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24 September 2018
Harrington Man Pleads Guilty to Distributing Heroin and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Owen Fickett, 31, of Harrington, Maine, pleaded guilty today in U.S. District Court to possession with the intent to distribute heroin and cocaine base, commonly known as “crack.”
According to court records, on March 6, 2018, a Maine State Police Trooper stopped a vehicle in which Fickett was a passenger. During a roadside investigation, the trooper discovered that Fickett was in possession of heroin, crack and about $1,200. Fickett later admitted that he had been selling heroin and crack.
The defendant faces up to 20 years in prison, three years supervised release, and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine State Police and the U.S. Drug Enforcement Administration and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Groveton Woman Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Meredith Willey, 38, of Groveton, New Hampshire, pleaded guilty in federal court to participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an on-going drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 1, 2018, an individual intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 250 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed a known drug trafficker get in the back seat of the car and exit a few minutes later. The vehicle left Massachusetts and agents followed it directly to New Hampshire.
The agents informed a New Hampshire State Trooper patrolling Interstate Route 93 about their surveillance observations. The trooper stopped the vehicle for traffic violations. Willey was a passenger in the vehicle. Willey subsequently admitted that she and the driver went to Lawrence to buy “dope.” Willey consented to a search of the car and signed a consent to search form. The troopers found a hidden compartment containing approximately 240 grams of fentanyl. Willey admitted that she and the driver purchased fentanyl in Lawrence and resold the drug in New Hampshire.
Willey is scheduled to be sentenced on January 3, 2019.
“Fentanyl continues to pose a significant threat to our state,” said U.S. Attorney Murray. “We are committed to stopping the flow of fentanyl into New Hampshire. Drug traffickers should understand that the law enforcement community is working hard each day to identify and prosecute those who are responsible for distributing this deadly drug in 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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Greenwood Man Sentenced to 100 Months for Possessing a FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Tramain R. Anderson, age 28, of Greenwood, was sentenced to 100 months in prison after pleading guilty to being a felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). United States District Judge Bruce Howe Hendricks, of Charleston, sentenced Anderson and imposed a three-year term of supervised release.
Evidence presented at the change of plea hearing established that on July 12, 2017, the Greenwood City Police Department received a report that a young woman was possibly being abused at a local motel. Officers went to Room 207, knocked, and encountered Anderson. Police smelled marijuana and Anderson admitted that he had just smoked a joint. The drug evidence gave police probable cause to search the room. Upon entering the room, they located a young female occupant who said she was being held against her will and that she had been beaten by Anderson. She explained that Anderson had a gun and that it was in Anderson’s personal bag sitting on the bed. In the bag, the officers found a Taurus .38 caliber revolver that was fully loaded.
In consultation with local authorities, the U.S. Attorney’s Office agreed to prosecute Anderson for being a felon in possession of a firearm.
The case was investigated by agents of the Greenwood City Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case is part of a joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Garland Man Sentenced to 1½ Years for Failing to Register as a Sex OffenderRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Roger Edward Picard, 66, of Garland, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to 1½ years in prison and five years of supervised release for failing to register as a sex offender. Picard pled guilty on May 17.
According to court records, in 1983, Picard was convicted in Massachusetts of Rape of a Child, by force and beating. As a result, he was required to register as a sex offender. He did so in Hawaii on April 2, 2015 and acknowledged that he had to register if he moved to another state. On or before December 3, 2016, Picard moved to Garland but failed to register as required. He was arrested on March 1, 2018.
Prior to imposing the sentence, Judge Levy noted that the purpose of sex offender registration is to protect the public and children, in particular, from sex offenders and that the defendant’s failure to register frustrated the purpose of the act and deprived those in his community of the fact that he had a history as a sex offender.
The investigation was conducted by the U.S. Marshals Service.
Former United States Geological Survey Contract Specialist Sentenced for Theft of Government FundsRead the Press Release
Gulfport, Miss – Matthew Wathen, 49, of Michigan, was sentenced today by United States District Judge Louis Guirola, Jr. to five years probation for theft of government funds, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michael Graziano, with the U.S. Department of the Interior (DOI), Office of Inspector General (OIG). The Court ordered Wathen to pay restitution in the amount of $26,350.
Wathen, a former Contract Specialist for the DOI’s United States Geological Survey, embezzled approximately $29,092 through unauthorized personal use of his government charge card, including weekly lodging, monthly rental cars, dining, gasoline, vacations, and other expenses.
The case was investigated by the DOI-OIG Eastern Investigations and prosecuted by Assistant United States Attorney Shundral H. Cole.
Former Porter County Officer Charged with Wire FraudRead the Press Release
HAMMOND – Lawrence W. LaFlower, 42 years old, of Valparaiso, Indiana, has been charged with one count of wire fraud, announced U.S. Attorney Kirsch.
US Attorney Kirsch said, "Public officials who abuse their positions for personal financial gain will not be tolerated. My Office, with our law enforcement partners, will continue to pursue those who corrupt their office for self-serving motives."
According to court documents, between April 2013 and April 2018, LaFlower used his position as the treasurer of the Fraternal Order of Police Ewalt Jahnz Lodge #165’s to embezzle over $180,000 from its investment and bank accounts. The FOP is a fraternal organization in Porter County, Indiana, whose mission is to improve working conditions for law enforcement officers and serve the public by raising money for scholarships and other programs.
LaFlower has entered into a plea agreement with the government and is expected to formally enter his plea of guilty in court later this week.
The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI and Indiana State Police and is being prosecuted by Assistant United States Attorney Abizer Zanzi.
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Former Owner of Marble Mining Company in Afghanistan Convicted for Defrauding U.S. government Agency and Defaulting on a $15.8 Million LoanRead the Press Release
The former owner of a now-defunct marble mining company in Afghanistan was found guilty today by a federal jury for his role in defrauding the Overseas Private Investment Corporation (OPIC), a U.S. government agency, and defaulting on a $15.8 million loan.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
After a seven-day trial, Azam Doost, aka “Adam Doost,” “Mohammad Azam Doost” and “Mohammad Azim” (Doost), 40, most recently of Freemont, California, was found guilty of three counts of major fraud against the United States, eight counts of wire fraud, four counts of false statements on loan applications or extensions and five counts of money laundering. Doost is scheduled to be sentenced on Dec. 14 by U.S. District Judge Amit P. Mehta of the District of Columbia, who presided over the trial.
The evidence admitted at trial showed that in February 2010, while working at his company, Equity Capital Mining LLC, Doost, along with his brother, obtained a $15.8 million loan from OPIC for the development, maintenance and operation of a marble mine in western Afghanistan. The loan proceeds were paid directly from OPIC to the alleged vendors who provided equipment for the mine, as reported to OPIC by Doost or his consultant. Doost was required to deal with these companies in arms-length transactions or, to the extent any transactions were other than at arms-length, he was required to report to OPIC any affiliation he had with a vendor. Instead, Doost falsely informed OPIC that he had no affiliation with any of the vendors with whom he dealt, when in fact he had financial relationships with several of them. The evidence further showed that Doost’s business partner was listed on the bank accounts for a number of these vendors and, upon receipt of money from OPIC into the respective accounts, significant amounts of this money were then transferred from that respective account to companies and individuals with whom Doost was associated, or to pay debts Doost owed. For example, Doost’s consultant received a commission of $444,000 for his purported consulting services with the first of three disbursements from OPIC, yet $40,000 was transferred from the consultant’s account to a Doost company in California.
The evidence at trial further showed that when the time came for Equity Capital Mining LLC to repay the loan to OPIC, Doost provided purported reasons to OPIC why it was not able to make those repayments at a time when Doost had control of sufficient funds to make those repayments. Ultimately, Doost and his brother failed to repay any of the principal on the OPIC loan, paying only a limited amount of interest, and ultimately defaulted on the loan, the evidence showed.
SIGAR, with assistance from the FBI, investigated the case. The Criminal Division’s Office of International Affairs also provided important assistance in this case. Trial Attorneys Daniel Butler and Michael McCarthy of the Criminal Division’s Fraud Section are prosecuting the case.
Former Omaha Tribal Council Members and Employees SentencedRead the Press Release
United States Attorney Joe Kelly announced today that former Omaha Tribal Council members Rodney Morris, (age 64), Forrest Aldrich (age 68) and Tillie Aldrich (age 49), and former Omaha Tribe employees Jessica Webster (age 48) and Barbara Freemont (age 66) were sentenced by United States District Court Judge Robert F. Rossiter, Jr., for their convictions of one count of conversion and misapplication of funds of a health care benefit program in violation of Title 18, United States Code, Section 669. Each of these defendants were sentenced to five years of probation and were ordered to perform 200 hours of community service. In addition, these defendants were to pay restitution in the amount they each received. Rodney Morris, Forrest Aldrich and Tille Aldrich were ordered to pay $13,404.44 apiece while Barbara Freemont and Jessica Webster were ordered to pay $89,000 apiece.
According to the Indictment and Plea Agreements, the Omaha Tribe of Nebraska had filed Contract Disputes Act claims against the Indian Health Service (IHS), an agency of the United States Department of Health and Human Services. These claims were filed in 2005 and 2012, and concerned unpaid contract support costs covering the period of 1995-2011. The total amount of the claims was approximately $8.9 million. The Indictment alleges that the defendants converted and misapplied funds of a health care benefit program by paying and causing to be paid bonuses or incentives to themselves and several other tribal employees on account of the claim filings. These bonuses or incentives were paid in October of 2012 even though the claims against the Indian Health Service were not resolved and paid until late 2015. Funds used to pay the bonuses came from carryover funds from the fiscal year 2012 contract with IHS. These funds were supposed to be used for providing health care to members of the Omaha Tribe of Nebraska through the Carl T. Curtis Health Education Center.
Four other former tribal council members have pleaded guilty and will be sentenced later in October. These council members are Amen Sheridan, Doran Morris, Jr., Mitchell Parker, and Jeff Miller.
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General for the Department of Health and Human Services.
Former Non-Profit President Charged with Scheme to Conceal Foreign Funding of 2013 Congressional TripRead the Press Release
The former president of a Texas-based non-profit has been charged in an indictment unsealed today for his role in a scheme to conceal the fact that a 2013 Congressional trip to Azerbaijan was funded by the Azerbaijan government.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
Kemal Oksuz, aka Kevin Oksuz, 48, previously a resident of Arlington, Virginia, allegedly lied on disclosure forms filed with the U.S. House of Representatives Committee on Ethics prior to, and following, a privately sponsored Congressional trip to Azerbaijan. According to the indictment, Oksuz allegedly falsely represented and certified on required disclosure forms that the Turquoise Council of Americans and Eurasions (TCAE), the Houston non-profit for which Oksuz was president, had not accepted funding for the Congressional trip from any outside sources. According to the charges, Oksuz in truth orchestrated a scheme to funnel money to fund the trip from the State Oil Company of Azerbaijan Republic (SOCAR), the wholly state-owned national oil and gas company of Azerbaijan, and allegedly concealed the true source of funding, which is alleged to violate House travel regulations.
The five-count indictment was returned earlier this year in the U.S. District Court for the District of Columbia and ordered unsealed today. It charges Oksuz with one count of devising a scheme to falsify, conceal, and cover up material facts from the Ethics Committee and four counts of making false statements to Congress.
Oksuz is considered a fugitive. A warrant for his arrest was issued earlier this year and remains outstanding. Oksuz was recently detained by authorities in Armenia.
The investigation was conducted by the FBI. The case is being prosecuted by Trial Attorney Marco Palmieri of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the District of Columbia.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Non-Profit President Charged with Scheme to Conceal Foreign Funding of 2013 Congressional TripRead the Press Release
WASHINGTON – The former president of a Texas-based non-profit has been charged in an indictment unsealed today for his role in a scheme to conceal the fact that a 2013 Congressional trip to Azerbaijan was funded by the Azerbaijan government.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
Kemal Oksuz, aka Kevin Oksuz, 48, previously a resident of Arlington, Virginia, allegedly lied on disclosure forms filed with the U.S. House of Representatives Committee on Ethics prior to, and following, a privately sponsored Congressional trip to Azerbaijan. According to the indictment, Oksuz allegedly falsely represented and certified on required disclosure forms that the Turquoise Council of Americans and Eurasions (TCAE), the Houston non-profit for which Oksuz was president, had not accepted funding for the Congressional trip from any outside sources. According to the charges, Oksuz in truth orchestrated a scheme to funnel money to fund the trip from the State Oil Company of Azerbaijan Republic (SOCAR), the wholly state-owned national oil and gas company of Azerbaijan, and allegedly concealed the true source of funding, which is alleged to violate House travel regulations.
The five-count indictment was returned earlier this year in the U.S. District Court for the District of Columbia and ordered unsealed today. It charges Oksuz with one count of devising a scheme to falsify, conceal, and cover up material facts from the Ethics Committee and four counts of making false statements to Congress.
Oksuz is considered a fugitive. A warrant for his arrest was issued earlier this year and remains outstanding. Oksuz was recently detained by authorities in Armenia.
The investigation was conducted by the FBI. The case is being prosecuted by Trial Attorney Marco Palmieri of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the District of Columbia.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Dubuque Man Sentenced to over Twelve Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
A man who received and possessed child pornography was sentenced on September 20, 2018, to over 12 years in federal prison.
Christopher Scruggs, age 50, formerly from Dubuque, Iowa, received the sentence after an April 2, 2018, guilty plea to one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Scruggs admitted that, between 2009 and 2014, he received and possessed child pornography.
Scruggs was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Scruggs was sentenced to 151 months’ imprisonment. A special assessment of $200 was imposed, and he was ordered to make $21,500 in restitution, with most of this restitution going to several victims depicted in images he possessed. Scruggs must also serve a five-year term of supervised release, and he must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque County Sheriff’s Office, the Scott County Sheriff’s Office, the Davenport Police Department, the Dubuque Police Department, and the Clinton County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-1048.
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Former Callaway County Collector Pleads Guilty to Stealing Nearly $300,000Read the Press Release
JEFFERSON CITY, Mo. – The former Callaway County Collector pleaded guilty in federal court today to embezzling nearly $300,000 from Callaway County taxpayers.
“On more than 100 occasions, this public official stole directly from the people she was elected to represent,” said U.S. Attorney Tim Garrison. “She will be held accountable for violating the public trust and abusing her position. The government will seek a significant prison sentence and repayment of what was stolen from the taxpayers of Callaway County.”
Pamela J. Oestreich, 59, of Fulton, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges her with one count of stealing from an organization that receives federal funds.
“As Sheriff of Callaway County, I express my sincere gratitude to the FBI and the U.S. Attorney’s Office for their prompt, professional, and expert assistance,” said Callaway County Sheriff Clay Chism. “Although this investigation could have been conducted on the local level, many factors made it apparent the case should be investigated by a federal agency for prosecution in the federal court system. Of most relevance, myself and Callaway County Prosecuting Attorney Christopher D. Wilson believed it paramount the citizens of Callaway County be assured this matter was handled without the slightest hint of some impropriety. Throughout the investigation, I remained in contact with the FBI and the U.S. Attorney’s Office to ensure myself, and all other local Callaway County officials, provided any needed assistance.”
Oestreich was elected as the Callaway County Collector in November 2002. By pleading guilty today, Oestreich admitted that she disbursed taxpayer funds for her personal use on 103 occasions beginning in September 2015. Oestreich deposited taxpayer funds directly into her personal bank account. Oestreich also moved taxpayer funds between Callaway County bank accounts to conceal her theft of cash deposits made by taxpayers at the Callaway County Courthouse. The total amount embezzled by Oestreich from Callaway County taxpayers was $299,387.
Oestreich resigned from her office on March 15, 2018, when confronted by the Callaway County Sheriff and FBI agents.
Under the terms of today’s plea agreement, the government and Oestreich have agreed that she will face an advisory sentencing guidelines range of 41 to 51 months of imprisonment in the Federal Bureau of Prisons. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Oestreich’s sentence will include mandatory restitution of the stolen funds. During the course of her theft of public money, Oestreich made payments totaling $19,430 from her personal bank account into Callaway County Collector accounts to hide her theft. Consequently, the amount of restitution due and owing to Callaway County as a result of her criminal conduct is $279,957.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Callaway County Sheriff’s Office and the Federal Bureau of Investigation.
Former CFO Pleads Guilty in Multi-Million Dollar Embezzlement and Laundering SchemeRead the Press Release
BOSTON – The former chief financial officer (CFO) of two Boston-area companies pleaded guilty today in federal court in Boston for embezzling millions of dollars from his former employers.
Edward J. Abell III, 45, of Gloucester, pleaded guilty to five counts of wire fraud and three counts of money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 4, 2019. Abell was indicted on the charges in October 2017.
Abell served as vice president of finance and later CFO of a global integrated marketing agency based in Boston. In that capacity, Abell oversaw all aspects of the company’s finances and controlled all corporate bank accounts. Between 2006 and his departure in 2016, Abell embezzled over $3.8 million from his employer by writing company checks to Pinehurst Tax Associates – a firm Abell owned. However, Pinehurst did not provide any services to Abell’s employer. Rather, Abell used Pinehurst as a shell company through which he channeled embezzled funds to personal bank accounts.
In order to avoid detection, Abell created fake profiles for Pinehurst within his employer’s internal vendor database and attributed all the fraudulent payments to Pinehurst as “Professional Services” in the financial accounting system. Abell also filed false personal tax returns with the IRS, which failed to report the millions he obtained through Pinehurst.
In late 2016, after he was terminated from the marketing and public relations firm, Abell was hired as CFO of a Boston-based consulting and investment banking firm, where he continued his scheme and embezzled over $140,000.
Abell laundered the proceeds of his crimes by moving the funds through different personal accounts and by purchasing property and other luxury assets. Previously, the government obtained seizure warrants for several of Abell’s assets acquired with fraudulent proceeds. As part of the operation, federal agents seized a property in Fryeburg, Maine, a 2015 Porsche Macan S, a 2015 Ford F-350 Super Duty, and an E*TRADE brokerage account all owned by Abell or held in his name.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The maximum sentence of one of the money laundering charges is 20 years in prison, three years supervised release, and a fine of $500,000, or twice the value of the property involved in the transaction. The remaining money laundering charges provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, is prosecuting the case.
Former Bandidos National Vice President Sentenced to Life in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 59–year-old Bandidos Outlaw Motorcycle Organization National Vice President John Xavier Portillo to two consecutive life sentences, plus twenty 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
In addition to the prison terms, Senior U.S. District Judge David A. Ezra ordered that Portillo forfeit to the Government his motorcycle, three firearms and $17,827.20 seized from a search of his residence in 2016.
“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 May 17, 2018, after a nearly three-month trial, jurors convicted Portillo and National Bandidos President Jeffrey Fay Pike, age 63 of Conroe, TX, 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 Vice President Xavier Portillo is one more step in concluding a comprehensive investigation by DEA, FBI and our law enforcement partners into the leadership structure and criminal activities of the Bandidos Outlaw Motorcycle Gang,” said Will Glaspy, Special Agent in Charge of the Drug Enforcement Administration – Houston Division. “This investigation reflects law enforcements commitment to make sure communities across Texas are safe and prevent gang members involved in drug distribution and other criminal activity from establishing a foothold in our communities.”
“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.”
Pike, who faces up to life in federal prison, is scheduled to be sentenced at 9:00am on September 26, 2018.
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, Bexar County District Attorney’s Office, and the 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.
Eutawville Armed Drug Trafficker Sentenced to Mandatory Life ImprisonmentRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that Joey Lamont Brunson, a/k/a “Solo Flex,” age 42 of Eutawville, Orangeburg County, South Carolina, was sentenced on all twelve of the charges in his federal indictment by United States District Judge Joseph F. Anderson, Jr. Brunson was convicted at trial earlier this year by a federal jury sitting in Columbia. After just four hours of deliberations, the jury returned verdicts convicting Brunson of being a member of a conspiracy to distribute 5 kilograms or more of cocaine, four counts of use of a cell phone to further drug trafficking, money laundering conspiracy, possession with intent to distribute marijuana and cocaine, felon in possession of a firearm, possession of a firearm in furtherance of drug trafficking, and perjury. Based on his two prior federal felony drug convictions, as well as his instant convictions for conspiracy to distribute cocaine, Brunson was sentenced to a statutory mandatory life sentence (without parole) plus 60 months consecutive for the firearms offenses.
Evidence presented at the trial included numerous wiretap calls between Brunson and his main source of supply Lamario Vincent Wright from June through October of 2013. In the calls, Brunson brazenly discussed beating another conspirator in an effort to recover cocaine that the conspirator had stolen from Wright. Repeatedly in the intercepted calls and texts, Brunson ordered drugs using coded language from his suppliers.
After Brunson was indicted in 2015, agents testified he went on the run and eluded capture by the FBI for almost two years. After receiving a tip from the Navy Federal Credit Union in Summerville, agents learned that Brunson was depositing between $3000.00 and $9000.00 cash regularly at multiple locations in late 2016 and 2017. On March 3, 2017, Summerville Police Officers responded to a call for service from one of the credit unions and arrested Brunson after a brief struggle. Agents searched the silver Suzuki he was driving and located cocaine, crack cocaine, marijuana and two firearms. Bank records proved that Brunson deposited over $90,000.00 in cash in multiple accounts while on the run from the FBI.
Evidence at trial also included testimony and pictures of a $30,000.00 Escalade truck that Brunson bought at the request of his supplier Lamario Wright. Records showed that Brunson used over $20,000.00 in drug money to purchase the truck and that he placed it in his name to hide the fact that the truck actually belonged to his partner Wright.
The case was investigated by agents from the Federal Bureau of Investigation with the assistance of the Summerville Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshal’s Office. The case was prosecuted by Assistant United States Attorneys Will Lewis and J.D. Rowell.
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Eight Individuals Indicted as Part of Fraudulent Prescription Ring in St. John the Baptist ParishRead the Press Release
U.S. Attorney Peter G. Strasser announced that SHALLON DAVIS DUNMILES, age 34, together with LASHONDA MELANCON, age 37, WILFRED PERRILLOUX, age 43, DANYELLE TUCO, age 32, ANDREA STALKS, age 42, EBONY STEWART, age 32, CORTAZ WILLIAMS, age 23, and DANIELLE ANDERSON, age 36, were indicted Friday, September 21, 2018 by a federal grand jury for charges stemming from their arrest in St. John the Baptist Parish earlier this year.
Count 1 of the Indictment charges DUNMILES, a former employee at a medical clinic in Laplace, and MELANCON with conspiracy to possess and possess with the intent to distribute illicitly obtained prescription medications, including dextroamphetamine/adderall, a Schedule II drug controlled substance, and promethazine with codeine, a Schedule V drug controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. Count 2 of the Indictment charges DUNMILES, MELANCON, PERRILLOUX, STALKS, STEWART, TUCO, WILLIAMS, and ANDERSON with conspiracy to acquire or obtain possession of the prescription medication by misrepresentation, fraud, forgery, deception, or subterfuge, in violation of Title 21, United States Code, Sections 843(a) and 846.
U.S. Attorney Peter G. Strasser reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Peter G. Strasser also praised the work of the St. John the Baptist Parish Sheriff’s Office Special Operations Division and the Drug Enforcement Administration’s Tactical Diversion Squad (TDS) in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
Eagle Butte Man Sentenced for Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Possession of a Firearm by A Prohibited Person was sentenced on September 17, 2018, by U.S. District Judge Roberto A. Lange.
Christian Kersten, age 30, was sentenced to 24 months in federal prison, followed by 3 years of supervised release, forfeiture of the firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kersten was indicted by a federal grand jury on February 14, 2018. He pled guilty on July 10, 2018.
The conviction stemmed from an incident that occurred on January 22, 2018, when a Cheyenne River Sioux Tribe officer made a traffic stop and Kersten was on occupant of the vehicle. Following a search of the vehicle, law enforcement recovered a firearm in the location Kersten had been occupying. Kersten had been convicted of a crime punishable by imprisonment for a term exceeding one year, was a fugitive from justice, and was an unlawful user of and addicted to a controlled substance, making it illegal for him to possess firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Kersten was immediately turned over to the custody of the U.S. Marshals Service.
Dupree Man Charged with Assault of a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
John Darren Johnson, age 31, was indicted on August 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 2, 2018, Johnson did forcibly assault, resist, oppose, impede, intimidate, and interfere with a Cheyenne River Sioux Tribe Police Officer while the officer was engaged in their official duties, and said contact did involve physical contact with the police officer.
The charge is merely an accusation and Johnson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Johnson was released to a third party custodian pending trial. A trial date has not been set.
Drug Policy Office Announces New Counties to Receive Federal Support for Combating Drug TraffickingRead the Press Release
Washington, D.C.—Today, James Carroll, Deputy Director of the Office of National Drug Control Policy, announced the designation of 10 new areas across Kentucky, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, and West Virginia as High Intensity Drug Trafficking Areas (HIDTAs). This designation enables the 10 areas to receive Federal resources to further the coordination and development of drug control efforts among Federal, State, local, and tribal law enforcement officers, and allows local agencies to benefit from ongoing HIDTA initiatives that are working to reduce drug trafficking across the United States.
The newly-designated areas are:
- Allegheny, Beaver, and Washington Counties in Pennsylvania as part of the Ohio HIDTA
- Atlantic County in New Jersey as part of the Liberty Mid-Atlantic HIDTA
- Butler County in Ohio as part of the Ohio HIDTA
- Charleston County in South Carolina and the Eastern Band of Cherokee Indian Reservation in North Carolina as part of the Atlanta/Carolinas HIDTA
- Mineral County in West Virginia as part of the Washington/Baltimore HIDTA
- Montgomery and Powell Counties in Kentucky as part of the Appalachia HIDTA
“Drug traffickers are fueling the opioid crisis and poisoning our communities, so we have to be relentless in bringing them to justice,” Carroll said. “This new funding will allow law enforcement to disrupt trafficking operations in key areas so we can save lives, strengthen our communities, and safeguard our country.”
The HIDTA program was created in 1988 and serves as a catalyst for coordination among Federal, State, local, and tribal law enforcement agencies operating in areas determined to be critical drug trafficking regions. Law enforcement organizations working within HIDTAs assess drug-trafficking problems and design specific initiatives to decrease the production, transportation, and distribution of drugs.There are 29 HIDTAs located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
Department of Justice, EPA Settle with Derive Systems over Aftermarket Emissions Defeat Devices in VehiclesRead the Press Release
Today, the U.S. Department of Justice and U.S. Environmental Protection Agency (EPA) announced a settlement with Derive Systems (Derive) addressing the sale of approximately 363,000 aftermarket products which the United States alleges were designed, in part, to defeat the emissions control systems of cars and trucks in violation of the Clean Air Act.
Over a span of multiple years, Derive sold products, including custom engine tuning software and parts, online and at distributers across the nation under the brand names of “Bully Dog” and “SCT” for use in many types of gasoline and diesel-fueled cars and trucks. Under the terms of the settlement, Derive will spend approximately $6.25 million to bring the company and its products into compliance with the Clean Air Act. Derive will also pay a civil penalty of $300,000.
“For decades, Americans have worked hard to significantly reduce harmful emissions from cars and trucks. Tremendous progress has been made and the air is much cleaner today across the nation. Unfortunately, not everyone is playing by the rules. Today’s settlement will bring Derive Systems and its aftermarket products into compliance with the Clean Air Act, and demonstrates to other manufacturers that products designed to unlawfully thwart vehicle emissions control systems will not be tolerated,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partners at EPA to hold companies who violate environmental laws accountable, and to protect clean air for all Americans.”
“Manufacturers and sellers of automotive emissions control defeat devices should stand up and take notice of this settlement,” said Susan Bodine, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA will protect air quality by vigorously enforcing the Clean Air Act’s prohibition on these devices.”
Derive manufactured and sold custom tuning software designed to access and overwrite the original vehicle manufacturer’s software. Vehicle manufacturers design vehicle software to reduce air pollution, monitor the vehicle’s on-board diagnostics of emissions controls, and otherwise comply with the Clean Air Act. Derive’s software enabled the user to remove emission control components that reduce tailpipe emissions, including catalysts, diesel particulate filters, exhaust gas recirculation systems, elements of on-board diagnostic systems, and other elements of design certified by vehicle manufacturers to comply with the Clean Air Act.
In addition, Derive sold parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine manufacturer to comply with Clean Air Act emission standards. These handheld products—commonly known as “tuners”—enabled the user to easily turn off emission controls installed and certified by vehicle manufacturers to comply with the Clean Air Act.
Under the terms of the settlement, Derive must stop introducing new noncompliant tuners into commerce and retrofit existing tuners so that they comply with the Clean Air Act. All new and existing tuners offered for sale must have a reasonable basis demonstrating that the use of the products will not adversely affect vehicle emissions. Besides tuners, Derive must limit access to key emission control parameters in their custom tuning software and create a customer verification program for users of the custom tuning software, which includes training about vehicle functions, emission controls, and the Clean Air Act requirements. Derive must stop any marketing that would provide information on how consumers can defeat emission controls in their vehicles, and work with their national distributors to prevent the packaged sale of their products with companion defeat devices. Derive must train their employees to comply with the Clean Air Act. Derive must also pay a penalty of $300,000 based on the company’s demonstrated limited ability to pay a larger amount.
The proposed settlement is subject to a 30-day public comment period and final court approval, and will be lodged in the U.S. District Court for the District of Columbia. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
Department of Justice will Award more than $10 Million to Support Crime Reduction Efforts in Jurisdictions across the United States, including over $1.1 Million to MemphisRead the Press Release
Memphis, TN – Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local, tribal law enforcement departments, agencies, and their partners who are fighting violent crime in jurisdictions across the United States.
The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.
Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana, $634,971. Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
U.S. Attorney D. Michael Dunavant said, "The Department of Justice is committed to providing meaningful resources to strategically combat violent crime and firearms offenses. We are pleased that Memphis has been selected as a Public Safety Partnership site and we appreciate the commitment of Attorney General Sessions, the Bureau of Justice Assistance, and ATF in providing over $1.1 million in grant funding to equip law enforcement and prosecutors to more effectively deal with violent crime committed with firearms. PSP’s technical and strategic support has already contributed to the reduced violent crime rates that we have experienced. The enhanced financial support from this grant announcement is greatly needed to efficiently combat violent crime in the Memphis community, which will impact the entire Western District of Tennessee as a whole. We applaud our local law enforcement partners at the Memphis Police Department, the Shelby County Sheriff’s Office, and the Shelby County District Attorney General, for their commitment to this partnership and continued utilization of these resources. We look forward to using the NIBIN technology and the Crime Gun Intelligence Center to respond to and solve shooting incidents, and to remove violent offenders from the streets of Memphis."
The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.
This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.
Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.
Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at www.bja.gov.
Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.
Department of Justice Will Award More Than $10 Million to Support Crime Reduction EffortsRead the Press Release
Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local and tribal law enforcement departments and agencies and their partners who are fighting violent crime in jurisdictions across the United States.
The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.
Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana, $634,971. Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.
This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.
Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.
Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at: www.bja.gov
Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.Convicted Felon Found Guilty of Possessing a Firearm after Opening Fire on Family MembersRead the Press Release
Memphis, TN – A federal jury has convicted a local man for illegally possessing a firearm. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty verdict today.
According to the information presented in court, on May 27, 2017, at approximately 7:00 p.m., Leon Ward, 33, of Memphis, drove his blue Chevrolet Impala to the 1900 block of Clovia Lane, where he displayed a .40 caliber pistol fromthe window of the vehicle. Ward then got out of the car and began firing shots in the area of several of his cousins, his brother, and three-year-old nephew.
On Friday, September 21, 2018, a federal jury convicted Ward on one count of possessing a firearm after being a convicted felon, in violation of Title 18, U.S.C., § 922(g).
U.S. Attorney D. Michael Dunavant said, "This is precisely the type of violent gun offender that threatens lives and public safety in Memphis. This brazen and recidivist violent behavior must be met with swift and significant punishment. As a result of this conviction and continued prosecution, the citizens of Memphis and West Tennessee are safer. Gun Crime is Max Time."
Leon Ward is currently serving a 42-month sentence for violating the terms of his supervised release. Ward is also facing additional federal charges involving an unrelated robbery attempt and use of a firearm in June of 2017. That indictment was returned by a federal grand jury earlier this year.
Sentencing is set for December 14, 2018, before U.S. District Court Judge John T. Fowlkes Jr. Ward faces up to 10 years imprisonment on this offense.
This case was investigated by the Project Safe Neighborhoods Task Force; Memphis Police Department and Shelby County District Attorney General’s Office and the U.S. Attorney’s Office.
Special Assistant U.S. Attorney Bryce Phillips and Assistant U.S. Attorney Bayonle Osundare are prosecuting this case on the government’s behalf.
Career Criminal Sentenced to Nearly 16 Years in PrisonRead the Press Release
SAVANNAH, GA: After almost three decades of committing violent crimes, a Savannah man has been sentenced to nearly 16 years in federal prison for weapons possession.
Harry Scott, 45, was convicted of being a felon in possession of a firearm and sentenced to 188 months in prison by U.S. District Court Judge William T. Moore Jr., and to five years of supervised release after completion of his sentence. There is no parole in the federal system.
Scott was arrested Jan. 18, 2018, after an armed standoff with Savannah police officers. Those charges are being prosecuted in the state system.
Scott’s violent, 27-year criminal record includes charges of armed robbery, statutory rape, aggravated assault and multiple drug offenses, along with an extensive history of violating probation. After his most recent arrest, he caught the attention of federal prosecutors under Project Ceasefire, an initiative designed to eliminate gun violence, and Project Safe Neighborhoods, which fights violent crime through inter-agency partnerships. During sentencing in federal court, Scott was deemed to be a career criminal and thus received an enhanced sentence.
“When violent criminals like Harry Scott are allowed to terrorize neighborhoods, citizens understandably worry that their safety is being ignored,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Through such programs as Project Safe Neighborhoods and Project Ceasefire, we are dedicated to taking people like Scott off the street and reassuring residents that the sanctity and security of their communities is once again a priority.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, along with the Savannah Police Department and SWAT team. Assistant United States Attorneys Tania D. Groover and Marcela C. Mateo prosecuted the case on behalf of the United States.
For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Canadian Man Sentenced to 135 Months for Marijuana SmugglingRead the Press Release
ALBANY, NEW YORK – Colin Stewart, age 41, of Elgin, Quebec, Canada, was sentenced today to 135 months in prison for conspiring to smuggle thousands of pounds of marijuana into the United States from Canada through the Akwesasne Mohawk Indian Reservation.
The announcement was made by United States Attorney Grant C. Jaquith and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division.
Following his extradition from Canada, Stewart admitted that he and his co-conspirators smuggled thousands of pounds of marijuana into the United States for distribution throughout the northeastern United States. Stewart admitted to organizing the smuggling, paying co-conspirators, and personally transporting thousands of pounds of marijuana across the St. Lawrence River from Canada into the United States.
Chief United States District Judge Glenn T. Suddaby also ordered Stewart to serve 5 years of post-imprisonment supervised release and pay a $10,000 fine.
The investigation and prosecution of Stewart was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), the United States Border Patrol, Customs and Border Protection Air and Marine Operations, the New York State Police, the St. Regis Mohawk Tribal Police Department, the Akwesasne Mohawk Police Services, and the District Attorneys of Franklin and Clinton Counties.
The case was prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Douglas G. Collyer.
Board Certified Ophthalmologist Agrees to Civil Fraud Settlement in Medicare Fraud InvestigationRead the Press Release
The United States has entered into an agreement to settle civil fraud claims with Dr. Mark Fleckner, a Board Certified Ophthalmologist who maintains a practice in Garden City, New York. The agreement resolves allegations that, in contravention of Medicare regulations and in violation of the federal False Claims Act, Dr. Fleckner administered certain pharmaceutical products that he had purchased overseas, which the U.S. Food and Drug Administration (“FDA”) had not evaluated nor approved for use in the United States (“Unapproved Drugs”). These products included aflibercept (“Eylea”) and ranibizumab (“Lucentis”), which Dr. Fleckner used to treat patients who had wet, age-related macular degeneration or other diseases and conditions of the eye. The United States contends that the Unapproved Drugs were not eligible for reimbursement by Medicare. Under the terms of the civil settlement agreement, Dr. Fleckner will pay a total of $6,955,240.80.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Jeffrey J. Ebersole, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), New York Field Office; and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Region, announced the settlement.
“Dr. Fleckner bypassed the FDA’s regulatory authority by purchasing and administering unapproved pharmaceutical products in violation of Medicare regulations,” stated United States Attorney Donoghue. “The settlement holds Dr. Fleckner accountable for his actions and ensures that Medicare funds will only be used for FDA-approved pharmaceuticals.”
“FDA’s oversight of prescription drugs protects consumers from illicit medicines obtained from unauthorized foreign sources,” stated FDA-OCI Special Agent-in-Charge Ebersole. “We will continue to pursue and bring to justice those who place profits over their patients’ safety.”
“FDA approval provides confidence to millions of patients that drugs are safe when prescribed appropriately,” stated HHS-OIG Special Agent-in-Charge Lampert. “Those administering unapproved medications – as contended in this case – put patients at risk and burden taxpayers.”
The government’s investigation revealed that from at least July 1, 2014 to June 27, 2017, Dr. Fleckner purchased the Unapproved Drugs because they were less expensive than drugs that were approved by the FDA for marketing in the United States. Medicare reimburses physician-administered drugs at a set rate based on the average sales price of the respective FDA approved, physician-administered drug in the United States. Dr. Fleckner was thus able to profit from the “spread” between the reimbursement rates he received based on FDA-approved drugs and the lower amounts he paid for the Unapproved Drugs. The United States contends that the Unapproved Drugs were not eligible for reimbursement by Medicare. The settlement is not an admission of wrongdoing by Dr. Fleckner.
The United States’ investigation was handled by former Assistant U.S. Attorney Kenneth M. Abell of the Office’s Civil Division.
The Defendant:
DR. MARK FLECKNER
Garden City, New YorkAlameda Resident Sentenced to over Five Years in Prison for Selling Prescription Drugs Without A License and Related ChargesRead the Press Release
SAN FRANCISCO – Kenzo Mateo Tokuda was sentenced to 69 months in prison for possessing with intent to distribute alprazolam (commonly known as “Xanax”) and carrying a firearm during and in relation to a drug trafficking crime, announced United States Attorney Alex G. Tse and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down today by the Honorable Haywood S. Gilliam, Jr., United States District Judge.
Tokuda, 24, of Alameda, pleaded guilty to the charges on May 21, 2018. According to his plea agreement, on August 10, 2017, the defendant posted a photograph of alprazolam pills on his social media account as a means of adverting that they were for sale. Tokuda acknowledged that at the time, he had roughly 540 “followers” to his social media account. Tokuda further admitted that on August 11, 2017, he possessed both the pills and a 9 mm pistol. He admitted he possessed the pills with the intent to distribute them and he possessed the firearm for the purpose of protecting himself while he distributed the drugs.
On September 28, 2017, a federal grand jury indicted Tokuda charging him with one count each of possessing with intent to distribute alprazolam, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(2); carrying a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c); being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1); and advertisement of a controlled substance on the Internet, in violation of 21 U.S.C. § 843(c)(2)(A). Tokuda pleaded guilty to the first two counts and the remaining counts were dismissed. According to the government’s sentencing memorandum, Tokuda came to law enforcement’s attention in the Spring of 2017 after he “flagrantly post[ed] photographs and videos of prescription drugs, marijuana, guns, and cash” to his social media account.
In addition to the prison term, Judge Gilliam sentenced the defendant to a three-year period of supervised release. The defendant currently is in state custody on unrelated charges and will begin serving the sentence when he is released from state custody.
Assistant U.S. Attorney Katherine Wawrzyniak is prosecuting the case with the assistance of Theresa Benitez and Linda Love. The prosecution is the result of an investigation by the DEA Tactical Diversion Squad.
21 September 2018
West Columbia Resident Pleads Guilty to Being an Illegal Alien in Possession of a FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Felix Martinez-Melquisdes, age 35, of West Columbia, South Carolina, has entered a guilty plea in federal court in Columbia, to possessing a firearm while being an illegal alien in the United States, a violation of 18 U.S.C. §§ 922(g)(a)(5)(A), 924(a)(2) and 924(e). United States District Chief Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence was presented at the change of plea hearing to establish that Martinez was prohibited from possessing a firearm as the result of being a Mexican citizen who had entered and was living in the United States illegally. The investigation of Martinez began as the result of email and telephone conversations Martinez had with a girl in Kentucky that he had had a relationship with from 7th to 12th grade. The girl was about to graduate from high school and Martinez wanted to pick her up and take her to South Carolina but she did not want to go. Martinez responded by threatening to attend the graduation and shoot everyone there. This resulted in an arrest warrant for Terrorist Threats being issued in Kentucky. Graduation was scheduled for May 19, 2018 and agents with the South Carolina Law Enforcement Division (SLED) arrested Martinez at his job on May 16. At the time of his arrest Martinez was carrying a loaded Glock .40 caliber pistol. U. S. Attorney Lydon stated the maximum penalty for Illegal Alien in Possession of a Firearm is imprisonment for up to 10 years, supervised release of 5 years and/or a fine of $250,000.
This case was investigated by the Lee County Sheriff’s Office, SLED, the Department of Homeland Security and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Walthill Man Sentenced for Domestic Assault by a Habitual OffenderRead the Press Release
United States Attorney Joe Kelly announced that Arthur Marr, 41, was sentenced today in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr., for committing a domestic assault as a habitual offender. Judge Rossiter sentenced Marr to 5 years’ probation.
On January 27, 2018, Marr assaulted his domestic partner on the Omaha Indian Reservation by striking and punching her. At the time of the assault, Marr had two prior convictions for assault of an intimate partner or spouse.
This case was investigated by the Federal Bureau of Investigation.
Violent Felon Sentenced to Statutory Max of 10 Years for Possessing FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara has sentenced Stevie Cavazos (24, Hillsborough County) to 10 years in federal prison for possessing a firearm as a convicted felon. The sentence was the highest permissible under the relevant statute. The court also ordered Cavazos to forfeit the firearms and ammunition that he had possessed, which are traceable to proceeds of the offense. Cavazos pleaded guilty on June 8, 2018.
According to court documents and testimony during the sentencing hearing, Cavazos threatened two women with a sawed-off shotgun. While interviewing the victims, law enforcement officers heard shots coming from Cavazos’s home. They located Cavazos at his home along with the sawed-off shotgun and another rifle. At the time, Cavazos had previous convictions for robbery and battery on a law enforcement officer and, was therefore prohibited from possessing a firearm by federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
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.
V.P. of Sales for North Alabama Compounding Pharmacy Charged in Insurance ConspiracyRead the Press Release
BIRMINGHAM – Federal prosecutors today charged the vice president of sales for Northside Pharmacy, a Haleyville, Ala.-based compounding pharmacy doing business as Global Compounding Pharmacy, with participating in a conspiracy to generate prescriptions and defraud health care insurers and prescription drug administrators out of tens of millions of dollars.
U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr., U.S. Postal Inspector in Charge Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman announced the charges.
The U.S. Attorney’s Office filed a 13-count information in U.S. District Court charging PHILLIP NATHAN MARKS, 49, of Winter Park, Fla., with conspiring between November 2014 and June 2016 to defraud multiple insurance plans including Blue Cross and Blue Shield of Alabama, Medicare, and TRICARE, as well as their prescription drug administrators. The information also charges Marks with 12 counts of health care fraud for submitting fraudulent prescription claims to these entities. Prosecutors also filed a plea agreement with Marks.
“Global Compounding stole from insurance programs, including Medicare and TRICARE, by using a marketing scheme that increased the sales of expensive medications without regard for patient need or medical necessity,” Town said. “Schemes like this drive up health care costs for everyone. The U.S. Attorney’s Office and our law enforcement partners are committed to prosecuting everyone who sought personal enrichment by participating in this pharmacy’s health care fraud.”
The charges stem from a larger investigation that already has resulted in guilty pleas from 13 individuals. Along with Marks, prosecutors also filed charges today against another Global sales representative, bringing to 15 the number of defendants in the case. The U.S. Attorney’s Office charged JODY HOBBS, 45, of Santa Rosa Beach, Fla., in a three-count information alleging conspiracy and health care fraud. Prosecutors also filed an associated plea agreement with Hobbs.
According to the court documents, Global, which described itself as “one of the top three largest compounding pharmacies in the United States,” primarily shipped compounded and other drugs from its Haleyville facility, but did most of its prescription processing, billing and customer service at its “call center” in Clearwater, Fla. The company hired sales representatives who were located in various states and were responsible for generating prescriptions from physicians and other prescribers.
The court documents describe a multi-faceted scheme that focused on obtaining and billing for high-dollar fraudulent prescriptions. In the scheme, Global would identify high-dollar drugs and instruct employees to obtain medically unnecessary prescriptions for themselves and family members. Global incentivized prescribers to issue these fraudulent prescriptions by hiring and paying their family members as sales representatives, and by directing sales representatives to work at practitioners’ offices to have better access to patients and their files. Global employees obtained prescriptions in various other fraudulent ways, including forging prescriptions. Global maximized proceeds on these fraudulent prescriptions by altering them to add or substitute drugs and automatically refilling and billing for them, regardless of patient need. It also routinely waived co-pays to encourage patients to accept unnecessary medications and refills. When insurance plans and their prescription drug managers attempted to police Global’s conduct, Global provided false and misleading information to them, and began billing through affiliate pharmacies. Court filings in Marks’ case note that two such affiliate pharmacies were The Prescription Shop in Haleyville and Tropic Pharmacy in Boca Raton, Fla.
According to the court documents, as vice president of sales, Marks routinely directed sales representatives to obtain medically unnecessary prescriptions for themselves and family members. One such drug was Silapak, which Global itself advertised as “not indicated for children.” Global employees nonetheless submitted Silapak prescriptions for children, some as young as two years old, which Global dispensed and billed. Nine of the health care fraud charges against Marks include multiple counts of fraudulent Silapak prescription billings for children of Global employees.
According to court documents, Global hired Hobbs as a sales representative because he had high-reimbursing health insurance from his other employer. Global billed for multiple medically unnecessary drugs for Hobbs, including a tube of wound care cream that cost $30,812.
The 13 individuals previously charged and who have pleaded guilty are Global Operations Manager Jeffrey South, District Manager Angie Nelson, National Field Trainer and sales representative Bridget McCune, and sales representatives Roddrick Boykin, Joshylyn Bowen, Vanessa Case, Peter Eodice II, Robin Lowry, Kelley Norris and Dawn Whitten, and billers Fermin Alfonso, Stacey Cardozo, and Christopher Nunez.
The maximum punishment for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine.
FBI, USPIS, HHS-OIG, DCIS and IRS-CI investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Don Long, and Nicole Grosnoff are prosecuting.
An information or indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Marks Philip Information Marks Phillip Plea AgreementUSAO NDTX Weekly Roundup -- 9/20/18Read the Press Release
PLEA – Joe Frank Rodriguez, Jr., 46
On Sept. 17, Joe Frank Rodriguez, Jr. of Plainview, Texas, pleaded guilty to embezzlement by a bank employee. Rodriguez admits to embezzling $143,000 from a Texas bank insured by the Federal Deposit Insurance Corporation (FDIC). He now faces up to 30 years in prison and a fine of $1,000,000. The FBI conducted the investigation.SENTENCING – Jose Bryan Gonzalez, 19
On Sept. 18, Jose Bryan Gonzalez of Dallas, Texas, was sentenced to 2 ½ years in federal prison for his role in illegal firearms smuggling. In May, Gonzalez pleaded guilty to one count of possessing a firearm while under felony indictment following an investigation by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) that revealed Gonzalez had bought, through an unindicted coconspirator, over 40 firearms, which the government believes were destined for Mexico.SENTENCING – Chase Matheny, 35
On Sept. 18, Chase Matheny of Fort Worth, Texas was sentenced to 2 ½ years in federal prison for possession of stolen mail. In May, Matheny pled guilty to one count of possession of stolen mail after a Bedford Police officer discovered him with a backpack containing various stolen letters.PLEA – Serafin Sanchez Ruiz, 29
On Sept. 19, Serafin Sanchez Ruiz of Desoto, TX -- a former CareNow nurse -- pleaded guilty to online enticement of a minor. Ruiz admits to luring a 14-year-old girl, via the Whisper app, to sneak out of her house during the night and engage in sexual intercourse with him in March 2017. He now faces a minimum of ten years to life in prison and a $250,000 fine. This case was brought as part of the U.S. Attorney’s Project Safe Childhood initiative, which seeks to combat the growing epidemic of child sexual exploitation on the Internet. United States Secret Service and the Arlington Police Department investigated.PLEA – Jeremey Brown, 38
On Sept. 18, Jeremey Brown of Dunacan, Oklahoma pleaded guilty to breaking out of federal prison. Brown, who was serving time in the Big Spring Federal Correctional Institution for a firearms offense, was spotted jumping into a maroon Nissan Altima near Big Spring on May 19. The U.S. Marshals Service and the Big Spring FCI Special Investigative Services conducted the investigation. Brown’s getaway driver also pleaded guilty to concealing a person from arrest. Release here.PLEA – Christopher Shane Eudy, 41
On Sept. 19, Christopher Shane Eudy – who is currently serving time in state prison for fraudulent use of identification information -- pleaded guilty to use of an unauthorized access device. Eudy admits that in February 2017, he falsified his identity and visited a Aledo, TX store to pick up a $2,000 generator ordered with a stolen credit card number. A group later sold the equipment, and Eudy pocketed a portion of the proceeds. He now faces up to 10 years in federal prison. The Secret Service conducted the investigation.INDICTMENT -- Mohamed Toure, 57 & Denise Cros-Toure, 57
On Sept. 19, a federal grand jury indicted a Texas couple on forced labor and alien harboring charges. The Toure’s allegedly arranged for a child to travel alone from her village in Guinea, West Africa to Southlake, Texas to work for them in their home. For more than 16 years, they demanded she handle childcare, cook, and clean, all with no pay, while isolating her from friends and family. The case is being investigated by the Department of State, Diplomatic Security Services’ Houston Field Office. Release here.PLEA – William Brian Smith, 44
On Sept. 19, 2018, William Brian Smith of Saginaw, TX pleaded guilty to receipt on child pornography charges. Smith admitted to receiving videos of a child engaged in sexually explicit conduct, which were found after his employer discovered images on Smith’s work computer and contacted the police. He now faces up to 240 months in prison and a fine of up to $250,000. Saginaw Police Department and HSI conducted the investigation.PLEA – Joey Lynn Tedford, 53
On Sept. 19, Joey Lynn Tedford of Snyder, TX pleaded guilty to being a felon in possession of a firearm. Tedford admitted to possessing one rifle and one handgun. He now faces up to 10 years in prison and a fine of up to $250,000. As part of the plea, Tedford also agreed to forfeit the firearms to the United States. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation.SENTENCING – Jeffrey Sila
A Kenyan man was sentenced today to more than 7 years behind bars for theft of public funds and aggravated identity theft. Jeffrey Sila, a citizen of Nairobi, allegedly obtained a $76,500 tax return check payable to another individual, then unwittingly sold it to an IRS undercover agent in exchange for $48,000. He was arrested at LAX as he attempted to board a flight for Nairobi, and convicted following a three-day trial in Dallas in September 2017.Two-Time Murderer and Member of West Baltimore’s Violent Pedestal Gardens Gang Sentenced to 25 Years in Federal PrisonRead the Press Release
Baltimore, Maryland –U.S. District Judge Catherine C. Blake sentenced Garrion McCellan, age 30, of Baltimore today to 25 years in prison, followed by 8.5 years of supervised release, for a drug conspiracy and for possession of a firearm in furtherance of a drug trafficking crime causing death. McCellan was part of a drug trafficking operation that operated in and around Pedestal Gardens, an apartment complex located in the 300 block of McMechan Street in West Baltimore. McCellan was also an active member of the Black Guerilla Family (BGF) gang during his participation in the drug conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Garrion McCellan and his fellow members of the Pedestal Gardens gang brought death to West Baltimore--through the drugs they sold and the gun violence they committed,” said United States Attorney Robert K. Hur. “This sentence makes clear that U.S. Attorney’s Office, along with our federal, state, and local law enforcement partners, will bring to justice those who terrorize our city’s neighborhoods.”
“Today’s sentencing is indicative of the success that can be attained when agencies combine resources to remove violent drug distributors off the street,” said FBI Baltimore Special Agent in Charge Gordon B. Johnson. “The citizens of Maryland have the FBI’s commitment that we will continue to aggressively investigate criminal organizations that target our communities with their drug-related violent activity to ensure they are held accountable and removed from their neighborhoods."
According to his plea agreement and other court documents, from at least July 2016 through April 28, 2016, MCellan conspired with others, including Pedestal Gardens gang leader DeAndre Smith, and gang members Jamal Carter and Dymir Rhodes, to distribute heroin and fentanyl in and around Pedestal Gardens. Smith, Carter, Rhodes, and others maintained a “stash” house in Catonsville, Maryland to store drugs and drug proceeds, and to process and package drugs for distribution. Rhodes supplied McCellan with “packs” of heroin and/or fentanyl, which McCellan redistributed to drug users at Pedestal Gardens. Each “pack” typically contained between 25 and 50 gel capsules of the drugs, totaling approximately 2.5 to 5 grams. McCellan and other co-conspirators routinely distributed 40 to 50 packs of heroin and fentanyl in one day.
McCellan admitted that sometime before August 10, 2015, Smith ordered McCellan to kill a drug dealer who was encroaching on their organization’s drug territory. On August 10, 2015, McCellan, Smith, and Rhodes went to the 1700 block of McCullough Street where they located the drug dealer outside a corner store. McCellan shot the drug dealer several times, killing him. Another person was found shot in the corner store, but survived.
As detailed in his plea agreement, on October 7, 2015, McCellan shot another individual at the direction of Smith, who was disrupting the organization’s drug operation by robbing drug dealers in the area. On October 7, 2015, McCellan and Carter contacted the individual using the ruse that they wanted help to rob other drug dealers. McCellan and Carter arranged to meet the victim in the 1400 block of Druid Hill Avenue. While the victim was putting on gloves in preparation for the purported robbery, McCellan shot the victim multiple times at close range, killing him.
McCellan admitted that he expected to receive something of value from Smith in return for the two killings. McCellan also admitted that during his participation in the conspiracy he and his co-conspirators distributed between one and three kilograms of heroin.
Co-Defendants:
Deandre Smith, age 28, of Baltimore, pleaded guilty to the drug conspiracy.
Sentenced to 25 years in federal prison;Jamal Carter, age 24, of Baltimore, previously pleaded guilty to the drug conspiracy.
Sentenced to 11 years in federal prison;Dymir Rhodes, age 32, of Baltimore, pleaded guilty to the drug conspiracy. Sentenced to 10 years in federal prison.
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.
United States Attorney Robert K. Hur commended the FBI, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Daniel C. Gardner and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Men Plead Guilty to Violent Armed Robbery of Jewelry Store in Downtown BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, Darryl Odom and Lashawn Williams pleaded guilty to Hobbs Act Robbery and brandishing a firearm during a crime of violence in connection with the May 25, 2017 gunpoint robbery of a jewelry store located at 60 Court Street in Brooklyn. Odom also pleaded guilty to the February 10, 2017 Hobbs Act Robbery of Eleven, another jewelry store located in Brooklyn. The plea proceeding took place before Magistrate Judge Lois Bloom. Previously, co-defendant Kenneth Davis pleaded guilty to Hobbs Act Robbery and use of a firearm during a crime of violence, and Shaka Davis pleaded guilty to Hobbs Act Robbery, for their roles in the 60 Court Street robbery.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
At approximately 5:15 p.m. on May 25, 2017, Williams and Odom entered the 60 Court Street store disguised as construction workers. Kenneth Davis, also disguised as a construction worker, stood watch outside, and Shaka Davis waited in a getaway car. Inside the store, one of the robbers pistol-whipped the store owner, and the robbers stole hundreds of thousands of dollars in cash and jewelry.
When sentenced, Odom and Williams each face a mandatory minimum of seven years in prison and up to life in prison. Kenneth Davis faces a mandatory minimum of five years in prison and up to life in prison. Shaka Davis faces up to 20 years’ imprisonment.
The case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Josh Hafetz is in charge of the prosecution.
The Defendants:
DARRYL ODOM
Age: 54
Residence: Bronx, New YorkLASHAWN WILLIAMS (also known as “Ron Johnson”)
Age: 50
Residence: Bronx, New YorkKENNETH DAVIS
Age: 53
Residence: Brooklyn, New YorkSHAKA DAVIS
Age: 30
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-432 (S-1)
Two Bennington County Men Charged with Cocaine and Cocaine Base DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that James O’Dell, 54, and Robin Buell, 50, both of Bennington County, VT appeared today in United States District Court in Burlington, following their arrests for conspiracy to distribute cocaine and cocaine base.
According to court documents, the Vermont Drug Task Force and the Federal Bureau of Investigation conducted an investigation into the distribution of cocaine and cocaine base in the Bennington, Vermont area. During the investigation, O’Dell was identified as a significant source of cocaine in the Bennington, Vermont area. On four separate occasions, O’Dell delivered cocaine to Robin Buell, who sold the cocaine to a Vermont Drug Task Force informant.
On September 13, 2018, the Vermont Drug Task Force and the FBI arrested O’Dell and executed a federal search warrant at O’Dell’s Bennington home. In O’Dell’s home, law enforcement found approximately 360 grams of cocaine base, 386 grams of cocaine and 4 lbs. 6.5 oz. of marijuana. The total street value of the cocaine found in O'Dell's residence is $74,600. A search of one of O’Dell’s vehicles yielded a total of $24,961.00 in cash.
O’Dell appeared before U.S. Magistrate Judge John M. Conroy on September 14, 2018 on charges of conspiracy to distribute cocaine base and conspiracy to distribute cocaine. He was remanded to the custody of the U.S. Marshals Service pending further proceedings in the case. On September 18, 2018, O’Dell was released on pre-trial conditions that include, but are not limited to, surrendering his passport, drug testing, and reporting regularly to pretrial services.
On September 17, 2018, Robin Buell was arrested at his home in Bennington. Buell appeared before U.S. Magistrate Judge John M. Conroy on September 18, 2018 and was remanded to the custody of the U.S. Marshals Service. On September 19, 2018, Buell was released on pre-trial conditions that include, but are not limited to, drug testing and reporting regularly to pretrial services.
United States Attorney Christina Nolan stated: “This case is an outstanding example of how Vermont law enforcement officers at the federal, state, local, and county level come together to root out dangerous drug trafficking from our communities. Law enforcement at all levels understand that there is suffering in every corner of our state and we will continue to collaborate and deploy resources accordingly. Because of this extraordinary team effort, two drug dealers are out of business, nearly $75,000 in addiction-based profit has been cut short, and Bennington County is safer.”
“These arrests demonstrate our overall strategy and relentless determination to eradicate drugs in our community,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigations. “We are proud to work side by side with the Vermont State Police, Bennington Police, and the U.S. Attorney's Office to bring these individuals to justice.”
The charges against O’Dell and Buell are merely accusations and the defendants are presumed innocent unless and until they are proven guilty.
In addition to the Vermont Drug Task Force and the FBI, members from the Vermont State Police-Shaftsbury, Bennington Police Department, and the Bennington County Sheriff's Department assisted with the arrest and search warrant. The Bennington County State’s Attorney’s Office also provided valuable assistance.
O’Dell is represented by David L. McColgin. Buell is represented by Karen R. Shingler. Assistant U.S. Attorney Andrew C. Gilman represents the United States.
Tonawanda Man Pleads Guilty to Offering Synthetic Cannabinoids for SaleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Salleh Dubaishi, 43, of Tonawanda, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to a possession with intent to distribute AB-FUBINACA and XLR-11, synthetic cannabinoids. The charge carries a maximum penalty of 20 in prison and a fine of $1,000,000.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in November of 2015, New York State Department of Taxation and Finance inspectors encountered the defendant at Pyramid Express HSD, a store located at 102 Hoyt Street in Buffalo, during a routine inspection of the store’s tobacco and cigarette inventory. The inspectors recovered 529 packages of suspected synthetic cannabinoids, which were labeled “Geeked Up;” “Strawberry Scooby Snax;” “Hypnotic;” “Insane;” “AK-47;” or “Kisha Cole.” The inspectors turned over the packages to Homeland Security Investigations for further analysis. HSI confirmed that the defendant possessed and offered, for retail sale AB-FUBINACA and XLR-11, both of which are Schedule I controlled substances.The plea is the result of an investigation by the New York State Department of Taxation and Finance, under the direction of Executive Deputy Commissioner Nonie Manion, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for December 13, 2018, at 12:30 p.m. before Judge Geraci.
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Three Massachusetts Men Charged in Connection with Multi-Year Mortgage Fraud SchemeRead the Press Release
BOSTON – Three Massachusetts men were charged today in federal court in Boston in connection with a 10-year mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.
George Kritopoulos, 46, of Salem, a real estate developer, was arrested today and charged with one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return, and one count of obstruction of justice. Joseph Bates III, 38, of Lynnfield, was charged with one count of conspiracy, three counts of wire fraud, and two counts of bank fraud. David Plunkett, 52, of Lynn, was also charged with one count of bank fraud and one count of aiding in the preparation of a false tax return.
According to the charging documents, from 2006 through 2015, Kritopoulos, Bates, and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by mortgage loans obtained by fraud.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.
Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and losses to the financial institutions of more than $4.3 million.
In addition, Kritopoulos sought to obstruct the federal criminal investigation into the mortgage fraud scheme by encouraging others to make false statements and provide false documents. Kritopoulos also made false statements to federal investigators.
The charges of bank fraud and wire fraud each provide for sentences of no greater than 30 years in prison and five years of supervised release. The charge of obstruction of justice provides for a sentence of no greater than 20 years in prison and five years of supervised release. The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release. The charge of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison and one year of supervised release. Each charge also carries a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Economic Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Pleads Guilty to Felony for Lying About His Financial Situation on Restitution PaperworkRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Jason Anthony Martinez (38, Tampa) has pleaded guilty to making false statements to the U.S. Attorney’s Office’s Financial Litigation Unit. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Martinez was previously convicted in a mortgage-related fraud case and ordered to pay $3,008,551.01 in restitution. On October 24, 2017, Martinez signed and submitted a Financial Disclosure Form, upon which he falsely claimed a net income that was approximately half his actual net income and failed to disclose a number of credit accounts. This false information materially and adversely affected the resulting restitution-related payment calculations in his prior case.
U.S. Attorney Chapa Lopez stated, “Pursuant to the Crime Victims' Rights Act of 2004, federal crime victims have the right to full and timely restitution. Our Financial Litigation Unit is dedicated to investigating defendants’ ability to meet their restitution obligation and collecting such restitution in compliance with federal law. Criminal defendants must understand that the United States Attorney’s Office actively pursues the collection of restitution.”
The U.S. Attorney’s Office, recognizing the critical importance of recovering restitution for victims, has a Financial Litigation Unit that collects criminal monetary penalties, including restitution, imposed on criminal defendants by the U.S. District Court as part of his or her sentence. One of the tools used by the Unit to collect restitution is the Financial Disclosure Statement, which requires defendants to truthfully disclose, among other things, their income, expenses, assets, and liabilities.
This case was investigated by the U.S. Attorney’s Office’s Economic Crimes Section. It is being prosecuted by Assistant U.S. Attorney Thomas N. Palermo.
Syracuse Woman Pleads Guilty to Defrauding Federal GovernmentRead the Press Release
SYRACUSE, NEW YORK – Linda Sue Parnell, age 63, of Syracuse, pled guilty yesterday in federal court in Utica to four counts of wire fraud for falsely obtaining more than $70,000 from the U.S. Department of Labor for mileage reimbursement claims between 2010 and 2016, announced United States Attorney Grant C. Jaquith and Special Agent-in-Charge Sean J. Smith, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office.
In pleading guilty, Parnell admitted that after claiming to have sustained a back injury while working at a Veterans Affairs hospital she was approved to receive compensation benefits from the U.S Department of Labor relating to her claim. Specifically, the Department of Labor authorized Parnell to seek reimbursement for a membership to the YMCA of Greater Syracuse and to seek reimbursement for miles driven to and from the YMCA for the purpose of exercising to strengthen her back. The Department of Labor also authorized Parnell to seek reimbursement for miles driven to and from covered medical appointments. As part of her guilty plea yesterday, Parnell admitted that she defrauded the Department of Labor by submitting reimbursement claims for trips that she did not actually make to the YMCA, and by significantly inflating the mileage for those trips she did take to the YMCA and also to covered medical appointments. Specifically, Parnell claimed to have visited the YMCA more than 1,700 times between 2010 and 2016, though she actually visited the YMCA on approximately 50 occasions during this time. The investigation established that Parnell claimed to visit the YMCA on days she was actually traveling out of state, including dozens of times over a several-month period during which she resided in Pennsylvania. In total, the loss to the U.S. Department of Labor and the U.S. Department of Veterans Affairs exceeded $70,000.
The charges to which Parnell pled guilty yesterday carry a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Parnell will be sentenced in Utica on January 24, 2019, by United States District Judge David N. Hurd, who presided over Parnell’s change of plea hearing yesterday.
This case was investigated by U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, and is being prosecuted by Assistant U.S. Attorneys Michael F. Perry and Tamara Thomson.
Syracuse Man Pleads Guilty to Possessing Pistol as a FelonRead the Press Release
SYRACUSE, NEW YORK – Nashon T. Nance, 21, of Syracuse, pled guilty yesterday in federal court to possessing a pistol as a convicted felon, announced United States Attorney Grant C. Jaquith, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)-New York Field Division, and Syracuse Police Chief Frank Fowler.
As part of his guilty plea yesterday, Nashon T. Nance admitted that he possessed a Smith and Wesson .45 caliber revolver on May 11, 2018, when he was arrested by Syracuse Police at 111 Smith Lane, Syracuse. Police were called to this location by a female who said that Nance had threatened her with a pistol. Nance was, at that time, on New York State Parole, having been previously convicted of the felony offense of Criminal Possession of a Controlled Substance in the Third Degree in Cayuga County Court in November 2016.
Sentencing is scheduled for January 23, 2019. The charge to which Nashon T. Nance pled guilty carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Syracuse Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Sentencings for September 13, 2018Read the Press Release
MICHAEL BURTON LEE WILLIAMS, 40, of Casper, Wyoming was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 13, 2018 for conspiracy to distribute methamphetamine and use of a firearm during and in relation to a drug trafficking crime. Williams was arrested in Casper, Wyoming. He received one hundred eighty one months of imprisonment, to be followed by sixty months of supervised release. The Wyoming Division of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the D.E.A. investigated this case.
MELVIN EDWARD JEFFERSON, 32, of Fort Worth, Texas was sentenced by Chief Federal District Court Judge Scott W. Skavdahl on September 13, 2018 for interference with interstate commerce by means of robbery and aid and abet, use and brandish a firearm during and in relation to a crime of violence, and felon in possession of a firearm. Jefferson was arrested in Cheyenne, Wyoming. He received one hundred fifty months of imprisonment, to be followed by sixty months months of supervised release, and ordered to pay restitution in the amount of $1,409.00 and a $300.00 special assessment. The Gillette Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this 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.
BRICE ASHTON CARTER, 34, of Cheyenne, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on September 13, 2018 for counterfeiting and forging obligations or securities of the United States and felon in possession of a firearm. Carter was arrested in Cheyenne, Wyoming. He received eighty-four months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay an $800.00 fine, and a $200.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
Saratoga Springs Man Admits Receiving Child Pornography over Encrypted Messaging ApplicationRead the Press Release
ALBANY, NEW YORK – Benjamin J. Varieur, age 33, of Saratoga Springs, New York, and formerly of Brunswick, New York, pled guilty today to receiving child pornography via an encrypted messaging application on his phone.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Varieur admitted that from March 22, 2018 to March 25, 2018, he used the Wickr Me messaging application to receive child pornography over the internet from another man. Varieur, using the name “bigman6012,” requested and received dozens of images of child pornography, including images depicting the sexual abuse of children as young as 2 years old.
Varieur, who has been detained since his arrest in April, faces at least 5 years and up to 20 years in prison, to be followed by post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced in January by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Varieur would also have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Colonie Police Department. The case is being prosecuted by Assistant United States Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Salvadoran National Indicted for Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A Salvadoran national was indicted yesterday in federal court in Boston for failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Melvin Velasquez, 34, was indicted on one count of failure to register as a sex offender. Velasquez was charged by complaint in August 2018 and has been in custody since.
According to court records, in 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in jail. Velasquez was subsequently required to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was determined to be illegally present in the United States, was sentenced on the rape charge, and, upon completion of his sentence in 2008, deported to El Salvador.
Sometime thereafter, Velasquez returned to the United States and assumed a false identity. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his A-file and from his 2007 New York rape conviction. Law enforcement then queried the Massachusetts Sex Offender Registry Board and determined that Velasquez had not registered, as required by law, in Massachusetts.
The charge of failure to register provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 fine. Velasquez will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Robbery Crew Shooter Responsible for Killing Loris, SC Store Owner Sentenced to Fifty-Five Years ImprisonmentRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that yesterday, United States District Judge Brian Harwell sentenced Jonathan Stefan Vanderhorst, age 23 of Tabor City NC, to 660 months (55 years) of incarceration as a result of his convictions for Conspiring to Commit Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951; Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951; Felon in Possession of Ammunition, a violation of Title 18 U.S.C. § 922(g); and Discharging a Firearm in Furtherance of a Crime of Violence, a violation of Title 18 U.S.C. § 924(c). In addition to Vandershorst, his co-conspirators, Jim Tracy Miller age 28, and Demetrius Altman age 39, both of Tabor City, NC, were sentenced to 262 months and 168 months respectively for violations of Conspiring to Commit Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951 and Hobbs Act Robbery, a violation of Title 18 U.S.C. § 1951.
The evidence presented at the guilty plea and sentencing hearings established that on May 3, 2016, Altman drove Miller and Vanderhorst to rob the Clarendon, NC Post Office. Upon arrival, Altman waited in the vehicle and Miller and Vanderhorst entered the Post Office. Vanderhorst jumped the counter, brandished a firearm, and struck the Post Office Clerk, the sole occupant of the post office. Ultimately, Vanderhorst and Miller stole $284.00 and the Clerk’s cell phone and left in Altman’s vehicle.
Thirteen days later, on May 16, 2016, Altman drove Miller and Vanderhorst from Tabor City, NC to Loris, SC to rob the Loris Market and Beverage store. Again, Altman stayed in the vehicle and Vanderhorst and Miller entered the store. The only occupants of the store were the owners, a husband and his wife, both of whom were working behind the checkout counter. After entering, Vanderhorst fired a shot at the female victim, fortunately missing her. Vanderhorst then approached the counter and fired another shot up into the ceiling. Thereafter, the store owner took the money out of the register and passed it to Vanderhorst who took the money handed it to Miller. Vanderhorst then turned and fired two shots, striking and ultimately killing the store owner.
The case was investigated by the Federal Bureau of Investigation, United States Postal Inspection Service, the Horry County Police Department, and the Loris City Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorneys Will Lewis, Jim May and Special Assistant United States Attorney and Chief Deputy of the Horry County Solicitor’s Office Scott Hixon prosecuted the case.
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Rhode Island Man Sentenced for CyberstalkingRead the Press Release
PROVIDENCE, RI – A North Smithfield, R.I., man who repeatedly sent emails and text messages to a former girlfriend threatening, in specific and horrifying detail, to harm or kill her and her family was sentenced today to 41 months in federal prison on cyberstalking charges, announced United States Attorney Stephen G. Dambruch and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Howard S. Bishop, 39, was arrested in Rhode Island by FBI agents in January 2018, approximately four months after relocating from Texas to his family’s home in North Smithfield.
The threats from Bishop against his former girlfriend in Texas, and her family, were so severe that the woman was placed in FBI protective custody until Bishop was arrested. Her family hired around-the-clock armed security to guard their home.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Bishop to serve 3 years supervised release upon completion of his term of incarceration. Bishop pleaded guilty in May to transmitting in interstate commerce communications containing threats to injure another person, and with harassing or intimidating another person, using an interactive computer service or electronic communication service, that placed a person in reasonable fear of death or serious bodily injury and caused substantial emotional distress.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 33 – 41 months. The government recommended the Court impose a sentence of 41 months in prison.
According to court records, in February 2011, a former girlfriend of Bishop obtained a protective order against him in Travis County, TX, after their relationship ended. After the relationship ended, Bishop engaged in an endless pattern of abusive and threatening behavior towards the woman. In January 2012, Bishop was found guilty of violating the order and received a sentence of two years’ probation. In December 2017, a misdemeanor warrant was issued in Travis County for the arrest of Bishop for again violating the protective order.
According to court documents, beginning in November 2016, and continuing until his arrest in Rhode Island in January 2018, Bishop sent hundreds of harassing and threatening messages via the Internet to the former girlfriend and her family. They expressed extreme fear for their safety.
Bishop has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI.
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Resident of Texas Sentenced to 71 Months in Prison for Fraud and Weapons OffensesRead the Press Release
CONCORD - Steven Orr, 53, of Grapevine, Texas, was sentenced on Thursday to 71 months in prison for two wire fraud offenses and unlawful possession of firearms, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, in June of 2017, Orr offered to sell four loaders to a company in Windham, New Hampshire for $120,000. Unaware that Orr did not own the loaders or have authority to sell them, the Windham company arranged for a third party to inspect the loaders and then caused $120,000 to be electronically transferred from its bank account in New Hampshire to Orr’s personal bank account in Texas.
In August 2017, Orr agreed to sell 21 cranes owned by a company in Joliet, Illinois to a company in Lemont, Illinois, for $2.2 million. Unaware that Orr did not have authority to sell the loaders, the Lemont company transferred a $550,000 deposit for the transaction from its bank account in Chicago, Illinois to Orr’s account in Texas.
The court records also reveal that Orr had prior felony convictions for burglary, grand larceny, larceny of an automobile, possession of a controlled substance, and an attempt to distribute contraband in a prison. Under federal law, it was unlawful for Orr to possess a firearm after his first felony conviction. Nevertheless, when Special Agents from the FBI arrested Orr last September, they found a Sig Sauer .40 caliber pistol and a Taurus .380 caliber pistol in a safe that was inside a recreational vehicle Orr was renting.
Orr previously pleaded guilty on April 5, 2018.
“I am grateful to the FBI for its efforts to stop this defendant’s fraud schemes and bring him to justice,” said U.S. Attorney Murray. “Those who commit fraud in New Hampshire should understand that they will be prosecuted and incarcerated. This defendant’s unlawful possession of guns demonstrates his complete disregard of the law, as well as the substantial risk he posed to the community.”
“Mr. Orr is a convicted felon and con man who clearly hasn’t learned anything from his time in prison. Hopefully with today’s sentencing, he’ll soon learn that the only place that cheating and swindling will get you is behind bars,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “The FBI will continue to seek out fraudsters like Orr, who profit through deception, by targeting hard-working businesses.”
The cases were investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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Queens Man Sentenced to 35 Years’ Imprisonment for Enticing 16-Year-Old Girl to Travel from Abroad to Engage in Sexual ActivityRead the Press Release
Earlier today in federal court in Brooklyn, Sean Price was sentenced to 35 years’ incarceration and 10 years’ supervised release by United States District Judge Nicholas G. Garaufis, following his conviction after trial in December 2017 on four charges: interstate and foreign enticement to engage in sexual activity, interstate and foreign transportation of a minor to engage in sexual activity, a Mann Act violation and attempted sexual exploitation of a child. Restitution to Jane Doe’s guardians will be determined at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the sentence.
“Sean Price preyed upon the vulnerabilities of a young teenage girl, luring her across the world and away from her home for his own illicit purposes. With today’s sentence Price has been accountable for that predatory conduct,” stated United States Attorney Donoghue. “The Price case sends the message that this Office, together with our law enforcement partners, will work tirelessly to identify abusers like Price and prosecute those who would sexually exploit minors to the fullest extent of the law.” Mr. Donoghue expressed his appreciation to the Australian Federal Police, the New South Wales Police Force and the NYPD for their assistance in the investigation and prosecution of this matter, and commends the Australian authorities and the NYPD on the investigation and cooperation that ultimately led to the recovery of the missing girl.
“Now a convicted sexual predator, Sean Price admittedly lured a teenage girl from Australia to Queens, taking advantage of her young spirit and susceptibility,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing should send a strong message to those who seek to sexually exploit children – borders and oceans will not impede the efforts of the global law enforcement community in safeguarding our children and bringing predators to face justice.”
As established during court proceedings, in the fall of 2016, Price established an online relationship with a 16-year-old girl who lived in Australia. By January 2017, they were communicating with each other daily through messages on Facebook, with much of the discussion concerning Price’s desire to engage in sex with the girl, and how she could travel from Australia to join Price in New York City without law enforcement or her parents finding out. The Facebook chat messages demonstrated that Price, who was 39-years-old at the time, openly discussed the girl’s age with her, and Price told her repeatedly that he wanted to be sexually intimate with her.
Price and the girl also discussed obtaining a fake passport so the girl could travel internationally, and Price offered to impersonate the girl’s father to help her get through airport security in the United States. In chat messages, Price told the girl that they would soon be laughing at her parents and when she told Price that she did not need parental permission to fly internationally, Price responded: “So you coming to papa?” After months of planning, Price wired the girl over $900 to purchase a plane ticket to fly to Los Angeles in late March of 2017. Shortly afterwards, on April 11, 2017, the girl flew on a roundtrip ticket from Sydney, Australia to Los Angeles, California, where Price was waiting for her arrival. Price hired a rental car, and drove across the country to Price’s home in Jamaica, Queens.
Price admitted in a post-arrest statement that he and Jane Doe were involved sexually during their cross-country trip and while they were living in Queens until she was found by law enforcement in his home four weeks later. Following her successful recovery by officers of the NYPD, Jane Doe was returned to her family in Australia. In a recent submission to the Court, Jane Doe’s mother recounted the trauma Jane Doe and her family continue to struggle with in the aftermath of the defendant’s actions.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn A. Merkl and Monica K. Castro. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is in charge of the forfeiture.
The Defendant:
SEAN PRICE
Age: 40
Residence: Queens, New YorkE.D.N.Y. Docket No. 17-CR-301 (NGG)
Previously Convicted Sex Offender from Albuquerque Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Russell Young, 39, of Albuquerque, N.M., a sex offender serving a term of supervised release from a prior child pornography conviction, pled guilty yesterday in federal court in Las Cruces, N.M., to new child pornography charges.
The FBI arrested Young on June 15, 2018, on a criminal complaint charging him with distribution and possession of child pornography in Dona Ana County, N.M. According to the criminal complaint, on Oct. 13, 2011, Young was convicted of receiving child pornography, and was sentenced to 77 months of imprisonment followed by ten years of supervised release. The complaint charged Young with violating the terms of his supervised release in March 2017, Oct. 2017, and Nov. 2017, by unlawfully possessing cellular smartphones with internet access. The cellular smartphone seized from Young in Nov. 2017, contained multiple images of child pornography.
During yesterday’s change of plea hearing, Young pled guilty to a felony information charging him with distributing and possessing child pornography. In entering the guilty plea, Young admitted that on Nov. 4, 2017, he sent an image containing child pornography to another individual through social media. Young also admitted that on Nov. 8, 2017, law enforcement located multiple images of child pornography which were stored on Young’s smartphone.
At sentencing, on the distribution charge, Young faces an enhanced penalty of a mandatory minimum term of imprisonment of 15 years and a maximum of 40 years instead of the otherwise applicable penalty of five to 20 years of imprisonment. On the possession charge, Young faces an enhanced penalty of a mandatory minimum term of imprisonment of ten years and a maximum of 20 years instead of the otherwise applicable penalty of a ten-year maximum term of imprisonment. Young faces these enhanced penalties because of his prior child pornography conviction.
This case was investigated by the Las Cruces office of the FBI. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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, visit http://www.justice.gov/psc/.
The case also is being prosecuted the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Physician Convicted of False Billing SchemeRead the Press Release
BOSTON – A physician and former employee of New England Pain Management Associates, Inc. was convicted today by a federal jury of conspiring to falsify patient medical records between May 2012 and May 2013 in an effort to obtain payments from Medicare and commercial insurers for medical services that were not performed.
Moustafa Moataz Aboshady, 36, of Lake Forest, Calif., was convicted on one count of conspiracy to make false statements in connection with health care benefit programs and two counts of making false statements in connection with health care benefit programs.
During the time of the conspiracy, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA had locations in Massachusetts and Rhode Island, and was operated by Fathallah Mashali, a pain management physician. Mashali pleaded guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering and was sentenced in March 2018 to eight years in prison and three years of supervised release.
Aboshady was part of a conspiracy involving Mashali, other members of NEPA, and members of a satellite office in Cairo, Egypt, whose purpose was to falsify medical records and urine drug test results to support claims for payment to Medicare and insurers for services that Mashali did not render.
Part of the conspiracy involved falsification of patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans, and durations of face-to-face interactions with patients exceeding 20 to 40 minutes per appointment, to create the appearance of lengthy and involved patient encounters, when in fact these services did not take place. Aboshady instructed the Cairo office to create false electronic signatures on the encounter notes and how to make the timestamps for those signatures look realistic.
Aboshady was also responsible, in conjunction with the office in Cairo, for the fabrication of urine drug test results with false test dates, so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support urine drug test billing codes submitted to Medicare and insurance companies. In fact, NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored unrefrigerated in large plastic bags and containers.
The charges provide for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Abraham R. George, Senior Litigation Counsel of Lelling’s Civil Division, and David G. Lazarus, Chief of Lelling’s Asset Forfeiture Unit, prosecuted the case.
Philadelphia Man Pleads Guilty to Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Jackson, Miss. – Courtny Orlando Campbell, 27, of Philadelphia, pled guilty today before Chief United States District Judge Daniel P. Jordan III, to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
On February 2, 2017, Agents with the Mississippi Bureau of Narcotics stopped a vehicle driven by Campbell. As Campbell stopped his car, he jumped out and took off running. He was caught a short distance away. Agents found a bag that Campbell tossed as he ran and found methamphetamine, cocaine, marijuana and a set of digital scales. The case is the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, dubbed "Operation Highlife," which began as an operation targeting illegal narcotics distribution in East Central Mississippi that involved the distribution of methamphetamine, cocaine and marijuana. The distribution network encompasses the States of California, Tennessee, Alabama, Georgia and Mississippi.
“Methamphetamine has devastated countless communities due to the dramatic health and public safety consequences that typically accompany its introduction into an area,” said Special Agent in Charge of Homeland Security Investigations New Orleans Jere T. Miles. “Today’s guilty plea stems from an extensive HSI effort with its federal, state and local partners to dismantle a drug trafficking organization that decimated parts of Mississippi and Alabama with methamphetamine smuggled into the U.S. from Mexico. This operation is a testament to the seamless partnership between HSI, the Mississippi Bureau of Narcotics and the Drug Enforcement Administration, and we are thankful for their assistance as well as the U.S. Attorneys’ Offices to improve the lives of law-abiding residents throughout Mississippi and Alabama.”
Campbell will be sentenced by Judge Jordan on January 11, 2019, at 9:00 a.m. and faces a maximum penalty of Life in prison and a $10,000,000 fine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This OCDETF case is a result of a joint investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies include the Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, Mississippi Highway Patrol, United States Attorney's Office Southern District of Mississippi and the United States Marshal’s Service. Assistant U.S. Attorney Erin Chalk is prosecuting the case.