange for Parks providing sensitive and proprietary U.S. Navy information, including competitor pricing and U.S. Navy ship and personnel movement information, among others.
So far, 32 defendants have been charged and 20 have pleaded guilty in the U.S. Navy bribery and fraud scandal.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the U.S. Attorney’s Office for the Southern District of California.
DEFENDANT Case Number: 18CR3656
Captain (Retired) David Williams Haas Age 50 Kailua, Hawaii
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater
Bribery, in violation of 18 U.S.C. § 201
Maximum Penalty: 15 years in prison, a $250,000 fine
Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine or twice the gross pecuniary gain or gross pecuniary loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater
DEFENDANT Case Number: 18CR3655
Master Chief Petty Officer (Retired) Ricarte Icmat David Age 61 Tarlac Province, Philippines
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine
DEFENDANT Case Number: 18CR3657
Chief Petty Officer (Retired) Brooks Alonzo Parks Age 46 Naples, Italy
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Fraud, in violation of 18 U.S.C., Secs. 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
- On November 5, 2011, while Haas was director of Maritime Operations for the Seventh Fleet staff aboard the USS Blue Ridge, Francis took Haas and others to dinner at the Ritz Carlton in Tokyo, Japan, and provided them with prostitutes at a cost of more than $20,000.
Former Ohio Businessman Associated with Demolition Companies Sentenced to Prison for Tax CrimesRead the Press Release
A former Cincinnati, Ohio resident was sentenced today to 24 months in prison for tax and structuring crimes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, Hugo Santamaria pleaded guilty in August 2017 to structuring cash transactions to avoid currency transactions reports and conspiring to defraud the United States. Beginning in 2006, Santamaria owned and operated multiple demolition companies and conspired with his business partner in those companies to conceal income from the Internal Revenue Service (IRS) and evade their personal income taxes. In order to further his scheme, Santamaria engaged in acts of evasion such as opening bank accounts for his co-conspirator to hide income and serving as a nominee for his co-conspirator’s businesses. Santamaria also wrote, signed, and cashed numerous checks and made cash withdrawals in amounts less than $10,000 on consecutive days to evade bank-reporting requirements.
Santamaria and his co-conspirator also paid workers in cash and failed to withhold and pay over any payroll taxes. Santamaria admitted to paying himself a weekly salary from company bank accounts, and paying personal expenses including food, lodging, clothing, gym memberships, and tuition for private school out of the business bank accounts, all in an effort to avoid paying personal income taxes. Santamaria has not filed a personal tax return since 2007.
In addition to the term of imprisonment imposed, U.S. District Judge Timothy Black ordered Santamaria to serve three years of supervised release and to pay $26,213 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Richard M. Rolwing of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Norwalk Resident Pleads Guilty to Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL ANGEL ARCOS-VASQUEZ, also known as “Dimas Fernando Herrarte,” 26, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of illegally reentering the U.S. after being deported. ARCOS-VASQUEZ, a citizen of either Mexico or Guatemala, last resided in Norwalk.
According to court documents and statements made in court, ARCOS-VASQUEZ illegally entered the U.S. in or before 2014. In March 2014, he was arrested by the Stratford Police Department for a burglary offense. In April 2014, he also was charged with failure to appear. He was not encountered by U.S. Immigration and Customs Enforcement at this time.
In January 2016, ARCOS-VASQUEZ attempted to enter the U.S. three times through Texas, but was removed to Mexico after each attempt.
On January 24, 2017, ARCOS-VASQUEZ was arrested by the Stamford Police Department on charges of threatening in the first degree. On January 27, 2017, under the name of Dimas Herrarte-Ramirez, he was charged by the Norwalk Police Department with sale of a hallucinogen/narcotic and criminal possession of a firearm. ARCOS-VASQUEZ has been detained since that time, and U.S. Immigration and Customs Enforcement was notified.
Chief Judge Hall scheduled sentencing for November 14, 2018, at which time ARCOS-VASQUEZ faces a maximum term of imprisonment of two years.
In October 2017, the state charges against ARCOS-VASQUEZ were resolved and he is currently serving a state sentence of five years of imprisonment, execution suspended after two years.
Immigration authorities are in the process of determining if ARCOS-VASQUEZ is a citizen of Mexico or Guatemala.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Former FCI Ray Brook Corrections Officer Admits Accepting BribeRead the Press Release
ALBANY, NEW YORK – Carlos Ochoa, age 32, of Puerto Rico, pled guilty today to accepting a bribe in exchange for smuggling a cell phone to an inmate at Federal Correctional Institution (FCI) Ray Brook.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and Guido Modano, Special Agent in Charge of the New York Field Office of the U.S. Department of Justice Office of the Inspector General (DOJ OIG).
As part of his plea, Ochoa admitted that from approximately September 2012 to October 2012, while employed as a corrections officer at FCI Ray Brook in Ray Brook, New York, he accepted cash to smuggle a cell phone and charger to inmate Richard Coleman.
United States Attorney Grant C. Jaquith stated: “For a few hundred dollars, Ochoa sold his integrity as a federal corrections officer to a prisoner by smuggling in a cell phone. His brazen violation of prison rules risked the safety of all who worked in the prison. As thousands of officers protect us with courage and integrity, we will continue to work with the FBI, DOJ OIG, and the Bureau of Prisons to prosecute the few corrections officers who put illicit personal profit before public trust and prison security.”
“Any law enforcement officer who violates their oath to protect the community and instead takes part in criminal activity should expect the same outcome as a criminal," said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “This case serves as a reminder that no one is above the law and that the FBI is committed to working with the law enforcement community to prevent the erosion of trust that accompanies incidents like this one.”
DOJ OIG Special Agent in Charge Modano stated: “Ochoa abused a position of trust for personal gain and by doing so risked the security of FCI Ray Brook. The DOJ OIG is committed to rooting out such corruption within our federal prison system.”
On September 27, 2012, Coleman directed his then-girlfriend, Kara Coneeny, to purchase a cell phone for him to use while incarcerated at FCI Ray Brook, a medium-security federal prison in Essex County that houses more than 700 inmates. On October 1, 2012, Coleman told Coneeny that an employee at FCI Ray Brook would smuggle the phone into the prison for money. Coleman directed Coneeny to contact Kia Barnes, a friend of Coleman’s cellmate, Nathaniel Bernard.
On October 6, 2012, as directed by Coleman, Coneeny purchased an iPhone 4S and iPhone chargers. On October 17, 2012, Coneeny withdrew $500 cash from her account at an ATM and on October 18, 2012, Coneeny activated the iPhone and withdrew another $400 cash from her account.
On October 19, 2012, Coneeny drove to Saranac Lake, New York, met with Barnes, and gave Barnes the iPhone and at least $600 cash. On October 21, 2012, Barnes met with Ochoa and gave him the iPhone and cash.
On October 21, 2012, Ochoa smuggled the iPhone into FCI Ray Brook and gave it to Coleman and Bernard, while keeping the cash. Officers found the cell phone on March 8, 2013.
Ochoa faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI, the U.S. Department of Justice Office of the Inspector General, and the U.S. Bureau of Prisons, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
In U.S. District Court for the District of Puerto Rico, Ochoa faces unrelated charges of bribery, providing contraband in prison, and gun and drug charges. He is innocent of those charges unless and until proven guilty.
Fifteen Prosecuted for Illegal Reentry in JulyRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that 15 individuals were prosecuted in July by his office for illegal reentry into the country after having been deported and removed. All defendants convicted of “Illegal Reentry” are subject to deportation proceedings following their sentences.
Eleven individuals were indicted by a Grand Jury on July 12, 2018 for “Illegal Reentry”. An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. Those indicted were:
1. JESUS ALONSO-JAIMES, age 42, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on December 7, 2016 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Alonso-Jaimes was found unlawfully in Athens-Clarke County, Georgia on July 2, 2018. If convicted, Mr. Alonso-Jaimes faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Tamara Jarrett.2. JESUS BELMONTES-GUDINO, age 40, a citizen of Mexico is charged with Illegal Reentry after being deported and removed from the United States on May 4, 2013 and March 2, 2017 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Belmontes-Gudino was found unlawfully in Terrell County, Georgia on April 25, 2018. If convicted, Mr. Belmontes-Gudino faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Jim Crane.
3. CUTBERTO CHARLES-VALERO, age 46, a citizen of Mexico is charged with Illegal Reentry after being deported and removed from the United States on August 23, 2013 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Charles-Valero was found unlawfully in Oconee County, Georgia on June 14, 2018. If convicted, Mr. Charles-Valero faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Kim Easterling.
4. RICARDO GARFIAS-TINOCO, age 38, a citizen of Mexico, is charged in a two-count indictment. In Count One, he is charged with the offense of Illegal Reentry after being deported and removed from the United States on July 30, 2003 and August 28, 2007 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Garfias-Tinoco was found unlawfully in Athens-Clarke County, Georgia on June 14, 2018. If convicted of Count One, Mr. Garfias-Tinoco faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both. In Count Two, he is charged with the offense of Possession of a Firearm by an Illegal Alien. If convicted of Count Two, Mr. Garfias-Tinoco faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both.
The case was investigated by the Homeland Security Investigations, and it is being prosecuted by Assistant U.S. Attorney Kim Easterling.5. MIGUEL GUZMAN-BERNAL, age 22, a citizen of Guatemala, is charged with one (1) count of Illegal Reentry after being deported and removed from the United States on December 4, 2015 and January 26, 2017 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Guzman-Bernal was found unlawfully in Harris County, Georgia on June 6, 2018. If convicted, Mr. Guzman-Bernal faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Crawford Seals.6. JOSE FRANCISCO, age 43, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on June 9, 2011 and June 4, 2013 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Francisco was found unlawfully in Lowndes County, Georgia on June 5, 2018. If convicted, Mr. Francisco faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Sonja Profit.7. ELIAS LOPEZ-GOMEZ, age 33, a citizen of Guatemala, is charged with Illegal Reentry after being deported and removed from the United States on July 30, 2003 and July 18, 2012 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Lopez-Gomez was found unlawfully in Butts County, Georgia on June 8, 2018. If convicted, Mr. Lopez-Gomez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Paul McCommon.8. LUIS MALAGON-GALVAN, age 40, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on June 4, 2015 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Malagon-Galvan was found unlawfully in Colquitt County, Georgia on May 22, 2018. If convicted, Mr. Malagon-Galvan faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Robert McCullers.
9. CARLOS MENDEZ-RAMIREZ, age 38, a citizen of Guatemala, is charged with Illegal Reentry after being deported and removed from the United States on March 30, 2015, September 18, 2015 and April 29, 2016 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Mendez-Ramirez was found unlawfully in Berrien County, Georgia on March 18, 2018. If convicted, Mr. Mendez-Ramirez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Julia Bowen.
10. ABEL MENDOZA-SANCHEZ, age 40, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on March 30, 2017 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Mendoza-Sanchez was found unlawfully in Muscogee County, Georgia on February 14, 2018. If convicted, Mr. Mendoza-Sanchez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Melvin E, Hyde, Jr.
11. JAVIER PENA-CASAS, age 41, a citizen of Mexico, is charged with Illegal Reentry after being deported and removed from the United States on February 23, 2008, October 31, 2015 and May 3, 2016 and returning without the consent of the Attorney General or Secretary for Homeland Security to re-apply for admission. Mr. Pena-Casas was found unlawfully in Madison County, Georgia on June 6, 2018. If convicted, Mr. Pena-Casas faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both.
The case was investigated by the Immigration and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Kim Easterling.
Two individuals pled guilty to the charge of Illegal Reentry in July. Those who pled guilty are:
JUAN PEZA-RAMIREZ a/k/a Jose Hernandez-Saldana, a citizen of Mexico, entered a guilty plea to Illegal Reentry on July 31, 2018, before U.S. District Court Judge Tillman E. Self, III. Mr. Peza-Ramirez was indicted on the charge on April 10, 2018 after being removed and deported from the United States on January 19, 2007, October 21, 2011 and April 24, 2012 and returning without the consent of the Attorney General of the United States or the Secretary for Homeland Security to re-apply for admission. He was found in Houston County unlawfully on February 15, 2015. Sentencing is set for October 16, 2018. Mr. Peza-Ramirez faces a maximum sentence of ten (10) years in prison, a $250,000 fine, or both. This case is being prosecuted by Assistant U.S. Attorney Elizabeth S. Howard.
ARISTEO RAMIREZ-HERNANDEZ, a citizen of Mexico, entered a guilty plea to Illegal Reentry on July 10, 2018 before Senior U.S. District Court Judge C. Ashley Royal. Mr. Ramirez-Hernandez was indicted on the charge on May 9, 2018 after being removed and deported from the United States on July 31, 2014, September 19, 2014 and December 30, 2014 and returning without the consent of the Attorney General of the United States or the Secretary for Homeland Security to re-apply for admission. Mr. Ramirez-Hernandez was arrested for Battery and Family Violence/Battery in Athens-Clarke County on May 7, 2017 and determined to be in the United States illegally. Sentencing is set for September 5, 2018. Mr. Ramirez-Hernandez faces a maximum sentence of two (2) years in prison, a $250,000 fine, or both. This case is being prosecuted by Assistant U.S. Attorney Peter D. Leary.
Two individuals were sentenced for Illegal Reentry in July. Those who were sentenced are:
FRANCISCO BUESO, a citizen of Honduras, and EDY EDWIN SOLIS-LOPEZ, a citizen of Guatemala, were sentenced for Illegal Reentry by Senior U.S. District Court Judge C. Ashley Royal to time served on July 11, 2018 and delivered to the Bureau of Immigration and Customs Enforcement for deportation proceedings and ordered not to re-enter the United States unless they obtain legal means of entry. The pair was discovered in a van in Franklin County with six others on February 15, 2018. Mr. Bueso had previously been removed and deported on October 31, 2017, and Mr. Solis-Lopez had previously been removed and deported on January 19, 2006. This case is being prosecuted by Assistant U.S. Attorney Peter D. Leary.
Questions concerning these cases should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Ewa Beach Man Sentenced to 88 Months for Fireworks, Methamphetamine ChargesRead the Press Release
HONOLULU – Malcolm Militante, 51, formerly a resident of Ewa Beach, Hawaii, was sentenced yesterday to 88 months’ imprisonment for possession of explosives, namely display fireworks, and for possession with intent to distribute methamphetamine. As part of his sentence, Militante must pay $2,966.60 in restitution to Hawaii Explosives & Pyrotechnics (HEP), the company from which Militante stole the fireworks.
U.S. Attorney Kenji M. Price stated that, according to court documents and information presented in court, HEP produces commercial fireworks shows, including the Friday night fireworks show at the Hilton Hawaiian Village in Waikiki. On November 25, 2016, HEP reported that the company truck had been stolen, and HEP’s storage bunker, which had contained display and general use fireworks, fireworks supplies, and equipment, had been burglarized. The next day, the Honolulu Police Department received an anonymous tip that Militante possessed the stolen fireworks at a residence in Ewa beach that he shared with his mother. HPD officers searched the residence, found the stolen fireworks, and seized them. Militante was later indicted for stealing the fireworks from HEP and for being a convicted felon in possession of explosives, namely the fireworks. On November 9, 2017, Militante was arrested on those charges. At the time of the arrest, HPD recovered a backpack containing about 29 grams of methamphetamine, a digital scale, other drug paraphernalia, and $6,000 in cash. Militante was later indicted in a separate case for possessing the 29 grams of methamphetamine with the intent to distribute it.
On January 16, 2018, Militante pleaded guilty to possession of explosives, namely display fireworks, and possession with intent to distribute methamphetamine. The two cases were joined for purposes of sentencing. U.S. District Judge Derrick K. Watson, imposed a sentence of 88 months to be followed by a five-year term of supervised release. In imposing sentence, Judge Watson noted that possession of display fireworks is inherently dangerous. He further stated that, while Militante did not attempt to modify or destroy the fireworks, the possession of them in an unsecured place like his residence, which he shared with his mother, put them both at risk.
The case was jointly investigated by the Honolulu Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Marshall H. Silverberg.
Ethiopian Human Rights Abuser Arrested for Fraudulently Obtaining U.S. CitizenshipRead the Press Release
A naturalized U.S. citizen residing in Alexandria, Virginia, was arrested today by special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after being indicted on a felony charge of having fraudulently obtained U.S. citizenship.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Agent in Charge Patrick J. Lechleitner of HSI Washington, D.C made the announcement.
Mergia Negussie Habteyes, 58, is charged in an indictment, which was returned by a grand jury for the Eastern District of Virginia on Aug. 14, alleging that Negussie told a series of lies to U.S. immigration authorities in the course of obtaining authority to enter the United States as a refugee, subsequently obtaining lawful permanent-resident status, and ultimately obtaining U.S. citizenship. Specifically, the indictment asserts that, when he applied for naturalization in the United States, Negussie falsely stated that he never persecuted persons because of their political opinion, and he failed to disclose that he had committed a crime or offense for which he was not arrested. In fact, according to the indictment, Negussie served as a civilian interrogator in the Higher 3 prison in Ethiopia in the late 1970s, during a period known as the Red Terror. In that role, Negussie is alleged to have participated in the persecution, through brutality, of individuals imprisoned because of their political opinion. Additionally, Negussie falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits.
Negussie’s initial court appearance is at 2:00 p.m. before U.S. Magistrate Judge Michael S. Nachmanoff of the Eastern District of Virginia.
“Negussie allegedly concealed his role in persecuting Ethiopian prisoners for their political opinions during that country’s so-called Red Terror period when he applied for, and ultimately obtained, U.S. citizenship,” said Assistant Attorney General Benczkowski. “As this case demonstrates, the Justice Department will not allow the United States to become a safe haven for human rights violators, and we will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”
“Negussie sought to outrun his past by allegedly employing deception to fraudulently obtain United States citizenship,” said U.S. Attorney G. Zachary Terwilliger. “This indictment reflects the government’s dedication to investigating and prosecuting criminal immigration cases, including those involving alleged human rights violators.”
“The persecution of individuals for their political opinion and expression violates one of our most basic and foundational tenets as a nation,” said HSI Special Agent in Charge Lechleitner. “We will not allow human rights violators to use lies, fraud and deceit to exploit our laws.”
If convicted, Negussie faces up to 10 years in federal prison. Conviction would also result in automatic revocation of Negussie’s U.S. citizenship as well as likely removal to Ethiopia.
The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by HSI with the support of the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC is comprised of ICE HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, FBI’s International Human Rights Unit and DOJ’s Human Rights and Special Prosecutions Section (HRSP).
The case is being jointly prosecuted by Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Alexander Blanchard of the Eastern District of Virginia.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Esteban Santiago-Ruiz Sentenced to Life in Prison in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
Esteban Santiago-Ruiz (Santiago) was sentenced today to life in prison by United States District Judge Beth Bloom, after previously pleading guilty to charges of committing acts of violence at an international airport resulting in five deaths and serious injuries, in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
“While nothing can ever heal the wounds inflicted by the defendant’s unspeakable and horrific acts of violence, we hope that the life sentence imposed today provides at least some sense of justice for the victims and their loved ones,” said U.S. Attorney Benjamin G. Greenberg. “Though we all hope that such tragedy never again occurs, law enforcement remains committed to making our community safer and caring for victims of crime when tragedy strikes.”
“My thoughts are with the victims, their loved ones and everyone affected by this senseless and cowardly act of violence,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “While this sentence cannot erase what happened, may it serve to demonstrate society’s commitment to honor and remember those who suffered that day.”
“Since this horrible tragedy first occurred, my prayers have remained with the families,” Sheriff Scott Israel said. “Though this sentencing won’t change the outcome, I hope everyone affected by this killer’s heinous actions can find a way to move forward and heal.”
On May 23, 2018, Santiago pled guilty to five counts of committing acts of violence at an international airport causing death (Counts 1-5) and six counts of committing acts of violence at an international airport causing serious bodily injury (Counts 6-11), all in violation of Title 18, United States Code, Section 37(a)(1). Judge Bloom sentenced Santiago to five consecutive terms of life imprisonment on Counts 1-5, and consecutive terms of 20 years imprisonment on Counts 6-11.
According to court documents, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and seriously wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies. The FBI investigated the case along with the U.S. Attorney’s Office.
Mr. Greenberg commended the investigative assistance of FBI and BSO in this matter. This case was prosecuted by Assistant United States Attorneys Ricardo A. Del Toro and Lawrence D. LaVecchio.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eighth Circuit Casts Doubt on Medtronic’s Transfer Pricing MethodRead the Press Release
The Court of Appeals for the Eighth Circuit issued an opinion yesterday reversing a Tax Court decision that had rejected the Commissioner’s valuation method in a closely watched transfer-pricing case, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Travis A. Greaves of the Justice Department’s Tax Division.
In Medtronic, Inc. & Consolidated Subsidiaries v. Commissioner, No. 17-1866, the Eighth Circuit held that the Tax Court had rejected the Commissioner’s transfer-pricing method, and adopted that of the taxpayer, without first engaging in the analysis required under Treasury’s transfer-pricing regulations. Because the Tax Court failed to make the necessary factual findings under those regulations, the Eighth Circuit was unable to determine whether the court “applied the best transfer pricing method for calculating an arm’s length result or whether it made proper adjustments under its chosen method.” Accordingly, it vacated the Tax Court’s order and remanded the case for further consideration by the Tax Court.
Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorneys Richard Farber and Judith Hagley, who handled the case on appeal for the government.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Eight people indicted for their roles in a conspiracy to create a methamphetamine and cocaine trafficking supply chain from Mexico to Northeast OhioRead the Press Release
Eight people were indicted in federal court for their roles in a conspiracy to create a methamphetamine and cocaine trafficking supply chain from Mexico to Northeast Ohio.
Named in the 13-count indictment are: Jesus Cota Medina, 26, of Mexico; Deon Johnson, 48, of Cleveland; Michelle Dailey, 44, of Cleveland; Shauheen Sohrabi, 32, of Akron; Joseph Terlizzi, 28, of Bedford; Tyrone Rogers, 36, of Maple Heights; Hector Manuel Ramos-Nevarez, 26, of Mexico, and Gilbert Treviso-Garcia, 24, of Mexico.
All eight are charged with conspiracy to manufacture and possess with intent to distribute methamphetamine. Terlizzi is additionally charged with possessing a firearm in relation to drug trafficking and being a felon in possession of a firearm. Ramos-Nevarez and Treviso-Garcia are charged with interstate travel in aid of racketeering.
“Member of this group traveled from Ohio to Mexico to set up a drug supply chain and then actively plotted a murder when they believed someone robbed from them,” U.S. Attorney Justin Herdman said. “This case demonstrates that the threat posed by Mexican criminal organizations to our region is very real,”
“This indictment are yet another example of the prevalence of drugs and the demand for drugs in the Cleveland area and surrounding communities,” said DEA Special Agent in Charge Timothy Plancon. “The DEA continues our efforts to target drug traffickers.”
Johnson, while incarcerated, organized and orchestrated a plan to distribute methamphetamine in Ohio. Co-conspirators Dailey and Rogers traveled from Ohio to Mexico for the purpose of creating a drug trafficking chain of supply, organized by Johnson and Cota-Medina, according to the indictment.
Johnson, Rogers, Terlizzi and others arranged, through Sohrabi, to use a warehouse located on Old Eight Road in Boston Heights to the purpose of making crystal methamphetamine and preparing it for sale, according to the indictment.
The conspirators intended to sell enough methamphetamine to eventually begin to buy and ship large amounts of cocaine into Ohio, according to the indictment.
Dailey and Rogers traveled from Cleveland to Tucson in January 2018, then crossed into Mexico. They met with Cota-Medina on Jan. 12, and Johnson and Cota-Medina talked by phone about drug shipments to Ohio, according to the indictment.
Rogers began sending money to Cota-Medina. Ramos-Nevarez and Treviso-Garcia entered the United States on visitors’ visas in March 2018. Rogers met them in Ohio on March 21 while in regular contact with Cota-Medina and Johnson, according to the indictment.
Terlizzi talked to Rogers on March 22 about ordering a quantity of drugs. They agreed to meet and Rogers went to Terlizzi’s house on West 23rd Street in Cleveland.
On March 23, Rogers picked up Ramos-Nevarez and Treviso-Garcia from the Boston Heights warehouse and drove them to where they were staying in Aurora. The next day, law enforcement did a delayed-notice search at the warehouse and a large amount of methamphetamine as well as tools and paraphernalia used to cook the drug, according to the indictment.
Approximately eight hours later, Sohrabi called Rogers and informed him that it appeared someone broke into the warehouse. Rogers stated: “Somebody gotta die. I don’t give a (expletive) who gotta die. Somebody gotta die,” according to the indictment.
In subsequent calls, Cota-Medina, Rogers and Johnson discussed how they believed Sohrabi stole the drugs. Johnson told Rogers: “The call is made, he’s (Sohrabi) through,” according to the indictment.
Law enforcement eventually seized a total of more than 140 pounds of methamphetamine from the warehouse. It is believed to be the largest seizure of methamphetamine in Ohio history.
Terlizzi was arrested on March 26 and found to have cocaine, heroin and two firearms that he used in relation to drug trafficking. Terlizzi was prohibited from having the Ruger .380mm pistol and Smith & Wesson revolver because of a prior conviction for drug trafficking, according to the indictment.
This case was is an Organized Crime Drug Enforcement Task Force investigation led by the Cleveland DEA Task Force, which includes representatives from the Lake County Narcotics Agency, Cuyahoga County Sheriff’s Office, Euclid Police Department, Aurora Police Department, Summit County Sheriff’s Office, Boston Heights Police Department, Cleveland Heights Police Department, Cleveland Division of Police, Ashtabula County Sheriff’s Office, Ohio State Highway Patrol, Ohio BCI and U.S. Border Patrol.
It is being prosecuted by Assistant U.S. Attorney Marisa T. Darden.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Dutch National Sentenced to 17 Years for Multiple Fraudulent Investment SchemesRead the Press Release
For more than ten years, Pieter Roor, also known as Pedro Dispenza, 66, of The Netherlands, duped thousands of unsuspecting American investors into sending him money with the promise of large returns. Instead of investing the money, Roor took it for himself. The U.S. Attorney’s Office for the Southern District of Illinois today announces that Roor’s run has come to an end.
On August 16, Senior United States District Judge J. Phil Gilbert sentenced Roor to 17 years in federal prison, U.S. Attorney Steven D. Weinhoeft announced. The sentence comes on the heels of Roor’s conviction earlier this year on two counts of wire fraud and one count of conspiracy to commit wire fraud after a three-day bench trial in Benton, Illinois. In rendering the verdict, Judge Gilbert observed that the evidence the government presented against Roor was "absolutely crushing."
The evidence established that, from 1998 to 2010, Roor and his then-wife, Heleen Potman, operated a series of internet-based Ponzi schemes, which were offered to on-line consumers as high-yield investment opportunities. The schemes had various names, including Oxford Savings Club, AceInvest, MiAmigo Services, Dollar Dazzler, X-Wire, Private Clearing Brokers, the Happy Society, and We Let Your Money Grow. Some promised returns of as much as 4.2% per day, with occasional partial payouts to help string investors along. Through each iteration, as investors learned their investments were not being returned, the phony program would close and re-open under another name.
In total, the fake investment schemes landed Roor and Potman more than $2.5 million.
To conceal the illegal nature of their activity, Roor and Potman regularly incorporated businesses within the United States, as well as other countries throughout the world, including Great Britain, the Netherlands, Panama, and Belize. A multi-national investigation showed that the husband and wife duo routed investor’s money globally through multiple PayPal accounts, on-line currency accounts such as eGold and eBullion, and bank accounts in Latvia, Germany, The Netherlands, Great Britain, the United States, Belize, and Egypt. In furtherance of the scheme, Roor adopted a pseudonym, Pedro Dispenza, and obtained a Belizian passport and driver’s license in that name. One of the victims – identified in court documents as "H.D." – was a resident of Carbondale, Illinois, who invested approximately $150,000 in the scams.
Roor and Potman were both indicted in the Southern District of Illinois in 2010. While that case was pending, the pair were tried, convicted and sentenced for a host of crimes in the Netherlands. After serving their Dutch sentences, they were extradited separately to the United States to face prosecution on the American charges. In 2015, Potman pled guilty in the Southern District of Illinois to her role in the conspiracy and was sentenced to five years in prison. After serving approximately one year in federal custody awaiting the resolution of her case, Potman was transported back to the Netherlands to serve the remainder of her sentence.
In addition to his 204-month prison sentence, Roor was also ordered to pay in excess of $900,000 in restitution to his known victims and to forfeit his Dutch home and $3.2 million in fraudulent proceeds.
The investigation was conducted by the United States Postal Inspection Service, with extensive cooperation from the Dutch Fiscal Information and Investigation Service (FIOD).
Dominican National Pleads Guilty to Passport FraudRead the Press Release
BOSTON - A Dominican national illegally residing in the United States using false identities pleaded guilty today in federal court in Boston to passport fraud.
Alejandro Valera, 40, a Dominican national residing in Mattapan, pleaded guilty to knowingly making false statements in applying for a U.S. passport. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Nov. 13, 2018.
On Nov. 10, 2011, Valera, who, according to court records, has a lengthy criminal record, used the name, date of birth and Social Security number of a U.S. citizen from Puerto Rico to submit a fraudulent application for a passport. He also falsely stated that he had never used any other names or previously applied for a passport, yet, in 2002, Valera unsuccessfully applied for a passport using the same false identity.
Valera faces a sentence of no greater than 10 years in prison, up to three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Theodore Merritt of Lelling’s Major Crimes Unit is prosecuting the case.