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Friday 3 August 2018
Sioux Falls Man Sentenced to 30 Years for Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Sioux Falls, South Dakota, man convicted of distribution and receipt of child pornography on August 2, 2018.
Jason Jorgenson, age 33, was sentenced to 30 years in federal prison, followed by 10 years of supervised release, ordered to pay $100 to the Federal Crime Victims Fund, and forfeit his cell phone.
Jorgenson was indicted for possession, distribution, and receipt of child pornography by a federal grand jury on May 9, 2017. He pled guilty on April 2, 2018.
Jorgenson is a repeat felon. Before the commission of these particular crimes, he had been released from prison in September 2016 after serving a four-year prison sentence for a previous child exploitation felony conviction. In December of 2016 and January 2017, the National Center for Missing and Exploited Children (NCMEC) generated two cyber-tips about child pornography being distributed from Jorgenson's residence in Sioux Falls. An investigation of Jorgenson by Homeland Security Investigations led to the discovery of multiple internet accounts he was using to receive and distribute digital files of child pornography, often using false names to try to hide his identity.
This case was investigated by the Homeland Security Investigations of the Department of Homeland Security and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Jorgenson was immediately turned over to the custody of the U.S. Marshals Service.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Salvadoran national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Wilfredo Carmona-Ponce, 38, was sentenced by U.S. District Court Judge Denise J. Casper to 15 months in prison and two years of supervised release. Carmona-Ponce will be subject to deportation proceedings upon completion of his sentence.
On March 23, 2016, law enforcement officers in Stoneham encountered Carmona-Ponce and determined him to be illegally present in the United States. Carmona-Ponce was previously deported on March 19, 2014.
United States Attorney Andrew E. Lelling and Rebecca Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Criminal Division prosecute the case.
Randolph County man admits to making a destructive deviceRead the Press Release
ELKINS, WEST VIRGINIA – Robert C. Ard, of Elkins, West Virginia, has admitted to charges involving two homemade explosive devices found in his home, United States Attorney Bill Powell announced.
Ard, age 54, pled guilty to one count of “Making an Unlawful Firearm.” Ard admitted to making a firearm, that is a destructive device.
On June 18, 2018, a search warrant was executed at Ard’s residence because agents had reason to believe there were explosive devices and materials used to make an IED. Upon searching the apartment, agents found two destructive devices and additional components used to construct said devices.
Ard faces up to 10 years incarceration and a fine of $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Prime Healthcare Services and its CEO Agree to Pay $65 Million to Settle Medicare Overbilling Allegations at 14 California HospitalsRead the Press Release
LOS ANGELES – Prime Healthcare Services, Inc.; Prime Healthcare Foundation, Inc.; Prime Healthcare Management, Inc.; and Prime’s Founder and chief executive officer, Dr. Prem Reddy, have agreed to pay the United States $65 million to settle allegations that 14 Prime hospitals in California knowingly submitted false claims to Medicare by admitting patients who required only less costly, outpatient care and by billing for more expensive patient diagnoses than the patients had (a practice known as “up-coding”).
Under the settlement agreement, Reddy will pay $3.25 million and Prime will pay $61.75 million.
Headquartered in Ontario, California, Prime Healthcare Services and the not-for-profit Prime Healthcare Foundation constitute one of the largest hospital systems in the nation, with 45 acute-care hospitals located in 14 states.
The following 10 hospital defendants owned by Prime Healthcare Services are parties to the settlement agreement: Alvarado Hospital Medical Center, Garden Grove Medical Center, La Palma Intercommunity Hospital, Desert Valley Hospital, Chino Valley Medical Center, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, West Anaheim Medical Center and Centinela Hospital Medical Center. Four other hospital defendants owned by Prime Healthcare Foundation are also parties to the settlement agreement: Sherman Oaks Hospital, Montclair Hospital Medical Center, Huntington Beach Hospital and Encino Hospital Medical Center. Prime Healthcare Management, a subsidiary of Prime Healthcare Services, provides management, consulting and support services to hospitals owned and operated by Prime.
The settlement resolves allegations that, from 2006 through 2013, Prime engaged in a deliberate, corporate-driven scheme to increase inpatient admissions of Medicare beneficiaries who originally presented to the Emergency Departments at the 14 Prime hospitals in California. The government claimed that the inpatient admission of these beneficiaries was not medically necessary because their symptoms and treatment needs should have been managed in a less-costly outpatient or observation setting. Hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient treatment; therefore, the admission of beneficiaries who do not need inpatient care, as alleged here, can result in substantial financial harm to the Medicare program.
The settlement also resolves allegations that, from 2006 through 2014, Prime engaged in up-coding by falsifying information concerning patient diagnoses, including complications and comorbidities, in order to increase Medicare reimbursement.
“Patients and taxpayers who finance health care programs such as Medicare deserve to know that doctors are making decisions solely based on medical need – and not based on a corporate desire to increase billings,” said First Assistant United States Attorney Tracy Wilkison. “The Justice Department is committed to preserving the integrity of public health programs and preventing improper billing practices.”
“This settlement reflects our ongoing commitment to ensure that health care providers appropriately bill Medicare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Charging the government for higher cost inpatient services that patients do not need, and for higher-paying diagnoses than the patients have, wastes the country’s valuable health care resources.”
Prime also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Prime is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to Medicare beneficiaries.
“When health care companies try to boost their profits by billing federal health care programs for more expensive services than they needed to provide, the Office of Inspector General will ensure they are held accountable for their deceptive schemes,” said Christian J. Schrank, Special Agent in Charge for the HHS-OIG’s, Los Angeles Regional Office.
“Those who engage in health care fraud, including corrupt doctors and medical professionals driven by greed, exploit helpless or unwitting patients in violation of the oath they took to protect us – and often American taxpayers are the victims,” said Paul D. Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “By reaching this settlement, the FBI and our partners are holding Prime Healthcare accountable for exaggerating patients’ needs and inflating the severity of their symptoms while handsomely lining their pockets. This case should send a clear message to others who intend to engage in similar schemes that rout the American healthcare system.”
This settlement resolves a False Claims Act (FCA) lawsuit filed in federal court in Los Angeles by Karin Berntsen, the former director of performance improvement at Alvarado Hospital Medical Center in San Diego. Under the qui tam, or whistleblower, provisions of the FCA, private citizens are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The FCA also permits the government to intervene and take over the lawsuit, as it did in this case as to some of Ms. Berntsen’s allegations. Ms. Berntsen will receive $17,225,000 as her portion of the settlement amount.
Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The settlement was a result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Central District of California, the Federal Bureau of Investigation’s Los Angeles Field Office, FBIHQs Major Provider Response Team, and HHS-OIG.
The case is United States ex rel. Karin Berntsen v. Prime Healthcare Services, Inc., et al., CV11-08214-PJW (C.D. Cal.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Prime Healthcare Services and CEO to Pay $65 Million to Settle False Claims Act AllegationsRead the Press Release
Prime Healthcare Services, Inc., Prime Healthcare Foundation, Inc., and Prime Healthcare Management, Inc. (collectively Prime), and Prime’s Founder and Chief Executive Officer, Dr. Prem Reddy, have agreed to pay the United States $65 million to settle allegations that 14 Prime hospitals in California knowingly submitted false claims to Medicare by admitting patients who required only less costly, outpatient care and by billing for more expensive patient diagnoses than the patients had (a practice known as “up-coding”), the Justice Department announced today. Under the settlement agreement, Dr. Reddy will pay $3,250,000 and Prime will pay $61,750,000.
“This settlement reflects our ongoing commitment to ensure that health care providers appropriately bill Medicare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Charging the government for higher cost inpatient services that patients do not need, and for higher-paying diagnoses than the patients have, wastes the country’s valuable health care resources.”
Headquartered in Ontario, California, Prime Healthcare Services and not-for-profit Prime Healthcare Foundation constitute one of the largest hospital systems in the nation, with 45 acute-care hospitals located in 14 states. The following 10 hospital defendants owned by Prime Healthcare Services are parties to the settlement agreement: Alvarado Hospital Medical Center, Garden Grove Medical Center, La Palma Intercommunity Hospital, Desert Valley Hospital, Chino Valley Medical Center, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, West Anaheim Medical Center and Centinela Hospital Medical Center. The following 4 hospital defendants, owned by Prime Healthcare Foundation, are also parties to the settlement agreement: Sherman Oaks Hospital, Montclair Hospital Medical Center, Huntington Beach Hospital and Encino Hospital Medical Center. Prime Healthcare Management, a subsidiary of Prime Healthcare Services, provides management, consulting and support services to hospitals owned and operated by Prime.
The settlement resolves allegations that from 2006 through 2013, Prime engaged in a deliberate corporate-driven scheme to increase inpatient admissions of Medicare beneficiaries who originally presented to the Emergency Departments at 14 Prime hospitals in California. The government claimed that the inpatient admission of these beneficiaries was not medically necessary because their symptoms and treatment needs should have been managed in a less costly outpatient or observation setting. Hospitals generally receive significantly higher payments from Medicare for inpatient admissions as opposed to outpatient treatment; therefore, the admission of beneficiaries who do not need inpatient care, as alleged here, can result in substantial financial harm to the Medicare program. The settlement also resolves allegations that, from 2006 through 2014, Prime engaged in up-coding by falsifying information concerning patient diagnoses, including complications and comorbidities, in order to increase Medicare reimbursement.
“Patients and taxpayers who finance health care programs such as Medicare deserve to know that doctors are making decisions solely based on medical need – and not based on a corporate desire to increase billings,” said First Assistant United States Attorney Tracy Wilkison for the Central District of California. “The Justice Department is committed to preserving the integrity of public health programs and preventing improper billing practices.”
Prime also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Prime is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to Medicare beneficiaries.
“When health care companies try to boost their profits by billing federal health care programs for more expensive services than they needed to provide, the Office of Inspector General will ensure they are held accountable for their deceptive schemes,” said Christian J. Schrank, Special Agent in Charge for the HHS-OIG’s, Los Angeles Regional Office.
“Those who engage in health care fraud, including corrupt doctors and medical professionals driven by greed, exploit helpless or unwitting patients in violation of the oath they took to protect us - and often American taxpayers are the victims,” said Paul D. Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “By reaching this settlement, the FBI and our partners are holding Prime Healthcare accountable for exaggerating patients’ needs and inflating the severity of their symptoms while handsomely lining their pockets. This case should send a clear message to others who intend to engage in similar schemes that rout the American healthcare system.”
This settlement resolves a lawsuit filed under the False Claims Act (FCA) in the U.S. District Court for the Central District of California by Karin Berntsen, former Director of Performance Improvement at Alvarado Hospital Medical Center in San Diego. Under the qui tam or whistleblower provisions of the FCA, private citizens are permitted to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The FCA also permits the government to intervene and take over the lawsuit, as it did in this case as to some of Ms. Berntsen’s allegations. Ms. Berntsen will receive $17,225,000 as her portion of the settlement amount.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The settlement was a result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Central District of California, the Federal Bureau of Investigation’s Los Angeles Field Office, FBIHQs Major Provider Response Team, and the HHS-OIG.
The case is captioned United States ex rel. Karin Berntsen v. Prime Healthcare Services, Inc., et al. No. CV 11-08214 PJW (C.D. Cal.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Pittsburgh Felon Sentenced to Prison for illegally Possessed and Sold FirearmsRead the Press Release
PITTSBURGH – A resident of Allegheny County has been sentenced in federal court to 30 months imprisonment and three years supervised release on his convictions for violating federal firearms laws, United States Attorney Scott W. Brady announced today.
On August 3, 2018, United States District Court Judge Mark Hornak imposed the sentence on Dalton Douglas Duschl, age 23, of Pittsburgh, Pennsylvania.
According to information presented to the court, between January 3, 2017, and February 13, 2017, Duschl, a felon, knowingly possessed and sold four firearms, two of which were stolen, to undercover law enforcement agents. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Allegheny County Police Department for the investigation leading to the successful prosecution of this case.
Opioid Crisis Update: Men Make Federal Appearances on Heroin ChargesRead the Press Release
United States Attorney Ron Parsons announces that three men have made their initial appearances before U.S. Magistrate Judge Veronica L. Duffy on charges related to their heroin distribution in the Sioux Falls area.
Maurice Cathey, age 37, of Chicago, Illinois, was indicted by a federal grand jury for conspiracy to distribute heroin resulting in death and serious bodily injury. Cathey appeared before Judge Duffy on July 19, 2018. He was returned to the custody of the Minnehaha County Sheriff. If convicted, Cathey faces a mandatory period of twenty years in prison and a maximum of life.
Jacob Lottman, age 25, of Sioux Falls, South Dakota, was indicted by a federal grand jury for distribution of heroin resulting in serious bodily injury. Lottman appeared before Judge Duffy on July 13, 2018, and was placed into the custody of the U.S. Marshals. If convicted, Lottman faces a mandatory period of twenty years in prison and a maximum of life.
Devlin Tommeraasen, age 23, of Sioux Falls, South Dakota, was indicted by a federal grand jury for conspiracy to distribute heroin. Tommeraasen appeared before Judge Duffy on July 19, 2018. He was placed into the custody of the U.S. Marshals. If convicted, Tommeraasen faces a maximum of twenty years in prison.
The charges are merely accusations and these defendants are presumed innocent until and unless proven guilty.
Approximately 64,000 Americans lost their lives to drug overdoses in 2016 – the highest drug death toll in American history. This year, at least twelve drug overdose deaths have occurred in Minnehaha County alone.
Many of the drug overdoses occurring in South Dakota in the past year have resulted from the sale of heroin laced with fentanyl – a synthetic opioid much stronger than heroin. Fentanyl is sold in many forms, such as powder, crystals, or liquid, and even a tiny amount can kill. The estimated lethal dose of pharmaceutical grade fentanyl in humans is two milligrams, the mass of about two grains of salt, shown next to a Lincoln penny in the picture below:
Even worse, fentanyl analogues, like carfentanil, are even more potent than fentanyl and are being trafficked with increasing frequency.
Fentanyl can be mixed into other drugs, such as heroin and cocaine, or pressed into pills and sold as counterfeit prescription drugs. Users who seek to obtain these other drugs often have no idea that they are actually putting something much deadlier into their bodies.
The U.S. Attorney’s Office is working closely with the Sioux Falls Area Drug Task Force, Drug Enforcement Administration, the Minnehaha County Sheriff’s Office, and our other federal, state, and local law enforcement partners to investigate and prosecute these cases.
Opinion: Protecting Americans from Violent OffendersRead the Press Release
By Thomas T. Cullen
U.S. Attorney, Western District of Virginia
As we enter the 2018 midterm season and the attendant legislative interregnum, Congress can and should take bipartisan action to protect us from repeat violent offenders.
In 1984, President Reagan signed into law the Armed Career Criminal Act (ACCA). Under the ACCA, felons convicted of unlawfully possessing a firearm face a mandatory minimum sentence of 15 years if they had three or more prior convictions for a “serious drug offense” or a “violent felony.”
This federal statute, along with other criminal-justice initiatives, including parole abolition, bail reform, and the U.S. Sentencing Guidelines, were passed to address an alarming two-decade increase in violent crime.
As Attorney General Jeff Sessions recently noted, between 1964 and 1980, the number of robberies and rapes tripled, aggravated assaults nearly tripled, and murders doubled.
The ACCA and these other reforms were a resounding success. Between 1991 and 2014, the murder and aggravated-assault rates decreased by half. Robberies decreased by two-thirds and rapes by more than a third.
The U.S. Supreme Court in 2015 dealt a severe blow to the ACCA and violent-crime reduction efforts. In Johnson v. United States, the Court considered whether Samuel Johnson, an avowed white supremacist who had confessed to planning multiple acts of domestic terrorism, should be subject to the mandatory 15-year sentence under the ACCA after pleading guilty to the possession of an AK-47 rifle, several other firearms, and over 1,000 rounds of ammunition as a previously convicted felon.
At issue in Johnson was whether one of the defendant’s multiple prior felony convictions – unlawful possession of a sawed-off shotgun – constituted a “violent felony” under the statute. The Court determined that this prior conviction did not qualify and that Johnson therefore could not face the mandatory penalty. In reaching this conclusion, the Court held that the ACCA’s so-called “residual clause,” which included, in the definition of a violent felony, offenses that involved “conduct that presents a serious risk of physical injury to another,” was unconstitutionally vague and struck it from the statute.
In the three years since the Supreme Court gutted the ACCA, and in the absence of a “legislative fix,” lower federal courts have struggled to craft and apply a consistent framework for deciding whether—and under what circumstances—various categories of seemingly violent offenses can still be counted towards enhanced penalties.
The results have been inconsistent and absurd. For example, courts across the country have recently held that sexual abuse by forcible compulsion, armed robbery, resisting arrest, assault and battery on a police officer, felony domestic assault, terroristic threatening, interfering with a flight crew, sex trafficking of a minor, conspiracy to commit murder in aid of racketeering, and, perhaps most ironically, using a firearm during and in relation to a crime of violence do not constitute violent crimes. As then-Chief Judge of the U.S. Court of Appeals for the Fourth Circuit William B. Traxler, Jr., lamented in a recent case, “And this, finally, is what we have come to: plotting to murder one’s fellow human beings is not a crime of violence. Heaven help us.”
As a result of Johnson and the cases that followed in its wake, federal prosecutors are no longer able to obtain meaningful sentences for repeat violent offenders. That problem is compounded by the fact that, in the three years since Johnson was decided, more than 1400 recidivist offenders have successfully petitioned for early release from prison. Of those who have been out of prison at least two years, a majority have already reoffended. And as Attorney General Sessions recently noted, of the 1400 inmates released in the last three years, 600 have already been re-arrested on average, at least three times. This number is staggering.
Among the Johnson reoffenders who won early release are Jeffrey Giddings, Abe Martinez, and Jerrod Baum. In August 2016, following his release from prison, Giddings, who previously had racked up more than 20 convictions between 1991 and his incaceration, shot an Oregon police officer and took two restaurant employees hostage. In June, Martinez absconded from a Utah half-way house before murdering his 89-year-old grandmother. Earlier this year, Baum, also of Utah, allegedly kidnapped and murdered a teenage couple before throwing their bodies down an abandoned mine shaft. But for Johnson, all of these victims would be alive today.
Over the past several months, Attorney General Sessions, DOJ, and the U.S. Attorney community have attempted to increase awareness in Congress on this critical issue. These initial efforts met with some resistance by members of both parties who generally oppose the application of mandatory minimums in cases involving non-violent drug offenders.
The persistence, however, is beginning to pay off. Many who were initially skeptical about ACCA-reform efforts now correctly realize that punishing recidivist violent offenders has absolutely nothing to do with the application of mandatory minimums in drug cases. Stated differently, there may be an emerging consensus in Congress that a member can advocate for drug-sentencing reform while taking action to restore the authority of federal prosecutors to target violent career criminals with guns.
It’s time for Congress to act on the ACCA. Unless this important statute is returned to its intended use, we are all less safe.
Northwest ENT Associates, P.C. to pay approximately $1.2 million to resolve False Claims Act allegationsRead the Press Release
ATLANTA –Northwest ENT Associates, P.C. (“Northwest ENT”), a Marietta, Georgia based professional corporation, has agreed to pay $1,195,361 to resolve allegations that it violated the False Claims Act by submitting claims for sinus dilation procedures in which it re-used balloon catheters that were intended for single use only.
“When healthcare providers take shortcuts in order to increase their financial bottom line, their patients are put at risk and federal funds are diverted from legitimate medical procedures,” said U. S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to pursuing healthcare providers who put their own financial well-being ahead of the well-being of their patients.”
“The goal of our agency is to protect the health and safety of the American tax payer,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners by investigating allegations where the health and safety of Medicare beneficiaries are at risk.”
“American consumers expect and deserve that the devices used by their health care practitioners during medical procedures are not only safe and effective, but also have been held under sanitary conditions,” said Peter Kuehl, Acting Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigations’ Miami Field Office. “FDA remains fully committed to working with the Department of Justice and our law enforcement partners to hold those who place profits before the health and safety of patients fully accountable.”
“This settlement demonstrates the Government’s commitment to protect public funds that support the operations of our armed forces healthcare program (TRICARE) from fraud and abuse,” said John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service-Southeast Field Office. “Every military contractor that submits claims must ensure that its claims are billed appropriately. DCIS and its partnering agencies will continue to vigorously pursue defense contractors that disregard billing requirements.”
“Federal employees deserve health care providers that meet the highest standards of ethical and professional behavior,” said Bret Mastronardi, Special Agent in Charge for the Office of Personnel Management - Office of the Inspector General. “Today’s settlement reminds all providers that they must observe those standards, and reflects the OPM-OIG’s commitment to pursuing improper and illegal billings that increase the cost of medical care.”
Northwest ENT has five office locations, operates a single specialty surgery center, and provides services at four hospitals in Georgia. The physicians at Northwest ENT specialize in the medical field of otolaryngology and are commonly referred to as “ear nose and throat” or “ENT” physicians.
Among the procedures that Northwest ENT performed, is the treatment of sinusitis with a “balloon catheter,” which is inserted into the patient’s sinus and inflated by the physician to enlarge the sinus cavity. The balloon catheters that Northwest ENT used was cleared by the U.S. Food and Drug Administration as intended for single use only. Despite this, the physicians at Northwest ENT re-used the devices on their patients, instead of using a new device for each patient. The civil settlement resolves the government’s investigation into these allegations.
The government alleges that Northwest ENT violated the False Claims Act, 31 U.S.C. § 3729, et seq., by causing the submission of false claims to Medicare, TRICARE and Federal Employee Health Benefit Plans for sinus dilation procedures during the period March 1, 2011 through March 30, 2012, in which the single-use balloon catheters were re-used on their patients.
In addition, pursuant to a Non-Prosecution Agreement with the United States, Northwest ENT has accepted responsibility for its actions. It has entered into a three-year Integrity Agreement with the Office of the Inspector General of the Department of Health and Human Services. Under the agreement, an independent organization will review Northwest ENT’s claims quarterly for medical necessity, accurate coding, and safe and appropriate use of medical devices.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of Inspector General, the Food and Drug Administration – Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Office of Personnel Management - Office of the Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David, Deputy Chief of the Civil Division. The criminal resolution was reached by Assistant U.S. Attorney Randy Chartash.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Northwest ENT Settlement Agreement
NW ENT Settlement AgreementNorth Carolina Man Sentenced to Prison for Role in Multi-State Dog Fighting ProsecutionRead the Press Release
A North Carolina man was sentenced yesterday to one year and one day in prison to be followed by three years of supervised release for his role in dog fighting activities, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina and Special Agent in Charge Bethanne M. Dinkins for the U.S. Department of Agriculture’s Office of Inspector General.
On Jan. 12, Brexton Redell Lloyd, 54, of Eagle Springs, North Carolina, pleaded guilty to one felony count of conspiracy and two felony counts of possession and training a dog intended for use in an animal fighting venture, contrary to the animal fighting provisions of the federal Animal Welfare Act.
According to documents filed with the court, Lloyd participated with Justin “Jay” Love and others in a multi-state dog fighting conspiracy. These documents describe Lloyd and Love’s attempt to set up a dog fight between Lloyd and an unknown opponent in October 2015 and Lloyd’s breeding and training activities. Court documents further note that last year, federal agents seized 13 pitbull-type dogs from Lloyd’s residence. Ten of the dogs were secured outdoors by excessive chains, wearing thick collars, and positioned so that each dog was out of reach of any other dog. The other dogs were housed individually in pens. The water in the dogs’ bowls was frozen. Two of the four adult dogs seized exhibited scars consistent with dog fighting, and a third adult dog had four fractured teeth. In addition to the dogs, agents seized items related to training dogs for dog fighting purposes, including: a spring pole, a dog harness, and a hanging scale. Agents also seized veterinary supplies, including intravenous fluids, intravenous administration sets stated for “Veterinary Use Only,” injectable and other antibiotics, a 100-count package of syringes, blood-clotting medications such as Blood Stop Powder, and a skin stapler.
“Animal cruelty like the conduct in this case has no place in a civilized society,” said Acting Assistant Attorney General Wood. “Yesterday’s sentencing sends a strong message that we are bringing to justice those who engage in illegal dog fighting and that anyone who engages in this conduct does so at the risk of significant jail time.”
“Dog fighting isn’t entertainment, it’s organized crime, and it has no place in our society,” said United States Attorney Matthew G.T. Martin for the Middle District of North Carolina. Martin added, “I thank our law enforcement partners at the Department of Agriculture, the Federal Bureau of Investigation, the Moore County Sheriff’s Office, and the N.C. State Highway Patrol for their exceptional coordination in bringing this defendant to justice.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Dinkins for USDA OIG. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, over one hundred dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
This case was investigated by USDA OIG and FBI, with assistance from the Moore County Sheriff’s Office and the North Carolina Highway Patrol, and was prosecuted by Trial Attorney Erica H. Pencak of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney JoAnna G. McFadden of the Middle District of North Carolina.
North Carolina Man Sentenced to Prison for Role in Multi-State Dog Fighting ProsecutionRead the Press Release
WASHINGTON - A North Carolina man was sentenced yesterday to one year and one day in prison to be followed by three years of supervised release for his role in dog fighting activities, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina and Special Agent in Charge Bethanne M. Dinkins for the U.S. Department of Agriculture’s Office of Inspector General.
On Jan. 12, Brexton Redell Lloyd, 54, of Eagle Springs, North Carolina, pleaded guilty to one felony count of conspiracy and two felony counts of possession and training a dog intended for use in an animal fighting venture, contrary to the animal fighting provisions of the federal Animal Welfare Act.
According to documents filed with the court, Lloyd participated with Justin “Jay” Love and others in a multi-state dog fighting conspiracy. These documents describe Lloyd and Love’s attempt to set up a dog fight between Lloyd and an unknown opponent in October 2015 and Lloyd’s breeding and training activities. Court documents further note that last year, federal agents seized 13 pitbull-type dogs from Lloyd’s residence. Ten of the dogs were secured outdoors by excessive chains, wearing thick collars, and positioned so that each dog was out of reach of any other dog. The other dogs were housed individually in pens. The water in the dogs’ bowls was frozen. Two of the four adult dogs seized exhibited scars consistent with dog fighting, and a third adult dog had four fractured teeth. In addition to the dogs, agents seized items related to training dogs for dog fighting purposes, including: a spring pole, a dog harness, and a hanging scale. Agents also seized veterinary supplies, including intravenous fluids, intravenous administration sets stated for “Veterinary Use Only,” injectable and other antibiotics, a 100-count package of syringes, blood-clotting medications such as Blood Stop Powder, and a skin stapler.
“Animal cruelty like the conduct in this case has no place in a civilized society,” said Acting Assistant Attorney General Wood. “Yesterday’s sentencing sends a strong message that we are bringing to justice those who engage in illegal dog fighting and that anyone who engages in this conduct does so at the risk of significant jail time.”
“Dog fighting isn’t entertainment, it’s organized crime, and it has no place in our society,” said United States Attorney Matthew G.T. Martin for the Middle District of North Carolina. Martin added, “I thank our law enforcement partners at the Department of Agriculture, the Federal Bureau of Investigation, the Moore County Sheriff’s Office, and the N.C. State Highway Patrol for their exceptional coordination in bringing this defendant to justice.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Dinkins for USDA OIG. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, over one hundred dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
This case was investigated by USDA OIG and FBI, with assistance from the Moore County Sheriff’s Office and the North Carolina Highway Patrol, and was prosecuted by Trial Attorney Erica H. Pencak of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney JoAnna G. McFadden of the Middle District of North Carolina.
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Nicaraguan National Pleads Guilty to Illegal Reentry of a Removed AlienRead the Press Release
U.S. Attorney Duane A. Evans announced that PAULO EMILIO OSABAS-MUNGUIA, age 32, a citizen of Nicaragua, pleaded guilty today to a one-count Bill of Information for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to the court documents, OSABAS-MUNGUIA was found in the United States on or about April 18, 2018, after having been previously removed on August 12, 2009.
At sentencing, OSABAS-MUNGUIA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. Sentencing is set for September 6, 2018 before United States District Judge Jane Triche Milazzo.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
New London Man Sentenced to 46 Months in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILFREDO LEBRON, also known as “Tony,” 47, of New London, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by one year of supervised release, for his role in a southeastern Connecticut heroin trafficking ring.
According to court documents and statements made in court, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Michael Luciano operated a drug trafficking organization that distributed heroin to numerous street-level dealers, including LEBRON, in southeastern Connecticut.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging LEBRON, Luciano and 19 other individuals with various heroin trafficking offenses. LEBRON was arrested on December 14, 2017. On April 27, 2018, he pleaded guilty to one count of use of a telephone to facilitate the commission of a drug trafficking felony. He has been detained since his arrest.
LEBRON’s criminal history includes five felony convictions.
Luciano, of New London, has been detained since his arrest on November 14, 2017. On June 27, 2018, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin.
This matter is being investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Jocelyn Courtney Kaoutzanis.
Naugatuck Man Pleads Guilty to Crack Offense, Admits Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ADAM STRONG, 38, of Naugatuck, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of conspiracy to possess with the intent to distribute, and to distribute, cocaine base (“crack cocaine”). STRONG also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in February and May 2018, law enforcement conducted two controlled purchases of crack cocaine from STRONG. The investigation revealed that between March 2017 and May 2018, STRONG conspired to distribute more than 250 grams of crack to customers in the Naugatuck and Waterbury areas. At the time, STRONG was on supervised release following a 2016 federal conviction for trafficking cocaine and crack.
STRONG was arrested on May 8, 2018.
STRONG is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on October 25, 2018, at which time he faces a maximum term of imprisonment of 30 years for the narcotics offense, and a maximum term of imprisonment of three years for violating his supervised release.
STRONG’s criminal history also includes two state robbery convictions.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force, with the assistance of the Naugatuck Police Department. The Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments, the U.S. Marshals Service and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Massachusetts Man Convicted of Heroin Trafficking Conspiracy ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank, announced that Myron Crosby, Jr., a/k/a “Templer”, 54, of Springfield, Massachusetts, was convicted yesterday following a four-day jury trial in U.S. District Court of conspiracy to distribute and possess with the intent to distribute a kilogram or more of heroin.
The evidence at trial established that between August 2015 and January 2016, Crosby supplied between 60,000 and 80,000 bags of heroin (totaling more than a kilogram) from his operations in Hartford, Connecticut and Springfield, Massachusetts to co-conspirators from the Newport, Maine area who distributed the drugs in the Newport area.
The defendant faces between 10 years and life in prison, an $8,000,000 fine, and between eight years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine and Massachusetts State Police, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Mason County Couple Sentenced to Federal Prison for Drug TraffickingRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that yesterday Eugene “Gene” Asbury, 70, and Natasha “Tess” Clonch, 33, of Gallipolis Ferry were each sentenced to 63 months in federal prison for conspiracy to distribute synthetic cannabinoids. Stuart praised the investigative work of the West Virginia State Police and the United States Postal Inspection Service.
“Asbury and Clonch were selling extremely dangerous illegal synthetics,” said United States Attorney Mike Stuart, “and making major bank from selling drugs. I believe in holding folks accountable for their actions. In this case that means prison PLUS the $1.6 million judgment PLUS forfeiting every single asset gained through their druggie activities. Poison peddlers engage in selling drugs to make money and, when we catch them, I’ll do all I can to take every single penny.”
Asbury and Clonch pled guilty in August 2017, admitting that between July 2013 and January 2016 they had been selling Schedule I controlled substances and controlled substance analogues from a retail store they operated on Huntington Road in Mason County called “Pipes and More” or “The Scent Shop.” The synthetics were sold under various brand names including “Earthquake,” “Heaven’s Grass,” Get Real,” “Scooby Snax,” “ Super Kush,” and “Mister Nice Guy.”
In January 2016, after making several controlled purchases of synthetics, police executed federal search warrants at the couple’s residence, “The Scent Shop,” and another of their businesses, the “Rt. 35 Adult Video and Bookstore.” Police seized more than 2.5kg of synthetics and approximately $30,000 cash. Approximately $159,000 was seized from the couple’s bank accounts. Financial records revealed that Asbury and Clonch purchased the synthetics from a wholesaler in California using money orders totaling more than $258,000. The defendants admitted that they made approximately $1.6 million by selling the synthetics.
As part of their plea agreements, Asbury and Clonch agreed to forfeit $189,090 in seized money, a restored 1952 Oldsmobile, a restored 1957 Chevrolet Bel Air, unimproved real estate, and the imposition of a $1.6 million money judgment. They admitted that these assets represented the proceeds of their drug trafficking activities.
Assistant U.S. Attorney Josh Hanks handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Manchester Man Pleads Guilty to Making a False Statement During the Acquisition of a FirearmRead the Press Release
CONCORD, N.H. – Tyler Bourgoin, 24, of Manchester, pleaded guilty in federal court to making a false statement during the acquisition of a firearm, United States Attorney Scott W. Murray announced today
According to court documents and statements made in court, on March 16, 2017, Bourgoin purchased a Glock, Model 42, .380 caliber pistol from Riley’s Sport Shop, a federally licensed firearms dealer located in Hooksett, New Hampshire. When Bourgoin completed the required paperwork to make the purchase, he falsely claimed that he was the actual purchaser of the firearm. An investigation revealed that in fact, Bourgoin bought the gun for another person who had given him the money to make the purchase. The Manchester Police Department later recovered the gun in June 2017 during an unrelated drug investigation.
Bourgoin is scheduled to be sentenced on November 20, 2018.
“So-called ‘straw purchases’ of guns like the transaction in this case may endanger the public by putting firearms in the hands of criminals who use them to commit other crimes,” said U.S. Attorney Murray. “Prosecuting these cases is a top priority of the U.S. Attorney’s Office to deter illegal firearms transactions and get illegally acquired guns off the street.”
This case was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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MS-13 Gang Members Charged with Murder Conspiracy and Attempted Murder in QueensRead the Press Release
Earlier today, Melvi Amador-Rios, Santos Amador-Rios, Yan Carlos Ramirez and Antonio Salvador were charged in a four-count indictment with assault, murder conspiracy and attempted murder in-aid-of racketeering, along with a related firearms offense. The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Marilyn D. Go at the federal courthouse in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, the defendants are members of MS-13, an international gang known for its culture of violence and murder,” stated United States Attorney Donoghue. “They used their positions to direct, instruct and assist lower-level gang members to shoot and kill a suspected rival on the streets of Jamaica, Queens. We will continue to work with our law enforcement partners to hold accountable those who spread fear in our communities by participating in such acts of violence.” Mr. Donoghue thanked the Queens District Attorney’s Office for its assistance in the investigation.
“Since January 2016, the FBI Safe Streets Gang Task Forces in Queens and Long Island have arrested more than 45 of the most violent MS-13 members in the area and charged them with murder, attempted murder, arson, and assault,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s operation is a continuation of this coordinated and sustained effort. The task force will not stand by while this gang engages in meaningless violence in an attempt to use fear to poison and control our communities.”
“Through close collaboration with our law enforcement partners at the FBI and the Eastern District of New York, the NYPD will continue to conduct aggressive, precisely-directed investigations into criminal groups like this,” stated NYPD Commissioner O’Neill. “Such cases result in strong indictments that ultimately send these criminals to prison. And this important work stanches the violence – which is an essential step toward healing gang-plagued communities and fulfilling our duty to work with and protect all New Yorkers, in every neighborhood.”
According to court filings, the defendants are members of the La Mara Salvatrucha, or MS-13. Melvi Amador-Rios is the leader of the Centrales Locos Salvatruchas (CLS) clique of MS-13, which operates in Jamaica, Queens. On October 22, 2016, Amador-Rios directed a low-level CLS member, known as a “chequeo,” to obtain a firearm from his brother, Santos Amador-Rios, and use the firearm to murder a rival gang member. The CLS chequeo obtained the firearm and enlisted two other CLS chequeos to assist in the murder. Yan Carlos Ramirez and Antonio Salvador instructed the three CLS chequeos how to use the firearm to carry out the murder. During the early morning hours of October 23, 2016, in Jamaica, Queens, the three CLS chequeos confronted the suspected member of the rival 18th Street gang, beat the victim and shot him in the head. The victim survived the attack, but is now a paraplegic.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Today’s indictment is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Nadia I. Shihata are in charge of the prosecution.
The Defendants:
MELVI AMADOR-RIOS (also known as “Letal” and “Pinky”)
Age: 27
Briarwood, New YorkSANTOS AMADOR-RIOS (also known as “Rayo”)
Age: 31
Jamaica, New YorkYAN CARLOS RAMIREZ (also known as “Demente”)
Age: 28
Jamaica, New YorkANTONIO SALVADOR (also known as “Pantro”)
Age: 30
Jamaica, New YorkE.D.N.Y. Docket No. 18-CR-398 (RRM)
Leominster Woman Pleads Guilty to Stealing Social Security and Veterans BenefitsRead the Press Release
BOSTON – A Leominster woman pleaded guilty today in federal court in Worcester to stealing Social Security and Veterans Affairs benefits.
Joyce Progin, 71, pleaded guilty to two counts of theft of public funds. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Nov. 2, 2018. Progin was arrested and charged in January 2018.
In November 2009, Progin’s former father-in-law passed away. At the time of his death, the father-in-law was receiving monthly retirement benefits from Social Security and monthly benefits from the Department of Veterans Affairs. Neither agency was advised of his death and continued to deposit his benefit payments into a bank account he held jointly with Progin, who was his caregiver. Although she admitted knowing that she was not entitled to the money, from November 2009 through March 2017, Progin received approximately $55,267 in Social Security benefits, and from November 2009 through November 2017, she received approximately $269,978 in benefits from the Department of Veterans Affairs, in total, stealing over $300,000 in public funds.
The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Leader of Robbery Crew that Staged String of Jewelry Store Heists that Netted $6 Million Sentenced to 55 Years in Federal PrisonRead the Press Release
SANTA ANA, California – The leader of a ring that staged a series of daytime smash-and-grab robberies at Southern California jewelry stores that netted the thieves $6 million worth of Rolex and other high-end watches was sentenced today to 55 years in federal prison.
Keith Marvel Walton, 47, of South Los Angeles, a senior member of the Inglewood Family Gangster Bloods criminal street gang who organized the armed robberies, was sentenced by United States District Judge Cormac J. Carney.
During today’s sentencing hearing, Judge Carney said the robberies – which were “planned, organized and led” by Walton, and were carried out during the daytime in public shopping malls – “terrified people and traumatized them for the rest of their lives.”
Walton, who is also known by the monikers “Green Eyes” and “Fly Guy,” “is likely the most dangerous, prolific, and incorrigible criminal who has ever appeared before the Court for sentencing,” prosecutors said in a sentencing memorandum filed with the court.
Walton was one of five men convicted following a five-week trial last summer in United States District Court (guilty verdicts against the fifth defendant were overturned by the court in a matter currently being appealed by prosecutors). The jury convicted Walton of conspiring to violate the Hobbs Act by planning the jewelry store robberies, as well as participating in three of the robberies, two of which involved firearms. Walton committed these offenses soon after pleading guilty in federal court to being a convicted felon in possession of firearms and ammunition. Walton’s extensive criminal record, according to court documents, also includes a 1995 federal conviction for participating in a Hobbs Act robbery of Texas drug store and using a firearm in that robbery.
“Walton is dangerous, violent, and manipulative,” according to the sentencing memorandum. “He knows little else but crime and violence.”
Prosecutors have secured convictions against a total of 19 defendants who were involved in at least one of the smash-and-grab robberies.
Last week, one of those defendants – Stanley Ford, 49, of Lancaster – was sentenced to 25 years in prison for participating in five of the robberies.
Members of the conspiracy selected jewelry stores based on their inventory of expensive watches, including those manufactured by Rolex, Audemar Piguet and TAG Heuer. Walton and other organizers in the scheme recruited financially desperate young men to perform the robberies, often by promising large sums of money if they were successful. The organizers planned the details of the robberies, including selecting the display cases to be smashed and providing the firearms, tools, disguises and stolen cars that were used in the robberies.
The conspiracy was responsible for 14 robberies or attempted robberies between early August 2014 and April 2016. One heist at a store in the Century City mall netted more than $1.6 million in watches and involved one of the robbers firing a shot from a rifle at a security guard who was trying to secure the store. Members of the conspiracy stole watches and other jewelry that was cumulatively worth approximately $6 million.
The other three trial defendants pending sentencing are:
Robert Wesley Johnson, 29, of Inglewood – who recruited robbers, scouted the jewelry stores leading up to the robberies, and supplied firearms, hammers, backpacks and other tools to the robbers who went into the jewelry stores – is scheduled to be sentenced on September 7;
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Evan Scott, 29, of Compton, who was a gunman in two of the robberies, and pepper sprayed an employee in a third robbery and is expected to be sentenced later this year; and
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Jameson Laforest, 26, of Inglewood, who received watches stolen during robberies in Hollywood and Torrance and smashed glass cases during a robbery in Manhattan Beach and is scheduled to be sentenced on August 20.
The evidence at trial showed that the defendants participated in at least one of the following eight robberies:
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the August 3, 2014 robbery of Prestige Jewelers in Manhattan Beach, during which 19 Rolex watches with an approximate retail value of $92,000 were stolen;
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the August 24, 2015 armed robbery of Rolex Boutique Geary’s in the Century City Mall, during which 40 Rolex watches with an approximate retail value of $1.63 million were stolen;
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the October 21, 2015 armed robbery of Frederic H. Rubel Jewelers in the Shops at Mission Viejo, during which 40 Rolex watches and David Yurman jewelry with an approximate retail value of $595,000 were stolen;
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the January 22, 2016 armed robbery of Manya Jewelry in Woodland Hills, during which three Rolex watches and other assorted watches and jewelry with an approximately retail value of $108,888 were stolen;
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the February 7, 2016 robbery of Ben Bridge Jewelers in the Oaks Mall in Thousand Oaks, during which 35 Rolex watches with an approximate retail value of $298,000 were stolen;
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the February 17, 2016 armed robbery of Westime in West Hollywood, during which 15 Audemars Piguet watches with an approximately retail value of $576,200 were stolen;
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the February 29, 2016 armed robbery of Ben Bridge Jewelers in the Del Amo Fashion Center in Torrance, during which 30 Rolex watches with an approximate retail value of $456,325 were stolen;
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the March 22, 2016 robbery of Westime in Malibu, during which 66 Audemars Piguet, Breitling, Franck Muller, Omega and Hublot watches with an approximate retail value of $1.42 million were stolen; and
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the April 24, 2016 robbery of Ben Bridge Jewelers in Santa Monica, during which 24 Tag Heuer watches with an approximate retail value of $67,500 were stolen.
The investigation into the robbery ring was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Angeles County Sheriff's Department.
The prosecutors handing this matter are Assistant United States Attorneys Scott D. Tenley of the Santa Ana Branch Office, Jeffrey M. Chemerinsky of the Violent and Organized Crime Section, and Julia L. Reese of the Criminal Appeals Section.
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Las Cruces Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Steven Vaillancourt, II, 45, of Las Cruces, N.M., pled guilty today in federal court to distributing and possessing child pornography. As the result of his guilty plea, Vaillancourt faces a statutory mandatory minimum penalty of five years and a maximum of 20 years of imprisonment for distributing child pornography and a maximum penalty of 20 years of imprisonment for possessing child pornography. Vaillancourt also will be required to register as a sex offender.
Vaillancourt was arrested on child pornography offenses in March 2018. According to the criminal complaint in which he was charged, Homeland Security Investigations (HSI) executed a search warrant on an email account, which revealed that Vaillancourt had been communicating with another individual about sharing and producing child pornography of that individual’s minor children. Vaillancourt also sent three child pornography images to the individual’s cellular phone through text messaging.
Vaillancourt was indicted on July 18, 2018. The indictment charged Vaillancourt with two counts of distributing child pornography and three counts of possessing child pornography. According to the indictment, Vaillancourt committed the offenses in March 2018 in Dona Ana County, N.M.
During today’s proceedings, Vaillancourt pled guilty to one count of distributing child pornography and three counts of possessing child pornography. In entering the guilty plea, Vaillancourt admitted sending two images of child pornography to another person on March 12, 2018. Vaillancourt also admitted that law enforcement officers who executed a search warrant at his residence on March 13, 2018, found three hard drives that contained an aggregate of 6,431 images and 90 videos of child pornography.
Vaillancourt has been in custody since his arrest and will remain in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI and the Las Cruces Police Department with assistance from the National Recognizance Office, Office of Inspector General. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Lafayette man pleads guilty to possessing stolen pistolRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Lafayette man pleaded guilty Thursday to possessing a stolen pistol he had purchased on the street.
Paul Sidney Breaux, 37, of Lafayette, pleaded guilty before U.S. District Judge Dee D. Drell to one count of possession of a stolen firearm. According to the guilty plea, Lafayette police arrested Breaux on May 1, 2018. At the time of his arrest, he possessed a Springfield Armory Model 1911 pistol and was aware it was stolen. He told officers he had purchased the firearm five days earlier on the street from some younger males.
Breaux faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for October 31, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Jacksonville, Texas Man Sentenced for Methamphetamine TraffickingRead the Press Release
TYLER, Texas – A 33-year-old Jacksonville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Carlos Brejohn Battle pleaded guilty on Mar. 21, 2018, to possession with intent to distribute methamphetamine and was sentenced to 100 months in federal prison by U.S. District Judge Ron Clark on Aug. 2, 2018.
According to information presented in court, a federal investigation into wide-spread drug trafficking in East Texas resulted in a federal indictment being returned by a grand jury on Oct. 18, 2017, charging eight individuals with multiple drug trafficking and firearms related charges including conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and other controlled substances; possession with intent to distribute methamphetamine, cocaine, and other controlled substances; use, carrying, possession of firearms in furtherance of a drug trafficking crime; felon in possession of firearms; distribution of methamphetamine near a playground; possession with intent to distribute methamphetamine and aiding and abetting; possession with intent to distribute methamphetamine on premises where children are present; and aiding and abetting.
Carlton Deshan Johnson, 28, of Jacksonville, pleaded guilty on Mar. 21, 2018, to possession with intent to distribute methamphetamine and was sentenced to 130 months in federal prison by Judge Clark on Aug. 1, 2018.
David Lee Williams, 32, of Jacksonville, pleaded guilty on Mar. 22, 2018, to possession with intent to distribute methamphetamine and was sentenced to 57 months in federal prison on Aug. 1, 2018, by Judge Clark.
This case is being investigated by the Federal Bureau of Investigation, the Cherokee County Sheriff's Office, and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Inmate at FCI-Berlin Sentenced for Attempted Drug PossessionRead the Press Release
CONCORD, N.H. –United States Attorney Scott W. Murray announced today that John McLaurin, 28, an inmate at FCI-Berlin, was sentenced to an additional six months in federal prison for attempting to possess a controlled substance within a federal prison.
According to documents filed with the court and statements made at the sentencing hearing, McLaurin placed a greeting card in the mail at the prison on or about September 15, 2017. Prison staff intercepted the card and found a note hidden in the card. The note provided detailed instructions for obtaining a synthetic cannabinoid (commonly referred to as K2) and smuggling it into the prison.
McLaurin previously pleaded guilty on April 19, 2018.
The Bureau of Prisons investigated this case. Assistant United States Attorney Donald A. Feith prosecuted this case.
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Illegal alien sentenced to 6 months in prison for resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Togo national was sentenced Wednesday to six months in prison for refusing to leave the country twice after being ordered to depart.
Aboudou Waka, 34, of Kpalime, Togo, was sentenced by U.S. District Judge Dee D. Drell on two counts of failure to depart. Evidence admitted at a two-day trial that ended May 4, 2018 showed that on two occasions U.S. Immigration and Customs Enforcement agents attempted to remove Waka via an escorted commercial flight from the Alexandria International Airport. The defendant hampered deportation efforts on March 13, 2017 and April 11, 2017 by verbally and physically resisting attempts to escort him onto the plane.
The U.S. Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips prosecuted the case.
Houma Man Pleads Guilty to Crack and Gun ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that LIONEL THOMAS, age 34, of Houma, pled guilty today to crack cocaine and firearms charges.
According to court documents, THOMAS possessed with the intent to distribute at least 28 grams of crack cocaine. The government billed THOMAS as a multiple offender with a prior felony drug conviction. As a result, for that drug charge, THOMAS faces a term of imprisonment of at least ten years and up to life, a fine of up to $8,000,000, and at least eight years of supervised release following any term of imprisonment,
THOMAS also pled guilty to possession of firearms in furtherance of a drug trafficking crime. THOMAS possessed a Seekins Precision Model SBA-15, .223 caliber semi-automatic assault rifle, and a Taurus Model PT145 Pro, .45 caliber semi-automatic pistol. For the firearms charge, THOMAS faces a minimum term of imprisonment of five years, which must run consecutive to any other sentence, and a maximum term of life imprisonment, a fine of $250,000, and up to five years of supervised release following any term of imprisonment.
Judge Carl Barbier set sentencing for November 1, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Terrebonne Parish Sheriff’s Office. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Haverhill Man Sentenced for Fentanyl and Heroin ConspiracyRead the Press Release
BOSTON – A Haverhill man was sentenced today in federal court in Boston for his role in an opioid trafficking conspiracy involving the distribution of fentanyl, heroin, and oxycodone across Massachusetts and Florida.
Jesus Gonzalez, 23, was sentenced by U.S. District Court Judge Denise J. Casper to 100 months in prison and four years of supervised release. In April 2018, Gonzalez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute over 100 grams of heroin and/or 40 grams of fentanyl, one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of conspiracy to launder monetary instruments.
Gonzalez was arrested in June 2016 for his role in a widespread conspiracy involving heroin, fentanyl, and opioid pill trafficking, as well as money laundering offenses in Massachusetts and Florida. From at least 2014, Gonzalez obtained heroin and fentanyl from sources in Massachusetts and conspired with others to distribute the narcotics, including approximately 230 grams of a mixture of heroin and fentanyl in November 2015. Gonzalez also participated in a conspiracy to obtain oxycodone pills from Florida, have them shipped to Massachusetts, and then distributed. Finally, Gonzalez participated in a conspiracy to launder and conceal the proceeds of the sale of narcotics by using funnel bank accounts to send money to Florida.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Delany De-Leon Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton, and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Office prosecuted the case.
Guatemalan Man Sentenced to Time Served for Illegal Entry into the United StatesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Henry Giovanny Paiz-Morales, 24, of Guatemala, pleaded guilty today in U.S. District Court to illegally entering the United States and was sentenced by U.S. Magistrate Judge John C. Nivison to time served (five days).
Court records reveal that on July 29, 2018, the defendant entered the United States from Canada in Sandy Bay Township, Maine at a location not designated for entry. U.S. Border Patrol agents located him shortly after he entered. He is a Guatemalan citizen and did not have immigration documents allowing him to enter. He has been placed in removal proceedings.
He faced up to 180 days in prison and a $5,000 fine.
The investigation was conducted by the U.S. Border Patrol.
Guatemala National Sentenced with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that FERNANDO PEREZ-YOK age 26, a citizen of Guatemala, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).
According to the Bill of Information, FERNANDO PEREZ-YOK was found in the United States on or about March 8, 2018, after having been previously removed therefrom on or about May 29, 2012.
FERNANDO PEREZ-YOK was sentenced to time served, one year supervised release after imprisonment, and a $100.00 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Granger Man Sentenced to 168 Months in Prison and Ordered to Pay $1,410,580.31 in RestitutionRead the Press Release
SOUTH BEND –James P. LeDonne, age 63, of Granger, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after pleading guilty to mail and wire fraud, announced U.S. Attorney Kirsch.
LeDonne was sentenced to 168 months in prison, followed by 1 year of supervised release, and ordered to pay $1,410,580.31 in restitution to his victims.
According to documents in this case, from 2008 through 2014, LeDonne engaged in a fraud scheme involving a series of businesses that purported to manufacture fiber optic repair vehicles. LeDonne persuaded customers to order vehicles and send money for down payments, but then failed to fulfill orders. The scheme involved selling vehicles that LeDonne did not own or that did not exist, with LeDonne (and LeDonne’s employees at his direction) repeatedly lying to customers about the status of production schedules, delivery dates, and refunds. To avoid returning money to customers and other creditors, his businesses would file bankruptcy and he would start a new business that would start up the same fraud scheme with new customers. LeDonne defrauded at least 63 customers from at least 31 states and four foreign countries.
This case is the result of an investigation by the Indiana State Police Organized Crime and Corruption Unit and the FBI Financial Crimes Task Force, and was prosecuted by Assistant U.S. Attorneys Gary Bell and Luke Reilander.
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Four people indicted for their roles in conspiracy to distribute cocaine in Youngstown areaRead the Press Release
Four people were charged in a 13-count federal indictment for their roles in a conspiracy to distribute cocaine in the Youngtown area.
Indicted are: Lawrence L. Whited, aka Chunk, aka Lamont, 47, of Youngstown; Jeanne M. George, 47, of Youngstown; Jonathan F. Brown, aka Joe Brown, 50, of Austintown, and Eva N. Whisel, 34, of Youngstown.
Whited, between January 2016 through December 2017, supplied cocaine to George and Brown for distribution in the Youngstown area. George and Brown supplied cocaine to Whisel for distribution in the Youngstown area, according to the indictment.
Whited is also charged with using firearms in furtherance of his drug trafficking and being a felon in possession of firearms. Whited possessed a Taurus 9 mm pistol, two Smith & Wesson .38-caliber revolvers and ammunition on Sept. 28, 2017, despite a previous conviction for felonious assault, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation was conducted by the Federal Bureau of Investigation and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Subcontractor on Dulles Metrorail Project Pleads Guilty to Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Florida man pleaded guilty today to conspiring to commit wire fraud in connection with the extension of the Silver Line, also known as Phase II of the Dulles Metrorail Project.
According to court documents, Andrew Nolan, 28, was the Quality Control Manager for a subcontractor hired to produce concrete for the Dulles Metrorail Project until approximately June 2016. While serving as the QC Manager, Nolan, and quality control employees under his supervision, falsified test records for the Dulles Metrorail Project to make it appear as though air content for the concrete was within the required range of air content. Nolan falsified test records knowing that the general contractor for the Dulles Metrorail Project would reject the concrete had it known that the concrete fell below the required air content for the project, which is partially funded by a U.S. Department of Transportation loan.
Nolan pleaded guilty to conspiracy to commit wire fraud and faces a maximum of five years in prison when sentenced November 9. 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.
The Civil Division for the U.S. Attorney’s Office for the Eastern District of Virginia and the Virginia Attorney General’s Office filed a complaint in intervention against Nolan and others under the federal False Claims Act and the Virginia Fraud Against Taxpayers Act on July 9, in connection with the concrete provided to the Dulles Metrorail Project.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Floyd Sherman, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge T.S. Ellis accepted the plea. Assistant U.S. Attorney Uzo Asonye is prosecuting the criminal case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-292.
Former Presidio County Commissioner Enters Guilty to Federal Bribery Related ChargeRead the Press Release
In Midland today, former Presidio County Precinct 3 Commissioner Lorenzo Padilla Hernandez admitted to defrauding the citizens of Presidio County by taking bribes while in office in return for his support and vote on a County contract, announced United States Attorney John F. Bash and FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Appearing before United States District Judge David Counts, Hernandez pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and deprivation of honest services. By pleading guilty, Hernandez admitted that from August 2015 to June 2017, he conspired to collect approximately $19,800 in bribes from a federal agent acting in an undercover capacity. In exchange for the money, Hernandez agreed to support and vote on May, 9, 2017, for a Presidio County document management services contract to be awarded to a specific company.
Hernandez faces up to 20 years in federal prison. He remains on bond pending sentencing scheduled for November 19, 2018, in Pecos, TX.
Hernandez’s co-defendant, 66-year-old Carlos Eduardo Nieto, former Special Projects Coordinator for the City of Presidio and former Presidio Independent School District trustee, is charged by indictment with one count of conspiracy to commit mail and wire fraud and one count of mail fraud and the deprivation of honest services. Jury selection and trial is scheduled for October 16, 2018, in Pecos before Judge Counts.
The indictment in this case alleges that Nieto also solicited and received $8,300 in bribes for using his position and influence to secure that same contract for that specific company.
Upon conviction, Nieto faces up to 20 years in federal prison. An indictment is merely a charge and should not be considered as evidence of guilt. Nieto is presumed innocent until proven guilty in a court of law.
The FBI, with assistance from Homeland Security Investigations (HSI) and the Texas Department of Public Safety Criminal Investigations Division, investigated this case. Individuals who have first-hand information about corruption, fraud, or bribery related to Presidio County are urged to contact the FBI at (915) 835-5000.
Assistant United States Attorneys William F. Lewis and Monty Kimball are prosecuting this case on behalf of the Government.
Former NYPD Detective Pleads Guilty to Committing Perjury in a Federal ProsecutionRead the Press Release
Earlier today, in federal court in Brooklyn, Michael Foder, a former detective employed by the New York City Police Department (NYPD) at the time of the charged conduct, pleaded guilty to one count of perjury in connection with false statements he made under oath during a criminal proceeding. The guilty plea was entered before United States District Judge Pamela K. Chen. When sentenced, Foder faces a statutory maximum of five years in prison and a fine of up to $250,000. Foder was arrested in February 2018 and resigned from the NYPD in August 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, NYPD, announced the guilty plea.
“The defendant admitted that he falsely testified at a pre-trial proceeding in federal court, a gross violation of the oath he took as a sworn witness and as a law enforcement officer who must be held to the highest standard of integrity,” stated United States Attorney Donoghue. “As demonstrated by Foder’s prosecution, this Office and our law enforcement partners are committed to holding accountable those who fail to respect the bedrock principle of truthful testimony upon which our justice system must depend.”
“As a former sworn NYPD detective, Michael Foder understood the solemnity of taking an oath,” stated FBI Assistant Director-in-Charge Sweeney. “Whether vowing to protect his community or vowing to tell the whole truth, both oaths held mutual significance. Yet, Foder blatantly disregarded this by committing perjury during a criminal proceeding. Upholding the rule of law, the FBI will equally investigate those who break federal laws, irrespective of their profession.”
“It is imperative that New Yorkers are able to trust their police to tell the truth,” stated NYPD Commissioner O’Neill. “Police officers swear an oath to hold themselves accountable to the highest standards of ethics and integrity. And when they intentionally violate that promise, they tarnish the reputation of all good cops, make their jobs much more difficult, and erode the trust we have worked so hard to earn in all of our communities.”
According to court filings and facts presented during the guilty plea proceeding, Foder, then assigned to the 70th Precinct in Brooklyn, falsely testified under oath at a December 29, 2016 hearing in connection with a federal prosecution about when and how he showed photographs of two robbery suspects to a victim of a carjacking. Following the hearing, the government identified discrepancies in the photo array identifications, including when the identifications had occurred. Handwritten notations indicated that the photo arrays had been completed on November 27, 2015 and February 14, 2016, as Foder had testified. However, the photographs of fillers depicted in the photo arrays had been taken on dates subsequent to the dates Foder claimed he had shown them to the victim witness. Foder acknowledged during his plea allocution that his testimony about when he had administered the photo arrays was false.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Nathan Reilly is in charge of the prosecution.
The Defendant:
MICHAEL FODER
Age: 42
Staten Island, NYE.D.N.Y. Docket No. 18-CR-97 (PKC)
Former CEO and Chief Loan Officer of Failed Sonoma Valley Bank, and Borrower’s California Attorney, Sentenced to Multi-Year Prison Terms for Bank Fraud and Other CrimesRead the Press Release
SAN FRANCISCO - Sean Clark Cutting and Brian Scott Melland, respectively the former chief executive officer and former chief loan officer of Sonoma Valley Bank which failed on August 20, 2010, were sentenced today for their December, 2017 convictions for conspiracy, bank fraud, wire fraud, money laundering, falsifying bank records, lying to bank regulators and other crimes, announced Acting United States Attorney Alex G. Tse; Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Goldsmith Romero; Federal Housing Finance Agency (FHFA), Office of Inspector General Laura Wertheimer; and Federal Deposit Insurance Corporation (FDIC) Inspector General Jay N. Lerner. Also sentenced today was co-defendant David John Lonich for his December 2017 convictions for conspiracy, bank fraud, wire fraud, attempted obstruction of justice, and other offenses. Lonich was an attorney for Bijan Madjlessi, the Marin and Sonoma County real estate developer who, before his death on May 16, 2014, had been indicted on charges of bank fraud, wire fraud, attempted obstruction of justice, and other offenses. The convictions and sentences followed an eight-week trial before the Honorable Susan Illston, U.S. District Judge that concluded in December 2017.
The court sentenced Cutting, 44, of Sonoma, Calif., to 100 months in prison; Melland, 45, of Santa Rosa, Calif., to 100 months in prison, and Lonich, 59, of Santa Rosa, Calif., to 80 months in prison.
“The defendants’ crimes directly caused the failure of a once-beloved community bank resulting in at least $47 million in losses and other staggering consequences,” said Acting U.S. Attorney Alex G. Tse. “Senior bank executives and the corrupt attorneys who help them must always be held accountable for threatening the safety and soundness of federally insured banks, as today’s significant sentences reaffirm.”
“TARP is not a cookie jar, but that’s what Sonoma Valley Bank CEO Sean Cutting called it as he applied for $8 million in TARP dollars all while knowing he was committing a massive fraud that caused holes in the bank’s books,” said SIGTARP Special Inspector General Christy Romero. “TARP was intended for healthy banks, not to fill holes in fraud-riddled bank books. Former bank CEO Cutting and chief loan officer Brian Melland will now spend years in prison after causing the bank to collapse under the weight of their fraud, leaving taxpayers who funded TARP at a loss of $8.6 million. I commend Acting U.S. Attorney Alex Tse, prosecutors Adam Reeves and Rob Rees, and our other law enforcement partners, for bringing accountability and justice.”
“Today’s sentencing holds senior bank executives and an attorney accountable for their years of deception to orchestrate multi-million-dollar fraud and for their abuse of positions of trust,” said FDIC Inspector General Lerner. “We remain vigilant to investigate such fraud schemes that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses and breach their duties.”
The evidence at trial demonstrated that Cutting, Melland, and Lonich were involved in multiple schemes to defraud numerous financial institutions including Sonoma Valley Bank, its regulators at the FDIC, and what was then called the California Department of Financial Institutions (DFI). The schemes to defraud involved years of excessive and illegal lending, often using “straw” or nominee borrowers, to Madjlessi for real estate projects in Santa Rosa and Petaluma, Calif.
The defendants’ fraud and other crimes caused the failure of Sonoma Valley Bank. Their crimes caused losses to taxpayers of over $47 million, as well as to the FDIC (approximately $39.18 million) and to the Troubled Asset Relief Program (TARP) (approximately $8.65 million) of the United States Treasury. Other victims included the shareholders of Sonoma Valley Bank who suffered losses when the value of their securities collapsed.
In addition to the sentences listed above, Judge Illston ordered the forfeiture to the United States of Lonich’s interest in the Park Lane Villas East, an apartment complex located in Santa Rosa worth approximately $20.8 million. Judge Illston found that the Park Lane Villas East complex constituted the proceeds of Lonich’s offenses. Judge Illston also scheduled a hearing on September 18, 2018, to decide the amount of restitution the defendants owe.
Much of the evidence at trial related to Madjlessi’s real estate projects at the Park Lane Villas in Santa Rosa and Petaluma Greenbriar Apartments in Petaluma. According to the evidence admitted at trial, Sonoma Valley Bank, between 2004 and 2010, loaned Madjlessi and the persons and entities he controlled in excess of $35 million, approximately $24.7 million more than the legal lending limit set by the bank’s regulators. To conceal this high concentration of lending, Cutting and Melland, the loan officer who worked most closely with Madjlessi, recommended multi-million dollar loans to nominee or “straw” borrowers, knowing that millions in proceeds from loans to other borrowers would go to Madjlessi and the companies he controlled. At trial, the evidence proved that Cutting and Melland schemed to give Madjlessi and his companies in excess of $8.6 million in proceeds from loans nominally made in the name of other borrowers.
Melland also was convicted of receiving a bribe in the amount of approximately $50,000 from Madjlessi. In April 2008, Melland and Cutting recommended a set of loans for approximately $3.65 million to a nominee or “straw” borrower controlled by Madjlessi. According to the trial evidence, Melland received the bribe the very next day.
Cutting and Melland were convicted of making false statements to Sonoma Valley Bank’s regulators, the FDIC and DFI, during joint examinations in May 2008, and again in December 2009, about the true nature and extent of the bank’s lending to Madjlessi and the persons and entities he controlled.
Judge Illston also sentenced Lonich, Madjlessi’s lawyer. In early 2009, Lonich conspired with Cutting and Melland to mislead Sonoma Valley Bank into lending millions more to Madjlessi, again in the name of a nominee or “straw” borrower. The conspiracy allowed Madjlessi to illegally buy-back for approximately $4 million an approximately $27 million debt he owed to IndyMac Bank. At the time, IndyMac Bank had failed and been taken over by FDIC and FDIC rules specifically prohibited delinquent borrowers, like Madjlessi, from purchasing their own notes at auction. Nonetheless, the defendants were all convicted of an elaborate bank and wire fraud scheme to obtain the defaulted note by misleading Sonoma Valley Bank, the FDIC, and eventually other financial institutions, about Madjlessi’s true role in the scheme.
In addition, in late 2009 and early 2010, Cutting helped Lonich gain control of additional units at the Park Lane Villas by issuing letters on Sonoma Valley Bank letterhead falsely stating that potential nominee buyers had sufficient funds at Sonoma Valley Bank for purchase. The evidence at trial also demonstrated Lonich instructed one nominee to make false claims to federal agents and to a federal grand jury investigating the transactions.
In sum, the defendants were convicted of the following specific crimes:
DEFENDANT
CHARGES
Cutting, Melland, and Lonich
Conspiracy to Commit Bank Fraud, in violation of 18 U.S.C. § 371
Cutting, Melland, and Lonich
Bank Fraud, in violation of 18 U.S.C. § 1344
Cutting (six counts), Melland (eight counts), and Lonich (five counts)
False Bank Entries and Reports, in violation of 18 U.S.C. § 1005
Cutting and Melland
Conspiracy to Make False Statements to the FDIC, in violation of 18 U.S.C. § 371
Cutting and Melland
Misapplication of Bank Funds, in violation of 18 U.S.C. § 656
Cutting and Melland
False Statements to the FDIC, in violation of 18 U.S.C. § 1007
Melland
Receipt of Gifts for Procuring Loans, in violation of 18 U.S.C. § 215
Cutting, Melland, and Lonich
Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349
Cutting, Melland, and Lonich
Five counts of Wire Fraud, in violation of 18 U.S.C. § 1343
Cutting, Melland, and Lonich
Twelve counts of money laundering, in violation of 18 U.S.C. § 1957
Lonich
One count of attempted obstruction of justice, in violation of 18 U.S.C. § 1512(c)
Judge Illston ordered the defendants to surrender to begin serving their prison sentences by October 1, 2018.
On May 6, 2014, approximately two months after he was indicted in this case, Madjlessi was found dead after the single-person car accident in a steep ravine in the Marin Highlands off Highway 1 in Marin County.
Assistant U.S. Attorneys Robert David Rees and Adam A. Reeves prosecuted the case with the assistance of Philip Villanueva, Maryam Beros, Patricia Mahoney, and Bridget Kilkenny. The prosecution is the result of a multi-year investigation by the Special Inspector General for the Troubled Asset Relief Program, the Federal Housing Finance Agency Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General, with the assistance of the Marin County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the Santa Rosa Police Department.
Final Defendant in Large-Scale Heroin Trafficking Ring Sentenced to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA – A former resident of Duquesne, Pennsylvania, has been sentenced in federal court to 120 months on his conviction of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
United States District Judge Reggie B. Walton imposed the sentence on Lance Yarbough, 33.
According to information presented to the court, Yarbough participated in a large-scale heroin distribution operation centered in Duquesne, Pennsylvania. Yarbough’s sentencing is the culmination of an investigation that began in 2010 and resulted in the convictions of 19 individuals for heroin distribution and firearms charges, most of whom are from Duquesne. The core of the group called themselves Hardcore Entertainment, and some of the members of the conspiracy recorded music and video under that name, as well. Some videos, which they posted on YouTube, included members of the conspiracy bragging about their drug dealing activities.
Members of Hardcore Entertainment typically pooled their resources and obtained large quantities of heroin from New Jersey and New York. They often transported the heroin and money in vehicles with hidden compartments. Once the heroin reached the Pittsburgh area, members of the conspiracy split the heroin and sold it to other distributors in the Pittsburgh area. During portions of the conspiracy, co-conspirators were making weekly trips between New Jersey or New York and the Pittsburgh area transporting hundreds of thousands of dollars and multiple kilograms of heroin per month. The conspiracy lasted from at least 2008 until 2012. The evidence presented at trial included controlled purchases of heroin, evidence seized pursuant to search warrants, communications among the conspirators intercepted pursuant to Court authorization, and the seizure of heroin from the hidden compartment of one of the vehicles used to transports money and heroin between New Jersey and the Pittsburgh area.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Greater Pittsburgh Safe Streets Task Force consisting of the Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Dept, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation, as well as the Duquesne Police Department and the Pennsylvania State Police, for the investigation leading to the successful prosecution of Yarbough.
Felon Convicted of Unlawful Possession of FirearmRead the Press Release
LAS VEGAS, Nev. – Following a three-day jury trial, a Las Vegas felon was found guilty of unlawful possession of a firearm that was discovered during a traffic stop, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Jill A. Snyder for the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omar Qazi, 30, was convicted of one count of felon in possession of a firearm. United States District Judge Andrew P. Gordon presided over the jury trial and scheduled sentencing for November 15, 2018. Qazi faces the maximum statutory penalty of 10 years in prison and a $250,000 fine.
According to court documents, Qazi was stopped by a Las Vegas Metropolitan Police Department officer for a traffic violation near East Harmon Avenue and Koval Lane. During the search of his vehicle, the officer found a loaded Smith & Wesson .22 caliber revolver in the front center console. Methamphetamine and marijuana were also recovered inside the vehicle. Evidence introduced at trial also included an audio recorded interview of Qazi where he admitted the firearm was his; and also two jail calls where he admitted to two different individuals that he knew he was a felon and should not have been driving around with a gun. Qazi’s DNA was also recovered from the firearm. Qazi has a prior felony conviction in Nevada for battery with substantial bodily harm and is prohibited from possessing a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Alexandra Michael and Patrick Burns prosecuted 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. For more information about PSN, visit www.justice.gov/usao-nv
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Felon Charged with Illegally Possessing Pistol and AmmunitionRead the Press Release
PITTSBURGH, PA- A former resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of violating firearm laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on August 1, named Paul Anthony Parrish, aka Paul Anthony Carmona, aka Paul Carmona Parrish, aka "Pills", age 41, formerly of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, in late 2016 to March 12, 2017, Parrish possessed a 9 mm caliber semi-automatic Ruger pistol and 9 mm ammunition. Parrish has previously been convicted of a felony and is prohibited from possessing a firearm.
The law provides for a maximum sentence of up to life imprisonment, a fine of $250,000, 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 of the defendant.
Assistant United States Attorney Ross E. Lenhardt of the Major Crimes and Violent Crimes sections is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the indictment in this case, with valuable assistance from the Allegheny County District Attorney’s Office, the Allegheny County Police Department and the United States Marshals Service and the Pittsburgh Bureau of Police.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
El Paso Drug Trafficking Brothers Sentenced to Federal PrisonRead the Press Release
In El Paso, a federal judge sentenced two brothers to decades in federal prison for their roles in an El Paso-based drug trafficking organization announced United States Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Special Agent in Charge Kyle W. Williamson, U.S. Drug Enforcement Administration (DEA), El Paso Division.
During a hearing held yesterday, United States District Judge David C. Guaderrama sentenced 39–year-old Oscar Fierro-Sanchez and 38–year-old Ricardo Fierro-Sanchez to 40 years and 20 years, respectively, in federal prison followed by ten years of supervised release. Judge Guaderrama also ordered that the defendants forfeit to the Government approximately $7,000 in U.S. Currency, a 2014 Chevrolet Corvette Stingray and their El Paso residences (combined value is approximately $500,000). Judge Guaderrama also ordered that Oscar Fierro-Sanchez pay a monetary judgment in the amount of $205,000.
In April 2018, the brothers entered guilty pleas. Oscar Fierro-Sanchez pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Ricardo Fierro-Sanchez pleaded guilty to one count of possession with intent to distribute a controlled substance and one count of maintaining drug involved premises.
By pleading guilty, the brothers admitted that from January 2015 to April 2017, they ran a large-scale drug distribution operation out of their residences that involved hundreds of kilograms of heroin, cocaine and marijuana.
“Combating transnational drug trafficking organizations is one of the top criminal priorities of the El Paso FBI. This investigation is an outstanding example of joint cooperation between the FBI and the DEA working together to have a positive impact on keeping our communities safer,” said FBI El Paso Special Agent in Charge Buie.
“The sentencing of Oscar and Ricardo Fierro-Sanchez sends a message to all who engage in the distribution of illegal drugs. This case highlights the impact that multiple agencies can have when they join forces to combat this illicit trade by holding those responsible accountable to the community,” said DEA El Paso Division Special Agent in Charge Williamson.
These sentences resulted from an investigation by the FBI/DEA Strike Force. The Strike Force is a multi-agency task force established to disrupt and dismantle major drug trafficking organizations. The El Paso Police Department and the El Paso County Sheriff’s Office assisted with this investigation.
El Paso Drug Stash House Operator Sentenced to Federal PrisonRead the Press Release
In El Paso yesterday, United States District Judge David C. Guaderrama sentenced 33–year-old Javier Chanet Navarro to ten years in federal prison on drug trafficking and firearms charges announced United States Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Special Agent in Charge Kyle W. Williamson, U.S. Drug Enforcement Administration (DEA), El Paso Division.
On March 6, 2018, Navarro pleaded guilty to a four-count Information charging him with two counts of conspiracy to distribute and controlled substance, one count of use of a firearm during a drug trafficking crime, and one count of being a convicted felon in possession of a firearm.
According to court records, from June 2015 to September 2017, Navarro and others conspired to distribute more than 1,000 kilograms of marijuana. They also conspired in September 2017 to distribute more than five kilograms of cocaine. Authorities arrested Navarro on September 22, 2017. Subsequently, authorities discovered a .45 caliber pistol and 26 kilograms of cocaine on Navarro’s property. Navarro’s criminal history includes a 2006 felony conviction in El Paso County for possession of marijuana.
“Crime doesn't stop at international borders, as such, the FBI works closely with our law enforcement partners to have a positive impact at our local level. This sends a strong and unified message that drug trafficking, at all levels, will not be tolerated,” stated FBI El Paso Division Special Agent in Charge Buie.
“The sentencing of Chanet Navarro exemplifies the commitment of law enforcement's battle against drug trafficking organizations throughout the world,” said DEA El Paso Division Special Agent in Charge Williamson.
This sentence is the result of an investigation by the FBI/DEA Strike Force. The Strike Force is a multi-agency task force established to disrupt and dismantle major drug trafficking organizations. Homeland Security Investigations (HSI), U.S. Border Patrol, U.S. Customs and Border Protection and the El Paso Police Department assisted with this investigation.
Chinese Nationals Convicted in Maritime Drug Smuggling CaseRead the Press Release
SHERMAN, Texas – A jury has found two Chinese nationals guilty of maritime drug smuggling, announced Eastern District of Texas U.S. Attorney Joseph D. Brown today.
FeiShang Liang, 52, and KanHua Wu, 51, both of the People’s Republic of China, were found guilty by a jury of maritime drug smuggling violations following a four-day trial before U.S. District Judge Amos L. Mazzant, III on Aug. 2, 2018.
According to information presented in court, on Nov. 24, 2016, while on routine patrol in the Eastern Pacific Ocean, a United States Coast Guard Cutter detected a 120 foot long fishing vessel approximately 1,025 nautical miles west of the Galapagos Islands, Ecuador. The Coast Guard launched its small boat to approach the fishing vessel, at which time the crew aboard the fishing vessel began throwing packages overboard. Afterwards, law enforcement officers recovered 42 packages containing 983 kilograms of cocaine and the seven crew members aboard the fishing vessel were arrested and charged with maritime drug smuggling violations. Testimony at trial revealed that Liang was the ship’s captain and Wu was the engineer. A U.S. Coast Guard helicopter monitoring the vessel caught both Liang and Wu on videotape as they threw over one ton of cocaine outfitted with GPS trackers into the ocean as they were being pursued by the Coast Guard.
“To really have an effect on the drug supply in this country, we have to be willing to go after every person involved in the chain of distribution,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “Whether it’s the street dealer, or the person on the boat transporting, or the leader of the cartel, we will charge them and convict them.”
Under federal statutes, the defendants each face a minimum sentence of 10 years and up to life in federal prison on each count of conviction at the time of sentencing. The sentencing range prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration and the U.S. Coast Guard and prosecuted by Assistant U.S. Attorneys Jay R. Combs and Christopher Eason.
Chinese Nationals Charged with Conspiracy to Steal Rice TechnologyRead the Press Release
LITTLE ROCK—Two rice researchers from China have been charged in a conspiracy to steal rice production technology in an alleged attempt to bring this proprietary science back to China.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, announced the indictment of Liu Xuejun, 49, and Sun Yue, 36, both of China, for conspiracy to steal trade secrets and conspiracy to commit interstate transportation of stolen property.
A federal grand jury returned an indictment against Liu and Sun on Friday for their involvement in the theft of rice seeds designed for use in the medical field. The rice seeds were developed by a company called Ventria Bioscience, which used technology to create rice seeds that contained certain proteins. These proteins could then be removed from the rice and used in medicines and pharmaceutical products. Ventria, which is headquartered in Colorado and has a rice production facility in Kansas, has invested approximately $75 million in developing the intellectual property behind these rice seeds.
"These rice seeds may be small, but the research and investment that went into the science that made them possible is of great value," Hiland said. "We remain vigilant in our efforts at protecting both intellectual and real property from theft by other nations, and it is our intention to present our case to an Arkansas jury based on the crimes alleged in the indictment."
Liu and Sun visited the United States in 2013. At that time, they both worked at the Crops Research Institute in Tianjin, China. Liu was a professor, and Sun was a research associate. They came to the United States to visit several rice research and production facilities, and their visit included a stop at the Dale Bumpers National Rice Research Center in Stuttgart.
Their trip was organized by Weiqiang Zhang, who was a rice breeder at Ventria in Kansas, and Wengui Yan, who worked at the Dale Bumpers Rice Research Center in Stuttgart. When Liu and Sun ended their trip, they flew to Honolulu, Hawaii, on their way back to China. At the Honolulu airport, U.S. Customs and Border Protection found stolen rice seeds in Liu and Sun’s luggage, including seeds from the Dale Bumpers National Rice Research Center as well as seeds from the Ventria rice production facility in Kansas.
"Today’s indictment of Liu and Sun should not go unnoticed by those who seek to steal our trade secrets and technology," FBI SAC Upchurch said. "This type of crime is consistent with China’s social and economic five-year plan to modernize their seed industry. We appreciate the efforts of the United States Attorney’s Office and together we will remain steadfast in protecting the United States’ intellectual property."
The two rice researchers who helped organize Liu and Sun’s trip to the United States were convicted of their involvement in the scheme in a connected case in the District of Kansas (see link to press release below). Zhang, 47, was convicted at trial and sentenced to 10 years’ imprisonment. Yan, 63, who worked in Stuttgart, pleaded guilty and was sentenced to one year in prison.
A violation of conspiracy to commit theft of trade secrets, under Title 18, United States Code, Section 1832, carries a maximum penalty of not more than 10 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. A violation of conspiracy to commit interstate transportation of stolen property, under Title 18, United States Code, Section 371, carries a maximum penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.
The case was investigated by the FBI, and is being prosecuted by Assistant United States Attorney Allison W. Bragg. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Link to related Kansas case:
https://www.justice.gov/usao-ks/pr/two-agricultural-scientists-chinacharged-stealing-trade-secrets
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter: @EDARNEWS
Child Pornographer Sentenced to 97 Months IncarcerationRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOSEPH B. PANGELINAN JR. was sentenced by Chief Judge Frances Tydingco-Gatewood, District Court of Guam, for the crime of Receipt of Child Pornography, in violation of 18 U.S.C. § 2252A(a)(2) and (b)(1). Pangelinan previously pled guilty to the charge and admitted to utilizing a peer- to-peer (P2P) network to receive approximately 2,280 images and 17 movies that depicted the sexual abuse of young children. The Court ordered 97 months imprisonment, five years of supervised release, $17,000 in restitution for the child victims, and forfeiture of a computer. Pangelinan was also ordered to register with the Sex Offender Registry in any jurisdiction in which he lives, works or attends school. Under federal law, his period of registration will extend for 25 years.
U.S. Attorney Anderson states, “Our office will continue to aggressively pursue child predators under the Project Safe Childhood initiative. Unfortunately, victims of child pornography suffer for many years from the trauma of abuse and the repeated distribution of depictions of the crime. I applaud the hard work of our federal law enforcement partners at Homeland Security Investigations in bringing this defendant to justice.”
Assistant Special Agent in Charge of Homeland Security Investigations (HSI) John Duenas said, “Today’s prison sentence is fitting for someone who robs children of their innocence and continues to sexually exploit them by producing and trading the illegal images with predators around the world. Investigating this type of criminal activity is a priority for HSI and we will continue to dedicate our resources to identify and bring to justice other child predators who victimize children in this same manner.”
The U.S. Attorney additionally reminds defendants who have committed sexual abuse of children that, under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school. They must also periodically update their registration information. The U.S. Attorney notes that the Sex Offender Registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org (link is external).
U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative is a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The investigation was conducted by Homeland Security Investigations. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the United States Attorney’s Office in the District of Guam.
Charter Owner Arrested and Charged Federally with Misconduct or Neglect that Resulted in DeathRead the Press Release
Laurent Marc-Antoine Jean Maubert-Cayla was arrested pursuant to criminal complaint charging him with misconduct or neglect of a ship officer that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.
Benjamin G. Greenberg, United States Attorney of the Southern District of Florida, Zinnia P. James, Acting Special Agent in Charge, and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.
According to allegations contained in the court record, Maubert-Cayla, originally of France, was a part owner of the MIAMI VICE, a 91-foot performance yacht. Maubert-Cayla offered the yacht for charters on a website, and employed Captain Mauricio Alvarez to drive the yacht during charters from approximately November of 2017 until April of 2018. The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license. In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license. In addition, according to allegations in the complaint, Maubert-Cayla knew that Alvarez was heavily using cocaine and alcohol during the period he served as captain on board the MIAMI VICE, and had filmed Alvarez using cocaine as recently as March 29, 2018.
On April 1, 2018, Maubert-Cayla chartered the MIAMI VICE to a group of individuals, who met and paid Maubert-Cayla at the Sea Isle Marina. The MIAMI VICE then left the Sea Isle Marina with Alvarez acting as captain. Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim R.M.P., began to swim. Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so. Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where victim R.M.P. was swimming. R.M.P. was caught in the MIAMI VICE’s propellers and killed.
Maubert-Cayla is currently being detained pending a bond hearing scheduled for Tuesday, August 7, 2018, at 10:00 a.m.
Mauricio Alvarez is currently charged with misconduct or neglect of ship owner that resulted in the death of an individual in Southern District of Florida case number 18-20314-CR-ALTONAGA. Alvarez’s jury trial is scheduled for September 4, 2018.
Mr. Greenberg commended the investigative efforts of CGIS and FWC in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorney Philip Jones.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.
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.
Charleston Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught selling methamphetamine in July and September 2017 pled guilty yesterday to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Michael Ginther, 35, entered his guilty plea to an indictment charging him with conspiracy to distribute five grams or more of methamphetamine. Stuart lauded the joint investigation conducted by the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the Kanawha County Sheriff’s Department STOP Team.
“An unbelievable amount of meth is being trafficked in Kanawha County and surrounding areas,” said United States Attorney Mike Stuart. “My office and my law enforcement partners are working together like never before to disrupt and dismantle meth distribution networks operating throughout southern West Virginia.”
Ginther admitted that from at least June 2017 to September 2017, he allowed his residence to be used by Melody Legg to distribute methamphetamine in Kanawha County. As part of the plea agreement, Ginther admitted to distributing approximately 9 grams of methamphetamine to a confidential informant in July 2017.
Ginther faces at least 5 years but not more than 40 years in federal prison when he is sentenced on October 3, 2018.
The plea hearing was held before United States District Judge Joseph R. Goodwin. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Brother and Sister Posing as Couple Sentenced in Robbery of Mobile Area WalmartRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Chief Judge Kristi K. DuBose sentenced John Spinner and Valeria Brown on August 3, 2018 to a term of 10 years in federal prison each for armed robbery. Both Brown and Spinner entered a plea of guilty on April 24, 2018.
On October 10, 2016, four individuals, armed with handguns, robbed the Walmart at 2500 Dawes Road in Mobile, Alabama. Two suspects held victims at gunpoint at the self-checkout register while they stole the day’s deposit bags.
John Spinner and his sister, Valeria Brown, posed as a couple with Brown’s infant child, and served as lookouts for the other two robbers. Brown and Spinner communicated with their accomplices via cell phone, informing them when it was clear for them to enter the Walmart and commence with the robbery.
Brown and Spinner waited outside for the others, and all four fled the scene after the robbery. Brown and Spinner followed their accomplices in another vehicle and Spinner shot at citizens in order to assist their conspirators’ escape.
Both Brown and Spinner were ordered to pay $13,154.00 in restitution and will have to serve 3 years supervised release upon their release from prison.
Lawrence Battiste, Chief of Police of the Mobile Police Department commented on matter, saying, “The City of Mobile and the Mobile Police Department are thankful for the partnership with the U.S. Attorney’s Office. We are grateful for their assistance in (the) prosecution of these offenders. We look forward to an ongoing effort to remove those offenders in our community that seek to commit crimes that diminish the quality of life in Mobile.”
The Mobile Police Department and the Federal Bureau of Investigation, Mobile Field office investigated this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
Bail Bondsman that Assisted Former Baltimore Police Department Sergeant to Sell Drugs and Rob Citizens Sentenced to Federal PrisonRead the Press Release
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Donald Stepp, age 51, of Middle River, Maryland, today to five years in prison, followed by five years of supervised release, for possession with the intent to distribute cocaine, heroin, and other controlled dangerous substances. Stepp obtained the drugs from former Baltimore Police Department (BPD) Sergeant Wayne Jenkins, and from robberies in which he participated with Jenkins and other BPD officers.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, Stepp operated Double D Bail Bonds and was an associate of former BPD Sergeant Wayne Jenkins. From 2015-2017, Stepp obtained significant quantities of narcotics from Jenkins and robbed citizens of their property, including drugs, cash, and watches.
To facilitate the robberies and drug trafficking, Jenkins brought Stepp to search locations in Baltimore City and Baltimore County, and falsely represented to other law enforcement agencies that Stepp was an officer with BPD. Jenkins would travel to Stepp’s residence after he had robbed citizens and Stepp would store the stolen drugs in his tool shed. Stepp then sold the stolen drugs and returned hundreds of thousands of dollars in cash proceeds to BPD officers. Jenkins took a portion of the proceeds from the drug sales and paid other officers in the BPD who participated in the robberies with Jenkins and Stepp.
On December 14, 2017, law enforcement executed a search warrant at Stepp’s residence and recovered approximately 423 grams of crack cocaine, 262 grams of cocaine, 14 grams of heroin, 28 grams of MDMA, digital scales, packaging material, a large sum of cash, and several high-value watches.
On June 7, 2018, Wayne Jenkins was sentenced to 25 years in federal prison for racketeering conspiracy; racketeering; robbery; destruction, alteration, or falsification of records in a federal investigation; and deprivation of rights under color of law.
United States Attorney Robert K. Hur commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who prosecuting this Organized Crime Drug Enforcement Task Force case.
Anchor Glass Container Corporation to Cut Harmful Air Pollution, Improve Compliance at Container Glass Manufacturing Plants in Six StatesRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement agreement with Anchor Glass Container Corporation today that will resolve alleged Clean Air Act violations at all six of Anchor’s container glass manufacturing facilities located in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma and improve the company’s compliance with federal [and state] clean air laws. Under the proposed settlement, Anchor will install pollution controls to cut emissions of nitrogen oxide (NOx), sulfur dioxide (SO2) and particulate matter (PM) at its container glass manufacturing facilities. The states of Indiana and Oklahoma participated in the settlement.
“In this settlement, Anchor Glass Container Corporation has agreed to bring all of its manufacturing facilities into compliance with Clean Air Act requirements, which will help reduce harmful air pollutants to ensure the health and safety of communities in six states,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The Justice Department will continue to work closely with the EPA and to partner with states to ensure compliance with federal clean air laws nationwide.”
“Under the terms of today’s settlement, Anchor Glass Container Corporation will take steps to reduce harmful air emissions from its facilities,” said Susan Bodine, EPA’s Assistant Administrator for the Office of Enforcement and Compliance Assurance. “The resulting pollution reductions will mean cleaner and clearer air for communities in six states.”
“Protecting the health and safety of Indiana residents is one of my office’s top priorities,” said Indiana Attorney General Curtis Hill. “Settlements such as this one help ensure that future generations will breathe cleaner air, and I’m grateful for the collaboration of our federal and state partners in bringing about this positive result.”
“I am pleased with the results of the settlement and hopeful this will help protect Oklahoma’s future,” said Executive Director Scott Thompson for the Oklahoma Department of Environmental Quality.
Today’s settlement resolves allegations that Anchor violated the Clean Air Act when it failed to seek permits for New Source Review major modifications at its container glass facilities. Anchor’s facilities manufacture beer bottles, liquor bottles, other beverage bottles, jars, and other glass containers.
Under this settlement, Anchor will implement pollution controls to reduce its NOx emissions at nine of its eleven furnaces (two furnaces already have pollution controls installed), and the company will meet more stringent NOx emissions limits at all of its furnaces. Anchor will also implement pollution controls and take other actions to reduce SO2 and PM emissions. The settlement also requires Anchor to install and operate continuous emissions monitors for NOx and SO2 at all eleven of its glass furnaces and to install continuous opacity monitors required by the Clean Air Act. The company will spend approximately $40 million in implementing these pollution reduction changes to its facilities.
This settlement will result in substantial reductions of NOx, SO2 and PM emissions at Anchor’s plants. NOx emissions will be reduced by over 2,000 tons per year, SO2 emissions will be reduced by over 700 tons per year and PM emissions will be reduced by over 100 tons per year. Additionally, Anchor will complete two mitigation projects, a woodburning appliance change-out project and a project to repower, retrofit, or replace vehicle diesel engines, further reducing NOx, SO2, and PM emissions.
As part of this settlement, Anchor will also pay a $1.1 million civil penalty.
NOx, SO2 and PM, three key pollutants emitted from glass manufacturing plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog, and haze. The pollutants are converted in the air into fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts and premature death. Reducing these harmful air pollutants will benefit the communities located near the Anchor plants, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children.
The proposed consent decree was lodged today in the U.S. District Court for the Middle District of Florida and is subject to a 30-day public comment period and final court approval. Information about submitting a public comment is available at: www.justice.gov/enrd/consent-decree/us-et-al-v-anchor-glass-container-corporation
For more information about the settlement: www.epa.gov/enforcement/anchor-glass-container-corporation-clean-air-act-settlement
Albuquerque Woman Sentenced to Prison for Assaulting a Federal Law Enforcement OfficerRead the Press Release
ALBUQUERQUE – Charmaine Peralta, 38, of Albuquerque, N.M., was sentenced yesterday in federal court to 30 months in prison for assaulting a federal law enforcement officer. Peralta will be on supervised release for three years after she completes her prison sentence.
The U.S. Marshals Service (USMS) charged Peralta in Jan. 2017, with assaulting a federal officer in Bernalillo County, N.M. According to the criminal complaint, Peralta assaulted a Probation Officer of the New Mexico Corrections Department who was deputized as a special federal officer and was serving as a Task Force Officer of the USMS’s South West Investigative Fugitive Team (SWIFT) on Jan. 19, 2017, when the SWIFT Team was executing a warrant for Peralta’s arrest. Peralta assaulted the Task Force Officer by biting her on the arm, resulting in bleeding and bruising, and by kicking the Officer repeatedly in the chest.
Peralta was indicted on March 14, 2017, and was charged with assaulting a federal officer. On Jan. 19, 2018, Peralta pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the USMS’s SWIFT Team with assistance from the New Mexico Corrections Department and was prosecuted by Assistant U.S. Attorney David M. Walsh.
Additional Charge Filed Against Grand Island Man Arrested for Leaving Threatening Voicemails for Two U.S. CongressmenRead 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 Carlos Bayon, 63, of Grand Island, NY, who was previously charged by criminal complaint with interstate communication of a threat, is facing an additional charge of threatening two federal officials, after an amended complaint was filed today. The new charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
According to Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, the amended criminal complaint states that following the defendant’s arrest on August 1, 2018, law enforcement officers executed search warrants at Bayon’s Grand Island residence. Officers recovered approximately 150 rounds of 7.62 x 39 mm ammunition, 50 rounds of shotgun ammunition, and receipts for the purchase of an SKS rifle, which is a high-powered assault rifle, and a .38 caliber revolver.
In addition, officers recovered a number of books concerning the use of firearms and explosives, including:
• How to create foolproof new identity;
• Ragnar’s homemade detonators;
• Homemade C-4;
• New & Improved C-4;
• Middle Eastern Terrorist Bomb Designs;
• Poor man’s TNT;
• CIA field manual for explosives prep;
• Disguise techniques;
• How to circumvent security alarms;
• Silent But Deadly: homemade silencers;
• Hit Man: technical manual;
• Expedient B&E: circumventing alarms;
• Improvised radio detonation techniques;
• Homemade Semtex;
• Secrets of a Super Hacker;
• How to make disposable silencers; and
• How to build practical firearm suppressors.On June 30, 2018, two members of Congress, one from Louisiana and one from the State of Washington, received threatening voicemails which stated:
“Hey listen, this message is for you and the people that sent you there. You are taking ours, we are taking yours. Anytime, anywhere. We know where they are. We are not going to feed them sandwiches, we are going to feed them lead. Make no mistake you will pay. Ojo por ojo, diente por diente (This is Spanish for “an eye for an eye, a tooth for a tooth”). That is our law and we are the majority. Have a good day.”
U.S. Capitol Police were contacted and traced the calls to the defendant Carlos Bayon.
Bayon is being held pending a detention hearing.
The amended complaint is the result of an investigation by the United States Capitol Police, under the direction of Chief Matthew R. Verderosa, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.