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6 September 2018
Florida-Based Broadcasting Company Ordered to Pay $910,700 to Federal Communications CommissionRead the Press Release
WASHINGTON – A federal judge has issued a judgment against Newman Broadcasting, Inc., in the amount of $910,700, for the company’s breach of its contract with the Federal Communications Commission (FCC), U.S. Attorney Jessie K. Liu announced today.
The judgment was issued on Sept. 4, 2018, by the Honorable Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia. It resolves a lawsuit filed in June 2016 by the U.S. Attorney’s Office for the District of Columbia that alleged that Newman Broadcasting and its principal owner had violated the False Claims Act in dealings with the FCC.
Newman Broadcasting, a Lake City, Florida corporation, entered into an agreement with the FCC in which the company agreed to pay the FCC for certain rights to certain radio frequencies, less any bidding credit for which it was eligible. During the bidding and application processes from 2005 through 2007, the company certified it was eligible for a 35% new entrant bidding credit and satisfied all of the requirements. Because Newman Broadcasting was in part controlled by an experienced radio station owner with other stations in the same market, Newman Broadcasting was not eligible for the new entrant bidding credit it received at the time and, therefore, breached its agreement with the FCC.
The defendants’ attempt to have the case dismissed was denied by the court in August 2017 and after discovery, the parties entered into a settlement agreement that included an entry of judgment against Newman Broadcasting, Inc., for its breach of contract with the FCC.
The case was investigated by the FCC Office of the Inspector General, as well as the Enforcement Bureau and the Office of General Counsel for the Federal Communications Commission, and the Department of Justice, and was prosecuted by Deputy Chief Brian P. Hudak, former Assistant U.S. Attorney Beverly Russell, and Assistant U.S. Attorney Wynne P. Kelly of the U.S. Attorney’s Office for the District of Columbia. Investigator Karen Caudill assisted in both the investigation and prosecution of the case.
The case is captioned United States v. Newman Broadcasting, Inc. Case No. 1:16-CV-01169-CKK (D.D.C.).
Fleming County Farmer Indicted for Crop Insurance FraudRead the Press Release
LEXINGTON, Ky. – A Flemingsburg man was indicted today for engaging in crop insurance fraud.
A federal grand jury in Lexington returned a ten-count indictment charging 45-year-old Christopher G. Hickerson with multiple counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies the FCIC reinsures, and two counts of committing a conspiracy to commit an offense against the United States.
The indictment alleges that as early as 2009, Hickerson, an agricultural producer of tobacco, winter wheat, and soybeans in Fleming County, hid his tobacco production from insurance companies, in order to claim damage to his crop sufficient to trigger crop insurance indemnity payments or generate larger indemnity payments, which are funded by the federal government through the FCIC. The indictment also charges Hickerson with two counts of conspiracy to commit crop insurance fraud with the help of others. The first conspiracy count alleges that Hickerson worked with others to obtain false quality adjustments on tobacco presented to graders as belonging to Hickerson, when in fact the tobacco belonged to others, in order to inflate his claim of loss. The second count alleges that Hickerson obtained crop insurance policies in others’ names, in order to take advantage of their new producer status. A new producer may receive a higher guarantee for their crop insurance than an individual who has a history of claiming losses.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The indictment was presented to the grand jury by Assistant U.S. Attorneys Kathryn M. Anderson and Erin M. Roth.
A date for Hickerson to appear in court has not yet been scheduled. For each charge of making false statements to the FCIC, Hickerson faces up to 30 years in prison and a fine of $1,000,000. For the conspiracy to violate federal law charges, Hickerson faces up to 5 years in prison and a fine of $250,000. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Five Defendants Admit Their Roles in Overseas Investment ScamsRead 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 Gene Foland, 58, Jeffrey G. Klein, 63, Joel Marcus, 79, all of Florida, Saad Shuaib, 49, a citizen of Kuwait, and Walter Tatum, 60, of California, each pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Russell T. Ippolito, Jr. and Paul E. Bonanno, who are handling the case, stated that the defendants participated in a “boiler room” scam that operated in Barcelona, Spain. Members of the conspiracy, working in the Spain boiler room, conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices by telling buyers that they were buying more valuable freely traded shares of stock.
Approximately 250 investors lost more than $2,900,000 to the defendants, and a number of other conspirators. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by members of the conspiracy. Foland’s role in the conspiracy was to offer assistance and advice to the managers of the Barcelona boiler room and to procure worthless restricted stock for the boiler room to sell. Klein, an attorney, served as the escrow agent for the fraudulent stock transactions. Marcus, Tatum and Shuaib sold worthless restricted stock to the boiler room conspirators, who then sold the restricted stock to unsuspecting investors as though the stock was the more valuable freely trading stock.
A total of 10 defendants involved in the boiler room scam have been convicted. Charges are pending against two other defendants, including one defendant who is fighting extradition in England. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Kevin Kelly, Special Agent-in-Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge.
Sentencings are scheduled for January 15, 2019, before Judge Wolford.
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Farmville Man Sentenced to 60 Months for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced NIKI HOSEA JOYNER, 45, of Farmville, North Carolina to 60 months imprisonment, followed by 5 years of supervised release.
JOYNER was named in an eight-count Indictment filed on January 19, 2018 charging him with conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more of cocaine. On April 2, 2018, JOYNER pled guilty to the conspiracy charge.
According to the investigation, between December 2015 and February 29, 2016, JOYNER conspired with others and distributed 374.23 grams of cocaine. On February 29, 2016, shortly after selling 123.64 grams of cocaine, officers arrested JOYNER. Subsequent searches of JOYNER, his vehicle, and two residences revealed 1,023.11 grams of cocaine, 126.9 grams of marijuana, and over $6,000 in US currency.
Investigation of this case was conducted by the Greenville Regional Drug Task Force. Assistant United States Attorney Dena King represented the government.
FTC Takes Action against Alabama Operators of Copycat Military WebsitesRead the Press Release
HUNTSVILLE – The Alabama operators of copycat websites army.com and navyenlist.com have agreed to settle Federal Trade Commission charges that they targeted people seeking to join the armed forces and tricked them by falsely claiming to be affiliated with the military in order to generate sales leads for post-secondary schools.
The defendants, including the Huntsville-based companies Sunkey Publishing Inc. and Fanmail.com, LLC, have agreed to relinquish army.com, armyenlist.com and other domain names, and to stop the practices that they allegedly used to deceive consumers.
“We are proud to work with the Federal Trade Commission to ensure that those brave few who served in this nation’s armed forces are not the targets of false and misleading marketing,” said U.S. Attorney Jay E. Town. “Legitimate veterans charities and private veterans programs fill necessary functions for our nation’s heroes. It is our sacred obligation to ensure that those philanthropic efforts are endowed by the virtues of service, not divested of moral and legal standards. My civil and criminal divisions will continue to aggressively engage in uncovering these illegal and deceptive practices.”
FTC Chairman Joe Simons said, “Those who are considering a military career deserve to have confidence that the recruitment site is legitimate and their personal information will not be misused. The FTC will take action against any party in the lead generation ecosystem – from sellers to purchasers – that fails to comply with the law.”
The defendants in the case have used copycat military recruitment websites since at least 2010, according to the FTC’s complaint, which the Department of Justice filed today in U.S. District Court for the Northern District of Alabama on behalf of the commission. Some of the websites, such as army.com and armyenlist.com, appeared to be official recruiting websites affiliated with the U.S. military.
The websites prompted consumers to submit their information in order to learn more about joining the armed forces, according to the FTC. The complaint claims that the defendants promised to use the information consumers submitted to the site only for military recruitment purposes and not to share with anyone else.
Instead, the FTC charged that the defendants sold the information as marketing leads to post-secondary schools for $15 to $40 per lead.
In addition, people who submitted their information allegedly received follow-up phone calls from telemarketers who continued the misrepresentations by posing as members of the military, touting specific schools, and giving consumers the false impression that the U.S. military actually endorsed those schools.
This action is part of the FTC’s effort to combat government imposter schemes, the most frequent type of fraud complaint from military consumers in the FTC's Consumer Sentinel database. It also builds on the agency’s work in the area of lead generation, including its examination of various players involved.
The FTC charged the defendants with violating the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). The agency also alleged that they violated the Do Not Call provisions of the TSR by placing hundreds of thousands of illegal telemarketing calls to phone numbers on the National Do Not Call Registry and by failing to pay required fees.
The two proposed orders settling the FTC’s charges require the defendants to turn over to the FTC websites used to deceive consumers, including army.com and armyenlist.com. Turnover of these websites partially satisfies the civil penalty judgments of $11.1 million against Sunkey and $1 million against Fanmail. The judgments are otherwise suspended due to defendants’ inability to pay; however, if the defendants are later found to have misrepresented their financial condition to the FTC, the full amount of the penalty would become due.
The proposed orders also ban the defendants from misrepresenting a military affiliation, the endorsement of particular schools by the military, or the extent to which they share consumers’ personal information. They require the defendants to disclose that their sites are not official recruiting websites of the U.S. military, to solicit consumers’ acknowledgement of that fact, and to get permission to disclose consumer information collected in connection with lead generation for any purpose. The defendants also must notify the companies that bought consumer data from the defendants of the FTC’s allegations and instruct the companies to stop using the information.
The first proposed order settles the FTC’s charges against Sunkey Publishing Inc.; Sun Key Publishing, LLC; Wheredata, LLC; and Christopher Upp, individually and as an officer of the corporate defendants; and Mark Van Dyke, individually and as an officer of the corporate defendants. The second proposed order settles the FTC’s charges against Fanmail.com, LLC; and Lon Brolliar and Andrew Dorman, individually and as officers of Fanmail.com, LLC.
The FTC has education material to help consumers avoid trouble from imposters and to safeguard their personal information:
- Before you fill out forms or applications on a site, find out more about who is actually requesting your information and for what purpose by doing an online search for the site operator with words like “complaint” or “review.”
- If you think you have gotten a call from a government imposter, report it to the FTC at FTC.gov/complaint.
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Essex Sex Offender Sentenced to over 12 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
Baltimore, Maryland –U.S. District Judge Richard D. Bennett today sentenced Raymond Kilchenstein, age 53, formerly of Essex, Maryland, to 150 months in prison, followed by 20 years of supervised release, for transportation of child pornography. Judge Bennett ordered that, upon his release from prison, Kilchenstein must continue to 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).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Interim Commissioner Gary Tuggle of the Baltimore Police Department.
According to the his plea agreement, in 1997, while Kilchenstein was serving in the U.S. Air Force, he pleaded guilty to repeatedly sexually abusing a minor female for four years, beginning when the child was four years old. He also acknowledged fondling a second minor female, who was 10 years old at the time of the abuse. Kilchenstein was sentenced to 10 years of confinement and dishonorably discharged from the Air Force. He was released on May 2, 2003 and has been a registered sex offender since that time.
Kilchenstein admitted that beginning in 2015, he traded child pornography in three ways: by using a foreign website that facilitates sharing images and videos; through several e-mail addresses; and by utilizing an instant-messaging application for mobile devices that allows users to share photos, videos, and other content. A search warrant executed at Kilchenstein’s home on February 10, 2017, recovered digital storage media, including three thumb drives, a laptop, and a hard drive. Subsequent forensic analysis of the media recovered over 20,000 images and 665 videos of child pornography, including over 275 identified child pornography series. Kilchenstein has been ordered to pay $13,000 in restitution to the identified victims in those series. The images and videos also included prepubescent minors engaged in sexually explicit conduct, as well as sadistic, masochistic, and other depictions of violence.
Kilchenstein was arrested on December 15, 2017, and an Apple iPhone 7 was seized, but was locked, preventing forensic analysis. As part of his plea agreement, Kilchenstein provided the password to allow access to his iPhone in order to allow a full forensic analysis of the phone to determine whether there was any evidence of production of child pornography. None was found.
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 FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the federal case.
East Mountain Family Practice Doctor Pays $300,000 to Resolve Alleged False Claims to Federal Healthcare Programs for Services Rendered While Out of CountryRead the Press Release
ALBUQUERQUE – Orrin K. McLeod, D.O., a family practitioner licensed to practice medicine in the state of New Mexico, has paid $300,000 to resolve allegations under the civil False Claims Act that he submitted, or caused to be submitted, claims for payment for services and prescriptions under federal healthcare programs while he was out of the country. The $300,000 payment also resolves allegations under the Controlled Substances Act that Dr. McLeod left signed, but otherwise blank, prescriptions for use by other healthcare providers while McLeod was out of the country.
Dr. McLeod made the payment pursuant to a settlement with the U.S. Department of Justice and the Office of the New Mexico Attorney General based on an investigation by the DEA’s Tactical Diversion Squad.
In announcing the settlement, U.S. Attorney John C. Anderson said, “Healthcare professionals hold positions of trust in our community, and the privilege of writing prescriptions for controlled substances comes with great responsibility. The integrity of our healthcare system and the well-being of our citizens depend upon the proper exercise of this privilege. My office will vigorously pursue allegations that this privilege has been abused for private gain.”
“Healthcare professionals cannot be allowed to fraudulently take funds that are meant to be used for New Mexicans’ healthcare needs,” said New Mexico Attorney General Hector Balderas. “New Mexican families can rest assured that our office is continually working with all federal and state entities, to achieve a safer, more prosperous State, and a reliable healthcare system that will last citizens years into the future.”
“The penalties levied against Dr. McLeod sends the message, to medical professionals who endanger the safe and legal dispensation of pharmaceutical drugs, that they will be investigated and sanctioned to the fullest extent of the law,” stated Kyle Williamson, DEA El Paso Division Special Agent in Charge.
Dr. McLeod is a New Mexico healthcare service provider with offices in Moriarty, Edgewood and Cedar Crest, N.M. The United States and the State of New Mexico contend that he submitted, or caused to be submitted, claims for payment to the Medicare, Medicaid Program, TRICARE Program, and Federal Employees Health Benefits Program.
With respect to the False Claims Act allegations, the United States and State of New Mexico contend that, Dr. McLeod submitted claims for services to these programs while he was out of the country on various dates between May 21, 2012 and May 6, 2015. They further contend that Dr. McLeod submitted or caused to be submitted claims for prescription medications when he was out of the country on various dates between May 19, 2012 and Jan. 6, 2018.
With respect to the Controlled Substances Act allegations, the United States contends that in July 2013, while he was out of the country, Dr. McLeod left signed, but otherwise blank, prescriptions in his office for use by healthcare workers to write prescriptions for controlled substances.
The settlement amount, $300,000, which was paid by Dr. McLeod earlier today, includes $53,724.04 in restitution, the amount the United States and the State of New Mexico contend was improperly claimed by Dr. McLeod. The balance, $246,275.96, represents penalties paid by Dr. McLeod under the False Claims Act and Controlled Substances Act.
The settlement is the result of a coordinated effort by Assistant U.S. Attorneys Michael H. Hoses and Ruth F. Keegan of the Civil Division of the U.S. Attorney’s Office, Assistant Attorneys General John Grubesic and Emily Luke of the Office of the New Mexico Attorney General, and the Tactical Diversion Squad of the DEA office in Albuquerque.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Claims settled by this agreement are allegations only. There have been no admissions of liability by Dr. McLeod.
Demotte Man Charged for Possession with Intent to Distribute MethamphetamineRead the Press Release
HAMMOND- Ricky Shultz, 47, of Demotte, Indiana, was charged on September 5, 2018 by criminal complaint with one count of possession with intent to distribute fifty grams or more of methamphetamine.
U.S. Attorney Kirsch said, “This case is the result of cooperation between local, state and federal authorities. My office is, and remains committed, to fighting the scourge of drug trafficking and the illegal possession of firearms in all of the counties in our district, rural or urban.”
According to documents in this case, a search warrant was executed at the residence of Ricky Shultz, a convicted felon, in Demotte, Indiana. The search resulted in the seizure of almost a quarter kilogram of methamphetamine and 48 firearms. The documents identify Shultz as a convicted felon who holds a leadership position in the Saxon Knights, a prison-based gang that espouses a white supremacist ideology.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the DEA, the Jasper County Sheriff’s Office, the Jasper County Office of the Prosecuting Attorney, the Indiana State Police, the Porter County Multi-Enforcement Group and the Newton County Drug Task Force. It is being prosecuted by Assistant United States Attorney David J. Nozick.
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Dayton Man Sentenced for Traveling Interstate for Intercourse with 14-Year-Old VictimRead the Press Release
DAYTON – William Sparks, 66, of Dayton, was sentenced in U.S. District Court to 108 months in prison and 10 years of supervised release for traveling interstate with the intent of engaging in illicit sexual conduct with a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Montgomery County Sheriff Phil Plummer announced the sentence imposed yesterday evening by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Sparks traveled from Ohio to Kentucky in May 2017 to engage in sexual acts with a 14-year-old girl. Sparks met the victim when she was a young girl, as an acquaintance of the girl’s mother, and began a sexual relationship with the child.
Sparks cultivated a relationship with the minor and took her on trips to Indiana and Kentucky. Once in these states, he committed various sexual acts against her. He molested the girl repeatedly at various places and also provided her alcohol or promised her small amounts of cash if she was a “good girl.”
“The defendant’s role as a father figure to his victim makes this crime particularly egregious,” U.S. Attorney Glassman said.
Sparks pleaded guilty in November 2017.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Montgomery County Sheriff’s Office, and Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Council Bluffs Woman Sentenced to 140 Months in Prison for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, Iowa – On September 5, 2018, Paige Elizabeth Thurman, age 29, of Council Bluffs, was sentenced by United States District Court Chief Judge John A. Jarvey to 140 months in prison for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Marc Krickbaum. Thurman was ordered to serve five years of supervised release to follow her prison term.
Thurman pleaded guilty to the charges on April 5, 2018. She admitted she possessed $6,100, a Colt .380 Mustang semi-automatic handgun, digital scale, ammunition, plastic baggies, knife, stun gun, and 140.5 grams of methamphetamine on her person and in the vehicle she was driving on September 8, 2017, after leading law enforcement on a high speed chase in Council Bluffs. Thurman admitted she possessed the methamphetamine with the intent to distribute it and she possessed the handgun to assist in the distribution of methamphetamine.
This case was investigated by the Pottawattamie County Sheriff’s Department and Council Bluffs Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Colombian alien sentenced to 3 years in prison for using stolen id to obtain driver’s license in MonroeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that an illegal alien from Colombia was sentenced Wednesday to 36 months in prison for using a stolen birth certificate and Social Security card to obtain identification cards in Monroe.
Jimmy Hurtado, 36, of Colombia, was sentenced by U.S. District Judge Terry A. Doughty on one count of falsely representing to be a citizen of the United States, one count of false representation and use of a Social Security number, and one count of aggravated identity theft. According to the guilty plea, Hurtado used the identity of a United States citizen from Puerto Rico in 2010 to obtain a state-issued identification card from the Monroe Department of Public Safety Office. He supplied a birth certificate and a Social Security number. He renewed the identification card in 2011 and 2012 and obtained a driver’s license using the same documents he used to obtain the state-issued identification card.
The U.S. Postal Inspection Service, ATF and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Cattle Company and Veterinarian Indicted for False Health Certificates on LivestockRead the Press Release
LEXINGTON, Ky. – A veterinarian and a cattle company were indicted today for using false interstate certificates of veterinary inspection, to ship tens of thousands of cattle interstate, in violation of federal law.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; William Swartz, Area Director, United States Department of Agriculture Animal Plant Health Inspection Service; and Mark McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, made the announcement.
A federal grand jury in Lexington returned an indictment charging Eugene Barber & Sons, Inc. (“Barber & Sons”), a cattle company based in Lexington with one count of conspiracy, one count of moving cattle in violation of federal law, and one count of aiding and abetting a false statement. The indictment also charges veterinarian John M. Moran, 64, of Flemingsburg, Kentucky, with one count of conspiracy, one count of aiding and abetting moving cattle in violation of federal law, and one count of making a false statement.
The indictment alleges that Barber & Sons and Moran conspired to violate the Animal Health Protection Act, which protects the health and welfare of the public by preventing, detecting, and eradicating the spread of diseases in animals that are shipped within the United States. Federal law requires that an accredited veterinarian inspect cattle prior to their shipment, and then file certificates attesting to that inspection with appropriate state authorities. The indictment alleges that Moran falsely certified he had inspected the cattle Barber & Sons had shipped, when in fact he had merely pre-signed the interstate certificate of veterinary inspection without inspecting the cattle. According to the indictment, between January 28, 2013 and September 25, 2015, Moran certified at least 600 false interstate certificates of veterinary inspection for shipment of more than 60,000 cattle. In exchange, he was paid over $19,000 by Barber & Sons.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The USDA and FDA are investigating the case. Assistant U.S. Attorney Kate K. Smith is prosecuting the case. The Defendants’ initial appearance on the indictment is currently scheduled for September 21, 2018, at 10:30 a.m., in Lexington.
Burlington Man Arrested for Possessing Child PornographyRead the Press Release
BOSTON – A former civilian employee of the Hanscom Air Force Base was arrested today for possessing thousands of files depicting child pornography, including a manual titled “How to Practice Child Love.”
William Gates, 41, of Burlington, was charged with one count of possession of child pornography. Gates appeared in federal court today and was ordered detained pending a detention hearing scheduled for tomorrow.
According to the charging document, in November 2017, law enforcement in Boston received information from authorities in Australia about an investigation involving an online personal photo site, known for hosting child pornography. Australian investigators observed a user of the site posting photographs of, and comments regarding, an approximately six-year-old boy on a school bus, who the user identified as a child on a field trip that the user was chaperoning. Australian and U.S. authorities were able to trace the account activity to IP addresses assigned to Gates’s home in Burlington and to Hanscom Air Force Base, where Gates was a civilian employee at the time.
It is alleged that during an interview with law enforcement in early December 2017, Gates admitted that he used his iPhone to take some of the photographs while chaperoning a field trip to the zoo with his son’s elementary school. After Gates provided written consent for the search of certain electronic devices, law enforcement conducted a preliminary exam of two of the defendant’s digital devices and allegedly located approximately 51 images of child pornography. A month later, on Jan. 8, 2018, agents executed a search warrant at Gates’s home, where they found more than 900 child pornography files. Gates was subsequently indicted by a Middlesex grand jury for possession of child pornography.
During the week of Aug. 27, 2018, it is alleged that further forensic analysis of one of Gates’ laptops revealed an encrypted volume, where approximately 2,900 images and 70 videos of child pornography were hidden, as well as a document titled, “How to Practice Child Love,” which purports to serve as a guide to teach adults how to practice sex with children.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. 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 Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Burlington Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brentwood Man Sentenced to 51 Months in Prison for Bank RobberyRead the Press Release
CONCORD - Michael Holt, 49, of Brentwood, was sentenced in federal court to 51 months in prison for bank robbery, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 13, 2018, Michael Holt walked into a TD Bank branch in Stratham, New Hampshire, and gave a teller a note claiming to have a gun and demanding money. The teller gave Holt a quantity of United States currency. On January 19, 2018, Holt entered a People’s United Bank branch in Exeter, New Hampshire, and again gave a teller a note stating that he had a gun and demanding money. He again received a quantity of United States currency. Comparing bank surveillance video of each offense and witness descriptions allowed Stratham and Exeter police to determine that the same person had committed both crimes. Images from the bank surveillance videos were broadcast on local news outlets and distributed via social media, leading to the identification of Holt, who was apprehended soon after.
Holt previously pleaded guilty to two counts of bank robbery on May 10, 2018.
“Bank robberies are violent crimes that often can jeopardize the safety of bank employees, customers, and other members of the community,” said U.S. Attorney Murray. “By working with our law enforcement partners to combat violent crime, our goal is to ensure that the citizens of the Granite State feel safe in their local communities.”
“On multiple occasions, Mr. Holt threatened bank tellers with a firearm if they did not comply with his demands for cash,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “Today’s sentencing reflects the FBI’s on-going commitment in working with our law enforcement partners to protect the streets of the Granite State, from any individuals who threaten innocent citizens or commit violent crimes.”
This matter was investigated by the Federal Bureau of Investigation, Stratham Police Department, and Exeter Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Baltimore Man Charged with Running Tax Refund Scam in Central New YorkRead the Press Release
SYRACUSE, NEW YORK – Arkmallah Hilliard, 38, of Baltimore, Maryland, was arraigned today in federal court in Syracuse on one count of conspiring to defraud the United States, announced United States Attorney Grant C. Jaquith, Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office, and Special Agent in Charge Leigh-Alistair Barzey, Defense Criminal Investigative Service (DCIS), Northeast Field Office.
Hilliard is charged by indictment for conspiring with former Utica resident Anas Wilson and others to defraud the IRS by filing false and fraudulent income tax returns in the names of various individuals and obtaining tax refunds to which they knew they were not entitled. The indictment alleges that Hilliard used his own bank accounts and other bank accounts he controlled that had been opened by co-conspirators to receive the tax refunds, after which Hilliard and others withdrew, spent, and transferred the money for their own purposes. Anas Wilson previously pled guilty to similar charges in federal court in Syracuse and is serving a 12-year prison sentence.
The charge filed against Hilliard carries a maximum sentence of 5 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of supervised release of up to 3 years. The indictment also includes a forfeiture allegation/ money judgment of up to $462,107.00. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
United States Magistrate Judge David E. Peebles ordered Hilliard detained pending a trial to be scheduled later this year before Senior United States District Judge Frederick J. Scullin, Jr.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Defense Criminal Investigative Service (DCIS) and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Atlanta Man Charged with International Money Laundering, Fraud, Identity Theft and Immigration CrimeRead the Press Release
ATLANTA - Onosemeraja Idodo-Umeh, a native of Nigeria who was residing in Atlanta, was arraigned on federal charges in an 18-count indictment that was unsealed yesterday. Idodo-Umhel is charged with conspiracy to commit wire fraud and bank fraud, 10 counts of wire fraud, five counts of aggravated identity theft, one count of conspiracy to commit money laundering, and one count of unlawful procurement of naturalization. Idodo-Umeh was indicted by a federal grand jury on August 7, 2018.
“Idodo-Umeh allegedly moved a substantial amount of stolen money out of the United States to Nigeria, doing so with the help of gang members already indicted by this office,” said U.S. Attorney Byung J. “BJay” Pak. “By prosecuting not only the gang members, but also those who allegedly reaped the financial benefit of their crimes, we will work to dismantle the entire criminal network.”
“Onosemeraja Idodo-Umeh allegedly perpetrated multiple fraudulent schemes over many years, including by conspiring with violent gang members, and then laundered the illicit proceeds,” said Assistant Attorney General Benczkowski. “He also allegedly obtained U.S. citizenship only after lying to immigration authorities. These extremely troubling charges once again demonstrate the Department of Justice’s resolve to protect the American people and our financial system from transnational fraud.”
“This arrest was the result of an investigation led by the FBI’s Safe Streets Gang Task Force,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “It is another example of the expanding criminal enterprises conducted by gangs, and why we continue to dedicate significant resources to dismantling them.”
“This case illustrates the complexity of investigating financial crimes being exploited by transnational criminal networks,” said Special Agent in Charge Nick Annan of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) – Atlanta Division. “With this indictment, HSI special agents and our law enforcement partners, have increased the security of our nation, while also making our own communities safer.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The indictment alleges a conspiracy spanning approximately seven years, in which Idodo-Umeh and his co-conspirators perpetrated fraud schemes using stolen identities, compromised credit card numbers, and stolen and counterfeit checks. The alleged conspiracy involved, among other tactics, the creation of fake businesses to which Idodo-Umeh and his co-conspirators, including members of the Gangster Disciples gang, would make credit card payments using stolen credit card numbers.
The indictment also alleges the use of forged checks written for tens of thousands of dollars each. Idodo-Umeh would allegedly funnel the fraud proceeds through bank accounts belonging to a network of subordinates who he recruited and paid on commission, to transfer dirty money back and forth between the United States and Nigeria.
The indictment also alleges that Idodo-Umeh unlawfully obtained his naturalized U.S. citizenship by falsely telling immigration authorities he had not committed any crimes when in fact he was engaged in the charged fraud.
Onosemeraja Idodo-Umeh, 41, of Atlanta, Georgia was arraigned before U.S. Magistrate Judge King on federal charges of conspiracy to commit wire fraud, bank fraud and money laundering. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Division, the Internal Revenue Service, and the Cobb County Police Department.
Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section, and Conor Mulroe, Trial Attorney for the Department of Justice’s Organized Crime and Gang Section, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Asbury Park, New Jersey, Man Arraigned on Charges of Cocaine Base DistributionRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was arraigned today before U.S. District Judge Michael A. Shipp in Trenton federal court, on an indictment charging him with distributing cocaine base, more commonly known as crack, U.S. Attorney Craig Carpenito announced.
Sean Lambert, a/k/a “Pretty Tone,” 47, is charged by indictment with one count of distribution of 28 grams or more of cocaine base and one count of distribution of a quantity of cocaine base. At the time of the alleged crimes, Lambert was on federal supervised release following a 120-month prison sentence for illegally possessing a firearm. Trial is scheduled for April 8, 2019.
According to documents filed in this case:
On Feb. 28, 2018, and March 9, 2018, Lambert sold cocaine base out of an apartment in a multi-family building in Asbury Park. During the March 9, 2018, sale, Lambert sold more than 28 grams of cocaine base.
Because of his prior felony drug distribution conviction, the drug distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum $8 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Albuquerque Felon Sentenced to Eight Years for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Morris Mora, 30, of Albuquerque, N.M., was sentenced this morning in federal court to 96 months in prison followed by three years of supervised release for violating the federal firearms laws by being a felon in possession of a firearm and ammunition. Mora was ordered to serve his federal sentence consecutive to a seven-year sentence previously imposed on a related state conviction in the 2nd Judicial District Court for the State of New Mexico.
Mora, whose criminal history includes convictions for aggravated assault with a deadly weapon, aggravated assault on a peace officer with a deadly weapon, and aggravated fleeing from a law enforcement officer, was prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of making communities in New Mexico safer places for people to live and work.
Mora was charged by criminal complaint on Aug. 7, 2017, with being a felon in possession of a firearm and ammunition. According to the complaint, officers of the Albuquerque Police Department (APD) arrested Mora on state charges, including a related firearms charge, in the North Valley of Albuquerque on March 8, 2017, after the APD officers located a firearm and ammunition in Mora’s backpack incident to his arrest for allegedly driving a stolen vehicle. Mora was transferred to federal custody from state custody in Sept. 2017. The related state firearms charges were dismissed in favor of federal prosecution.
Mora subsequently was indicted on Sept. 6, 2017, and was charged with being a felon in possession of a firearm and ammunition on March 8, 2017, in Bernalillo County, N.M. At the time, Mora was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
On May 4, 2018, Mora pled guilty to the indictment and admitted that on March 8, 2017, he was in possession of a firearm and ammunition which were located inside a backpack when Mora was stopped by law enforcement officers while driving a vehicle. Mora acknowledged that he was prohibited from possessing firearms or ammunition in March 2017, because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Howard R. Thomas prosecuted the case.
ADX Inmate Sentenced for Hiding Contraband on His PersonRead the Press Release
DENVER – Shawn Shields, age 45, and a resident of United States Penitentiary -- Administrative Maximum (ADX) in Florence, Colorado, was sentenced yesterday by U.S. District Court Judge Robert E. Blackburn to serve 37 months in federal prison, to run consecutive to his existing sentence for Second Degree Murder. After completing his prison sentence, Judge Blackburn ordered Shields to serve 3 years on supervised release. The defendant, who appeared at the sentencing hearing in custody, was remanded at its conclusion. The announcement was made by U.S. Attorney Bob Troyer in conjunction with the U.S. Bureau of Prisons Special Investigative Services.
Shields was first indicted on May 5, 2015. After lengthy litigation the defendant participated in a jury trial that started on February 20, 2018. The trial lasted three days, when the jury found the defendant guilty of possessing contraband in prison, namely two homemade weapons known as shanks. He was sentenced yesterday, September 5, 2018.
According to court records as well as statements and testimony given during trial, on March 18, 2015, Shields was incarcerated at ADX in Florence, Colorado. Specifically, he was housed in the J-Unit, a step-down unit at ADX. That morning, Shields and another inmate were working out on the lower tier of the J-Unit. Another inmate was standing near them, but speaking to another inmate through his closed cell door. A correctional officer heard a confrontation between the inmate speaking at the closed cell yelling “come here and I’ll break your jaw” to someone. Inmates started to flee, when Shields quickly walked to his cell where he knelt down and appeared to retrieve an item from a rolled up towel. He then discretely tucked the item into his waistband, and continued to pace the upper tier of the housing unit. After a few minutes the defendant and the inmate involved in the confrontation engaged in a prolonged and casual conversation on the upper level of the housing unit. The unit was shortly thereafter locked down.
Later that morning, investigators from the Special Investigative Services Department, began to conduct an investigation. Inmates involved in the incident were sent through a SecurPASS machine, which is a whole body scanner. When it was Shield’s turn to be scanned, the first few scans showed an object within the lower abdominal area of the defendant’s body. A correctional officer ordered another scan of Shields, this time with his arms raised higher. The object was still visible on the scan. Shields told the officer “if you show it to me on the screen, I will give it up to you.” Upon viewing the image, the defendant was taken into a separate location. There he reached his hand down his pants, and retrieved an unknown object from his rectum. The object, which was covered in blood and feces, was deposited in a plastic bag. After documenting the new found object, it was unwrapped and photographed. It became clear that the unknown object was actually a homemade weapon, commonly referred to as a shank. There was a larger weapon that measured 4.5 inches. There was also a smaller weapon, resembling a razor blade, measuring 1.5 inches.
This case was investigated by the U.S. Bureau of Prisons Special Investigative Services Department. The defendant was prosecuted by Assistant U.S. Attorney Valeria Spencer and Special Assistant U.S. Attorney Clay Cook.
5 September 2018
Virginia Resident Sentenced to 9 Years in Prison for Robbery of a Gas Station in Nashville, IllinoisRead the Press Release
Jordan T. Macbeth, 19, a resident of Culpepper, Virginia, was sentenced today in federal court for robbing the BP gas station in Nashville, Illinois. During the January 31 robbery, Macbeth brandished a loaded firearm and pointed it at the clerk. He was later caught, charged, and convicted after pleading guilty to a two-count federal indictment.
Macbeth received a nine-year sentence – two years for committing a robbery affecting interstate commerce (known as a Hobbs Act robbery) and an additional seven years for brandishing a firearm during a crime of violence. Macbeth was also ordered to serve a three-year term of supervised release and to pay the gas station $461.79 in restitution.
The case was investigated by the Nashville, Illinois, Police Department, the Washington County, Illinois, Sheriff’s Office, the United States Army Criminal Investigations Command, and the Federal Bureau of Investigation. The case was prosecuted byAssistant United States Attorney Angela Scott.
Virginia Man Indicted for Producing Child PornographyRead the Press Release
A federal grand jury in Alexandria, Virginia returned an indictment today charging a Hamilton, Virginia man with production of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, made the announcement.
According to court documents, in November 2017, Logan Roy McCauley, 25, drove to West Virginia, picked up a minor female he had met online, and drove her to his residence in Hamilton. The minor female’s family reported her missing, and law enforcement was able to locate her at McCauley’s residence by tracing Internet activity associated with one of the minor female’s social media accounts. McCauley admitted to law enforcement that he had engaged in sexual intercourse with the minor and had used his Apple iPhone to record one of the sexual encounters.
The case is being investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, which is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. The Loudoun County Sheriff’s Office also assisted in the investigation. Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Alexander Berrang of the Eastern District of Virginia are prosecuting the case.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Verdigre Man Sentenced for Tax EvasionRead the Press Release
United States Attorney Joe Kelly announced today that on August 31, 2018, United States District Court Judge Robert F. Rossiter, Jr., sentenced Daniel Kinnison, age 63, of Verdigre, Nebraska, for his conviction for tax evasion. Kinnison was sentenced to eighteen months’ imprisonment, a three-year term of supervised release, and ordered to pay restitution in the amount of $607,210 to the IRS. During the years 2002 through 2005 the Defendant, a participant in multi-level marketing companies, evaded the payment of Federal Income Taxes totaling more than $607,000 by concealing and placing his assets including real estate and salaried income in other individuals’ names in order to defeat the IRS’s ability to collect on said taxes. Additionally, he falsely stated to the IRS that he had no income generating employment during the period 2009 to the Present.
Karl Stiften, Special Agent in Charge of IRS Criminal Investigations, said, “Today’s sentence is a reminder that there are substantial consequences for this type of criminal behavior.”
This case was investigated by the Criminal Investigation Division of the IRS.
U.S. Attorney Recognizes Fresno County District Attorney’s Office and Bakersfield Police Detective’s Contributions to the Mission of the U.S. Attorney’s Office and Department of JusticeRead the Press Release
FRESNO, Calif. — U.S. Attorney McGregor W. Scott is pleased to announce two winners of the Eastern District of California Law Enforcement Awards, recognizing the outstanding professionalism and dedicated public service of our local and state law enforcement partners. These awards, presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California, recognize outstanding collaboration between federal, state, and local law enforcement in addressing public safety issues in this region.
The winner of the Fresno division’s Outstanding Investigator Award is Detective Robert Pair of the Bakersfield Police Department for his outstanding work as case agent for Operation Blind Mice, a multi-agency investigation into Bakersfield’s West Side Crips gang. Detective Pair was instrumental in obtaining federal indictments against 11 West Side Crips members or associates as well as state charges against approximately 30 individuals for crimes ranging from burglary to murder. He helped draft wire applications, monitored wires, and conducted associated investigations. As a member of the Bakersfield Police Department’s gang squad, Detective Pair brought an extensive knowledge of the West Side Crips gang to the investigation that the other investigators relied upon repeatedly.
The winner of the Fresno division’s Outstanding Law Enforcement Agency Award is the Fresno County District Attorney’s Office for its contributions to law enforcement in the Central Valley. In recent years, that office and the U.S. Attorney’s Office have worked together closely as partners to tackle the violent gang problem in Fresno County, including MS-13, as well as on other major cases and outreach efforts. Not only is the Fresno County District Attorney’s Office a reliable partner in Project Safe Neighborhood, a national program to reduce violent crime, it has been an effective partner in investigating and prosecuting child pornography and sexual exploitation cases.
U.S. Attorney Scott stated, “Both winners of this year’s award have demonstrated a deep commitment to collaborating with our office and other federal, state and local partners to work toward the mutual goal of public safety. Detective Pair’s tireless work has made Bakersfield a safer place for its residents. The open lines of communication between our office and the District Attorney’s Office have ensured that our violent-crime fighting efforts are maximized. We are grateful to their continued partnership in our joint effort to make Fresno County a safer place to live.”
Two Mexican Nationals Charged in $10 Million Marijuana Grow OperationRead the Press Release
KANSAS CITY, Mo. – Two Mexican nationals were charged in federal court today for their roles in a Daviess County, Mo., marijuana-growing operation where law enforcement officers seized nearly $10 million worth of plants.
Sergio Medina-Perez, also known as “Chapo,” 44, and Miguel Pulido-Maldonado, also known as “Mona,” 27, were charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Both men are citizens of Mexico who were living in California prior to coming to Missouri.
Today’s federal criminal complaint charges Medina-Perez and Pulido-Maldonado with manufacturing and distributing 1,000 or more marijuana plants.
The owners of the three real estate tracts that comprise the property in Daviess County live in California. Law enforcement officers, who had been keeping the marijuana grow site under surveillance, executed a search warrant at the property on Aug. 27, 2018. The plants were in a clearing inside a large area of timber. A distinct path led from a building in the wooded area to the area containing the marijuana plants. One person who was present at the marijuana grow site fled into the wooded area and escaped.
Officers located approximately 2,464 cultivated marijuana plants. With an approximate street value of $1,800 per pound of marijuana, this results in approximately $9,757,440 in marijuana plants seized.
Medina-Perez was arrested near the grow site on Aug. 29, 2018. Pulido-Maldonado was arrested on Aug. 30, 2018; he was covered in mud, his arms had numerous bites from either mosquitos or other insects and it appeared he had been outside for several days. Medina-Perez and Pulido-Maldonado have been held on immigration detainers since their arrests.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Northwest Missouri Drug Task Force, the Missouri State Highway Patrol, the Daviess County, Mo., Sheriff’s Department, the Grundy County, Mo., Sheriff’s Department, the Buchanan County, Mo., Sheriff’s Department, the Livingston County, Mo., Sheriff’s Department, the Drug Enforcement Administration and the Department of Homeland Security.
Two Individuals Associated with a Mental Health Company Plead Guilty to Health Care Fraud and Tax EvasionRead the Press Release
Two individuals associated with a mental health company pleaded guilty to health care fraud related to the submission of false claims to Medicaid and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Haydn Thomas, 44, formerly of Durham, North Carolina, pleaded guilty today to one count of making a false statement relating to health care matters and one count of tax evasion. Catinia Farrington, 44, also formerly of Durham, pleaded guilty yesterday to one count of health care fraud conspiracy and one count of tax evasion.
According to documents and information provided to the court, Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham. Farrington submitted false claims to Medicaid for mental health services that were not performed. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid that resulted in Medicaid paying approximately $4 million to DCMBHS. Also during the relevant period, Thomas worked as the practice manager for an oral surgeon and provided Farrington with name and Medicaid number of a dental patient, causing the filing of a false medical claim.
Farrington and Thomas diverted millions of dollars from DCMBHS for their own personal use and evaded income taxes by, among other things, transferring money to various business bank accounts and paying personal expenses from the business bank accounts.
The sentencing hearing for Farrington has been set for February 15, 2019. The sentencing hearing for Thomas has been set for February 21, 2019. Farrington faces a statutory maximum sentence of 10 years in prison for conspiracy to commit health care fraud and five years in prison for tax evasion. Thomas faces five years in prison for making a false statement relating to health care matters and five years in prison for tax evasion. Farrington and Thomas also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of the Internal Revenue Service, the U.S. Department of Health and Human Service, Office of Inspector General, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (MID), who conducted the investigation, and Assistant U.S. Attorney Robert Hamilton, Trial Attorney Mara Strier of the Tax Division, and Special Assistant U.S. Attorney Michael Heavner of MID, who are prosecuting the case.
Two Individuals Associated with A Mental Health Company Plead Guilty to Health Care Fraud and Tax EvasionRead the Press Release
WASHINGTON - Two individuals associated with a mental health company pleaded guilty to health care fraud related to the submission of false claims to Medicaid and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Haydn Thomas, 44, formerly of Durham, North Carolina, pleaded guilty today to one count of making a false statement relating to health care matters and one count of tax evasion. Catinia Farrington, 44, also formerly of Durham, pleaded guilty yesterday to one count of health care fraud conspiracy and one count of tax evasion.
According to documents and information provided to the court, Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham. Farrington submitted false claims to Medicaid for mental health services that were not performed. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid that resulted in Medicaid paying approximately $4 million to DCMBHS. Also during the relevant period, Thomas worked as the practice manager for an oral surgeon and provided Farrington with name and Medicaid number of a dental patient, causing the filing of a false medical claim.
Farrington and Thomas diverted millions of dollars from DCMBHS for their own personal use and evaded income taxes by, among other things, transferring money to various business bank accounts and paying personal expenses from the business bank accounts.
The sentencing hearing for Farrington has been set for February 15, 2019. The sentencing hearing for Thomas has been set for February 21, 2019. Farrington faces a statutory maximum sentence of 10 years in prison for conspiracy to commit health care fraud and five years in prison for tax evasion. Thomas faces five years in prison for making a false statement relating to health care matters and five years in prison for tax evasion. Farrington and Thomas also face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of the Internal Revenue Service, the U.S. Department of Health and Human Service, Office of Inspector General, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (MID), who conducted the investigation, and Assistant U.S. Attorney Robert Hamilton, Trial Attorney Mara Strier of the Tax Division, and Special Assistant U.S. Attorney Michael Heavner of MID, who are prosecuting the case.
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Two Defendants Arrested for Trafficking Firearms from Virginia to Queens and Long IslandRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Derrick Hughes and Ronald Robinson with a gun trafficking conspiracy involving the sale of at least 19 firearms, including an AR-15 multi-caliber rifle. The defendants were arrested today. Hughes was arraigned this afternoon in federal court in Central Islip before United States Magistrate Judge A. Kathleen Tomlinson. Robinson was arraigned this afternoon at the federal courthouse in Norfolk, Virginia. Both defendants were ordered detained pending bail hearings.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the indictment.
“As alleged in the indictment, the defendants’ illegal trafficking of firearms brought deadly weapons to the streets of Long Island,” stated United States Attorney Donoghue. “These arrests demonstrate the commitment by this Office and our law enforcement partners to save lives by stopping the flow of illegal firearms into New York.” Mr. Donoghue thanked the Nassau County Sheriff’s Department, Suffolk County Sheriff’s Department, New York State Police and the Hempstead Police Department for their assistance during this investigation.
“Many gangs rely on illegal weapons to carry out criminal acts because they’re harder to trace,” stated FBI Assistant Director-in-Charge Sweeney. “The two subjects in this investigation were allegedly trafficking illegal weapons along the 95 interstate corridor that leads directly onto Long Island. We are doing more and more every day with our law enforcement partner agencies to stop this pipeline, and keep deadly weapons out of the hands of people who shouldn’t have them.”
“The defendants as alleged were part of a scheme that put illegal firearms onto the streets of their community,” stated ATF Special Agent-in-Charge Benedict. “ATF works with our federal, state and local counterparts to disrupt the flow of guns to our streets and prevent violent crime. I would like to thank all of our partners that made this case possible. I would also like to thank the United States Attorney’s Office for prosecuting the case.”
“The indictments of both defendants Hughes and Robinson for illegal firearms trafficking conspiracy is a clear example of the high level of interagency cooperation during this investigation,” stated NCPD Commissioner Ryder. “Not only are we taking criminals off the streets, we are also decreasing the amount of illegal firearms that enter our state and county. Every illegal firearm that we confiscate is another positive step on how we protect our residents and Police Officers. I would like to congratulate all of the investigative agencies and their dedicated members who played a role in this case.”
According to the indictment, the gun-trafficking operation involved at least seven illegal firearms transactions on Long Island between January 2018 and April 2018, with transactions taking place in Rosedale and Valley Stream. Robinson allegedly purchased two to three firearms at a time in Virginia, and within days, transported them for distribution in New York. Hughes arranged meetings with customers for the illegal sale of the firearms.
If convicted, Hughes and Robinson face a maximum sentence of five years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Monica K. Castro is in charge of the prosecution.
The Defendants:
RONALD ROBINSON
Age: 43
Hampton, VirginiaDerrick Hughes
Age: 47
Queens, New YorkE.D.N.Y. Docket No. 18-CR-385 (JMA)
Two Charged for Drug Lab ExplosionRead the Press Release
Assistant U.S. Attorneys Kyle B. Martin and Matthew J. Sutton (619) 546-7726 and (619) 546-8941
NEWS RELEASE SUMMARY – September 5, 2018
SAN DIEGO – Two defendants, Gregory Amos and Christopher Hernandez, were charged this week in connection with a March 2018 explosion and fire resulting from their operation of a butane hash oil lab in a residential Vista neighborhood. Amos and Hernandez are scheduled to be arraigned before U.S. Magistrate Judge Jan M. Adler on Friday, September 7 at 2:00 p.m.
According to the complaint, in the morning hours of March 27, 2018, an explosion and fire on the balcony of a residence located on Barbara Drive in Vista shattered the glass door of the balcony and blasted dozens of cans of butane into the surrounding area. In the wake of the explosion, investigators discovered an active Butane Hash Oil (BHO) lab in the residence where the fire originated. After extinguishing the fire and securing the scene, investigators located a number of items related to a BHO manufacturing laboratory, including kilograms of marijuana, hundreds of cans of butane, glass tubes and other manufacturing items. Agents also seized approximately one pound of cocaine and three firearms including a Del-Ton DT-15 5.56 mm rifle and a Smith and Wesson 9 mm semi-auto pistol.
BHO labs are highly dangerous facilities used to extract tetrahydrocannabinol (THC), a Schedule I controlled substance found in marijuana plants, through the use of butane. The manufacture of BHO is a violation of federal law, Title 21, U.S. Code, Section 841. The manufacture of BHO is also a violation of California state law, Health and Safety Code, Section 11379.6. Since January 2018, law enforcement has responded to at least 17 illicit BHO labs in San Diego County (three of which had fires and or explosions).
BHO is similar in appearance to honey or butter. It contains extremely high levels of THC and can be up to four times more potent than high-grade marijuana. BHO is commonly manufactured by packing marijuana into a glass, plastic, or metal tube. Butane is then sprayed into the top of the tube. The butane strips the marijuana of its cannabinoid-containing oils, which drip from the bottom of the tube, often through a filter and into a holding container. The end product is highly-profitable and can be ingested as an oil, consumed in edibles, or solidified to make concentrated forms of cannabis known as “wax.”
During the manufacture of BHO, butane, a flammable gas that is odorless, colorless, and heavier than air, can evaporate out of the substance and collect on the floor, accumulating to explosive levels without proper ventilation. This process creates an invisible, but very real, risk of fires, explosions, and chemical burns.
“BHO manufacturing poses an enormous threat to human life,” said U.S. Attorney Adam L. Braverman. “No one is safe: not those involved in the illegal BHO manufacturing themselves; not those who happen to be living or visiting nearby; not first responders. Together with our law enforcement partners, we will aggressively prosecute all who threaten public safety by manufacturing these deadly substances.”
“Drugs are dangerous. End of story. Nothing would have exploded if someone did not want to dab high potency THC,” said Special Agent in Charge Karen Flowers. “You have a choice. Your choice has a consequence. Those consequences apply to those around you. Just ask their neighbors.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The government’s case is being prosecuted by Assistant U.S. Attorneys Kyle B. Martin and Matthew J. Sutton.
DEFENDANTS Case Number: 18MJ4780-JMA
Gregory Allen Amos, Age: 23 Vista, California
Christopher Paul Hernandez Age: 34 San Diego, California
SUMMARY OF CHARGES
Conspiracy to Distribute Hashish Oil - 21 U.S.C. §§ 841(a)(1) and 846
Maximum penalty: 5 years’ imprisonment and $250,000 fine
Endangering Human Life While Illegally Manufacturing Hashish Oil - 21 U.S.C. § 858
Maximum penalty: 10 years’ imprisonment and $250,000 fine
Possession of Cocaine with Intent to Distribute - 21, U.S.C., § 841(a)(1);
Maximum penalty: 20 years’ imprisonment and $1,000,000 fine
Possession of Firearm in Furtherance of Drug Trafficking Crime -18 U.S.C. § 924(c)
Mandatory 5 years’ imprisonment consecutive to drug trafficking sentence
AGENCIES
Drug Enforcement Administration
San Diego Sheriff’s Department
San Diego Police Department
Vista Fire Department
Department of Justice, Organized Crime Drug Enforcement Task Forces
*An indictment or complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Wilson Men Indicted on Drug Conspiracy ChargesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury in Wilmington has returned indictments charging KENNETH RAY BARNES, a/k/a “Kenny,” age 49 of Wilson, NC, and JEFFREY BERNARD MOORE, a/k/a “Cookieman,” age 48 of Wilson, NC, with conspiracy to distribute and possession with the intent to distribute five hundred grams or more of cocaine. Additionally, TONY LYNN WINSTEAD, age 60 of Wilson, NC, was indicted with conspiracy to distribute and possession with intent to distribute a quantity of cocaine. BARNES, MOORE, and WINSTEAD were each arrested yesterday in Wilson, NC by the Wilson Police Department and United States Marshal’s Service.
If convicted, BARNES and MOORE would face a minimum term of imprisonment of 5 years and maximum penalties of 40 years’ imprisonment, a $5,000,000 fine, and a term of supervised release following any term of imprisonment. If convicted, WINSTEAD would face maximum penalties of 20 years’ imprisonment, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The case is a part of the U.S. Attorney’s Office for the Eastern District of North Carolina’s “Take Back North Carolina Initiative” and is being investigated by the Wilson Police Department and the Drug Enforcement Administration.
Three Defendants Charged in Gun Store BurglaryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dakota J. Sarfaty, 21, Marcos D. Guzman, 34, and Luis D. Marcano-Agosto, 33, all of Rochester, NY, were arrested and charged by criminal complaint with various federal firearms offenses in relation to the theft of firearms from Chinappi’s Firearms & Supplies in Spencerport, NY, on two separate occasions in August 2018.
Specifically, Sarfaty is charged with theft of firearms from a Federal Firearms Licensee, possession of stolen firearms, and use of a firearm during and in relation to a drug trafficking crime; Guzman is charged with possession of stolen firearms and possession of firearms by a convicted felon; and Marcano-Agosto is charged with possession of stolen firearms. The charges against Sarfaty carry a minimum penalty of five years in prison, and a maximum penalty of life, and a $250,000 fine, while the charges against Guzman and Marcano-Agosto carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the complaint, the charges stem from two burglaries that occurred at Chinappi’s Firearms & Supplies in Spencerport on August 12, 2018, and August 16, 2018. During the burglaries, numerous firearms were stolen from the basement of the store. An interior surveillance camera captured images of defendant Sarfaty breaking into the store and removing numerous boxes containing firearms. Law enforcement officers arrested Sarfaty on August 17, 2018, at which time he was found to have a loaded .40 caliber handgun, which had been stolen from Chinappi’s Firearms & Supplies, in his waistband.
According to the complaint, 15 of the stolen firearms were sold and one was traded for a quantity of cocaine. Through further investigation, law enforcement officers recovered 10 additional firearms that had been stolen from Chinappi’s. Eight of those firearms were found in the backyard at 152 Avenue B in Rochester, which is the location at which Guzman was arrested. Marcano-Agosto was arrested after fleeing 152 Avenue B as law enforcement officers approached the location.
The defendants are scheduled to make an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman on September 6, 2018 at 9:30 a.m.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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The U.S. Attorney’s Office among numerous community partners hosting a daylong conference Sept. 6 focused on solutions to the opioid and narcotics epidemicRead the Press Release
The United States Attorney’s Office and Cleveland Clinic, together with numerous community partners, will be hosting a daylong conference on Sept. 6 focused on solutions to the opioid and narcotics epidemic.
The conference will take place at the Intercontinental Hotel, 9801 Carnegie Ave. It will mark five years since many of the partners first joined together to raise awareness about the growing heroin and opioid problem that had surfaced in Northeast Ohio and throughout the country. That conference resulted in a Community Action Plan which focused on solutions in four different areas: education and prevention, treatment, healthcare policy and law enforcement.
The 2013 conference and Community Action Plan led to the formation of the U.S. Attorney’s Office Heroin and Opioid Task Force, which was hailed as a national model and replicated across the country. Members of the group contributed to numerous achievements in the intervening years, including increasing access to Narcan, developing new protocols to how police handle drug overdose scenes, increased training for physicians about the potential side effects of prescription opioids, public awareness campaigns, and the formation of a consortium to coordinate the response from the various medical systems in Greater Cleveland, among others.
The conference on Sept. 6 will focus on how the crisis has changed in the past five years, and fashioning responses that incorporate best practices and lessons learned. The emphasis will be on refining the Community Action Plan and coordinating comprehensive responses to what is both a public health and law enforcement crisis.
“The scope and nature of the problem has changed, in part because of the introduction of fentanyl and carfentanil, so our responses need to evolve as well,” U.S. Attorney Justin Herdman said. “The hope is this conference will help coordinate the efforts to turn the tide on an epidemic that has caused a staggering amount of pain and loss in our community.”
“Conferences like this are so critical to our community. We need so many parts of our society to take action to have an impact on this terrible problem,” said David Streem, M.D., Section Head of the Alcohol and Drug Recovery Center at Cleveland Clinic. “First responders, treatment programs, the courts, hospitals, schools, the recovery community—these and so many more have important roles to play.”
The agenda for the Sept. 6 conference is still being finalized, but topics expected to be covered include the need to develop a common set of data that can be shared, expanding programs that have been shown to work, such as quick response teams, recovery coaches and medically assisted treatment, efforts to reduce the number of pain pills prescribed, and others.
Among the groups and organizations that have participated in the planning and/or are expected to present at the conference include: the U.S. Attorney’s Office, Cleveland Clinic, MetroHealth System, University Hospitals, St. Vincent Charity Hospital, Cuyahoga County, City of Cleveland, Cuyahoga County Medical Examiner’s Office, the ADAMHS Board of Cuyahoga County, Cuyahoga County Department of Health, Circle Health, Cleveland Division of Police, Drug Enforcement Administration, Federal Bureau of Investigation and others.
A complete agenda is below:
OPIOIDS: A CRISIS STILL FACING
OUR ENTIRE COMMUNITY
Thursday, Sept. 6, 2018
InterContinental Hotel, Cleveland
8:00 - 8:30 a.m. Registration
8:30 - 850 a.m. Welcome
- Cleveland Clinic Chief Legal Officer; Chief Governance Officer and Secretary David W. Rowan
- United States Attorney Justin Herdman
- Cuyahoga County Executive Armond Budish
8:50 - 9:35 a.m. Community Accomplishments
Moderator: Bridget Brennan, U.S. Attorney’s Office
- Law Enforcement: Timothy Plancon (Drug Enforcement Administration)
- The Office of Opioid Safety: Dr. Joan Papp (MetroHealth)
- Treatment and Recovery: Scott Osiecki (Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County)
- Hospitals and Medical Community: Dr. Randy Jernejcic (University Hospitals)
- Medically Assisted Treatment: Dr. Robert Bales (Cleveland Clinic)
- The Judicial System: Judge Joan Synenberg (Cuyahoga County Common Pleas Court)
9:35 - 10:00 a.m. The Evolving Nature of the Problem
- Dr. Thomas Gilson (Cuyahoga County Medical Examiner)
10:00 - 10:15 a.m. Perspectives from the Cleveland Clinic
- Dr. Tom Mihaljevic (Cleveland Clinic)
10:15 - 10:30 a.m. Break
10:30 - 11:15 a.m. The Need for Common and Shareable Data
Moderator: U.S. Attorney Justin Herdman
- Daniel Flannery (Case Western Reserve University)
- Hugh Shannon (Cuyahoga County Medical Examiner’s Office)
- Nick Zingale (Cleveland State University)
- Mark Richey (BioEnterprise)
- John Garrity (Alcohol, Drug Addiction and Mental Health Services Board of Cuyahoga County)
- Frank Perhacs (Ohio HIDTA)
11:15 - noon The Northeast Ohio Hospital Consortium
Moderator: Dr. Randy Jernejcic, Physician Chair, Northeast Ohio Hospital Opioid Consortium
- Dr. Tom Collins (The Academy of Medicine of Cleveland & Northern Ohio)
- Dr. David Streem (Cleveland Clinic)
- Dr. Joan Papp (MetroHealth)
- Dr. Ted Parran (St. Vincent Charity)
- Dr. Jeanne Lackamp (University Hospitals)
- Dr. Kevin Smith (VA)
Noon - 1:00 p.m. Lunch and Keynote Speaker: Aaron D. Marks
1:00 – 2:00 p.m. What’s Working Here
Moderator: Elizabeth Newman, The Centers for Families and Children
- Needle Exchange: Lisa M. Fair (Circle Health)
- Project SOAR: Erin Helms (The Woodrow Project)
- Drug Courts: Judge David Matia (Cuyahoga County Common Pleas Court)
- Recovery Coaches: Brian Bailys (Ascent)
- Transportation Program: Thom Olmstead (St. Vincent Charity)
- Recovery: Pam Gill (Recovery Resources)
2:00 - 3:30 p.m. Community Action Plan Breakouts
- Law Enforcement -- Room 201
- Treatment and Healthcare Policy -- Six Continents Room
- Education and Prevention -- Room 204
- Data and Analytics -- Room 207
3:30 - 4:00 p.m. Report Out from Breakouts and Adjourn
Written questions for our speakers can be submitted to facilitators around the room, or via Twitter using the hashtag #OpioidSummitCLE
Tahlequah Woman Sentenced to 24 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Denise Sue Watie, aka Denise Sue Karrant, age 44, of Tahlequah, Oklahoma, was sentenced to 24 months imprisonment and 6 years supervised release for Failure To Register As Sex Offender. The charge arose from an investigation by the United States Marshals Service.
The Indictment alleged that from about June 2017 until December 19, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, who was required to register as a sex offender under the Sex Offender Registration and Notification Act, traveled in interstate commerce and knowingly failed to register and update her registration as required by the Sex Offender Registration and Notification Act. She was required to register due to her felony conviction from Tulsa County, Oklahoma on January 24, 2005, for Sexually Abusing a Minor Child.
United States Attorney Brian J. Kuester said, “One of the public safety functions of the United States Marshals Service is to investigate violations of the Sex Offender Registration Notification Act. Because of that agency’s work, the United States Attorney’s office was able to prosecute the defendant and hold her accountable for violating federal law.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Swanzey Man Sentenced to 63 Months for Possessing Child PornographyRead the Press Release
CONCORD – David Maclean, 71, of Swanzey was sentenced to serve 63 months in federal prison for possessing child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, the investigation began in July of 2017 with the Maricopa County Sheriff’s Department Cyber Crimes Unit in Phoenix, Arizona.
Maclean previously resided in Arizona. In September of 2017, law enforcement officers executed a search warrant at the defendant's residence in Swanzey. A review of various electronic devices found in the residence showed that they contained images and videos of child pornography.
Maclean, who previously pleaded guilty, also was ordered to pay restitution to victims depicted in the images.
“Protecting children is a high priority of the U.S. Attorney’s Office and our law enforcement partners,” said U.S. Attorney Murray. “Child pornography crimes cause untold amounts of damage to their young victims. We will continue to work closely with our law enforcement partners to identify and prosecute those who possess, manufacture or distribute child pornography.”
“This is a fitting sentence that can be taken as a warning to all who engage in this type of predatory behavior upon children, that they will be held accountable by law enforcement,” said Peter C. Fitzhugh Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “Homeland Security Investigations greatly appreciates the tireless work of our law enforcement partners and of the prosecution team that brought about justice in this disturbing case.”
This matter was investigated in New Hampshire by the Internet Crimes Against Children Task Force and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Helen White Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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St. Croix Man Sentenced for Resisting a Park Ranger at Fort ChristiansvaernRead the Press Release
St. Croix, USVI – Uriah Gaston, 36, of St. Croix, was sentenced on September 5, 2018, in District Court on one count of Resisting a Federal Officer, United States Attorney Gretchen C.F. Shappert announced.
Magistrate Judge George W. Cannon, Jr., sentenced Gaston to 90 days of jail time with credit for time served and ordered Gaston to complete a mental and drug treatment program at The Village - Sion Hill Therapeutic Community Program.
Gaston had previously pled guilty to the charge on June 29, 2018.
According to court documents, on January 2, 2018, Gaston created a disturbance at Fort Christiansvaern, at the Christiansted National Historic Site in St. Croix. When Park Ranger Gabriel Laurencin intervened and attempted to identify Gaston, he produced false identification. After being informed that he was going to be frisked for officer safety, Gaston then fled into the Gallows Bay Harbor, ignoring several commands to stop. He again ignored multiple commands to return to shore. Gaston was subsequently returned to shore on the side of a bystander’s dingy and was placed under arrest at that time.
The case was investigated by the United States National Park Service. The case was prosecuted by Assistant United States Attorney Daniel H. Huston.
Southbury Attorney Admits Defrauding Elderly ClientsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Raymond D. Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, and Erin Joe, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ROBERT J. BARRY, 77, of Woodbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of wire fraud relating to his theft from elderly client trust accounts.
According to court documents and statements made in court, BARRY was a partner in the law firm of Sturges and Mathes, located in Southbury. The firm specialized in trust and estates work, and BARRY headed that practice. As part of his practice, BARRY drafted trust agreements for clients designating himself as successor trustee in the event of the client’s death or incapacity. He also prepared wills for clients that named BARRY as executor of the client’s estate upon death.
Beginning as least as early as 2008 and continuing until approximately December 2015, BARRY engaged in a scheme to defraud an elderly victim by stealing money from the victim’s client trust accounts while the victim was alive, and then stealing money from the victim’s estate after the victim died. BARRY, in his role as executor and successor trustee for the victim, directed Sturges and Mathes staff members to prepare checks drawn on the victim’s accounts payable to the Sturges and Mathes operating account. Once the money was deposited into the firm’s operating account, BARRY directed staff to cut a check against the firm operating account payable to a special account in the firm’s name over which BARRY had exclusive control. BARRY then wrote himself checks from the special account to his personal bank account.
In furtherance of the scheme, BARRY caused numerous false and misleading statements to be sent to the victim and the victim’s residual beneficiary about the disposition of assets.
Through this scheme, BARRY stole more than $2.4 million from the victim and the victim’s estate.
In order to hide the excess fees that he had taken, BARRY also caused a false federal estate tax return to be filed with the IRS. The tax return underreported the amount of the victim’s estate by approximately $937,000.
BARRY is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 4, 2018, at which time he faces a maximum term of imprisonment of 20 years.
In addition to agreeing to a restitution order of more than $2.4 million for losses to the victim’s estate, BARRY has agreed to pay restitution to residual beneficiaries of other estate clients.
BARRY is released on a $100,000 bond pending sentencing.
This matter is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Susan Wines and Jennifer Laraia.
South San Francisco Resident Sentenced to Prison for Money Transmission and Tax SchemeRead the Press Release
SAN FRANCISCO – Subhash Jay was sentenced today to 30 months in prison and ordered to pay restitution of $409,871 for operating an unlicensed money transmitting business and filing a false tax return announced United States Attorney Alex G. Tse, Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Tara Sullivan, Bureau of Industry and Security, Special Agent in Charge Joseph Whitehead, and Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable Charles R. Breyer, Senior United States District Judge.
Jay, 59, of South San Francisco, pleaded guilty to the charges on March 23, 2018. According to the plea agreement, Jay admitted to operating a money transmitting business known as Force Services, Inc., without obtaining required state or federal licenses. Jay admitted that, during 2010 through 2014, he caused two domestic bank accounts held in the name of Force Services to receive international wire transfers on behalf of a client with an aggregate value of at least $4,515,236. Jay then forwarded most of those funds to the client, but retained $817,734 as a commission. In addition, Jay willfully filed corporate tax returns for Force Services for the years 2010 through 2014, which failed to report the commissions as gross receipts, and also willfully filed individual income tax returns for the years 2010 through 2014, which failed to report the commissions as income.
A federal grand jury indicted Jay on April 6, 2017, changing him with one count of operating an unlicensed money transmitting business in violation of 18 U.S.C. § 1960, ten counts of filing false tax returns in violation of 26 U.S.C. § 7206(1), one count of making false statements to a government agency in violation of 18 U.S.C. § 1001(a)(2), and one count of structuring financial transactions to evade reporting requirements in violation of 31 U.S.C. § 5324(a)(3). Pursuant to his plea agreement, Jay pleaded guilty to one count of operating an unlicensed money transmitting business, and one count of filing false tax returns on March 23, 2018. The remaining counts were dismissed.
In addition to the prison term and restitution, Judge Breyer also ordered Jay to serve a three-year period of supervised release. Further, on July 11, 2018, Judge Breyer issue a forfeiture order in the amount of $4,515,236. Judge Breyer ordered the defendant to begin serving the sentence on December 12, 2018.
Assistant United States Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, Homeland Security Investigations and the Bureau of Industry and Security.
Shreveport doctor pleads guilty to forging prescriptions and using false identification to obtain controlled substancesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a former resident physician at the Louisiana State University Health Sciences Center – Shreveport (LSUHSC) pleaded guilty to forging prescriptions for a controlled substance and then using false identification to fill those prescriptions.
Kevin V. Patel, 32, originally of Naperville, Illinois, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of obtaining a controlled substance by fraud. According to the guilty plea, Patel was a resident physician at LSUHSC in Shreveport from 2014 to 2017. In May and June of 2017, Patel issued five forged prescriptions for controlled substances in his roommate’s name. Four were issued using the prescription pads of other physicians, without their knowledge or authorization. Patel then used his roommate’s identification at local pharmacies, without the roommate’s knowledge or approval, to successfully fill four of the forged prescriptions. Through this and other means, from April 2017 to June 2017, Patel fraudulently obtained approximately 150 tablets of Adderall and approximately 150 tablets of Vyvanse, both Schedule II controlled substances.
Patel faces up to four years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for January 3, 2019.
The DEA conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Registered Sex Offender Sentenced to 25 Years in Prison for Enticement of a Minor and Possession of Prepubescent Child PornographyRead the Press Release
Shawn Lyberger, 35, of Kell, Illinois, was sentenced today in federal court to 25 years in prison for inducing a 10-year-old boy to engage in sex acts over webcam and possession of child pornography depicting prepubescent minors. Lyberger previously pled guilty to a three-count superseding indictment charging the same conduct, which included a charge for committing the offenses while being a registered sex offender. Lyberger has a prior federal conviction for possession of child pornography in the Eastern District of Missouri dating back to 2003.
During the proceedings, Lyberger admitted that in December 2015, while he was a registered sex offender, he went on the website Omegle and began chatting with the victim – identified in court documents only as T.W., a resident of England. During their initial chat, the defendant engaged in a sex act on webcam. At Lyberger’s suggestion, they later switched over to Skype, whereupon the defendant induced T.W. to perform sex acts on webcam as well. Lyberger admitted knowing at the time that the boy was only 10 years of age.
At some point, T.W. tried to end the sexual aspect of their chats and, specifically, to no longer transmit sexually explicit pictures to Lyberger. However, Lyberger told T.W. that this was not acceptable, and that T.W. had to continue sending him images of his genitals or Lyberger would make him a "cyber boy" – a threat to post T.W.’s explicit videos online for others to see. T.W. became afraid and told his mother, who notified the police.
On July 6, 2016, a federal search warrant was executed at the residence the defendant shared with his mother. A laptop computer and a USB storage device belonging to Lyberger were seized and found to contain approximately 77 child pornography images and 200 child pornography videos respectively. All of the contraband files were found in unallocated space, signifying that they had been deleted. At that time, the defendant provided a voluntary audiotaped statement in which he admitted to chatting online about child pornography and to chatting with minors over Skype and Omegle. He also admitted that he had solicited underage males to perform sex acts online, but confessed only to viewing the webcam transmissions, not recording them. None of the images or videos recovered during the search depicted T.W.
Because he was a registered sex offender at the time of the offenses, federal law mandated a 10-year term of imprisonment to run consecutive to any sentence Lyberger received for his enticement conviction. His prior conviction from 2003 also meant that Lyberger faced a 10-year mandatory minimum prison sentence for possessing child pornography. In addition to his 300- month prison term, Lyberger was also sentenced to a lifetime term of supervised release.
Today’s sentencing hearing was the culmination of an investigation conducted by Interpol, officials from the United Kingdom, the Marion County Sheriff’s Department, the Woodland, California, Police Department, the Federal Bureau of Investigation, and the Department of Homeland Security - Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Angela Scott.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
Raleigh Gang Member Sentenced for Drug and Firearm OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, JAMES EDWARD WHITAKER, 33, of Raleigh, North Carolina, was sentenced by Chief United States District Judge James C. Dever III to 84 months imprisonment followed by 5 years of supervised release.
WHITAKER was named in a two-count Criminal Information filed on May 29, 2018 and on that same date pled guilty to possession with intent to distribute a quantity of cocaine base (crack) and marijuana and to possession of a firearm in furtherance of a drug trafficking crime.
On July 19, 2017, officers with the Raleigh Police Department observed WHITAKER exit a vehicle then trespass on property he’d been told to stay away from previously. Officers in that area noticed a strong odor of marijuana coming from the car that WHITAKER had just left. They approached WHITAKER and he began to walk away. Officers were able to place one handcuff on WHITAKER, but he ultimately resisted arrest, removed the handcuff and fled on foot. Subsequent investigation of the scene revealed a handgun in the car that WHITAKER exited, along with cocaine base (crack), US currency, and marijuana. WHITAKER was later located and arrested.
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 is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department, CCBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Previously Convicted Felon Sentenced for Possessing a FirearmRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to eight years in prison for possessing a firearm as a convicted felon.
According to court documents, Steven Akeem Nichols, 34, was found by a Chesapeake police office sitting in the driver’s seat of his car asleep with a 9mm handgun resting between his legs in October 2017. Nichols, who was prohibited from possessing firearms, had been previously convicted of felony drug offense in Pennsylvania. Nichols later admitted to conspiring with others to distribute quantities of heroin, methamphetamine and cocaine in Virginia Beach in September and October 2017.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys William B. Jackson and Kevin M. Comstock 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. 2:18-cr-63.
Oceanside Man Admits to Stealing Benefits Intended for Widow of Military VeteranRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Matthew C. Brehm (619) 546-7951
NEWS RELEASE SUMMARY – September 5, 2018
SAN DIEGO – Michael Vanden Brink pleaded guilty today to stealing thousands of dollars in benefits intended for the widow of a military veteran. During his plea before U.S. Magistrate Judge Jan M. Adler this morning, Brink admitted that after the widow’s death in 2004, he converted her benefits paid out by the Department of Veteran’s Affairs to his own use.
Brink, 57, acknowledged that H.C.C., the spouse of a deceased veteran, began to receive Dependency and Indemnity Compensation benefits in 1972. Sometime prior to March 2004, H.C.C. began to receive those benefits via direct deposit into a bank account in both her name and Brink’s.
Brink acknowledged that H.C.C. died on June 30, 2004, at her home in Oceanside, California, and that he was aware of her death and that her benefits should have ceased immediately upon her death. Brink further acknowledged that he knew that he was not entitled to H.C.C.’s benefits, and that he knew that the money rightfully belonged to the United States.
As a part of his plea, Brink admitted that he received a monthly bank statement for the account, and that he never informed the bank that H.C.C.’s monthly benefits should cease. Instead, Brink admitted that from July 1, 2004 until February 26, 2014, only he had access to and control of all funds in the bank account, and that during that time he converted a total of $145,035 in United States’ money to his own use.
“For almost a decade, this defendant stole thousands of dollars intended to help the families of our brave men and women in uniform,” said United States Attorney Adam L. Braverman. “This prosecution demonstrates the commitment of the United States Attorney’s Office to protecting the integrity of programs for our veterans and their families.”
“This investigation demonstrates the OIG’s commitment to aggressively pursue individuals who defraud VA programs. The VA OIG will continue to identify criminal activity in order to protect the integrity of VA programs.” said Special Agent in Charge A.E. Pleasant, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Western Field Office.
As a part of his plea agreement, Brink agreed to pay $145,035 in restitution to the Department of Veteran’s Affairs. Brink faces up to 10 years in federal prison and a fine of up to $390,060 at his sentencing hearing before U.S. District Judge John A. Houston on December 10, 2018.
DEFENDANT Case Number 18-cr-3894
Michael Vanden Brink Oceanside, CA.
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment, $390,060 fine, restitution
AGENCIES
U.S. Department of Veteran’s Affairs, Office of Inspector General – Criminal Investigations Division
North Haverhill Man Sentenced to Prison for Being a Felon in Possession of FirearmsRead the Press Release
CONCORD - Thomas S. Harris, 27, of North Haverhill, was sentenced in federal court to 18 months in prison for being a felon in possession of a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Harris is a convicted felon and prohibited from possessing firearms. On August 25, 2016, Harris sold a Savage Arms, model 18-F, .410 caliber shotgun to a pawn shop in Lisbon, NH. On September 27, 2016, Harris sold a second firearm, a Keystone Sporting Arms, model Cricket, .22 caliber rifle, to the same pawn shop.
Harris previously pleaded guilty to two counts of being a felon in possession of a firearm on May 9, 2018.
“In order to protect public safety, we must keep firearms out of the hands of criminals,” said U.S. Attorney Murray. “Through Project Safe Neighborhoods, we aggressively enforce federal gun laws and work to improve the safety and security of our communities.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Vermont State Police, the Lisbon Police Department and the Haverhill Police Department investigated this case. Assistant U.S. Attorney Debra M. Walsh prosecuted this case.
The case is part of ATF’s Project Safe Neighborhoods initiative, a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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New York Man Sentenced to 44 Months in Prison for 2017 Bank Robbery in Fort Lee, New JerseyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 44 months in prison for robbing a bank in Fort Lee, New Jersey, at knifepoint in January 2017, U.S. Attorney Craig Carpenito announced.
Andres Dominguez, 39, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of bank robbery. Judge Walls imposed sentence today in Newark federal court. Dominguez was originally arrested on Jan. 13, 2017.
According to documents filed in this case and statements made in court:
On Jan. 12, 2017, Dominguez robbed the Bank of New Jersey in Fort Lee. According to bank employees and video surveillance, a man wearing a gray Nike hooded sweatshirt, a blue rubber glove, sunglasses, a wool hat, black Adidas pants, and white sneakers entered the bank.
The robber approached one of the bank tellers with a large kitchen knife in his right hand and jumped onto the counter separating the tellers from customers. He then demanded money from the teller and instructed the teller to give him all the money in the teller drawers or he would kill her. The teller complied, and the robber jumped back over the counter and fled the bank on foot. The robber was later identified as Dominguez.
When law enforcement later searched the area around the bank for evidence of the bank robbery, they recovered a large kitchen knife from a dumpster behind the bank. They also found two blue rubber gloves, a gray Nike hooded sweatshirt, and a dark wool hat on the street at various locations within a few blocks of the bank. Law enforcement later located Dominguez in Bronx and arrested him.
In addition to the prison term, Judge Walls sentenced Dominguez 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 leading to today’s sentencing. He also thanked the Fort Lee Police Department for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
New York Man Sentenced to 60 Months of Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Nevarez, age 20, of the Bronx, New York, was sentenced to 60 months of imprisonment and four years of supervised release on September 4, 2018 by United States District Judge Malachy E. Mannion for conspiring to distribute heroin, crack cocaine, and fentanyl.
According to United States Attorney David J. Freed, Nevarez pleaded guilty to conspiring to distribute controlled substances in Pennsylvania between approximately December 2016 through January 2017. Nevarez admitted to working as a drug dealer and runner in the conspiracy, and to transporting narcotics from New York to Pennsylvania. Nevarez also admitted to trading narcotics in exchange for a firearm, and to having been affiliated with the Crips, a nationwide criminal organization. Nevarez admitted to trafficking in excess of 112 grams of crack cocaine and in excess of 200 grams of heroin, the latter of which is the equivalent of 8,000 potentially fatal doses of heroin.
Nevarez was charged in June 2017 with 14 other individuals. All of his co-defendants have pleaded guilty, with seven 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;
- Kristyna Shotwell of Plymouth, Pennsylvania, was sentenced to 12 months and one day of imprisonment;
- Tanay Jones of Bronx, New York, was sentenced to a time served sentence of 19 days of imprisonment;
- William Waring of Bronx, New York, was sentenced to 60 months of imprisonment;
- John Maybank of Bronx, New York, was sentenced to 53 months of imprisonment; and
- Siobhan Daniels, of Wilkes-Barre, Pennsylvania, was sentenced to 30 months of imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kingston Police Department, and by the Luzerne County Drug Task Force. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
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.
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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New Haven Man Arrested for Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian J. Taylor, Acting United States Marshal, announced that GARY JOSEPH GRAVELLE, 51, of New Haven, was arrested today in New Britain by members of the U.S. Marshals Service Violent Fugitive Task Force and the New Britain Police Department on federal supervised released violation.
Gravelle appeared this afternoon before U.S. Magistrate Judge Robert M. Spector and was ordered detained.
According to statements made in court, Gravelle is under investigation for sending multiple threatening communications and for mailing multiple letters containing white powder to several federal and state offices, and community organizations, in September 2018.
On July 19, 2013, Gravelle was sentenced in Bridgeport federal court to 70 months of imprisonment, followed by three years of supervised release, for mailing numerous threatening letters. He was released from federal prison in November 2015. It is alleged that Gravelle failed to comply with certain conditions of his supervised release, including failing to notify the U.S. Probation Office of a change of residence, and failing to comply with a mental health treatment requirement.
U.S. Attorney Durham stressed that charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation concerning the sending of threatening communications is continuing. Anyone with pertinent information is asked to call the FBI at 203-777-6311.
Muskogee Man Sentenced to 36 Months Probation for CounterfeitingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ricky Lee Banks Jr., age 40, of Muskogee, Oklahoma, was sentenced to 3 years’ probation for Counterfeiting An Obligation Of The United States, in violation of Title 18, United States Code, Sections 471 and 2. The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The Indictment alleged that in or about November, 2017, to on or about January 16, 2018, in the Eastern District of Oklahoma, the Defendant, Ricky Lee Banks Jr., with intent to defraud, counterfeited and falsely made an obligation of the United States, by making and counterfeiting one-hundred-dollar Federal Reserve Note.
United States Attorney Brian J. Kuester said, “The Muskogee Police Department executed a search warrant and as a result found evidence that the defendant had made and possessed equipment to make counterfeit one-hundred dollar bills. This investigation undoubtedly stopped an untold number of counterfeit bills from being passed to unsuspecting merchants. This case should serve as a reminder to individuals and businesses alike to carefully inspect money received in exchange for goods or services before accepting payment. Contact your local law enforcement agency if you suspect you have received counterfeit currency.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Mountain View Man Pleads Guilty to Production and Distribution of Child PornographyRead the Press Release
SAN JOSE – Grant Ridder pleaded guilty today to production, distribution, and possession of child pornography, announced United States Attorney Alex G. Tse and United States Secret Service Acting Special Agent in Charge John Roberts. The guilty plea was accepted by the Honorable Lucy H. Koh, U.S. District Judge.
According to his plea agreement, on July 27, 2013, Ridder, 27, of Mountain View, engaged in sexually explicit conduct with a minor and produced photographs and video of the sexual encounter. In October 2013, he accessed the minor’s Facebook account without her permission and uploaded sexually explicit images of her to her Facebook page. Ridder acknowledged that he uploaded the images with the intent to cause substantial emotional distress to the minor. Ridder also possessed additional photographs of the minor engaged in sexually explicit conduct.
Further, according to the plea agreement, on July 14, 2013, Ridder persuaded a second minor, aged between 12 and 15 years, to engage in sexually explicit conduct for the purpose of producing photographs which the minor sent to Ridder on his phone. On July 26, 2013, Ridder coerced this minor to produce additional sexually explicit images of herself by threatening to post her prior sexually explicit photographs on a Russian website. In January 2014, Ridder uploaded the sexually explicit photographs of the minor to a Russian-based website.
Further according to the plea agreement, on December 7, 2013, Ridder coerced a third minor into producing sexually explicit images of herself by threatening to send her prior sexually explicit photographs to others. In January 2014, Ridder uploaded the sexually explicit photographs of the minor to a Russian-based website.
Lastly, according to the plea agreement, from approximately November 19, 2013, through June 18, 2014, Ridder used phone text messaging to entice a fourth minor to engage in sexual activity with him, knowing that she was a minor.
A federal grand jury indicted Ridder on May 18, 2017, charging him with two counts of production of child pornography, in violation of 18 U.S.C. § 2251(a); three counts of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2); one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B); three counts of cyberstalking, in violation of 18 U.S.C. § 2261A; and one count of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b). Ridder pleaded guilty to one count of production, one count of distribution, and one count of possession of child pornography.
Judge Koh scheduled a sentencing hearing for December 5, 2018, at 9:15 a.m., in San Jose. The minimum statutory sentence for violating 18 U.S.C. § 2251(a) (production) is a 15-year prison term; the maximum statutory sentence is a 30-year prison term. The minimum statutory sentence for a violation of 18 U.S.C. § 2252(a)(2) (distribution) is five years in prison and the maximum prison term is 20 years. The maximum statutory sentence for violating 18 U.S.C. § 2252(a)(4)(B) (possession) is 10 years in prison. Additional fines, victim restitution, and a term of supervised release also may be imposed; however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Maia Perez and Marissa Harris are prosecuting the case with the assistance of Nina Williams. The prosecution is the result of an investigation by the United States Secret Service, the Contra Costa District Attorney’s Office, the Stockton Police Department, and the Martinez Police Department.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, they should contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Michigan Man Admits Role in Worldwide Trading Account Simulator Scheme; Another Conspirator IndictedRead the Press Release
NEWARK, N.J. – A Michigan man today admitted participating in a scheme to defraud hundreds of investors worldwide of $1.4 million through a purported online day-trading firm, and a co-defendant from Michigan was arrested this morning in connection with the conspiracy, U.S. Attorney Craig Carpenito announced.
Christopher D. Eikenberry, 49, of Birmingham, Michigan, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to commit securities fraud.
Jeffrey E. Goldman, 52, of West Bloomfield, Michigan, who was arrested today in Michigan, is charged by indictment with one count of conspiracy to commit securities fraud and one count of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge David Grande in Detroit federal court.
According to documents filed in the case and statements made in court:
From December 2013 to June 2015, Eikenberry, Goldman, Naris Chamroonrat, Yaniv Avnon, and Ran Armon orchestrated a scheme to defraud hundreds of investors worldwide through their operation of Nonko Trading, a purported day-trading firm. They solicited investors to open accounts with Nonko and to wire thousands of dollars to the firm to fund those accounts. Instead of using the money to fund securities brokerage accounts, the conspirators simply stole it. The conspirators tried to hide the theft by providing the victims with online trading simulator, or “demo,” accounts, and telling the investors they were real accounts to be used for trading securities.
The conspirators selected as victims only those customers who they believed would not be profitable day-traders and would be less likely to seek to withdraw funds from their accounts. They limited the scheme to inexperienced, unsophisticated “losing” traders because those customers would simply believe they lost their money trading in the open markets. If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts.
The scheme attracted more 260 customers worldwide, including several in New Jersey. Although Nonko paid back a small percentage of these customers, the conspirators stole at least $1.4 million. The majority of the funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions, including transferring proceeds of the scheme to the other conspirators.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for Eikenberry is scheduled for Dec. 12, 2018.
On May 11, 2017, Chamroonrat pleaded guilty to conspiracy to commit securities fraud in connection with the scheme, one day after a federal grand jury indicted Avnon and Armon, charging them each with one count of conspiracy to commit securities fraud and one count of wire fraud. Those cases currently are pending.
In a separate civil action, the Securities and Exchange Commission today filed an amended complaint in Newark federal court charging Eikenberry and Goldman with, among other things, violating and aiding and abetting violations of the antifraud provisions of the securities laws. The amended complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Gregory W. Ehrie, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Regional Director Marc P. Berger for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations against Goldman, Avnon and Armon are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Miami, FL Resident Found Guilty of Health Care Fraud, Identity Theft and Money Laundering in KentuckyRead the Press Release
LOUISVILLE, Ky. – A Miami, Florida, man, was found guilty last week in United States District Court of Health Care Fraud, Conspiracy to Commit Health Care Fraud, Aggravated Identity Theft, and Conspiracy to Commit Money Laundering, announced United States Attorney Russell M. Coleman.
Following a three-week trial, a federal jury deliberated approximately 4 hours before finding Ledinson Chavez, 39, guilty on all counts against him for his part in a scheme to attempt to defraud health insurance providers out of more than $5 million for services that were never provided.
According to the evidence presented at trial, beginning no later than on or about June 12, 2012, and continuing through on or about November 1, 2014, Chavez along with Claudia Lopez, Oskel Lezcano, Ariel Borrego-Hernandez, Sergio Betancourt and Yuriesky Diaz Rodriguez recruited unsuspecting chiropractors for employment in Louisville area chiropractic clinics in order to obtain and use the chiropractors’ names and National Provider Identifiers (NPI) to fraudulently bill insurance companies.
Thereafter, the group of defendants recruited employees from Jeffboat and others to seek chiropractic services from the clinics. However, unbeknownst to the chiropractors, the clinics billed over $5,000,000 for methocarbamol injections (a muscle relaxant), using the patients’ names, dates of birth, insurance/policy numbers, addresses, and patient IDs/Social Security Numbers for injections. Most of the patients from Jeffboat were paid to go to the clinics by the defendants and were told the injections were being billed, according to testimony during trial.
Lopez, Lezcano, Borrego-Hernandez, Betancourt, and Chavez operated and controlled multiple chiropractic clinics in the Louisville area including: Xpress Diagnostics Center, Inc.; Prudential Chiropractic Medical Center, PLLC; Klondike Chiropractic Medical Center, LLC; Be Well Chiropractic Center, Corp.; Chiropractic and Medical Center, LLC, even though the clinics were placed in various chiropractors’ names.
Sentencing is scheduled for November 29, 2018, Chavez faces a guideline sentence of 102-121 months in federal prison; 24-months is the mandatory minimum sentence, and restitution of $1,108,757.50.
Assistant United States Attorneys Joseph Ansari, Lettricea Jefferson-Webb and Christopher Tieke prosecuted the case. Mary Kennedy, paralegal, and Robert Masterson, health care fraud investigator, assisted the prosecution team. The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the Louisville Metro Police Department, and the National Insurance Crime Bureau.
McAlester Man Sentenced to 72 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Henry Bastardo, age 60, of McAlester, Oklahoma, was sentenced to 72 months imprisonment and 4 years supervised release for Possession With Intent To Distribute Methamphetamine. The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about March 17, 2018, within the Eastern District of Oklahoma, the defendant, knowingly and intentionally distributed five grams or more of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “This investigation by agents from the OHP and DEA prevented methamphetamine from being purchased and consumed by the defendant’s intended consumers, and allowed members of this office to successfully prosecute the defendant. I commend all that were involved in the investigation and prosecution.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.