Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 30 July 2018
Gary Man Sentenced to 71 Months in PrisonRead the Press Release
SOUTH BEND – Raphael Perry, 43 years old, of Gary, Indiana, was sentenced by U.S. District Court Judge Robert L. Miller, Jr. after pleading guilty to possession with intent to distribute over 100 grams of heroin, announced United States Attorney Thomas L. Kirsch II.
Perry was sentenced to 71 months imprisonment, followed by 4 years supervised release.
According to documents in the case, in September 2017, Raphael Perry possessed over 100 grams of heroin with intent to distribute. He possessed this heroin at his home in Gary, Indiana.
This case was investigated by DEA and prosecuted by Assistant United States Attorney Frank Schaffer.
###
Gang Member Sentenced for Trafficking MarijuanaRead the Press Release
BROWNSVILLE, Texas – A 39-year-old Edinburg man has been ordered to federal prison following his conviction of trafficking 131.6 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick. Rogelio Ramos, a known member of the Vallucos street gang, pleaded guilty April 27, 2018.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Ramos to serve 87 months in federal prison to be immediately followed by four years of supervised release.
On March 9, 2018, authorities engaged in a vehicle pursuit after watching several individuals loading large bundles of marijuana into a Ford Taurus near the U.S. and Mexico border around Blue Town. The vehicle stopped and authorities watched Ramos run into a sugar cane field to hide. Agents found 12 bundles of marijuana in the backseat and trunk of the Taurus, totaling 131.6 kilograms.
Ramos admitted he was intending to distribute the marijuana within the United States.
Ramos has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigation. Assistant U.S. Attorney Holly D’Andrea prosecuted the case.
Gang Member Convicted in Manhattan Federal Court for His Role in the Murder of Jessica WhiteRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that STIVEN SIRI-REYNOSO was found guilty of the June 11, 2016, murder of Jessica White, who was killed by a stray bullet while watching her children play in the playground of the John Adams Houses in the Bronx, New York. SIRI-REYNOSO was convicted after an eight-day trial before Chief U.S. District Judge Colleen McMahon.
U.S. Attorney Geoffrey S. Berman: “On June 11, 2016, Jessica White did what so many parents love to do – she took her children to the playground. There, she was killed before her children’s eyes, the victim of a stray bullet in a gang shooting. Today, a jury in the Southern District of New York unanimously found that Stiven Siri-Reynoso gave the order for that shooting. We recognize that this verdict cannot fill the gaping hole that Jessica’s death left in so many hearts. But in the face of such tragedy, we, along with our law enforcement partners, maintain our commitment to ridding our neighborhoods and playgrounds of senseless gang violence. That is what we accomplished today, thanks to the extraordinary efforts of the FBI and NYPD.”
According to the allegations in the Indictment and evidence at trial:
On June 11, 2016, Jessica White was struck and killed by a stray bullet while sitting on a bench watching her three children play on a playground at the John Adams Houses where she lived. SIRI-REYNOSO, a member of the “Dominicans Don’t Play” or “DDP” street gang, was engaged in an ongoing gang dispute between the DDPs and the rival “Trinitarios” street gang involving, among other things, SIRI-REYNOSO’s drug sales near the John Adams Houses. On the night of June 11, 2016, Trinitarios members tried to attack SIRI-REYNOSO. In retaliation, SIRI-REYNOSO sent another individual to shoot at the Trinitarios. One of the bullets fired by that individual struck and killed Jessica White.
SIRI-REYNOSO also committed other crimes in connection with his membership in the DDP’s, including drug selling and robbery.
* * *
SIRI-REYNOSO, 24, of the Bronx, was convicted of conspiring to commit racketeering, conspiring to sell narcotics, murder in aid of racketeering, and murder through the use of a firearm. SIRI-REYNOSO is facing a mandatory minimum sentence of life in prison, and is scheduled to be sentenced on October 30, 2018, before Judge McMahon. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Drew Skinner, Allison Nichols, and Frank Balsamello are in charge of the prosecution.Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Darin Kaufman, 37 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Theresa L. Springmann, after pleading guilty to one count of Receipt of Material Depicting Minors Engaged in Sexually Explicit Conduct and one count of Possession of Material Depicting Minors Engaged in Sexually Explicit Conduct, announced U.S. Attorney Kirsch.
Kaufman was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in this case, from January 2014 through November 2014, Kaufman received and possessed child pornography. Found in his possession were images from different child pornography series that are known to law enforcement. Kaufman entered a plea of guilty for the charges mentioned above in May of 2016. He has been in custody since his arrest stemming from these charges.
This case was investigated by the FBI and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
###
Fort Drum Contractor Pays $683,987 to Resolve False Claims Act ExposureRead the Press Release
SYRACUSE, NEW YORK – Alutiiq Diversified Services, LLC (“Alutiiq”) paid $683,987 to resolve claims that it improperly billed the United States Army for the construction of a shoot house located at Fort Drum and has agreed to remediate the shoot house at no cost to the government, announced United States Attorney Grant C. Jaquith.
Alutiiq had an agreement with the Army to construct a shoot house on Fort Drum for use as a live-fire, close-quarters combat training facility. Shoot houses like this one are made principally with a substance called Shock Absorbing Concrete (“SACON”). SACON is specially designed to absorb bullets fired during training exercises, reducing the risk to soldiers of being hit by friendly gun fire during live-fire training. The specification for the SACON sets forth requirements for the density of the SACON at various stages of manufacture and the SACON’s compressive strength, both of which can impact the SACON’s ability to absorb bullets. Alutiiq subcontracted with another company to do the actual work of building the shoot house, but Alutiiq remained contractually obligated to the government to perform quality control.
The investigation revealed that the subcontractor responsible for making the SACON did not follow the SACON specifications, delivering hundreds of SACON blocks that were outside the density parameters. Moreover, there were no records showing that the subcontractor performed compressive strength testing at the required time, and the limited strength testing records that were available showed that some SACON blocks were outside the maximum strength limit even when tested too early. The investigation also uncovered a SACON block with makeshift rebar in the form of nail and wire embedded inside the block, a condition that increases bullet ricochet risk. Alutiiq submitted quality control reports for the SACON work certifying that it was performed in accordance with the contract requirements but did not actually confirm before submitting its claims for payment that the SACON subcontractor had manufactured the SACON properly.
United States Attorney Grant C. Jaquith said: “Accurate claims are essential in all government contracts to protect the public purse and the safety of those who use the purchased product. This case underscores the importance of that principle, involving false claims about the reliability of materials to reduce the risk to our soldiers during live-fire combat training. The settlement agreement reflects Alutiiq’s failure to carry out its quality control obligations, its submission of false claims, and its cooperative work to resolve this case by paying a substantial sum of money and fixing the shoot house so the Army has the safe setting needed to train soldiers to defend our nation. We will continue to use the False Claims Act to safeguard the integrity of defense procurement.”
“The settlement agreement announced today is the successful resolution of this joint investigation conducted by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command and the U.S. Attorney’s Office, Northern District of New York,” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The integrity of the DoD supply chain is of vital importance to America’s Armed Forces and its national security and the DCIS will continue to work with its law enforcement partners to hold Defense Contractors accountable to contract requirements ensuring quality products and services are provided to the U.S. military.”
This settlement further demonstrates the resolve of the U.S. Army Criminal Investigation Command's (USACIDC) Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” stated Special Agent in Charge L. Scott Moreland, of the USACIDC’s Mid-Atlantic Fraud Field Office.
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the Defense Criminal Investigative Service, and the United States Army Criminal Investigation Command. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.
Former Virginia Teacher Sentenced to 23 Years in Prison for Producing Child PornographyRead the Press Release
WASHINGTON - A Charlottesville, Virginia man was sentenced today to 276 months in prison for production of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Thomas T. Cullen of the Western District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. field office.
Richard Wellbeloved-Stone, 57, pleaded guilty in the U.S. District Court for the Western District of Virginia to one count of production of child pornography. Senior U.S. District Judge Norman K. Moon presided over the sentencing and ordered him to serve a lifetime of supervised release following his prison sentence.
Wellbeloved-Stone, a high school teacher in Charlottesville, was discovered by law enforcement after chatting online with an undercover agent from the United Kingdom about sexually abusing a young child. A search warrant executed at Wellbeloved-Stone’s home recovered several images of child pornography produced by Wellbeloved-Stone of at least two young minor victims.
“As a high school science teacher, the defendant held a position of great trust in our society – a trust he abused when he produced horrific images of young children,” said Assistant Attorney General Benczkowski. “Today’s sentence reflects the unwavering commitment of our prosecutors and law enforcement partners to combat child pornography and to hold offenders accountable for their deplorable crimes.”
“This defendant, through his heinous acts, betrayed the trust of the Charlottesville community,” said U.S. Attorney Cullen. “We are grateful for the hard work of our federal, state, and local law-enforcement partners in bringing him to justice and making our community safer.”
“Child predators are the worst type of criminals,” said HSI Special Agent in Charge Lechleitner. “They prey on innocent children for their own self-gratification. While we can’t undo Wellbeloved-Stone’s actions, today’s sentence ensures he can’t victimize anyone else.”
This case was investigated by HSI Washington, D.C., the Charlottesville Police Department, the Virginia State Police, the Albemarle County Police Department and the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Technology Investigative Unit.
This case was prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s CEOS and Assistant U.S. Attorney Nancy Healey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Virginia High School Science Teacher Sentenced to 23 Years in Prison for Producing Child PornographyRead the Press Release
A Charlottesville, Virginia man was sentenced today to 276 months in prison for production of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Thomas T. Cullen of the Western District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. field office.
Richard Wellbeloved-Stone, 57, pleaded guilty in the U.S. District Court for the Western District of Virginia to one count of production of child pornography. Senior U.S. District Judge Norman K. Moon presided over the sentencing and ordered him to serve a lifetime of supervised release following his prison sentence.
Wellbeloved-Stone, a high school teacher in Charlottesville, was discovered by law enforcement after chatting online with an undercover agent from the United Kingdom about sexually abusing a young child. A search warrant executed at Wellbeloved-Stone’s home recovered several images of child pornography produced by Wellbeloved-Stone of at least two young minor victims.
“As a high school science teacher, the defendant held a position of great trust in our society – a trust he abused when he produced horrific images of young children,” said Assistant Attorney General Benczkowski. “Today’s sentence reflects the unwavering commitment of our prosecutors and law enforcement partners to combat child pornography and to hold offenders accountable for their deplorable crimes.”
“This defendant, through his heinous acts, betrayed the trust of the Charlottesville community,” said U.S. Attorney Cullen. “We are grateful for the hard work of our federal, state, and local law-enforcement partners in bringing him to justice and making our community safer.”
“Child predators are the worst type of criminals,” said HSI Special Agent in Charge Lechleitner. “They prey on innocent children for their own self-gratification. While we can’t undo Wellbeloved-Stone’s actions, today’s sentence ensures he can’t victimize anyone else.”
This case was investigated by HSI Washington, D.C., the Charlottesville Police Department, the Virginia State Police, the Albemarle County Police Department and the Criminal Division’s Child Exploitation and Obscenity Section’s (CEOS) High Technology Investigative Unit.
This case was prosecuted by Trial Attorney Leslie Williams Fisher of the Criminal Division’s CEOS and Assistant U.S. Attorney Nancy Healey.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Owner of Sleep Study Businesses Convicted of Fraud ConspiracyRead the Press Release
A federal jury convicted a Sterling, Virginia woman today on health care fraud and tax charges for operating a fraudulent sleep study clinic in Northern Virginia.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia; Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office; Acting Special Agent in Charge Kelly R. Jackson of IRS Criminal Investigation (CI) Washington D.C. Field Office; Special Agent in Charge Bret D. Mastronardi for the Office of Personnel Management Office (OPM); Special Agent in Charge Robert E. Craig for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
After a two-week trial, Young Yi, 44, a citizen of South Korea, was convicted of one count of conspiracy to commit health care and wire fraud, seven counts of health care fraud, one count of conspiracy to defraud the United States, and one count of filing a false tax return. She is scheduled to be sentenced on Nov. 2 by U.S. District Judge Liam O’Grady of the Eastern District of Virginia, who presided over the trial and remanded her into the custody of the U.S. Marshals Service.
“Young Yi fueled her lavish lifestyle by misleading patients, withholding information from physicians, and using doctors’ identifying information without their permission in order to steal millions of dollars from Medicare and private insurers,” said Assistant Attorney General Benczkowski. “Today’s verdict highlights the important work of the Department and our law enforcement partners as we seek to hold people accountable for defrauding our health care system.”
“Yi lied to, cheated, and stole from taxpayers and insurance companies,” said U.S. Attorney Terwilliger. “When someone commits healthcare and tax fraud it drives up the cost of care for everyone and creates an un-level playing field. Yi misled patients and their doctors, falsified records to cover it up, and deducted millions in taxes she used to buy expensive properties and luxury goods. I want to thank our trial team and investigative partners for their terrific work on this complex and important case.”
According to evidence presented at trial, Yi obtained more than $83 million from Medicare and private insurance during the health care fraud conspiracy and lowered her taxes by nearly $900,000 in one tax year alone. Yi formed the primary entities she used to commit the crimes, 1st Class Sleep Diagnostic Center and 1st Class Medical, in 2005. Using those and other entities, Yi directed her employees to solicit patients who had been referred to her clinic for legitimate sleep studies for supplemental but medically unnecessary studies. To conceal the scheme, Yi instructed employees not to send the results of the fraudulent studies to the patients’ doctors, lied to patients by telling them they did not have to pay copays or coinsurance, and cross-billed using her different entities both to conceal the repetition from the insurance companies and to get out-of-network payments for in-network services. The cross-billing between the two lead entities alone was approximately $4 million. Yi also used the original referring doctors’ names and identifying information on health insurance claims without their permission, the evidence showed.
According to the evidence presented at trial, Yi used her business bank accounts to purchase personal luxury goods and real estate that she nonetheless booked as business expenses. Those falsely booked purchases included a $25,000 Rolex watch, $10,500 in mink coats, several luxury vehicles and a $1.1 million home in Sterling, Virginia. Yi also used the proceeds of her crimes to purchase five condominiums worth more than $2.8 million in McLean, Virginia; Chicago, Illinois; and Honolulu, Hawaii. Yi used money that she falsely booked as payments for medical supplies and health insurance reimbursements to purchase land in Great Falls, Virginia. After a February 2014 search warrant was executed at her businesses, Yi and her husband formed a purported charity, and transferred assets into that foundation to protect them from law enforcement.
In addition to the medically unnecessary sleep studies performed on patients who had been referred by doctors to 1st Class Sleep Diagnostic Center, Yi also encouraged her own employees to have sleep studies that were then billed to insurance, the evidence showed. Those included claims charged in the indictment for three employees who did not have sleep apnea but nonetheless received at least 27 sleep studies between them in less than three years. The employees received payments for undergoing the sleep studies, and in some instances, the employees were organized into teams for “races” to see who could refer the greatest number of friends and family members for the fraudulent studies.
Yi’s co-defendant, Dannie Ahn, pleaded guilty in December 2017 and is scheduled to be sentenced on Sept. 14.
The case was investigated by the FBI Washington Field Office, IRS-CI, OPM-OIG, DCIS and HHS-OIG. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Katherine L. Wong and Ryan S. Faulconer of the Eastern District of Virginia are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Former Owner of Sleep Study Businesses Convicted of Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Sterling woman today on health care fraud and tax charges for operating a fraudulent sleep study clinic in Northern Virginia.
“Yi lied to, cheated, and stole from taxpayers and insurance companies,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “When someone commits healthcare and tax fraud it drives up the cost of care for everyone and creates an un-level playing field. Yi misled patients and their doctors, falsified records to cover it up, and deducted millions in taxes she used to buy expensive properties and luxury goods. I want to thank our trial team and investigative partners for their terrific work on this complex and important case.”
According to court records and evidence presented at trial, Young Yi, 44, a citizen of South Korea, obtained more than $83 million from Medicare and private insurance during the health care fraud conspiracy and lowered her taxes by nearly $900,000 in one tax year alone. Yi formed the primary entities she used to commit the crimes, 1st Class Sleep Diagnostic Center and 1st Class Medical, in 2005. Using those and other entities, Yi directed her employees to solicit patients who had been referred to her clinic for legitimate sleep studies for supplemental but medically unnecessary studies. To conceal the scheme, Yi instructed employees not to send the results of the fraudulent studies to the patients’ doctors, lied to patients by telling them they did not have to pay copays or coinsurance, and cross-billed using her different entities both to conceal the repetition from the insurance companies and to get out-of-network payments for in-network services. The cross-billing between the two lead entities alone was approximately $4 million. Yi also used the original referring doctors’ names and identifying information on health insurance claims without their permission, the evidence showed.
“Young Yi fueled her lavish lifestyle by misleading patients, withholding information from physicians, and using doctors’ identifying information without their permission in order to steal millions of dollars from Medicare and private insurers,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “Today’s verdict highlights the important work of the Department and our law enforcement partners as we seek to hold people accountable for defrauding our health care system.”
According to the evidence presented at trial, Yi used her business bank accounts to purchase personal luxury goods and real estate that she nonetheless booked as business expenses. Those falsely booked purchases included a $25,000 Rolex watch, $10,500 in mink coats, several luxury vehicles and a $1.1 million home in Sterling, Virginia. Yi also used the proceeds of her crimes to purchase five condominiums worth more than $2.8 million in McLean, Virginia; Chicago, Illinois; and Honolulu, Hawaii. Yi used money that she falsely booked as payments for medical supplies and health insurance reimbursements to purchase land in Great Falls, Virginia. After a February 2014 search warrant was executed at her businesses, Yi and her husband formed a purported charity, and transferred assets into that foundation to protect them from law enforcement.
In addition to the medically unnecessary sleep studies performed on patients who had been referred by doctors to 1st Class Sleep Diagnostic Center, Yi also encouraged her own employees to have sleep studies that were then billed to insurance, the evidence showed. Those included claims charged in the indictment for three employees who did not have sleep apnea but nonetheless received at least 27 sleep studies between them in less than three years. The employees received payments for undergoing the sleep studies, and in some instances, the employees were organized into teams for “races” to see who could refer the greatest number of friends and family members for the fraudulent studies.
Yi’s co-defendant, Dannie Ahn, pleaded guilty in December 2017 and is scheduled to be sentenced on September 14.
Yi was convicted of one count of conspiracy to commit health care and wire fraud, seven counts of health care fraud, one count of conspiracy to defraud the United States, and one count of filing a false tax return. She is scheduled to be sentenced on November 2.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Kelly R. Jackson, Acting Special Agent in Charge of IRS-Criminal Investigation, Washington D.C. Field Office, Bret D. Mastronardi, Special Agent in Charge for the Office of Personnel Management Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office, and Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement. Assistant U.S. Attorneys Katherine L. Wong and Ryan S. Faulconer, and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-224.
Former Military Police Officer Sentenced to 15 Years in Prison for Production of Child PornographyRead the Press Release
HONOLULU – Christopher Ernest Fox, 21, a former Military Police Officer stationed at Schofield Barracks, Hawaii, was sentenced today to 15 years of imprisonment for the production of child pornography for his online exploitation and “sextortion” of a minor female. As part of his sentence, Fox must pay $10,000 in restitution to the victim and her family, and serve 10 years of supervised release. Fox will also be required to register as a sex offender.
According to court documents and information presented in court, in August 2016 Fox began corresponding with a 12-year-old female in the United Kingdom using social media applications, including Instagram and Snapchat. In September 2016, Fox began to solicit sexually explicit photographs from the girl, knowing she was a minor. After obtaining naked photographs of the girl, Fox then asked for more. Fox used the photographs he initially received from the girl to blackmail her into sending additional explicit photographs, and threatened to distribute the initial photographs to her friends and family if she did not comply with his demands. Ultimately, when his victim refused to continue sending Fox explicit photographs, he created a fictitious social media account under her name, and used that account to distribute the sexually explicit photographs to her friends and classmates. As a result of Fox’s crime, the minor was bullied, harassed, and threatened with further extortion by random strangers online.
At Fox’s sentencing, Chief U.S. District Judge J. Michael Seabright remarked upon the “harm and terror this [crime] would cause somebody.” He went on to call Fox’s actions “a lifechanging, traumatic experience,” and noted, “saying his actions were wrong is a grave understatement.”
“Project Safe Childhood, a national initiative within the Department of Justice, combats crimes against children,” said U.S. Attorney Kenji M. Price. “This Office is committed to holding those who sexually exploit our young people accountable for their crimes. These kind of crimes are serious and have devastating impacts on victims, their families, and the community atlarge. The U.S. Attorney’s Office will continue to aggressively prosecute, and seek significant sentences for defendants who prey on our young people.”
The case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, with assistance from the Wiltshire Police Department in the United Kingdom, and prosecuted by Assistant U.S. Attorney Morgan Early.
Federal Jury Convicts Registered Sex Offender in Plot to Bomb Target StoresRead the Press Release
Ocala, Florida – A federal jury has found Mark Charles Barnett (50, Ocala) guilty of attempted arson, possession of an unregistered National Firearms Act (NFA) destructive device, and making an unregistered NFA destructive device. Barnett faces a maximum penalty of 20 years in federal prison for the attempted arson count and up to 10 years in federal prison on each of the destructive device convictions. His sentencing hearing has been set for October 17, 2018.
A federal grand jury returned a superseding indictment charging Barnett with these crimes on June 20, 2018.
According to testimony and evidence presented at trial, Barnett offered a Confidential Source (CS) $10,000 to place improvised explosive bombs inside Target stores along the east coast of the United States. Barnett purchased the bomb components and assembled at least 10 of the destructive devices, which he disguised inside the packaging of common grocery items. He then delivered the devices to the CS with instructions to put them on the shelves of Target stores from New York to Florida. The CS, however, promptly surrendered the destructive devices to authorities and Barnett was arrested on February 14, 2017.
Barnett theorized that the company’s stock value would plunge after the explosions, allowing him to cheaply acquire shares of Target stock before an eventual rebound in prices. Barnett told the source, “If someone has to die so that I can make some money, so be it.”
Federal explosives experts subsequently determined that the resulting fire and explosion from each of the devices would have been capable of causing property damage, serious injury, and death. Searches of Barnett’s house, cellphone, and computer revealed pictures of the grocery items that he had turned into bombs, as well as leftover bomb components and articles describing stock options.
Barnett, a registered sex offender, had been conditionally released from state prison in 2013, following multiple felony convictions for sexual assault, kidnapping, and grand theft. He was also previously convicted of kidnapping in Mississippi.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Florida Department of Law Enforcement, the Marion County Sheriff’s Office, the Florida Department of Corrections - Probation and Parole, and the Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Detroit Man Sentenced to 87 Months for Trafficking in Fentanyl, Heroin, and OxycodoneRead the Press Release
LEXINGTON, Ky. — Vincent S. Edge, 37, of Detroit, was sentenced to 87 months in federal prison, by United States District Judge Danny C. Reeves, for conspiring to distribute fentanyl, heroin, and oxycodone. Edge was also ordered to pay a $2,000 fine.
Edge previously admitted that, in early 2016, he came to the Richmond and Morehead, Kentucky areas to sell fentanyl, heroin, and oxycodone. Edge admitted that he supplied oxycodone to drug dealers in Morehead. Edge also leased an apartment in Richmond and sold fentanyl, heroin, and oxycodone from that location. Law enforcement agents purchased fentanyl, heroin, and oxycodone from Edge, in September of 2016. Edge also recruited other drug dealers from Detroit to live at his Richmond apartment and sell fentanyl, heroin, and oxycodone drugs in the areas. Edge supplied the drugs to local sellers and took the profits back to Detroit. On December 8, 2016, state and federal law enforcement agencies executed a search warrant at the apartment and recovered, drug proceeds, fentanyl, heroin, and oxycodone. Edge was ultimately arrested in Northern Ohio.
Edge pleaded guilty to the federal charge in April 2018.
“This is another example of drug traffickers from larger cities coming to Central Kentucky to profit from selling the illegal drugs that are devastating our community,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “This prosecution should serve as warning to those who look to engage in similar conduct: if you are selling these dangerous drugs and profiting from the suffering and death they cause, no matter where you are from, we will look to prosecute you and place your freedom in jeopardy. We are committed to using all the tools we have to combat this continuing epidemic.”
“I want to commend the work of the DEA and our local law enforcement partners in this case,” said U.S. Attorney Duncan. “The partnerships between federal, state, and local law enforcement are critically important to reducing the presence of these drugs and the overdoses that are engulfing our community.”
Under federal law, Edge must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
United States Attorney Duncan; Darrell Christopher Evans, Special Agent in Charge, DEA; Richard Sanders, Commissioner of the Kentucky State Police; Matt Sparks, Rowan County Sheriff, and Mike Coyle, Madison County Sheriff, jointly made the announcement.
The investigation was conducted by the DEA, KSP, Rowan County Sheriff’s Office, and Madison County Sheriff’s Office, with the assistance of the Appalachian HIDTA. The United States was represented by Assistant United States Attorney Roger W. West.
Delaware man sentenced for cigarette smugglingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Virginia business owner was sentenced today for unlawful cigarette smuggling, First Assistant United States Attorney Randolph J. Bernard announced today.
Charanjit Singh, also known as Tony Chawla, age 61, of Wilmington, Delaware, was sentenced today to 30 months incarceration, and was ordered to pay a $30,000 fine, and ordered to forfeit $14,270,582.00. Singh pled guilty to one count of “Conspiracy to Traffic in Untaxed Cigarettes” in September 2017. Singh admitted to conspiring to profit from the unlawful sale of contraband cigarettes.
Singh is an owner of American Cigarette Outlet, Inc., in Clearbrook, Virginia, which did business as Virginia Cigarette Outlet, Clearbrook Cigarettes, and Discount Cigarettes of King George. Singh admitted to transporting large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. Homeland Security Investigations, the Alcohol and Tobacco Tax and Trade Bureau, the Internal Revenue Service Criminal Investigations, the Frederick County, Virginia Sheriff’s Office, the West Virginia State Police, and the New York City Sheriff's Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Columbus Man Pleads Guilty to Selling Crack Cocaine Near Marshall UniversityRead the Press Release
HUNTINGTON, W.Va. – A Columbus man caught selling crack cocaine within 1000 feet of Marshall University in July 2017 pled guilty today to a federal drug crime, announced United States Attorney Mike Stuart. Shawn Bryson, also known as “Shorty,” 27, entered his guilty plea to distributing crack cocaine within 1000 feet of Marshall University. Stuart commended the work of the Huntington Police Department.
“My office works closely with our law enforcement partners in Huntington including the Huntington Police Department, the Marshall University Police and President Gilbert to ensure the safety of Marshall students,” said United States Attorney Mike Stuart. “Drug dealers should take note. Those putting our young people at risk by peddling dangerous drugs near a school, whether it be a primary, secondary or post-secondary school, will be charged accordingly. Marshall University is a terrific University and a critical asset to the state of West Virginia. Maintaining the safety of its campus and its students is a priority.”
On July 6, 2017, an individual told officers he had just purchased crack cocaine from “Shorty” at 1531 Rear Avenue, Apartment A in Huntington. Officers conducted a search warrant and recovered approximately 33 grams of crack cocaine. As part of the plea agreement, Bryson admitted that he intended to sell that crack cocaine as well.
Bryson faces a minimum of one year and up to forty years in federal prison when he is sentenced on November 13, 2018.
Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
Follow us on Twitter: SDWVNews
###
Clarksburg man sentenced for role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Colton Justice Kallel, of Clarksburg, West Virginia, was sentenced today to 12 months incarceration for his role in a drug distribution operation, United States Attorney Bill Powell announced.
Kallel, age 22, pled guilty to one count of “Distribution of Fentanyl” and one count of “Aiding and Abetting the Distribution of Fentanyl in Proximity of a Protected Location” in March 2018. Kallel admitted to selling fentanyl on July 11, 2017 in Harrison County. He also admitted to selling fentanyl near Clarksburg City Park, on July 31, 2017 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
Senior U.S. District Judge Irene M. Keeley presided.Cape Girardeau Man Sentenced for Possessing Firearm following Stand-off with PoliceRead the Press Release
The United States Attorney's Office announced that JAMES W. MATHENA, age 51, of Cape Girardeau, Missouri, was sentenced today to 210 months in federal prison following his guilty plea to being a previously convicted felon in possession of a firearm. The sentence was imposed by United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officers were dispatched to a residence in Cape Girardeau on December 15, 2017 after Mathena made various threats against his elderly parents. When officers arrived, Mathena barricaded himself inside the residence and refused to come out. After a stand-off lasting nearly three hours, Mathena finally exited the residence and surrendered to authorities. Officers subsequently recovered a shotgun from Mathena’s bedroom in the basement. Mathena was prohibited from possessing firearms under federal law because he is a convicted felon. Mathena’s criminal history included a 1988 felony conviction from the United States District Court for the Western District of Texas for assaulting a federal officer with a dangerous weapon. Mathena also had felony convictions for robbery, assault, distribution of methamphetamine, driving while intoxicated, and unlawful possession of firearms.
This case was investigated by the Cape Girardeau Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jack Koester handled the prosecution for the government.
Broward County Resident Sentenced to More than 17 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
On July 27, 2018, Christopher Brinson, 32, of Broward County, was sentenced to 210 months in prison by U.S. District Court Judge Kenneth A. Marra, after a trial jury convicted him of being a felon unlawfully in possession of a firearm.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
According to the court docket, including evidence introduced at trial, on March 20, 2017, a video broadcast via Facebook live showed Brinson in possession of a firearm. A firearms identification expert was able to determine it was a genuine Glock pistol. On April 20, 2017, Brinson was arrested. At the time of his arrest, Brinson had a cellular phone which contained photographs of him in possession of the Glock pistol on March 20, 2017. Brinson had previously been convicted of several felony offenses and was prohibited from possessing a firearm.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mr. Greenberg commended the investigatory efforts of the ATF, FBI and BSO in this matter. This case was prosecuted by Assistant United States Attorney Anita G. White.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bollinger County Man Sentenced on Drug and Gun ChargesRead the Press Release
The United States Attorney's Office announced that Clinton Jay Reynolds, age 27, of Marble Hill Missouri, was sentenced to 92 months of incarceration for Possession of 50 Grams or More of Methamphetamine with Intent to Distribute and Possession of Firearms by a Felon. Reynolds was also ordered to serve a total of 4 years of supervised release and pay a $200 special assessment. Reynolds appeared before United States District Judge Stephen N. Limbaugh, Jr. on July 30, 2018.
Reynolds had previously pleaded guilty to possessing methamphetamine with intent to distribute and possessing firearms after being convicted of several felony offenses. Reynolds was arrested after the Bollinger County Sheriff’s Department executed a search warrant at his residence near Marble Hill in rural Bollinger County and seized 62 grams of methamphetamine and eight firearms. Reynolds has prior felony convictions for Possession of a Controlled Substance, Burglary Second Degree, Receiving Stolen Property, Felony Theft and felony Resisting Arrest by Fleeing.
This case was investigated by the Bollinger County Sheriff’s Department, the Southeast Missouri Drug Task Force, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Timothy J. Willis handled the prosecution for the Government.
Berkeley County man sentenced to nearly six years for cocaine chargeRead the Press Release
MARTISNBURG, WEST VIRGINIA – Michael Jacque Severe, of Martinsburg, West Virginia, was sentenced today to 71 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Severe, age 34, pled guilty to one count of “Conspiracy to Distribute Cocaine Base” in February 2018. Severe conspired with others to distribute crack cocaine in Berkeley County from April 2015 to February 2017.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Berkeley County man sentenced to 15 years for fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bradley Markley, of Hedgesville, West Virginia, was sentenced today to 180 months incarceration for distributing fentanyl, United States Attorney Bill Powell announced.
“Fentanyl kills. A lethal dose is only two milligrams—about the mass of two grains of salt. Unfortunately, the entrance of fentanyl into the opioid crisis has only exasperated the dangers to our community. The dangers extend to law enforcement who risk their own lives by mere exposure to fentanyl. Our prosecutors have made fentanyl cases a priority, and we will be adding additional resources to combat the increased workload. The dangers to our community are real and our efforts will be unrelenting,” said Powell.
Markley, age 32, pled guilty to one count of “Distribution of Fentanyl and Acetyl Fentanyl” in March 2018. Markley admitted to distributing the drugs in October 2016 in Berkeley County.
Assistant U.S. Attorneys Anna Z. Krasinski and Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for sex offender registry violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gregory Keith Parr, of Martinsburg, West Virginia, was sentenced today to nine months incarceration for a sex offender registration violation, United States Attorney Bill Powell announced.
Parr, age 61, pled guilty to one count of “Failure to Register” in April 2018. Parr, who had previously been convicted of a sex offense in Michigan, admitted to traveling across state lines without updating his sex offender registration, as required by law, in December 2017 in Berkeley County.
This case is 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/.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joshua Neal Krieger, of Hedgesville, West Virginia, was sentenced today to 50 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Krieger, age 30, pled guilty to one count of “Unlawful Transfer of a Firearm” in March 2018. He admitted to selling a machine gun conversion part designed to convert a weapon into a machine gun for $2900 in May 2017 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bennington Man Convicted of Armed RobberyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that John Chinnici, 33, of Bennington, Vermont, was convicted on July 27, 2018, in United States District Court in Burlington, Vermont, following a jury trial. U.S. District Judge Christina Reiss ordered Chinnici to remain in custody after the jury returned its verdict.
According to court records and proceedings, on January 11, 2016, at approximately 12:30 am, two masked men, one of whom carried a handgun, approached two employees of the Martin’s Mobil Mini-Mart in Bennington, Vermont as the employees walked to deposit the store’s night receipts at the drop box of a nearby bank. After demanding the employees hand over the bag containing the money, the robbers ordered the men to lie on the ground. The robbers then ran away. The employees returned to the store and called 911.
Through investigation, the Bennington Police Department determined that Austin Mayhew, 29, of Bennington, was one of the robbers. Mayhew identified Chinnici as the man who committed the robbery with him and as the person who carried the handgun. When interviewed by law enforcement, Chinnici claimed that he was not in Bennington on the night of the robbery; he claimed that he spent the night in East Dover at the home of friends.
Mayhew eventually pleaded guilty in Vermont state court to committing the robbery. He testified at Chinnici’s trial pursuant to a court-ordered grant of immunity. In addition to Mayhew’s testimony, the government presented evidence which rebutted Chinnici’s false alibi. The government also presented evidence from Chinnici’s cell phone, including evidence that his cell phone was in Bennington at the time of the robbery, not in East Dover, texts he exchanged with a former-girlfriend which detailed that he came into money during the night of the robbery, and photos of receipts showing that he sent the former girlfriend nearly $1,000 in the days following the robbery.
United States Attorney Christina E. Nolan commended the efforts of the ATF and the Bennington Police Department in the investigation and prosecution of Chinnici. The prosecution of Chinnici was handled by Assistant U.S. Attorneys Barbara A. Masterson and Joseph R. Perella. Chinnici was represented by Ernest (Bud) Allen.
Chinnici faces a sentence of up to 20 years incarceration, followed by a period of supervised release, restitution, a possible fine, and a mandatory special assessment. Chinnici’s sentence will be determined by the sentencing judge after consultation with the United States Sentencing Guidelines and the factors set forth in 18 U.S.C. § 3553(a).
Bapchule Man Sentenced to 97 Months in Prison for Receiving One Image of Child PornographyRead the Press Release
PHOENIX – Today, Angel Xavier Catha, 21, was sentenced by U.S. District Judge G. Murray Snow to 97 months in prison followed by 20 years of supervised release. Catha had previously pleaded guilty to receipt of child pornography and will be required to register as a sex offender.
Catha admitted to pursuing a sexual relationship with the 13-year-old victim while living on the Gila River Indian Community. Both the victim and Catha are enrolled members of the Gila River Indian Community. Over that period, Catha repeatedly requested that the victim provide him with child pornography. Catha ultimately received one image of child pornography, which was sent via Facebook. Judge Snow increased Catha’s sentence to account for his subsequent sexual abuse of the victim.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-501-PHX-GMS
RELEASE NUMBER: 2018-093_Catha
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
3M Company Agrees to Pay $9.1 Million to Resolve Allegations that It Supplied the United States with Defective Dual-Ended Combat Arms EarplugsRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney for the District of South Carolina Sherri Lydon, in conjunction with the Civil Division of the United States Department of Justice (DOJ), announced today that the 3M Company (3M), headquartered in St. Paul, Minnesota, has agreed to pay $9.1 million to resolve allegations that it knowingly sold dual-ended combat arms earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection devices.
The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency. Specifically, the United States alleged that 3M, and its predecessor, Aearo Technologies, Inc., knew that its Combat Arms Earplugs, Version 2, were too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals. The United States further alleged that 3M did not disclose this design defect to the military.
“Today’s settlement demonstrates our continuing vigilance to protect the men and women serving in the United States military from defective or fraudulent products,” said Acting Assistant Attorney General Chad A. Readler of the Department’s Civil Division. “Government contractors who seek to profit at the expense of our military will face appropriate consequences.”
“Through rigorous enforcement of the False Claims Act, we protect taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Sherri Lydon. “And in this case in particular, we are proud to defend the integrity of our military programs and ensure that our men and women in uniform are adequately protected as they serve our country.”
“Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Properly-made safety equipment, for use by our Soldiers, is vital to our military’s readiness. Our agents will respond robustly to protect the safety of our military.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products, in particular products that could directly impact our service members’ health and welfare. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affect the wellbeing of our troops,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $1,911,000.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the United States Attorney’s Office for the District of South Carolina, with support from the Department of Defense. The settlement was handled by Assistant United States Attorneys Stan Ragsdale and Brook Andrews and DOJ Trial Attorney Brandie Weddle. The case was investigated by Special Agent Jennifer Coleman of the U.S. Army Criminal Investigation Command and Special Agent Gil Rosen of the Defense Criminal Investigative Service.
The case is captioned United States ex rel. Moldex-Metric v. 3M Company, Case No. 3:16-cv-1533-MBS (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
# # #
Friday 27 July 2018
Wilmington Man Receives 210 Month Prison Sentence for Possessing Child PornographyRead the Press Release
WILMINGTON, Del. – A Wilmington, Delaware man was sentenced to 210 months in prison on Wednesday, July 25, 2018, for possessing child pornography he produced himself, announced U.S. Attorney David C. Weiss of the District of Delaware.
Miguel Pagan, 37, pleaded guilty to one count of possessing child pornography on April 25, 2018. U.S. District Judge Gregory M. Sleet of the District of Delaware sentenced Pagan to serve 210 months in prison followed by 10 years of supervised release. According to admissions made as part of his guilty plea, law enforcement found Pagan in possession of child pornography that he produced in his own bedroom using two prepubescent children.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware State Police investigated this case. Assistant U.S. Attorney Graham L. Robinson of the District of Delaware prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Williamson County Man Charged with Bank RobberyRead the Press Release
Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced that today, Arthur W. Bays, 82, of Marion, Illinois, was charged by the United States Attorney in a criminal complaint in United States District Court with one count of bank robbery.
Count 1 of the Complaint charges that on July 26, 2018, in Franklin County, Bays did by force and violence, and by intimidation, take money from the person of another which was in the possession and the care, custody, and control of State Bank of Whittington, located in Benton, Illinois, a financial institution which at the time was insured by the Federal Deposit Insurance Corporation, all in violation of federal law.
Bays had an initial appearance in United States District Court in Benton, Illinois, on July 27, 2018. The Magistrate Judge released Bays on bond pending further proceedings in this matter.
A Criminal Complaint is a charge filed against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
If convicted of Count 1, Bays faces up to 20 years of imprisonment and up to a $250,000 fine.
The investigation in this case was conducted by the Federal Bureau of Investigation,
Benton Police Department, West City Police Department, West Frankfort Police Department, Franklin County Sheriff’s Office, and the Marion Police Department.
Two Trials, Two Convictions for Louisville Heroin Trafficking and Gun OffensesRead the Press Release
LOUISVILLE, Ky. – In two separate federal trials this week, the United States won convictions for heroin trafficking and firearms offenses, announced U.S. Attorney Russell Coleman.
“The Department of Justice will continue to aggressively pursue gun cases and drug trafficking in federal court as a means of reducing violent crime in this community” said United States Attorney Russell Coleman “Our Commonwealth is blessed with able law enforcement partners who share this vision.”
Jamar Garrison of Louisville, Kentucky was convicted yesterday in United States District Court on charges of possession of heroin with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a handgun by a convicted felon. Mr. Garrison had been released on bond for state drug trafficking charges for the last two years when he was arrested after being found in possession of a loaded semiautomatic handgun, a mixture of heroin and fentanyl packaged for sale, several thousand dollars cash, and assorted other narcotics. The follow up investigation revealed that while released on bond on multiple pending felony drug indictments in Jefferson Circuit Court, Garrison had been using vehicles rented in the names of third parties in order to transport and traffic in heroin all over Louisville.
Garrison is a multiple convicted felon with prior convictions for drug trafficking, robbery, felony assault, wanton endangerment, wanton endangerment of a police officer, felony fleeing and evading, and assorted other felony and misdemeanor crimes. He was arrested five times in 2017 while on felony bond for drug trafficking.
Garrison will be sentenced November 1, 2018, and faces a mandatory minimum sentence of 5 years in prison and could receive up to life imprisonment. He could also be fined $2,000,000, and be required to serve no less than 6 years of supervised release. There is no parole in the federal system. Garrison has been detained by U.S. District Court Judge Rebecca Grady Jennings since his May 23, 2018, indictment on federal charges.
This case was prosecuted by Assistant United States Attorneys Erin McKenzie and Marisa J. Ford, and paralegal Brandi Henderson, and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Louisville Metro Police Department, with assistance from the Louisville Metro Intelligence Task Force (LMINTEL).
On July 25, 2017, a jury sitting in United States District Court for the Western District of Kentucky returned a verdict of guilty against Chavon Davis, of Louisville, for knowingly making false statements to federally-licensed firearms dealers in the course of purchasing five firearms. According to the Superseding Indictment, Davis knowingly made material false statements to two separate federally licensed firearms dealers in order to acquire five semiautomatic pistols. The evidence at trial established that Davis bought the firearms so he could them to sell to a convicted felon. Specifically, the Superseding Indictment charged that Davis purchased a .45 caliber semiautomatic pistol from a firearms dealer in Hardin County, Kentucky on May 16, 2016. Later, on May 24, 2016, Davis purchased two .40 caliber semiautomatic pistols and two 9 millimeter semiautomatic pistols from a firearms dealer in Jefferson County, Kentucky. On both occasions, Davis completed the standard ATF Form 4473 which is required anytime a licensed dealer sells a firearm to a purchaser. ATF Form 4473 contains a number of questions that the purchaser of the firearm is required to answer truthfully before the dealer can lawfully transfer the firearm. One of the questions was whether Davis was the actual purchaser of the firearms. On each of the forms, Davis stated that he was the actual purchaser of the firearm. The evidence at trial, however, was that the defendant was “straw-purchasing” the firearms which he sold to a convicted felon and for profit. The evidence at trial established that during the time period from February to May, 2016, Davis purchased a total of 15 semiautomatic pistols, but only possessed two of the pistols when ATF agents interviewed him in May, 2016.
This case was prosecuted by Assistant United States Attorneys Tom Dyke and Corinne Keel, and paralegal Jane Bauer, and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Hardin County Narcotics Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to specifically identify the criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Two Members of Fraud and ID Theft Ring SentencedRead the Press Release
ALEXANDRIA, Va. – Two members of an identity-theft-and-fraud conspiracy were sentenced today for fraudulently entering into apartment leases and opening bank accounts using the personal information of their victims.
According to court documents, Andraliesha Jefferson, 28, of Reno, Nevada, and Robert McCrickard, 56, of Baltimore, Maryland, used counterfeit drivers’ licenses bearing their photographs and the names and identifying information of their victims to enter into apartment leases in Northern Virginia and the Washington, D.C.-metropolitan area. They then used the “new addresses” associated with the leases to receive debit and credit cards from bank accounts they had fraudulently opened, also using victims’ personal information. Acting under the direction of their ringleader, Michael Oginni, of Rockville, Maryland, the conspirators racked up hundreds of thousands of dollars in fraudulent charges for luxury goods and gift cards. They also placed high-interest credit-to-debit transfers in the fraudulently acquired bank accounts, which enabled them to withdraw cash. The conspiracy generated $850,000 of fraudulent transactions in just under two years. The criminal scheme victimized over 50 individuals.
Jefferson was sentenced to three years of probation, a sentence which credited her for time she served in a Virginia detention center. McCrickard was sentenced to 31 months of in prison. Another conspirator, Lacola Nickens, was sentenced last week to a one year in prison. Ringleader Michael Oginni will be sentenced in September.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Laura Fong, Alexander P. Berrang, and Maya D. Song prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-92 (Jefferson), and 1:17-cr-51 (McCrickard).
Texas man sentenced to 225 months imprisonment for conspiracy to distribute cocaine while on federal supervised releaseRead the Press Release
Memphis, TN – A Texas man has been sentenced to 225 months imprisonment for conspiracy to possess with intent to distribute cocaine while on federal supervised release. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in 2016, investigators with the Drug Enforcement Administration investigated a drug trafficking organization distributing multiple kilograms of cocaine in the Western District of Tennessee. Rafael Garza a/k/a "Poppy", 46, was identified as the source of supply for this organization. Utilizing tractor trailers, this organization would ship kilograms of cocaine from Brownsville, Texas to Memphis. Based upon a conservative estimate, this organization was responsible for the distribution of at least 50 kilograms but less than 150 kilograms of cocaine in the Memphis area.
U.S. Attorney D. Michael Dunavant said: "Disruption and dismantlement of drug trafficking organizations is a crucial mission of this office, in order to stop the supply of deadly narcotics into West Tennessee. This sentence demonstrates our commitment to impose significant consequences on such recidivist drug dealers."
Garza pleaded guilty to this offense on April 12, 2018. On July 26, 2018, U.S. Senior District Judge Samuel H. Mays sentenced Garza to 225 months imprisonment, which included a sentence for violation of federal supervised release out of Brownsville for possession with intent to distribute marijuana.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorneys Jerry Kitchen and Michelle Kimbril-Parks prosecuted this case on the government’s behalf.
Superseding Indictment Charges Former Biscayne Park Police Chief and Former Officers with Conspiring to Violate Three Victims’ Civil Rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced the return of a superseding indictment against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest individuals identified as “C.D.,” “E.B.,” and “T.D.,” a 16-year old juvenile.
Atesiano, Dayoub, and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241(Count 1); and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242 (Count 2). Atesiano was also charged with deprivation of E.B.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242 (Count 3). If convicted, Dayoub and Fernandez each face a maximum statutory sentence of 11 years in prison while Atesiano faces a maximum of 12 years. Guillermo Ravelo, another former Biscayne Park Officer, is named in the indictment but not as a defendant. Yesterday, Ravelo pleaded guilty to the same conspiracy charge in violation of Title 18, United States Code, Section 241, as well as a separate, unrelated Civil Rights violation.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest individuals without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Ravelo to arrest C.D. on January 23, 2013 and E.B. on February 26, 2014, in order to falsely charge both with unsolved burglaries despite knowing there was no evidence and no lawful basis to support such charges. The indictment further alleges that Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, in order to falsely charge him with unsolved burglaries despite knowing there was no evidence and no lawful basis to support such charges. Following Atesiano’s instruction, Ravelo, Dayoub, and Fernandez completed multiple arrest affidavits that included false narratives about evidence purporting to support the charges. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and FDLE in this matter. Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace, Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sulphur man sentenced to 5 years and 5 months in prison for storing child pornography onlineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Sulphur man was sentenced Thursday to 65 months in prison for storing child pornography online.
Cameron Deshown Fairley, 28, of Sulphur, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession of child pornography. He was also sentenced to 10 years of supervised release and is required to register as a sex offender. According to the April 25, 2018 guilty plea, Fairley maintained an online data storage account from September 2016 to February 2017 where he possessed images and videos of child pornography. He used the account to access and view child pornography. Some of the images depicted children under the age of 12.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
St. Louis Man Pleads Guilty to Committing Two Bank Robberies while on Parole for Bank RobberyRead the Press Release
St. Louis, MO – David T. McGee, 47, of St. Louis, pled guilty to two counts of committing a bank robbery. He appeared in federal court this morning before U.S. District Judge Audrey G. Fleissig.
According to court documents, on April 17, 2017, McGee entered the Great Southern Bank in Ferguson and slid a piece of paper to the teller stating that she should give him some money. McGee wanted large bills and provided a plastic bag for the teller to put the money in. The teller grabbed a large stack of U.S. Currency and asked if that was enough to which McGee responded yes and left the bank.
On May 8, 2017, McGee entered the Bank of America in St. Charles and handed a teller a plastic bag and a note, which read that he needed straps of $100s, $50s and 20s. The teller gave him the U.S. Currency and McGee left the bank. McGee was on supervised release for a bank robbery in Illinois.
McGee faces up to 20 years imprisonment, a $250,000 fine or both on each count. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Springfield Man Sentenced to 18 Years for Bank Robbery, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his sixth bank robbery and for illegally possessing a firearm.
Anthony Carlton Dunlap, 42, was sentenced by U.S. District Judge Roseann Ketchmark to 18 years in federal prison without parole. Dunlap was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 15, 2017, Dunlap pleaded guilty to one count of bank robbery and one count of being a felon in possession of a firearm.
According to court documents, Dunlap entered Bank of America, 633 W. Kearney St., Springfield, at about 4:30 p.m. on Jan. 3, 2017. Dunlap, wearing his hoodie up covering his head, approached a teller and handed her a piece of paper that said, “stay calm.” Dunlap looked toward his hand that was in his coat pocket, causing the teller to believe he made the gesture to indicate he was armed.
The teller removed cash from her teller drawer and placed it on the counter in front of Dunlap. He then demanded more money, so the teller removed more cash from her teller drawer. Dunlap stuffed the cash into his pockets and left the bank. An audit of the victim teller’s drawer revealed that $3,910 was taken in the robbery.
Dunlap was found a short time later, hiding in the back seat of his girlfriend’s car, which was parked in front of a Springfield residence. As Dunlap was removed from the car, a large amount of loose cash was dragged out with him. Cash was also on the back floor boards of the car. The total amount recovered was $3,910. A loaded Hi Point .40-caliber pistol was also located on the backseat of the car. Dunlap told law enforcement officers that he robbed the bank in order to get money to buy heroin.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Dunlap has five prior felony convictions for five separate bank robberies committed between Nov. 19, 2001, and Feb. 19, 2002.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Slidell Couple Pleads Guilty to Violations of Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRISTOPHER MAZUR, age 34, and REBECCA COMSTOCK, age 36, pleaded guilty today to violations of the Federal Gun Control Act. MAZUR pleaded guilty to one count of possession of a firearm by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1), 922(g)(9), and 924(a)(2). COMSTOCK pleaded guilty to making a false statement to a federally licensed firearms dealer, or a straw purchase, in violation of Title 18, United States code, Sections 922(a)(6), 924(a)(2), and 2.
According to court documents, COMSTOCK falsely stated in paperwork submitted to a federally licensed firearms dealer that she was the actual purchaser of three firearms that were intended for MAZUR. MAZUR could not purchase the firearms for himself because of his previous felony convictions in Louisiana and Mississippi, and because of a previous Louisiana conviction for a misdemeanor crime of domestic violence. In addition to the three guns purchased from the federally licensed firearms dealer, federal agents seized seven firearms and 2,825 rounds of ammunition from MAZUR and COMSTOCK’S residence.
MAZUR and COMSTOCK face as to each count a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
Schenectady Man Arrested for Receipt and Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Robert Kirk, age 35, of Schenectady, New York, appeared yesterday in federal court on charges that he received and distributed child pornography over the internet.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Kirk used an anonymous account on Kik Messenger, an instant messaging application, to receive and distribute child pornography. Kirk also had, on his cell phone, hundreds of image files and videos depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Kirk faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Kirk would be required to register as a sex offender.
Kirk appeared yesterday before United States Magistrate Judge Daniel J. Stewart. Kirk waived his detention hearing and was ordered detained pending further proceedings.
This case is being investigated by HSI, with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Salem Man Pleads Guilty to EscapeRead the Press Release
CONCORD - Liam Delorey, 37, of Salem, pleaded guilty in federal court to escape, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Delorey had been in federal custody since 2017. He was serving a sentence for violating the terms of his supervised release following a federal felony conviction for narcotics distribution. In May of 2018, he was transferred from a Bureau of Prisons facility to a residential reentry center in Manchester, New Hampshire, to start pre-release programming. On June 18, 2018, the defendant signed out of the center to go to work. Although he knew he was required to return by 8:00 p.m. that night, he did not do so. His whereabouts were unknown until he self-surrendered to the U.S. Marshals in Concord, New Hampshire on the evening of June 19, 2018.
Delorey is scheduled to be sentenced on November 8, 2018.
This matter was investigated by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
###
Russian Hacker Sentenced to Nearly 6 Years in Prison in Scheme that Caused $4.1 Million in Losses with Fraudulent Debit CardsRead the Press Release
LOS ANGELES – A Russian national was sentenced today to 70 months in federal prison for hacking into the accounts of two companies and issuing unauthorized debit cards associated with dependent care accounts to conspirators around the world, leading to losses of more than $4 million.
Mikhail Konstantinov Malykhin, 36, an illegal alien who was living in the Park La Brea district of Los Angeles, was sentenced by United States District Judge Dolly M. Gee after admitting to hacking into the accounts and conspiring to use the fraudulent debit cards.
In addition to the 70-month sentence, Judge Gee ordered Malykhin to pay $4,131,731 in restitution. Malykhin has agreed to forfeit approximately $1.3 million in cash and more than $22,000 in gift cards previously seized by FBI agents from Malykhin’s safe deposit boxes, as well as several gold bars, nearly $30,000 that Malykhin sent to a plastic surgery center, and a 1966 Ford Mustang.
Judge Gee today described Malykhin’s offenses as “reprehensible,” noting that he had “caused much pain” and “ruined the lives of many of his victims.”
Malykhin pleaded guilty in 2016 to two felony offenses – conspiracy to use unauthorized access devices (the stolen debit cards) and unauthorized access to a protected computer.
According to court documents, in late 2015 and early 2016, Malykhin used login credentials supplied to him by another hacker to illegally access the online software platform of a Massachusetts company, which other companies used to manage flexible spending accounts and dependent care accounts. Once he illegally accessed the platform, Malykhin reactivated dormant dependent care accounts associated with an Oregon company and issued debit cards from these accounts with limits of up to $5 million. Malykhin also illegally accessed the platform and issued debit cards linked to a Colorado company that later went out of business as the result of the losses suffered through the hack.
Malykhin caused the debit cards to be sent to conspirators around the world, including to people in the United States and Russia, where the cards were used to purchase big-ticket items at retail stores, such as Best Buy and Apple in the Los Angeles area. For his part, Malykhin received cash payments, luxury items, and gift cards obtained when items purchased with the fraudulent debit cards were returned.
Malykhin’s conduct resulted in over $4 million in losses, with the now-defunct Colorado company suffering the bulk of those loses, which had to be shouldered by the Massachusetts company in the wake of the primary victim’s insolvency. As a result of the losses caused by Malykhin, employees of the Oregon and Colorado companies lost their jobs, as well as investments in those small businesses and retirement savings.
Judge Gee today described some of the victim-impact letters submitted to the court as “heart-breaking” and noted the “lasting emotional harm” that Malykhin had caused the victims.
Last year, five local “runners” who used the fraudulent debit cards at retail locations were sentenced to federal prison.
The case against Malykhin was investigated by the Federal Bureau of Investigation.
The case against Malykhin was prosecuted by Assistant United States Attorney Anil J. Antony of the Cyber & Intellectual Property Crimes Section, with assistance provided by Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
Rochester Man Convicted by A Federal Jury of Bank Robbery SentencedRead 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 Joseph W. Peeples, III, 44, of Buffalo, NY, who was convicted following a jury trial of robbing the Chase Bank located at 1 South Clinton Avenue, Rochester, NY, was sentenced to 264 months in prison by Chief Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Melissa M. Marangola and Katelyn Hartford, who handled the prosecution of the case, stated that on January 5, 2017, the defendant robbed the Chase Bank. Peeples was tracked by law enforcement to Binghamton, NY where he was arrested approximately 13 hours later. The defendant left approximately $43,000 in a bathroom at the Trailways Bus Station and $10,000 in a taxi cab. Upon Peeples arrest, law enforcement officers searched his hotel room and found $52,000.The defendant had just been released from federal prison six days prior to robbing the Chase Bank for an unrelated bank robbery. During the trial, Peeples acted as his own attorney. A jury deliberated for under one hour and returned a verdict on March 30, 2018.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Police Department, under the direction of Police Chief Michael Ciminelli.
Revere Men Sentenced for Trafficking OxycodoneRead the Press Release
BOSTON – A father and son from Revere were sentenced yesterday in federal court in Boston for trafficking oxycodone.
Mario Scata, 71, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years in prison and two years of supervised release. His son, Manuele Scata, 45, was sentenced by Judge O’Toole to eight years and six months in prison and three years of supervised release. In December 2017, Mario Scata pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and one count of possession with intent to distribute oxycodone. In February 2018, Manuele Scata pleaded guilty to conspiracy to distribute oxycodone, possession with intent to distribute oxycodone, and use of a firearm during and in relation to a drug trafficking offense.
In 2014 and 2015, agents observed foot and vehicle traffic consistent with street-level drug sales coming and going from the Scata home and from Manuele Scata’s business, D & M Auto Doctor, on Bennington Street in East Boston. While investigating the Scatas’ oxycodone trafficking, Scatas’ pill supplier, Bregu, was identified through surveillance and phone analysis. After obtaining a search warrant to track the precise location of Bregu’s phone, it was determined that every two-to-three weeks, Bregu drove his vehicle from Staten Island to Revere or East Boston, met with one or both of the Scatas, and then returned to Staten Island.
On July 16, 2015, a series of search warrants were executed after tracking Bregu’s phone from Staten Island to East Boston and then watching as Bregu met with Mario and Manuele Scata at D & M Auto Doctor. During the searches, a sophisticated hidden compartment was discovered in Bregu’s vehicle, which contained $37,800. In addition, approximately 1,900 oxycodone pills, a loaded firearm, and a machete were recovered from Manuele Scata’s vehicle and additional oxycodone pills, a hand-written drug ledger, and nearly $12,000 were recovered from the Scatas’ home.
On June 8, 2018, Bregu was sentenced to six years in prison and three years of supervised release after being convicted of conspiracy to possess with intent to distribute and to distribute oxycodone.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Revere Police Chief James Guido; Quincy Police Chief Paul Keenan; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys Christopher Pohl of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Redfield Man Sentenced to 210 Months in Prison for Drug, Weapons ChargesRead the Press Release
DES MOINES, Iowa – David James Lister, age 53, formerly of Redfield, Iowa, was sentenced on July 26, 2018, by United States District Judge Rebecca Goodgame Ebinger to 210 months in prison for charges related to the possession of methamphetamine with intent to distribute and the unlawful possession of firearms, announced United States Attorney Marc Krickbaum.
In August of 2016, law enforcement made two undercover purchases of methamphetamine from David Lister at his apartment in Redfield, Iowa. A search warrant was executed at the residence on August 23, 2016, where approximately 1.5 pounds of methamphetamine was discovered in Lister’s safe. Also seized from the safe was over $2,000 in currency, which Lister has admitted came from the sale of methamphetamine. Lister consented to search of a nearby storage facility, which resulted in the seizure of numerous firearms. Lister acknowledged being a multi-pound methamphetamine dealer, indicating that he typically would purchase 2 pounds of meth for $20,000 from his supplier every two weeks, and then distribute the drugs to 12 to 15 customers in the Redfield area. Lister also stated that the firearms in the storage unit were received in trade for methamphetamine.
This matter was investigated by the Des Moines Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Recidivist Securities Fraudster Charged with Multi-million Dollar Stock Manipulation SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Howard M. Appel, 57, of Wayne, Pennsylvania, was charged today in a criminal information with one count of conspiracy to commit securities fraud.
The information alleges that Appel—a former licensed stockbroker with two prior securities-fraud related convictions—secretly acquired large blocks of stock in publicly traded companies, including Virtual Piggy, Inc. (ticker symbol “VPIG”), and Red Mountain Resources, Inc. (ticker symbol “RDMP”), to manipulate the market in those stocks. As alleged, Appel acquired title to the shares in the names of nominees in order to hide his ownership block from investors and made between $3,000,000 and $4,000,000 from his scheme. Using nominee accounts was necessary because he previously lost his license and was barred by the Financial Industry Regulatory Authority (“FINRA”) from selling securities or associating with any member firm.
The information further alleges that Appel and his co-schemers manipulated the stock price by taking numerous actions that were hidden from investors and security regulators including: working as a paid “consultant” to recruit investors, raise capital, and get the companies running; engaging in coordinated buying and selling, which he closely monitored, to raise the share price; and preventing co-conspirators from selling their shares without his permission. The information further alleges that Appel encouraged unwitting investors to buy large blocks of stock by touting the companies’ supposed impending success while, at the same time, selling off shares from his nominee accounts—sometimes to those same investors. Appel also allegedly traded on inside information that he obtained as a result of his “consulting” work for the companies, including the status of the companies’ efforts to get listed on NASDAQ. As alleged, none of these facts was disclosed to the investing public in any of the public filings the company and Appel were required to make.
Appel faces a maximum sentence of five years’ incarceration, a three-year period of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greatest, and a $100 special assessment.
“As alleged, Appel orchestrated an end run around his FINRA bar by conspiring with others, at least one of whom was a licensed stockbroker, to use nominee accounts to manipulate the market and turn an illegal multi-million dollar profit,” said U.S. Attorney McSwain. “Apparently undeterred, this habitual fraudster once again used his market know-how to further his own self-interest and to violate the law. The efforts of our Office and the Securities and Exchange Commission’s New York Office demonstrate our steadfast commitment to using all of the tools at our disposal—both civil and criminal—to enforce the federal securities laws.”
The criminal case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe. The parallel civil enforcement proceeding was filed by the Securities and Exchange Commission’s New York Regional Office, under the direction of Mark P. Berger.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty
Rankin County Man Sentenced to 5 Years in Federal Prison for Cocaine ConspiracyRead the Press Release
Jackson, Miss. – Leon Brown, 51, of Rankin County, was sentenced yesterday by Chief U.S. District Judge Daniel P. Jordan III to 60 months in federal prison, followed by four years of supervised release and a $1,500 fine, for conspiracy to possess with the intent to distribute more than 500 grams of cocaine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
This case is the result of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed "Rock Bottom," which began as an operation targeting illegal narcotics distribution in the central Mississippi area. During the investigation, agents intercepted telephone calls wherein Brown was distributing kilogram amounts of cocaine. Based on his role in the conspiracy, Brown was responsible for as much as 15 kilograms of cocaine.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from: the Hinds County Sheriff’s Office, the Ridgeland Police Department, the Jackson Police Department, the U.S. Marshals Service, the Federal Bureau of Investigation, the Mississippi Highway Patrol, the Madison County Sheriff’s Office, the Brandon Police Department, the Rankin County Sheriff’s Office, the Mississippi Department of Corrections, the Pearl Police Department, the Flowood Police Department, the Bureau of Customs and Border Patrol, and the DEA Houston Field Division. The case was prosecuted by Assistant United States Attorney Chris Wansley.
Postal Service Employee and His Half-Brother Face Charges in Scheme that Stole nearly $240,000 from USPS TrucksRead the Press Release
LOS ANGELES – A United States Postal Service employee and his half-brother were arraigned this morning after being indicted by a federal grand jury on charges of participating in a conspiracy that caused nearly a quarter million dollars in losses in two armed robberies and the burglary of USPS trucks carrying cash.
William Crosby, 31, the USPS employee, and Myron Crosby, 27, both of Inglewood, were named in a four-count indictment filed on Tuesday. At today’s arraignment, both men pleaded not guilty and were ordered to stand trial on September 18.
The Crosbys allegedly participated in the armed robbery of a USPS truck driver on March 1 after the vehicle was forced to stop on an off-ramp of the Harbor Freeway. The indictment also alleges that William Crosby participated in the February 1 armed robbery of a Postal Service driver, as well as the burglary of a Postal Service truck on August 1, 2017.
As a former supervisor, William Crosby knew when the USPS transported cash generated from the sale of money orders and USPS merchandise – information that is not known to all Postal Service employees, according to the indictment, which alleges that the burglary and two armed robberies caused cash losses of $238,457.
According to the indictment:
-
On August 1, 2017, William Crosby told unknown co-conspirators that a Postal Service truck carrying a large amount of cash was on the loading dock at the Dockweiler Post Office in South Los Angeles. A man wearing a Postal Service shirt walked onto the loading dock and stole a container inside the truck that contained more than $128,000 in cash. About a month after this burglary, Myron Crosby allegedly used Instagram to send his half-brother a photo of stacks of $100, $50 and $20 bills with the caption “the count.”
-
On February 1, William Crosby, then assigned to the Wagner Post Office in Los Angeles, provided information to unknown co-conspirators that a USPS truck carrying cash was leaving the facility. During an incident in which William Crosby acted as a lookout, a minivan blocked the USPS truck just outside the Wagner Post Office, a man threatened the truck driver at gunpoint, and the robber stole over $37,000 in cash.
-
On March 1, William Crosby again acted as a source of information and a lookout in a robbery of a USPS truck that departed from the Dockweiler Post Office. Myron Crosby allegedly rented a Mercedes SUV and used that vehicle to box in the truck when it exited the southbound 110 Freeway at Slauson Avenue, which allowed another unidentified man to brandish a gun and steal over $72,000 in cash.
The indictment charges both Crosbys with conspiracy and robbery of United States property in relation to the March 1 incident. William Crosby is additionally charged with theft of government property and an additional count of robbery of United States property.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted of the crimes alleged in the indictment, William Crosby would face a statutory maximum sentence of 65 years in federal prison, and Myron Crosby would face up to 30 years in prison for the conspiracy count.
The case is being investigated by the United States Postal Inspection Service and the United States Secret Service.
The case is being prosecuted by Assistant United States Attorney Thomas Rybarczyk of the Public Corruption and Civil Rights Section.
-
Olton Man Admits to Enticement of a MinorRead the Press Release
LUBBOCK, Texas — Jimmy Kit Fields, 37, of Olton, Texas, appeared today in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Fields faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release. Fields has been in custody since his arrest on June 15, 2018, and will remain in custody pending sentencing.
According to the plea agreement factual resume filed in the case, in March 2018, Fields gave Jane Doe, a 13-year-old minor, a cell phone. Jane Doe’s father had suspected an inappropriate relationship between his 13-year-old daughter and Fields, and reported the incident to the Roosevelt County Sheriff’s Office (RCSO) in New Mexico. The RCSO conducted a search on the contents of the cell phone given to Doe by Fields, but were unable to find any evidence of a crime.
On May 30, 2018, the RCSO responded to a call to investigate a report that Doe was missing. Doe’s parents believed their daughter may be trying to meet with Fields, and believed she had been communicating with him on her laptop computer. Doe later returned to the residence and provided the RCSO the password to her Facebook account.
A review of Doe’s Facebook account by the RCSO revealed Fields had numerous sexually explicit conversations with Doe since May 29, 2018, and leading up to their contact the following morning at 1:00 a.m. During that contact, Fields provided alcohol to Doe during their encounter. In the factual resume, Fields admitted to having sexual contact with Doe on four occasions.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Roosevelt County Sheriff’s Office (RCSO), the Lamb County Sheriff’s Office, the Federal Bureau of Investigation, and the Department of Homeland Security, investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
# # #
Okmulgee Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brett Wayne Pigeon, age 32, of Okmulgee, Oklahoma, pled guilty to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about March 23, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Charles Daly, 12 gauge pump action shotgun, serial number 950658, which had been shipped and transported in interstate commerce.The charges arose from an investigation by the Okmulgee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Nine Defendants from Ohio Arrested for Gun TraffickingRead 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 Deonte “Terry” Cooper, 23, Ricky Turner, 48, Argentis Albino Herrera, 24, Diones Bowens, 22, Shane Shumaker, 31, Victoria Orlando, 36, Vicky Hoffstetter, 37, Koree Runyan, 24, and Jenna Ann Redding, 31, all of Ashtabula, Ohio, were arrested and charged by criminal complaint with conspiracy to traffic in firearms. The charge carries a maximum penalty of five years in prison, and a 250,000 fine.
Assistant U.S. Attorney Emmanuel O. Ulubiyo, who is handling the case, stated that
according to the complaint, in November 2017, defendant Herrera purchased 29 firearms in Ashtabula, Ohio. On March 23, 2018, one of those firearms, a Glock pistol, was recovered in Buffalo, NY.In April and May of 2018, some of the defendants purchased guns for Robert L. Williams, Jr., who resides in Buffalo and who himself has been previously charged with firearms trafficking. Those individuals include:
• Defendant Bowens; who purchased 12 firearms for Williams from Gun Brothers, in Eastlake, Ohio;
• Defendant Shumaker; who purchased 14 firearms for Williams from Point Blank Range & Gun Shop, in Mentor, Ohio;
• Defendant Orlando; who purchased 16 firearms for Williams from Excalibur Outdoors LLC, in Circleville, Ohio;
• Defendant Hoffstetter; who purchased 11 firearms for Williams in Eastlake, Ohio;
• Defendant Runyan; who purchased 10 firearms for Williams in Perry, Ohio; and
• Defendant Redding; who purchased eight firearms for Williams from MGA Arms, in Perry, Ohio.All told, the defendants are accused of illegally purchasing a total of 100 firearms. 10 of those firearms have been recovered in Buffalo, and another firearm was recovered in Youngstown, Ohio.
In connection with the purchase of these firearms, defendants Cooper, Turner, Herrera, Bowens, Shumaker, Orlando, Hofstetter, Runyan, and Redding falsely represented on an ATF Form 4473 that they were the actual purchaser of the firearm, when, in fact, the defendants purchased the firearms for Williams and Deonte Cooper.
Defendants Herrera, Runyan, Hoffstetter, Shumaker, Orlando, and Cooper were arraigned this morning before U.S. Magistrate Judge Michael J. Roemer. All defendants, except for Orlando, were released on conditions. Defendant Orlando is being held pending a detention hearing on August 6, 2018 at 9:30 a.m.
The criminal complaint is the result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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.
Nigerian Nationals Sentenced, Face Deportation Proceedings in Bank Fraud, Counterfeit Passport SchemeRead the Press Release
PROVIDENCE, RI – Two Nigerian nationals who participated in a large-scale bank fraud and counterfeit passport scheme, with an intended loss of more than $1.2 million dollars, were sentenced today to 13 months in federal prison, announced United States Attorney Stephen G. Dambruch and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
Olugboyega Akinloye Fasanya, 36, of Woonsocket and Anthony Chidozie Ezike, 36, of Pawtucket, previously admitted to the Court that they participated in a scheme to defraud banks in Rhode Island and Massachusetts by acquiring and altering lawfully passed checks between commercial entities. The checks were altered to be made out to aliases used by Fasanya, Ezike and others, and deposited into bank accounts opened using the aliases. The accounts were opened using counterfeit passports from Nigeria, Ghana and South Africa as forms of identification. The funds were removed from the accounts prior to the fraud being detected by the financial institutions.
According to information presented to the Court, participants in the scheme deposited fraudulent checks and wires totaling approximately $1,267,000 and successfully obtained approximately $487,000 through withdrawals and debit purchases.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Fasanya and Ezike to serve 3 years supervised release upon completion of their terms of incarceration. Additionally, Fasanya was ordered to pay restitution in the amount of $379,362 and Ezike was ordered to pay restitution in the amount of $228,730 to the banks they defrauded.
The U.S. Sentencing Guidelines range of imprisonment in the matter of the United States of America v. Olugboyega Akinloye Fasanya is 18-24 months. The government recommended the court impose a sentence of 21 months in prison. The U.S. Sentencing Guidelines range of imprisonment in the matter of the United States of America v. Anthony Chidozie Ezike is 21-27 months. The government recommended the court impose a sentence of 13 months in prison.
Fasanya and Ezike face deportation proceedings upon completion of their term of incarceration.
The case was prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations with the assistance of U.S. Customs and Border Protection, and the Woonsocket, Pawtucket and Warwick Police Departments.
###
Nigerian National Sentenced to 14 Years in Federal Prison for Fraud and Money Laundering SchemesRead the Press Release
In Austin today, a federal judge sentenced 42-year-old Nigerian National and Canadian resident Ochuko Sylvester Eruotor to 168 months in federal prison for his leadership role in multi-million dollar fraud and money laundering schemes, announced United States Attorney John F. Bash and Special Agent in Charge Shane M. Folden, Homeland Security Investigations (HSI), San Antonio Division; Special Agent in Charge Richard D. Goss, Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; and, Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service (USPIS), Houston Division.
In addition to the prison term, United States District Judge Sam Sparks ordered Eruotor to pay restitution in the amount of $1,672,805.51 and be placed under supervised release for a period of three years after completing his prison term.
“If you are a foreign national contemplating defrauding vulnerable Americans from abroad, know this: We will identify you, find you, bring you here, prosecute you, and punish you. Your location abroad will not save you,” said U.S. Attorney John F. Bash.
In December 2017, Eruotor was extradited from Germany to the United States after being arrested with assistance from Interpol. On February 1, 2018, Eruotor pleaded guilty to one count of conspiracy to commit money laundering in furtherance of the fraudulent schemes.
Court documents showed that this investigation targeted a money laundering network that laundered the proceeds of various fraud schemes perpetrated against U.S. victims by scammers based in Canada, Nigeria, and the United States. The schemes included: “grandson-in-jail” frauds over the phone targeting elderly victims; fake investment scams; business email compromise scams; Stolen Identity Refund Fraud (SIRF) tax filing scams; and, romance victim scams.
The money launderers opened bank accounts, sometimes using fraudulent passports in false names, or hired others to open bank accounts in order to facilitate their scheme. Those U.S.-based bank accounts would receive the fraudulently obtained funds from the victims. The U.S.-based conspirators quickly withdrew the money from the bank accounts with a portion of the fraud proceeds kept as a fee. Then the remainder of the funds were sent to Canada or Nigeria. To date, law enforcement has identified in excess of $3.5 million dollars of fraud proceeds from hundreds of victims laundered by the conspiracy.
“Financial crimes and identity theft have a devastating effect on the victims and our financial institutions. HSI and its enforcement partners will continue to do everything possible to stop this kind of fraud,” said Shane Folden, Special Agent in Charge for HSI San Antonio. “The defendant exploited people for his own personal gain.”
“The Postal Inspection Service takes it very seriously when the U.S. Mail is used to defraud innocent American citizens, especially our elderly. The sentence handed down today is the result of our ongoing mission to prosecute those who commit these types of fraud schemes. We would like to thank all of the other agencies that worked so diligently to bring justice to the victims of this criminal enterprise,” said USPIS Inspector in Charge Adrian Gonzalez.
Eruotor is the eighth defendant to be convicted and sentenced to federal prison as a result of this investigation. Other prison terms handed down range from ten months to 108 months.
Agents with HSI, IRS-CI, and UPSIS investigated this case. The U.S. Marshals Service and D.O.J.’s Office of International Affairs provided valuable assistance with respect to the extradition. Assistant U.S. Attorney Michael C. Galdo prosecuted this case on behalf of the Government.
Nigerian Man Sentenced to Federal Prison for Sweepstakes SchemeRead the Press Release
LOUISVILLE, Ky. – United States District Court Chief Judge Joseph H. McKinley, Jr. sentenced Kingsley I. Ekpendu, a Nigerian national, to 15 months in prison yesterday for his participation in a sweepstakes scheme that resulted in over 50 victims sending him cash in the mail, announced United States Attorney Russell M. Coleman.
Ekpendu, 42, was charged in an indictment and pleaded guilty to three counts of mail fraud. As part of the plea agreement, Ekpendu, who is a United States Permanent Resident, agreed to his removal from the United States after the completion of his 15-month prison sentence. Chief Judge McKinley also ordered Ekpendu to pay $257,916.15 in restitution to victims of the scheme.
According to the plea agreement, from on or about February 22, 2016, through October 4, 2017, Ekpendu participated in a scheme to defraud victims by making them believe they had won a sweepstakes or lottery. Ekpendu and others mailed letters to potential victims around the nation. Each letter stated the recipient had won a lottery or sweepstakes prize, listed a phone number for a “claims manager,” and included a check for several thousand dollars to cover “insurance and legal fees.” When the victim called the “claims manager,” the “claims manager” would tell the victim that in order to receive the prize, the victim needed to deposit the check and send several thousand dollars cash to an address in Louisville, Kentucky. The defendant would then pick up the parcels containing cash from the Louisville address, keeping a share of the cash for himself and sending the remainder to other participants in the scheme. Ultimately, the checks Ekpendu and others mailed to the victims were fraudulent, but the victims would not realize this until after they had sent cash to the Louisville address and it was too late for them to recover the funds.
Assistant United States Attorney Amanda Gregory prosecuted the case. The United States Postal Inspection Service and the Louisville Metro Police Department conducted the investigation.