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Friday 27 July 2018
Montgomery County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Frank A. Dunn, Jr., age 60, of Burtonsville and Silver Spring, Maryland, pleaded guilty today to possession of child pornography.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Stephen Niemczak, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the statement of facts that is part of Dunn’s plea agreement, on May 31, 2017, law enforcement executed search warrants at Dunn’s residences in Burtonsville and Silver Spring and recovered more than 14,000 images and 285 videos of children engaged in sexually explicit conduct. The images and videos included approximately 1,123 files involving minors identified as victims of child pornography by the National Center for Missing and Exploited Children, files depicting the abuse of infants and toddlers, and files depicting sadomasochism or violence against children.
Dunn also admitted that he distributed child pornography over the Internet from his Burtonsville residence using peer-to-peer file sharing software. Between April 2016 and August 2016, an undercover law enforcement officer downloaded approximately 500 images and 15 videos that Dunn made available for sharing over the Internet.
As part of his plea agreement, Dunn must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Dunn and the government have agreed that if the Court accepts the plea agreement, Dunn will be sentenced to between four and nine years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for November 14, 2018 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the HHS-OIG and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Joseph Baldwin, who are prosecuting the federal case.
Man Sentenced to Prison for Trafficking Cocaine through MailRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to six years in prison for using the United States Postal Service to traffic multiple kilograms of cocaine.
According to court documents, David T. Coffey, 26, distributed between five and 15 kilograms of cocaine from Texas into the Eastern District of Virginia. For two years, from 2015 to December 2017, Coffey received multiple shipments of cocaine from another individual in Texas, distributed the drug throughout the Virginia, and sent bulk shipments of cash back to Texas. When he was arrested, law enforcement found two kilograms of cocaine and $4,000 in cash in his possession.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, 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. Special Assistant U.S. Attorneys Troy A. Edwards, Jr. and Speare Hodges, and Assistant U.S. Attorney Mary K. Daly 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. 1:18-cr-64.
Man Sentenced to over Twenty-Seven Years in Federal Prison for Heroin DistributionRead the Press Release
A man who was involved in heroin distribution was sentenced on July 25, 2018, to more than 27 years in federal prison.
Donald Johnson also known as “Scony”, age 52, most recently from Cedar Rapids, and originally from Chicago, Illinois, received the prison term after a March 12, 2018, guilty plea to a three-count Information charging two counts of distribution of heroin causing serious bodily injury, and one count of distribution of heroin causing death. Johnson’s has been selling heroin in and around Cedar Rapids since at least 2015. Johnson received gram quantities of heroin, and broke them into smaller quantities for resale purposes. Johnson was fronted the drugs for resale on multiple occasions and had more than one supplier of heroin during his drug dealing activities. Johnson’s heroin distribution resulted in two victims suffering overdoses. Both received attention from emergency responders and were transported to the hospital where they each were revived by medical personnel. One of these victims later died from a second overdose after Johnson sold her drugs.
Johnson was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 325 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation and the Drug Enforcement Administration Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-cr-97.
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Lexington Couple Sentenced for Drug Trafficking, Firearm OffensesRead the Press Release
LEXINGTON, Ky. — Brandi Stamper, 30, of Lexington, was sentenced yesterday to 15 years in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiring to distribute more than 40 grams of fentanyl, more than an ounce of crack cocaine, and more than half a kilo of cocaine. Stamper was also sentenced for being a felon in possession of firearms and for possessing a firearm in furtherance of her drug trafficking crime.
On Monday, Stamper’s co-defendant, Michael D. Jackson, 37, was sentenced to 25 years in federal prison after he pleaded guilty to the charges. Jackson’s convictions, combined with his criminal record, qualified him as both an Armed Career Criminal and Career Offender.
Jackson and Stamper previously admitted that, in early 2017, members of the Lexington Police Department (LPD), Narcotics Unit began an investigation into the residence they shared. The residence was located on Norway Street, near Lafayette High School. During the investigation, LPD stopped and searched Jackson’s vehicle, discovering a 9 mm firearm and large quantities of drugs. LPD detectives also executed a search on their residence where Stamper was located. LPD located quantities of a fentanyl mixture and cocaine, more than $80,000 in cash, a loaded Taurus handgun, a loaded Glock semi-automatic pistol, a loaded Cobra semi-automatic pistol, which was determined to have been stolen, and a vehicle that had been purchased with proceeds from Jackson and Stamper ’s drug trafficking.
Jackson admitted that he had prior drug trafficking convictions in Fayette Circuit Court. Stamper also admitted that she had prior felony convictions for Trafficking in Cocaine and Possession of Cocaine in Fayette Circuit Court. Jackson and Stamper pleaded guilty to these federal charges in April 2018.
“The Defendants’ drug trafficking activities, possession of firearms, and past criminal histories have led to this result,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The sentences imposed should serve as warning to those who engage in similar criminal activities. If you illegally possess firearms, particularly if you are engaged in drug trafficking, you are putting yourself at risk for a substantial stay in federal prison.”
“I want to commend the work of the ATF and the Lexington Police Department on this investigation and prosecution,” said U.S. Attorney Duncan. “The partnership between federal, state, and local law enforcement is vitally important in preventing violent crime and reducing the danger caused by drug trafficking activities.”
Under federal law, Jackson and Stamper must serve 85 percent of their respective prison sentences. Upon release, Jackson and Stamper will both be under the supervision of the United States Probation Office for eight years.
United States Attorney Duncan; Stuart Lowery, Special Agent in Charge, ATF; and Chief Lawrence Weathers of the Lexington Police Department, jointly made the announcement.
The investigation was conducted by the ATF and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Lewiston Man Indicted for Bank RobberyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Keith Phillips, 57, of Lewiston, Maine, was charged by indictment in U.S. District Court with bank robbery.
According to court records, on June 6, 2018, Phillips entered Androscoggin Bank in Lewiston, approached a teller, passed a note that contained a demand for money and a threat of a gun, and absconded with $2,000.
If convicted, Phillips faces up to 20 years in prison and a $250,000 fine.
The case was investigated by the Lewiston Police Department; the FBI; the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Portland, South Portland, and Lewiston Police Departments; and the Central Maine Violent Crime Task Force.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Lake Charles woman sentenced to 22 months in prison for stealing more than $332,000 from law firmRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Lake Charles law firm employee was sentenced Thursday to one year and 10 months in prison for stealing more than $332,000 from the firm.
Pamela Ann Fayko, 54, of Lake Charles, was sentenced by U.S. District Judge Dee D. Drell on one count of wire fraud. She was also sentenced to three years of supervised release and was ordered to pay $332,110 restitution. According to the February 9, 2018 guilty plea, Fayko worked for a Lake Charles law firm as a bookkeeper and office manager from 2008 to 2016. As part of her job duties, she paid all the bills with a checkbook and had access to the company credit card. From 2011 to 2016, Fayko wrote fraudulent checks and made fraudulent purchases with the credit card, which cost the firm $332,110.30.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Kenner Man Sentenced to Arson and Possessing a Destructive DeviceRead the Press Release
U.S. Attorney Duane A. Evans announced that RYAN SCOTT, age 40, of Kenner, was sentenced today after previously pleading guilty to one count of federal arson and one count of weapon violations.
U.S. District Judge Lance M. Africk sentenced SCOTT to 120 months incarceration as to each count, to run concurrently, to be followed by three years of supervised release.
According to court documents, SCOTT set fire to an apartment building in LaPlace, Louisiana, on August 13, 2017, in violation of Title 18, United States Code, Section 844(i). SCOTT also possessed a destructive device, a Molotov cocktail, in violation of Title 26, United States Code, Section 5861(d), on the same date. SCOTT threw the destructive device at a vehicle in Kenner, Louisiana, causing a fire.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Fire Marshal, the Kenner Police Department, and the Sheriff’s Office for St. John the Baptist Parish in investigating this matter. The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Myles Ranier.
Kansas City Area Laboratory Owner Convicted of Illegally Storing Hazardous WasteRead the Press Release
Yesterday, a federal judge found Ahmed el-Sherif, the owner, operator, and radiation safety officer for Beta Chem Laboratory in Lenexa, Kansas, guilty of illegally storing hazardous waste in violation of the Resource Conservation and Recovery Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Stephen R. McAllister for the District of Kansas, and Jessica Taylor, Director of the Criminal Investigation Division of the U.S. Environmental Protection Agency (EPA).
The Honorable Julie A. Robinson issued a written verdict following the trial, which took place in February 2018. El-Sherif wanted, and was permitted, to waive his right to a jury trial and the case was heard by Judge Robinson in what is known as a “bench trial.”
El-Sherif, a trained chemist of Leawood, Kansas, started Beta Chem in the mid-1990s after having worked at several other radioactive synthesis laboratories. He used radioactive Carbon-14 and solvents in his operation, under license by the Kansas Department of Health and Environment (KDHE). KDHE has assumed regulatory authority for these purposes from the U.S. Nuclear Regulatory Commission under the Atomic Energy Act.
After Beta Chem was unable to provide KDHE with the required financial assurances regarding decommissioning the lab in the event that it was closed, KDHE inspected Beta Chem and discovered extensive radioactive contamination throughout the laboratory, including some parts of the lab with levels so high their instruments could not accurately read them. The radioactive contamination extended to the laboratory furniture, the equipment, including refrigerators, and containers of chemicals that were supposed to be non-radioactive. The next day, KDHE issued an Emergency Order of Suspension of License.
EPA conducted a hazardous waste inspection the same month, and subsequently notified el-Sherif of hazardous waste violations under the Resource Conservation and Recovery Act (RCRA). EPA also informed el-Sherif of his legal obligation to properly manage hazardous waste under RCRA. During the ensuing years, KDHE communicated with el-Sherif about the radioactive contamination at Beta Chem and they entered into a consent agreement in which he agreed to come up with a plan to remediate and dispose of the radioactive waste. While he engaged a number of consultants, el-Sherif never took any action to actually clean up the lab.
On October 4, 2013, after issuing an Emergency Order to Seize and Secure Radioactive Materials, KDHE took control of Beta Chem and secured the facility. EPA’s Criminal Investigation Division, assisted by the Federal Bureau of Investigation, executed a search warrant at Beta Chem on January 22, 2014, where agents discovered numerous containers containing hazardous wastes and contaminated with radiation. EPA determined there to be 1,138 containers at the lab, of which 886 had intact manufacturer labels with no handwriting, which showed many of those to be hazardous. The other containers were field tested for hazardous characteristics before being disposed of. In total, EPA determined there to be over two hundred pounds of hazardous waste, some of which was acute hazardous waste. All of the containers tested were radioactive, and forty-five percent of the contents tested were radioactive.
EPA’s Superfund program spent over $760,000 to remove and dispose of the hazardous waste.
“The public expects and deserves that those in the business of using dangerous radioactive materials do so in compliance with law,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “This defendant breached that trust, deliberately disobeyed the law, and ignored requests by KDHE and EPA to bring his laboratory into compliance with statutes and regulations designed to protect the public and the environment.”
“For years, the defendant knowingly stored hazardous waste with no regard to the serious public health and environmental dangers it posed,” said Special Agent in Charge of EPA’s criminal enforcement program for the EPA Regions covering Kansas Jeff Martinez. “Even when told to stop his dangerous practice, Mr. el-Sherif continued to ignore the risks. Yesterday’s guilty verdict should send a clear message that EPA will hold accountable those who willfully violate the law.”
Acting Assistant Attorney General Wood and U.S. Attorney McAllister thanked the U.S. EPA and the FBI for their work in this investigation. This case is being prosecuted by the Environmental Crimes Section of the Department of Justice. Senior Counsel Krishna S. Dighe and Trial Attorney John E. Arbab with the Department of Justice’s Environmental Crimes Section in Washington, D.C., aided by Assistant U.S. Attorney Anthony Mattivi, are in charge of the prosecution.
Justice Department Announces Resolution with Swiss Financial and Asset Management Firm Mirelis Holding S.A.Read the Press Release
The Department of Justice announced today that Swiss-based Mirelis Holding S.A. reached a resolution with the Tax Division.
“The agreement reached today demonstrates the Department’s resolve toward ending the practice of using Swiss bank accounts to evade one’s taxes,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The Department will continue to pursue culpable banks and asset management and investment advisory firms that assist U.S. clients in their concealment of assets and the evasion of their U.S. tax obligations.”
According to the terms of the non-prosecution agreement signed today, Mirelis Holding S.A. (formerly known as Mirelis InvestTrust S.A.) agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts, and pay $10.245 million to the United States, in return for the Department’s agreement not to prosecute this entity for tax-related criminal offenses.
Mirelis operated as a Geneva-based securities trading institution licensed by the Swiss Financial Market Supervisory Authority (“FINMA”). Mirelis was established in 1997 to provide independent portfolio and asset management services following the sale of a minority ownership interest held by Mirelis’s controlling family and associates in Société Bancaire Julius Baer S.A. After its establishment, Mirelis was initially permitted to offer its independent portfolio and asset management services to certain clients of the Geneva branch of Bank Julius Baer & Co. Ltd (which was formerly Société Bancaire Julius Baer S.A.) with whom the employees or officers of Mirelis had a previous relationship. The assets of clients who accepted the offer of Mirelis’s asset management services remained custodied at the Geneva branch of Bank Julius Baer & Co. Ltd. (“Julius Baer”), which has entered into a deferred prosecution agreement with the Department of Justice. In addition to providing services to individuals and entities based in Switzerland, at all relevant times, Mirelis provided custodial and independent portfolio and asset management services to U.S. taxpayer-clients.
At the end of 2012, Mirelis and Atlas Capital S.A. (“Atlas”), another securities trading institution based in Geneva licensed by FINMA, entered into a share purchase agreement, pursuant to which Mirelis acquired, and subsequently merged with Atlas effective in May of 2013. Mirelis continued to serve clients as both an independent asset manager and as a custodian until May of 2014 when Mirelis transferred its activities to Hyposwiss Private Bank Genève S.A. (“Hyposwiss”), a Swiss private bank that has entered into a non-prosecution agreement with the Department, pursuant to a reverse merger and acquisition of Hyposwiss by Mirelis.
During the Applicable Period, August 1, 2008, through December 31, 2014, the aggregate maximum balance of the assets under management of Mirelis’s U.S. taxpayer-clients was in 2008 and was approximately $315 million, consisting of both assets held in custody at Mirelis and assets held at third-party depository institutions. Mirelis provided custodial account services for approximately 177 U.S. Related Accounts and portfolio and asset management services to an additional approximately 95 U.S. Related Accounts that were custodied at third-party banks. Following the transfer of its activities to Hyposwiss in 2014, Mirelis ceased to conduct any of its former activities (including its provision of independent portfolio and asset management services and its custody of client assets) except for the custody of the accounts of 17 U.S. taxpayer-clients on a temporary basis prior to closure.
Since it began its operations, Mirelis was aware that its U.S. taxpayer-clients had a legal duty to report to the IRS, pay taxes on the basis of, all of the income, including income earned in accounts at Mirelis. Despite being aware of the obligations of its U.S. taxpayer-clients to report to the IRS and pay taxes on income earned in accounts maintained outside of the United States, Mirelis opened, maintained, and serviced accounts for U.S. taxpayer-clients where Mirelis knew or had reason to know that the U.S. taxpayer-clients were not complying with these obligations or were using their accounts outside of the United States to evade U.S. taxes and reporting requirements, filing false tax returns with the IRS, and/or concealing assets maintained outside of the United States from the IRS (hereinafter, “undeclared assets”).
On several occasions, Mirelis facilitated the concealment of U.S. taxpayer-clients’ undeclared accounts through the closure of accounts and transfer of account funds (in whole or in part and temporarily or permanently) to other accounts held at Mirelis where the named account holder and/or beneficial owner were not U.S. persons and may or may not have been related to the U.S. taxpayer-client.
On at least four occasions, in or about 2011 or 2012, Mirelis facilitated the introduction of U.S. taxpayer-clients to the Singapore-based representatives of a trust company, who advised the U.S. taxpayer-clients to create non-U.S. trusts and fund non-U.S. life insurance policies. Mirelis agreed to accept and effect the transfer of the funds held in the U.S. taxpayer-clients’ accounts pursuant to instructions despite knowing or having reason to know that these U.S. taxpayer-clients were likely to use the advice received from the trust company to conceal their ownership of undeclared assets. The funds were transferred to accounts at a third-party depository financial institution outside of Switzerland in the name of a non-U.S. life insurance company that had issued policies owned by the non-U.S. trusts created by Mirelis’s U.S. taxpayer-clients. Mirelis provided independent portfolio and asset management services for these accounts and listed the account holders and clients as the life insurance company. In all four instances, Mirelis believes that the U.S. taxpayer-clients subsequently entered into an offshore voluntary disclosure program (the “OVDP”) offered by the IRS.
In order to reduce the chances of undeclared accounts being discovered, Mirelis opened and falsely designated at least one account as a non-U.S. account when it knew the account holder was in fact a U.S. person. Prior to August 2008, Mirelis opened an account using the client’s U.S. passport. When this account was closed in 2009, the account holder withdrew all funds in cash. In 2010, Mirelis opened another account for the same client, but this time used the client’s non-U.S. passport. The account documents were completed without mention of the client’s U.S. citizenship, which was then known to Mirelis.
On at least five occasions, Mirelis effected the transfer of funds from one U.S. Related Account owned or beneficially owned by individual U.S. taxpayer-clients to other U.S. Related Accounts maintained at Mirelis owned by U.S. limited liability companies, which in turn were owned by U.S. trusts with U.S. beneficiaries. The accounts owned by the limited liability companies were all later closed and the custody of their funds transferred to another Swiss bank (a so-called Category 1 bank) while the independent portfolio and asset management services were provided by Mirelis Advisors, a wholly owned subsidiary that is a registered investment adviser with the SEC. Mirelis effected these transfers without knowing or checking whether the U.S. taxpayer-clients of the original accounts were compliant with their U.S. tax and reporting obligations.
In order to assist U.S. taxpayer-clients for whom Mirelis provided independent portfolio and asset management services, Mirelis agreed to accept custody of at least eight U.S. Related Accounts from Julius Baer, despite knowing that the beneficial owners of such accounts were U.S. taxpayers, that the accounts held undeclared assets, and that the accounts were being terminated by Julius Baer due to the U.S. taxpayer-client’s U.S. citizenship or residency. Mirelis agreed to accept these accounts at least in part on the assurances of its U.S. taxpayer-clients that they would enter into the OVDP. Mirelis’s Management Committee put in place a special policy for such accounts requiring the provision of IRS Forms W-9 and waivers of bank secrecy under the QI regime; however, in certain instances, the Form W-9 was not signed or the account did not hold U.S. securities. At least seven of the U.S. taxpayer-clients associated with these accounts ultimately entered into the OVDP.
Even after instituting a policy to only serve U.S. taxpayer-clients in full compliance with U.S. tax and securities laws in 2010, during a transition period of one year, Mirelis continued to provide both custodial and independent portfolio and asset management services to U.S. taxpayer-clients despite knowing or having reason to know that the U.S. taxpayer-clients were not in full compliance with their U.S. tax and information reporting obligations with respect to several accounts maintained at Mirelis and several accounts maintained at third-party banks.
The services provided by Mirelis to its clients also included a number of traditional Swiss banking services that Mirelis knew or had reason to know could and did in fact assist its U.S. taxpayer-clients in holding undeclared assets, including providing “hold-mail” services whereby Mirelis would hold all account correspondence and statements at its offices until physically retrieved by the client in Switzerland. In addition, Mirelis provided or assisted in the provision of “numbered” account services whereby the account holder’s name was replaced on all correspondence with just the account number or a code name even though Mirelis’s internal records would show the name and identity of the account holder. These services aided in reducing or eliminating paper trails and beneficial ownership information for undeclared accounts and assets of certain of Mirelis’s U.S. taxpayer-clients.
Mirelis also assisted in the establishment of trusts and entities (collectively, “structures”) for U.S. taxpayer-clients with both accounts maintained at Mirelis and accounts maintained at third-party depository financial institutions, in particular at a Category 1 Bank, by making referrals to known purveyors of such structures both within and outside of Switzerland. Mirelis knew or had reason to know that these purveyors often operated structures in contravention of corporate formalities and/or Mirelis’s own policies and procedures and that one purpose of these structures was to add an additional layer of nominal ownership to conceal the U.S. taxpayer-clients’ ownership of undeclared accounts.
With respect to at least 24 U.S. Related Accounts maintained by Mirelis, Mirelis obtained or accepted IRS Forms W-8BEN (or substitute self-certification forms) from these entity account holders that falsely indicated the beneficial owner of the undeclared account was the non-U.S. entity itself and not the U.S. taxpayer-client. These false Forms W-8BEN directly contradicted the Swiss Forms A that Mirelis obtained identifying the U.S. taxpayer-clients as the true beneficial owners of the accounts. Despite knowing that one of the purposes of these arrangements was to further conceal the ownership of undeclared accounts, Mirelis did not contest the claims made on the Forms W-8BEN or equivalent.
With respect to its asset management services to U.S. taxpayer-clients, Mirelis’s responsibility was solely to manage the investment of the assets of the external U.S. taxpayer-clients held on deposit at the third-party financial institutions. Those institutions undertook all other aspects of managing the client relationship, including the responsibility for procuring, updating, and maintaining all “know your customer” and anti-money laundering and terrorism financing information regarding account holder and beneficial owner.
Mirelis, in connection with the due diligence performed following the Atlas acquisition, learned, among other things, that Atlas provided hold mail and numbered account services, assisted in the establishment of structures for U.S. persons, accepted (or did not contest) false IRS Forms W-8BEN regarding the true beneficial ownership of the account; and opened at least 107 accounts in the names of Panamanian corporations in which the beneficial owners were U.S. persons. Most of those 107 accounts were established by one Swiss attorney.
Mirelis took remedial steps starting in 2011 with respect to its then-existing U.S. taxpayer-clients, including implementing a new cross-border policy in June 2011, encouraging clients to enter the OVDP, and shifting its declared clients to its then-newly SEC-registered subsidiary, Mirelis Advisors, S.A.
Mirelis submitted a letter of intent to participate as a Category 2 bank in the Department’s Swiss Bank Program in December 2013. Although it was ultimately determined that Mirelis was not eligible for the Swiss Bank Program due to its structure as both an asset management firm and a bank, Mirelis is required under today’s agreement to fully comply with the obligations imposed under the terms of that program. Mirelis has fully cooperated with the Department of Justice in this investigation, including undertaking a separate and thorough review of the provision of independent portfolio and asset management services to U.S. taxpayer-clients with accounts maintained at third-party depository financial institutions and encouraging a significant number of its remaining non-compliant U.S. taxpayer-clients to participate, or provide proof of prior participation, in OVDP covering many of the U.S. Related Accounts maintained by Mirelis during the Applicable Period.
While U.S. account holders at Mirelis who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased. Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. clients of Mirelis must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program. The IRS recently announced that the Offshore Voluntary Disclosure Program will close on September 28, 2018.
Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Principal Deputy Assistant Attorney General Zuckerman also thanked Trial Attorneys Charles M. Duffy and Henry C. Darmstadter, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Finds in Favor of ATF Agent in Civil SuitRead the Press Release
St. Louis, MO – A federal jury in St. Louis returned a verdict today in favor of a Bureau of Alcohol, Tobacco & Firearms (ATF) agent who was accused of using excessive force in shooting into a vehicle during an undercover operation in 2012. Myron Pollard of St. Louis was killed in the incident and his mother was seeking $6 million in damages from the agent and the United States. The case was tried before U.S. District Judge Stephen Limbaugh, Jr.
On August 29, 2012, Special Agent Bernard Hansen was part of an ATF Special Response Team undercover operation which was targeting subjects suspected of preparing a home invasion to rob the occupants of drugs and money. The SRT agents planned to arrest the subjects at the gathering point located near the intersection of Grand and Iron in the south city neighborhood of Holly Hills. As Special Agent Hansen emerged from the SRT truck to effect an arrest, one of the subjects, Dametrius Creighton, accelerated his Grand Prix in the direction of the special agent and the other members of the SRT team. Special Agent Hansen fired several times into the vehicle in an effort to stop it. One of the rounds fatally struck Myron Pollard who was riding in the front passenger seat of the Grand Prix. The Government argued that the agent’s use of deadly force was reasonable under all of the circumstances and the jury agreed. Creighton was convicted of conspiracy and firearms charges based on this incident and is serving a sentence at the federal prison facility in Marion, Illinois.
The case was tried by Karin Schute and Nicholas Llewellyn of the United States Attorney’s Office who were assisted by Stephen Brodsky who is an ATF area counsel.
Junction City Man Sentenced to 292 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, Ky. – A Junction City man, Gene Paul Pendygraft, 46, has been sentenced to 292 months in federal prison, to be followed by a life term of supervised release, for knowingly receiving child pornography.
On Friday, United States District Judge Danny C. Reeves formally sentenced Pendygraft, who must serve 85 percent of his federal prison sentence.
Pendygraft previously admitted that, in November of 2016, he knowingly received images of child pornography on his laptop computer. A forensic examination of Pendygraft’s device revealed seven videos of child pornography, including some that depicted children under the age of 12 and some that depicted sadistic or masochistic conduct.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI), and Rick Sanders, Commissioner, Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by HSI and the KSP. The United States was represented by Assistant United States Attorney David Marye.
Joplin Man Sentenced to 20 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man and a Philippi, West Virginia, man were sentenced in federal court today for sexually abusing a child.
Ronald Lee Fields, 56, of Joplin, and Shannon Calhoun, 33, of Philippi, formerly of Joplin, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Fields was sentenced to 20 in federal prison without parole. Calhoun was sentenced to 30 years in federal prison without parole. The court also sentenced Fields and Calhoun to each spend the rest of his life on supervised release following incarceration.
Fields and Calhoun each pleaded guilty in November 2017 to one count of the sexual exploitation of a child.
Officers with the Southwest Missouri Cyber Crimes Task Force executed a search warrant at Fields’s residence on July 31, 2017, and seized various electronic devices, including a computer. Images of child pornography were found on those devices, which depicted Fields in a motel room with a child about five years old. Some photos depicted Fields and Calhoun sexually abusing the child. The photographs were taken at a variety of locations in Jasper and Newton Counties between April 20 and July 21, 2014.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ingalls, Indiana fire chief faces federal child exploitation chargesRead the Press Release
Alleged to have had a sexual relationship with a 17 year old female under his supervision
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that the former Fire Chief of Ingalls, Indiana has been charged with sexual exploitation of a child. Brian Cushman, 29, Ingalls, had his initial appearance in federal court last week and was released on GPS monitoring today.
“This office will not tolerate the sexual abuse of our children by those who are supposed to lead our children from positions of trust,” said Minkler. “Giving a child a learning opportunity, career guidance, or athletic training should not come at a cost of a child’s innocence.”
Indiana State Police received information from the Madison County Prosecutor’s Office that there were allegations of underage alcohol consumption and sexual misconduct at Cushman’s residence in Ingalls during a time when Cushman was the fire chief of the Ingalls Fire Department.
After interviewing several witnesses and victims, law enforcement officials determined that Cushman allegedly provided alcohol to Minor Victim 1 and another child. Police also learned that Cushman had sexual contact with Minor Victim 1 in the course of his employment with the Fire Department. Search warrants were obtained for Cushman’s residence and cell phone. Forensic examiners discovered sexually explicit images of Minor Victim 1 and Cushman on his cell phone dating back to January 2018.
This case was investigated by the FBI and the Indiana State Police.
“The sexual victimization of a child is a heinous crime,” said Indiana State Police Superintendent Doug Carter. “And in this particular case, it’s even worse the crime is alleged to have been committed by a public safety official that we encourage our youth to seek out when they need help.” Carter concluded, “I’m grateful to the dedicated state police forensic computer experts that were able to aid in the recovery of evidence of the alleged crimes.”
According to Assistant United States Attorney Kristina M. Korobov who is prosecuting this case for the government, Cushman could face up to 30 years imprisonment if convicted.
A criminal complaint is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit or harm children and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1.
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Illegal alien from Mexico arrested in Calcasieu Parish sentenced for illegally re-entering U.S.Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico was sentenced Thursday to six months in prison for re-entering the United States after being deported.
Raul Delacruz-Valdez, 31, of Fresnillo, Zacatescas, Mexico, was sentenced by U.S. District Judge Dee D. Drell on one count of illegal re-entry of a previously deported alien. According to the March 13, 2018 guilty plea, Louisiana State Police conducted a traffic stop on Delacruz-Valdez’s vehicle on March 20, 2017 in Calcasieu Parish. He was arrested for suspicion of driving while intoxicated. After his arrest, law enforcement agents discovered that he was an illegal alien who had re-entered the United States without obtaining permission. He had previously been removed on October 18, 2010.
Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Illegal Alien Arrested for Unlawfully Returning to the United States After Prior Drug ConvictionsRead the Press Release
NEWARK, N.J. – A man from the Dominican Republic who was previously convicted of federal and state drug crimes made his initial court appearance today on charges he unlawfully returned to the United States, U.S. Attorney Craig Carpenito announced.
Francisco Nicholas Brito, a/k/a “Nicholas Brito,” a/k/a “Jose,” 51, is charged by complaint with one count of aggravated illegal re-entry into the United States. He made his initial appearance before U.S. Magistrate Court Judge James B. Clark III and was detained.
According to documents filed in this case and statements made in court:Brito illegally re-entered the United States after being deported to the Dominican Republic following a 46-month prison sentence in the Eastern District of Pennsylvania and a five-year prison sentence in New Jersey for committing drug crimes. After his deportations, Brito illegally re-entered the country and was found in New Jersey, where he was located and arrested in June 2018.
The count of illegal re-entry carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited deportation officers of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office’s National Security Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Hattiesburg Man Sentenced to 30 years for Human TraffickingRead the Press Release
OXFORD, Miss: Raymorris Asencio, 32, of Hattiesburg, Mississippi, was sentenced to 30 years in federal prison following his conviction for human trafficking and transporting a minor across state lines to engage in prostitution. The announcement was made by U.S. Attorney William C. Lamar, FBI Special Agent in Charge, Christopher Freeze and Mississippi Attorney General Jim Hood.
Ascencio was convicted at trial in March of 2018 for trafficking a minor female for sex. U.S. District Judge Glen H. Davidson presided over Ascencio’s trial and sentenced him on Thursday in Federal Court in Oxford, Mississippi. In total, Judge Davidson sentenced Ascencio to 30 years in prison, followed by 5 years of supervised release, and a $200 special assessment.
U.S. Attorney William C. Lamar said, “Combatting human trafficking is a top priority for the Department of Justice and our office. Through collaborative efforts with our state and local law enforcement partners in Project Safe Neighborhoods and Project Safe Childhood we will do just that. We must protect our children from predators like Asencio. I want to thank the private citizens in Oxford who noticed the minor and Asencio and notified the Oxford Police Department of their concerns for the minor's safety. I also want to commend the quick action of the Oxford Police Department, the Federal Bureau of Investigation and other police departments in Hattiesburg, and Baton Rouge, Louisiana, who all worked together to locate and rescue the minor.”
“It is nearly unthinkable that trafficking a minor for prostitution still happens in Mississippi, but the jury in this case agreed that the charges against Asencio were warranted,” said Special Agent in Charge Freeze. “Our Child Exploitation Task Force constantly focuses on those that prey on children. I want to personally thank the special agents, task force officers and partner law enforcement agencies that assisted with this case, because without these partnerships, these types of verdicts would not be possible.”
Assistant U.S. Attorneys Paul Roberts and Michael Hallock prosecuted the case for the United States. The case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI, the Mississippi Attorney General’s Office and officers from the Prentiss County Sheriff’s Office and Southaven Police Department.
Guilty Verdict Against New York Man for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Yonkers, New York, man was convicted by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced today.
Francisco Vallejo, 28, was convicted of possessing a firearm despite his three prior felony convictions in Passaic County Superior Court. Vallejo was convicted on July 26, 2018 following a four-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and the evidence at trial, on June 7, 2015, Vallejo was arrested in Passaic, New Jersey, after reports of a disturbance and gunshots were made to the Passaic Police Department. Responding officers detained Vallejo on the street, and thereafter located a loaded .25 caliber firearm in a nearby garbage can. A nearby security camera captured Vallejo stashing the firearm in the garbage can, and he was later found to have gunpowder residue on his hands.
Vallejo faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 5, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge John B. Devito, officers of the Passaic Police Department, under the direction of Chief of Police Luis A. Guzman, and officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney J. Brendan Day and Senior Litigation Counsel R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Pasquale Giannetta Esq., Newark
Guatemalan Man Admits Robbing and Threatening Happy State Bank Employee with a Pipe BombRead the Press Release
LUBBOCK, Texas — Eddie Estuardo Galindo-Mendez, age 44, a Guatemalan citizen, pleaded guilty today before U.S. Magistrate Judge D. Gordon Bryant, Jr., to bank robbery through the threatened use of a pipe bomb, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Galindo-Mendez has been in custody since his arrest in March and will remain in federal custody. Galindo-Mendez faces a maximum statutory penalty of up to 20 years in federal prison and a $250,000 fine. Sentencing will be set by Senior United States District Judge Sam R. Cummings at a later date.
According to the plea agreement factual resume filed in the case, on November 20, 2017, about 3:00 p.m., Galindo-Mendez entered the Happy State Bank at 4402 19th Street, Lubbock, Texas and handed a note to a teller. The note contained words to the effect of: “There is a bomb. It is activated. Don’t push the button. No bait money. No ink.” Galindo-Mendez then placed an item that appeared to be a pipe bomb next to the teller’s computer. The device was made of capped galvanized pipes, duct tape, and wires connecting the device to a cell phone. Based upon Galindo-Mendez’s demands, the teller surrendered the money.
Surveillance videos later revealed the suspect fled the scene on a bicycle. Later review of the purported pipe bomb left at the bank determined it was inert.
Earlier that same day, at 1:46 p.m., the Texas Tech University Police Department (TTU PD) was notified of a suspicious package at Talkington Hall, Z2-D Parking Lot, 1803 Boston Avenue, Lubbock, Texas. TTU PD officers responded to that location and saw a gray Ford F-150 with its gas tank lid open. There were galvanized pipes with caps on both ends and duct tape around them hanging from the gas tank lid by a string. There was also a cell phone on the pipes with wires going from the phone to the pipes. TTU PD evacuated Merket Alumni Center, Talkington Hall, Horn Hall, and Knapp Hall. Upon further examination, the Lubbock County Sheriff’s Office Bomb Squad determined that the device was inert and processed it for evidence.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Lubbock County Sheriff’s Office, the Lubbock Police Department, and Texas Tech University Police Department investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Former Physician’s Office Employee Sentenced in Fraud SchemeRead the Press Release
Memphis, TN – Gloria Harris, 56, of Memphis was sentenced to serve 64 months in federal prison on bank fraud charges arising from her theft of approximately $292,500 from her former employer, United States Attorney D. Michael Dunavant announced today.
Harris, a former data entry clerk for Crescent Medical Corporation, was indicted by a federal grand jury in December of last year, and pled guilty in April to allegations that she fraudulently obtained $292,500 between January 2016 and March 2017. The indictment alleged that Harris stole checks payable to Crescent and deposited them to bank accounts at Trustmark Bank and Suntrust Bank which she had fraudulently opened in the name of Crescent without the knowledge of Crescent’s owner, Dr. Ashan Kathawala.
U.S. Attorney D. Michael Dunavant said: "Fraudulent schemes and crimes of dishonesty do not pay, and will be exposed. We are pleased to achieve justice for the victim in this case."
In addition to her prison sentence, United States District Judge Sheryl H. Lipman ordered Harris to serve a term of five years supervised release following her release from custody and to pay restitution in the total amount of $292,500 to Trustmark, Suntrust and Crescent.
This case was investigated by the United States Secret Service Economic Crimes Task Force.
Assistant U.S. Attorney Carroll L. André III is prosecuting this case on the government’s behalf.
Former New York State Assembly Speaker Sheldon Silver Sentenced to 7 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that former New York State Assembly Speaker SHELDON SILVER was sentenced this afternoon to seven years in prison after having been found guilty a second time by a federal jury of using his official position to obtain nearly $4 million in bribes in exchange for his official acts and obtaining another $1 million through laundering the proceeds of his crimes. SILVER had previously been found guilty of the same offenses by a jury in November 2015, but the conviction was overturned by the U.S. Court of Appeals for the Second Circuit as a result of the Supreme Court’s decision in McDonnell v. United States.
SILVER was sentenced in Manhattan federal court by U.S. District Judge Valerie E. Caproni, who also presided over the two-week jury trial.
U.S. Attorney Geoffrey S. Berman said: “When he assumed his powerful position at the top of New York State government, Sheldon Silver took an oath to do the work of the people. Instead, he leveraged his tremendous influence to pad his bank account and line his pockets. Sheldon Silver has been given a lengthy sentence of seven years in federal prison. We hope today’s fittingly stiff sentence sends a clear message: brokering official favors for your personal benefit is illegal and will result in prison time. I thank the career prosecutors of this Office for their perseverance in this important case for the people of New York.”
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
For more than two decades, SHELDON SILVER served as Speaker of the New York State Assembly, a position that gave him significant power over the operation of state government. SILVER used this immense power – including, in particular, his power over the real estate industry and his control over certain health care funding – to unlawfully and corruptly enrich himself. Among other things, SILVER unlawfully solicited and obtained client referrals worth millions of dollars in exchange for his official acts, and attempted to disguise this money as legitimate outside income earned from his work as a private lawyer. In particular, SILVER claimed, on financial disclosure forms required to be filed with New York State and in public statements, that the millions of dollars he received in outside income while also serving as Speaker of the Assembly came from a Manhattan-based law firm, Weitz & Luxenberg P.C., where SILVER claimed to work representing individual clients in personal injury actions. These claims were materially false and misleading – and made to cover up unlawful payments SILVER received due to his official power and influence as an elected legislator and the Speaker of the Assembly.
The schemes provided SILVER with two different streams of unlawful income: (i) approximately $700,000 in kickbacks SILVER received by steering two real estate developers with business before the state legislature to a law firm with which he was associated, and (ii) more than $3 million in asbestos client referral fees SILVER received by, among other official acts, awarding $500,000 in state grants to a university research center of a physician who referred patients made ill by asbestos to Weitz & Luxenberg.
Unlawful Income From a Real Estate Law Firm
SILVER, a lawyer, entered into a corrupt relationship with Jay Arthur Goldberg, P.C., later known as Goldberg & Iryami, P.C., which specialized in making applications to New York City to reduce taxes assessed on properties. Beginning in at least approximately 2000, SILVER approached a prominent developer of residential properties in Manhattan, Glenwood Management Corp. (“Glenwood”), and later approached another developer, The Witkoff Group LLC (“Witkoff”), and asked them to hire Goldberg & Iryami. The developers – both of whom lobbied SILVER and others on real estate issues because their businesses depended heavily on favorable state legislation – agreed to use Goldberg & Iryami as SILVER had requested. Over the years, Witkoff and Glenwood paid millions of dollars in legal fees to Goldberg & Iryami. SILVER received a cut from the legal fees amounting to nearly $700,000. SILVER had no public affiliation with Goldberg & Iryami and performed no legal work to earn those fees, which were payments for SILVER having arranged the business through his official power and influence.
While continuing to receive the fees and in furtherance of the scheme, SILVER took official action beneficial to Glenwood and Witkoff. For example, while SILVER was publicly associated with advocating for tenants, a proposal that benefitted Glenwood was in substantial part enacted in real estate legislation in 2011 with SILVER’s support. SILVER also approved more than $1 billion dollars in state financing for Glenwood.
Unlawful Income From Asbestos Client Referrals
SILVER also entered into a corrupt arrangement with Dr. Robert Taub, who was a leading physician specializing in the treatment of asbestos-related diseases, through which SILVER issued state grants and otherwise used his official position to provide favors to Dr. Taub and his family so that Dr. Taub would refer and continue to refer his patients to SILVER at Weitz & Luxenberg, a firm with which SILVER was affiliated as counsel. Specifically, SILVER arranged for New York State to fund two grants – each for $250,000, and paid out of a then-secret and un-itemized pool of funds controlled entirely by SILVER – for a research center Dr. Taub had established. SILVER used his official position to provide Dr. Taub with other benefits as well, including helping to direct $25,000 in state funds to a not-for-profit organization for which one of Dr. Taub’s family members served on the board, and asking the CEO of a second not-for-profit to hire a second family member of Dr. Taub.
From approximately 2005 until his arrest, SILVER received more than $3 million from legal fees Weitz & Luxenberg received from patients Dr. Taub had referred to SILVER at the firm while SILVER was agreeing to and taking official actions to benefit Dr. Taub. SILVER did no legal work whatsoever on these asbestos cases, his sole role having been to use his official position and access to state funds to induce Dr. Taub to provide him with these lucrative referrals.
Silver’s Efforts to Cover Up the Schemes
SILVER took various efforts to disguise his unlawful outside income and prevent the detection of his criminal schemes. For years, SILVER listed on his official public disclosure forms that his outside income consisted of “limited practice of law in the principal subject area of personal injury claims on behalf of individual clients,” which was false and misleading. Beginning in 2010, SILVER’s disclosures changed to state that the source of his legal income was a “Law Practice” that “includ[ed]” being of counsel to Weitz & Luxenberg. SILVER never disclosed his relationship with Goldberg & Iryami or any work beyond what he claimed was a “personal injury” practice.
SILVER also repeatedly made false and misleading statements about his outside work and income in his public statements, including the following:
- SILVER claimed he performed legal work consisting of spending several hours each week evaluating legal matters brought to him by potential clients and then referring cases that appeared to have merit to lawyers at Weitz & Luxenberg. In fact, SILVER did no such work on the asbestos cases and obtained those referrals to Weitz & Luxenberg based on his corrupt arrangement with Dr. Taub.
- SILVER claimed his law practice involved the representation of “plain, ordinary simple people.” In fact, SILVER steered legal work to Goldberg & Iryami for some of the largest real estate developers in the state, for which favorable state legislation was critical to their business interests.
- SILVER claimed through his spokesperson that SILVER principally found clients by virtue of his having been a “lawyer for more than 40 years,” in a manner that was “not unlike any other attorney in this state, anywhere.” In fact, SILVER received money from referring his lucrative asbestos and real estate developer clients solely by virtue of his official position.
- SILVER stated through his spokesperson that “[n]one of his clients have any business before the state.” In fact, SILVER’s outside income included millions of dollars of fees obtained through Glenwood and Witkoff, both of which had significant business before the state, and Dr. Taub, to whose benefit SILVER provided state funding and other benefits related to SILVER’s official position.
In addition, SILVER attempted to thwart the Moreland Commission to Investigate Public Corruption, by filing legal motions on behalf of the Assembly and taking other action to block the Moreland Commission’s investigation into legislators’ outside income.
Finally, SILVER laundered part of crime proceeds through private investment vehicles, not available to the public, which yielded him another $1 million in ill-gotten gains.
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In addition to the prison sentence, SILVER, 74, of New York, New York, was sentenced to three years of supervised release.
SILVER was found guilty by a unanimous jury on May 11, 2018, of two counts of honest services wire fraud, two counts of honest services mail fraud, two counts of extortion under color of official right, and one count of engaging in illegal monetary transactions.
U.S. Attorney Berman praised the work of the Special Agents of the United States Attorney’s Office and the Federal Bureau of Investigation, which jointly conducted this investigation.
This case was prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Damian Williams are in charge of the prosecution.
Former New Jersey Corrections Officer Pleads Guilty to Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A former officer with the N.J. Department of Corrections today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Salamak, 38, of Lodi, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with receipt of child pornography.
According to documents filed in the case and statements made in court, Salamak used email to seek and obtain images of child pornography, including images of prepubescent children.
The receipt of child pornography charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Salamak will be required to register as a sex offender. Sentencing is currently scheduled for Nov. 15, 2018.U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Five Flordia Residents Sentenced for Committing Credit Card Fraud in Northern KentuckyRead the Press Release
Three men and two women pleaded guilty to Conspiracy to Possess Counterfeit and Unauthorized Access Devices in March 2018
COVINGTON, Ky. – Jose Valdes, Jairo Castro, Yanetsi Sanchez, Arnado Salazar and Dianey Quintero, all residents of Tampa, Fla., were sentenced yesterday, to a range of 37 months to 46 months in federal prison, by United States District Judge David L. Bunning, for committing credit card fraud.
According to their guilty pleas, the Defendants were responsible for mailing a package containing 227 blank credit cards from Tampa, to a Florence, Ky. motel, using a local shipping company. Due to suspicious markings on the package, law enforcement began an investigation that ultimately led to a search of the package. Law enforcement tracked the package to the motel, and found the Defendants waiting, in three vehicles located nearby. A search of those vehicles resulted in the discovery of laptops and a thumb drive containing approximately 2,000 stolen account numbers. Also located were skimmer devices (used at gas stations to record account numbers from unsuspecting customers using the pumps), equipment designed to download the stolen account numbers onto blank cards, and seven money orders that had been purchased with stolen account numbers. The Defendants were arrested before they could unlawfully use the credit cards in the package.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Yvonne Dicristoforo, Special Agent in Charge, United States Secret Service, jointly made the announcement. The investigation was conducted by the Cincinnati/Northern Kentucky International Airport Police and the United States Secret Service. The United States was represented by Assistant United States Attorney Laura Voorhees.
Final Defendants Sentenced in Pharmacy Roberries CaseRead the Press Release
DAYTON – The final two of eight defendants were sentenced in U.S. District Court today for their roles in pharmacy robberies in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.
Tiwonne Montgomery, 22, of Dayton, was sentenced to 51 months in prison and Martez Henderson, 21, of Dayton, was sentenced to 14 months in prison. Montgomery’s sentence will be served concurrently with a state sentence for a separate pharmacy robbery.
Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati and Middletown Police Chief Rodney Muterspaw announced the sentences handed down today by Senior U.S. District Judge Thomas M. Rose.
In May 2017, a federal grand jury returned indictments charging individuals with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.
The grand jury charged two Dayton men, Calvin Cavonte Tribble and Savon Anthony Davis, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19. Tribble and Davis were each sentenced to 16 months in prison.
In July, a 10-count superseding indictment added six defendants who also allegedly conspired to rob pharmacies between March and June 2017 in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.
It was part of the alleged conspiracy that defendants would approach the pharmacy counter at CVS, Walgreens, Rite Aid and Best Pharmacy locations as if to turn in a prescription to be filled. In actuality, the slip of paper included a note that this was an armed robbery and the pharmacist would be harmed if they did not comply. The note demanded pharmacy employees to fill two bags with a list of controlled substances identified by name, amount and prescription dosage.
Those charged in the superseding indictment include Henderson; Montgomery; Kenneth Evans, Jr., who was sentenced to 42 months in prison; Brandon Freeman, who was sentenced to 27 months in prison; David Harris, who was sentenced to 20 months in prison and Jamar Warren, who was sentenced to 54 months in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by the Middletown Police and the FBI, as well as Assistant U.S. Attorneys Amy M. Smith and Brent Tabacchi, who are representing the United States in the case.
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Essex County Man Gets 12 Years in Prison for Possessing Firearm as Previously Convicted FelonRead the Press Release
CAMDEN, N.J. – A Newark man was sentenced today to 144 months in prison for possessing a firearm as a previously convicted felon for a second time and violating his supervised release, U.S. Attorney Craig Carpenito announced.
John Cottle, 47, previously pleaded guilty to an information charging him with one count of being a felon in possession of a firearm and one count of violation of supervised release from his first felon in possession of a firearm conviction from 2010. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In December 2016, investigators from the Newark and Hillside police departments responded to reports of a robbery in the area of South 13th Street, near Avon Avenue, in Newark. Officers encountered Cottle in the area and upon investigation found him to be in possession of a loaded .40 caliber Glock semi-automatic handgun.
Cottle has numerous prior felony convictions, including a 2010 felon in possession of a firearm conviction in the District of New Jersey – from which he was still on supervised release at the time of the 2016 arrest – and is prohibited from possessing a firearm under federal law.
Judge Hillman also sentenced Cottle to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino; the Newark Police Division, under the direction of Public Safety Director Anthony F. Ambrose; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan; and the Hillside Police Department, under the direction of Chief of Police Vincent Ricciardi, for their assistance.The government is represented by Executive Assistant U.S. Attorney Zach Intrater.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, CamdenEdwardsville Resident Sentenced for Bank Robberies in Lebanon and O'FallonRead the Press Release
Marcus J. Thornton, 38, of Edwardsville, Illinois, was sentenced in federal court today to 19 years in prison, for bank robbery and brandishing a firearm during a crime of violence, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced. The sentence includes a five-year term of supervised release immediately following Thornton’s imprisonment. Thornton had previously pled guilty to these charges on March 22, 2018 and April 27, 2018.
Documents filed in the U.S. District Court establish that on October 13, 2016, Thornton entered the Regions Bank located at 107 E. Schuetz Street, Lebanon, Illinois, and demanded money from bank tellers. Thornton took a total of $13,710.90 in United States currency before fleeing in a vehicle.
On February 9, 2017, Thornton entered the U.S. Bank located at 400 South Lincoln Avenue, O’Fallon, Illinois, brandished a silver and black semi-automatic handgun, and demanded money from bank tellers. Bank tellers gave $10,720 in United States currency to
Thornton, who then put the U.S. currency into a white plastic bag, and fled in a vehicle.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, Illinois State Police, and Lebanon and O’Fallon Police Departments. The case was prosecuted by Assistant United States Attorneys Daniel T. Kapsak and James G. Piper, Jr.
Dual Iranian/Canadian National Pleads Guilty to International Money LaunderingRead the Press Release
BOSTON – A dual citizen of Iran and Canada pleaded guilty today in federal court in Boston to international money laundering.
Omid Mashinchi, 35, pleaded guilty to five counts of international money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Nov. 13, 2018. Mashinchi was charged in a sealed indictment in January 2018 and arrested in April 2018, when he flew into the United States; he has been in federal custody since.
On five occasions in 2017, Mashinchi transferred funds from a bank in Vancouver, British Columbia, Canada, to a bank in Boston knowing that the money was derived from unlawful activity. On Jan. 28, Mashinchi transferred $37,794; on July 28 he made two transfers, one for $49,915 and another for $49,445; and on Aug. 3, he made two more transfers, one for $49,930 and another in the amount of $49,645.
The charge of international money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and up to a $500,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
District Man Sentenced to Six Years in Prison for OfferUp Armed Robbery SchemeRead the Press Release
WASHINGTON – Derkwon Johnson, 18, of Washington, D.C., was sentenced today to six years in prison for a pair of armed robberies committed in March 2016 in which he lured unsuspecting victims to his neighborhood in Southeast Washington and robbed them at gunpoint or knifepoint, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Johnson pled guilty in September 2017, in the Superior Court of the District of Columbia, to seven charges, including, conspiracy to commit robbery, robbery while armed, possession of a firearm during a crime of violence, assault with a deadly weapon, robbery while armed, possession with the intent to distribute PCP, and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced by the Honorable Thomas J. Motley. Upon completion of his prison term, Johnson will be placed on five years of supervised release.
According to the government’s evidence, Johnson and several unidentified individuals created fake accounts on OfferUp, an online marketplace to buy and sell goods. They did so for the purpose of luring unsuspecting victims to their neighborhood and robbing them at gunpoint. Johnson and at least one other individual began posting items for sale in March 2016. Throughout the course of the scheme, Johnson posted items for sale, including, but not limited to, iPhones, expensive shoes, dirt bikes, and high-end cars such as an Audi A6.
On March 3, 2016, one victim believed he was traveling to the 1200 block of Easton Road SE in order to buy an iPhone from an individual using the OfferUp screen name “Larry.” When the victim arrived on the block, Johnson came to his car with a bag, sat in the car, and immediately pulled out a firearm and pointed it at the victim’s head, declaring, “Give me the --- money or I’m gonna --- kill you.” Johnson stole $300 and cut the victim’s hand with a knife during a brief struggle.
Three days later, Johnson lured another victim to the same block for the purpose of buying a dirt bike. This victim arrived at the location, exited his truck, and was quickly grabbed by two individuals, one of whom stuck a knife to his chest. They dragged him back to his pick-up truck where a third individual approached and broke the passenger side window. One of the individuals stated, “Where’s the money, don’t lie to me or I’ll kill you.” The victim told the assailants where the money was hidden inside of his truck, and they escaped with $1,000.
Johnson was soon identified through fingerprints that he left at both crime scenes. Additionally, he used his mother’s Internet IP address to set up the OfferUp accounts.
MPD officers attempted to arrest Johnson for these robberies on July 31, 2016. Johnson attempted to flee but was apprehended. Upon arrest, he had PCP in his pocket, and a loaded firearm tucked in his compression shorts. He has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kevin L. Rosenberg and Brittany Keil, who prosecuted the case, and Assistant U.S. Attorney Laura A. Bach, who supervised the prosecution.
District Court Enters Permanent Injunction Against Chicago Companies to Stop Distribution of Adulterated and Misbranded Dietary Supplements and Unapproved and Misbranded DrugsRead the Press Release
The U.S. District Court for the Northern District of Illinois has entered a permanent injunction against three related Chicago companies — Global Marketing Enterprises, Inc., Lifeline Nutrients, Corp., and Pronto Foods Company — as well as their owner Eduardo S. Chua, and their operations manager Haidee V. Dawis. The injunction prevents the defendants from manufacturing, selling, and distributing adulterated and misbranded dietary supplements and unapproved and misbranded drugs, the Department of Justice announced today.
The Department filed a complaint on July 26, 2018, alleging that defendants manufacture, package, label, and distribute numerous products in violation of the Federal Food, Drug and Cosmetic Act (FDCA). The complaint further alleges that defendants’ dietary supplements were adulterated because they were not manufactured, prepared, packed, labeled or held in compliance with federal current good manufacturing practice (CGMP) regulations. FDA inspections of defendants’ plant in 2015 and 2017 revealed numerous failures to comply with CGMP regulations, including the failure to establish specifications for the identity, strength, composition and purity of their products and the failure to establish and follow written sanitation procedures. The complaint also alleges that many of the labels on defendants’ supplements were deficient, and caused the products to be misbranded under the FDCA.
Additionally, defendants marketed numerous products as drugs, according to the complaint, by making claims that these products could help treat or prevent a host of serious diseases, including Alzheimer’s disease, diabetes, HIV/AIDS, and Parkinson’s disease. Defendants sold these products to the public using these claims despite not having the required FDA approval.
The complaint alleges that defendants’ disease-related treatment claims were unsupported by any well-controlled clinical studies or other credible scientific substantiation. Additionally, defendants’ products did not contain adequate directions for such uses. The complaint asserts that directions for use, including dosages, warnings, and side effects, must be premised on clinical data derived from scientifically controlled investigation, and since defendants made disease-related treatment claims about their products in the absence of any such clinical data, the products were misbranded.
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. The consent decree requires that if the defendants wish to resume manufacturing and distributing dietary supplements in the future, they must implement the remedial measures set forth in the consent decree, notify the FDA of the measure they have taken, and obtain written approval from the FDA that they appear to be in compliance with both the terms of the consent decree and the provisions of the FDCA.
“Consumers must be able to trust that the products they buy are safe and the claims on the product's label can be relied on,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Justice Department will continue to work with FDA to take action against manufacturers that employ substandard practices, so that the public can rely on the safety and integrity of the products they buy.”
“Marketing medical products that were not manufactured in compliance with FDA regulations and making unsubstantiated claims about those products can lead to serious consequences for unsuspecting buyers,” said U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois. “This case reflects our office’s ongoing commitment to safeguard consumers.”
“Companies that market dietary supplements with unproven health claims and also continue to violate manufacturing regulations put consumers’ health in jeopardy,” said Melinda Plaisier, FDA associate commissioner for regulatory affairs. “The FDA will take the enforcement actions necessary to protect consumers from this undue risk.”
This matter was handled by Trial Attorney James Harlow of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Donald Lorenzen of the U.S. Attorney’s Office for the Northern District of Illinois, with the assistance of Associate Chief Counsel Julie Lovas of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Illinois, visit its website at www.justice.gov/usao-ndil.
Deville man sentenced to 27 months in prison for possessing an unregistered silencerRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Deville man was sentenced Tuesday to two years and three months in prison for possessing a silencer that had not been registered.
Jonathan Hayes, 32, of Deville, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of receipt or possession of an unregistered firearm. He was also sentenced to two years of supervised release. According to the April 16, 2018 guilty plea, Louisiana Department of Wildlife and Fisheries agents arrested Hayes on June 1, 2016 in the Camp Beauregard Wildlife Management Area. Agents found him in possession of a Ruger .22 caliber rifle, a Savage .22 caliber rifle and a firearm silencer. The silencer, which is a firearm under federal law, had no manufacturer’s mark of identification or serial number. The silencer was not registered in the National Firearms and Transfer Record.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Charleston Doctor Arrested TodayRead the Press Release
Multiple Count Indictment Including Illegal Distribution of Opioids Resulting in DeathCHARLESTON, W.Va. – United States Attorney Mike Stuart announced that a federal grand jury sitting in Charleston returned a 15-count indictment against Muhammed Samer Nasher-Alneam, M.D. Stuart commended the agencies that conducted the investigation leading to the indictment: Federal Bureau of Investigation, Drug Enforcement Administration, Department of Labor – Office of Inspector General (OIG), and the West Virginia State Police.
The indictment charges Dr. Nasher with 9 counts of distribution of Schedule II controlled substances, including the opioids hydrocodone, oxycodone, methadone, and oxymorphone, not for legitimate medical purposes and beyond the bounds of medical practice. Two of those counts allege that the unlawful distribution of opioids resulted in the death of the patient. The indictment also alleges that Dr. Nasher maintained two different office spaces for the purpose of illegally distributing drugs. Finally, the indictment alleges that Dr. Nasher transferred proceeds from drug distribution to Turkey for the purpose of concealing the nature, location, source, ownership or control of the proceeds.
The indictment is the result of the formation of the Opioid Fraud and Abuse Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
“This United States Attorney plans to hold accountable medical providers that chose greed over patient care,” said United States Attorney Mike Stuart. “Due to the funding provided because of the incredible commitment of this administration and Attorney General Sessions, we are aggressively going after doctors, pharmacies and other medical providers that contribute to the opiate epidemic purely for money. No medical provider should prey on individuals suffering from drug addiction for reasons rooted in personal greed. Far too many West Virginians lose their lives every year to opioid overdoses. The resources of the OFADU will make a big difference in our state and enable us to reverse the trend of overdose deaths. Drug dealers with a medical degree are still drug dealers.”
"This investigation highlights the FBI's commitment to combating the illegal distribution of opioids and narcotics by doctors," said Assistant Special Agent in Charge Nick Boshears. "Patients put their trust in doctors, and the FBI will continue to investigate those who exploit that trust and jeopardize the health of patients."
Assistant United States Attorneys Haley Bunn and Meredith George Thomas are handling the prosecution.
The indictment can be found
here .Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Buffalo Man Pleads Guilty for His Role in Cocaine Conspiracy and to Fleeing from AuthoritiesRead 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 Lawrence Russell, a/k/a Mucho, 41, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine and 28 grams or more of crack cocaine, and failure to appear after pre-trial release. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between January 2013 and January 23, 2015, the defendant conspired with others to distribute cocaine and crack cocaine.
On six occasions between May 2014 and January 2015, Russell personally, or with a co-defendant, sold quantities of cocaine and/or crack cocaine to an individual working with the FBI. Four of the six sales occurred at 165 14th Street in Buffalo, the defendant’s residence. Prior to these controlled purchases, the individual working with the FBI purchased cocaine and crack cocaine weekly from the defendant and a co-defendant for at least a full year between January 2013 and January 2014.
Russell was indicted by a federal grand jury on February 15, 2017. On March 3, 2017, the defendant was released on conditions, including electronic monitoring. On December 1, 2017, Russell cut his ankle monitor and fled after admitting to his United States Probation Officer that he had violated a no-alcohol condition of release. During that conversation, the Probation Officer directed the defendant to report to the United States Probation Office immediately but the defendant failed to comply. On January 9, 2018, Russell failed to appear for a scheduled change of plea hearing Judge Vilardo, and remained at large until May 23, 2018, when he was apprehended by the United States Marshals Service in North Carolina.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the U.S. Probation Department, under the direction of Anthony SanGiacomo, and the United States Marshals Service in North Carolina.
Sentencing is scheduled for November 29, 2018, at 9:30 a.m. before Judge Vilardo.
Boston Gang Member Sentenced for Distributing Drugs in and Around Public Housing DevelopmentRead the Press Release
BOSTON – A Heath Street gang member was sentenced today in federal court in Boston for distributing drugs in and around the Mildred C. Hailey Apartments in Jamaica Plain.
Kevin Smith, a/k/a “Works,” 27, was sentenced by U.S. District Court Judge William G. Young to 18 months in prison and six years of supervised release. In May 2018, Smith pleaded guilty to conspiracy to distribute cocaine base and to distributing cocaine base within 1000 feet of a public housing facility.
Following a two-year investigation, Smith and eight co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development.
On March 24, 2017, Smith arranged a drug sale for co-defendant Javonte Robinson, 21, who sold crack cocaine to a cooperating witness near the Mildred C. Hailey Apartments. In sum, Smith and Robinson also accepted responsibility for two additional sales that were not charged in the indictment. All of the sales took place either inside or within a 1000 feet of the Mildred C. Hailey Apartments.
According to court documents, Smith served 18 months in jail after he was convicted of carrying a firearm and resisting arrest. Although Smith was on Boston Housing Authority’s No Trespass List at one time, records show that he was arrested in the hallways and courtyards of the housing development at least seven times.
The investigation and arrests sought to reduce violence and improve the quality of life for residents in and around the Mildred C. Hailey Apartments by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes.
On July 19, 2018, Robinson was sentenced to one year and one day in prison and six years of supervised release.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Auto Body Shop Owner Charged with Tax FraudRead the Press Release
BOSTON – The owner of a Hyde Park auto body shop was charged today in federal court in Boston in connection with preparing false tax returns for his company, Automotive Specialties Inc.
Richard Poillucci, 62, of Easton, was charged by Information and has agreed to plead guilty to three counts of aiding the preparation of false tax returns.
According to the charging documents, Poillucci was the owner of Automotive Specialties Inc. (ASI), an auto body shop specializing in repairing high-end vehicles. Between Sept. 30, 2012 and Sept. 30, 2015, Poillucci cashed millions of dollars of checks from the business at check cashing establishments in Massachusetts and Rhode Island and willfully failed to report that income, or expenses that he paid for in cash with the proceeds from those checks, on ASI’s tax returns. As a result, Poillucci failed to report approximately $569,367 to the IRS, thereby avoiding the payment of approximately $215,552 in federal income taxes.
Each of the counts of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
Biloxi Man Sentenced to 10 years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Antonio Michael Ross, 49, of Biloxi, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr., to 120 months in federal prison, followed by 5 years of supervised release, for possessing with intent to distribute methamphetamine in D’Iberville, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Ross pled guilty on February 5, 2018, to one count of possession with intent to distribute methamphetamine.
On March 31, 2017, Ross approached a safety checkpoint in D’Iberville. As he approached the checkpoint, he took evasive action, which was observed by police officers. As a result, officers attempted to initiate a traffic stop. Ross did not immediately stop his vehicle, sped up and ran a stop sign. As he was fleeing, he threw a bag out of the vehicle which later was discovered to contain over 100 grams of pure methamphetamine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Baltimore Man Pleads Guilty to Illegal Possession of A Machine GunRead the Press Release
Baltimore, Maryland – William Perkins, age 36, of Baltimore, pleaded guilty today to the illegal possession of a machine gun with an obliterated serial number.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; and Interim Police Commissioner Gary Tuggle of the Baltimore Police Department (BPD).
According to Perkins’ plea agreement, on October 21, 2016, a Baltimore Police officer was conducting surveillance in the 1400 block of Mosher Street in Baltimore, when he saw Perkins. The officer saw that Perkins had a bulge in his clothing, consistent with the size of a firearm. When a marked BPD vehicle drove by the location, Perkins went into a city-owned, unoccupied home on Mosher Street. As BPD officers approached the building, they saw Perkins lean out a window and could see that Perkins had a pistol tucked into his pants. Officers entered the house and Perkins retreated to a bedroom in the back of the house, where an officer saw Perkins reach out the window. Perkins was arrested and officers recovered a pistol hidden in the back bedroom.
On October 27, 2016, Perkins placed a on call on a recorded line from jail and told the individual he was speaking with to return to the home and retrieve a firearm hidden outside the back bedroom window. BPD officers went to the home and retrieved a machine gun with an obliterated serial number from the roof area above the back bedroom window, where Perkins had described hiding the gun.
Perkins and the government have agreed that if the Court accepts the plea agreement, Perkins will be sentenced to 90 months in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for October 23, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
Baltimore Man Facing Federal Indictment for Sexual Abuse on an AirplaneRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Deo Mugabe, age 26, of Baltimore, Maryland, with fourth-degree sexual abuse on an aircraft, abusive sexual contact, and simple assault. The indictment was returned on July 3, 2018, and unsealed on July 25, 2018, upon the arrest of the defendant.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the three-count indictment, on May 29, 2018, Mugabe was seated next to the victim on a flight from Houston, Texas, to Baltimore. Mugabe and the victim were strangers. The indictment alleges that Mugabe engaged in sexual contact with the victim during the flight, knowing that the victim was incapable of declining participation or communicating unwillingness to engage in that sexual contact.
If convicted, Mugabe faces a maximum sentence of five years in prison for fourth-degree sexual abuse on an aircraft, a maximum of three years in prison for abusive sexual contact, and a maximum of one year in prison for simple assault. An initial appearance was held in U.S. District Court in Baltimore on July 25, 2018. Mugabe was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Ardmore Man Pleads Guilty to Possession of Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Glen Willis, age 32, of Ardmore, 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); and to Possessing, Receiving And Concealing A Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2), each count 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 20, 2017, 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) Heritage Manufacturing, Inc., Model Rough Rider, .22 caliber revolver, serial number F76454, which had been shipped and transported in interstate commerce.The Indictment further alleged that on or about March 20, 2017, within the Eastern District of Oklahoma, the defendant, knowingly possessed, received and concealed a stolen firearm, to wit: One (1) Heritage Manufacturing, Inc., Model Rough Rider, .22 caliber revolver, serial number F76454, which had been shipped and transported in interstate commerce, knowing and having reasonable cause to believe the firearm was stolen.
The charges arose from an investigation by the Ardmore Police Department, the Murray County Sherriff’s Office, the Oklahoma Highway Patrol, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
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.
Alabama man arrested in Lake Charles sentenced to 8 years in prison for trafficking cocaineRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a man from Alabama was sentenced Thursday to 96 months in prison for trafficking cocaine in his vehicle.
Robert Tremaine Williams, 37, of Ozark, Alabama, was sentenced by U.S. District Judge Dee D. Drell on one count of possession with intent to distribute cocaine. He was also sentenced to four years of supervised release. According to the March 12, 2018 guilty plea, Calcasieu Parish Sheriff’s deputies conducted a traffic stop on September 9, 2014 in Lake Charles on Williams’ vehicle. During a search of his vehicle, officers found 1,267.01 grams of cocaine in the trunk.
Homeland Security Investigations and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Thursday 26 July 2018
Wyoming Nurse Charged with Unlawful Distribution of Controlled Substance and Unlawful Distribution of Controlled Substance Resulting in DeathRead the Press Release
U.S. Attorney Mark Klaassen announced today, in conjunction with the Drug Enforcement Administration (DEA), that Advanced Practice Registered Nurse Margaret Ann Easley appeared in federal court for an initial appearance on an Indictment charging three counts of Unlawful Distribution of Controlled Substances including Fentanyl, Oxycodone, Hydrocodone, Methadone, and Alprazolam, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)C) and 18 U.S.C. § 2(b), which each carry penalties of up to twenty years imprisonment, and two counts of Unlawful Distribution of Controlled Substance Resulting in Death, also in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)C) and 18 U.S.C. § 2(b), and which each carry potential penalties of up to life imprisonment.
"Drug diversion cases involving opioids are a priority for this office as part of national efforts to combat prescription drug abuse, particularly the rising tide of synthetic drug abuse involving fentanyl that can have such deadly consequences," said United States Attorney Mark Klaassen. "Along with DEA, we will continue to investigate and aggressively prosecute individual providers and prescribers who seek to profit from this illegal activity."
An Indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
This case was investigated by the DEA Salt Lake City Diversion Group, DEA Casper Post of Duty, Wyoming Division of Criminal Investigation, the Fremont County Sheriff’s Office and the Lander Wyoming Police Department.
William McFarland Pleads Guilty in Manhattan Federal Court to Engaging in A Fraudulent Ticket Scam, Committing Bank Fraud, and Making False Statements to Federal Law Enforcement AgentRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that WILLIAM McFARLAND pled guilty today to one count of wire fraud, in connection with his operation of a sham ticket scheme in which he purported to sell tickets to exclusive fashion, music, and sporting events though NYC VIP Access, a company controlled by McFARLAND. McFARLAND also pled guilty to one count of bank fraud for writing a check with the name and account number of one of his employees without authorization, and one count of making false statements to a federal law enforcement agent in which he, among other things, falsely denied the wire fraud and bank fraud conduct to which he now has pled guilty. McFARLAND pled guilty before U.S. District Judge Naomi Reice Buchwald. During today’s plea proceeding, McFARLAND affirmed his previously entered guilty plea to one count of wire fraud in connection with a scheme to defraud investors in a company controlled by MCFARLAND, Fyre Media Inc. (“Fyre Media”), as well as its subsidiary (“Fyre Festival LLC”), which was formed to hold a music festival over two weekends in the Bahamas. McFARLAND also affirmed his previously entered guilty plea to one count of wire fraud in connection with a scheme to defraud a ticket vendor for the Fyre Festival. Sentencing is scheduled for September 17, 2018 at 3:30 p.m. before Judge Buchwald.
Manhattan U.S. Attorney Geoffrey S. Berman said: “William ‘Billy’ McFarland, CEO of Fyre Media, previously pled guilty to defrauding investors of Fyre Media and the infamous Fyre Festival and a ticket vendor of over $26 million. While that fraud case was pending, McFarland engaged in yet another scam, purporting to sell tickets through a company called NYC VIP Access to exclusive events, such as the 2018 Met Gala, Burning Man 2018, Coachella 2018, the 2018 Grammy Awards, and the Super Bowl. McFarland concealed his association with NYC VIP Access so that he could solicit customers of Fyre Festival and his other company Magnises to buy tickets without raising suspicion. These customers later learned that the tickets didn’t exist, and that this was just another fraud in McFarland’s disturbing pattern of deception. McFarland’s fraudulent schemes cost real people real money, and now he faces real time in federal prison for his crimes.”
According to the allegations in the Complaint and Superseding Information to which McFARLAND pled guilty, as well as statements made in court:
On March 6, 2018, McFARLAND pled guilty before Judge Buchwald to one count of wire fraud in connection with a scheme to defraud over 80 investors in Fyre Media and Fyre Festival LLC of over $24 million, and one count of wire fraud in connection with a scheme to defraud a ticket vendor for the Fyre Festival of $2 million, in the case captioned United States v. William McFarland, 17 Cr. 600 (NRB). In connection with that case, McFARLAND was on pretrial release from July 1, 2017, to June 12, 2018.
From at least in or about late 2017, up to and including at least in or about March 2018, McFARLAND owned and operated NYC VIP Access, a company based in New York, New York. NYC VIP Access purported to be in the business of obtaining and selling for profit tickets to various exclusive events such as fashion galas, music festivals, and sporting events, including the following events, among others: the 2018 Met Gala, Burning Man 2018, Coachella 2018, the 2018 Grammy Awards, Super Bowl LII, and a Cleveland Cavaliers game and team dinner with Lebron James. McFARLAND, while on pretrial release, perpetrated a scheme to defraud attendees of the Fyre Festival, former customers of Magnises (another company operated by McFARLAND), and other customers by soliciting them to purchase tickets from NYC VIP Access to these exclusive events when, in fact, no such tickets existed.
In furtherance of the fraudulent ticket scheme and to conceal his involvement in NYC VIP Access, McFARLAND took steps to make NYC VIP Access appear as it if were controlled and operated by other individuals. For example, in soliciting ticket sales, McFARLAND used an email account in the name of a then-employee (“Employee-1”) and a fake employee (the “Fake Employee”) to communicate with customers. In addition, McFARLAND did not personally meet or speak with customers. Instead, at the direction of McFARLAND, Employee-1 met and spoke with customers to solicit ticket sales. McFARLAND also directed Employee-1 to sign the contracts between NYC VIP Access and the customers for the sham ticket sales.
McFARLAND also took steps to conceal his receipt of the proceeds from the scheme. McFARLAND arranged for customer payments to be made by wire transfer, or through a payment processor, to bank accounts to which McFARLAND or his associates had access, including bank accounts belonging to Employee-1 and McFARLAND’s driver (the “Driver”). Alternatively, McFARLAND used mobile payment service accounts belonging to other NYC VIP Access employees to receive customers’ payments for tickets. Employee-1, the Driver and other NYC VIP Access employees then provided the ticket sale proceeds to McFARLAND in cash. After McFARLAND induced customers to pay for the tickets, McFARLAND either did not provide tickets at all, or did not provide tickets as advertised. Altogether, McFARLAND obtained approximately $150,000 in fraudulent ticket sales from at least 30 customer-victims of NYC VIP Access.
In or about March 2018, McFARLAND provided a forged check in the name of Employee-1 to the Driver, which the Driver attempted to deposit into the Driver’s bank account and would have resulted in the unauthorized withdrawal of funds from Employee-1’s bank account.
On or about June 20, 2018, in an in-person interview with a federal law enforcement agent about his involvement in NYC VIP Access, McFARLAND falsely stated, among other things, that (i) McFARLAND did not think that he would defraud customers from his prior businesses, Magnises and Fyre Festival, when he solicited them to buy tickets for NYC VIP Access; and (ii) Employee-1 authorized McFARLAND to write a check from Employee-1’s bank account for $25,000 in the name of Employee-1 to the Driver for the Driver to deposit into the Driver’s bank account.
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McFARLAND, 26, of New York, New York, pled guilty to one count of wire fraud while on pretrial release, which carries a maximum sentence of 30 years in prison, one count of bank fraud while on pretrial release, which carries a maximum sentence of 40 years in prison, and one count of making false statements, which carries a maximum sentence of 5 years in prison. McFARLAND also affirmed his previously entered guilty plea to two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison. In connection with his previously entered plea, McFARLAND agreed to forfeit $26,040,099.48. In connection with today’s guilty plea, McFARLAND agreed to forfeit an additional $151,206.80.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Buchwald.
Mr. Berman praised the investigative work of the FBI’s New York Field Office.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United State Attorney Kristy J. Greenberg is in charge of the prosecution.
Wildlife Trafficker Sentenced to Prison for Selling Migratory BirdsRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, United States Fish & Wildlife Service (USFWS), Alfredo Escanio, Major/Regional Commander, Florida Fish & Wildlife Conservation Commission (FWC), Division of Law Enforcement, Southern B Region, and Martin G. Wade, Director, Customs and Border Protection (CBP) Air and Marine Operations, Miami Air and Marine Branch, announced that Hovary Muniz, 41, of Miami, was sentenced to prison on July 23, 2018, for knowingly selling and offering for sale, migratory birds, that is, approximately seven Yellow-faced Grassquits (Tiaris olivaceus) and a Lazuli Bunting (Passerina amoena), in violation of Title 16, United States Code, Sections 703, 706, 707(b)(2) and (d), and Title 18, United States Code, Section 2.
Muniz has been sentenced to a total of 15 months in prison for criminal offenses involving migratory birds. Muniz was sentenced by U.S. District Court Judge Ursula Ungaro to 7 months in prison, to be followed by 1 year of supervised release, for selling and offering the migratory birds for sale (Case No. 18-CR-20335). This sentence will run consecutive to a probation violation term of 8 months in prison, imposed by U.S. District Court Judge James I. Cohn, in a separate matter involving migratory birds (Case No. 16-CR-20183).
According to the charges, statements in court, and a Factual Statement executed by the parties, from February 2017 through February 2018, while on federal probation, Muniz offered for sale and sold migratory birds. On five separate occasions an internet user, with the profile name “Hovary Toqui Muniz” (determined to be Muniz), placed posts on a private Facebook group chat site, containing photos of either Yellow-faced Grassquits or a Lazuli Bunting with commentary offering the various birds for sale, with prices up to $400. In addition to other conduct, Muniz also offered to sell a Blue Grosbeak imported from Cuba for $1,000.
At the time of his criminal conduct, Muniz was on probation for a separate offense involving migratory birds. In January 2016, Muniz was intercepted at Miami International Airport, after returning to the United States aboard a flight originating in Havana, Cuba. In a CBP Entry Declaration he claimed he was carrying no birds or other wildlife, and repeated that claim when questioned by CBP Officers. In a subsequent pat-down, CBP officers found that Muniz was in fact carrying plastic tubes concealed in his underwear and in a fanny pack, containing migratory birds. Specifically, five Cuban Melodious Finches (Tiaris canora), a Cuban Bullfinch (Melopyrrha nigra), a Yellow-faced Grassquit (Tiaris olivaceus), an Indigo Bunting (Passerina cyanea), and a Blue Grosbeak (Passerina caerulea). Muniz was convicted of failing to declare the wildlife and make it available for inspection, pursuant to Title 50, Code of Federal Regulations, Sections 14.52 and 14.61. Muniz was sentenced to 4 months of home confinement with electronic monitoring, and 3 years of probation. Muniz violated the conditions of his probation by subsequently selling and offering migratory birds for sale.
It is a felony violation of the Migratory Bird Treaty Act (MBTA) to knowingly “take by any manner whatsoever any migratory bird with the intent to sell … such bird.” 16 U.S.C. § 707(b)(1). It is further a felony violation of the MBTA to sell, offer for sale, barter, or offer for barter any migratory bird. 16 U.S.C. § 707(b)(2). Under Title 50, Code of Federal Regulations, Section 10.12, “migratory bird” means, in relevant part, any bird, whatever its origin and whether or not raised in captivity, which belongs to a species listed in 50 C.F.R. § 10.13, “… including any part, nest, or egg of any such bird . . . .” Lazuli Buntings (Passerina amoena), and Yellow-faced Grassquits (Tiaris olivaceus) are listed as migratory birds.
Mr. Greenberg commended the investigative efforts of the Special Agents of the USFWS, CBP Air & Marine Branch, and FWC, who investigated this matter. This case was prosecuted by Assistant United States Attorneys Thomas Watts-FitzGerald and Jaime Raich.
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.
United States Attorney Krueger Statement Regarding Death of Milwaukee Police Officer Mike MichalskiRead the Press Release
United States Attorney for the Eastern District of Wisconsin Matthew D. Krueger offered these condolences regarding Milwaukee Police Officer Mike Michalski who was killed in the line of duty yesterday: “Our hearts break for the fallen officer, together with his family, friends, and each member of the Milwaukee Police Department. He selflessly dedicated himself to protecting our community, and his service will not be forgotten.”
United States Attorney Announces Charges Against 23 More Defendants in Surge to Reduce Violent Crime in LouisvilleRead the Press Release
ATF LouisvilleLOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced that the Louisville Federal Grand Jury returned 20 felony indictments charging 23 individuals this month with multiple counts, including firearms violations and possession and distribution of scheduled drugs. These charges continue to be developed through an ongoing partnership of multiple law enforcement agencies to maximize penalties for the most violent repeat offenders as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. This month’s federal indictments are in addition to 14 indictments charging 16 individuals this past May and 21 indictments charging 23 individuals this past March totaling 60 PSN defendants so far this calendar year.
“Kentucky families deserve to be safe, regardless of zip code,” stated U.S. Attorney Russell Coleman “This next round of indictments of violent offenders is not the destination, but another step in the journey to deliver on our solemn promise to reduce violent crime in this community.”
“ATF is committed to reducing gun violence by arresting prohibited persons and violent offenders who unlawfully possess and use firearms," stated ATF Special Agent in Charge Stuart Lowrey of the Louisville Field Division. “These indictments reflect the ongoing partnership between ATF, Louisville Metro Police Department and other law enforcement agencies to make our communities safer for everyone.”
The crimes charged include being a felon in possession of a firearm, possession with intent to distribute Schedule I controlled substances, using a firearm in furtherance of a drug trafficking crime, and manufacturing and dealing in firearms without a license. One defendant, Elijah Eubanks, 20, has already been charged with attempted murder by the Jefferson County Commonwealth Attorney’s office for shooting at a police officer who approached his vehicle; he now faces an additional federal charge of being a felon in possession of a firearm.
Another defendant, Casey Cooper, 34, despite being warned by federal firearms dealers about the unlawful sale of firearms, continued to purchased firearms parts in bulk, assembled them into weapons, and sold approximately 90 firearms online, most of which were AR-15-style assault rifles. If convicted at trial, the maximum sentence for unlawfully manufacturing and dealing in firearms without a license is no more than five years in prison, a $250,000 fine, and three years of supervised release.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison.
These cases are being prosecuted by Assistant United States Attorneys Joe Ansari, Robert Bonar, Nute Bonner, Bryan Calhoun, Scott Davis, Tom Dyke, Larry Fentress, Marisa Ford, Amanda Gregory, Lettricea Jefferson-Webb, Joshua Judd, Corinne Keel, Daniel Kinnicutt, Erin McKenzie, Spencer McKiness, Randy Ream, Mac Shannon, Amy Sullivan, and Stephanie Zimdahl. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, and the United States Drug Enforcement Administration (DEA).
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. Today’s indictments are part of the Project Safe Neighborhoods program.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent
until and unless proven guilty
Two South Texas Men Sentenced for their role in Extortion and Attempted Money Laundering ConspiracyRead the Press Release
FORT WORTH, Texas — Nygul Anderson, 19, and Albert Gonzalez, 19, were sentenced Monday by U.S. District Judge Reed C. O’Connor, to 36 and 30 months, respectively, in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a one-day bench trial in March 2018, Judge O’Connor convicted both Anderson and Gonzalez of conspiracy to use an interstate facility to commit a travel act violation, conspiracy to possess extortion proceeds and money laundering. Co-conspirator Fernando Cabrera pled guilty in December 2017 and was sentenced in April 2018 to fourteen months in federal prison.
According to the evidence presented at trial and the documents filed in this case, on September 22, 2017, a victim began receiving threatening calls from an unrecognizable Mexican telephone number. The caller stated he had kidnapped the victim’s two brothers in Rioverde, San Luis Potosi, Mexico and demanded $300,000 or they would be killed. The ransom demand was lowered to $20,000, and the victim ultimately paid and delivered the ransom, per the kidnapper’s instructions. The kidnapped brothers were then recovered from being tied up in a motel room in Rioverde, San Luis Potosi, Mexico.
Seven days later, on September 29, 2017, the same victim received another call from the unrecognizable Mexican telephone number demanding an additional $100,000 otherwise; they would again kidnap the brothers and kill them. The Mexico kidnapper contacted co-conspirator Cabrera to travel to Fort Worth to pick up the money. Cabrera then recruited his friend, Gonzalez, and they in turn recruited Anderson and a 17-year-old minor to pick up the money.
Shortly thereafter, Cabrera, Gonzalez, Anderson, Cabrera, and a 17-year-old minor – were arrested as they attempted to collect the ransom money.
This case was investigated by the Federal Bureau of Investigation and the North Richland Hills Police Department. Assistant U.S. Attorneys P.J. Meitl and Chris Wolfe were in charge of the prosecution.
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Two Individuals Sentenced for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 24, 2018, United States District Court Judge Malachy E. Mannion sentenced William Waring and Tanay Jones, both of Bronx, New York, for conspiring to distribute heroin, crack cocaine, and fentanyl. Waring, age 27, was sentenced to five years’ imprisonment and four years of supervised release following that sentence of imprisonment. Jones, age 26, received a time served sentence of approximately one month, and three years of supervised release.
According to United States Attorney David J. Freed, Waring and Jones both pled guilty to conspiring to distribute controlled substances in Pennsylvania between approximately July 2016 through February 2017. Waring admitted to working as a drug dealer in the conspiracy, and that he trafficked in excess of 60 grams of crack cocaine and in excess of 100 grams of heroin, the latter of which is the equivalent of 4,000 potentially fatal doses of heroin. Jones admitted that she served as a drug courier in the conspiracy, transporting narcotics from New York to Pennsylvania by secreting them in her body cavities. She admitted to trafficking in excess of 28 grams of crack cocaine and in excess of 100 grams of heroin, the latter of which again is the equivalent of 4,000 potentially fatal doses of heroin.
Waring and Jones were charged in June 2017 with 13 other individuals. All of their co-defendants have pleaded guilty, with three others having already been sentenced:
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months of imprisonment;
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months of imprisonment; and
- Kristyna Shotwell of Plymouth, Pennsylvania, was sentenced to 12 months and one day of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kingston Police Department, and the Luzerne County Drug Task Force. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Two Former Senior Executives of “Major World” Automotive Dealerships Plead Guilty to Filing False Corporate Tax ReturnRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Harold Bendell and Bruce Bendell, the former senior managers of Major Automotive Companies, Inc., doing business as “Major World,” pleaded guilty to filing a false corporate tax return for the calendar year 2009 that underreported income and inflated expenses in order to avoid paying the proper taxes owed. Major World operated automobile dealerships in Queens, New York, and throughout the New York Metropolitan area. Prior to their guilty pleas, the defendants paid over $3,888,267 in restitution to the Internal Revenue Service and resigned from Major World. The guilty pleas were entered before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty pleas.
“By their pleas, Harold and Bruce Bendell admitted that they concealed millions of dollars of their company’s income and avoided paying their fair share of taxes to the United States government,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work together to ensure that individuals who attempt to evade their responsibilities as taxpayers are held responsible.”
“This great country of ours relies on a tax system based on voluntary compliance,” stated IRS-CI Special Agent-in-Charge Robnett. “Harold and Bruce Bendell took unlawful advantage of the system that financially impacts all Americans. Our special agents along with the U.S. Attorney’s Office are committed to protecting the system that contributes to our way of life.”
As stated in the charging and plea documents, on or about August 10, 2010, both defendants filed a corporation tax return Form 1120 for the calendar year 2009 that failed to report approximately $1,417,814 in gross receipts that Major Automotive had received and approximately $2,116,000 in cash payroll expense for which Major Automotive did not pay payroll taxes.
When sentenced, each defendant faces a maximum of three years in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Burton T. Ryan, Jr. is in charge of the prosecution.
The Defendants:
HAROLD BENDELL
Age: 69
Englewood Cliffs, New JerseyBRUCE BENDELL
Age: 64
Roslyn, New YorkE.D.N.Y. Docket 17-CR-585 (JS)
Tioga County Man Sentenced to 25 Months for Assaulting Federal OfficersRead the Press Release
BINGHAMTON, NEW YORK – William Surmik, age 24, of Apalachin, New York, was sentenced today to serve 25 months in prison and a 3 year term of supervised release for his previously entered guilty pleas to Assaulting, Resisting, and Impeding Federal Law Enforcement Officers, announced United States Attorney Grant C. Jaquith, Charles Margiotta, Acting Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI), David L. McNulty, United States Marshal for Northern District of New York, George P. Beach, II, Superintendent of the New York State Police, and John A. Butler, Vestal Chief of Police.
In pleading guilty, Surmik admitted that in March of 2017 he was a parole absconder from the state of Ohio staying in the Apalachin, New York area. On March 7, 2017, Deputy U.S. Marshals and several members of the U.S. Marshal’s Fugitive Task Force approached a residence in Apalachin, New York in order to execute an arrest warrant for Surmik. Upon seeing the Marshals, Surmik fled the scene in a truck and rammed a vehicle operated by federal task force officers. Surmik then led officers on a high-speed chase through backcountry roads, which resulted in a crash between Surmik’s truck and task force officers. A member of the U.S. Marshal’s Fugitive Task Force was seriously injured during the arrest of Surmik.
This joint investigation was conducted by the FBI, U.S. Marshal’s Service, New York State Police, and the Vestal Police Department. The case was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Three More Defendants Sentenced to Federal Prison for Their Roles in a Drug Trafficking ConspiracyRead the Press Release
Defendants are the latest to be sentenced out of nearly two dozen defendants after long-term narcotics investigation
BLUEFIELD, W.Va. – Three men were sentenced today to federal prison for their roles in a drug trafficking organization, announced United States Attorney Mike Stuart. David Shaun Coleman, 46, of Boomer, Fayette County, was sentenced to 60 months, or five years, in federal prison. Rashaun Carter, 40, of Beckley, and Derrick Lamar Staples, 41, of Charleston, were each sentenced to 121 months, or 10 years, and one month in federal prison.
Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“These drug dealers were responsible for a significant amount of drugs being distributed in our southern counties,” said United States Attorney Mike Stuart. “The crimes committed by these defendants and the resulting community devastation warrant the lengthy sentences imposed. Drug dealers like Coleman, Carter and Staples need to be locked up and removed from our communities.”
David Shaun Coleman previously entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, and a quantity of oxycodone. At the plea hearing, he previously admitted that between May 2017 and June 28, 2017, he participated in a drug trafficking organization that distributed more than 100 grams of heroin and oxycodone, in and around Fayette County. Coleman admitted that during this time period, he received approximately 215 grams of heroin and approximately 700 oxycodone 30 mg tablets from other members of the drug trafficking organization that he intended to distribute in the southern district of West Virginia.
Rashaun Carter previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, a quantity of cocaine, and a quantity of fentanyl. At his plea hearing he admitted that between August 2016 and June 28, 2017, he assisted Velarian Carter, James Rodney Staples, and others in operating a drug trafficking organization that distributed more than 28 grams of cocaine base, or “crack,” more than 100 grams of heroin, and quantities of cocaine and fentanyl, in and around Beckley, Raleigh County, West Virginia. Carter admitted to distributing cocaine base and over 100 grams of heroin to another member of the drug trafficking organization. Carter also admitted to assisting other members of the drug trafficking organization in cooking cocaine into cocaine base, or “crack,” and distributing the same in Raleigh County.
Derrick Lamar Staples previously entered a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin. Staples previously admitted that between August 2016 and June 28, 2017, he took part in a drug trafficking conspiracy in Raleigh and Kanawha Counties with multiple participants involving the distribution of cocaine and heroin. Staples admitted to working with James Rodney Staples, Dominic Copney and others to distribute the controlled substances. Staples admitted that other members of the drug trafficking organization would come to his residence in Charleston to pick up materials used to “cut” or prepare heroin for distribution. He also admitted that on June 28, 2017, law enforcement officers executed a search warrant at his residence in Kanawha County. During the search, agents found 706.99 grams of a mixture containing heroin and fentanyl, 34.4 grams of cocaine, a kilo press used to prepare drugs for distribution and two firearms. Staples admitted it was his intent to distribute the controlled substances found during the search. Law enforcement officers also seized over $70,000 in cash, jewelry, a car, and real estate that Staples admitted were drug proceeds or purchased with drug proceeds. As part of the plea agreement Staples has agreed to the forfeiture of these items.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
Several other individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Jonathan O. Brockman faces not less than five years and up to 40 years in federal prison when he is sentenced on August 8, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on August 13, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin. Karl Funderburk previously entered a guilty plea to using and carrying a firearm during a drug trafficking crime and is also scheduled for sentencing on August 13, 2018. George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone and is also scheduled for sentencing on August 13, 2018. He faces at least five years and up to 40 years in federal prison.
Several defendants in this case have already been sentenced. Velarian Carter of Beckley was recently sentenced to 240 months, or 20 years in federal prison for his participation in this drug trafficking organization. His sentence was ordered to run consecutively to a 20 year sentence Mr. Carter is already serving on unrelated drug charges. Detria Carter of Beckley, the sister of Velarian Carter, was recently sentenced to 151 months, or 12 years and seven months in federal prison. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, were sentenced to 12 years, and 16 years and 8 months in prison, respectively. Rory White of Montgomery was sentenced to 125 months in federal prison. Tiffany Ramsey, also from Boomer, was sentenced to 46 months in federal prison. Dominic Copney, of Beckley, has been sentenced to 2 years in federal prison. Donald Scalise, of Montgomery, was sentenced to 3 years in federal prison for conspiring to distribute oxycodone.
On July 10 and July 11, 2018, Judge David A. Faber sentenced Esau Burnett, of Beckley, to 66 months in federal prison, Shawn Akiem Anderson, of Mount Hope, to 108 months in federal prison, and Shaun Jones, also of Beckley, to 120 months in federal prison. He also sentenced to Jonathan V. Moore, and Charles Hill, both of Beckley to 97 months and 60 months, respectively. Corey Larkin, of Beckley, was previously sentenced to 188 months in federal prison after he was determined to be a career offender.
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Three Foreign Nationals Indicted for International Cocaine Smuggling ConspiracyRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Nelson Armando (52, Ecuador), Jimmy Espinal (50, Ecuador), and Christian Rodriguez-Sanchez (25, Guatemala) with possession with the intent to distribute and conspiring to possess with the intent to distribute five kilograms or more of cocaine. If convicted, each faces up to life in federal prison and a $10 million fine for each count.
This indictment arose out of a June 15, 2018, interdiction of a drug smuggling vessel in international waters by the United States Coast Guard (USCG) Cutter VENTUROUS. As part of the interdiction, the USCG seized approximately 741 kilograms of cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. It is being prosecuted by Special Assistant United States Attorney Nicholas G. DeRenzo.
The City of Jacksonville Agrees to Pay $4.9 Million to Settle Employment Discrimination LawsuitRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with the City of Jacksonville, Florida (the “City”) to resolve allegations that the City’s promotional practices for positions in the Jacksonville Fire and Rescue Department (JFRD) violated Title VII of the Civil Rights Act of 1964. Title VII is a federal law that prohibits employment discrimination on the basis of race, color, sex, national origin, or religion. The proposed settlement agreement, which must still be approved by a federal judge, finalizes an agreement in principle reached by the parties in January 2017.
In a joint motion filed by the parties today in the United States District Court for the Middle District of Florida, the Justice Department, the City, the International Association of Fire Firefighters (the “Union”), the Equal Employment Opportunity Commission (EEOC), and various private plaintiffs asked the court to enter a provisional order that sets out the terms of the settlement agreement. Under the terms of the settlement, the City agrees to develop new promotional examinations for the selection of certain positions in the JFRD. The City also will offer settlement promotions to qualified African Americans and will establish a $4.9 million settlement fund for eligible claimants.
“The Justice Department is committed to enforcing Title VII to remove unlawful discriminatory barriers. The Settlement Agreement announced today ensures that all promotional candidates in the JFRD are given a fair opportunity to compete for advancement,” said John Gore, Acting Assistant Attorney General of the Civil Rights Division.
The proposed settlement agreement will resolve the complaint filed by the Justice Department in federal court on April 23, 2012, a separate lawsuit filed against the Union by the EEOC, and claims brought against the City and/or Union by various private plaintiffs, including the National Association for the Advancement of Colored People, Jacksonville Branch, and the Jacksonville Brotherhood of Firefighters.
This matter was handled for the United States by Jay Adelstein, Hector Ruiz, Brian McEntire, Jeremy Monteiro, Sharyn Tejani, and Clare Geller, all current or former attorneys in the Civil Rights’ Division’s Employment Litigation Section. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt