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26 September 2018
Remarks by U.S. Attorney William M. McSwain at the NASA OIG ConferenceRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain was honored to speak yesterday at the conference of the NASA Office of Inspector General in Philadelphia, Pennsylvania. U.S. Attorney McSwain’s remarks are below.
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Thank you very much to Inspector General Paul Martin and the entire NASA OIG for inviting me to speak here today. It is truly an honor to join you.
I am blessed that the U.S. Attorney’s Office is filled with skilled, experienced prosecutors who want nothing more than to serve the public and do justice. But no Assistant U.S. Attorney can win a case without the help of an outstanding law enforcement partner. We are very thankful for our relationship with NASA OIG, and I am here today for two reasons: first, to express my appreciation for the work you do and, second, to talk about how we can build on our existing partnership and continue to do great things together.
Many federal, state, and local agencies work with our Office in the Criminal Division or the Civil Division, depending on the subject of their work and investigations. One attractive aspect of working with NASA is that you all are able to work equally well with both divisions of our Office, depending on the case, and you are able to achieve stellar results in both spheres.
Over the years, we have had a number of successful criminal prosecutions together. In one recent high-profile matter, United States v. Chaka Fattah, former Congressman Fattah misused NASA grant funds to help retire some of his campaign debt. NASA OIG assisted in this investigation, and Special Agent Michele Batignani testified at trial. With her great work, along with the work of AUSAs Paul Gray, Eric Gibson, and many other law enforcement partners, Fattah was convicted and is currently serving a sentence of 10 years in prison.
In another significant matter, United States v. Ding and Zotova, a Lehigh University professor (Mr. Ding) and his wife submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed they would conduct the research at their business, ArkLight, and would subcontract some of the work to Lehigh, where Ding was employed as a professor. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working under Ding’s supervision at his university lab. Defendants held Zotova (Ding’s wife) out to NASA as the “principal investigator,” but she never did any work on the contracts at issue. Special Agent Erik Saracino brought this case to our Office. It was initially a case that our Civil and Criminal Divisions worked together, but that our Criminal Division ultimately pursued. AUSA Greg David, now our Civil Division Chief – and a former NASA intern I might add – was cross-designated as a criminal AUSA to bring this case to trial with AUSA Liz Abrams. Thanks to the dedicated work of Special Agent Saracino and AUSAs David and Abrams, after a two-week jury trial, the jury convicted the defendants of six counts of wire fraud. Both were sentenced to time in prison.
Our Office has also had success working with NASA on the civil side. For example, in 2014, Thermacore, Inc. agreed to pay $965,000 to resolve False Claims Act allegations. Thermacore submitted essentially identical proposals to perform the same work to NASA and the Air Force under the Small Business Innovation Research (SBIR) program. It was awarded both and received payment under both contracts. Essentially equivalent research may not be funded by more than one agency and submissions under the SBIR Program must be certified as being non-duplicative. Under the SBIR Program, therefore, it is unlawful to receive funding for essentially equivalent work already funded under any government program or to falsely certify that work is non-duplicative. AUSA Veronica Finkelstein and Special Agent Erik Saracino worked to bring a fair and just result in this case.
I want to continue our strong partnership and continue to bring cases together in both the criminal and civil arenas. In my first few months as U.S. Attorney, we reorganized some parts of the Office. One of the most important things we did was to form the Affirmative Civil Enforcement Strike Force in our Civil Division. The ACE Strike Force, as it is more commonly known, will investigate and, when necessary, file lawsuits to prosecute fraud and abuse against government programs. It will work closely with criminal prosecutors to coordinate civil and criminal investigations where appropriate. The ACE Strike Force will investigate cases arising from a number of sources, including those brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. We have always had a deep bench of talented civil attorneys who all contribute to the successful prosecution of affirmative civil enforcement and will continue to do so. But with the ACE Strike Force, we will now have additional firepower to focus on these critical matters, including those brought to us by NASA OIG.
So how can we continue to bring strong cases together? Much of it comes down to maintaining open lines of communication. But it also helps to keep in mind some general considerations about how we evaluate agency referrals at the intake stage.
The first thing to keep in mind when you present cases to our Office is that we are open to exploring both criminal and civil proceedings in any given case, and we consider a range of cases—from the smaller, simpler cases to the most complex of fraud schemes. We have many tools at our disposal to stamp out fraud; the case may be appropriate for criminal investigation, civil investigation under the False Claims Act, or investigation by both divisions “in parallel” proceedings.
Along those lines, we have no minimum or threshold loss amount. We will consider any case that fits within the federal statute in play, and we understand that the deterrent impact of bringing a smaller case can be very important to an agency partner. We will take that into consideration in making a charging decision. At the same time, our Office is capable of handling the most complex white collar cases, and what we often find is that when agencies identify smaller-types of violations of agency protocol or low-level criminal conduct, it can lead to discovering other, more significant criminal conduct by the same people at the same time.
So the first takeaway here is that no case is too small to bring to our attention, and we will determine, in each case, whether the civil enforcement or criminal charging route is appropriate.
The second thing to keep in mind as you evaluate matters is related to the first point – you should consider the wide variety of different types of behavior that could potentially fall within the purview of fraud. Remember that fraud comes in many forms, limited only by the creativity (or lack thereof) of the fraudsters involved. So the fraud at issue could involve grant fraud or procurement fraud, but it just as easily could involve employee embezzlement of funds or employee theft of government property, including intellectual property.
And in any type of case, the key for us, at the intake stage, is to distinguish innocent behavior or mistakes from actions undertaken with a criminal intent to defraud. In general, investigations should center around uncovering false statements or misappropriations that demonstrate intent. For example, in cases involving procurement fraud, we might look for whether the same vendor continually wins bids. We also might look for a series of revisions to contracts’ technical specifications so only one vendor is in a position to provide those particular items. These are just a couple of examples of the types of evidence of fraud that we look for in distinguishing innocent behavior from intentionally fraudulent conduct.
So the second takeaway here is to keep an open mind in assessing matters and to look for evidence that can be viewed as establishing fraud either directly or circumstantially.
Third, though we want you to bring us all types of cases, it is equally true that cases involving a “plus factor” are of particular interest to my Office. And by “plus factor,” I mean that there is some substantial harm to a third party, or conduct that is particularly egregious and ongoing. So, for example, if you discover fraudulent conduct that, in turn, could raise safety concerns that impact third parties, as can happen when there is fraud that affects the validity of data or scientific research that others are relying upon, that sort of conduct is particularly concerning. Also, a long-standing pattern of fraud or abuse is often worthy of scrutiny.
And finally, in terms of what you, as agents, can do, it is important to know that there is a tremendous benefit to proactive agency intervention. We saw that in the Thermacore investigation. That investigation was prompted by NASA’s initiative to identify potential fraud in its SBIR contracts. But even beyond audit activities, it is important to be alert to the various additional sources of useful information to build a case, including tips from outside resources and employee exit interviews – to name just two potential sources of information.
In sum, my Office is proud of our past work with you, and we are excited about our future collaboration. Thank you for your partnership, and again, thank you for having me here today.
Remarks by U.S. Attorney William M. McSwain at the Allentown Police Academy GraduationRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain was honored to speak last week at the Allentown Police Academy Graduation of the 102nd Police Training Class in Allentown, Pennsylvania. U.S. Attorney McSwain’s remarks are below.
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Thank you very much to Mayor Ray O’Connell, Chief of Police Tony Alsleben, Assistant Chief Stephen Vangelo, and the entire Allentown Police Academy for inviting me to speak here today. It is truly an honor to be here with you today on this very special occasion.
First and foremost, to the 102nd Police Training Class – congratulations on a job well done! You have spent the past six months working incredibly hard, day in and day out, to achieve your dreams, all with the goal of getting to this moment. There are not many days in your life that you know for certain you will remember for decades to come. But this is one of those days. Do not let the moment pass you by. Look around, at your classmates, at your future colleagues, and most importantly, at your families, and acknowledge to yourself what you have achieved to be sitting where you are today. Everyone here is incredibly proud of you, and you deserve another round of applause.
Throughout my life, I have always been interested in how others define their core values. In the program for today’s ceremony, the Law Enforcement Code of Ethics is printed. The first line reads, “As a law enforcement officer, my fundamental duty is to serve the community.” In my mind, a life of service is the most honorable and noble pursuit one can follow. As the Code details, you will safeguard the lives of others on a daily basis. You will protect the innocent and the vulnerable. You will follow and uphold the United States Constitution at all times, not only when it is convenient, but also when it might be most inconvenient.
It is by living the core values of law enforcement that has allowed the U.S. Attorney’s Office and police departments throughout the Eastern District of Pennsylvania, including Allentown, Bethlehem, and Easton, to achieve great success in the pursuit of justice and keeping our community safe. On the 17th anniversary of the terrorist attacks last week, I was humbled to stand in the Great Hall in the Justice Department headquarters in Washington D.C. to hear Attorney General Sessions give his remarks about the day that this country was changed forever. He recalled that first responders performed one of the most heroic rescue missions in our country’s history. The Attorney General noted that since September 11, 2001, the Department of Justice has secured the convictions of over 580 defendants for terrorism or terrorism-related charges, and he reiterated that the FBI has on-going terrorism investigations in all 50 states.
But the FBI is not pursuing these investigations in a silo. One of the most important lessons from that horrific day 17 years ago is that federal, state, and local authorities must have cross-jurisdictional partnerships to ensure that there is a continuous flow of intelligence and information to assist national security and public safety field operations. There are no separations or boundaries between federal, state and local law enforcement. We all work together to ensure the continued safety of this great nation. We can only succeed with the collaboration and partnership of each of you.
These partnerships cannot be built in a day. We all need to work together when times are good so that we know exactly what to do and who to call in times of crisis. To this end, one of my first initiatives when I began serving as U.S. Attorney was to visit all nine counties that make up the Eastern District of Pennsylvania and meet with the district attorneys and local law enforcement leaders in each of them. It is a priority of my Office to continue to foster these relationships and always keep our lines of communication open. These connections are crucial to keeping the community safe.
And this collaboration has already produced results. For example, together, we continue to fight the war against the opioid epidemic. Earlier this year, the U.S. Attorney’s Office announced the creation of the Opioid Law Enforcement Task Force, comprised of federal, state and local law enforcement partners. The Task Force is responsible for developing, implementing, and coordinating a robust prosecution response to this national health emergency, and the Task Force could not be successful without your partnership.
Together, we also continue to fight violent crime and drug trafficking on a daily basis. The Department of Justice has recently reinvigorated the Project Safe Neighborhoods program, which has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. To that end, my Office has brought many cases this year combatting violent crime and drug organizations, with the help of area police departments like yours. For example, Assistant U.S. Attorneys Kelly Fallenstein and Sherri Stephan are currently prosecuting a drug organization led by Defendant Jose Sanchez-Delgado. This organization used the U.S. Mail to bring heroin and cocaine from Puerto Rico to Allentown for distribution here. The Drug Enforcement Administration and the Allentown Police Department are working this case together, with
Officer Evan Weaver and Detective Randy Fey playing a leading role as FBI Task Force Officers. A total of ten defendants were indicted and charged with distributing up to 25 kilograms of cocaine. Six of these defendants have pled guilty and the rest are working their way through the criminal justice system.
Another great example of working together is Allentown Police Detective Damian Murray, who also serves as a DEA Task Force Officer, and was named the DEA Task Force Officer of the Year for the entire Eastern District of Pennsylvania. But that is nothing new for this Department. Two years ago, in 2016, Allentown Police Sergeant Christopher Diehl was also named the DEA Task Force Officer of the Year.
I could go on and on about our successful pursuits together. It is by living by our cores values and the code of ethics that we will pursue challenging investigations, succeed in stopping crimes, and hold the responsible parties accountable. And I know that each of you will have many successes. But that does not mean that this will always be an easy road.
Indeed, it is harder today than perhaps in any time in American history to be serving in law enforcement. It has become somewhat popular in certain segments of the population to come out against the police and law enforcement. And even when a police department has an honest and open dialogue with the community about this criticism, each and every one of you will live your life under a microscope. Moreover, not only are the police under scrutiny like never before, the tools of that heightened scrutiny are ever-present. Everything that you do and everything that you say can be posted on Facebook, tweeted, and made into a national news story in a matter of seconds.
You need to be aware of this constant drumbeat of attention. But I encourage you not to shy away from it. Instead, embrace it. Because when the media and the citizens of our community actually get the opportunity to look more closely, they get to see dedicated, hard-working police officers who are keeping our communities safe every single day.
The Law Enforcement Code of Ethics notes the challenges ahead. It states that you will keep your private life unsullied “as an example to all,” and that you will “maintain courageous calm in the face of danger, scorn or ridicule.” Make no mistake – this is placing a higher standard on you than the average citizen, even when you are off-duty. The Code of Ethics notes that you “alone” are responsible for your own standard of professional performance. That being said, I want you to look around this room at your fellow graduates. You will have greater success if you help one another in being the best officers that this community expects and deserves. You are responsible for your own conduct, but you have each other to lean on and help guide one another to become the best law enforcement officers possible.
Graduates, if you remember one thing that I say today, I want you to remember this: I want you to remember the words thank you. Thank you for your future partnership with the U.S. Attorney’s Office in pursuing justice. Thank you for your future leadership in the community and for keeping all of us safe. Thank you for the sacrifices that you will make on a daily basis because of the work that you do. I know that the hours are long, the danger is real, and the salary will never match what you deserve and what you could earn in the private sector. But we do not serve for the pay or the glory. We serve because there is no greater purpose in this life than to serve others.
But our graduates today are not the only ones in this room who serve. To all of the family members here today supporting a police graduate – can you please stand up? I want all of the husbands and wives, children, mothers and fathers, sisters and brothers, aunts and uncles, grandparents – and also the close friends – to please stand up. I want to thank you for your service. These graduating men and women would never have gotten here today without you. Their long hours will be your long hours. The nights and weekends, the holidays, the sacrifices that they make will be your sacrifices, as well. And I know that you will think about the dangers that they face on a daily basis, perhaps sometimes even more than they do. You serve on a daily basis. Please know that I and every other member of this community are humbled by and grateful for your sacrifice and your service to this community and this country. Thank you for everything that you do.
In conclusion, I say to everyone here – on your longest, hardest, most challenging days, do not give up. You are on a righteous path. Remember that the U.S. Attorney’s Office stands beside you; we could not do our work without you. We see your service and we know your sacrifice. Remain determined in your pursuit of justice and hold your head high.
Thank you, congratulations, and God Bless you all.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Ehoni Johns, age 21, was indicted on August 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 24, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or between November 6, 2017, and January 6, 2018, Johns, a person required to register under the Sex Offender Registration and Notification Act, did fail to register and update his registration.
The charge is merely an accusation and Johns is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Johns was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Poughkeepsie Man Convicted of Robbing a Credit Union in Hinsdale, New HampshireRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that on Tuesday, September 25, 2018, a federal jury found Joseph M. Crocco, 42, of Poughkeepsie, New York, guilty of robbing a credit union after a two-day trial.
Evidence presented at trial showed that on December 21, 2017, the defendant entered the Service Credit Union branch located in the Walmart on Brattleboro Road in Hinsdale, New Hampshire. He approached a teller and gave her two notes. He then told her that he had a bomb strapped to his body and she had sixty seconds to comply with his demands. The teller gave him approximately $2,700 and he fled the store. Investigation by the New Hampshire State Police and the Hinsdale Police Department ultimately traced the defendant to Poughkeepsie where detectives from the City of Poughkeepsie Police Department identified the defendant in images taken from the credit union’s security cameras.
Crocco will be sentenced on January 3, 2019.
“Robberies of banks and credit unions are violent and dangerous crimes,” said U.S. Attorney Murray. “In order to protect public safety, we work closely with our law enforcement partners to prosecute these crimes and ensure that our community is safe. I want to thank the law enforcement agencies who participated in this investigation. Their excellent cooperation resulted in the successful prosecution of this defendant.”
“By threatening to blow himself up and instilling unnecessary fear in the tellers, Mr. Crocco jeopardized the safety of bank employees, customers, and other members of the community,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI is grateful for the strong partnerships we share with our law enforcement partners who worked collaboratively to bring this man to justice. We’d also like to thank the jurors for their service, and for returning a guilty verdict in this case.”
This matter was investigated by the Federal Bureau of Investigation, the Hinsdale Police Department, the New Hampshire State Police, the Brattleboro, Vermont Police Department, and the City of Poughkeepsie, New York Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Dronzek and Charles Rombeau.
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Polk County Man Sentenced to More Than Five Years in Federal Prison for Firearms OffenseRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Kenton Buddy Campbell (34, Lakeland) to 5 years and 10 months in federal prison for possessing firearms and ammunition as a convicted felon. The court also ordered Campbell to forfeit two firearms and ammunition. He had pleaded guilty on June 20, 2018.
According to court documents, law enforcement officers identified Campbell’s residence as a location that was being used to facilitate the sale of narcotics. The Lakeland Police Department executed a search warrant at Campbell’s residence and found that he had been sleeping on the living room floor next to two loaded firearms. During the search, officers seized more than 220 grams of marijuana, along with codeine, oxycodone, cocaine, digital scales, and cash bundled in small denominations. Campbell was arrested on state charges and released from state custody pending trial.
Shortly after his release, Campbell returned to his home and continued selling narcotics. The Lakeland Police Department obtained a second search warrant for the residence, seized more narcotics and cash, and arrested Campbell on additional charges.
At the time, Campbell had multiple prior felony drug convictions and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Lakeland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Pinellas County Man Pleads Guilty to Stealing Millions by Using Stolen Identities—And Attempted Bank RobberyRead the Press Release
Tampa, Florida – Jason Peter Kendall (36, Seminole) has pleaded guilty to one count each of bank fraud, securities counterfeiting, aggravated identity theft, and attempted bank robbery. Kendall faces a maximum penalty of 30 years in federal prison for the bank fraud, up to 20 years for the attempted bank robbery, up to 10 years for the counterfeiting, and a mandatory consecutive term of two years for the aggravated identity theft. A sentencing date has not yet been set.
According to the
plea agreement , Kendall stole the personal identifying information of various individuals and opened securities-trading accounts in his name and the names of his identity theft victims. He then funded those accounts by stealing account information and impersonating accountholders to gain access to bank accounts held by individuals and businesses in Florida and across the country, directing those banks to wire funds into the trading accounts that he controlled. Over several months in 2016, Kendall transferred more than $3 million of victims’ money into accounts that he controlled before his frauds were discovered.Then, on September 20, 2017, Kendall entered a BB&T Bank in Seminole and attempted to rob it. After a teller activated a silent alarm to alert other employees to the robbery, Kendall fled without obtaining any money.
This case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Philadelphia Woman Pleads Guilty to Two Counts of Sex Trafficking of MinorsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Shyniquah Lightner, 26, of Philadelphia, pleaded guilty today to two counts of sex trafficking of a minor.
Between July 2017 and September 2017, the defendant operated a prostitution ring in Philadelphia, and co-defendant Malik Hudson assisted Lightner in the operation. Lightner recruited females to work as prostitutes in this illegal business, and then created Internet advertisements in which she marketed various females as available for purchase for purposes of prostitution. These advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting. Two of the females Lightner recruited and advertised were minors under 18 years of age.
“The defendant chose to recruit and sell women for money,” said U.S. Attorney McSwain. “The U.S. Attorney’s Office remains committed to aggressively investigating and pursuing cases involving the sex trafficking of minors.”
“HSI Philadelphia is pleased that the newly formed multiagency Anti-Trafficking Coalition worked jointly on this investigation, and we look forward to expanding our partnerships with private and public entities to combat human trafficking,” said Marlon V. Miller, special agent in charge of HSI Philadelphia.
“We are privileged to have collaborated with our Human Trafficking Task Force partners in the investigation, arrest, and successful prosecution of Shyniquah Lightner,” said Philadelphia Police Commissioner Richard Ross. “As a result of this collective effort, a child predator has been brought to justice. We look forward to replicating this outcome, as we continue to focus our collective investigative efforts on those who target our most vulnerable communities.”
Lightner faces a mandatory minimum sentence of 10 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Homeland Security Investigations (HSI), the Philadelphia Police Department Special Victim’s Unit (SVU) and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali. This case is part of the Philadelphia Anti-Human Trafficking Task Force. Members of the joint task force include the HSI Philadelphia, the Philadelphia Police Department’s SVU, the Philadelphia District Attorney’s Office Family Violence & Sexual Assault Unit, the Federal Bureau of Investigation, the Salvation Army and the United States Attorney’s Office for the Eastern District of Pennsylvania. The task force brings together the expertise, training, experience, and law enforcement authorities of the partnered agencies to help identify human traffickers, and prosecute them while also protecting and aiding survivors.
Park City Man Pleads Guilty to Brandishing Gun During RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Wednesday to brandishing a gun during a robbery at a local credit union, U.S. Attorney Stephen McAllister said.
Mack W. Colvin, Jr., 32, Park City, Kan., pleaded guilty to one count of brandishing a firearm during a crime of violence. In his plea, he admitted that on Dec. 19, 2017, he robbed the Wheat State Credit Union at 1400 S. Oliver. He pointed a firearm at tellers and demanded money. According to court records, an employee got the tag number of the car he was driving and police used the information to locate Colvin and arrest him.
Sentencing is set for Dec. 17. Both parties have agreed to recommend a sentence of seven years in federal prison.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
Pair from Warren indicted for straw purchases of firearmsRead the Press Release
Two people from Warren were named in a nine-count federal indictment for their roles in the straw purchase of firearms.
Constance Derubba, 76, and Allen Reynolds, Jr., 35, were each indicted on four counts of making false statements during the purchase of a firearm. Reynolds also faces five additional counts of being a felon in possession of a firearm.
On four different occasions, Derubba knowingly made false and fictitious statements in relation to the purchase of firearms. She was counseled, aided and abetted by Reynolds in these purchases. She falsely stated she was the purchaser of the firearm when, in fact, she was purchasing the firearms for Reynolds, according to the indictment.
Reynolds at various points possessed a Smith & Wesson 5.56-caliber rifle, a Glock .40-caliber pistol, another Glock .40-caliber pistol, a North American Arms .22-caliber revolver, and another Smith & Wesson 5.56-caliber rifle, despite a previous conviction for possession of cocaine, according to the indictment.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This cases is being prosecuted by Assistant U.S. Attorney Jason Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Psychologist and His Wife Plead Guilty to Defrauding Wyoming MedicaidRead the Press Release
Dr. John R. Sink, Jr., who is a Ph.D. psychologist, and his wife Diane M. Sink pled guilty on September 25, 2018 before Federal District Court Judge Alan B. Johnson in federal court in Cheyenne to making false statements to Wyoming Medicaid as part of a scheme to fraudulently bill Medicaid for alleged mental health services. U.S. Attorney for the District of Wyoming Mark A. Klaassen, whose office prosecuted the case, announced the guilty pleas.
According to court documents, the Sinks operated a psychological practice in Cheyenne, Wyoming. Between February 2012 and December 2016, the Sinks submitted to Wyoming Medicaid over $6.2 million in bills for alleged group therapy, which consisted of activities that did not qualify as group therapy under Medicaid rules. The Sinks knew their bills contained material false statements because the services provided by the Sinks did not qualify as group therapy, the hours billed did not accurately report the time each Medicaid beneficiary was actively participating in any activities, and the Sinks were not using up-to-date treatment plans to guide each Medicaid beneficiaries treatment as required by Wyoming Medicaid. The Sinks also submitted falsely backdated treatment plans to Wyoming Medicaid when the program audited the Sinks’ business in May 2016. The Sinks made these false statements knowing that Wyoming Medicaid would not pay for the alleged group therapy if the program knew the true nature of the services being provided by the Sinks, and to conceal their fraudulent billing scheme.
"Health care fraud is a serious crime that harms all of us through higher taxes and insurance premiums. The Sinks’ guilty pleas show that the United States government will investigate, prosecute, and punish the criminals who attempt to defraud our health care system," said U.S. Attorney Mark A. Klaassen.
"Today’s guilty pleas send a strong message to anyone considering engaging in health care fraud," said Federal Bureau of Investigation, Denver Regional Office, Special Agent in Charge Calvin Shivers. "The FBI will continue to work with the U.S. Attorney's Office in Wyoming to hold individuals who commit health care fraud, at the expense of the U.S. government and hardworking taxpayers, accountable for their actions."
The Federal Bureau of Investigation and the Wyoming Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorney Eric Heimann of the U.S. Attorney’s Office for the District of Wyoming and Special Assistant United States Attorney Travis Kirchhefer of the Wyoming Medicaid Fraud Control Unit prosecuted the case.
Dr. John R. Sink, Jr., and Diane M. Sink are scheduled for sentencing on December 4th, 2018 in Cheyenne, Wyoming.
Suspected fraud against Medicaid or Medicare can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) and the agency’s website https://oig.hhs.gov/fraud/report-fraud/. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit their website at http://ag.wyo.gov/medicaid-fraud-control-unit.
North Haverhill Woman Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Amy Reardon, 33, of North Haverhill, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 14, 2018, the defendant intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 140 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed the defendant’s vehicle arrive and depart the area.
The agents informed a New Hampshire State Trooper patrolling Interstate Route 93 about their surveillance observations. The trooper stopped the vehicle for a traffic violation and identified the driver and Reardon as the sole passenger in the vehicle. During questioning by the trooper, Reardon admitted that she had fentanyl in her possession and later was found to have approximately 143 grams of fentanyl.
Reardon is scheduled to be sentenced on January 4, 2019.
“Fentanyl is a deadly drug that is causing untold damage throughout the Granite State,” said U.S. Attorney Murray. “As this investigation shows, the law enforcement community is working together to identify and prosecute those who are bringing fentanyl into our state.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Newark Man Charged with Armed RobberyRead the Press Release
NEWARK, N.J. – A Newark man appeared in federal court today on charges that he allegedly attempted to rob a city barbershop in May 2018, U.S. Attorney Craig Carpenito announced.
Philip K. Hedgespeth, 43, is charged by complaint with one count of Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. Hedgespeth made his initial appearance today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained without bail.
According to the complaint:
On the evening of May 1, 2018, Hedgespeth entered a barbershop in Newark and attempted to rob it, brandishing a firearm at an employee. He tried to shoot the gun in the employee’s direction, but the weapon malfunctioned. The employee and an off-duty Newark police officer then attempted disarm Hedgespeth, but Hedgespeth was able to exit the barbershop. While standing in front of the barbershop, Hedgespeth pointed his weapon at the officer, who shot Hedgespeth in the face. Hedgespeth fled the scene in a Dodge Challenger. He was apprehended by Newark police officers after exiting the vehicle and leading them on a brief chase on foot. At the time of his arrest, Hedgespeth was in possession of a handgun. Video surveillance recorded Hedgespeth entering the barbershop and attempting to conduct the robbery.
The count of Hobbs Act robbery carries a maximum potential sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, Newark Field Division; the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jamel Semper of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
New Orleans Man Sentenced to Federal Prison for Conspiracy to Engage in the Sex Trafficking of a MinorRead the Press Release
United States Attorney Brandon J. Fremin announced that Chief U.S. District Judge Shelly D. Dick sentenced UDRAKA ROBERTS-BEY, age 28, of New Orleans, Louisiana, to 105 months in federal prison following his conviction of conspiracy to engage in sex trafficking of a minor. The Court further sentenced ROBERTS-BEY to five years of supervised release following his term of imprisonment.
ROBERTS-BEY and another conspired to recruit and induce a 15-year-old female to engage in prostitution and benefit financially from their pay-for-sex enterprise at locations in Baton Rouge and New Orleans. ROBERTS-BEY promoted their prostitution business by using the website “backpage.com” to post classified advertisements in the Baton Rouge Female Escorts section for commercial sex acts.
U.S. Attorney Fremin stated, “This conviction and sentence reflects how seriously we in the federal system treat these types of despicable acts. The message is simple: Those who prey upon minors in an effort to lure them into prostitution and human trafficking will be dealt with harshly by my office. I commend the outstanding efforts of the prosecutors and our federal, state and local partners who collaborated on this very important matter.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the FBI New Orleans Division, East Baton Rouge Sheriff’s Office, and Louisiana State Police, with assistance from the East Baton Rouge District Attorney’s Office and U.S. Department of Homeland Security – Homeland Security Investigations. The criminal case is being prosecuted by Assistant United States Attorney Paul L. Pugliese and Assistant District Attorney Steve Danielson.
Mobile County Man Sentenced to 60 Months in Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge William H. Steele sentenced Russell Curtis Odom on September 18, 2018 to serve a term of imprisonment of 60 months followed by 4 years of supervised release for possession with the intent to distribute methamphetamine in violation of Title 21 USC § 841(a)(1). The defendant previously plead guilty to the offense on June 21, 2018.
On January 31, 2017, officers from the Mobile County Street Enforcement Narcotics Team (MCSENT) executed a search warrant at the defendant’s residence in Mobile County. Prior to the search warrant being executed, the officers made several controlled buys from the defendant at this location. During the search, officers recovered approximately 11. 2 grams of pure methamphetamine from the nightstand of the defendant’s bedroom. The officers also located two loaded firearms in the home.
The case was investigated by Mobile County Street Enforcement Narcotics Team and referred for federal prosecution through the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDETF) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Mobile County Man Sentenced to 41 Months in Prison for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Johnny Wilson Weaver, a 37 year old resident of Semmes, Alabama was sentenced to 41 months of incarceration for illegal possession of a Hi-Point 9mm rifle after being convicted of felony Possession of a Controlled Substance.
According to a factual statement Weaver signed in connection with his guilty plea, on June 18, 2018, on or about June 14, 2017, deputies of the Mobile County Sheriff’s Office travelled to Weaver’s residence to investigate a complaint of possession illegal drugs and child endangerment. When they arrived, Weaver greeted them at his front door. The deputies told Weaver of the complaint and Weaver responded that he had just been released from prison and he lived there with his wife and child. Deputies asked Weaver to tell them of the location of his wife and daughter. Weaver responded that they were at their grandmother’s house. Weaver then told the deputies that he was rolling a marijuana cigarette when they arrived and when he saw them, he threw the marijuana out the window. Weaver agreed to show the deputies where he threw the marijuana. While they looked for the marijuana, one deputy noticed a Hi Point, model 995, .9mm rifle with an obliterated serial number. Deputies then read Weaver his Miranda Rights. Weaver waived his rights and told the deputies that he was “holding” the rifle for a friend but refused to give the friend’s name. Weaver then admitted that he had been firing the rifle occasionally over the last week on his property. Weaver then signed a consent to search his residence. The search was not productive because the residence was in disarray.
At that time, Weaver had been convicted of at least one felony, namely, Possession of Controlled Substance, on June 20, 2016, in the Circuit Court of Mobile County, Alabama, case number CC-2015-004904.
Special agents of the Immigration and Customs Enforcement Agency (ICE) along with Mobile, Alabama County deputies investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney Gina S. Vann.
Milford Man Pleads Guilty to Robbery ChargesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Richard F. Moloney, 42, of Milford, Maine pleaded guilty yesterday in U.S. District Court to interfering with commerce by robbery and bank robbery. The charges arose from the robbery of the County Road Market in Milford and a Bangor Savings Bank branch located in Orono in June 2018.
Court records reveal that on June 10, 2018, at about 1:50 p.m., the defendant entered the County Road Market, pointed what appeared to be a dark-colored handgun at a cashier and told her to give him money. The defendant was wearing a grey hooded sweatshirt and sunglasses, and had socks on his hands and a cloth over his face. A second cashier opened the register and put the cash tray on the counter. The defendant absconded with the money.
Two days later, the defendant robbed the Bangor Savings Bank branch. He was wearing a black mask, a grey hooded sweatshirt with the hood pulled up, sunglasses with reflective lenses, jeans, and white socks on his hands. The defendant walked to the teller counter where a customer was conducting a transaction and displayed a note to the bank teller that read: “Give me all the money fast in a bag. No tracer or dye packs got a gun.” The teller gave the defendant cash from the drawer and he absconded with it.
The defendant faces up to 20 years in prison and a $250,000 fine for each robbery. The defendant will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Penobscot County Sheriff’s Office, the Old Town, Bangor and Orono Police Departments, the Maine State Police Crime Laboratory, the Maine State Police, and the FBI.
Mexican Man Sentenced to 10 Years’ Prison for Weapons SmugglingRead the Press Release
TUCSON, Ariz. – Yesterday, Luis Enrique Beltran-Beltran, 41, of Culiacan, Sinaloa, Mexico, was sentenced by U.S. Senior District Judge Cindy K. Jorgenson to 120 months’ imprisonment. Beltran had previously pleaded guilty to an indictment charging him with conspiracy to unlawfully export and aiding and abetting the unlawful possession of machine guns, grenades, and grenade launchers. Beltran had been extradited from Mexico to the United States in 2017.
Agents received information in 2011 that Beltran was trafficking military-grade weapons from the U.S. into Mexico. The investigation revealed that Beltran sought to buy and smuggle up to 10 machine guns with attached grenade launchers and 50 grenades each week. Beltran, who orchestrated his criminal activity from Mexico, also directed several other co-conspirators to smuggle over 50,000 rounds of ammunition and hundreds of high-capacity ammunition magazines. In sentencing him to the maximum sentence allowed by law, Judge Jorgenson cited the severity of Beltran’s crimes and his role as a leader of an extensive weapons-trafficking conspiracy.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Department of Homeland Security, Homeland Security Investigations. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-01470-TUC-CKJ
RELEASE NUMBER: 2018-122_Beltran
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Methamphetamine Trafficker Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge William H. Steele sentenced Paciano Rodriguez on September 18, 2018 to serve a term of imprisonment of 37 months followed by 5 years of supervised release for possession with the intent to distribute methamphetamine in violation of Title 21 USC § 841(a)(1). The defendant previously plead guilty to the offense on June 21, 2018.
During the course of the investigation, the defendant offered to sell a confidential informant methamphetamine. The defendant travelled to Birmingham to obtain the methamphetamine and then rode to Bay Minette, Alabama with the confidential informant to deliver the methamphetamine to the putative buyer. On March 1, 2018, the defendant was arrested at the location in Bay Minette where he was to deliver the methamphetamine. The defendant had approximately 232.1 grams of methamphetamine, mixture and substance, in his possession that he intended to deliver to the buyer.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Methamphetamine Trafficker Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge Callie V.S. Granade sentenced Randy Eugene Rester on September 24, 2018 to serve a term of imprisonment of 37 months followed by 4 years of supervised release for possession with the intent to distribute methamphetamine in violation of Title 21 USC § 841(a)(1). The defendant previously plead guilty to the offense on June 20, 2018.
On January 5, 2017, the Mobile County Street Enforcement Narcotics Team (MCSENT) executed a search warrant at Deleisha West’s residence on Foots Road in Mobile County and recovered approximately 576 grams of pure methamphetamine in her home and in her vehicle. West confessed to law enforcement that she was a methamphetamine dealer. West was previously charged and sentenced in federal court on December 19, 2017 to 51 months imprisonment for possessing with the intent to distribute this methamphetamine.
At the time of the search warrant West was in front of her home next to a car selling one ounce of methamphetamine to the defendant Randy Eugene Rester. This sale just coincidentally happened to be occurring at the time of the search warrant execution and was not a part of a law enforcement undercover operation. The defendant, Randy Eugene Rester, was driving the vehicle. The defendant confessed that he came to the location to pick up the ounce of methamphetamine and he confessed that he was actually brokering the one ounce methamphetamine transaction for another buyer.
The case was investigated by the Mobile County Street Enforcement Narcotics Team (MCSENT) and referred to the Drug Enforcement Administration (DEA) for prosecution. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, George F. May for the United States Attorney’s Office for the Southern District of Alabama.
Metairie Man Charged with Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PASCAL CALOGERO, III, age 59, a resident of Metairie, Louisiana, was charged today in a one-count bill of information with conspiracy to commit sex trafficking of a minor, in violation of 18 U.S.C. ' 1594(c).
According to the bill of information, on between at least May 9, 2017, and June 5, 2017, CALOGERO conspired with others to traffic a fourteen-year-old girl from Metairie, Louisiana. Specifically, J.B., a co-conspirator, met the victim on May 9, 2017 and recruited her to work for him as a prostitute. He required her to turn over all, or most, of the money she earned from prostitution to him. J.B. then created advertisements on online classified advertisement services commonly used to advertise sexual services in exchange for money, through which J.B. received telephone calls and text messages inquiring about, scheduling, and arranging prostitution dates with the victim. J.B. scheduled the time, location, and other logistics of prostitution dates with the victim. Between May 16, 2017 and May 22, 2017, J.B. transmitted sexually explicit photographs of the victim to CALOGERO via email and text message for the purpose of offering and encouraging CALOGERO to arrange a prostitution date with the victim. In addition to engaging in prostitution dates with the victim, CALOGERO occasionally drove her to prostitution dates with other individuals. On numerous occasions, he also attempted to facilitate the prostitution of the victim to multiple adult men by, among other things, transmitting sexually explicit pictures of her to them negotiating prices and arranging the times and locations of the prostitution dates, and providing his residence as the location of a prostitution date he arranged for the victim with an adult male.
If convicted, CALOGERO faces a maximum term of life imprisonment, a fine of up to $250,000.00, between 5 years and a lifetime of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s= Offices and the Criminal Division's 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.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter, and specifically the FBI New Orleans Violent Crimes Against Children Task Force, which includes members of the Jefferson Parish Sheriff’s Office, the Kenner Police Department, and the Louisiana State Police, with the assistance of the City of New Orleans Office of Inspector General. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Men from University Heights and Lorain indicted for child pornography crimesRead the Press Release
Two men from Northeast Ohio were indicted for crimes related to child pornography.
Jacob Langston Maclin, 24, of University Heights, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. Buddy Young, 30, of Lorain was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct.
Their cases are otherwise unrelated.
Maclin, in 2017, knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. Maclin also possessed an Apple iPhone 6s cell phone and a Dell Inspiron laptop computer on April 17, 2018, that contained child pornography, according to the indictment.
Young in August 2018 knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. Young knowingly possessed two cell phones that contained child pornography on Aug. 17, 2018, according to the indictment.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
Both cases are being prosecuted by Assistant U.S. Attorney Carol M. Skutnik. The Maclin case was investigated by the Department of Homeland Security Investigations. The Young case was investigated by the Federal Bureau of Investigaton.
An indictment is only 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.
Men from Toledo and Houston indicted for trafficking cocaineRead the Press Release
An indictment was filed charging Eddie J. Heckard, Jr., 32, of Toledo, and Demetrice Phillips, 21, of Houston, with trafficking cocaine.
Both men were indicted on one count of conspiracy to possess with intent to distribute cocaine and one count of possession with intent to distribute cocaine. The two men conspired on Aug. 28 to possess nearly 1,000 grams of cocaine with the intent of selling it, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Department of Homeland Security and the Toledo Police Department. It is being prosecuted by Assistant U.S. Attorneys Matthew D. Simko and Thomas P. Weldon.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Maryland Man Pleads Guilty to Federal Charge for Making Threats Timed to Anti-Violence DemonstrationRead the Press Release
WASHINGTON – Nicholas Bukoski, 19, of Crofton, Md., pled guilty today to a federal charge stemming from a series of threats that he made coinciding with a demonstration against gun violence that took place in March 2018 in Washington, D.C.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Matthew R. Verderosa, Chief of the United States Capitol Police, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Bukoski pled guilty in the U.S. District Court for the District of Columbia to a charge of transmitting threats by interstate commerce. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, Bukoski faces an estimated range of 10 to 16 months in prison and a fine of up to $55,000. The Honorable Tanya S. Chutkan scheduled sentencing for Oct. 15, 2018.
According to the government’s evidence, on March 24, 2018, three threatening messages were communicated within 20 minutes from the defendant in Maryland to locations in the District of Columbia. Two were made by Instagram direct message to offices of United States Senators. The third threat was via Bukoski’s cellular telephone to the Metropolitan Police Department’s text tip line. That threat stated, among other things, “My heart is messed up and evil, and part of me wants to see people suffer, goddammit. Anyway, good luck and Godspeed finding my presents. This will be my only message.”
Law enforcement considered the threat to the tip line as directed against the “March for Our Lives,” an event that was taking place in Washington, D.C. and attended by thousands speaking out against school shootings and gun violence. Investigators believed the word “presents” referred to explosive devices. An investigation quickly led to the identification of Bukoski on the day that the threats were made.
This case was investigated by the FBI’s Washington Field Office, the U.S. Capitol Police, and the Metropolitan Police Department. Assistance was provided by the Anne Arundel County, Md. Police Department and the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Brenda J. Johnson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
Manchester Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - David Fagan, 32, of Manchester, pleaded guilty in federal court to participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 6, 2018, Fagan intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 50 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed the defendant’s vehicle arrive. The vehicle left Massachusetts and agents followed it directly to Nashua, New Hampshire, where they stopped the vehicle. Officers later received a search warrant and recovered approximately one gram of suspected fentanyl in the car.
On March 29, 2018, agents learned that Fagan again intended to travel from New Hampshire to a location in Lawrence to purchase 50 grams of a controlled substance. Agents conducted surveillance in the area of the transaction. Investigators passed on information to the New Hampshire State Police.
A trooper later stopped the vehicle heading northbound on I-93. The trooper identified the driver as the registered owner of the car and Fagan as the sole passenger. The officer spoke to both individuals and obtained consent to search the vehicle. The trooper located approximately 50 grams of fentanyl under the hood of the car inside the air filter.
The investigation revealed that from February 23, 2018, through April 2018, Fagan ordered and purchased over one kilogram of fentanyl.
Fagan is scheduled to be sentenced on January 7, 2019.
“Fentanyl distributors are causing grave harm to our state,” said U.S. Attorney Murray. “This case is an example of how members of the law enforcement community are working together to combat the deadly threat that this drug poses to the Granite State.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Madison Man Sentenced in Methamphetamine and Money Laundering ConspiraciesRead the Press Release
United States Attorney Ron Parsons announced that a Madison, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, Conspiracy to Launder Monetary Instruments, and Use of a Fraudulent Identification Document was sentenced on September 24, 2018, by U.S. District Judge Karen E. Schreier.
Alex Lopez-Nicolas, age 24, was sentenced as follows: On the methamphetamine and money laundering conspiracies, 120 months in federal prison on each count, to run concurrent, followed by 5 years of supervised release on the methamphetamine conspiracy and 3 years of supervised release on the money laundering conspiracy, to run concurrent. He was also ordered to pay $200 to the Federal Crime Victims Fund.
On the fraudulent document charge, he was sentenced to 60 months in federal prison, to be followed by 3 years of supervised release, both to run concurrent to the sentences received on the conspiracies. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Lopez-Nicolas was indicted for using a fraudulent Permanent Resident card by a federal grand jury on January 9, 2018, and for conspiracy to distribute 500 grams or more of methamphetamine and conspiracy to launder monetary instruments by a federal grand jury on January 9, 2018. He pled guilty to all of the offenses on June 11, 2018.
On January 9, 2017, Lopez-Nicolas applied for work at a business in Madison. At that time, he provided the employer with a fraudulent Permanent Resident card as proof of his eligibility for employment.
From on or about January 1, 2017, to November 15, 2017, Lopez-Nicolas had multiple conversations with a confidential informant about setting up methamphetamine transactions with a co-conspirator. He also deposited cash from the sale of methamphetamine into several Wells Fargo Bank accounts, none of which were in his name, to conceal the source of the cash.
This case was investigated by Homeland Security Investigations, the Internal Revenue Service, the Drug Enforcement Administration, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorneys Jennifer D. Mammenga and Connie Larson prosecuted the case.
Lopez-Nicolas was immediately turned over to the custody of the U.S. Marshals Service.
Lynn Man Arrested and Charged with Bank FraudRead the Press Release
BOSTON – A Lynn man was arrested today and charged in connection with a scheme to impersonate bank customers and fraudulently withdraw money from their bank accounts.
Antonio Niati, 28, was indicted on one count of conspiracy to commit bank fraud. Niati was arrested today and will appear this afternoon before U.S. Magistrate Judge M. Page Kelley.
According to the indictment, in April 2017, Niati directed co-conspirators to conduct fraudulent transactions in victim bank accounts at a branch of Santander Bank in Dorchester. It is alleged that Niati directed a co-conspirator to impersonate bank customers by using fraudulent driver’s licenses, and recruited and paid a bank teller to facilitate the fraudulent transactions. The indictment alleges that Niati and his co-conspirators fraudulently withdrew over $640,000 from the accounts of bank customers.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of up to $1 million. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Neil J. Gallagher Jr. of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Long Island Companies and Owners Charged with Falsely Labeling Squid as OctopusRead the Press Release
A federal grand jury indicted two Long Island corporations and their owners for their scheme to falsely label seafood that was later sold across the country. The indictment accuses Roy Tuccillo Sr., 58, and his son, Roy Tuccillo Jr., 31, both of Jericho, and two of their Westbury food processing and distribution companies, Anchor Frozen Foods Inc., and Advanced Frozen Foods Inc., of importing giant squid from Peru and marketing and selling it to grocery stores as octopus. The four defendants are charged with conspiracy to commit wire fraud and violate the Lacey Act, as well as four substantive Lacey Act violations.
Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and Director James Landon of the National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement (OLE) announced the indictment today.
“NOAA’s Office of Law Enforcement is dedicated to enforcing federal marine resource laws, including the Lacey Act and its provisions on mislabeling,” said James Landon, OLE’s Director. “This investigation is a great example of how we collaboratively work with other federal partners, such as the Food and Drug Administration, to combat seafood fraud.”
Octopus and squid are distinct species of fish with great variance in their taxonomy, habitat, and physical characteristics. The U.S. Food and Drug Administration permits that food companies selling squid market it by its name or as calamari, while octopus is the only acceptable name when selling octopus. In general, octopus has a greater retail price than squid. The indictment alleges that for over three years the defendants fraudulently imported, processed, marketed, sold, and distributed over 113,000 pounds of octopus that was actually squid.
The Lacey Act prohibits submitting false descriptions of fish that were transported and sold in interstate commerce. The defendants are charged with four counts of defrauding grocery stores in New Jersey and Massachusetts.
This case was investigated by the Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement with assistance from the U.S. Food and Drug Administration. It is being prosecuted by Trial Attorney Ryan Connors and Senior Trial Attorney David Kehoe of the Justice Department’s Environmental Crimes Section.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lima man indicted for trafficking at least one kilogram of heroin and one kilogram of cocaineRead the Press Release
A Lima man was indicted in federal court for trafficking at least one kilogram of heroin and one kilogram of cocaine.
John Reed, Jr., 43, was indicted on one count of attempted possession with intent to distribute heroin and one count of one count of attempted possession with intent to distribute cocaine.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, with assistance from the Ohio State Highway Patrol. Assistant U.S. Attorney Alissa M. Sterling is handling the case.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Leader of International Investment Fraud Sentenced to 30 Years in Federal PrisonRead the Press Release
PHOENIX – On Sept. 22, 2018, James Jeffrey Hinkeldey, 66, of Scottsdale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 30 years and five months in federal prison. Earlier this year, a federal jury convicted Hinkeldey of conspiracy, wire and mail fraud, money laundering, and aggravated identity theft charges stemming from his role as one of the leaders in an $18 million investment fraud affecting 225 victims.
“Through fraud, this defendant stole the life savings from members of our community, many of whom were close to retirement; his lengthy prison sentence is well-deserved,” stated Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona. “Our office will continue to work closely with the FBI to prosecute financial predators like Hinkeldey.”
“Considering there were hundreds of victims and millions of dollars lost, it is fitting that James Hinkeldey‘s sentence is one of the highest federal white collar sentences in the District of Arizona,” said Michael DeLeon, Special Agent in Charge of the FBI Phoenix Division. “We are pleased that the defendants in this case are being held accountable for their crimes and that Hinkeldey and his co-conspirator were ordered to pay restitution to the victims. The FBI would like to thank the Arizona U.S. Attorney’s Office for their work on this case. We will continue to work with our law enforcement partners to investigate and prosecute those who commit complex financial crimes.”
From 2006 to 2012, Hinkeldey and several others solicited millions of dollars from victims for purported investment in a variety of projects and companies, including land development in Mexico, recycling companies in Las Vegas and Chicago, and distressed real estate in Phoenix. Hinkeldey and his co-conspirators promoted their fraudulent investment schemes in seminars, magazine articles, radio broadcasts, and private offering documents to give the fraudulent investments the appearance of legitimacy.
In reality, the solicitations and offering documents were riddled with false statements, including the education and experience of Hinkeldey and his co-conspirators, the true ownership of property involved in the projects, and the feasibility of the so-called guaranteed returns. Ultimately, Hinkeldey and his co-conspirators used investor funds not only to line their own pockets, but also to make Ponzi payments to create the facade of a successful business.
Late last year, Hinkeldey’s partner in the conspiracy, Jason Mogler, formerly of Phoenix, Ariz., was sentenced to 24 years and 4 months in federal prison for his role in the fraud. Hinkeldey and Mogler were also ordered to pay restitution to the victims for losses they incurred.
The investigation in this case was conducted by the Phoenix Division of the FBI. The prosecution was handled by Monica Klapper and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01118-PHX-SPL
RELEASE NUMBER: 2018-121_Hinkeldey
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Laguna Pueblo Man Sentenced to Prison for Federal Arson ConvictionRead the Press Release
ALBUQUERQUE – Brian Dyea, 30, an enrolled member of Laguna Pueblo who resides in Mesita, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in prison followed by three years of supervised release for his conviction on an arson charge.
Dyea was arrested in Dec. 2017, on an indictment charging with him arson. According to the indictment, Dyea committed the crime by setting fire to and burning a building on Laguna Pueblo in Cibola County, N.M., on June 17, 2016.
On March 5, 2018, Dyea pled guilty to the indictment and admitted that on June 17, 2016, he set fire to his father’s trailer, which was located on the Laguna Pueblo, causing thousands of dollars of damage to the trailer. Dyea further admitted that he set the fire while his father was still inside the trailer, and his father suffered minor smoke inhalation.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services and the Pueblo of Laguna Tribal Police Department and was prosecuted by Assistant U.S. Attorney Elisa Dimas.
Kalamazoo Man Sentenced to over Nineteen Years for Methamphetamine TraffickingRead the Press Release
Sentence concludes investigation and prosecution of nine-member methamphetamine distribution ring operating in Kalamazoo and Van Buren Counties
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Byerly Birge announced today that Michael Donnell Neeley, age 39, of Kalamazoo, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 235 months in prison for participating in a methamphetamine distribution ring that operated in Kalamazoo and Van Buren Counties from July 2016 to December 2017. In addition to his prison term, the Court sentenced Neeley to five years of supervised release and ordered him to pay a fine of $3,000.
Neeley, Noel Francisco Saldana, Jesus Manuel Ramirez-Luna, Thomas Lee Cowley, Sheryl Lynn Ayad, Thomas Lewillan Cowley, Jr., Justin Owen Smith, Robert Eugene Nichols, and David Leroy Strickler were charged in December 2017 with conspiracy to distribute and to possess with intent to distribute methamphetamine and various other drug and firearm charges. Neeley, the only charged co-conspirator to go to trial, was convicted by a jury on May 17, 2018. He was the last defendant to be sentenced. Judge Neff sentenced Neeley’s co-defendants earlier this year to the following:
- Noel Francisco Saldana of Hartford, Michigan: 210 months
- Jesus Manuel Ramirez-Luna of Phoenix, Arizona: 121 months
- Thomas Lee Cowley of Kalamazoo, Michigan: 136 months
- Sheryl Lynn Ayad of Kalamazoo, Michigan: one day time served plus two years of weekend confinement
- Thomas Lewillan Cowley, Jr. of Kalamazoo, Michigan: 120 months
- Justin Owen Smith of Watervliet, Michigan: 120 months
- Robert Eugene Nichols of Kalamazoo, Michigan: 36 months
- David Leroy Strickler of Galesburg, Michigan: 12 months and one day
Judge Neff determined that Neeley merited an increased sentence due to his extensive criminal history, for possessing a firearm during the conspiracy, and for committing perjury while testifying in his own defense at trial.
The conspiracy began in approximately July 2016 when Noel Saldana, the conspiracy’s leader, and Thomas Lee Cowley met Phoenix-based methamphetamine supplier Jesus Ramirez-Luna. Thereafter, Ramirez-Luna supplied Saldana with pounds of methamphetamine on a monthly basis for further redistribution throughout Kalamazoo and Van Buren Counties. Ramirez-Luna used the U.S. Postal Service and the United Parcel Service to ship methamphetamine to Saldana and his co-conspirators in west Michigan. Saldana coordinated receipt of the methamphetamine deliveries with Thomas Lee Cowley and Sheryl Ayad. After receiving the methamphetamine, Saldana distributed it to Thomas Lee Cowley, Neeley, Smith, and others for further distribution in west Michigan. The conspiracy ended in December 2017 when federal law enforcement officers arrested eight of the nine defendants on a criminal complaint and executed search warrants at eight locations tied to the conspiracy. Over the course of the investigation, law enforcement authorities intercepted more than 11 pounds of crystal methamphetamine from the mail.
"Crystal methamphetamine is a highly addictive drug that causes ruin to its users and users’ loved ones. Those that traffic in this pernicious substance justifiably face stiff prison sentences," stated Birge. "This investigation was a great example of the strong partnerships that exist among federal, state, and local law enforcement agencies in the Western District of Michigan."
"Make no mistake, this organization preyed on our communities and destroyed west Michigan neighborhoods by distributing methamphetamine and various drugs. These sentencings are a step toward disrupting the poison pushers in America," stated Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration.
"The cooperative partnership between federal, state, and local law enforcement brought the Saldana drug trafficking organization to a halt," said Patricia A. Armstrong, Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service. "The stiff sentences handed down in this case should serve as a stern warning to others that Postal Inspectors and their law enforcement partners will vigorously pursue those who criminally misuse the U.S. Mail to traffic deadly narcotics into our local communities."
"We are extremely pleased with the outcome of this case. Our partnership with the federal and state agencies has proven to be effective in removing criminals from our communities," stated Mike Kelley, Executive Lieutenant of the Kalamazoo Valley Enforcement Team. "This case proves that these partnerships provide a means to completely dismantle an entire drug trafficking organization from the street level dealers to the source of supply."
"Southwest Michigan has been hit hard by the influx of crystal methamphetamine. We are thankful for the great partnerships between law enforcement, prosecutors, and our allies in the prevention and treatment sector," stated Richard Pazder, Detective/First Lieutenant with the Southwest Enforcement Team. "Excellent cases like this one highlight our resolve to address the growing threat to our communities and our commitment to improve the quality of life for our citizens."
The investigation was led by the Drug Enforcement Administration and assisted by the U.S. Postal Inspection Service and the Kalamazoo Valley Enforcement Team (KVET) and the Southwest Enforcement Team (SWET), two state-based multijurisdictional narcotics task forces. Dubbed "Operation Crystal Misery," the investigation was part of the U.S. Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program. Established in 1982, the OCDETF Program is designed to disrupt and dismantle major drug trafficking and money laundering organizations and related criminal enterprises by leveraging the resources and unique expertise of numerous federal agencies in a coordinated attack.
Assistant U.S. Attorneys Joel S. Fauson and Stephen P. Baker handled the prosecution.
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KC Tax Preparer Pleads Guilty to $238,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer pleaded guilty in federal court today to a wire fraud scheme in which she filed dozens of fraudulent tax returns that resulted in more than $238,000 in refunds being issued to individuals who were not entitled to receive them.
Onrea Knox-Lewis, 45, waived her right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges her with one count of wire fraud.
Knox-Lewis was a self-employed tax return preparer. By pleading guilty today, she admitted that she filed income tax returns for the tax years 2012 through 2014 claiming false refunds. The fraudulent tax returns reported bogus wages, income tax withholdings and/or fraudulent dependents as well as the Earned Income Credit. In some instances, Knox-Lewis prepared and filed tax returns using stolen personal identification information.
After she filed the fraudulent tax returns over the internet, Knox-Lewis had the bogus refunds loaded onto prepaid debit cards; she utilized all, or in some cases only a portion, of the funds for her own personal expenses.
Through her scheme to defraud the IRS, Knox-Lewis prepared and filed numerous fraudulent income tax returns resulting in $238,666 in refunds being issued to individuals who were not entitled to receive them.
Under federal statutes, Knox-Lewis 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 First Assistant U.S. Attorney David M. Ketchmark. It was investigated by IRS-Criminal Investigation.
Jury Convicts Houston Man for Carjacking and Related OffenseRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 35-year-old Houston man for carjacking and discharging a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately three hours before convicting Sean Rodriguez following a less than three-day trial.
During the trial, the jury heard from victims who were carjacked at gunpoint. Both described how Rodriguez brandished a silver revolver and pointed it at them. Rodriguez had pistol-whipped the male victim, at which time the gun discharged above the man’s head.
A neighbor also provided testimony who explained how she helped the female victim after she ran to her house to call 911. The jury also heard that call.
The jury also heard from four police officers were involved in a high-speed chase after Rodriguez refused to pull over in the stolen vehicle three days later. The jury saw a helicopter video of the chase and the dash cam of one of the officers. During the chase, Rodriguez went the wrong way down streets at high rates of speed, nearly hit pedestrians and other vehicles before crashing into a family of six.
Chief U.S. District Judge Lee H. Rosenthal presided over the trial and set the sentencing for Jan. 4, 2019. At that time, Rodriguez faces up to 15 years in prison for the carjacking as well as a mandatory minimum of 10 years for the discharging of a firearm which must be served consecutively to any other prison term imposed.
The FBI, Texas Department of Public Safety, Houston Police Department, Harris County Institute of Forensic Science and Harris County Sherriff’s Office conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Britni Cooper are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jefferson Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DONALD TROSCLAIR, age 57, a resident of Jefferson, Louisiana, pleaded guilty today before United States District Judge Martin L.C. Feldman after previously being charged with receipt of images and videos depicting the sexual exploitation of children, in violation of 18 U.S.C. ' 2252(a)(2).
According to court documents, Special Agents with the Federal Bureau of Investigation (“FBI”) determined that TROSCLAIR was accessing a forum located on the internet whose singular purpose was to act as a child pornography bulletin board and website dedicated to the advertisement and distribution of child pornography and the discussion of matters pertinent to the sexual abuse of children, including the safety and security of individuals who seek to sexually exploit children online. Law enforcement officials executed a search warrant at TROSCLAIR’S residence on February 28, 2018, and seized several electronic items including a laptop computer, a desktop computer, an external hard drive, and several discs that were determined to contain images and videos depicting the sexual victimization of children.
The Federal Bureau of Investigation then conducted a forensic review of the seized devices and determined that TROSCLAIR had used the devices to search for, download, and save approximately 11,175 images and 6 videos of child pornography between April 2011 and February 2018. TROSCLAIR stored the images and videos in folders he created on his computers, external hard drive, and loose storage media, to catalogue and organize the files. The materials possessed by TROSCLAIR were of prepubescent children as young as less than three (3)-years-old and depicted the child victims engaging in “sexually explicit conduct,” as defined in 18 U.S.C. § 2256.
TROSCLAIR faces a mandatory minimum of five (5) years and a maximum term of imprisonment of twenty (20) years, a fine of up to $250,000.00, between five years and life of supervised release after imprisonment, and a mandatory $100 special assessment. Sentencing before Judge Feldman has been scheduled for December 19, 2018.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's 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.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and its Violent Crimes Against Children Task Force, including representatives from the Kenner Police Department, Jefferson Parish Sheriff’s Office, and Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
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Jacksonville Man Sentenced to More Than Four Years for Possessing Stolen Gun While on DrugsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Luis David Toledo (29, Jacksonville) to four years and nine months in federal prison for possessing a stolen firearm, possessing cocaine with the intent to distribute it, and possessing firearms while an unlawful user of a controlled substance. Toledo pleaded guilty on May 9, 2018.
According to court documents, on January 10, 2018, Toledo was driving on Southside Boulevard, in Jacksonville, when a patrol officer with the Jacksonville Sheriff’s Office observed him driving erratically and smelled marijuana coming from the vehicle. The officer pulled up next to Toledo’s vehicle and observed smoke swirling inside of the car. During a traffic stop, Toledo admitted that he had guns, cocaine, and marijuana inside of the vehicle. A search of the vehicle revealed two loaded 9mm pistols, one of which was equipped with an extended magazine, along with cocaine packaged for sale, and marijuana. Toledo told the officer that his guns were stolen, that he had intended to sell the cocaine that was in the vehicle, that he had used cocaine “minutes” before being pulled over, and that he had been smoking marijuana while driving. A records check revealed that one of the guns had been reported stolen.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jacksonville Man Sentenced to 14 Years in Prison for Federal Drug and Firearm OffensesRead the Press Release
Jacksonville, Florida– U.S. District Judge Harvey E. Schlesinger today sentenced Ronald Andrews (34, Jacksonville) to 14 years in federal prison for possessing with the intent to distribute methamphetamine and for possessing a firearm as a convicted felon. Andrews pleaded guilty on May 10, 2018.
According to court documents and evidence presented in court, on July 28, 2017, the Florida Highway Patrol (FHP) conducted a traffic stop of a rental car that Andrews was driving. Andrews’s four-year-old son was the only passenger in the car. While gathering Andrews’s license, the troopers smelled marijuana and saw remnants of a joint in the car. When it became clear that troopers intended to detain Andrews for further investigation, Andrews held his son in his arms and used him as a shield to try and push pass the troopers, eventually throwing the child at them. The child was not injured, and the troopers were able to detain Andrews before he could escape.
During a search of the car, the troopers located a loaded semi-automatic pistol and more than 200 grams of methamphetamine, as well as marijuana and hydrocodone pills. In addition, Andrews had $2,325 cash in his pocket. At the time, Andrews had previous felony convictions, including for felony battery, and therefore, was prohibited from possessing a firearm under federal law.
This case was investigated by the Florida Highway Patrol, the Jacksonville Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Frank Talbot and Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Illegal Alien Pleads Guilty to Unlawful Reentry after RemovalRead the Press Release
Gulfport, Miss. – Miguel Ayala-Guarchaj, 33, a citizen of Guatemala, pleaded guilty today before U.S. District Judge Louis Guirola, Jr., to the felony offense of unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
On August 6, 2018, a South Mississippi Metro Enforcement Team Agent, who is also a City of Gautier Police Officer, was on duty along Interstate 10 East in Jackson County. The Metro Enforcement Team is an interagency task force that patrols known smuggling routes in Jackson County including I-10. At about 7:45 a.m., the agent stopped a 2015 Toyota Corolla with a fraudulent Texas license paper tag. His training and experience as an interdiction agent led him to believe that he had interrupted an alien smuggling event in progress, and he called the U.S. Border Patrol. Two Border Patrol agents, including a fluent Spanish speaker, responded to the scene and determined that the driver had been a passenger in a vehicle that had recently been stopped by agents on I-10, although no arrests had been made.
Agents also noted multiple indicators that alien smuggling was taking place. Ultimately, the driver was arrested for transporting illegal aliens. His five passengers were arrested for being illegally present in the United States, and all were transported to the Gulfport Border Patrol Station for processing. At the Border Patrol Station, two of the five illegal alien passengers were identified as having been lawfully removed from the United States.
Ayala-Guarchaj was one of those passengers, and was positively identified through Department of Homeland Security computerized record checks including fingerprints and photographs. Using Homeland Security database queries, agents determined that Ayala-Guarchaj, was a citizen of Guatemala and an illegal alien who had been lawfully removed from the United States in 2008. Finally, agents determined that Ayala-Guarchaj had not received permission to reenter to the United States when he illegally returned in 2018.
U.S. Attorney Hurst praised the coordinated work of the United States Border Patrol, the South Mississippi Metro Enforcement Team and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Hospital Chain Will Pay over $260 Million to Resolve False Billing and Kickback Allegations; One Subsidiary Agrees to Plead GuiltyRead the Press Release
WASHINGTON – Health Management Associates, LLC (HMA), formerly a U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States. The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Charles E. Peeler for the Middle District of Georgia, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania, U.S. Attorney Sherri Lydon for the District of South Carolina, Assistant Director Robert Johnson of FBI’s Criminal Investigative Division, and Acting Assistant Inspector General for Investigations Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
HMA was acquired by Community Health Systems Inc. (CHS), a major U.S. hospital chain, in January 2014, after the alleged conduct at HMA occurred. Since July 2014, HMA has been operating under a Corporate Integrity Agreement (CIA) between CHS and the HHS-OIG.
As part of the criminal resolution, HMA entered into a three-year Non-Prosecution Agreement (NPA) with the Criminal Division’s Fraud Section in connection with a corporate-driven scheme to defraud Federal health care programs by unlawfully pressuring and inducing physicians serving HMA hospitals to increase the number of emergency department patient admissions without regard to whether the admissions were medically necessary. The scheme involved HMA hospitals billing and obtaining reimbursement for higher-paying inpatient hospital care, as opposed to observation or outpatient care, from Federal health care programs, increasing HMA’s revenue. Under the terms of the NPA, HMA will pay a $35 million monetary penalty. Under the terms of the NPA, HMA and CHS, the current parent company, agreed to cooperate with the investigation, report allegations or evidence of violations of Federal health care offenses, and ensure that their compliance and ethics program satisfies the requirements of an amended and extended CIA between CHS and HHS-OIG.
In addition, an HMA subsidiary, Carlisle HMA, LLC, formerly doing business as Carlisle Regional Medical Center, has agreed to plead guilty to one count of conspiracy to commit health care fraud. The plea agreement remains subject to acceptance by the court. Up until 2017, Carlisle HMA, LLC owned and operated Carlisle Regional Medical Center, an acute care hospital located in Carlisle, Pennsylvania. Carlisle HMA, LLC was charged in a criminal information filed today in the District of Columbia with conspiracy to commit health care fraud.
According to admissions made in the resolution documents, HMA instituted a formal and aggressive plan to improperly increase overall emergency department inpatient admissions at all HMA hospitals, including at Carlisle Regional Medical Center. As part of the plan, HMA set mandatory company-wide admission rate benchmarks for patients presenting to HMA hospital emergency departments – a range of 15 to 20 percent for all patients presenting to the emergency department, depending on the HMA hospital, and 50 percent for patients 65 and older (i.e. Medicare beneficiaries) - solely to increase HMA revenue. HMA executives and HMA hospital administrators executed the scheme by pressuring, coercing and inducing physicians and medical directors to meet the mandatory admission rate benchmarks and admit patients who did not need impatient admission through a variety of means, including by threatening to fire physicians and medical directors if they did not increase the number of patients admitted.
“HMA pressured emergency room physicians, including through threats of termination, to increase the number of inpatient admissions from emergency departments—even when those admissions were medically unnecessary,” said Assistant Attorney General Benczkowski. “Hospital operators that improperly influence a physician’s medical decision-making in pursuit of profits do so at their own peril. Where we find such conduct, the Criminal Division’s Health Care Fraud Unit, together with our Civil Division and law enforcement colleagues, will aggressively prosecute those responsible to the fullest extent of the law.”
HMA also agreed to pay $216 million as part of a related civil settlement. The civil settlement resolves HMA’s liability for submitting false claims between 2008 and 2012 as part of its corporate-wide scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries over the age of 65. The government alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting. HMA agreed to pay $62.5 million to resolve these allegations with $61,839,718 being paid to the United States and $706,084 being paid to participating States.
The civil settlement also resolves allegations that during the period from 2003 through 2011, two HMA hospitals in Florida, Charlotte Regional Medical Center and Peace River Medical Center, billed federal health care programs for services referred by physicians to whom HMA provided remuneration in return for patient referrals. To induce patient referrals, Charlotte Regional provided a local physician group with free office space and staff, as well as direct payments, which purportedly covered overhead and administrative costs incurred by the group for its management of a Charlotte Regional physician. HMA also provided another local physician with free rent and upgrades to his office space. HMA agreed to pay $93.5 million to resolve these civil allegations, with the United States receiving $87.96 million, and the State of Florida receiving $5.54 million.
Additional allegations that are resolved by the civil settlement are that between 2009 and 2012, two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center in Pennsylvania, billed federal health care programs for services referred by physicians with whom the facilities had improper financial relationships. These relationships stemmed from HMA’s excessive payments to (1) a large physician group in return for two businesses owned by the group and for services allegedly performed by the group, and (2) a local surgeon that exceeded the value of the services provided. The government alleged that these arrangements were structured in this manner to disguise payments intended to induce the referral of patients. HMA agreed to pay $55 million to the United States to resolve these civil allegations.
Finally, the civil settlement will also resolve claims that Crossgates Hospital, an HMA facility in Brandon, Mississippi, leased space to a local physician from Jan. 15, 2005 through Jan. 14, 2007, but required the physician to pay rent for only half of the space he was actually occupying, in return for patient referrals to Crossgates Hospital. HMA agreed to pay $425,000 to the United States to resolve these civil allegations.
Federal law, including the Anti-Kickback Statute and the Stark Law, prohibits hospitals from providing financial inducements to physicians for referrals. These provisions are designed to ensure that physician decision-making is not compromised by improper financial incentives.
“Billing for unnecessary hospital stays wastes federal dollars,” said Assistant Attorney General Hunt. “In addition, offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system. Patients deserve the unfettered, independent judgment of their health care professionals.”
“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system,” said U.S. Attorney Chapa Lopez. “Today’s resolution should remind healthcare providers of their duty to comply with the law, and the heavy price to be paid for corrupt practices committed by their executives. Our Civil Division will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.”
“Our office will continue to enforce prohibitions on improper financial relationships between health care providers and their referral sources, as these relationships can serve to corrupt physician judgment about a patient’s true health needs,” said U.S. Attorney Fajardo Orshan. “We will devote all necessary resources to ensure that those rendering medical care do so for the sole benefit of the patient and in compliance with the law.”
“By manipulating patient status, HMA increased Medicare costs and pocketed taxpayer funds to which it was not entitled,” said U.S. Attorney Peeler. “Our Medicare patients and our taxpayers deserve better, and I am proud that justice has been done. Nonetheless, we will continue to pursue those hospitals in our district that would seek to take advantage of the Medicare Program.”
“Government healthcare programs are vital to the welfare of our communities,” said U.S. Attorney Murray for the Western District of North Carolina, where two HMA hospitals were located. “We will aggressively pursue providers that fraudulently inflate charges to government programs and divert scarce resources from those in need into their own pockets.”
“Our resolution of this matter and the significant recovery we have obtained show once again that no matter how complex the scheme is, we will find it, stop it, and punish it,” said U.S. Attorney McSwain. “HMA covered up kickbacks for patient referrals with sham joint venture agreements, lease payments, and management agreements. These sorts of improper physician inducements are a form of ‘pay to play’ business practices that will not be tolerated. Healthcare institutions cannot pad their bottom line at the expense of the American taxpayers. And most importantly, this conduct must be rooted out because it gets in the way of providing top-notch patient care to American citizens.”
“It is critically important to all of us that the patients’ interest drive the physicians’ decisions on care,” said U.S. Attorney Lydon. “Unnecessary hospital admissions not only drive up costs but can cause damage to patients and cannot be tolerated.”
The government further alleged that from September 2009 through December 2011, certain HMA hospitals submitted claims to Medicare and Medicaid seeking reimbursement for falsely inflated emergency department facility charges. HMA agreed to pay $12 million to resolve these civil allegations, with $11.028 million being paid to the United States and $972,000 being paid to participating States.
“Compliance with government healthcare rules requires that patients only receive treatment they actually need,” said HHS-OIG Acting Assistant Inspector General for Investigations Jackson. “Then government programs must be billed just for those services. No more, no less. Let there be no doubt, we will continue to protect federal healthcare programs and beneficiaries by holding provider organizations fully accountable.”
“This settlement is a result of the FBI’s hard work and dedication to hold companies accountable for their role in healthcare fraud and abuse,” said FBI Assistant Director Johnson. “The FBI will not stand by when there are allegations that a company operates a corporate wide scheme to increase their financial gain at the expense of the U.S. government. We appreciate those who come forward with allegations of criminal misconduct and recognize the importance of the public’s assistance in our work.”
The allegations resolved by the settlement were originally brought in eight lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The eight qui tam cases, which were filed in various districts and transferred to the U.S. District Court for the District of Columbia as part of a multi-district litigation presided over by the Honorable Reggie B. Walton, are captioned: United States ex rel. Brummer v. HMA, Inc., 3-09-cv-135 (CDL) (M.D. Ga.); United States ex rel. Williams v. HMA, Inc., 3:09-cv-130 (M.D. Ga.); United States ex rel. Plantz v. HMA, Inc., 13-CV-1212 (N.D. Ill.); United States ex rel. Miller v. HMA, Inc., 10-3007 (E.D. Pa.); United States ex rel. Mason & Folstad v. HMA, Inc., 3:10-CV-472-GCM (W.D.N.C.); United States ex rel. Nurkin v. HMA, Inc., 2:11-cv-14-FtM-29DNF (M.D. Fla.); United States ex rel. Jacqueline Meyer & Cowling v. HMA, Inc., 0:11-cv-01713-JFA (D.S.C.); and United States ex rel. Paul Meyer v. HMA, Inc., 11-62445 cv-Williams (S.D. Fla.).
The whistleblower in United States ex rel. Nurkin will receive approximately $15 million as a share of the recovery, and the whistleblowers in United States ex rel. Miller will receive approximately $12.4 million as their share of the recovery. The whistleblower shares to be awarded in the remaining cases have not yet been determined.
These matters were investigated by the Civil Division’s Commercial Litigation Branch; the Health Care Fraud Unit of the Criminal Division’s Fraud Section; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Middle District of Georgia, Northern District of Illinois, Western District of North Carolina, Eastern District of Pennsylvania and the District of South Carolina, the FBI Healthcare Fraud Unit Major Provider Response Team, HHS-OIG and Defense Health Agency Program Integrity. On behalf of the States, an investigative/settlement team with members from North Carolina, Massachusetts, Virginia, Washington, and Florida assisted with the investigation and resolution of these matters.
The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud and Enforcement Action Team (HEAT) initiative, a partnership between the Department of Justice and the Department of Health and Human Services to focus efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Except for those facts admitted to in the guilty plea and in the Non-Prosecution Agreement, the claims resolved by the settlement are allegations only, and there has been no determination of liability.
If you believe you are a victim of this offense, please call (888) 549-3945.
Gulfport Man Pleads Guilty to Possession with Intent to Distribute MarijuanaRead the Press Release
Gulfport, Miss – Lyndell Marcel Pritchard, 30, of Gulfport, formerly of Meridian, entered a guilty plea yesterday before U.S. District Judge Louis Guirola to possession with intent to distribute marijuana, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 8, 2018, Gulfport police officers conducted a search of the home where Pritchard lived and found packages containing almost 2 pounds of marijuana along with digital scales. Officers also found a total of eight firearms in the home.
Pritchard will be sentenced by Judge Guirola on December 12, 2018, and faces a maximum penalty of five years in prison and a $250,000 fine.
The Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Grifton Man Sentenced After Conviction of Firearms OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, DEFONTE KENTRIAL WILLIAMS, 25, of Grifton, was sentenced by United States Senior District Judge W. Earl Britt for possession of a firearm and ammunition as a convicted felon. Judge Britt sentenced WILLIAMS to 68 months’ imprisonment followed by 3 years of supervised release.
WILLIAMS was charged in a one-count indictment on July 11, 2017, and pled guilty to one count on July 9, 2018.
On January 2, 2017, WILLIAMS and an associate decided to purchase marijuana in Pitt County, North Carolina. During the purchase, a dispute arose. WILLIAMS seized a firearm and pointed it at one of the dealers, and chased that person into a field at gunpoint. WILLIAMS then robbed the dealer of marijuana at gunpoint.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Erin Blondel handled the prosecution of this case for the government.
Former President of Labor Union Pleads Guilty to Participating in Embezzlement and Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), Thomas Licetti, Acting New York Regional Director, U.S. Department of Labor Employee Benefits Security Administration (“DOL-EBSA”), and Andriana Vamvakas, New York Regional Director, U.S. Department of Labor Office of Labor-Management Standards (“DOL-OLMS”), announced that ROCCO FAZZOLARI, who previously served as the president of a labor union (the “Union”) and a trustee of the Union’s employee welfare benefit plan (the “Plan”), pled guilty today to embezzling from the Union and the Plan and to participating in a kickback scheme involving the Plan. Through these embezzlement and kickback schemes, FAZZOLARI and a co-conspirator illegally obtained a total of more than $1.3 million from the Union and the Plan. FAZZOLARI pled guilty before United States District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “Rocco Fazzolari abused his position as the president of a labor union to line his own pockets. As he admitted today, he embezzled funds and he engaged in a kickback scheme that cost an employee benefit plan – which was established to provide medical care for union members – more than $1 million. Our Office is committed to prosecuting those who misuse positions of trust for their own gain.”
DOL-OIG New York Region Special Agent-in-Charge Michael C. Mikulka said: “While president of a labor union, Rocco Fazzolari stole union assets to pay for lavish personal items, including designer clothing, spa treatments, and a second vehicle for his family, betraying the members of the union. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and the Employee Benefits Security Administration to protect the financial integrity of labor unions and their benefit plans.”
DOL-EBSA Acting New York Regional Director Thomas Licetti said: “Plan administrators and trustees of union sponsored health plans have a fiduciary obligation under ERISA to provide health benefits to union members and plan participants. In this case, the plan administrator intentionally broke that promise in order to serve his own interest. EBSA will pursue strong enforcement action against those responsible for depriving employees of the benefits to which they are entitled.”
DOL-OLMS New York Regional Director Andriana Vamvakas said: “Combatting financial fraud and investigating embezzlement of union funds helps safeguard financial integrity in labor unions. This is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will work with our investigative partners to identify criminal violations and pursue appropriate legal action whenever anyone puts personal financial gain ahead of the best interests of union members.”
According to the allegations in the Information to which FAZZOLARI pled guilty, public court filings, and statements made in court:
From at least in or about 2012 through in or about June 2016, FAZZOLARI repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical expenses, dues for an actors’ union, personal credit card charges, and ATM cash withdrawals. FAZZOLARI then “reimbursed” the Union with funds from the Plan. The Plan was established to provide, among other things, medical, surgical, and hospital care or benefits to Union members. In total, FAZZOLARI embezzled more than $128,000 from the Union over approximately four years, and improperly transferred more than $89,000 from the Plan to “reimburse” the Union.
In addition, from at least in or about 2000 through in or about June 2016, FAZZOLARI engaged in a kickback scheme with another individual (“CC-1”). Using Plan funds, FAZZOLARI paid CC-1’s company, Acclaim Administrators, Inc. (“Acclaim”), more than $1.1 million for purported services, even though Acclaim did not actually provide the Plan with these services. CC-1 then kicked back the vast majority of these payments to FAZZOLARI.
Under the terms of his plea agreement, FAZZOLARI has agreed to a 13-year ban, pursuant to 29 U.S.C. §§ 504 and 1111, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan. FAZZOLARI has also agreed to forfeit $941,828 and to pay restitution to the Union and the Plan.
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ROCCO FAZZOLARI, 58, of Manhasset Hills, New York, pled guilty to three counts: embezzlement from a labor organization, embezzlement from an employee benefit plan, and conspiracy to embezzle from an employee benefit plan, each of which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing before Judge Torres is scheduled for January 28, 2019, at 11:40 a.m.
Mr. Berman praised the Department of Labor’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding investigative work. Mr. Berman also thanked the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance in this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Former Owner of Long Island Catering Hall Pleads Guilty to Forced LaborRead the Press Release
Earlier today, in federal court in Central Islip, Ralph Colamussi pled guilty before United States District Judge Denis R. Hurley to forced labor of employees at the Thatched Cottage, a catering and wedding venue in Centerport, New York. When sentenced, Colamussi faces up to 20 years in prison, as well as restitution and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York; and Thomas M. Cioppa, District Director, United States Citizenship and Immigration Services (USCIS), announced the guilty plea.
Colamussi formerly owned and operated the Thatched Cottage. At the plea proceeding, Colamussi admitted that workers were brought from the Philippines to the United States on H-2B visas that expired shortly after their arrival here. Once their H-2B visas expired, Colamussi coached workers how to apply for student visas by fraudulently representing that they intended to attend school full-time and had sufficient resources to support themselves during school. Colamussi admitted that at times, he deposited funds into the workers’ bank accounts to give the appearance of ample resources and then withdrew the funds once the student visas were approved. Colamussi further admitted that when workers objected to performing certain jobs, working consecutive shifts or not being paid promptly, he threatened to report them to immigration authorities.
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:
RALPH COLAMUSSI
Age: 64
Huntington, New York,E.D.N.Y. Docket No. 17-0592 (DRH)
Former Kent State professor sentenced to five months in prison to be followed by five months of house arrest for lying to the FBIRead the Press Release
A former Kent State University professor was sentenced to five months in prison to be followed by five months of house arrest for lying to the FBI.
Julio Pino, 57, of Kent, pleaded guilty earlier this year to one count of making a false statement to law enforcement.
The sentence was announced by U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Pino was also sentenced to three years of supervised release and fined $2,500. U.S. District Judge Patricia Gaughan ordered to Pino to have no access to the Internet or to have computer monitoring software on his computers if so recommended by his probation officer.
According to the criminal information filed in U.S. District Court in Cleveland:
Pino was a Facebook friend of a St. Louis resident identified in the information at J.E. Pino posted numerous statements and images on social media regarding J.E. and J.E.’s child custody issues between May 2015 and January 2016.
Among these conversations, on or about September 11, 2015, Defendant and J.E. had the following communications:
J.E. wrote, “I’m playing the game backwards. and winning! . . . I will kill 100s of people if they take my rights as a father away!”
Pino stated, “Yes, in military terms this is known as ‘the Parthian shot’.”
J.E. wrote, “hell, 10000’s! . . . It’;s [sic] time for Men to act like men again. . . . See the thing I’ve got on my side is God. That allows me certain rights. One of those rights is to strike down evil with furious vengeance! . . . People don’t even know how crazy I am yet! That’s because no ones ever tried to take my [relative]. They’re about to meet to [the] Monster they’ve created.”
Pino responded, “Devour them, [J.E.].”
J.E. wrote, “Thank You! I will! :)
J.E. wrote on his Facebook wall a series of threatening communications in December 2015 through January 2016 directed against a St. Louis Family Court Judge adjudicating J.E.’s child custody case. On Jan. 11, 2016, J.E. also wrote on his own Facebook wall, “I (expletive) love Julio Pino, even if he does eventually do something that most consider horrible, I’ll still love him because I know him in a deeper way than most of you even could.”
Law enforcement authorities in St. Louis arrested J.E. on Jan. 11, 2016, for making threatening communications against the judge.
The FBI was involved in investigating J.E.’s threats against the judge. FBI agents on Jan. 18, 2016, interviewed Pino in Miami about his social media posts and comments concerning his interactions with J.E. and discussions with J.E. about J.E.’s child custody issues. The FBI agents recorded this interview in connection with an ongoing investigation concerning, among other things, Pino’s interactions with J.E. as described above.
Federal grand jury subpoenas from the Northern District of Ohio were issued during the course of that investigation. In response to questions from FBI agents concerning whether he ever had conversations with J.E. on the social media accounts, Pino, knowing full well the content of his social media interactions with J.E., stated he “never heard of [J.E. or] maybe I heard of him through the news,” he did not recall conversations with J.E. and that his conversations with J.E. were “invented conversation[s].” When asked again if he remembered the conversation with J.E., Pino responded, “I never heard of him, well maybe I heard of him through the news,” and then later stated, “the other way around it is certainly possible that he could have heard of me and made up this conversation, invented it.”
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Om Kakani and Michelle Baeppler.
Former Duval County High School Teacher Sentenced to Federal Prison for Transporting Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis today sentenced Jeremy Scott Clark (45, Ponte Vedra) to seven years and six months in federal prison for transporting images depicting child sexual abuse over the internet. Clark was also ordered to serve a 15-year term of supervised release and to register as a sex offender. Clark pleaded guilty in June 2018 and has been held in federal custody since his arrest on March 8, 2018.
According to court documents, on February 22, 2018, Clark, using the screen name “LLCoolJack1973,” responded to a message posted by an undercover FBI agent on an internet bulletin board frequented by individuals with a sexual interest in children. Clark began an online conversation with the undercover agent. After engaging in conversation about sexual activity with children, Clark sent an explicit photo of himself to the agent, along with a link to an online storage account containing images of young children being sexually abused. Further investigation revealed that Clark was a teacher at First Coast High School in Jacksonville.
On March 8, 2018, law enforcement officers executed a search warrant at Clark’s home. FBI agents were able to confirm that the picture of the naked male sent to the undercover agent was that of Clark on his bed in his home. A forensic examination of Clark’s phone revealed that it contained the link to the online storage account previously sent to the agent, along with links to more than 400 additional images depicting the sexual abuse of children.
“The FBI will stop at nothing to protect innocent victims, and seek justice for the heinous acts committed against them,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “This case is even more egregious having been committed by someone who was in a position of authority. Our investigators will continue to work tirelessly in coordination with our law enforcement partners to identify those who abuse their positions and prey on our children.”
This case was investigated by the Federal Bureau of Investigation and the St. Johns County Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Bandidos National President Sentenced to Life in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 63–year-old Bandidos Outlaw Motorcycle Organization National President Jeffrey Faye Pike of Conroe, TX, to life, plus ten years, in federal prison for racketeering and drug trafficking charges.
That announcement was made today by United States Attorney John F. Bash, Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steven McCraw; Austin Police Chief Brian Manley; San Antonio Police Chief William McManus; and Atascosa County Sheriff David A. Soward
“As I have said before, this prosecution shows that the Department of Justice has the tools to strip away a veneer of legitimate activity to expose and punish underlying criminal conduct. Others—and not only those involved in violent activity—should take note,” stated United States Attorney John F. Bash.
On Monday, Judge Ezra sentenced Bandidos National Vice President John Xavier Portillo to two consecutive life sentences, plus twenty years, in federal prison.
On May 17, 2018, after a nearly three-month trial, jurors convicted Pike and Portillo of (count 1) conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; (count 3) murder in aid of racketeering; (count 4) conspiracy to commit murder in aid of racketeering; (count 5) one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering; (counts 6 and 7) aiding and abetting assault with a dangerous weapon in aid of racketeering; (count 9) discharging a firearm during a violent crime; and, (count 12) interference with commerce by threats and violence. Jurors also convicted Portillo of (count 2) murder in aid of racketeering; (count 8) discharging a firearm during a crime of violence; (count 10) conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; (count 11) possession with intent to distribute cocaine; and, (count 13) felon in possession of a firearm.
Jurors found Pike and Portillo guilty of conspiring to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking. Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh. At the time, Benesh was attempting to start a Texas Chapter of the Hells Angels in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandidos members then murdered Benesh on March 18, 2006 outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandidos member Javier Negrete. Negrete, a member of the same local Bandidos chapter as Portillo at the time, was killed outside a San Antonio bar in October 2001.
Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.
Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
“The sentencing of Bandidos National President Jeffery Pike highlights the success law enforcement agencies can achieve and the impact we can have when we combine our resources and investigative talents. DEA will continue to work with our law enforcement partners and pursue those criminal organizations who threaten our communities with violence and engage in the distribution of illegal and dangerous drugs,” stated Will Glaspy, Special Agent in Charge of the Drug Enforcement Administration – Houston Division.
“The sentencing rendered today is the result of the outstanding partnership between the FBI and all our law enforcement partners,” said FBI Special Agent in Charge Christopher Combs. “This effort demonstrates our ongoing commitment to prevent gang violence and criminal activity from poisoning our communities. It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
“Gang violence is a threat to the safety and security of Texas communities,” said DPS Director Steven McCraw. “These are complex cases, but thanks to the hard work and collaboration between law enforcement authorities and prosecutors, these criminals are no longer free to prey on our communities.”
The FBI, DEA and Texas DPS investigated this case together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, Palo Pinto County Sheriff’s Department, Ector County Sheriff’s Department, the Bexar County District Attorney’s Office, and U.S. Attorney’s Office for the Southern District of Texas. Assistant United States Attorneys Eric Fuchs and John Gibson are prosecuting this case on behalf of the Government.
Federal Charges Filed Against Engineering Department Operations Supervisor and Two Businessowners for Scheme to Defraud Veterans Administration Medical Center in TempleRead the Press Release
In Waco today, federal authorities filed charges against Temple, TX, couple Christopher Sebek, 55, and Melissa Sebek, 55, and Killeen, TX resident Jeffrey Pearson, 55, for their roles in a scheme to defraud the Department of Veterans Affairs of approximately $250,000, announced U.S. Attorney John F. Bash and U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG) Criminal Investigations Division Special Agent in Charge James Ross, South Central Field Office.
Christopher Sebek, Operations Supervisor in the Engineering Department at the Veterans Administration Medical Center (VAMC) in Temple; and Jeffrey Pearson, owner and operator of Whitetail Industrial, a business which contracted goods and services to VAMC-Temple, are both charged by an Information with one count of conspiracy to defraud the government and one count of theft of government property. A separate, but related, Information charges Melissa Sebek, owner and operator of MS. Bookkeeping Services, with one count of theft of government property.
According to court records, beginning in February 2012, Christopher Sebek and Jeffrey Pearson entered into an agreement to steal money from the VAMC. Over a five-year period, they allegedly submitted fraudulent invoices to VAMC for payment purportedly for goods and services designated for VAMC. Sebek also presented bogus invoices to VAMC from his wife’s company. Those invoices, however, were used by Sebek to pay for personal items and to cover Pearson’s 30% commission on each invoice. Court records also allege that Sebek stole two VAMC credit cards and used them to pay for personal expenses.
Upon conviction, the defendants face up to five years in federal prison on the conspiracy charge and up to ten years in federal prison on the theft charge. All three will receive summonses for their Initial Appearance in federal court in Waco.
The VA-OIG investigated this case. Assistant U.S. Attorney Greg Gloff is prosecuting this case on behalf of the Government.
It is important to note that an Information is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eight Members of Organized Fraud Ring in Detroit IndictedRead the Press Release
A federal grand jury charged eight members of an organized fraud ring based in Detroit with conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft in a twenty-three count indictment, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Timothy R. Slater, Special Agent in Charge, Federal Bureau of Investigation (FBI), Detroit Field Office, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division, Reginald DeMatteis, Special Agent in Charge, United States Secret Service, Charlotte Field Office, and Michael Patton, Chief of Police, West Bloomfield Police Department.
Charged were:
Toriano Adams, 32, of Eastpointe
Anthony Adans, 32, of Troy
Devin Simmons, 32, of Sterling Heights
Aatif Brown, 25, of Detroit
OD Williams, 27, of Detroit
Denico Adams. 26, of Detroit
Rodney Gist, 27, of Detroit
Tayan Jackson, 32, of Brooklyn, New York
According to the indictment, the defendants are members and/or associates of an organized fraud ring known as the “Free Band Gang.” Members of the fraud ring obtained stolen credit card accounts in bulk through various sources, including “dump” sites on the internet. The stolen accounts were then pressed on the front of counterfeit cards to create cloned credit cards. Free Band Gang members traveled to Walmart stores throughout the United States where they purchased $500 gift cards using the cloned credit cards without the authorization — or knowledge — of the true accountholder. Free Band Gang members often purchased a hundred thousand dollars or more in gift cards in a single day using the cloned credit cards and returned to Michigan with the gift cards which they sold for cash to launder the proceeds. The scheme lasted for nearly three years and resulted in millions in losses.
“In the span of nine hours, two of these defendants allegedly traveled to ten Walmart stores in and around Bentonville, Arkansas, used three counterfeit credit cards, and made over $100,000.00 in fraudulent purchases,” stated United States Attorney Matthew Schneider. “This was not uncommon for this group. Over three years, the defendants allegedly stole millions of dollars in an organized, calculated scheme. Because Michigan is a national leader in identity theft, we are literally working day and night to break up these fraud rings and put the perpetrators where they belong: in federal prison.”
“This type of identity theft and credit card fraud is not a victimless crime. It has a negative impact not only on the corporations involved but on the individual whose identity is stolen,” said Special Agent in Charge Timothy R. Slater, FBI Detroit. “The FBI will continue to work in close partnership with the members of the Detroit Metro Identity Theft Task Force to identify and disrupt individuals and criminal organizations engaged in these schemes which can result in the loss of millions of dollars a year.”
Schneider commended the substantial assistance of law enforcement agencies around the country as well as the tremendous work by Walmart’s Global Investigations Team, without it the full scope of the fraud would never have been uncovered. Organized fraud rings operate across multiple jurisdictions by design in an attempt to evade detection.
The case is being investigated by the Detroit Metro Identity Theft Task Force, which includes representatives of the FBI, Michigan State Police, U.S. Postal Inspection Service, Auburn Hills Police Department, Birmingham Police Department, and Bloomfield Township Department along with assistance from the West Bloomfield Township Police Department and Ellisville, MO Police Department. The case is being prosecuted by Assistant U.S. Attorneys Shane Cralle and James R. Drabick.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Eagle Butte Man Sentenced for Third Degree Burglary and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary and Aiding and Abetting was sentenced on September 17, 2018, by U.S. District Judge Roberto A. Lange.
Henry James Three Legs, age 30, was sentenced to 2 months in federal prison, 10 months of home confinement, 2 years of supervised release, restitution in the amount of $23,390.65, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Three Legs was indicted by a federal grand jury on July 17, 2013. He pled guilty on June 25, 2018.
Three Legs’ conviction is the result of a June 2012 break-in at the Howard V. Johnson Cultural Heritage Center for the Cheyenne River Sioux Tribe in Eagle Butte. Three Legs and Brian One Feather broke into the facility and took approximately $37,420 worth of cultural and craft items belonging to the Cultural Center.
One Feather was previously sentenced on January 29, 2014, to 18 months in federal prison and 2 years of supervised release for Third Degree Burglary and Aiding and Abetting.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Three Legs is to turn himself over to the custody of the U.S. Marshals Service on October 1, 2018, at 2:00 p.m.
Delaware Man Charged with Dealing Drugs that Resulted in at Least Three Overdose DeathsRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Darnell A. Reeves, 32, of Delaware, Ohio, in a nine-count indictment returned here today. Reeves is charged with drug charges related to the distribution of crack cocaine, fentanyl and heroin that resulted in four overdoses, three of them fatal.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Delaware County Prosecutor Carol O’Brien, Delaware County Sheriff Russell L. Martin, Delaware Police Chief Bruce Pijanowski and other members of the Delaware County Drug Task Force announced the charges returned yesterday and filed today.
According to court documents, investigators traced fentanyl, heroin and crack cocaine back to Reeves (also known as Bookie), after they responded to the scene of an overdose death in Ostrander, Ohio on February 28. The victim was found on a couch in a shed, slumped forward with a used syringe under him.
Further investigation tied Reeves’s alleged trafficking activity to an overdose death on January 22, a nonfatal overdose on February 12 and a fatal overdose on March 2.
Reeves was arrested in June in connection to a federal criminal complaint and has remained in custody since.
Distribution of a controlled substance that resulted in serious bodily injury and/or death carries a potential sentence of 20 years to life in prison.
“This case is an example of how all levels of law enforcement are working together to trace overdose deaths back to their alleged suppliers and prosecute in the most appropriate venue,” U.S. Attorney Glassman said. “We will continue to collaborate in order to combat the impact of fentanyl, heroin and other drugs on our communities.”
“The charges against Mr. Reeves tragically illustrate how frequently these deadly drugs are claiming the lives of our community members, especially here in Ohio with over 4000 deaths each year since 2016,” said Steve Francis, HSI special agent in charge for Michigan and Ohio. “HSI is committed to stopping the flow of these highly dangerous drugs into our communities and holding those who distribute this poison accountable for their actions.”
U.S. Attorney Glassman commended the investigation of this case by HIS, Delaware County Sheriff’s Office, Delaware Police Department and members of the Delaware County Drug Task Force, as well as Deputy Criminal Chief Michael Hunter, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Daly City Man Sentenced to 20 Months in Prison for Smuggling Firearms to PhilippinesRead the Press Release
SAN FRANCISCO – Elmer Ratunil Cuares was sentenced to 20 months in prison for smuggling goods, including firearms, out of the United States, announced United States Attorney Alex G. Tse; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge in Northern California and Northern Nevada Ryan L. Spradlin; and the U.S. Department of Commerce’s Office of Export Enforcement, San Jose Office, Special Agent in Charge Joseph P. Whitehead. The sentence was handed down today by the Honorable Lucy H. Koh, U.S. District Judge.
Cuares, 51, of Daly City, pleaded guilty to the charge on June 20, 2018. According to his plea agreement, Cuares admitted that he attempted to export several firearms to the Philippines without the proper license authorizing him to do so.
Cuares admitted that in the Spring of 2015 he entered into an agreement to purchase two trucks from a San Jose-based company. Pursuant to the agreement, the company would arrange for the trucks to be transported to the Philippines in a shipping container from the United States. After the company ordered and received the shipping container, Cuares received permission from the company to add personal items to the container so that those items could be shipped to the Philippines along with the trucks he had purchased. Cuares added several items to the container, including a motorcycle, a television set, a washing machine or clothes dryer, a tool chest, and several boxes. However, unbeknownst to the company or to authorities, Cuares also added to the shipping container several firearms including one Glock Model 42 .380 caliber handgun, one Ruger LC .380 caliber handgun, one STI .40 caliber handgun, and one Spikes Tactical M-4 assault rifle. The shipping container arrived in the Philippines in early June of 2015.
Cuares also took steps to conceal the presence of the firearms in the container. For example, he disassembled the firearms and hid the pieces inside of innocuous items. Further, Cuares admitted export of the firearms is illegal under the Arms Export Control Act (22 U.S.C. § 2778) and the International Traffic in Arms Regulations (22 C.P.R. §§ 120-130), he knowingly exported the firearms from the United States to the Philippines, and he had neither applied for nor received a license authorizing him to export firearms.
A federal grand jury indicted Cuares on September 14, 2017, charging him with three counts: one count each of smuggling goods from the United States and concealing goods prior to exportation from the United States, both in violation of 18 U.S.C. § 554, and one count of delivery of firearms to common carrier without written notice, in violation of 18 U.S.C. § 922(e). Cuares pleaded guilty to the first charge. The additional charges were dismissed following sentencing.
In addition to the prison term, Judge Koh ordered Cuares to serve a one-year term of supervised release to begin after he has served his prison term. Judge Koh ordered defendant to begin serving his sentence on November 28, 2018.
Assistant U.S. Attorney John Bostic is prosecuting the case. The prosecution is a result of a joint investigation by HSI and the U. S. Department of Commerce.