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Monday 6 August 2018
Ocean Springs Woman Sentenced for Trafficking HeroinRead the Press Release
Gulfport, Miss. – Robyn Paige Kisling, 46, of Ocean Springs, was sentenced Tuesday by U.S. District Judge Sul Ozerden to 43 months in federal prison, followed by 3 years of supervised release, for possessing with intent to distribute heroin in Ocean Springs, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Kisling pled guilty on February 15, 2018, to one count of possession with intent to distribute heroin. On April 19, 2016, she sold an ounce of heroin to an individual acting in an undercover capacity in a parking lot in Ocean Springs.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie
Nurse Practitioner Sentenced for Illegally Prescribing Drugs at Substance Abuse Treatment ProgramRead the Press Release
Abingdon, VIRGINIA – An Abingdon Nurse practitioner, who illegally distributed opiates and other prescription drugs while working at a substance abuse program, was sentenced last week to serve 60 months in prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Matthew Justin Sykes, 43, pleaded guilty on May 7, 2018 to one count of conspiring to (a) misbrand a drug in interstate commerce by causing prescription drugs to be dispensed without a valid prescription and (b) illegally distribute Schedule III and IV controlled substances. In addition, he pleaded guilty to eight counts of distributing oxycodone, a Schedule II opiate, one count of distributing alprazolam, a Schedule IV benzodiazepine, and one count of using the United States Postal Service in committing, causing or facilitating a felony drug trafficking offense.
“This medical professional violated the public’s trust by unlawfully dispensing these deadly drugs,” U.S. Attorney Cullen stated. “We will continue to work with our federal, state, and local partners, including Attorney General Mark Herring, to identify and target those in the medical community who put profits before patients, and, in so doing, help fuel the opioid epidemic.”
“The opioid crisis has hit Southwest Virginia as hard as anywhere, and illegal prescription drugs have been a huge part of the problem. As part of our comprehensive approach to the opioid crisis, my team and I have pursued enforcement action against more than 300 medical professionals, like doctors, nurses, and others, who overprescribe, divert, or steal opioids. This conviction wouldn’t have been possible without the strong partnership between my office and U.S. Attorney Cullen’s, and I look forward to continuing our work to make Southwest Virginia safer.”
“Distributing addictive, opioid drugs where there is not a legitimate medical purpose poses a serious threat to the U.S. public health and will not be tolerated,” said Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration's Office of Criminal Investigations, Metro Washington Field Office. “The FDA is committed to bringing to justice those unscrupulous actors who use their access to these powerful drugs as a way to enrich themselves by distributing them without valid prescriptions.”
According to evidence presented at previous hearings, Sykes was employed by Watauga Recovery Center from March 2012 until April 2017, a practice that holds itself out as a substance abuse treatment program. Watauga Recovery Center has locations in Virginia, Tennessee and North Carolina. Sykes worked primarily at Watauga Recovery Center’s Duffield, Virginia, office. Sykes was also employed by E & C Counseling, another practice holding itself out as a substance abuse treatment center, located in Abingdon, Virginia. Sykes had a valid DEA registration number during this time, which was surrendered in May 2017.
Sykes admitted to conspiring with other health care providers and employees at Watauga Recovery Centers, a cash payment practice, to regularly prescribe a combination of buprenorphine, clonazepam, and gabapentin, without a legitimate medical purpose and outside the usual course of professional practice. This included issuing prescriptions to patients knowing there was no legitimate reason to do so, and prescribing three dosage units of buprenorphine per day to patients, knowing that at least one of the three doses would be diverted and sold. In addition, Sykes and his co-conspirators would cause prescriptions to be issued in the name of a prescriber who had not examined the patient.
In addition, on multiple occasions from January 2014 until April 2017, Sykes wrote prescriptions for Schedule II controlled substances in various individuals’ names. These prescriptions were not recorded in regular patient files of Watauga Recovery Center or E & C Counseling. The prescriptions were filled at various pharmacies located in the Western District of Virginia. Some of these prescriptions were filled by Sykes himself without the individual’s knowledge or consent, while others were filled by the individuals, who then gave Sykes part of the controlled substances dispensed by the pharmacies. Sykes has admitted that he wrote the prescriptions and that they were issued without a legitimate medical purpose and beyond the bounds of professional practice.
On October 30, 2017, Sykes received a package at his home in Abingdon, Virginia, delivered by the United States Postal Service, which contained alprazolam, a schedule IV controlled substance. Sykes has stated that he ordered this alprazolam from an anonymous internet source on the “dark web.” He has stated that he had been ordering and receiving controlled substances from several different anonymous sources on the dark web since 2013, including oxycodone, hydrocodone, Adderall, and alprazolam, and that he has given and sold controlled substances ordered on the dark web to other individuals.
This case is part of an investigation by the Food and Drug Administration-Office of Criminal Investigations, Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Drug Enforcement Administration, Tennessee Bureau of Investigation, Virginia State Police, and the United States Postal Inspection Service.
Special Assistant United States Attorney/Virginia Assistant Attorney General Janine Myatt and Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
New Orleans Man Pleads Guilty to Various Drug Trafficking Violations, and with Discharging a Firearm in Furtherance of a Crime of Violence and a Drug Trafficking Crime, Resulting in the Shooting of DEA Task Force Officer Stephen ArnoldRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JARVIS HARDY, age 29, pleaded guilty to Counts One, Two, Three, Four, Five, Seven, and Eight of the Superseding Indictment.
Count One charges the defendant with conspiring to distribute and to possess with the intent to distribute 280 grams or more of a mixture/substance containing a detectable amount of cocaine base in violation of 21 U.S.C. § 846, 21 U.S.C. § 841(a)(1), and 21 U.S.C. § 841(b)(1)(A); Counts Two through Five each charge the defendant with distribution of a quantity of cocaine base in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C); Count Seven charges the discharge of a firearm in furtherance of a crime of violence and a drug trafficking crime; and Count Eight charges possession with the intent to distribute twenty-eight grams or more of cocaine base in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(B).
The guilty plea followed a Drug Enforcement Administration (“DEA”) investigation that revealed beginning no later than January 2015 and continuing until his arrest, the defendant, Jarvis HARDY, distributed crack cocaine virtually every day throughout the streets of New Orleans. As a part of that investigation, DEA made four separate controlled buys of ¼ and ½ ounce quantities of crack cocaine from HARDY over an approximate ten-month timespan. Based on those controlled purchases, an arrest warrant for HARDY, along with a search warrant were obtained.
In the early morning hours of January 26, 2016, a team of law enforcement officers, led by DEA, gathered to prepare for the execution of HARDY’s arrest warrant. DEA TFO Stephen Arnold and several other agents and task force officers knocked and announced their presence and intention to execute the search warrant at 5300 Douglas Street. As TFO Arnold led the team through the house, HARDY fired his Smith and Wesson Model SW40VE, .40 caliber pistol, serial number DVB4809, three times at Stephen Arnold from a few feet away, striking Arnold twice in the neck and arm.
In his home on Douglas Street, HARDY had approximately 1 ½ ounces of crack cocaine, which later tested positive for cocaine base, and $985 in a safe in his bedroom, as well as instruments consistent with the conversion of cocaine hydrochloride to cocaine base, such as a crock pot. HARDY also had a razor blades, a grinder, a mixer, and a digital scale. HARDY additionally possessed two firearms, one of which he used to shoot TFO Arnold, and one which he kept near the safe with his cash and crack cocaine. HARDY’s firearms were a Smith and Wesson Model SW40VE, .40 caliber pistol, serial number DVB4809, and a Ruger Model P95, 9mm pistol, serial number 318-62450.
Stephen C. Arnold was a Jefferson Parish Sheriff’s Detective and was a deputized Drug Enforcement Administration Task Force Officer with the Drug Enforcement Administration New Orleans, Louisiana Field Office.
Although Stephen Arnold survived the shooting, he remains completely incapacitated and receives 24 hour care in an assisted facility.
This prosecution was the result of an intensive joint investigation conducted by Special Agents of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the New Orleans Police Department.
The prosecution has been handled by Assistant U.S. Attorneys Liz Privitera, David Haller, Theodore Carter and Jay Quinlan.
Navy Officer Pleads Guilty to $2.7 Million Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach naval officer pleaded guilty today to his role in a $2.7 million procurement fraud scheme, and to lying on his federal income tax return.
According to court documents, Randolph M. Prince, 45, defrauded the Navy out of over $2.7 million through a procurement fraud scheme in which he, as a member of his Navy unit’s supply staff, steered government contracts to sham companies who were created and run by his friends. Prince had the authority to make purchase requests for military equipment on behalf of his command, and also had the ability to sign for goods when a company delivered them to his unit on the back end.
Prince took advantage of his position to direct purchases to the sham companies, which had been opened for the sole purpose of receiving government contracts from Prince. When a contract landed on the desk of one of these companies, Prince, and others, would generate fraudulent documentation to suggest the company had honored its end of the bargain. With this documentation in hand, the Navy would then pay the company. However, the sham companies never provided the Navy with anything at all. Instead, they distributed the Navy money amongst Prince and his associates.
Prince pleaded guilty to wire fraud and making a false statement in connection with his 2014 tax return. He faces a maximum of 20 years in prison when sentenced on December 3. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Special Assistant U.S. Attorney David A. Layne is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-116.
Modesto Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Everitt Aaron Jameson, 27, of Modesto, today to 15 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney McGregor W. Scott made the announcement.
“There is no place in the United States for terrorists and terrorist sympathizers who threaten innocent people, and the National Security Division will relentlessly seek to identify them and bring them to justice,” said Assistant Attorney General Demers. “Jameson put his fellow Americans at risk by supporting ISIS and planning an attack on behalf of the terrorist organization. This is unacceptable, and I am grateful for the hardworking agents and prosecutors who are responsible for this successful result.”
First Assistant U.S. Attorney Phillip A. Talbert stated: “Protecting our communities from terrorist threats is the Department of Justice’s highest priority. With the assistance of our investigative partners, we will continue to work to prevent such attacks and to vigorously prosecute those who seek to provide material support to terrorist organizations. We are grateful for the hard work of the FBI and the DOJ’s National Security Counterterrorism Division for their teamwork in bringing this case to a just conclusion.”
“This case demonstrates the FBI’s commitment to identifying and disrupting plots to harm the American public. With assistance from our state and local partners, we completed a thorough investigation while ensuring that Jameson would not be able to carry out his plans,” said Special Agent in Charge Ragan, “The public also plays an active role in ensuring the safety of our communities. We encourage members of the public to always say something if they see or hear anything that raises concerns about a possible attack.”
Jameson pleaded guilty on June 4, 2018. According to the plea agreement, between September 2017 and December 20, 2017, Jameson voiced support for ISIS knowing that the organization was engaging in terrorist activity and terrorism. Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.” Jameson also expressed support online for the October 31, 2017, terrorist attack in New York City, as well as other terrorist attacks. In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they needed done here and noted that his time in the military had trained him for combat and war. According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.
Later, Jameson met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS and offered to carry out violent acts and provide financial support for the terrorist organization.
According to court documents, on December 16, 2017, Jameson discussed what he could offer to the cause. Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack. He also noted that he could get PVC pipe, nails, and powder for explosive devices, and he asked for remote timing devices from that person. Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and that explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape. Jameson also offered to provide money to the cause.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker prosecuted the case with Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section.
Mishawaka Man Sentenced to 68 Months in PrisonRead the Press Release
SOUTH BEND – Brendan R. Eiler, 33 years old, of Mishawaka, IN, was sentenced by U.S. District Court Judge Jon E. DeGuilio after pleading guilty of Receipt of Child Pornography, announced U.S. Attorney Kirsch.
The Court imposed a sentence of 68 months imprisonment, 5 years of supervised release following his prison release, and $55,000 in restitution to victims of the crime.
According to documents in the case, between March 2016 and March 2017, Eiler downloaded child pornography from the internet using a program named “e-Mule.” He admitted to possessing approximately 35,079 images and approximately 4,170 videos that portrayed child pornography. Some of these depicted bestiality and sadistic images, and prepubescent children or children under the age of 12.
This case was investigated by the FBI and St. Joseph County Prosecutor’s Cybercrime Unit. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
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Marijuana Grower in Shasta-Trinity National Forest SentencedRead the Press Release
SACRAMENTO, Calif. — Carlos Gutierrez Gonzalez, 23, of Michoacán, Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to four years and two months in prison and ordered to pay $10,000 in restitution to the U.S. Forest Service for growing marijuana on the National Forest and for depredation of Public Lands and Resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gutierrez Gonzalez along with several other men, were growing marijuana in the Shasta-Trinity National Forest to the west of Weaverville, near Limedyke Mountain at an elevation of approximately 2,500 feet. On August 7, 2017, law enforcement officers executed a search of the grow. When they arrested Gutierrez Gonzalez, a loaded .45-caliber handgun was found near him and a bullet for that gun was in his pocket. Over 2,500 marijuana plants were found and eradicated. A camp site was found where the men had camped.
The environmental damage to the grow site was investigated and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems which has investigated over 100 of such public land marijuana grow sites.
The report of the investigation was filed with the court, and it found that at this grow site they found a half-full 33.8 oz. bottle of carbofuran hidden among the fertilizer bags and a bag containing an estimated 20 pounds of powder carbofuran. A food bottle found at the site had been reused and contained a mixture of refried beans and carbofuran (suspected bait for animals). Four cisterns were discovered with stopped-up mountain streams for use in the marijuana grow’s irrigation system with an estimated 4,500 feet of plastic water lines and over 1,500 pounds of soluble fertilizer. The report estimates that the operation used over 15,000 gallons of water per day. Open campsite latrines were found in proximity to waterways which would cause watershed contamination from fecal matter after the next substantial rain. About 1,000 pounds of trash and 500 pounds of plastic pipe were hauled out of the site. Tests on samples of the marijuana plants determined that carbofuran was present in the plant material.
This case was the product of an investigation by the U.S. Forest Service with the assistance of agents from the U.S. Bureau of Land Management, the California Department of Fish and Wildlife, the North State Marijuana Investigation Team and deputies of the Trinity County Sheriff’s Office. Assistant U.S. Attorney Richard Bender prosecuted the case.
Co-defendant Sebastian Martinez Arreola, who had been in the grow site approximately 11 days at the time of his arrest, pleaded guilty to marijuana cultivation charges and was sentenced to 20 months in prison on February 28, 2018. Charges are pending against Armando Mayorga Garcia. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Sentenced to 45 Years for 2009 Newport News MurderRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man was sentenced today to 45 years in prison for his leadership role in the 2009 murder of Louis Joseph Jr., in Newport News.
Mark Xavier Wallace, 37, was convicted following a jury trial on April 17, along with co-defendants Joseph James Cain Benson, of Boston, and Bryan Lamar Brown, of Newport News.
“We will remain steadfast in our fight against violent crime in Tidewater and are increasing our resources as we speak,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Wallace was the leader of a crew that brutally murdered Louis Joseph in his home in 2009. Today’s sentence reflects what happens to those commit heinous crimes of violence. This case is a quintessential example of law enforcement partnerships coming together to fight the scourge of drug violence. I want to thank the prosecutors who brought this matter to trial, the FBI, and the Newport News Police Department for their outstanding work on this difficult case.”
According to court documents, Louis Joseph was beaten and shot multiple times at his Denbigh home while he babysat a five-year-old child. Wallace organized the home invasion and recruited Benson and another individual who traveled from Boston to Williamsburg to commit the home invasion of Louis Joseph to obtain money and drugs. Brown transported the co-defendants to Joseph’s house and also supplied the two firearms to commit the murder. Benson and at least one other man entered the home of Joseph, beat him and shot him multiple times during the robbery.
Benson was sentenced to life in prison on July 24. Brown was sentenced to 45 years in prison on July 19.
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-45.
Man Pleads Guilty to Child Pornography OffenseRead the Press Release
United States Attorney R. Trent Shores announced today that Justin Lee Boyer, 32, of Sapulpa pleaded guilty to Sexual Exploitation of a Child before District Judge Claire V. Eagan.
Boyer admitted that in October of 2017, he persuaded and enticed a 10 year old girl, living outside the state of Oklahoma, to text him sexually explicit pictures of herself. Boyer will be sentenced on November 8, 2018. He faces a mandatory minimum sentence of 25 years, up to a maximum penalty of 50 years in prison and a $250,000 fine. Following prison, he faces a term of supervised release of at least 5 years.
“We will aggressively prosecute sexual predators who victimize our children through child pornography. I am proud of our law enforcement partners who work tirelessly to stop child exploitation,” said United States Attorney Shores.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The charges are a result of an investigation by the Federal Bureau of Investigation, the Jefferson County Sheriff’s Office in Colorado, the Creek County Sheriff’s Office, and the Sapulpa Police Department. Assistant United States Attorneys Jeffrey A. Gallant and Shannon B. Cozzoni handled the prosecution of this case.
Local Assistant United States Attorney Promoted to Lieutenant Colonel in Iowa Air National GuardRead the Press Release
On July 18, 2018, Assistant United States Attorney Tony Morfitt of the U.S. Attorney’s Office in the Northern District of Iowa, was confirmed to be promoted to the rank of Lieutenant Colonel in the Air Force and Iowa Air National Guard.
Lieutenant Colonel Morfitt currently serves as the Staff Judge Advocate for the 132d Wing, Iowa Air National Guard, in Des Moines, Iowa. The 132d Wing trains, deploys, executes, and sustains operations in missions supporting the Nation, State, and Community. The unit’s current missions include remotely piloted aircraft, cyber, and intelligence, surveillance, and reconnaissance missions.
“The Northern District of Iowa United States Attorney's Office is very proud of Lieutenant Colonel Morfitt,” United States Attorney Peter Deegan stated. “As an AUSA and a member of the military, he has served his country with honor and distinction. My office is committed to supporting not only Lieutenant Colonel Morfitt in his continuing military service, but ensuring that all members of the National Guard and Reserves in this district are supported and protected under the Uniformed Services Employment and Reemployment Rights Act.”
Prior to joining the 132d Wing, Lieutenant Colonel Morfitt was on active duty for over four years and was a member of the Air Force Reserves. During his career, he has been stationed in Illinois, Colorado, Kansas, and Iowa. He also completed a one-year remote tour of duty at Osan Air Base in South Korea.
In his civilian capacity, AUSA Morfitt has prosecuted a variety of federal criminal cases since joining the U.S. Attorney’s Office in 2010. During that time, he prosecuted two cases arising out of three murders that happened within six weeks, for which he won an Executive Office for U.S. Attorneys Director’s Award in 2007. In 2016, AUSA Morfitt successfully prosecuted Randy Metcalf, who was convicted by a jury of a racially motivated assault in Dubuque. Metcalf ultimately received the statutory maximum sentence of ten years in prison for committing a hate crime.
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Lincoln County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Lincoln County man pled guilty today to federal drug and gun crimes, announced United States Attorney Mike Stuart. Chad Anthony Wilson, 27, of West Hamlin, entered his guilty plea to possession with intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug crime. U.S. Attorney Stuart commended the investigative efforts of the Hurricane Police Department and the Drug Enforcement Administration.
“Another gun-toting drug dealer is off the streets,” said United States Attorney Mike Stuart. “We are laser-focused on prosecuting cases involving fentanyl distribution – so many West Virginians have died because of this deadly drug.”
Wilson admitted that late at night on January 8, 2018, he was sitting in his Chevy Impala, which was parked across all the dividers in the parking lot of American Inn in Hurricane. A Hurricane police officer approached the car, introduced himself, and saw a bag containing a crystal substance consistent with methamphetamine in the center console of the vehicle. When the officer asked if there were any weapons in the car, Wilson told the officer that he had a gun in the passenger seat, though he refused to hand over the weapon. A backup officer arrived shortly after and secured the gun, later identified as a Taurus, Millennium PT111, 9mm pistol.
Once the weapon was secure, officers asked Wilson if there were any more weapons or narcotics in the vehicle. Wilson told the officer about the bag in the center console. During a search of the vehicle, officers recovered that bag of suspected methamphetamine, as well as another bag containing 18.57 grams of a substance that was analyzed by a Drug Enforcement Administration laboratory and confirmed to be fentanyl.
Wilson faces up to 20 years in prison on the drug charge, followed by a consecutive term of at least five years and up to life in prison when he is sentenced on November 19, 2018.
Assistant United States Attorney Clint Carte is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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 prosecution is also part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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###Laurel Man Sentenced to over 13 Years in Federal Prison for Meth ConspiracyRead the Press Release
Gulfport, Miss. – Jack Benny Hales, 30, of Laurel, was sentenced Thursday by U.S. District Judge Sul Ozerden, Jr. to 157 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Office of Homeland Security Investigations in New Orleans. Hales was also ordered to pay a $5,000 fine.
On January 23, 2018, Hales delivered over 50 grams of 94% pure methamphetamine to a cooperating source in Gulfport, Mississippi. Prior to successfully delivering the methamphetamine, HSI agents learned of Hales’s location. Agents went to the location and blocked Hales’s car in the parking lot. While arresting Hales, agents found the methamphetamine in a bag in his car.
The case was investigated by Homeland Security Investigations and the Mississippi Bureau of Narcotics. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Last of Nine Defendants in Extensive Methamphetamine Trafficking Conspiracy Pleads GuiltyRead the Press Release
A Dubuque man who trafficked pounds of ice methamphetamine pled guilty today in federal court in Cedar Rapids. Samuel Oliver Taylor, III, age 41, of Dubuque, Iowa, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
Taylor was the last of nine defendants charged in the same criminal case convicted for their involvement in a conspiracy to distribute methamphetamine throughout Dubuque. On January 24, 2018, Melissa Marie Petesch, age 30, of Dubuque, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. On March 8, 2018, Jose Juan Ceja, age 25, of Bell Gardens, California, and Michael Scott Boen, II, age 26, of Petosi, Wisconsin, were convicted of conspiracy to distribute methamphetamine. On May 21, 2018, Joshua Allen Carter, age 33, of Dubuque, was convicted of conspiracy to distribute methamphetamine. On May 30, 2018, Keith Richard Ellis, age 35, of Dubuque, and Martel Elliot Fountain, Sr., age 28, of Dubuque, were convicted of conspiracy to distribute methamphetamine. On August 1, 2018, Mauricio Eduardo Bayardo Chan, age 20, from Mexico, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering. On August 2, 2018, Brenda Lynn Harker, age 40, of Dubuque, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
The defendants’ plea agreements and evidence at previous court hearings establish that in February 2017, Taylor met Bayardo Chan in a hotel in Cedar Rapids, where Taylor purchased multiple ounces of ice methamphetamine from Bayardo Chan. After this meeting, Bayardo Chan personally delivered several more ounces of ice methamphetamine to Taylor. At the time, Taylor was living with Petesch in Petesch’s house on North Main Street in Dubuque.
Sometime in June 2017, Bayardo Chan met Taylor again and proposed that Bayardo Chan arrange for larger shipments of ice methamphetamine to be mailed to Taylor’s house. Taylor agreed and Bayardo Chan directed Taylor to pay for some of the shipments by wiring money through Western Union. Bayardo Chan instructed Taylor to wire the money to various people with addresses in Sinaloa, Mexico. Taylor had Harker, Petesch, and others wire thousands of dollars in drug proceeds on his behalf to Mexico.
From June 2017 until November 2017, Bayardo Chan mailed pounds of ice methamphetamine in several packages to Taylor’s house, where Taylor sold the methamphetamine to various dealers and users throughout Dubuque. Petesch assisted Taylor in selling the methamphetamine from her house. Taylor sold ounces of methamphetamine at a time to Boen, Carter, Ellis, Fountain, and Harker, which they would then redistribute. Periodically, Bayardo Chan and Ceja would meet Taylor at his residence to collect payments for the methamphetamine shipments.
On August 17, 2017, police investigators executed a search warrant at Carter’s house in Dubuque. Inside Carter’s residence, investigators found $4,743 in cash from his methamphetamine sales. Investigators also found approximately six ounces of ice methamphetamine that Carter was planning to sell.
On November 10, 2017, police investigators executed a search warrant on Petesch’s house. Investigators found $14,399 in cash from Taylor’s methamphetamine sales and two handguns that Taylor and Petesch were using to protect their methamphetamine proceeds. Further, investigators found Taylor standing outside of a bathroom where they discovered methamphetamine dissolving in the toilet bowl. Ultimately, investigators recovered over two ounces of ice methamphetamine from Petesch’s house.
On February 1, 2018, Ceja was arrested at the San Ysidro Port of Entry border crossing between San Diego, California, and Tijuana, Mexico. On March 20, 2018, Bayardo Chan was arrested in downtown New York City.
Taylor’s sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Taylor and all other defendants remain in custody of the United States Marshal pending sentencing. Taylor faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,750,000 fine, and at least 5 years’ supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program of the United States Department of Justice, through a cooperative effort of the Federal Bureau of Investigation, Dubuque Drug Task Force, Iowa Division of Narcotics Enforcement, Dubuque Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1002-LTS.
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Landover Man Sentenced to over 20 Years in Federal Prison for Charges Related to the Firebombing of His Girlfriend’s ApartmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Richard Butler III, age 36, of Landover, Maryland today to 243 months in prison, followed by three years of supervised release, for being a felon in possession of an explosive; malicious use of explosive materials; and transportation of explosive materials with intent to kill, injure, or intimidate, in connection with the attempted firebombing of his girlfriend’s apartment.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Prince George’s County Fire/EMS Chief Benjamin M. Barksdale; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on March 4, 2016, at 3:25 a.m., the Prince George’s County Fire Department (PGFD) were called to an apartment complex in Landover, Maryland for an automated general fire alarm, and located the remnants of a fire in the master bedroom of apartment 102. The fire had been extinguished by the fire sprinkler system prior to the arrival of the PGFD. Firefighters discovered that the master bedroom window had been broken and requested fire investigators from the Prince George’s County Fire Investigations Division to examine the apartment.
Fire investigators located a concrete brick inside the master bedroom on the floor between the bed and window and near the brick, an improvised incendiary device—specifically, a clear plastic water bottle containing an unknown liquid, and a paper towel protruding from the mouth of the bottle. A similar plastic bottle was found melted to the top of the burned bed. Outside, investigators located a blue plastic one-quart motor oil container. The ATF Forensic Science Laboratory examined the plastic bottles, which revealed the presence of gasoline.
At the time of the incident, two adults and three minors were in the apartment, which was leased by Butler’s girlfriend. She was not in the apartment at that time of the fire because she was at the Prince George’s County Police Department in connection with a complaint of sexual abuse involving Butler and her minor daughter. Butler’s girlfriend reported that she had last seen Butler at 11:28 p.m. and he was a wearing a black coat, blue jeans, and red, white, and blue sneakers.
Investigators reviewed surveillance videos from a nearby gas station which showed an individual wearing the clothing described by Butler’s girlfriend who pumped gas into three containers—two of which appeared to be clear plastic water bottles, and the third, a blue container which he retrieved from a trash can located next to the pump. The individual then entered the restroom and exited with paper towels in his hand, got a white plastic bag from the cashier and placed the containers in the plastic bag and walked away. During an interview with investigators on March 7, 2016, Butler’s girlfriend was shown a screen-capture from the gas station’s surveillance footage of the individual standing near the gas pumps, which she identified as Butler.
A subsequent review of the ATF National Firearms Registrations and Transfer Records determined that there were no destructive devices legally registered to Butler. In addition, Butler was prohibited from possessing destructive devices due to a previous felony conviction.
United States Attorney Robert K. Hur praised the ATF, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer R. Sykes, who prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Nation’s Second Largest Egg ProducerRead the Press Release
The Justice Department today announced that it has reached a settlement with Rose Acre Farms Inc. (Rose Acre), which is based in Indiana and is one of the largest egg producers in the United States. The settlement resolves a long-standing lawsuit filed by the Justice Department alleging that Rose Acre violated the Immigration and Nationality Act (INA) by discriminating against work-authorized non-U.S. citizens when verifying their work authorization.
The Department’s amended complaint, filed on Nov. 7, 2012, alleged that from at least June 2009 to Dec. 22, 2011, Rose Acre routinely required work-authorized non-U.S. citizens to present a Permanent Resident Card or Employment Authorization Document to prove their work authorization, but did not require specific documents from U.S. citizens. All work-authorized individuals, whether U.S. citizens or non-U.S. citizens, have the right to choose which valid documentation to present to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on employees’ citizenship or national origin.
“The INA makes clear that when employers verify the identity and work authorization of employees, they must not treat employees differently based on their citizenship or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “This case demonstrates the Department’s commitment to ensuring that employers implement the employment eligibility verification process in a manner that is non-discriminatory.”
Under the settlement, Rose Acre will pay a civil penalty of $70,000; train its employees on the INA’s anti-discrimination provision; and be subject to departmental monitoring for two years.
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the antidiscrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Jefferson County man admits to heroin and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tyler Logan Kranenberg, of Ranson, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Kranenberg, age 29, pled guilty to one count of “Possession of a Firearm During and in Relation to a Drug Crime” and one count of “Distribution of Heroin.” Kranenberg admitted to possessing a .25 caliber pistol while distributing heroin in July 2017 in Jefferson County.
Kranenberg faces up to life incarceration and a fine of $250,000 for the firearms charge, and he faces up to 20 years incarceration and a fine of up to $1,000,000 for the distribution count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jamaican National Charged in Conspiracy to Commit Mail and Wire FraudRead the Press Release
United States Attorney Duane A. Evans announced that ALEX SAUNDERS age 26, a resident of Jamaica and student athlete at Southern University in New Orleans, was charged on August 3, 2018, in a one-count Bill of Information with Conspiracy to Commit Mail and Wire Fraud.
According to the charging document, prior to August 2013, and continuing to in or around December 2015, Andre Bowyer and co-conspirators known and unknown to the United States Attorney employed false representations and promises in order to fool elderly persons and persons suffering from diminished mental capacities into sending funds via United States mail, private mail carrier, or through an electronic transfer to SAUNDERS, Debra Krom and other co-conspirators known and unknown to the United States Attorney.
After receiving victims’ funds through United States mail, private mail carrier, or through an electronic transfer, SAUNDERS, Krom, and other co-conspirators known and unknown to the United States Attorney, with knowledge that the money they received was obtained through false and fraudulent pretenses, did knowingly and intentionally transfer the stolen money to one of Bowyer’s bank accounts in Jamaica.
If convicted, SAUNDERS faces a maximum term of five years imprisonment, a fine of not more than $250,000, supervised release of three years, and a special assessment of $100.
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the United States Department of Homeland Security Investigations.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman.
Indiana Man Sentenced to 51 Months in PrisonRead the Press Release
SOUTH BEND – Peter Rink, 41 years old, of LaPaz, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after entering a plea of guilty to being a felon in possession of a firearm and to possessing a shotgun having a barrel of less than 18 inches in length, announced U.S. Attorney Kirsch.
Rink was sentenced to 51 months of imprisonment followed by 3 years of supervised release.
According to documents filed in the case, Rink was driving a vehicle with a woman who was trying to flee from police. When the vehicle was stopped by police, police found in the vehicle a loaded 12-gauge shotgun with a sawed-off barrel and a loaded 9mm pistol. Rink admitted that he possessed the two firearms despite having a prior felony conviction for aggravated assault in Arizona. The shotgun had a sawed-off barrel that had been shortened to a length in violation of the National Firearms Act. Rink admitted to sawing off the barrel himself. The shotgun and pistol were located on the rear seat of the vehicle in a backpack which also contained methamphetamine, a scale, plastic baggies, and other drug paraphernalia.
This case was investigated by ATF with the assistance of the Marshall County Sheriff’s Department and the Marshall County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorney Luke N. Reilander.
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Hayward Resident Sentenced to over Five Years in Prison for Selling Firearms and Prescription Drugs Without A License and Related ChargesRead the Press Release
OAKLAND – Marcos Anthony Hatch was sentenced Friday, August 3, 2018, to 63 months in prison for dealing in firearms and prescription medications without a license and related charges, announced United States Attorney Alex G. Tse, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder, and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Jon S. Tigar after Hatch pleaded guilty to the charges.
Hatch, 21, of Hayward, pleaded guilty on December 15, 2017. According to his plea agreement, between January and May of 2017, he operated a social media account on which he posted photographs of prescription drugs, marijuana, and guns for sale. Hatch admitted that he never obtained a license to sell firearms and never had any privileges to prescribe controlled substances. Nevertheless, Hatch acknowledged that he engaged in the repetitive purchase and resale of firearms for profit. Hatch further admitted he sold at least three guns to individuals he knew, or had reason to believe, could not lawfully possess firearms.
On May 16, 2017, federal agents searched Hatch’s home and found $59,000 in cash, marijuana, a Glock 32 .357 caliber pistol with replacement barrel, four other firearms, and 40 pills of alprazolam (commonly known as Xanax). In his plea, Hatch admitted he intended to distribute the alprazolam, that the Glock had been modified to function as a fully automatic machine gun.
On July 25, 2017, a federal grand jury returned a superseding indictment charging Hatch with one count each of conspiracy to deal in firearms without a license, in violation of 18 U.S.C. § 371; possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d); dealing firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A); possession with intent to distribute alprazolam, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(2); and advertisement of a controlled substance on the internet, in violation of 21 U.S.C. § 843(c)(2)(A). Hatch pleaded guilty to all the counts except the conspiracy and advertisement charges, which were dismissed.
In addition to the prison term, Judge Tigar sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since June 2018 and will begin serving the sentence immediately.
The prosecution is the result of a joint investigation by the DEA Tactical Diversion Squad and the ATF.
Hartford Man Sentenced to 4 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARCUS GARY, 35, of Hartford, formerly of South Windsor, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking by members and associates of the Orange Street Killas (OSK) in Hartford’s Parkville neighborhood. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the drugs on the streets of Hartford.
The investigation revealed that GARY supplied heroin to Antwane Williams-Bey, also known as “Buck,” an OSK member, for street sale.
GARY was arrested on March 8, 2017. On March 30, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
GARY, who had been released on bond, was remanded to custody at the conclusion of today’s court proceeding.
GARY’s criminal history includes convictions for firearm and drug offenses.
Sixteen individuals were charged and convicted as a result of this investigation. Williams-Bey pleaded guilty and awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Grenada Lake Medical Center to Pay More Than $1.1 Million to Resolve False Claims Act Allegations Involving Medically Unnecessary Psychotherapy ServicesRead the Press Release
The Justice Department announced today that Grenada Lakes Medical Center (GLMC), a publicly-owned hospital which at various times has been operated by the University of Mississippi Medical Center and by the Grenada Lake Medical Center Board of Trustees, has agreed to pay more than $1.1 million to resolve False Claims Act allegations that the hospital sought and received reimbursement from Medicare for services that were not medically reasonable or necessary.
The settlement resolves allegations that, beginning in January 2005 and continuing until April 2013, the hospital submitted claims for Intensive Outpatient Psychotherapy (IOP) services that did not qualify for Medicare reimbursement. The IOP services in question were performed on GLMC’s behalf by Allegiance Health Management (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by GLMC directly.
“Hospitals that participate in the Medicare program are responsible for ensuring that the services performed at their facilities or on their behalf reflect the medical needs of patients rather than the desire to maximize profit,” said Acting Assistant Attorney General Chad A. Readler for the Civil Division. “The Department of Justice will continue to hold accountable those who misspend taxpayer funds by providing medically inappropriate services.”
Today’s settlement with GLMC follows a recent settlement with Allegiance, as well as previous settlements with more than twenty other hospitals where Allegiance provided IOP services.
“We will not tolerate hospitals that place profit over legitimate patient care by billing for medically unnecessary services,” said C.J. Porter, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “In coordination with our partners, we will continue to investigate these cases and ensure taxpayer funds are used as intended.”
The settlement with GLMC resolves certain allegations in a lawsuit filed in the Eastern District of Arkansas under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The lawsuit was filed by Ryan Ladner, who formerly worked for Allegiance as a Program Manager at the Inspirations Outpatient Counseling Center located at Wesley Medical Center in Hattiesburg, Mississippi. Mr. Ladner will receive approximately $195,000 as his share of the GLMC settlement.
This, and prior settlements in this matter, were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Eastern District of Arkansas, and the Department of Health and Human Services, Office of Audit Services and Office of Inspector General.
The claims settled by the current agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned U.S. ex rel Ladner v. Allegiance Health Management, Inc., et al, No. 4:10-CV-170 (E.D. Ark.).
Georgia Man Charged with Conspiring to Launder Stolen Drug ProceedsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Thomas Oiler, age 49, of Flowery Branch, Georgia, was charged in a criminal information on August 3, 2018, with conspiring to launder stolen drug proceeds.
According to United States Attorney David J. Freed, the criminal information alleges that Oiler was part of a conspiracy that stole more than $800,000 of cash drug proceeds before turning more than $1.7 million of cash drug proceeds over to law enforcement officers. It is alleged that Oiler rented a storage unit in Baltimore and travelled to Pennsylvania at the request of an unindicted coconspirator who had stolen more than $800,000 of cash drug proceeds from a coast-to-coast marijuana trafficking organization. Oiler allegedly took the vast majority of those proceeds and stored them in the rented unit in Baltimore. It is further alleged that Oiler then laundered those funds by conducting numerous financial transactions, including sending cash to the unindicted coconspirator and a now-retired agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit. That agent, Timothy B. Riley, previously pled guilty to participating in the conspiracy and awaits sentencing. Oiler netted about $400,000 of the proceeds.
The investigation began after Riley was notified on June 24, 2015, by an unindicted coconspirator about a large amount of cash from a coast-to-coast marijuana trafficking organization. Riley and other members of the Mobile Street Crimes Unit met the unindicted coconspirator at a truck stop in Carlisle, Pennsylvania to seize cash out of the truck. The amount seized was $1,770,650. The unindicted coconspirator provided information about the marijuana trafficking organization for which he was transporting the cash. An investigation of that drug trafficking organization revealed the amount of cash in that shipment was $2,590,000, and an allegation was made that Agents had stolen more than $800,000 from the shipment when it was seized. To ensure a full investigation was undertaken, the PA Attorney General referred the matter to the Federal Bureau of Investigation.
The FBI, joined by Internal Revenue Service – Criminal Investigations, conducted a full investigation, revealing more than $800,000 was stolen by the driver of the truck who turned the rest of the money in, aided by Oiler. After the seizure, Timothy B. Riley received three cash payments from the driver, totaling $48,000. Riley then deposited and conducted other financial transactions with that money, knowing it was stolen proceeds of drug trafficking. Oiler conducted financial transactions with more than $240,000 of the proceeds.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Public Utility Employee Pleads Guilty in Theft of More Than $4 Million from Public Utility and CustomersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN FARCHIONE, a former Manager at a public utility company (the “Public Utility”), pled guilty today in Manhattan federal court to four felony counts in connection with a scheme to steal more than $4 million from the Public Utility and its customers between 2005 and 2016. During that time period, FARCHIONE obtained and kept millions of dollars in customer payments intended for the Public Utility and then manipulated the Public Utility’s computer and accounting systems to conceal the theft. FARCHIONE pled guilty before U.S. District Judge J. Paul Oetken to one count of honest services fraud, one count of mail fraud, one count of conspiracy to commit mail fraud, and one count of aggravated identity theft.
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, for more than a decade, John Farchione abused his position to steal millions of dollars from his employer, a public utility company New Yorkers rely upon. We will continue to work aggressively to protect New York’s public utilities and their customers from such brazen criminal conduct.”
According to allegations contained in the Indictment and statements made in related court filings and proceedings:
From at least in or about 2005, up to and including in or about November 2016, FARCHIONE orchestrated fraudulent schemes that allowed him to steal millions of dollars from the Public Utility.
FARCHIONE, who was employed by the Public Utility as a manager in Customer Operations during the relevant time period, devised and implemented the scheme, using his knowledge of the Public Utility’s billing and payment processes. FARCHIONE carried out the scheme with a co-conspirator, Louis Bendel, who has previously pled guilty in connection with his role in the scheme. Bendel operated a business that aggregated payments from customers of the Public Utility for the purpose of passing such payments on to the Public Utility. FARCHIONE and Bendel effected the fraud in part through conspiring to submit fraudulent checks and payments to the Public Utility, in amounts owed by customers who provided cash to Bendel believing he would submit those payments to the Public Utility on their behalf.
In fact, however, FARCHIONE and Bendel kept the customer cash for themselves and submitted fraudulent checks to the Public Utility that purported to convey aggregated payments by multiple customers of the Public Utility. FARCHIONE, by virtue of his position as an employee of the Public Utility, was able to conceal the nature of the fraudulent checks, and thereby perpetuate the fraudulent scheme, through his knowledge of and access to the Public Utility’s account payment system.
Additionally, FARCHIONE and Bendel conspired to create false and fraudulent positive balances on certain customer accounts related to the scheme, and then caused the Public Utility to issue refunds that were not actually due, the proceeds of which were obtained and shared by FARCHIONE and Bendel.
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FARCHIONE, 65, pled guilty to one count each of honest services fraud, which carries a maximum sentence of 20 years in prison; mail fraud, which carries a maximum sentence of 20 years in prison; conspiracy to commit mail fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft in connection with the fraudulent schemes, which carries a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. In addition, FARCHIONE will be subject to financial penalties including restitution and forfeiture in amounts to be determined at sentencing.
FARCHIONE is scheduled to be sentenced by Judge Oetken on November 16, 2018.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Sidhardha Kamaraju are in charge of the prosecution.
Former Member of Barbados Parliament and Minister of Industry Indicted for Money LaunderingRead the Press Release
A three-count indictment was unsealed today in federal court in Brooklyn charging Donville Inniss, a former member of the Parliament of Barbados and the Minister of Industry, International Business, Commerce and Small Business Development of Barbados, with conspiracy to launder money and money laundering. The charges stem from Inniss’s acceptance of bribes from a Barbadian insurance company in 2015 and 2016 when he was a public official. Inniss was arrested Friday and was arraigned today before United States Magistrate Judge Julie Sneed in the Middle District of Florida at the federal courthouse in Tampa. Inniss was released on a $50,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment.
According to the indictment, between August 2015 and April 2016, Inniss engaged in a scheme to accept approximately $36,000 in bribes from high-level executives of an insurance company headquartered in Barbados (“the Barbados Company”) and launder that money through the United States. In exchange for the bribes, Inniss leveraged his position as the Minister of Industry to enable the Barbados Company to obtain two government contracts. Inniss concealed the bribes by arranging to receive them through a dental company and a bank located in Elmont, New York. Barbados Company executives transferred the funds to the dental company using an invoice falsely claiming that the payments were for consulting services. During the time of the charged conspiracy, Inniss was a legal permanent resident of the United States residing in Tampa, Florida and Barbados.
“As charged in the indictment, Inniss abused his position of trust as a government official by taking bribes from a Barbadian company, then laundered the illicit funds through a bank and a dental company located in the Eastern District of New York,” stated United States Attorney Donoghue. “The Department of Justice will continue to hold accountable corrupt government officials here or abroad who use the U.S. financial system to facilitate their criminal conduct.”
“Donville Inniss allegedly used the U.S. financial system to launder bribes he received while serving as a government official in Barbados,” said Assistant Attorney General Benczkowski. “These charges demonstrate the commitment of the Department and our law enforcement partners to hold accountable anyone who seeks to use our financial system to promote or launder the corrupt proceeds of their crimes.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Assistant United States Attorney Sylvia Shweder of the Eastern District of New York’s Business and Securities Fraud Section, and Trial Attorney Gerald M. Moody, Jr., of the Criminal Division’s Fraud Section, are in charge of the prosecution.
The Defendant:
DONVILLE INNISS
Age: 52
BarbadosE.D.N.Y. Docket No. 18-CR-134 (KAM)
Former Member of Barbados Parliament and Minister of Industry Charged with Laundering Bribes from Barbadian Insurance CompanyRead the Press Release
The former Minister of Industry of Barbados was arrested Friday and had his initial court appearance today in connection with an indictment charging him with laundering bribes that he allegedly received from a Barbadian insurance company in exchange for official actions he took to secure government contracts for the insurance company.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York and Assistant Director-in-Charge William F. Sweeney Jr. of the FBI New York Field Office made the announcement.Donville Inniss, 52, a U.S. legal permanent resident who resided in Tampa, Florida, and Barbados, was charged in an indictment with one count of conspiracy to launder money and two counts of money laundering. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on March 15.
“Donville Inniss allegedly used the U.S. financial system to launder bribes he received while serving as a government official in Barbados,” said Assistant Attorney General Benczkowski. “These charges demonstrate the commitment of the Department and our law enforcement partners to hold accountable anyone who seeks to use our financial system to promote or launder the corrupt proceeds of their crimes.”
“As charged in the indictment, Inniss abused his position of trust as a government official by taking bribes from a Barbadian company, then laundered the illicit funds through a bank and a dental company located in the Eastern District of New York,” said U.S. Attorney Donoghue. “The Department of Justice will continue to hold accountable corrupt government officials here or abroad who use the U.S. financial system to facilitate their criminal conduct.”
The indictment alleges that in 2015 and 2016, Inniss took part in a scheme to launder into the United States approximately $36,000 in bribes that he received from high-level executives of a Barbadian insurance company. At the time, Inniss was a member of the Parliament of Barbados and the Minister of Industry, International Business, Commerce, and Small Business Development of Barbados. In exchange for the bribes, Inniss leveraged his position as the Minister of Industry to enable the Barbadian insurance company to obtain two government contracts. To conceal the bribes, Inniss arranged to receive them through a U.S. bank account in the name of a dental company, which had an address in Elmont, New York.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New York Field Office is investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
Trial Attorney Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sylvia Shweder of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Florida Man Pleads Guilty to Accepting $2.5 Million in Bribes and KickbacksRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bhaskar Patel, 67, of Windermere, Florida, appeared today in federal district court in Rutland to answer to charges that, while employed by Schneider Electric Building Americas, he unlawfully solicited and accepted $2,536,119.19 in bribes and kickbacks associated with federal energy savings performance contracts (“ESPCs”) issued to Schneider Electric by various federal agencies. The Information filed in the case covers the time-period between June 6, 2011 and April 19, 2016. Chief District Court Judge Geoffrey W. Crawford accepted Patel’s guilty plea to both of the counts charged in the Information and released Patel on conditions. Judge Crawford ordered Patel to be back in U.S. District Court on December 7, 2018 for sentencing.
According to court documents, law enforcement initially received information that Patel had altered and falsified a bid document submitted to Schneider Electric by a Vermont subcontractor. That subcontractor was bidding for work on an ESPC at the United States Department of Veterans Affairs, White River Junction, Vermont Medical Center (“VA-WRJ”). Patel selected a different subcontractor to work on Schneider’s project, and – in order to cover his tracks – falsified the losing local bid. From there, investigators uncovered a wide-ranging scheme to defraud the federal government, whereby Patel received in excess of $2.5 million in illegal bribes and kickbacks in exchange for awarding a piece of Schneider Electric’s enormous federal contracts to subcontractors who agreed to pay bribes and kickbacks for the work. Patel directed the subcontractors to pay him by check, often diverting funds through his adult son and daughter, and insisting on a bogus reference notation.
For each contract named in the Information, Patel, a Senior Project Manager, was authorized and directed by Schneider Electric to obtain bids from subcontractors and recommend for selection the subcontractors that would be awarded a contract under an ESPC.
According to the Information, Patel accepted illegal kickbacks and bribes in connection with a $70 million project for the United States Coast Guard (“USCG”) in Aguadilla, Puerto Rico; a $24.7 million project for the United States Department of Agriculture (“USDA”) in Albany, California; a $12.6 million project for the United States General Services Administration (“GSA”) in St. Croix, U.S. Virgin Islands; a $21.8 million project for GSA in San Juan, Puerto Rico and St. Thomas, U.S. Virgin Islands; a proposed project of $42.4 million for work on the VA medical centers in Vermont, Massachusetts, Rhode Island, and Maine; and a $114.3 million project for the U.S. Navy for work on the Naval base in Coronado, California.
Patel pleaded guilty to one count of accepting illegal kickbacks in connection with federal contracts, a violation of 41 U.S.C. §§ 8702 and 8707, and one count of accepting bribes in connection with federal contracts, a violation of 18 U.S.C. § 666. Patel faces up to ten years of imprisonment, followed by up to three years of supervised release, on each of the counts of conviction. Patel further faces a fine of up to $5,072,238.38, or twice his ill-gotten gains. The actual sentence, however, will be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The government also filed a Notice of Forfeiture in the amount of $2,536,119.19, which Patel agreed to as part of his guilty plea. As part of his negotiated plea with the government, the government agreed to reduce the forfeiture from $2.5 million to $1.75 million if Patel pays $950,000 in forfeiture on or before his sentencing date.
United States Attorney Christina E. Nolan commended the collaborative investigative efforts of the VA Office of Inspector General, the GSA Office of Inspector General, the Naval Criminal Investigative Service, the USDA Office of Inspector General, and the Coast Guard Investigative Service, stating: “This important conviction results from a team effort by talented law enforcement officers from a cross-section of government agencies. Patel’s crime involved a sweeping fraud that harmed many federal agencies and the American citizens and government employees who depend upon them. The U.S. Attorney’s Office is committed to continuing to collaborate with our law enforcement partners in all agencies to combat large-scale financial fraud and guard against misuse, diversion, and theft of taxpayer dollars. Unmasking and combatting crimes of greed will remain a top priority of the USAO. I also commend the talented AUSAs in the district of Vermont who worked with law enforcement over the course of a lengthy investigation to achieve justice in this complex case. Our skilled prosecutors will remain focused and relentless in their pursuit of justice in complex fraud cases, in collaboration with our agency partners.”
“Federal energy savings performance contracts are intended to save VA money. Bribery and other corrupt acts by contractors instead divert and waste precious dollars intended for our nation’s veterans,” said VA-OIG Special Agent-in-Charge Sean J. Smith. “The VA Office of Inspector General will continue to work with our partners in the law enforcement community to prevent this type of fraud and hold any wrongdoers accountable.”
USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins commented, “We appreciate the commitment of the U.S. Attorney’s Office and the cooperative efforts of our law enforcement partners throughout this significant investigation. Mr. Patel’s guilty plea sends a strong message regarding the benefit of working across agency lines to protect the integrity of the procurement process throughout Government. The USDA Office of Inspector General will continue to dedicate resources to investigate those who unlawfully solicit and accept bribes and kickbacks involving USDA contracts.”
CGIS Special Agent in Charge Art Walker stated, “The Coast Guard Investigative Service is committed to protecting Coast Guard assets, personnel, and operations worldwide. CGIS Special Agents from the Major Procurement Fraud Division coordinated with federal law enforcement partners to uncover this massive scheme that defrauded the U.S. Government.”
“The GSA Office of Inspector General will continue to aggressively investigate GSA contractors who engage in bribery and kickback schemes at the expense of the government,” added Special Agent in Charge, Luis Hernandez.
NCIS Northeast Field Office Special Agent in Charge Leo S. Lamont stated, “Fraud is never a victimless crime. In this case involving bribery and kickbacks related to the mischarging of the Navy for services and construction, the victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest.”
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach, Owen Foster, and Paul van de Graaf. Bhaskar Patel is represented by David Haas, Esq., of Haas Law in Orlando, Florida; and Heather Ross, Esq., of Sheehey, Furlong & Behm PC in Burlington, Vermont.
El Departamento de Justicia Resuelve una Denuncia Relacionada con la Inmigración contra el Segundo Productor de Huevos Más Grande en el PaísRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia hoy anunció que ha alcanzado un acuerdo con Rose Acre Farms, Inc. («Rose Acre»), uno de los principales productores de huevos en los Estados Unidos cuya sede se encuentra en Indiana. El acuerdo resuelve un pleito entablado desde hace mucho tiempo por el Departamento de Justicia, en el cual este alega que Rose Acre vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a trabajadores que no eran ciudadanos de los EE. UU pero que sí disponían de permiso para trabajar a la hora de verificar su autorización para trabajar.
La denuncia enmendada del Departamento, que se presentó el 7 de noviembre del 2012, alegó que desde al menos junio del 2009 hasta el 22 de diciembre del 2011, Rose Acre, de forma rutinaria, requirió que trabajadores que no eran ciudadanos de los EE. UU. pero que sí disponían de permiso para trabajar presentaran una tarjeta de residencia permanente o documento de autorización para demostrar su autorización para trabajar, mientras que no requerían documentos específicos a ciudadanos estadounidenses. Todos aquellos individuos con autorización, ya sean ciudadanos o no, tienen el derecho a elegir cuáles documentos válidos desean presentar para demostrar que están autorizados para trabajar. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales innecesarios con base en la ciudadanía o nacionalidad de origen de los mismos.
«La INA deja claro que cuando los empleadores verifican la identidad y autorización para trabajar de sus empleados, ellos no pueden tratar a los empleados de una forma diferente por motivos de su ciudadanía o nacionalidad de origen», declaró el Fiscal General Auxiliar en funciones, John Gore, de la División de Derechos Civiles. «Este caso demuestra el compromiso del Departamento a asegurar que los empleadores implementen el proceso de verificación de la elegibilidad para trabajar de una forma que no sea discriminatoria».
Conforme el acuerdo, Rose Acre pagará sanciones civiles que ascienden a $70,000, capacitará a sus empleados en cuanto a la disposición antidiscriminatoria de la INA y se someterá a la supervisión por parte del Departamento durante dos años.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Darlington Man Sentenced to 121 Months in Federal Prison on Robbery and Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Kenneth Eric Coe, Jr. a/k/a “Junior,” age 24, of Darlington, SC, was sentenced in federal court in Florence, South Carolina, for aiding and abetting Robbery of United States Government Property and aiding and abetting the Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence. United States District Judge R. Bryan Harwell, of Florence, sentenced Coe to 121 months in federal prison with 5 years of supervised release to follow along with $400.00 in restitution to be paid to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The evidence presented at the guilty plea hearing established that on March 29, 2017, Coe along with another individual robbed a person having lawful charge, custody, and control of $400.00 belonging to the Bureau of Alcohol, Tobacco, Firearms and Explosives by use of a firearm. At the hearing, the agent presented evidence that during the robbery, a firearm was pointed at the victim in order to force the victim to give up the cash.
The case was investigated by agents of ATF, the Darlington County Sheriff’s Office, and the Hartsville Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire, which aggressively prosecutes firearm cases. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell and William Lewis of the Columbia office handled the case.
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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Criminal Defense Attorney Pleads Guilty to Conspiring to Distribute Heroin in Scheme to Get Out of A DUI Offense; Agrees to Forfeit His Law LicenseRead the Press Release
Tampa, FL – Steven Paul Burch (43, Cape Coral) has pleaded guilty to conspiring to distribute heroin. He faces a maximum penalty of 20 years in federal prison. In his plea agreement, Burch has agreed to forfeit his license to practice law, which was used to facilitate the offense. A sentencing date has not yet been set.
According to the plea agreement, in August 2015, Burch was arrested in Sarasota County for driving under the influence of alcohol and causing property damage. In an effort to reduce his charges and avoid punishment from the Florida Bar, Burch recruited co-defendant and client Herbert Battle to send packages of drugs through the mail that Burch could then report to law enforcement as a form of cooperation. Unbeknownst to Burch and Battle, Battle’s wife (Qualonda Battle) recorded one of the conversations at Burch’s law office. In the recording, Burch discusses how the packages were going to be sent, where they were going to go, and how the conspirators would get away with it.
In March 2016, Battle shipped an ounce of heroin from California to Sarasota County. Battle sent the tracking number to his wife who, using a disposable phone, texted the tracking number to Burch, who then forwarded the tracking number to law enforcement. The package was intercepted at the FedEx warehouse in Bradenton, where a search of the package revealed an ounce of heroin that had been concealed in a bag of beef jerky.
This case was investigated by the Federal Bureau of Investigation with assistance from the Sarasota County Sheriff’s Office, the Drug Enforcement Administration, the Manatee County Sheriff’s Office, the State Attorney’s Office for the 12th Judicial Circuit and, the Florida Bar Association. It is being prosecuted by Assistant United States Attorney Dan Baeza and Diego Novaes.
Columbia Man Pleads Guilty to Sex Trafficking, Illegal Sexual ActivityRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to sex trafficking a minor and illegal sexual activity.
Kenneth Ronald Jones, 26, of Columbia, pleaded guilty to one count of the sex trafficking of a minor and two counts of transportation for illegal sexual activity by coercion and enticement.
By pleading guilty today, Jones admitted that he induced three victims, including a minor, to travel across state lines to engage in prostitution and illicit sexual activity between May 1 and June 1, 2016.
On June 28, 2016, a 17-year-old victim from Wisconsin – identified in court documents as “FV1” – contacted her social worker and reported that she was being held against her will by Jones. She was located at a residence in Columbia that was known for prostitution and removed by law enforcement officers.
FV1 told investigators that she met Jones and another victim, identified as “FV2,” in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. As soon as she arrived in Columbia, she was expected to see clients. Jones, who knew she was 17 years old, instructed FV1 to tell everyone at the house she was 18 years old. Jones had her charge $120 for half an hour, or $160 for a full hour. FV1 gave $20 to the owners of the residence and the rest of the proceeds of her prostitution to Jones.
FV2 told investigators that she met Jones in March 2016 at a party in Milwaukee and accompanied him to Columbia because she believed she would be assisting Jones with selling narcotics. FV2 estimated that she earned about $2,500 for engaging in prostitution, but was not allowed to keep any of the money. After about two weeks in Columbia, FV2 and Jones returned to Milwaukee to pick up FV1, after which they returned to the same brothel in Columbia.
Jones arranged for a third victim, identified as “FV3,” to join them in Columbia. FV3, after communicating with Jones on Facebook, agreed to come to Columbia to help him with his drug business. After she arrived in Missouri, Jones told FV3 she needed to make money and threatened to kick her to the streets if she did not do what he wanted. FV3 agreed and did a prostitution “date.” FV3 stated Jones directed her to charge clients $120 per half hour and $200 per hour. FV3 gave a door fee to the owners of the brothel and the rest of the money to Jones.
Under federal statutes, Jones is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Greendale, Wis., Police Department, the Columbia, Mo., Police Department and the Sturgeon Bay, Wis., Police Department.
Chief Financial Officer of Mission Support Alliance Agrees to Pay $124,440 for Allegedly Accepting Kickbacks from Lockheed MartinRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard A. Olsen, the Chief Financial Officer (CFO) for Department of Energy (DOE) prime contractor Mission Support Alliance LLC (MSA), has agreed to pay $124,440 to resolve allegations that he violated the False Claims Act and the Anti-Kickback Act when he took at least $40,000 in illegal kickbacks paid to him by Lockheed Martin Corporation (Lockheed Martin).
In August 2009, MSA began performance under a multi-billion dollar services contract with DOE to provide services in support of the environmental cleanup of DOE’s Hanford Site. MSA was partly owned by Lockheed Martin and entered into a subcontract worth hundreds of millions of dollars with a subsidiary of Lockheed Martin for the performance of IT services at the Hanford Site. By operation of the prime contract and subcontract, the United States, through DOE, paid 100 percent of the IT services provided by Lockheed Martin at Hanford.
The United States alleged that Mr. Olsen, while he was an employee of Lockheed Martin on loan to MSA as MSA’s CFO, received at least $41,480 in illegal kickback payments from Lockheed Martin to improperly obtain or reward favorable treatment for Lockheed Martin in connection with the subcontract and/or prime contract. The United States’ allegations included that Mr. Olsen assisted in drafting and submitting false statements to DOE regarding the labor rates charged by Lockheed Martin as well as Lockheed Martin’s anticipated profit in providing IT services at Hanford. The United States further alleged that Mr. Olsen was involved with the resulting submission of false and inflated claims to DOE between March 1, 2010 and February 21, 2012, when he received the $41,480 illegal kickback payment from Lockheed Martin rewarding him for the impermissible profit Lockheed Martin reaped as a result of the alleged fraud.
United States Attorney Harrington said, “This settlement requires Mr. Olsen to pay back three times the amount he received from the alleged fraud and holds Mr. Olsen accountable for his actions. It also sends a strong message to those individuals who may engage in similar conduct. I commend the outstanding investigative work performed by the Department of Energy Office of Inspector General, which made this resolution possible.”
The settlement agreement requires Mr. Olsen to pay the full $124,440 settlement amount within five days of signing the agreement. The settlement agreement further requires Mr. Olsen to cooperate with the ongoing investigation of the alleged fraud scheme including submitting to an in person interview with Special Agents for the Department of Energy Office of Inspector General (OIG).
April G. Stephenson, DOE’s Acting Inspector General said, “The Department of Energy Office of Inspector General is committed to ensuring the integrity of our contractors and subcontractors by detecting and holding accountable those who choose to engage in false claim and kickback schemes. This settlement is a result of our staff’s dedicated work to ensure the government is not charged with false and inflated claims. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
This settlement was negotiated by Assistant United States Attorneys Tyler Tornabene and Dan Fruchter, with analytical support from Affirmative Civil Enforcement Investigative Analyst Jeanne Harkleroad, and in conjunction with the Department of Justice Civil Frauds Section and the Department of Energy Office of Inspector General. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Canadian Man Sentenced to 18 Years’ Imprisonment for Multi-Million Dollar Fraud Targeting U.S. LawyersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Henry Okpalefe, age 50, currently incarcerated and formerly of Toronto, Ontario, Canada, was sentenced to 216 months’ imprisonment and three years’ supervised release by United States District Court Judge John E. Jones, III, for conspiracy to commit mail fraud, wire fraud and money laundering. Okpalefe was convicted on March 30, 2017, after a three-day bench trial before Judge Jones.
According to United States Attorney David J. Freed, between 2008 and 2010, Okpalefe and his co-conspirators stole over $23 million from hundreds of lawyers and law firms in the Middle District of Pennsylvania and nationwide. Under the guise of seeking legal representation, the conspirators contacted attorneys and law firms in the United States using fake email accounts. Once an attorney or law firm agreed to represent the purported client, the conspirators sent bank checks through the mail and instructed them to deposit the money into their IOLTA accounts. From there, the attorneys were provided with wire instructions and they wired their legitimate funds to Asian bank accounts. Before the counterfeit checks were returned as fraudulent, the money had already been withdrawn by co-conspirators in Asia and distributed to conspirators’ bank accounts in Nigeria and Canada. Okpalefe and his co-conspirators operated in Canada, Nigeria, Japan and South Korea.
Judge Jones ordered Okpalefe to pay $23 million in restitution to the victims and to forfeit $504,787.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation and the United States Postal Inspection Service. The Toronto Strategic Partnership and the Toronto Police Service provided integral assistance in the investigation and prosecution of the case. The Justice Department's Office of International Affairs provided assistance with the investigation. Assistant United States Attorneys Chelsea Schinnour and Kim Douglas Daniel prosecuted the case.
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California Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Everitt Aaron Jameson, 27, of Modesto, California, was sentenced today to 15 years in prison, and a life term of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney McGregor W. Scott for the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office made the announcement. The sentence was issued by U.S. District Judge Lawrence J. O’Neill.
“There is no place in the United States for terrorists and terrorist sympathizers who threaten innocent people, and the National Security Division will relentlessly seek to identify them and bring them to justice,” said Assistant Attorney General Demers. “Jameson put his fellow Americans at risk by supporting ISIS and planning an attack on behalf of the terrorist organization. This is unacceptable, and I am grateful for the hardworking agents and prosecutors who are responsible for this successful result.”
“Protecting our communities from terrorist threats is the Department of Justice’s highest priority,” said First Assistant U.S. Attorney Phillip A. Talbert. “With the assistance of our investigative partners, we will continue to work to prevent such attacks and to vigorously prosecute those who seek to provide material support to terrorist organizations. We are grateful for the hard work of the FBI and the DOJ’s National Security Counterterrorism Division for their teamwork in bringing this case to a just conclusion.”
“This case demonstrates the FBI’s commitment to identifying and disrupting plots to harm the American public. With assistance from our state and local partners, we completed a thorough investigation while ensuring that Jameson would not be able to carry out his plans,” said Special Agent in Charge Ragan. “The public also plays an active role in ensuring the safety of our communities. We encourage members of the public to always say something if they see or hear anything that raises concerns about a possible attack.”
Jameson pleaded guilty on June 4. According to the plea agreement, between September 2017 and Dec. 20, 2017, Jameson voiced support for ISIS knowing that the organization was engaging in terrorist activity and terrorism. Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.” Jameson also expressed support online for the Oct. 31, 2017, terrorist attack in New York City, as well as other terrorist attacks.
In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they needed done here and noted that his time in the military had trained him for combat and war. According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.
Later, Jameson met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS, and offered to carry out violent acts and provide financial support for the terrorist organization.
According to court documents, on Dec. 16, 2017, Jameson discussed what he could offer to the cause. Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack. He also noted that he could get PVC pipe, nails and powder for explosive devices, and asked for remote timing devices from that person. Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape. Jameson also offered to provide money to the cause.
This case was the product of an investigation by the FBI. Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker of the Eastern District of California prosecuted the case with Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section.
Attorney General Jeff Sessions Issues Statement on DACA Court OrderRead the Press Release
Attorney General Jeff Sessions issued the following statement on Friday’s Deferred Action for Childhood Arrivals (DACA) order in the U. S. District Court for the District of Columbia:
"We strongly disagree with the district court’s decision on Friday in the Deferred Action for Childhood Arrivals (DACA) case. The executive branch’s authority to simply rescind a policy, established only by a letter from the Secretary of the Department of Homeland Security, is clearly established. The Department of Justice will take every lawful measure to vindicate the Department of Homeland Security’s lawful rescission of DACA.
"The last administration violated its duty to enforce our immigration laws by directing and implementing a categorical, multipronged non-enforcement immigration policy for a massive group of illegal aliens. This wrongful action left DACA open to the same legal challenges that effectively invalidated another program they established—Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA). DAPA’s implementation was blocked by the U.S. Court of Appeals for the Fifth Circuit and never entered into effect. These two policies declared by officials of the previous administration—by policy letters only—had been considered by Congress and rejected.
"The Trump Administration’s action to withdraw the policy letters simply reestablished the legal policies consistent with the law. Not only did the Trump Administration have the authority to withdraw this guidance letter, it had a duty to do so. As former President Obama previously said, the changes they attempted to effect through this policy letter can only be lawfully achieved by congressional action. The judicial branch has no power to eviscerate the lawful directives of Congress—nor to enjoin the executive branch from enforcing such mandates.
"We have recently witnessed a number of decisions in which courts have improperly used judicial power to steer, enjoin, modify, and direct executive policy. This ignores the wisdom of our Founders and transfers policy making questions from the constitutionally empowered and politically accountable branches to the judicial branch. It also improperly undermines this Administration’s ability to protect our nation, its borders, and its citizens. The Trump Administration and this Department of Justice will continue to aggressively defend the executive branch's lawful authority and duty to ensure a lawful system of immigration for our country."Amherst Man Pleads Guilty to Wire Fraud and Money Laundering in Scheme That Bilked Three Victims Out of More Than $800,000Read 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 Raymond Clark, 41, of East Amherst, NY, pleaded guilty to wire fraud and money laundering, before Chief U.S. District Judge Frank P. Geraci. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that Clark induced three victims to send him $870,000 for supposed investments, including investments in hedge funds and publicly traded companies. Instead of investing the monies as promised, the defendant kept the money and spent it on personal expenses. As part of the plea agreement, Clark will pay restitution to the victims.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for November 15, 2018, at 11:00 a.m. before Chief Judge Geraci.
20-Year-Old Tijuana College Student Sentenced to 87 Months in Custody for Smuggling FentanylRead the Press Release
NEWS RELEASE SUMMARY – August 6, 2018
SAN DIEGO – Today, District Judge Larry A. Burns sentenced Flavio Diego Rivera Davalos, 20, to 87 months in custody based on his guilty plea admitting that he smuggled approximately 77 pounds of fentanyl into the United States. Davalos, who was 19 at the time of the offense, was arrested at the San Ysidro Port of Entry on December 8, 2017 following one of the largest seizures of the deadly opioid along the Southwest border. According to expert opinions included in court records, 77 pounds of fentanyl would yield 800,000 potentially fatal dosage units and a market value of more than $2 million.
According to court documents, Davalos entered the United States from Mexico through the San Ysidro, California Port of Entry. Davalos, a visa holder, was the driver, sole occupant and registered owner of the 2010 Ford Focus bearing Baja California, Mexico license plates. In pre-primary inspection, a Customs and Border Protection Officer and an assigned Narcotics and Human Detection Dog were conducting roving operations when the canine alerted to the odor of narcotics in the vehicle. The CBP officer questioned Davalos regarding his purpose of travel to the United States and he responded that he was going to “Las Americas” Premium Outlets shopping mall. At the secondary inspection area, CBP officers detected anomalies in the rear seat and rear quarter panels of the vehicle. According to the complaint, officers found 31 packages of fentanyl throughout the vehicle, including in the driver’s side quarter panel, the passenger’s side quarter panel, the driver’s side rear seat, the passenger’s side rear seat, the speaker box and the firewall under the hood.
According to court records, Davalos initially agreed to transport drug proceeds from Los Angeles to Tijuana and the traffickers gave a vehicle to Davalos, who used his new vehicle for work and college. Traffickers also gave money to Davalos to place the vehicle in his own name and directed Davalos to “burn” the plates through the Port of Entry to minimize suspicion. Davalos was also directed to provide receipts of his crossings to the traffickers to confirm that he had multiple crossings. Davalos gave his vehicle to the traffickers the day before he crossed, thereby facilitating the placement of drugs in his vehicle. When he entered the Port the next day as part of a three-vehicle caravan headed to Los Angeles, Davalos suspected that all three vehicles were loaded with drugs.
Rejecting the defense plea for a 30-month sentence, District Court Judge Burns commented that Davalos “did not play a ‘minor’ role in the offense” but rather played a significant part in importing an illegal drug, particularly given the volume of the deadly substance and the specific facts of this case. Judge Burns additionally found it troubling that defendant, a college student in Tijuana, was also a teacher who failed to set a good example for his young students.
“Our district’s work enforcing drug laws has never been more important than it is right now. Cartels are on a mission to use California ports of entry to funnel highly addictive and fatal opioids throughout the United States, exacerbating the deadliest drug crisis in American history,” stated U.S. Attorney Adam Braverman. “Here vigilant law enforcement agents took 800,000 fatal fentanyl doses off the streets, effectively preventing defendant’s deadly fentanyl stash from resulting in thousands of devastating overdoses.”
DEFENDANT Case Number: 18-cr-01120-LAB
Flavio Diego Rivera Davalos Age 20 Tijuana, Mexico
CHARGES
Importation of Controlled Substance: 10 year minimum mandatory to life; fine of $1 million dollars; at least 3 years of supervised release; $100 Special Assessment
AGENCIES
Customs and Border Protection (CBP)
Homeland Security Investigations (HSI)
Saturday 4 August 2018
Council Bluffs, Iowa Man Sentenced to 120 Months in Prison for Possession of MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa – On August 3, 2018, the Honorable Rebecca Goodgame Ebinger sentenced Dale Volney Freeman, 45, of Council Bluffs to 120 months in prison for possession of methamphetamine announced United States Attorney Marc Krickbaum. Freeman was also ordered to serve seven years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund.
Dale Freeman pled guilty to the charge on March 23, 2018. This case arose from officers being called to a local motel for a disturbance involving a man with a gun trying to break into a room. When officers arrived they determined that an unknown male had been trying to get into a room which had been rented by Freeman. Officers then found methamphetamine in Freeman’s motel room. Freeman was located in another room where he had over 250 grams of pure methamphetamine. Freeman was also carrying approximately $1,600 cash.
This matter was investigated by Council Bluffs Police Department, Southwest Iowa Narcotics Enforcement Task Force and the Iowa Department of Criminal Investigation Lab. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Friday 3 August 2018
Wood County Man Sentenced for Possessing Child PornographyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg, West Virginia man was sentenced yesterday to federal prison for a child pornography crime, announced United States Attorney Mike Stuart. Craig Williams, 36, was sentenced to 37 months in prison for the felony offense of possessing child pornography. Williams was also required to serve a term of supervised release of ten years. He is also be required to register as a sex offender. Stuart praised the investigative efforts of the Department of Homeland Security - Homeland Security Investigations and the West Virginia State Police.
“Child predators and child pornographers are monsters and true evidence of the existence of evil. It’s always a good day when child pornographers like Williams are put behind bars,” said United States Attorney Mike Stuart. “We must protect our children from exploitation and abuse.”
Williams previously pleaded guilty on April 18, 2018 to possession of child pornography. Specifically, Williams told the Court that on February 19, 2015, he possessed on his computer pictures of prepubescent minors engaged in sex acts. Williams was using a web-based chatting service to access and download child pornography photographs. Williams received the pornographic pictures over the internet while he was living in Kentucky and they were still on his computer when he moved to and was living in Parkersburg, West Virginia. In total, Williams admitted to possessing nearly 2000 images of minors engaged in sex acts, and that some of those images he possessed involved sadistic conduct directed toward the minors in the photographs.
Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The sentencing hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Wetzel County woman admits to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Holly C. Jenkins, of New Martinsville, West Virginia, has admitted to her role in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Jenkins, age 55, pled guilty to one count of “Possession with Intent to Distribute Heroin.” Jenkins admitted to distributing heroin in March 2018 in Wetzel County.
Jenkins faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Virginia Tax Return Preparer Indicted for Aiding in False Tax Return SchemeRead the Press Release
A federal grand jury has returned an indictment, which was unsealed today, charging a Roanoke, Virginia tax return preparer with aiding and assisting in the preparation of false tax returns and filing a false personal tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to the indictment, Saint Julien Pierre owned and operated a tax return preparation business, JP Tax Services, LLC in Roanoke. The indictment alleges Pierre aided and assisted in the preparation of 2013 and 2014 tax returns for his clients that falsely claimed residential energy credits, fuel tax credits, and itemized deductions, including, charitable contributions and unreimbursed employee expenses, in order to fraudulently increase their refunds. The indictment further charges Pierre with filing a false 2013 tax return for himself, on which he fraudulently sought the same fuel tax credit that he falsely claimed on his clients’ returns.
If convicted, Pierre faces a statutory maximum sentence of three years in prison for each count of preparing false tax returns and three years in prison for the count related to his own tax return. He also faces a period of supervised release, restitution, and monetary penalties. An indictment is an accusation. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen thanked special agents of IRS Criminal Investigation, who conducted the investigation, Tax Division Trial Attorney Lauren A. Archer and Assistant United States Attorney Charlene R. Day of the Western District of Virginia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Van Cleave Man Sentenced to 30 Years in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
Gulfport, Miss. - Terry Lee Reddix, 43, of Vancleave, Mississippi, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr. to 360 months in federal prison, followed by 5 years of supervised release, for possessing with intent to distribute methamphetamine in Vancleave, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On May 23, 2016, Terry Lee Reddix sold methamphetamine to a confidential source from his home on the "Hill" in Van Cleave, Mississippi. Reddix had been distributing methamphetamine from that locale for several years and law enforcement was able to make several purchases of methamphetamine from him. His sentence was reflective of his prior criminal history and the extensive organization he ran from the Hill.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
U.S. Attorney’s Office salutes everyday superheroes at National Night OutRead the Press Release
WHEELING, WEST VIRGINIA – The United States Attorney’s Office will join law enforcement and community leaders on Tuesday, August 7, in Bridgeport, Clarksburg, Martinsburg, and Wheeling as part of the annual National Night Out crime and drug prevention event, according to U.S. Attorney Bill Powell.
National Night Out was created to strengthen relationships between the community and law enforcement, heighten crime and drug prevention awareness, and help make our neighborhoods safer.
The U.S. Attorney’s Office theme this year is “Thank You to Our Everyday Superheroes,” saluting first responders. Staff from the U.S. Attorney’s office will be asking participants to sign a large thank you card for the organizing police department at each event.
“There’s never been a better time to support our local law enforcement and first responders. These men and women put their lives on the line every day to keep our communities safer. We are proud to participate in National Night Out and to show our gratitude,” said Powell.
The United States Attorney’s Office will be present at four National Night Out events, to include the events at the Bridgeport City Pool in Bridgeport, the VA Park in Clarksburg, the War Memorial Park in Martinsburg, and Wheeling Park in Wheeling. Each of these events will begin at 6 p.m.
National Night Out organizers are expecting over 16,000 communities and 38 million people to take part in community events on Tuesday across the country.
U.S. Attorney's Office Announces Settlement with BNSF RailwayRead the Press Release
MISSOULA – The United States Attorney’s Office announced today that BNSF Railway Company has agreed to settle a lawsuit brought on behalf of the United States Forest Service regarding road use and damage on the Kootenai National Forest.
The lawsuit alleges that BNSF Railway damaged Forest Service roads on the Kootenai National Forest and failed to pay its fair share of costs for its commercial use of Forest Service roads. First, the lawsuit claims that in 2011, a train derailed from the BNSF line and spilled grain in an area along the BNSF line adjacent to a Forest Service road. The United States alleges that the grain removal and clean up from the spill damaged Forest Service roads, and BNSF has refused to pay for the damage to the road. The United States also claims that, since 2014, BNSF Railway has refused to pay the costs for road maintenance and permit fees associated with the use of overweight vehicles during seasonal road closures on the Kootenai National Forest. Last, the United States alleges BNSF Railway has trespassed on numerous Forest Service roads without obtaining the appropriate permits or authority.
Under the settlement, BNSF Railway will pay the United States $200,000. It will also spend up to $750,000 through 2019 to repair and maintain Forest Services roads located on the Kootenai National Forest that were damaged by its past use. In addition, BNSF Railway and the Kootenai National Forest have entered a Commercial Road Use Permit and a Forest Road Operation and Maintenance Agreement. These agreements will govern BNSF Railway’s use of Forest Service roads on the Kootenai National Forest in the future and require BNSF Railway to make annual contributions to Forest Service road maintenance.
“This settlement demonstrates our commitment to ensuring that commercial road users such as BNSF Railway, which utilize public land and roads for their businesses, pay their fair share for the wear and tear they cause to our public resources,” said U.S. Attorney Kurt Alme of the District of Montana. “Our office, in conjunction with the Forest Service, will continue to protect our public resources and ensure that taxpayers are not required to pay for damage caused by a business operating across federal land.
“I am pleased that we have come to a resolution on this issue and look forward to working with BNSF into the future on the Kootenai National Forest,” added Chris Savage, Forest Supervisor for the Kootenai National Forest.
The case, United States of America v. BNSF Railway Company, Cause No. CV-17-20-M-DLC-JCL (D. Mont.) was filed in February 2017 by Assistant U.S. Attorney Megan Dishong and stayed during the parties’ settlement negotiations. Following the settlement between the United States and BNSF Railway, the federal district court has dismissed the case.
Two Former Biscayne Park Patrol Officers Plead Guilty to Deprivation of a Juvenile’s Civil Rights by Intentionally Making False ArrestsRead the Press Release
Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officers Charlie Dayoub and Raul Fernandez pleaded guilty today to depriving a 16-year old juvenile, “T.D.,” of his Civil Rights by falsely arresting T.D. for four unsolved burglaries.
As noted at the hearing and in court filings, on June 13, 2013, former officers Dayoub and Fernandez were both working on duty for the Village of Biscayne Park Police Department. On June 13, their supervisor instructed them to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief RA and Dayoub, for unsolved burglaries that had occurred in Biscayne Park. Dayoub and Fernandez complied with Chief RA’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like the supervisor and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
Dayoub and Fernandez both pleaded guilty to count two of a superseding indictment charging each defendant with deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. The defendants are both facing up to one year of incarceration as a result of their guilty pleas. The Court set the sentencing date for both of the defendants on Oct. 16.
This case is being investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Former Biscayne Park Patrol Officers Plead Guilty to Deprivation of a Juvenile’s Civil Rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officers Charlie Dayoub and Raul Fernandez pleaded guilty today to depriving a 16-year old juvenile, “T.D.,” of his Civil Rights by falsely arresting T.D. for four unsolved burglaries.
As noted at the hearing and in court filings, on June 13, 2013, former officers Dayoub and Fernandez were both working on duty for the Village of Biscayne Park Police Department. On June 13, their supervisor instructed them to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief RA and Dayoub, for unsolved burglaries that had occurred in Biscayne Park. Dayoub and Fernandez complied with Chief RA’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like the supervisor and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
Dayoub and Fernandez both pleaded guilty to count two of a superseding indictment charging each defendant with deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. The defendants are both facing up to one year of incarceration as a result of their guilty pleas. The Court set the sentencing date for both of the defendants on Oct. 16.
This case is being investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Charged with Stealing Packages and Mail from Apartment Buildings in Shadyside and North OaklandRead the Press Release
PITTSBURGH- Two Allegheny County residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and mail theft, United States Attorney Scott W. Brady announced today.
The four-count indictment, returned on July 31, named Christopher Eric Carr, 45, of Munhall, Pa., and Ron Matthew Sharp, 42, of Duquesne, Pa., as defendants.
According to the indictment, from February through May of 2018, Carr and Sharp entered multiple apartment buildings in the Shadyside and North Oakland areas of Pittsburgh and opened United States Postal Service packages or other mail items that were not addressed to them, stole packages, and stole items from within packages that had been left at authorized mail depositories. Defendants then provided items they had stolen from the mail, including gift cards, to others, who redeemed the gift cards at various locations, including Giant Eagle and GetGo. Defendants also re-sold, and instructed others to attempt to re-sell, items defendants had stolen from the mail.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Trail and Boswell Sentenced for Interstate Transportation of Stolen PropertyRead the Press Release
United States Attorney Joe Kelly announced that Bailey Marie Boswell, 24, and Aubrey Clifton Trail, 51, were sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard, for interstate transportation of stolen property. Boswell received a sentence of 5 years, while Trail was sentenced to 10 years in prison. Restitution in the total amount of $407,782 was also ordered to be paid to the two victims in this case. Both were also given 3 years of supervised release.
Beginning in December, 2015, through November, 2017, Trail was falsely representing himself as “Alan Russell,” and approached the victims in this scheme with a proposal to jointly purchase a rare gold coin and share in the profits from the “sale” of that coin. Trail falsely represented the value of the gold coin to be far in excess of the price to be paid by “Russell” and the victim. Trail then requested money from the victims in order to help the “sale” of the coin to purchasers that he claimed to have, when in reality there was never a “sale” and the coin was not a gold coin of such high value.
In an attempt to make the victims believe that the “sale” of the coin was legitimate, in February, 2017, Trail and Boswell set up false documents and websites and Boswell falsely portrayed herself as a broker. Through the course of the scheme, Trail and Boswell would travel from Nebraska to Kansas to pick up money and property from the victims, all under the guise that such money and property was to aide in the “sale” of the gold coin. In total, Trail and Boswell received more than $400,000 in money and property from the victims which they used for personal use.
This case was investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Tobyhanna Woman Pleads Guilty to Making Straw Purchases of FirearmsRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kassandra Mattox, age 25, of Tobyhanna, Monroe County, pleaded guilty on August 1, 2018, before United States District Court Senior Judge A. Richard Caputo to making false statements to a federally licensed firearms dealer in connection with the purchase of multiple firearms.
According to United States Attorney David J. Freed, Mattox admitted to providing false information regarding the purchase of two firearms from Dunkelberger’s Sports Outfitter, in Stroudsburg, Monroe County, on October 27, 2016. One of the firearms purchased by Mattox was recovered by police during a traffic stop in Monroe County involving another individual. Mattox was previously indicted by a grand jury in September 2017.
A sentencing date for Mattox has not yet been scheduled.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Investigators from the Pennsylvania State Police and the Pocono Mountain Regional Police Department also participated in the investigation. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three Men Sentenced to Prison for Roles in Burglary and Robbery on Hopi ReservationRead the Press Release
PHOENIX – This week, Kaleb June, 24, was sentenced by U.S. District Judge David G. Campbell to 33 months of imprisonment. June, an enrolled member of the Navajo Nation, had previously pleaded guilty to robbery.
On Sept. 10, 2016, June and two others burglarized a Hopi tribal administration building. After leaving the building, they went to a nearby convenience store and robbed it at gunpoint. Each of these crimes occurred in Moenkopi, Ariz., on the Hopi Indian Reservation.
Earlier this year, June’s co-conspirators were likewise sentenced to prison for their roles in the same crimes. Jonathan Phillips, 20, was sentenced to 36 months’ imprisonment after he pleaded guilty to robbery. Morgan Black, 20, was sentenced to 27 months’ imprisonment after he pleaded guilty to burglary. Both Phillips and Black are enrolled members of the Hopi Tribe. June, Phillips, and Black were all living in the Moenkopi-Tuba City area at the time of the crimes.
The investigation in this case was conducted by the Federal Bureau of Investigation and Bureau of Indian Affairs – Office of Justice Services (Hopi Agency). The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8256-PCT-DGC; CR-17-8116-PCT-GMS
RELEASE NUMBER: 2018-099_June etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Springfield Man Charged with Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was arrested today and charged in federal court in Springfield with two counts of distribution of crack cocaine.
Alonzo Williams Jr., 30, was charged in an indictment with two counts of distribution of crack cocaine. Williams appeared in federal court in Springfield today and was detained pending a detention hearing.
The indictment alleges that in October 2017, Williams distributed cocaine base on two occasions.
Williams faces no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of $2 million. 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 Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James Neiswanger made the announcement today. Assistance was provided by the Hampden and Berkshire County Sheriff’s Departments, and the West Springfield and Chicopee Police Departments. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.