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Thursday 2 August 2018
Jackson, Alabama Resident, Former Burglar, Sentenced to Two Years for Possessing a FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Senior Judge William H. Steele sentenced Avery Varkese Nash on August 2, 2018 to a term of 24 months in federal prison.
Nash, who had previously been convicted of Burglary in 2014, was a passenger in a vehicle on October 24, 2017, in Thomasville, Alabama, when Thomasville police stopped the vehicle for not having the required license plate. Neither the driver nor Nash could produce identification. The driver of the vehicle allowed police to search the trunk. It was then that Nash informed the officers that he had a pistol and a loaded magazine in the trunk. Police recovered the firearm and determined it was reported stolen.
Nash pled guilty on April 12, 2018 to the offense of felon in possession of a firearm.
The Thomasville 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.
Insider Bank Robbery Leads to 46 Months in PrisonRead the Press Release
OKLAHOMA CITY – CAMRY CORTEZ WILSON, 21, of Edmond, Oklahoma, was sentenced today to 46 months in prison for bank robbery, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On November 15, 2017, the government filed a criminal complaint against Wilson for robbing the JPMorgan bank branch at 13805 North May Avenue in Oklahoma City. According to an FBI agent’s affidavit in support of the complaint, a masked person forced himself into the bank at approximately 7:35 a.m. on August 31, 2017, as employees were unlocking the front door. It appeared to employees that he was familiar with layout of the bank, including the location of the vault. Without ever speaking, the person presented a note that indicated it was a robbery and that he had a gun. He left the bank with $203,000 in cash and a key to an employee’s car, which he used as a getaway vehicle.
Through surveillance video, Uber records, and other information, the FBI determined Wilson was likely the robber. The bank had fired him for misconduct on April 6, 2017, because his teller drawers were short $13,400. Although he had been in financial difficulties before the robbery, in the weeks after the robbery he made large purchases in cash. On September 7, 2017, he paid $27,074 in cash for a 2017 Dodge Challenger. And on October 9, 2017, he traded in the Challenger in Atlanta for a 2017 Mercedes-Benz C300, which involved paying a balance of $24,932.92 in cash.
A federal grand jury returned an indictment against Wilson for bank robbery on December 5, 2017. He agreed to combine his guilty plea hearing with his sentencing, which took place today before U.S. District Judge Robin J. Cauthron. After accepting his guilty plea, the court sentenced Wilson to 46 months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of $168,154.82, the amount remaining after law enforcement recovered $34,845.18 during his arrest. The sentence also includes forfeiture of the 2017 Mercedes-Benz and the contents of three bank accounts.
This case is the result of an investigation by the FBI and the Oklahoma City Police Department. Assistant U.S. Attorneys Mark Stoneman and Ashley Altshuler prosecuted the case.
Reference is made to public documents for further information.
Indictment: Defendant Left Fingerprint While Robbing a Quik TripRead the Press Release
WICHITA, KAN. – A Wichita man was indicted Wednesday on charges of robbing a Quik Trip, U.S. Attorney Stephen McAllister said.
Samuel L. Vliet, 25, Wichita, Kan., is charged with one count of committing a robbery at a commercial establishment. In court documents, investigators allege that on July 18, 2018, Vliet was wearing a red bandana over his mouth when he entered a Quik Trip at 110 S. Rock Road in Wichita. He told a store employee, “Give me all the money in the register.”
Later, police lifted fingerprints from a door that the store employee said the robber touched as he left. A forensic examination using the Automated Fingerprint Identification System (AFIS) matched the fingerprint to Vliet.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI’s Safe Streets Task Force investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
OTHER INDICTMENTS
Gregory Ojeda, 30, Kansas City, Kan., is charged with escaping custody. The crime is alleged to have occurred May 13, 2018, while Ojeda was serving home confinement at a residence in Kansas City, Kan., after being convicted of unlawful possession of a firearm by a convicted felon.
If convicted, she faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Venancio Santiago-Marcelino, 43, who is not a U.S. citizen and who has been living in Mission, Kan., is charged with unlawfully re-entering the United States after twice being deported. He was found July 12, 2018, in Johnson County Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges 16 Individuals with Trafficking Heroin, Fentanyl and Other Drugs in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Hartford Police Chief David Rosado announced that a federal grand jury in Hartford returned a 28-count indictment today charging the following 16 individuals with various offenses related to the distribution of heroin, fentanyl and other narcotics in the Hartford area.
JULIO OLIVERAS, a.k.a. “Cuzzo Jay,” 32, of Hartford and New Britain
VICTOR PERDOMO, a.k.a. “Domi,” 32, of Hartford
JEREMY RODRIGUEZ, 21, of Hartford
ROBERT CAMPBELL, a.k.a. “Ant” and “Anthony,” 26, of Hartford
PEDRO RIVERA, a.k.a. “Heavy,” 40, of Hartford
JONATHAN QUINONES, 28, of Hartford
ALEXIS DeJESUS, 31, of Hartford
LUIS RODRIGUEZ, 32, of Hartford
ANGEL GONZALEZ, a.k.a. “Spider” and “June,” 40, of Hartford
ANGEL ROMAN, 31, of Hartford
JOSE COTTO, a.k.a. “White Boy,” 27, of Hartford
ANTONIO JOHNSON, a.k.a. “Unk,” 41, of Hartford
MIGUEL ORTIZ, 39, of Hartford
BIANCA VELASQUEZ, 21, of Hartford
JENNIFER JONES, 39, of Hartford
MICHAEL SPERO, 34, of HartfordAs alleged in court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force targeted a narcotics trafficking organization headed by Julio Oliveras, also known as “Cuzzo Jay,” of Hartford. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Oliveras was supplying distribution quantities of heroin, fentanyl, cocaine and crack cocaine to multiple Hartford-area drug dealers, and also was selling drugs in smaller amounts to his own customers. The investigation also revealed that Victor Perdomo, also known as “Domi,” was Oliveras’s primary source of supply of heroin and fentanyl. Oliveras used multiple locations in Hartford to process, store and distribute narcotics. In addition, Oliveras stored multiple firearms within a U-Haul storage unit in Hartford.
On July 19 and July 26, 2018, investigators arrested 15 of the 16 defendants on federal criminal complaints. (Robert Campbell, also known as “Ant” and “Anthony,” has been in custody in Florida since February 2018.) On July 19, investigators executed 10 search warrants and seized approximately five to six kilograms of suspected heroin and/or fentanyl, approximately 600 grams of crack cocaine, eight firearms, and other evidence of narcotics trafficking activity.
“It is alleged that this drug trafficking organization was responsible for the distribution of a significant amount of heroin and fentanyl, as well as other narcotics, in the Hartford region,” said U.S. Attorney Durham. “As the epidemic of opioid abuse continues to ruin lives across our state, our office is committed to prosecuting heroin and fentanyl traffickers and seeking lengthy terms of incarceration. I thank the DEA Task Force members, including the Hartford Police, for their work in this investigation, which removed more than five kilos of heroin and fentanyl, as well as eight firearms, from the streets of Hartford just last month. Their ongoing efforts in this case and others have undoubtedly save lives.”
“DEA is committed to investigating and dismantling drug trafficking organizations that are responsible for distributing lethal drugs like fentanyl and heroin to the citizens of Hartford,” said DEA Special Agent in Charge Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl and heroin off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office.”
The indictment charges the 16 defendants with one count of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine and cocaine base (“crack cocaine”). If convicted of conspiracy, based on the type and quantity of narcotics charged, Oliveras, Perdomo and Quinones face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Jeremy Rodriguez, Rivera, DeJesus, Luis Rodriguez, Johnson, Ortiz, Jones and Spero face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Campbell, Gonzalez, Roman, Cotto and Velasquez face a maximum term of imprisonment of 20 years.
In addition to the conspiracy count, Oliveras, Jeremy Rodriguez, Rivera, Quinones, DeJesus, Gonzalez, Roman, Cotto, Ortiz, Velasquez, Jones and Spero are each charged with one or more counts of possession and/or distribution of various controlled substances.
The indictment also charges Jeremy Rodriguez, Quinones and DeJesus with possession of a firearm in furtherance of a drug trafficking crime. If convicted of this offense, these defendants face a mandatory consecutive five-year term of imprisonment. Oliveras and DeJesus are also charged with possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Heroin Traffickers Handed Significant Federal Prison TermsRead the Press Release
HOUSTON – Two Texas men have been ordered to federal prison following their convictions of possession with intent to distribute heroin, announced U.S. Attorney Ryan K. Patrick. Jose Jony Romero, 41, of Houston, and Ricardo Rodriguez, 31, of Laredo, pleaded guilty April 26 and 24, 2018, respectively.
Today, U.S. District Judge Keith Ellison ordered Romero to serve 188 months in federal prison based on his responsibility for 35 kilograms of seized heroin in addition to six kilograms of methamphetamine since 2015. Rodriguez received a 120-month-term of imprisonment for his participation in transporting the heroin to Houston.
The investigation began in October 2015. The investigation revealed Romero was planning to deliver methamphetamine to several individuals in Houston. After leaving Romero’s residence, authorities stopped their vehicle. Inside, law enforcement discovered a cardboard box with Tupperware containers containing approximately six kilograms of methamphetamine. Romero’s fingerprints were also found on the containers.
In March 2017, law enforcement stopped Rodriguez on interstate 10 in Fayette County. In the toolbox in the truck’s bed was were five wooden blocks which contained black tar heroin. Further investigation led authorities to discover the phone number Rodriguez called to finalize the delivery belonged to Romero. He was arrested as the heroin was delivered to him.
Agents opened the five wooden blocks and found 16 packages of narcotics, which totaled 32 kilograms of heroin and nearly one kilograms of methamphetamine. Inside Romero’s apartment, authorities also discovered an additional three kilograms of heroin and packaging material.
Romero has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Previously released on bond, Rodriguez was permitted to remain on bond.
The Drug Enforcement Administration, Houston Police Department and Fayette County Sheriff’s Office conducted the investigation with assistance from the Harris County District Attorney’s Office. Assistant U.S. Attorney Robert Stabe is prosecuting the case.
Henderson County Man Sentenced for Unlawfully Possessing RicinRead the Press Release
TYLER, Texas – A 20-year-old Athens, Texas, man has been sentenced to federal prison for the unlawful possession of ricin in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and Assistant Attorney General for National Security John C. Demers today.
Abel Keith Fulton pleaded guilty on Mar. 20, 2018 and was sentenced to 46 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Fulton was also ordered to pay restitution in the amount of $30,060.00 for costs incurred by law enforcement officials in connection with the removal of the hazardous materials and decontamination of his residence.
According to information presented in court, from August to September 2016, Fulton possessed ricin at his home in Athens, Texas. Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected. There is no known antidote or cure for ricin poisoning. Fulton made the ricin using supplies that he purchased online.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Athens Police Department and prosecuted by Assistant U.S. Attorney Frank Coan and Trial Attorney Jerome Teresinski of the Department of Justice National Security Division.
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Haywood Co. Woman Sentenced to 15 Years on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Brandy Marie Grogan, 36, of Waynesville, N.C. to 15 years in prison and five years of supervised release on drug and gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Greg Christopher of the Haywood County Sheriff’s Office, Chief William Hollingsed of the Waynesville Police Department, and Chief Russell Gilliland of the Maggie Valley Police Department.
According to filed court documents and today’s sentencing hearing, in early 2017, law enforcement learned that Grogan was selling and distributing methamphetamine in and around Haywood County. On January 17, 2017, Haywood County law enforcement conducted a traffic stop of the vehicle Grogan was driving. Inside her vehicle, law enforcement located a black bag which contained a large amount of methamphetamine. Elsewhere in the vehicle, law enforcement found other narcotics, including cocaine and marijuana, and $4,376 in cash. Officers also recovered from Grogan a .22 magnum caliber handgun. Law enforcement executed a search warrant at Grogan’s residence and seized scales, drug paraphernalia, six handguns and two shotguns. A stolen handgun was later recovered from inside the glove box of Grogan’s vehicle. Grogan was charged with state criminal offenses in connection with this incident.
According to court records, on July 20, 2017, law enforcement stopped Grogan for driving above the speed limit in Haywood County. Law enforcement searched Grogan’s vehicle and located a black bag in the passenger side floorboard that contained methamphetamine and other narcotics, and a loaded Sig Sauer .40 caliber pistol. Deputies also located $2,097 in Grogan’s left front pants pocket.
In February 2018, Grogan pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The ATF, the Haywood County Sheriff’s Office, Waynesville Police Department, and the Maggie Valley Police Department investigated the case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, 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.
Hartford Man Pleads Guilty to Distributing Drugs Involved in 2 Enfield Overdose DeathsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER BARRETO, 29, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribution, and distribution of, controlled substances.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 9:52 a.m., on August 26, 2016, the Enfield Police Department and emergency medical personnel responded to a residence in Enfield and found an unresponsive 31-year-old male in the upstairs bedroom of the residence. The victim was pronounced deceased. Officers searched the immediate area and seized one empty white wax fold and six full white wax folds that contained suspected heroin. Officers also seized the victim’s iPhone. An analysis of text messages revealed that the victim had ordered heroin from an individual in the evening of August 25, 2016.
At approximately 8:23 p.m., on October 27, 2016, the Enfield Police Department and emergency personnel responded to another residence in Enfield and found an unresponsive 36-year-old man outside the house. The victim was transported to the hospital for medical attention and pronounced deceased. Officers subsequently recovered the victim’s cell phone and 20 white wax folds that contained suspected heroin. Analysis of the victim’s cell phone revealed that the victim had purchased heroin from the same individual two days before his death.
Analysis of text messages revealed that both victims purchased heroin from an individual who had purchased the heroin from BARRETO. The text messages also revealed that BARRETO was consistently dealing narcotics from April 2016 until he was arrested on August 10, 2017.
At the time of his arrest, investigators seized approximately 2,000 wax folds of heroin from BARRETO’s residence.
Judge Shea scheduled sentencing for October 31, 2018, at which time BARRETO faces a maximum term of imprisonment of 20 years. BARRETO is released on bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Harrison County man sentenced for his role in a heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Zachary Allen Queen, of Clarksburg, West Virginia, was sentenced today to 15 months incarceration for his role in a heroin distribution operation, United States Attorney Bill Powell announced.
Queen, age 26, pled guilty to one count of “Aiding and Abetting the Distribution of the Controlled Substance Analogue Cyclopropylfentanyl” in March 2018. Queen admitted to selling cyclopropylfentanyl in August 2017 in Harrison County.
Queen is facing up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gulfport Convicted Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Dannell Elanta Thompson, 37, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to 48 months in federal prison followed by five years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. He was also ordered to pay a $5,000 fine.
Thompson pled guilty before Judge Ozerden on April 30, 2018. The case arose when the Gulfport Police Department executed a search warrant on Thompson’s residence after Thompson sold methamphetamine to an informant. During the search, the police discovered marijuana, methamphetamine, a loaded Ruger LCP .380 pistol, and a Savage Arms Mark II .22 caliber rifle. Both of the firearms had been reported stolen to the Gulfport Police Department.
As a convicted felon, Thompson was prohibited from possessing firearms and ammunition under federal law. He was previously convicted of possession of a controlled substance, a state felony, in Harrison County Circuit Court.
The case was investigated by the Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Special Assistant United States Attorney Emily Nobile.
Green Bay Man Receives 15 Year Sentence for Methamphetamine Distribution and Firearm ChargeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on August 1, 2018, Jimmy L. Desotell (age: 26) of Green Bay, Wisconsin, appeared in federal court in Green Bay and was sentenced to 180 months in federal prison for his role in a methamphetamine distribution ring in Northeast Wisconsin and for possessing a firearm in furtherance of that distribution.
In the Spring of 2017, Desotell was involved in a conspiracy that resulted in pounds of methamphetamine acquired from a source in Phoenix, Arizona, being distributed in Brown County and elsewhere in Northeast Wisconsin. The evidence showed that Desotell possessed a firearm while distributing the methamphetamine, resulting in an additional charge.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the serious nature of Desotell’s crimes and the negative effect that methamphetamine has had on the community. The judge told Desotell that it was past time for him to “grow up,” noting his extensive prior criminal record. He informed Desotell that his crimes called for a strong sentence. Following his release from prison, Desotell will serve 8 years on federal supervised release.
Desotell was the last of eight individuals involved in the conspiracy to be sentenced by Judge Griesbach in federal court.
The case was investigated by the U.S. Drug Enforcement Administration and the Brown County Drug Task Force. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
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, was arrested and charged by criminal complaint with interstate communication of a threat. The charge carries a maximum penalty of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the complaint, on June 30, 2018, the Louisiana office of a United States Congressman (Congressman One) received a threatening voicemail. A congressional staff member reached out to the United States Capitol Police to report the threat. The voicemail 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.”
The call was traced to the defendant Carlos Bayon.
Also on June 30, 2018, the Washington State office of another United States Congressman (Congressman Two) received a threatening voicemail with the same message. That call as well was traced to the defendant.
“Though the government cannot force people to respect one another, the government can force people to respect the rule of law by prosecuting those who break it,” stated U.S. Attorney Kennedy. “If someone disagrees with a law, then the Constitution specifies the means to be pursued to have that law changed. Threats to lawmakers are not an acceptable means to accomplish that objective. Our country and our democracy are founded upon the principle of self-governance. Self-governance, however, is not the same as the unrestrained pursuit of self-interest—that is simply selfishness. These days it seems that too many people are willing to ignore their obligation to obey the laws as they are written. While disrespect for the rule of law can cost individuals, such as this defendant, their liberty, the cost to society can be even greater as it robs us of both the mores and means to be able to govern ourselves.”
“The Bureau and our federal partners continue to play key roles in combating violent crime and threats of violence in big cities and local communities,” said Gary Loeffert, Special Agent-in-Charge of the FBI's Buffalo Office. “We treat every threat like it's real until we can prove otherwise. Freedom of speech does not include using words to intimidate others -- Constitutional protections do not extend to threatening phone calls.”
The 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.
Gang Member Pleads Guilty to Drug DistributionRead the Press Release
BOSTON – A Heath Street gang member who was previously convicted of a felony pleaded guilty today in federal court in Boston to drug trafficking and illegal possession of a firearm.
Kendrick Tate, a/k/a “K-Roc,” 25, of Chelsea, pleaded guilty to one count of distribution of cocaine base and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 25, 2018. Tate has been serving a state sentence for unrelated drug and gun convictions.
On subsequent days in April 2017, Tate sold a cooperating witness crack cocaine and a firearm with a partially obliterated serial number. Although Tate has been identified by law enforcement as a member of the Heath Street Gang, he was living in Chelsea at the time of these sales.
According to court documents, Tate was convicted in state court in November 2017 of unrelated drug and firearm charges and is presently serving a 3 ½ - 4-year sentence. Tate was also previously convicted of assault with a dangerous weapon on two occasions, assault and battery with a dangerous weapon, resisting arrest, assault and battery on a police officer, and possession to distribute a Class B substance on two occasions.
Following a two-year investigation, Tate and eight co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development. The investigation and arrests sought to reduce violence and improve the quality of life for residents in and around the Mildred C. Hailey Apartments by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Founder and Managing Partner of Accounting Firm Pleads Guilty to Making False Filings with the U.S. Department of LaborRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), and Thomas Licetti, Acting New York Regional Director of the U.S. Department of Labor-Employee Benefits Security Administration (“DOL-EBSA”), announced that SALVATORE ARMAO, the founder and managing partner of an accounting firm (the “Firm”), pled guilty today to making false filings with DOL in order to conceal an embezzlement scheme in which more than $100,000 was embezzled from a labor union (the “Union”) and its employee welfare benefit plan (the “Plan”). ARMAO pled guilty before United States District Judge Vernon S. Broderick.
U.S. Attorney Geoffrey S. Berman said: “As a professional accountant and certified fraud examiner, Salvatore Armao was supposed to serve as a check on labor fraud, not a facilitator of it. As he admitted today, Armao knowingly submitted false filings with the Department of Labor and the Internal Revenue Service in order to facilitate and conceal a long-running embezzlement scheme involving a labor union.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “Salvatore Armao, a CPA and Certified Fraud Examiner for Armao LLP, should have been the first line of defense in protecting the members of a union, and the fund serving members and their families. Instead, he abused his position by filing false documents to conceal a multi-year embezzlement scheme. We will continue to work with the Employee Benefit Security Administration, the Office of Labor-Management Standards, and our law enforcement partners to safeguard the assets of union members.”
DOL-EBSA Acting New York Regional Director Thomas Licetti said: “Accurate reporting is an essential part of maintaining employee benefit plan integrity. EBSA’s efforts in this case exemplify our commitment to protecting employee benefits and working in coordination with fellow federal agencies.”
According to the allegations in the Complaint and the Information to which ARMAO pled guilty, as well as statements made in court:
From at least in or about 2010 through in or about 2014, the president of the Union, who also served as a trustee of the Plan (the “President-Trustee”), repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical expenses, dues for an actors’ union, personal credit card charges, and ATM cash withdrawals. The President-Trustee used his Union credit card to pay for personal expenses and then “reimbursed” the Union with funds transferred from the Plan. In total, the President-Trustee embezzled more than $100,000 from the Union over approximately three years.
During the period of the embezzlement, the Firm served as the accountant and auditor for the Union and the Plan. To facilitate and conceal the President-Trustee’s embezzlement, ARMAO falsely classified as “loans” the personal expenses for which the President-Trustee paid using Union and Plan funds in accounting records and in DOL filings for the Union. In at least 2012, 2013, and 2014, ARMAO falsely classified the President-Trustee’s personal expenses as loans in DOL filings for the Union. ARMAO also provided false information on DOL filings for the Plan, concealing from DOL the President-Trustee’s prohibited transfers of tens of thousands of dollars from the Plan to the Union which, in turn, facilitated and concealed the President-Trustee’s use of Union funds to pay his personal expenses. ARMAO repeatedly caused these false filings to be made to DOL despite being a Certified Fraud Examiner.
Under the terms of his plea agreement, ARMAO has agreed to a 13-year ban, pursuant to 29 U.S.C. §§ 504 and 1111, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan.
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SALVATORE ARMAO, 64, of Howard Beach, New York, pled guilty to a one-count Information charging him with making false statements in employee benefit plan records and reports required by the Employee Retirement Income Security Act of 1974 (“ERISA”). This offense carries a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ARMAO’s sentencing is scheduled for November 8, 2018, at 2:30 p.m., before Judge Broderick.
Mr. Berman praised the DOL’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding work on this investigation. Mr. Berman also thanked the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Fort Worth Man Sentenced to Life in Prison for His Role in Sex Trafficking of ChildrenRead the Press Release
FORT WORTH, Texas —Demarcus Davis, aka “Zigg,” 26, of Fort Worth, Texas, was sentenced Monday by U.S. District Judge Reed C. O’Connor to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a four-day trial in April 2018, Davis, and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Pierre Lagrone, “P” or “Pedro,” 34, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Lagrone and Sanders were previously sentenced by Judge O’Connor to life in federal prison and 420 months, respectively.
Earlier in the case, co-defendant Bruce Davis, aka, “Wheatie,” pled guilty to obstruction of enforcement. Davis threatened to harm Jane Doe 2, members of her family and her 1-year old child. Davis believed Jane Doe 2 was cooperating with law enforcement in the prosecutions of Demarcus and Kentrell Davis. Davis was sentenced in May 2018 by Judge O’Connor to 64 months in federal prison.
According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.
This case was investigated by the Homeland Security Investigations (HSI), U.S. Immigrations and Customs Enforcement’s (ICE), and the Fort Worth, Tyler and Arlington Police Departments. Assistant U.S. Attorneys P.J. Meitl and Nicole Dana were in charge of the prosecution.
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Former Navy Sailor Heads to Prison for Distributing Animal Crush VideoRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old former Navy sailor has been ordered to federal prison for distributing a video depicting the drowning of puppies, announced U.S. Ryan K. Patrick. Former Petty Officer Third Class Daniel James O’Sullivan pleaded guilty March 28, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos handed O’Sullivan a 21-month sentence. O’Sullivan will also be required to serve a term of three years of supervised release following completion of the prison term.
In June 2016, Naval Criminal Investigative Service (NCIS) agents were notified that O’Sullivan would be in possession of disturbing videos depicting the torture and killing of animals. Authorities interviewed him at Naval Air Station Corpus Christi where he was stationed at the time. O’Sullivan admitted he distributed a video to an individual in Montana that depicted the drowning of puppies in a river. That individual admitted to receiving the video.
Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of the video depicting the drowning of puppies and other animal crush videos. In one video, a dog’s mouth is closed with duct tape as it is set on fire. In another, a dog is thrown off a high-rise building. Other videos depict mice and baby chicks being ground-up in a blender.
Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
This is the second such case prosecuted in this district. The first resulted in a 57-month federal prison sentence and was believed to be the first indicted nationwide since the statute was amended in 2010.
In September 2017, O’Sullivan received an other than honorable discharge from the Navy.
O’Sullivan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
NCIS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Former Hillsborough Resident Indicted in Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – On July 26, 2018, a federal grand jury in San Francisco indicted former Bay Area resident Michael James Frew charging him with wire fraud, mail fraud, and money laundering announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Acting Special Agent in Charge Internal Revenue Service (IRS-CI) Tara Sullivan. The indictment was unsealed today following Frew’s arrest in Beatty, Nevada, on the charges.
According to the indictment, beginning no later than 2010, Frew, 70, formerly of Hillsborough, Calif., solicited investments from numerous individuals on the premise that their money would be invested into real estate in the United States and abroad. After receiving misrepresentations in connection with Frew’s solicitations, several victim investors provided funds to Frew for the purpose of allowing him to invest funds on their behalf. In fact, Frew used these “investments” primarily to support his personal lifestyle, to speculate on the stock market using an account in his name, and/or to repay other victims a portion of their investments.
The indictment alleges that Frew convinced his victims he would make investments into real estate in the United States and foreign countries in areas under recent distress from natural disasters. The indictment describes how Frew allegedly persuaded one couple to transfer to him $380,000 in cash for the purpose of making investments in foreign real estate and a short term investment that would yield a 10% return. Nevertheless, instead of investing the money as he promised, Frew used the money to make expenditures for personal expenses, to speculate on the stock market, and to repay other victim “investors.” The indictment describes similar transactions between Frew and four other victims during the period 2010 through 2014.
In sum, the indictment charges Frew with two counts each of wire fraud, in violation of 18 U.S.C. § 1343; mail fraud, in violation of 18 U.S.C. § 1341; and money laundering, in violation of 18 U.S.C. § 1957.
After his arrest, Frew made his initial appearance in United States District Court in Las Vegas, Nevada, and was released on certain conditions, including that he give up his passport. A local initial appearance in San Francisco is scheduled for August 21, 2018, before U.S. Magistrate Judge Jacqueline Scott Corley.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each count of wire fraud and mail fraud, and 10 years’ imprisonment on each count of money laundering. In addition, Frew faces fines of $250,000 on each count in the indictment and restitution for the losses he is alleged to have caused. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with assistance from Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the IRS-CI.
Former Department of Juvenile Justice Lieutenant Sentenced on Civil Rights ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that United States District Judge Mary Geiger Lewis sentenced Nicole Jenice Samples, age 36, of Columbia, to one year incarceration as a result of her conviction for deprivation of civil rights, in violation of Title 18, United States Code, Sections 242.
Evidence presented in court established that that on January 1, 2017, Nicole Jenice Samples directed the use of excessive force as punishment for two juveniles housed at the South Carolina Department of Juvenile Justice (DJJ). In response to juveniles making noise, Samples, a Lieutenant at DJJ, ordered two of her subordinate correctional officers to apply mechanical restraints to the two juveniles, directing that the leg restraints be connected to the hand restraints, a practice known as “hogtying.” Samples oversaw the application of the restraints on both juveniles. At Samples’ direction, the juveniles were left in the hogtied position for over two hours as punishment and suffered pain. DJJ policy forbids the use of restraints as punishment and specifically forbids the practice of “hogtying.” A DJJ surveillance camera captured one of the two juveniles being hogtied and left alone for hours. Following the hogtying event, Samples directed her subordinates to falsify reports related to the use of force incident.
United States Attorney Sherri A. Lydon had this to say, “Being entrusted with a position of power comes with both honor and responsibility. That responsibility must not be abused. Our office is committed to addressing any willful wrongdoing taking place in our state’s prisons and detention centers. This conviction sends a message to those who choose to abuse their authority.”
This case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division (SLED) at the request of, and with the assistance of, DJJ Director Freddie Pough. Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office handled the case.
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Former Colorado Mortgage Originator, A Subsidiary of Lehman Brothers, Agrees to Pay $41 Million Related to Its Conduct in Originating and Selling Mortgage LoansRead the Press Release
DENVER – Bob Troyer, the United States Attorney for the District of Colorado, announced today a $41 million settlement with Aurora Loan Services, LLC, a subsidiary of Lehman Brothers Holdings, Inc. (“LBHI”), in connection with Aurora Loan Services’ conduct in originating and selling residential mortgage loans from 2004 through 2008. Under the resolution announced today, Aurora Loan Services will pay $41 million as a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act.
Aurora Loan Services was a mortgage company headquartered in Littleton, Colorado. It worked with correspondent lenders, which made mortgage loans to homebuyers. Aurora Loan Services arranged for the sale of these loans to its parent company, Lehman Brothers Bank. Lehman Brothers Bank sold these loans to its parent, LBHI, a major investment bank. LBHI used the loans to create residential mortgage-backed securities and sold those securities to investors.
The United States alleged the following conduct by Aurora Loan Services. Between 2004 and 2008, Aurora Loan Services represented to potential investors that the loans generally complied with its underwriting standards. It represented that before the loans were purchased from correspondent lenders, the loans had been scrutinized as part of Aurora Loan Services’ quality control review. Investors were also told that the loans went through Aurora Loan Services’ “pre-funding fraud detection” review, a review that identified potential “red flags” in loan files.
In practice, however, Aurora Loan Services knew that these representations were not true for many loans. Aurora Loan Services gave five large correspondent lenders “Platinum” status. Aurora Loan Services gave these Platinum lenders better pricing. Aurora Loan Services also allowed the Platinum lenders to underwrite their own loans, and even to make exceptions by issuing loans that failed to meet the underwriting standards. In 2005, to save time and money, Aurora Loan Services removed the pre-funding fraud detection for all of its five Platinum lenders. Aurora Loan Services also decided to exempt the Platinum lenders from the quality control standards that Aurora Loan Services otherwise imposed on other lenders before their loans were sold. Aurora Loan Services did not tell investors that these five Platinum lenders were exempt from those quality control requirements. The shortcuts and preferential treatment that Aurora Loan Services gave to the five Platinum lenders contributed, among other factors, to the deteriorating quality of some loans purchased from those lenders. Starting in late 2006, the loans purchased from the five Platinum lenders began defaulting at higher rates. Investors who bought LBHI’s residential mortgage-backed securities containing those loans suffered losses.
The settlement agreement is neither an admission of liability by Aurora Loan Services nor a concession by the United States that its claims are not well founded.
Aurora Loan Services has minimal assets and no employees, and will be winding down. As part of the settlement, Aurora Loan Services’ parent company, Aurora Commercial Corporation, has represented that it has not resumed, and will not resume, the origination, underwriting, purchase or sale of mortgage loans. Aurora Loan Services has ceased all mortgage activities.
“Aurora Loan Services’ mortgage misconduct hurt people,” said United States Attorney for the District of Colorado Bob Troyer. “When the mortgages went into foreclosure, families lost their homes and investors lost their savings. Aurora Loan Services is paying for this misconduct and will never be able to do it again.”
Assistant U.S. Attorneys Lila Bateman and Kevin Traskos of the District of Colorado investigated Aurora Loan Services’ conduct, with the support of the Federal Housing Finance Agency’s Office of the Inspector General.
“Aurora Loan Services knowingly put investors at risk, and the losses caused by its irresponsible behavior deeply affected not only financial institutions such as the Federal Home Loan Banks, but also taxpayers, and contributed significantly to the financial crisis,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Midwest Region. “This settlement illustrates the tireless efforts put forth toward bringing a resolution to this chapter of the financial crisis. FHFA-OIG will continue to work with our law enforcement partners to hold those who have engaged in misconduct accountable for their actions.”
The $41 million civil monetary penalty resolves claims under the Financial Institutions Reform, Recovery and Enforcement Act, which authorizes the federal government to impose civil penalties against financial institutions that violate various predicate offenses, including wire and mail fraud. The settlement covers not only Aurora Loan Services but two other entities related to Aurora Loan Services, Aurora Commercial Corporation, and Lehman Brothers Bancorp, Inc., the holding company of Aurora Commercial Corporation. The settlement does not provide any release from liability to Lehman Brothers Holding Inc., which is in bankruptcy. The settlement also does not release any individuals from potential criminal or civil liability.
To report fraud, go to: http://www.stopfraud.gov.
Final Defendant Sentenced for Stockton-Based Credit Card Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Thongchone Vongdeng, 38, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to time served, which was three years in custody, for his participation in a scheme that involved hundreds of fraudulent transactions on Target REDcard accounts and at least 1,000 victims across the United States, U.S. Attorney McGregor W. Scott announced.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and identity theft crimes committed against the public.”
According to the court documents, between March 2014 and September 2015, Vongdeng and eight co-conspirators stole personal information from victims and created unauthorized accounts in order to purchase merchandise. Part of the scheme involved using Target REDcard account numbers to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, northern California, and elsewhere.
In all, more than 300 counterfeit accounts were used or trafficked by members of the conspiracy, and over 1,000 victims have been identified as having had their identities compromised as a result of the conspiracy. All defendants are residents of Stockton. All of defendants pleaded guilty, and their sentences are as follows:
Boone B. Khoonsrivong, 41, was sentenced to five years and five months in prison.
Daisy Sysengrat, 32, was sentenced to two and half years in prison.
Vuthiya Tim, 33; was sentenced to three years and two months in prison.
Meghan Paradis, 34; was sentenced to two and half years in prison.
Sequoia Valverde, 35; was sentenced to three years and one month in prison.
Amber Collins, 33; was sentenced to two and half years in prison.
Somaly Siv, 32; and was sentenced to two and half years in prison
Jaffrey Brown, 34, was sentenced to three years and two months in prison.
This case was the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.
Eight People Plead Guilty to Federal Charges Following Investigation into Drug Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Eight people, all from Washington, D.C., have pled guilty to federal charges following an investigation into the trafficking of PCP, crack cocaine and heroin in Southwest Washington.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced today by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The guilty pleas followed an investigation by ATF and the MPD targeting the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District. According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
Those pleading guilty include:
-Antonio Spencer, 24. He pled guilty today to one count of conspiring to distribute and possess with intent to distribute PCP, heroin, and crack cocaine. He faces a mandatory minimum sentence of five years and a statutory maximum of 40 years in prison.
-Maurice Spencer, 19. He pled guilty on July 19, 2018 to conspiracy to distribute PCP and faces a statutory maximum of 20 years in prison. He is the younger brother of Antonio Spencer.
-Kione Banks, 20. He pled guilty on May 23, 2018, to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
-Raymond Boston 27. He pled guilty on May 16, 2018, to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
-Jerome Fuller, 33. He pled guilty on May 22, 2018, to one count of distribution of PCP and faces a statutory maximum of 20 years in prison.
-Damion Littman, 32. He pled guilty on May 21, 2018, to one count of distribution of PCP and also faces a statutory maximum of 20 years in prison.
-Davon Warren, 22. He pled guilty on July 19, 2018 to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
-Morriko Washington, 24. He pled guilty on May 22, 2018, to one count of possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory sentence of five years and a statutory maximum of life in prison.
This case is being investigated by ATF and MPD. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg and William Schurmann, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.Early Autism Project, Inc., South Carolina's Largest Provider of Behavioral Therapy for Children with Autism, Pays the United States $8.8 Million to Settle Allegations of FraudRead the Press Release
COLUMBIA, SC – The United States Attorney’s Office for the District of South Carolina announced today that Early Autism Project, Inc. (“EAP”) has paid the United States $8,833,615 to resolve a False Claims Act investigation that it submitted false claims to the TRICARE and the South Carolina Medicaid programs for therapy services for children with autism. EAP is South Carolina’s largest provider of intensive behavioral treatment to children with autism, known as Applied Behavioral Analysis (“ABA”) therapy. TRICARE is the federal health insurance program for active and retired military members and their families, while South Carolina Medicaid provides health benefits to qualifying low-income residents of South Carolina.
The settlement announced today resolves allegations that EAP billed TRICARE and South Carolina’s Medicaid program for ABA therapy services for children with autism that either misrepresented the services provided or where the services were not provided at all. As it relates to Medicaid’s PDD Waiver, EAP devised a program that required its therapists to reserve an allotment of billable time each week or month so that EAP could bill Medicaid for positions called Regional Lead and Regional Coordinator. The United States contends that these Regional Leads and Regional Coordinators were not actively working with the child from whom the hours were deducted, but rather, the EAP-devised program was designed to maximize profits by billing Medicaid for administrative and management functions of the company. Medicaid does not pay for therapy services by individuals who are not actively working with the child for whom the therapy is billed. The United States also contends that EAP allowed its therapists to regularly “pad” the hours it billed for therapy services to the TRICARE program and to South Carolina Medicaid, such that these programs regularly paid for therapy services that were not provided.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time of that child’s development, should be held accountable if they do not provide the services, but nevertheless request payment for those services,” said Barbara Bowens, Acting United States Attorney for this case and Civil Chief for the United States Attorney’s Office for the District of South Carolina. “The United States Attorney’s Office is committed to protecting the federally-funded programs that make it possible for children with special needs to receive these vital services.”
The civil investigation arose from a lawsuit filed by a former employee of EAP, Olivia Zeigler, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Ms. Zeigler will receive $435,000.
As part of the settlement announced today, EAP, and its parent company, ChanceLight, Inc. have also entered into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which seeks to ensure future corporate compliance by requiring internal compliance reforms, including hiring an independent review organization to conduct annual claims reviews.
“That the State’s largest service provider for autistic children would defraud government health programs is compounded only by their billing at the expense of taxpayers for misrepresented or nonexistent services—as alleged here,” 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 to protect vulnerable patients and preserve government health programs.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (“DCIS”) and our law enforcement partners to ensuring that medical service providers are held accountable when they submit false bills and divert taxpayer funds. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affects critical programs such as TRICARE,” said Special Agent in Charge Robert Craig, DCIS Mid-Atlantic Field Office.
This case was handled by Assistant United States Attorney Beth Warren, HHS-OIG, DCIS, and the Medicaid Fraud Control Unit of the South Carolina Attorney General’s Office.
The litigation and settlement 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 claims resolved by this settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Zeigler v. South Carolina Early Autism Project, Inc., No. 3:15-cv-2750-MBS (D.S.C., filed July 11, 2015).
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Dominican Republic Man Who Was Apprehended After Departing the St. John Car Barge Pleads Guilty to Conspiracy to Possess 55 Kilograms of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Reynaldo Lerburds, 41, of the Dominican Republic, pleaded guilty today in District Court before Judge Curtis V. Gomez, to conspiracy to possess cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for December 6, 2018.
According, to the plea agreement, Lerburds was stopped by the Drug Enforcement Administration (DEA) based upon information that Lerburds was coming from St. John on the car barge in a vehicle that contained a distribution quantity of cocaine. Lerburds was apprehended after departing the car barge, and DEA agents confiscated 50 brick-like objects of a white powdery substance. The white powdery substance tested positive for cocaine and weighed approximately 55 kilograms.
Lerburds faces a sentence of not less than 10 years or more than life and a fine of $10,000,000.00.
The case was investigated by the Drug Enforcement Administration (DEA) and the Virgin Islands Police Department (VIPD) and prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Dominican Republic Man Who Shipped Narcotics through the U.S. Mails Pleads Guilty to Possession of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Braulio Martinez, 33, of the Dominican Republic, pleaded guilty today in District Court before Judge Curtis V. Gomez to possession of cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for December 6, 2018.
According to the plea agreement, on or about July 25th, 2017, Martinez distributed two kilograms of cocaine from the U.S. Virgin Islands to the U.S. mainland by mailing the two kilograms inside electronic equipment.
Martinez faces a minimum sentence of five years and a fine of $250,000.00.
The case was investigated by the Drug Enforcement Administration (DEA) and the United States Postal Inspection Services (USPIS) and prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Eddy Espinal-Diaz, 33, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison, to be served concurrent with any future sentence that may be imposed on a pending state drug case, and three years of supervised release. Espinal-Diaz will be subject to deportation proceedings. In May 2018, Espinal-Diaz pleaded guilty to one count of unlawful reentry of a deported alien.
Law enforcement in Middleton encountered Espinal-Diaz on Nov. 9, 2017, and determined him to be illegally present in the United States. Espinal-Diaz was previously deported on Aug. 18, 2015.
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 Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Jesus Leonardo Castillo-Martinez, 45, was indicted on one count of illegal reentry of a deported alien.
According to court documents, law enforcement officers in Billerica encountered Castillo-Martinez on June 23, 2018, and determined him to be illegally present in the United States. Castillo-Martinez was previously deported on Nov. 1, 2016.
Castillo-Martinez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 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 Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit Area Hospital System to Pay $84.5 Million to Settle False Claims Act Allegations Arising from Improper Payments to Referring PhysiciansRead the Press Release
WASHINGTON – William Beaumont Hospital, a regional hospital system based in the Detroit, Michigan area, will pay $84.5 million to resolve allegations under the False Claims Act of improper relationships with eight referring physicians, resulting in the submission of false claims to the Medicare, Medicaid and TRICARE programs, the Justice Department announced today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent and office staff. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
“Offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Patients deserve the unfettered, independent judgment of their health care professionals.”
“We are very pleased with the outcome of this case. This result should impress on the medical community the fact that we will aggressively take action to recover monies wrongfully billed to Medicare, through the remedies provided in the federal False Claims Act,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “I would like to commend the new leadership at Beaumont Hospital for making things right once its past wrongdoing was brought to its attention by federal investigators.”
The settlement resolves allegations that between 2004 and 2012, Beaumont provided compensation substantially in excess of fair market value and free or below-fair market value office space and employees to certain physicians to secure their referrals of patients in violation of the Anti-Kickback Statute and the Stark Law, and then submitted claims for services provided to these illegally referred patients, in violation of the False Claims Act. The settlement also resolves claims that Beaumont allegedly misrepresented that a CT radiology center qualified as an outpatient department of Beaumont in claims to federal health care programs. As a result of this settlement, Beaumont will pay $82.74 million to the United States and $1.76 million to the State of Michigan.
“Health care providers that offer or accept financial incentives in exchange for patient referrals undermine both the financial integrity of federal health care programs and the public’s trust in medical institutions,” said HHS-OIG Special Agent in Charge Lamont Pugh. “Our agency will continue to protect both patients and taxpayers by holding those who engage in fraudulent kickback schemes accountable.”
The allegations resolved by the settlement were brought in four lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The four qui tam cases are captioned: United States ex rel. David Felten, M.D., Ph.D. v. William Beaumont Hospitals, et al., No. 2:10-cv-13440 (E.D. Mich.), United States ex rel. Karen Carbone v. William Beaumont Hospital, No. 11-cv-12117 (E.D. Mich.), United States ex rel. Cathryn Pawlusiak v. Beaumont Health System, et al., No. 2:11-cv-12515 (E.D. Mich.), and United States ex rel. Karen Houghton v. William Beaumont Hospital, No. 2:11- cv-14312 (E.D. Mich.). The whistleblower shares to be awarded in the cases have not yet been determined.
These matters were investigated by the U.S. Attorney’s Office for the Eastern District of Michigan, the Civil Division’s Commercial Litigation Branch, and the State of Michigan Attorney General’s Office. Investigative assistance was provided by the Office of Inspector General of the Department of Health and Human Services and the Centers for Medicare and Medicaid Services, and the Department of Defense’s Defense Criminal Investigative Service.
In addition to resolving its False Claims Act liability, Beaumont has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, an arrangements review to be conducted by an Independent Review Organization.
The government’s investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 claims resolved by the settlement are allegations only, and there has been no determination of liability.
Department of Justice Opens Review of Paramount Consent DecreesRead the Press Release
As part of The Department of Justice’s review of nearly 1,300 legacy antitrust judgments, the Antitrust Division today announced that it has opened a review of the Paramount Consent Decrees, which for over seventy years have regulated how certain movie studios distribute films to movie theatres. The purpose of the review is to determine whether or not the decrees should be terminated or modified.
The Antitrust Division announced in April its initiative to terminate legacy antitrust judgments, stating that it would review all such judgments to identify those that no longer serve to protect competition. The initiative was undertaken because many of the final judgments that the Division entered into from the earliest days of the Sherman Act until the late 1970s do not include sunset provisions or express termination dates. Consequently, those judgments are perpetual, regardless of whether there have been subsequent industry or technological changes that might make those judgments either ineffective in protecting competition or even anticompetitive themselves.
In particular, the Paramount Decrees have regulated how certain movie studios distribute films to movie theatres since the Supreme Court’s decision in United States v. Paramount, 334 U.S. 131 (1948). For example, the decrees ban various motion picture distribution practices, including block booking (bundling multiple films into one theatre license), circuit dealing (entering into one license that covered all theatres in a theatre circuit), resale price maintenance (setting minimum prices on movie tickets), and granting overbroad clearances (exclusive film licenses for specific geographic areas). Given that these decrees do not have any sunset provisions or termination dates, the Division will thoroughly review them to determine whether they still serve the American public and are still effective in protecting competition in the motion picture industry.
“The Paramount Decrees have been on the books with no sunset provisions since 1949. Much has changed in the motion picture industry since that time,” said Makan Delrahim, Assistant Attorney General for the Justice Department’s Antitrust Division. “It is high time that these and other legacy judgments are examined to determine whether they still serve to protect competition. Today, we take an important step forward in the process of reviewing the Paramount Decrees.”
Since the district court entered the Paramount Decrees, the motion picture industry has undergone considerable change. None of the Paramount defendants own a significant number of movie theatres. Additionally, unlike seventy years ago, most metropolitan areas today have more than one movie theatre. The first-run movie palaces of the 1930s and 40s that had one screen and showed one movie at a time, today have been replaced by multiplex theatres that have multiple screens showing movies from many different distributors at the same time. Finally, consumers today are no longer limited to watching motion pictures in theatres. New technology has created many different distribution and viewing platforms that did not exist when the decrees were entered into. After an initial theatre run, today’s consumers can view motion pictures on cable and broadcast television, DVDs, and over the Internet through streaming services.
As a consequence of all of these changes, and the fact that the decrees have been in place for over seventy years, the Department has opened a review to determine whether the decrees should be modified or terminated.
The Antitrust Division has posted an invitation for public comment on its public website (https://www.justice.gov/atr/paramount-decree-review), inviting interested persons, including motion picture producers, distributors, and exhibitors, to provide the Division with information or comments relevant to whether the Paramount Consent Decrees still are necessary to protect competition in the motion picture industry. The period for public comment ends October 4, 2018.*
* The original version of this release stated the public comment period is 30 days, which has been extended to 60 days.
Department of Justice Announces Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce expansion of the Tribal Access Program (TAP), a program providing federally recognized Tribes the ability to access and exchange data with the national crime information databases for both civil and criminal purposes.
The department will accept applications from Aug. 1 to Oct. 1, 2018. Interested Tribes may apply by using this link: www.justice.gov/tribal/tribal-access-program-fy-2019-application. Tribes that are selected for participation will be notified by Oct. 15, 2018, and deployment activities will begin shortly thereafter; deployment to all selected Tribes will be completed by Sept. 30, 2019.
“President Trump and Attorney General Sessions are committed to reducing violent crime in Indian Country,” said Deputy Attorney General Rod Rosenstein. “Today’s announcement is another example of this commitment and the administration’s efforts to ensure Tribal police have access to the innovative tools and resources they need to ensure public safety and promote the rule of law.”
“The Tribal Access Program has been instrumental in ensuring tribal protection orders are entered into federal criminal databases. This alerts law enforcement departments throughout the nation to their existence, and prevents covered individuals from illegally purchasing firearms. TAP also provides an easy platform for entering sex offender registrations into the National Sex Offender Registry. In short, it is a critical law enforcement and public safety tool for Indian country,” noted Woodrow Star, Chairman of the Law and Order Committee and Member of the Board of Trustees, Confederated Tribes of the Umatilla Indian Reservation.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS) and for 2019, the Office for Victims of Crime (OVC). Given the funding sources, eligible tribes must have a sex offender registry authorized by the Adam Walsh Child Protection and Safety Act, a law enforcement agency that is not a Bureau of Indian Affairs direct service agency, or will utilize the TAP system to assist in providing services to victims of crime.
Under TAP, Tribes have successfully begun entering information directly into the federal databases, resulting in nearly 600 sex offender registrations and over 550 sex offender check-ins, nearly 300 instances of data entry that would prohibit someone from being able to purchase a firearm, over 1000 orders of protection entered or modified and over 4,200 finger-print based record checks for civil purposes that include employment, tribal housing placement and personnel/volunteers who have regular contact with or control over Indian children.
For FY19, the Department of Justice offers TAP services through one of the following two methods:
- TAP-LIGHT: The department provides software that provides full access (both query and entry capabilities) to national crime information databases such as National Criminal Information Center (NCIC), the Interstate Identification Index (III) and the International Justice and Public Safety Network (Nlets) for both criminal and civil purposes; and
- TAP-FULL: The department provides the same basic capabilities as TAP-LIGHT listed above, and also provides an additional hardware/software solution in the form of a kiosk-workstation that provides the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) for both criminal and civil purposes.
Criminal agencies that may participate include law enforcement agencies, prosecutors, criminal courts, jails, and probation departments. Civil agencies and programs that may participate include agencies whose staff/volunteers have contact with or control over Indian children; public housing agencies; child support enforcement agencies; Head Start programs; social service agencies that investigate allegations of abuse, neglect, and exploitation of children; civil courts that issue orders of protection, restraining orders, or other keep away orders and sex offender registration programs.
TAP supports Tribes in analyzing their needs for national crime information and provides appropriate solutions, including a state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access Criminal Justice Information Services (CJIS) systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by DOJ’s Chief Information Officer, provides specialized training and assistance for participating Tribes, including computer-based training, and on-site instruction, as well as a 24x7 Help Desk.
By September 2018, TAP will be deployed to 47 tribes (both TAP-FULL and TAP-LIGHT) with over 180 Tribal criminal justice and civil agencies participating.
For more information about TAP, click here + www.justice.gov/tribal/tribal-access-program-tap.
For a list of the 47 Tribes currently participating in tap, click here. + www.justice.gov/file/1001376/download.
Defendant sentenced for two armed bank robberiesRead the Press Release
ATLANTA - Darius Taurean Caldwell has been sentenced for committing two armed bank robberies, brandishing a firearm in connection with those robberies, and possessing a firearm after having been convicted of a felony offense.
“Caldwell terrified and endangered the lives of innocent victims during these armed robberies,” said U.S. Attorney Byung J. “BJay” Pak. “We are committed to keeping our communities safe and ensuring that justice is served for the victims of his crimes.”
“If not for the quick response by the Smyrna Police Department, this violent offender more than likely would have continued robbing and threatening innocent citizens,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “His reckless disregard for their safety could have easily turned into tragedy. Fortunately he is no longer a threat.”
According to U.S. Attorney Pak, the charges and other information presented in court: On August 24, 2016, Caldwell robbed a North of Atlanta (NOA) Bank branch in Doraville, Georgia. He walked into the bank wearing a blue facemask and an inside-out t-shirt. Caldwell stuck a black and silver handgun in a teller’s face and demanded money. Minutes later, he fled on foot with several thousand dollars. He managed to evade capture following this armed robbery.
On September 7, 2016, Caldwell robbed a Bank of America branch in Smyrna, Georgia. Again wearing a blue facemask and an inside-out t-shirt, he walked into the bank, reached past a terrified customer, stuck a black and silver handgun in a teller’s face, and demanded money. He again fled on foot with several thousand dollars. However, this time Smyrna, Georgia, Police Department officers captured Caldwell within minutes of the robbery while he hid behind a nearby residence. Investigators later linked Caldwell to the earlier NOA Bank robbery.
Darius Taurean Caldwell, 33, of Duluth, Georgia was sentenced to 32 years, one day in federal prison to be followed by five years of supervised release. He was also ordered to pay $ 14,841 in restitution. Caldwell was convicted by a federal jury on April 12, 2018, on two counts of armed bank robbery, two counts of brandishing a firearm during the commission of those robberies, and the offense of possessing a firearm after having been convicted of a felony offense.
This case was investigated by the Federal Bureau of Investigation and the Smyrna Police Department.
Assistant U.S. Attorney Bret R. Hobson and Assistant U.S. Attorney Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Colorado Springs Man Found Guilty of Being Felon in Possession of Firearm and Felon in Possession of AmmunitionRead the Press Release
DENVER – Daniel Lovato, age 38, of Colorado Springs, Colorado, was found guilty today of being a felon in possession of a firearm and being a felon in possession of ammunition, U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. The guilty verdicts were handed down today following a 3-day jury trial before U.S. District Court Judge Raymond P. Moore. The jury acquitted the defendant on a 3rd count. A 4th count was earlier dismissed by the government. Lovato, who appeared at the trial in custody, was remanded at the conclusion of the trial. Sentencing is scheduled for October 25, 2018.
According to facts presented at trial, as well as details included in court documents, on March 3, 2018, the Colorado Springs Police Department (CSPD) responded to a call of shots fired near North Hancock Avenue. Officers learned that a reporting party witnessed the occupants of a 2002 silver Honda shoot at a white Dodge Durango. The Honda then left the scene. A short while later CSPD officers located the Honda and attempted a traffic stop, but the Honda fled. After a brief chase, the Honda slowed to approximately 15 to 20 miles per hour, and Lovato jumped out. The Honda continued to flee. Lovato was taken into custody, and it was determined he was in possession of a loaded .22 caliber handgun and 32 rounds of .22 caliber ammunition in his front pants pocket. An ammunition can with over 200 rounds of ammunition was found within Lovato’s immediate reach. Lovato was previously convicted of a felony, namely first degree assault resulting in serious bodily injury with a deadly weapon, in Lake County, Colorado.
“Our community is safer today, thanks to the hard work of our prosecutors, the ATF and the Colorado Springs Police Department,” said U.S. Attorney Bob Troyer.
“ATF and the Colorado Springs Police Department are working together to reduce violent crime in our communities. With the successful prosecution of Lovato, we are accomplishing that goal,” said ATF Denver Field Division Special Agent in Charge Debora Livingston.
This case was investigated by the Colorado Springs Police Department and the ATF. The defendant was prosecuted by Assistant U.S. Attorneys Jason St. Julian and Beth Gibson.
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.
Colorado Man Convicted of Sex Trafficking by Force, Fraud or CoercionRead the Press Release
DES MOINES, Iowa – On August 1, 2018, following a three-day trial, a jury found Antoinne Lee Washington, 33, guilty of one count of sex trafficking of an adult by force, fraud, or coercion, and one count of transportation for prostitution. Sentencing has been scheduled for December 5, 2018, at 9:00 a.m., before United States District Court Judge Stephanie Rose.
Washington was charged with sex trafficking of an adult by force, fraud, or coercion, from May through September 2017. During trial, the government presented evidence that Washington had a relationship with the victim for several years, during which time the victim engaged in commercial sex acts for Washington’s financial benefit. Washington coerced the victim into engaging in sex acts by imposing a series of rules upon the victim, such as calling him “Daddy”. The evidence showed Washington also required the victim to turn over to him the proceeds from sex acts, and that he prohibited her from looking at African American males. Washington enforced these rules through threats of physical force and assaults on the victim, to include beating and burning the victim.
From May through September 2017, Washington transported the victim through several states so that she would engage in commercial sex acts for his benefit, ultimately arriving at a hotel in Urbandale, Iowa, on September 20, 2017. That evening, after the Defendant had physically assaulted her, the victim called the hotel desk and asked them to contact law enforcement. The Urbandale Police Department responded to the call, which initially came to them as a domestic assault complaint. After observing the victim and several items in the hotel room, including personal journals and hotel receipts, the Urbandale Police Department suspected sex trafficking, and notified the Federal Bureau of Investigation.
Sex trafficking of an adult by force, fraud, or coercion is punishable by a minimum of fifteen years’ imprisonment, and up to life imprisonment. Transportation for prostitution is punishable by up to ten years’ imprisonment.
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
The case was investigated by the Federal Bureau of Investigation and the Urbandale Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Colombian Narco Trafficker Sentenced to 21 YearsRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington today sentenced Jorge Eliecer Cifuentes-Cuero (54, Colombia, South America) to 21 years in federal prison for conspiring to possess with the intent to distribute five kilograms or more of cocaine while aboard a vessel subject to the jurisdiction of the United States.
According to court documents, Cifuentes-Cuero was a principal member of his Colombian and Ecuadorean-based drug trafficking organization. He initially worked as a mechanic and mariner onboard vessels in the Eastern Pacific Ocean, and later, as he accumulated wealth, became an organizer of multi-ton cocaine loads transported by vessel from Colombia and Ecuador to locations in Central and Latin America. Cifuentes-Cuero is responsible for several maritime smuggling ventures in the international waters of the Eastern Pacific Ocean. In January 2013 and July 2014, the U.S. Coast Guard interdicted loads of cocaine, totaling over 1,000 kilograms that were being smuggled aboard vessels (commonly referred to as “go-fast boats”).
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Thomas Palermo.
Clifton Park Man Sentenced to 10 Years for Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – William C. Ruff, age 43, of Clifton Park, New York, was sentenced on Tuesday to 10 years in prison for distributing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Charles Margiotta, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The sentence was issued by Senior United States District Judge Norman A. Mordue, and followed Ruff’s guilty plea, on April 16, 2018, to distributing child pornography on eight occasions between October 10, 2016 and December 17, 2016. As Ruff admitted, the pornographic videos and images depicted the sexual abuse of children as young as 3 years old.
Judge Mordue also imposed a 20-year term of supervised release to start after Ruff is released from prison. As a result of his conviction, Ruff will be required to register as a sex offender after leaving prison.
This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Emmet O’Hanlon.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Citizen of El Salvador Sentenced to 6.5 Years for Travel in Interstate Commerce to Engage in Illicit Sexual Conduct with Two MinorsRead the Press Release
ASHEVILLE, N.C. – On Thursday, August 2, 2018, Jose Hector Alvarado, 44, a citizen of El Salvador who was residing in Cherokee County, N.C., was sentenced to 78 months in prison and 15 years of supervised release, for traveling in interstate commerce to engage in illicit sexual conduct with two minors, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Alvarado to register as a sex offender after he is released from prison.
According to filed court documents and court proceedings, on March 19, 2016, Alvarado drove a 13-year-old girl and a 14-year-old girl from Cherokee County, N.C., to Anderson, S.C. for the purpose of engaging in sex with the minors there. Upon arriving in Anderson, Alvarado bought gifts for the minors and then rented a motel room. Court records show that the minors contacted their parents and informed them of their whereabouts. The parents alerted local law enforcement and the minors were rescued.
Alvarado pleaded guilty on October 26, 2017, to traveling in interstate commerce to engage in illicit sexual conduct. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. Alvarado will also be subject to deportation proceedings upon the completion of his federal sentence.
In making today’s announcement, U.S. Attorney Murray thanked ICE/Homeland Security Investigations and the Cherokee County Sheriff’s Office for their investigation of this case.
The U.S. Attorney’s Office in Asheville prosecuted the case.
Charlestown Man Charged with Bank RobberyRead the Press Release
BOSTON - A Charlestown man was charged today in federal court in Boston with bank robbery.
Robert H. Brady, 40, was indicted on one count of bank robbery. Brady is currently in state custody.
According to court documents, on June 28, 2018, Brady robbed a branch of the Cambridge Savings Bank in Charlestown, stealing approximately $912.00.
Brady faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and restitution in the amount of $912.00. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Felon Sentenced to 30 Months Imprisonment for Firearms and Marijuana Distribution ChargesRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon stated that Charles Baldwin Wilson, age 36, of Charleston, was sentenced in federal court in Charleston for Possession of Firearms by a Convicted Felon, and Possession with Intent to Distribute Marijuana, in violation of Title 18 U.S.C. § 922(g) and Title 21 U.S.C. § 841(b)(1)(D). United States District Judge Richard M. Gergel, of Charleston, sentenced Wilson to 30 months imprisonment, 2 years supervised release to include 12 months of home confinement, a fine of $25,000, a special assessment of $200, and forfeiture of firearms and $21,473.38.
Evidence presented at the change of plea and sentencing hearing established that on November 16, 2015, Charleston County Sheriff’s Office executed a search warrant at Wilson’s residence. Law enforcement found multiple rooms in the home dedicated to a sophisticated marijuana growing operation, along with seven firearms. Wilson had a prior conviction for Possession with Intent to Distribute Marijuana from 2006, and was prohibited from possessing a firearm. Further investigation revealed that Wilson made multiple trips to Colorado to further his multi-year drug trafficking operation.
The case was investigated by U.S. Postal Inspection Service and Charleston County Sheriff’s Office. Assistant United States Attorneys Jamie Lea Schoen was assigned to the case.
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Cedar Rapids Man Charged with Sexual Exploitation of a Child, Possession of Child Pornography, and ExtortionRead the Press Release
John Hunt, age 34, of Cedar Rapids, Iowa, has been charged with sexual exploitation of a child, possession of child pornography, and extortion. The charges are contained in an Indictment filed on July 26, 2018, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2015 and 2017, Hunt produced sexual depictions of a child, possessed child pornography on four different devices, and sent communications containing threats to distribute sexually explicit depictions.
If convicted, Hunt faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 112 years’ imprisonment, a $1,500,000 fine, $25,600 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Hunt appeared on August 1, 2018 in federal court in Cedar Rapids for a detention hearing and was held without bond. Hunt’s next appearance for trial is set for October 1, 2018.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 18-69.
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Brockport Man Pleads Guilty to Aiding and Abetting Credit Crad Fraud and ID TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Paul Kozlyuk, 32, of Brockport, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to aiding and abetting the unlawful transfer, possession, and use of identification documents, authentication features, and information. The charge carries a maximum penalty of 15 years in prison, and a fine of $250,000.
Assistant U.S. Attorneys Kyle Rossi and Melissa Marangola, who are handling the case, stated that the defendant conspired with co-defendant Kyle Bertrand and others, to steal goods from various businesses. As part of the scheme, defendant Bertrand stole the identification of individuals residing in multiple states, including their names, Social Security Numbers, dates of birth, and credit card information. During the scheme, using the stolen identifications, Bertrand, at the request of Kozlyuk, made unlawful purchases of items for the defendant. Kozlyuk then paid Kyle Bertrand with Walmart money grams. Kozlyuk paid Bertrand a fraction of the actual market price of the stolen goods, and either kept the goods or sold them for a profit, through his former business, the Marketview Heights Garage.
Kozlyuk unlawfully obtained vehicle parts from various out-of-state venders, which he later sold to vendors. Kozlyuk also stole inventory from vendors in the Western District of New York. All told, Kozlyuk stole or attempted to steal a total of $144,688.35 in goods.
Kozlyuk was charged along with co-defendants Kyle Bertrand, Herbert Street, Michael Gerone, and Richard Lipke. All defendants have been convicted.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; the Rochester Police Department, under the direction of Chief Michael Ciminelli, and Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.Sentencing is scheduled for October 25, 2018, before Judge Wolford.
Brazilian National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Antonio Ferreira, 56, was indicted on one count of illegal reentry of a deported alien.
According to court documents, law enforcement officers in Framingham encountered Ferreira on June 26, 2018, and determined him to be illegally present in the United States. Ferreira was previously deported on April 5, 2007.
Ferreira faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 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 Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boulder Woman Sentenced to 10 Years in Federal Prison for Distribution of Heroin Resulting in DeathRead the Press Release
DENVER – Kirsten Lippold, age 48, of Boulder, Colorado, was sentenced today to serve 10 years in federal prison for distributing heroin resulting in death, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. The sentence was handed down by U.S. District Court Judge Raymond P. Moore. Following the prison sentence, Judge Moore ordered the defendant to serve 5 years on supervised release. The defendant, who appeared at the sentencing hearing in custody, was remanded at the hearing’s conclusion.
Lippold was indicted by a federal grand jury in Denver on July 13, 2017. She pled guilty on May 9, 2018 to distribution of heroin resulting in death.
According to court documents, Kirsten Lippold distributed heroin, a Schedule I controlled substance, the use of which resulted in an overdose death on or about August 17, 2015. Within the factual basis of her plea agreement, Lippold admitted to selling less than a gram of heroin to the decedent. Nonetheless, that heroin resulted in a fatal overdose, which occurred in Boulder, Colorado. Sentencing proceedings further revealed that the defendant also had prior felony drug convictions. No information about the victim is available for release.
“If you are selling even small amounts of heroin in Colorado, know this: any one of your sales could kill someone. If you don’t care about that, maybe you’ll care about this: you will face mandatory minimum sentences in federal prison, out of state, no parole,” said U.S. Attorney Bob Troyer.
“Ms. Lippold’s sentence represents the FBI’s dedication to pursuing those intent on harming the citizens of our communities, through direct action and general criminal activity,” said FBI Denver Division Special Agent in Charge Calvin Shivers. “The FBI will continue to work through our strong law enforcement partnerships to protect our community from those engaged in crimes of this nature."
The investigation was conducted by the Boulder County Drug Task Force, the City of Boulder Police Department and the Fort Collins Resident Agency of the Federal Bureau of Investigation. The prosecution was handled by Bradley W. Giles, Assistant U.S. Attorney, District of Colorado, Denver.
Albuquerque Felon Sentenced to Eight Years for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Daniel Penrod, 29, of Albuquerque, N.M., was sentenced today in federal court to 96 months (eight years) of imprisonment followed by three years of supervised release for violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Penrod in Jan. 2018, on a criminal complaint that charged Penrod with being a felon in possession of a firearm and ammunition on Jan. 16, 2018, in Bernalillo County, N.M. According to the criminal complaint, while Deputy U.S. Marshals were executing an arrest warrant on Penrod for a probation violation, Penrod attempted to flee. During the pursuit that ensued, Penrod turned towards a Deputy U.S. Marshal and drew a loaded firearm out of his waistband, whereupon the Deputy U.S. Marshal disarmed and arrested Penrod.
On May 3, 2018, Penrod pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Penrod admitted that he possessed a firearm, which he pulled from his waistband as he turned toward the Deputy U.S. Marshal who was pursuing him on Jan. 16, 2018. Penrod acknowledged that at the time, he was prohibited from possessing firearms or ammunition because of his prior felony convictions for receiving or transferring a stolen motor vehicle, 2nd degree murder, and battery upon a police officer.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service. Assistant U.S. Attorney Kimberly A. Brawley prosecuted the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Accountant sentenced to prison for embezzling over one million dollars from employerRead the Press Release
ATLANTA – Stantisha D. Kemp, an accounting manager who embezzled over $1.2 million dollars from her employer over a six-year period has been sentenced.
“Kemp’s egregious misconduct threatened the financial soundness of her company when she stole over one million dollars,” said U.S. Attorney Byung J. “BJay” Pak. “Businesses should build in checks and balances in their accounting procedures that safeguard their assets from fraud.”
“Hopefully this sentencing makes a statement that the FBI is committed to making cases like this a strong deterrent to the temptation of greed,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “Kemp not only defrauded the company she worked for, she also violated the trust they put in her.”
According to U.S. Attorney Pak, the charges and other information presented in court: From 2007 to 2013, Kemp served as a payroll and accounting manager of an Atlanta-based company that developed medical technology. During that time, Kemp embezzled over $1.2 million dollars by falsifying payroll records sent to a third-party payroll processing company and instructing the payroll processor to direct deposit funds into her personal bank accounts on a monthly basis.
Kemp falsely instructed the payroll processing company that a doctor with the initials Y.H.J. was a company employee, and she further instructed the payroll processing company to direct deposit Y.H.J.’s salary payments into her personal bank accounts. She concealed her scheme by preparing a set of fabricated internal payroll records that made no mention of Y.H.J., who had not been employed by the company since early April 2010. Nonetheless, Y.H.J.’s unauthorized salary payments were deposited into Kemp’s personal bank accounts, month after month, until February 2013.
Kemp was sentenced to two years in prison to be followed by three years of supervised release on August 1, 2018. She was also ordered to pay restitution in the amount of $1,253,287.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S Attorney Kamal Ghali, Deputy Chief of the Cyber and Intellectual Property Crime Section, prosecuted the case.
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.
19-Year-Old Charged with Importation of 11,490 Fentanyl Pills,61 Pounds of Methamphetamine, and 14 Pounds of Heroin at San Ysidro Port of EntryRead the Press Release
NEWS RELEASE SUMMARY – August 2, 2018
SAN DIEGO – Today, Cristian Araujo Aguirre, 19, was arraigned by Magistrate Judge Barbara Major, on charges of importing 11,490 fentanyl pills, 61 pounds of methamphetamine and 14 pounds of heroin. Aguirre was arrested at the San Ysidro Port of Entry on August 1, 2018.
According to court records, Aguirre, a United States citizen living in Tijuana, was the driver and sole occupant of a vehicle. U.S. Custom Border & Protection (“CBP”) officers found anomalies in the driver’s side and passenger side rear door panels and spare tire of his vehicle. CBP removed 8 packages of heroin in the vehicle’s firewall, two packages of methamphetamine from the rear driver’s side door; 2 packages of methamphetamine from the rear driver’s side door; 5 packages of methamphetamine from the right rear quarter panel; 11 packages of methamphetamine from the right passenger rear door; 9 packages of methamphetamine in the spare tire, 2 bags and one box of pills (totaling 11,490 pills) in the left rear quarter panel of the vehicle. The pills tested positive for fentanyl but were designed to resemble M30s, or oxycodone.
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At defendant’s initial appearance, the United States requested detention based on risk of flight. The detention hearing is scheduled for August 7, 2018 at 9:30 before Judge Major. His preliminary hearing is scheduled for August 16, 2018 at 9:30 before Judge Major.
DEFENDANT Case Number 18MJ4249
Cristian Araujo Aguirre Age: 19 Tijuana, Mexico
SUMMARY OF CHARGES
Importation of Controlled Substances
Maximum penalty: 10 years minimum to life; $1,000,000 fine; supervised release; $100 special assessment)
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Customs & Border Protection (CBP)
The public is reminded that a complaint is a charging document. A defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Wednesday 1 August 2018
Yankton Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Yankton, South Dakota, man convicted of Possession of Child Pornography.
Richard Leon Engbretson, age 36, was sentenced on July 30, 2018, to 10 years in federal prison, followed by 10 years of supervised release, ordered to pay $100 to the Federal Crime Victims Fund, and forfeit his computer and cell phone.
Engbretson was indicted for possession of child pornography by a federal grand jury on August 8, 2017. He pled guilty on May 10, 2018.
On February 4, 2017, Yankton Police responded to a 911 call from the residence of Richard Engbretson. In the call, Engbretson explained that he cut his own wrists because he was depressed and lonely. He also stated that he was a sex offender and had looked at child pornography. When officers arrived, Engbretson opened the door holding his left wrist in a towel. A forensic examination led to the discovery of child pornography on Engbretson's computer and cell phone.
This case was investigated by the Yankton Police Department, the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Jeff Clapper.
Engbretson was returned to state custody to complete a sentence for a 2015 conviction for possessing child pornography.
Winter Harbor Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Timothy Daniel Davis, 61, of Winter Harbor, Maine, pleaded guilty yesterday in U.S. District Court to being a felon in possession of a firearm.
Court records reveal that in about June 2016, Davis possessed a shotgun while threatening another man. On May 15, 2017, Davis possessed a 12 gauge, double-barreled shotgun at his Winter Harbor apartment. Davis was prohibited from possessing firearms as a result of a 2010 armed assault with intent to murder conviction in Massachusetts.
Davis faces up to ten years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Winter Harbor and Gouldsboro Police Departments.
West Columbia Man Sentenced to 14 Years on Federal Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Jwain Dennis Francis, a/k/a “Love,” age 28, of West Columbia, was sentenced in federal court to a total of 168 months imprisonment with 3 years of supervised release to follow. Earlier this year, Francis plead guilty to being a felon in possession of a firearm and ammunition and to possession with intent to crack cocaine and cocaine, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e) and Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Chief United States District Judge Terry L. Wooten, of Columbia, imposed the sentence, which consisted of the maximum 120 months (10 years) imprisonment on the firearm charge and 168 months (14 years) imprisonment on the drug charge, both to run concurrently.
Evidence presented in court established that in late 2016, the West Columbia Police Department received information that an individual nicknamed “Love” was selling crack cocaine in the area of Gentle Pine Apartments. A confidential informant was able to purchase crack cocaine from “Love” on two separate occasions in November 2016, and law enforcement determined through photo line-ups that “Love” was Francis. On December 1, 2016, officers arrested Francis on state drug charges and executed a search warrant at his residence. Inside the residence, officers recovered baggies of cocaine and crack cocaine, along with scales and $3,305. Officers also recovered a 9mm handgun and 9mm ammunition. Francis admitted that he bought and sold crack cocaine and cocaine.
Francis is prohibited under federal law from possessing firearms and ammunition based upon his prior separate South Carolina state convictions for strong arm robbery (2007), indecent exposure (two counts)(2014), and strong arm robbery (2014). Francis was determined to be a career offender for purposes of sentencing based upon his extensive prior record.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the West Columbia Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Wells Fargo Agrees to Pay $2.09 Billion Penalty for Allegedly Misrepresenting Quality of Loans Used in Residential Mortgage-Backed SecuritiesRead the Press Release
The Justice Department announced today that Wells Fargo Bank, N.A. and several of its affiliates (Wells Fargo) will pay a civil penalty of $2.09 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) based on the bank’s alleged origination and sale of residential mortgage loans that it knew contained misstated income information and did not meet the quality that Wells Fargo represented. Investors, including federally insured financial institutions, suffered billions of dollars in losses from investing in residential mortgage-backed securities (RMBS) containing loans originated by Wells Fargo.
“This settlement holds Wells Fargo accountable for actions that contributed to the financial crisis,” said Acting Associate Attorney General Jesse Panuccio. “It sends a strong message that the Department is committed to protecting the nation’s economy and financial markets against fraud.”
“Abuses in the mortgage-backed securities industry led to a financial crisis that devastated millions of Americans,” said Acting U.S. Attorney for the Northern District of California, Alex G. Tse. “Today’s agreement holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted. Our office is steadfast in pursuing those who engage in wrongful conduct that hurts the public.”
FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including wire and mail fraud. The United States alleged that, in 2005, Wells Fargo began an initiative to double its production of subprime and Alt-A loans. As part of that initative, Wells Fargo loosened its requirements for originating stated income loans – loans where a borrower simply states his or her income without providing any supporting income documentation.
To evaluate the integrity of its increasing volume of stated income loans, Wells Fargo subjected a sample of these loans to “4506-T testing.” A 4506-T form is a government document signed by the borrower during the loan approval process that allows the lender to obtain the borrower’s tax transcripts from the Internal Revenue Service (IRS). 4506-T testing involves comparing the tax transcripts of the borrower with the income stated on the loan application. Wells Fargo implemented 4506-T testing on two of its programs. This testing revealed that more than 70% of the loans that Wells Fargo sampled had an “unacceptable” variance (greater than 20% discrepancy between the borrower’s stated income and the income information reflected in the borrower’s most recent tax returns filed with the IRS), and the average variance was approximately 65%. After receiving these results, Wells Fargo conducted further internal testing. This additional testing, performed by quality assurance analysts, was designed to determine if “plausible” explanations existed for the “unacceptable” variances over 20%. This additional step revealed that nearly half of the stated income loans that Wells Fargo tested had both an unacceptable variance and the absence of a plausible explanation for that variance.
The results of Wells Fargo’s 4506-T testing were disclosed in internal monthly reports, which were widely distributed among Wells Fargo employees. One Wells Fargo employee in risk management observed that the “4506-T results are astounding” yet “instead of reacting in a way consistent with what is being reported WF [Wells Fargo] is expanding stated [income loan] programs in all business lines.”
The United States alleged that, despite its knowledge that a substantial portion of its stated income loans contained misstated income, Wells Fargo failed to disclose this information, and instead reported to investors false debt-to-income ratios in connection with the loans it sold. Wells Fargo also allegedly heralded its fraud controls while failing to disclose the income discrepancies its controls had identified. The United States further alleged that Wells Fargo took steps to insulate itself from the risks of its stated income loans, by screening out many of these loans from its own loan portfolio held for investment and by limiting its liability to third parties for the accuracy of its stated income loans. Wells Fargo sold at least 73,539 stated income loans that were included in RMBS between 2005 to 2007, and nearly half of those loans have defaulted, resulting in billions of dollars in losses to investors.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of California, with investigative support from the Federal Housing Finance Agency, Office of Inspector General.
The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Wells Fargo Agrees to Pay $2.09 Billion Penalty for Allegedly Misrepresenting Quality of Loans Used in Residential Mortgage-Backed SecuritiesRead the Press Release
SAN FRANCISCO-The Justice Department announced today that Wells Fargo Bank, N.A. and several of its affiliates (Wells Fargo) will pay a civil penalty of $2.09 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) based on the bank’s alleged origination and sale of residential mortgage loans that it knew contained misstated income information and did not meet the quality that Wells Fargo represented. Investors, including federally insured financial institutions, suffered billions of dollars in losses from investing in residential mortgage-backed securities (RMBS) containing loans originated by Wells Fargo.
“Abuses in the mortgage-backed securities industry led to a financial crisis that devastated millions of Americans,” said Acting U.S. Attorney for the Northern District of California, Alex G. Tse. “Today’s agreement holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted. Our office is steadfast in pursuing those who engage in wrongful conduct that hurts the public.”
“This settlement holds Wells Fargo accountable for actions that contributed to the financial crisis,” said Acting Associate Attorney General Jesse Panuccio. “It sends a strong message that the Department is committed to protecting the nation’s economy and financial markets against fraud.”
FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including wire and mail fraud. The United States alleged that, in 2005, Wells Fargo began an initiative to double its production of subprime and Alt-A loans. As part of that initative, Wells Fargo loosened its requirements for originating stated income loans – loans where a borrower simply states his or her income without providing any supporting income documentation.
To evaluate the integrity of its increasing volume of stated income loans, Wells Fargo subjected a sample of these loans to “4506-T testing.” A 4506-T form is a government document signed by the borrower during the loan approval process that allows the lender to obtain the borrower’s tax transcripts from the Internal Revenue Service (IRS). 4506-T testing involves comparing the tax transcripts of the borrower with the income stated on the loan application. Wells Fargo implemented 4506-T testing on two of its programs. This testing revealed that more than 70% of the loans that Wells Fargo sampled had an “unacceptable” variance (greater than 20% discrepancy between the borrower’s stated income and the income information reflected in the borrower’s most recent tax returns filed with the IRS), and the average variance was approximately 65%. After receiving these results, Wells Fargo conducted further internal testing. This additional testing, performed by quality assurance analysts, was designed to determine if “plausible” explanations existed for the “unacceptable” variances over 20%. This additional step revealed that nearly half of the stated income loans that Wells Fargo tested had both an unacceptable variance and the absence of a plausible explanation for that variance.
The results of Wells Fargo’s 4506-T testing were disclosed in internal monthly reports, which were widely distributed among Wells Fargo employees. One Wells Fargo employee in risk management observed that the “4506-T results are astounding” yet “instead of reacting in a way consistent with what is being reported WF [Wells Fargo] is expanding stated [income loan] programs in all business lines.”
The United States alleged that, despite its knowledge that a substantial portion of its stated income loans contained misstated income, Wells Fargo failed to disclose this information, and instead reported to investors false debt-to-income ratios in connection with the loans it sold. Wells Fargo also allegedly heralded its fraud controls while failing to disclose the income discrepancies its controls had identified. The United States further alleged that Wells Fargo took steps to insulate itself from the risks of its stated income loans, by screening out many of these loans from its own loan portfolio held for investment and by limiting its liability to third parties for the accuracy of its stated income loans. Wells Fargo sold at least 73,539 stated income loans that were included in RMBS between 2005 to 2007, and nearly half of those loans have defaulted, resulting in billions of dollars in losses to investors.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of California, with investigative support from the Federal Housing Finance Agency, Office of Inspector General. Assistant U.S. Attorneys Douglas Chang and Kimberly Friday are handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California with the assistance of Tina Louie. The matter was handled in conjunction with Department of Justice Commercial Litigation Branch Trial Attorneys Derek Adams, Denise Barnes, and David Tyler.
The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Washington, Pa. Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA - A Washington County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property and supplemental security income fraud, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on July 31, named Crystal Bell, 42, of Washington, Pennsylvania, as the sole defendant.
The indictment alleges that, from January 31, 2013 through November 31, 2014, Bell acted as a representative payee for a beneficiary and converted $15,031 in Title XVI Social Security benefits deposited to the bank account for the beneficiary. She also falsified a document sent to Social Security Administration by indicating that the beneficiary was residing at her home when the beneficiary was not then residing at her home and was not entitled to receive benefits.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.