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31 August 2018
Illegal alien from Mexico sentenced to 7 months in prison for illegally re-entering U.S. for 4th timeRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico was sentenced Thursday to seven months in prison for re-entering the United States after having been previously removed on three occasions.
Alberto Rodriguez-Perez, 40, of Mexico, was sentenced by U.S. District Judge Dee D. Drell on one count of illegal re-entry of a previously deported alien. According to the May 4, 2018 guilty plea, a deportation officer encountered Rodriguez-Perez while at the Lafayette Parish Correctional Center. The officer later discovered that Rodriguez-Perez was illegally in the United States having been previously deported in 2004, 2010 and 2013.
United States Immigration and Customs Enforcement and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Honduran National Living in Norwalk Pleads Guilty to Reentering U.S. after Being Deported for Sex CrimeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOEL BONILLA, 30, a citizen of Honduras last residing in Norwalk, pleaded guilty today in Hartford federal court to one count of illegal reentry of a removed alien. In pleading guilty, BONILLA also acknowledged that he failed to register as a sex offender in Connecticut.
According to court documents and statements made in court, in March 2007, BONILLA was convicted in the Commonwealth of Virginia of aggravated sexual battery. He was sentenced to 20 years of incarceration, execution suspended after five years, and 10 years of probation. He also was required to register as a sex offender. After he served his prison term and registered as a sex offender in Virginia, BONILLA was remanded to the custody of Immigration and Customs Enforcement (ICE). In January 2011, BONILLA was deported Honduras.
BONILLA illegally reentered the U.S. and resided in Norwalk as early as December 2015. On January 14, 2018, BONILLA was involved in a motor vehicle stop with Norwalk Police. Subsequent fingerprint analysis confirmed that BONILLA had been previously deported from the U.S. He was taken into ICE custody on February 14, 2018.
The investigation revealed that BONILLA had not registered as a sex offender in the State of Connecticut, or updated his registration in the Commonwealth of Virginia, both required by law. A sex offender is required to register following the assumption of residence in Connecticut “without undue delay.”
BONILLA is scheduled to be sentenced by U.S. District Judge Michael P. Shea on November 30, 2018, at which time he faces a maximum term of imprisonment of 10 years.
This matter has been investigated by Immigration and Customs Enforcement and the U.S. Marshals Service, with the assistance of the Norwalk Police Department. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Harnett County Crack Dealer Sentenced to over 10 YearsRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge James C. Dever III sentenced JOHN ANDREW PIPKIN a/k/a “Puppy”, age 59 of Erwin, North Carolina, to 130 months imprisonment, followed by 5 years supervised release.
On December 12, 2017, PIPKIN was named in a twelve-count indictment returned by a grand jury sitting in the Eastern District of North Carolina. The indictment charged PIPKIN with Conspiracy to Distribute and Possess With the Intent to Distribute Twenty-Eight (28) Grams or more of Cocaine Base (Crack) from February 2016 to September 20, 2016, in violation of 21 U.S.C. § 846; multiple counts of Distribution of a Quantity of Cocaine Base (Crack), in violation of 21 U.S.C. § 841(a)(1); Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A); and multiple counts of Distribution of Twenty-Eight (28) Grams or more of Cocaine Base (Crack), in violation of 21 U.S.C. 841(a)(1).
On April 9, 2018, pursuant to a written plea agreement, PIPKIN pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute Twenty-Eight (28) Grams or more of Cocaine Base (Crack) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
The investigation revealed that from February 2016 through September 20, 2016, PIPKIN distributed over 234 grams of crack cocaine from a residence that he maintained in Erwin, NC. Law enforcement made numerous controlled purchases of crack cocaine from the defendant, and on many occasions, the defendant was armed with a firearm.
The investigation of this case was conducted by the Harnett County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Lawrence Cameron represented the government in this case.
Grand Jury Indicts Five MS-13 Members for Violent RobberyRead the Press Release
DALLAS - Five members of MS-13, a violent criminal gang, are in custody today after being indicted by a federal grand jury, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“MS-13 is one of the most ruthless gangs on the streets,” said U.S. Attorney Nealy Cox. “This case – along with the eight MS-13 gang members we indicted earlier this summer -- underscores our commitment to dismantle this organization in and throughout our District and keep gangs from terrorizing our citizens.”
Carlos Enreique Mejia Caceres, aka “Machete,” Francisco Javier Argueta Montes, aka “Rostro,” Juan Carlos Andrade Rivas, Luis Santiago Marrego, aka “Shorty,” and Luis Fernando Salazar Angeles were charged with conspiracy to interfere with commerce by robbery, interference with commerce by robbery, and brandishing a firearm during a crime of violence.
On May 16, 2018, prosecutors say, Montes, Rivas, and Marrego disguised their identities and entered Plaza Ferrache Western Wear in Dallas, where they brandished a firearm and took money from an employee. They fled the scene with Angeles as the getaway driver, and divided the money between themselves, Angeles, and Caceres, who masterminded the scheme.
Each faces a maximum life sentence.
The Federal Bureau of Investigation conducted the investigation, and Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
In July, a federal grand jury in the Northern District of Texas indicted eight MS-13 members on charges in connection with their gang activities, including attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and possession of a firearm during a crime of violence. And just today, more than 20 individuals associated with MS-13 were arrested in California for assault and drug trafficking.
Gettysburg Man Indicted for Drug, Explosive, and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Gettysburg, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, Possession of a Firearm by a Prohibited Person, and Possession of an Unregistered Firearm and Destructive Device.
Adam Westphal, age 34, was indicted on August 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, lifetime of supervised release, and $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 1, 2017, Westphal knowingly and intentionally combined, conspired, confederated, and agreed with persons known and unknown to distribute and possess with intent to distribute 500 grams or more of methamphetamine, a Schedule II controlled substance. Westphal, who is an unlawful user of, and addicted to a controlled substance, knowingly received and possessed several firearms. The Indictment further alleges that Westphal knowingly possessed a homemade silencer and a destructive device, items which combination of parts would readily assemble one improvised explosive bomb or destructive device, each of which was not registered to him.
The charges are merely accusations and Westphal is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Westphal was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Georgia Man Apprehended at the Peace Bridge Indicted on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced that a federal grand jury has returned an indictment charging Ibrahim Dirweesh, 34, of Atlanta, Georgia, with possession of child pornography. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to a previously filed complaint and the indictment, on August 22, 2018, following a secondary inspection, the defendant was detained by Customs and Border Protection officers at the Peace Bridge Port of Entry. During that secondary inspection, videos of child pornography were discovered on Dirweesh’s cell phone. The videos were sexual in nature involving pre-pubescent children as young as two years-old.
The defendant was arraigned today before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held.The indictment is the result of an investigation by U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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.
Fort Wayne Man Sentenced to 181 Months ImprisonmentRead the Press Release
FORT WAYNE – Edgar Moreno-Ramirez, 27, of Mexico City, Mexico, was sentenced before Chief Judge Theresa L. Springmann on his plea of guilty to the charge of possession with intent to distribute more than 50 grams of methamphetamine and more than 1 kilogram of heroin and for possessing a firearm in furtherance of the drug trafficking offense, announced U.S. Attorney Thomas L. Kirsch II.
Moreno-Ramirez was sentenced to 181 months in prison.
According to documents in this case, from October 1, 2015, Moreno-Ramirez and his co-defendants were operating a drug distribution house while armed, out of a residence in Fort Wayne, Indiana.
This case was investigated by the DEA, the U.S. Postal Inspection Service, and the ATF, with assistance from the Allen County Drug Task Force as well as the Allen County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Anthony W. Geller.
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Fort Hall Man Sentenced to Prison for Assault Resulting in Serious Bodily InjuryRead the Press Release
POCATELLO – Jonathan Jacob Ish, 37, of Fort Hall, Idaho, was sentenced yesterday to 57 months in prison for assault resulting in serious bodily injury, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye also ordered Ish to serve three years of supervised release, after his release from federal prison. Ish pleaded guilty to the charge on May 21, 2018.
According to court records, the female victim of the assault told police that in September 2016, she and Ish were at their residence on the Fort Hall Indian Reservation when he became angry and began punching and kicking her. At one point Ish stood over her and kicked her in the head and broke her jaw. She was bleeding severely and was later examined at the hospital where she had surgery for a broken mandible (lower jaw), a nasal fracture and a fracture of the eye socket.
This case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
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Former U.S. Citizen Extradited to Bosnia to Face Murder ChargesRead the Press Release
Convicted of lying during naturalization process and stripped of his U.S. citizenship, former Serbian militia member returned to Bosnia-Herzegovina to face charges for murders of Muslim couple during 1990s Bosnian Conflict
GRAND RAPIDS, MICHIGAN — Alexander Kneginich, 58, formerly of Crown Point, Indiana, has been transported back to his native Bosnia-Herzegovina after the U.S. Marshals Service surrendered him to Bosnian law-enforcement officials last Friday in Chicago.
Kneginich was convicted in August 2017 of having fraudulently obtained U.S. citizenship by falsely denying, during the immigration and naturalization process, that he had ever been charged with or jailed for a crime. In fact, Kneginich, along with several other veterans of a Serbian militia unit, had been charged with the 1994 murders of two Muslim civilians – a husband and wife –during the 1990s Bosnian conflict. Kneginich told these lies to U.S. immigration authorities in the course of obtaining authority to enter the United States as a refugee, subsequently obtaining permanent-resident status, and ultimately obtaining U.S. citizenship in January 2007 in Grand Rapids, Michigan. In November 2017, Kneginich was sentenced to 12 months in prison for the naturalization offense, and his U.S. citizenship was also revoked. In December 2017, and at the request of the Government of Bosnia-Herzegovina, the U.S. Attorney’s Office initiated extradition proceedings against Kneginich under the extradition treaty between the United States and Bosnia-Herzegovina. In June 2018, U.S. Magistrate Judge Phillip J. Green ruled that Kneginich was extraditable and referred his case to the U.S. State Department pursuant to the Treaty, and the State Department then ordered his extradition.
“Mr. Kneginich never rightly secured the blessings and freedom of citizenship and lawful status in this great country of ours,” said U.S. Attorney Andrew B. Birge. “He snuck into this country by fleeing charges that he is a murderer. This deceit cost Kneginich the U.S. citizenship he obtained by fraud, and the United States has honored its extradition treaty with his native country by sending Kneginich back to Bosnia-Herzegovina to face trial for the charges he was fleeing when he came here.”
The criminal case was jointly prosecuted by Trial Attorney Jamie Perry, of the Justice Department’s Human Rights and Special Prosecutions Section (HRSP), and Assistant U.S. Attorney Hagen W. Frank of the U.S. Attorney’s Office, Western District of Michigan. The case was investigated by HSI’s Grand Rapids Office, assisted by the Justice Department’s Office of International Affairs and the Government of Bosnia and Herzegovina. Assistant U.S. Attorney Frank represented the United States in the extradition proceedings.
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Former Postal Worker Charged with Making False Statements to Obtain More than $160,000 in Disability BenefitsRead the Press Release
A complaint was unsealed earlier today in federal court in Brooklyn charging Joseph Penatello, a former motor vehicle operator for the United States Postal Service (USPS), with making false statements to obtain federal employees’ compensation. Penatello was arrested today and will make his initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Matthew Modafferi, Special Agent-in-Charge, United States Postal Service, Office of the Inspector General (USPS-OIG), announced the arrest.
“As alleged, the defendant was employed at flea markets at the same time he falsely claimed to be incapable of working for the Postal Service due to a medical condition,” stated United States Attorney Donoghue. “Such disability scams are nothing less than stealing from our taxpayers and will not be ignored.”
“The federal Workers’ Compensation program was created to help those who are recovering from injuries obtained on-the-job,” stated USPS-OIG Special Agent-in-Charge Modafferi. “When a Postal Service employee defrauds the Workers' Compensation program, the Special Agents of the U.S. Postal Service Office of Inspector General will work tirelessly with the U.S. Attorney’s Office to protect the integrity of this federal benefit program.”
According to the complaint, Penatello began receiving workers’ compensation benefits in 2001, after he sustained a neck and back injury while working for the USPS. In order to continue receiving those benefits, between March 2014 and April 2018, Penatello submitted documents to the Department of Labor falsely claiming that he was totally disabled and unable to work due to his medical condition. Penatello also falsely claimed that he was not earning any income. Unbeknownst to Penatello, on over 20 occasions between 2014 and 2018, USPS-OIG special agents video-recorded him working as an organizer at flea markets in Brooklyn and Manhattan. The video also showed Penatello engaging in strenuous activities, such as carrying heavy objects, standing for long periods of time and driving a motor vehicle. On one occasion, Penatello told an undercover special agent that he runs flea markets five days-a-week and up to 12 hours per day. During the relevant time period, Penatello received more than $160,000 in workers’ compensation benefits.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a statutory maximum of five years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Erin Reid is in charge of the prosecution.
The Defendant:
JOSEPH PENATELLO
Age: 64
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 18-MJ-807
Former Postal Employee Sentenced to 196 Months in Prison for Sexually Exploiting a ChildRead the Press Release
BOSTON – A former United States Postal Service (USPS) employee was sentenced today in federal court in Worcester for sexually exploiting a child, using USPS computers to access child pornography, and possessing child pornography.
Stephen Mantha, 64, of Spencer, was sentenced by U.S. District Court Judge Timothy S. Hillman to 196 months in prison and five years of supervised release. In February 2018, Mantha pleaded guilty to one count of producing child pornography, one count of accessing child pornography and one count of possessing of child pornography.
In the summer of 2015, investigators from the USPS Office of Inspector General (OIG) were alerted to suspicious internet searches being conducted on a computer at a Shrewsbury postal facility where Mantha worked as an electronic technician. In the course of the investigation, agents installed a computer activity recorder, which tracked all computer usage on that computer, and, a video camera, which recorded the identity of the person using the computer. Agents were then able to observe and record as Mantha searched for, and viewed, child pornography on USPS computers.
A search of Mantha’s residence resulted in the recovery of numerous thumb drives containing child pornography. During the review of the materials seized from Mantha’s home, a video was discovered, which had been recorded in approximately 2000 or 2001, depicting Mantha sexually abusing an approximately seven-year-old boy. Agents were able to locate and interview the boy (now an adult), who confirmed the sexual abuse.
In 2000 and 2001, the date of the offense, the charge of sexual exploitation of a child provided for a mandatory minimum of 10 years and no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Although existing penalties for producing child pornography are substantially higher, the Constitution prohibits the government from subjecting individuals to more stringent penalties adopted after their crimes had been committed.
United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the United States Postal Service, Office of the Inspector General, Northeast Area Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Spencer Police Chief David Darrin; and Shrewsbury Police Chief James Hester Jr. made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office prosecuted the case.
The case was 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/.
Former Newark Police Officer Indicted for Extortion, Bribery, and Filing of False Tax ReturnsRead the Press Release
NEWARK, N.J. – A former Newark police officer was charged today with allegedly soliciting and accepting cash payments from brothel owners in exchange for protecting the brothels from police action and other matters, and for failing to report those cash payments on his personal federal income tax returns, U.S. Attorney Craig Carpenito announced.
Julio Rivera, 49, of Old Bridge, is charged in a 14-count indictment with three counts of extortion under color of official right, six counts of bribery, and five counts of aiding and assisting in the preparation of false tax returns.
According to the indictment:
From 2011 to November 2016, Rivera solicited, accepted, and received more than $100,000 in cash payments from three brothel owners in Newark. While in uniform, Rivera approached each of these brothel owners, and, instead of arresting them, solicited and then began receiving regular cash payments from them. In exchange for these extortionate cash payments, Rivera performed official acts for the benefit of the brothel owners, including declining to arrest the brothel owners who were committing, facilitating, and promoting prostitution.
Rivera also intentionally withheld from his tax preparer information regarding the cash payments that he received from the brothel owners, causing Rivera’s tax returns from 2012 to 2016 to understate his total income.
The maximum terms of imprisonment are 20 years for each extortion count, 10 years for each bribery count, and three years for each tax count. Each count of the indictment carries a maximum potential fine of up to $250,000 or twice the gross gain or loss from the offense.
The charges and allegations against Rivera are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Cari Fais and Karen D. Stringer of the U.S. Attorney’s Office Special Prosecutions Division.
Former Home Health Nurse Pleads Guilty to Tampering with Patients' DrugsRead the Press Release
GRAND RAPIDS, MICHIGAN – Kristie Ann Mollohan, 42, formerly of Kalamazoo, Michigan, pled guilty before the Hon. Phillip J. Green, U.S. Magistrate Judge, to two counts of tampering with a consumer product. This federal offense prohibits tampering with a drug or other consumer product with reckless disregard for the risk of death or bodily injury and under circumstances manifesting extreme indifference to the risk of injury or death. Mollohan faces a maximum sentence of 10 years of imprisonment on each count, and she will be required to serve a term of supervised release after any prison term has been completed. U.S. District Judge Gordon J. Quist will sentence Mollohan on a date to be scheduled by the Court.
Mollohan admitted at the plea hearing that, while working as home health nurse in two homes in Allegan and Barry Counties in August 2016, she removed liquid diazepam (valium) from the medication bottles prescribed to three different patients. All three patients were totally incapacitated at the time from serious brain impairment and required twenty-four hour care. Mollohan admitted that she replaced the diazepam with water or saline solution, resulting in the patients’ diazepam containing less than 10% of the declared diazepam concentration in one case, less than 6% of the declared diazepam concentration in the second case, and less than 1% of the declared diazepam concentration in the third case. Mollohan acknowledged that she knew that she put the patients at risk of serious bodily injury or death given that the diazepam was prescribed, in part, to suppress life-threatening seizures. Mollohan further acknowledged that one of the patients suffered a seizure that was likely the result of the patient receiving diluted diazepam. That patient, a minor, died the next day, although the government acknowledges that it cannot prove Mollohan’s conduct resulted in the death.
United States Attorney Andrew Birge emphasized that federal laws play an important role in the delivery of safe food, drugs, and cosmetics. "Cases like this underscore the obvious: tampering with drugs puts the ultimate consumers at real risk of harm."
The U.S. Food and Drug Administration, Office of Criminal Investigations, the U.S. Department of Health and Human Services, Office of Inspector General, the Michigan State Police, the Allegan Police Department, and the Barry and Allegan County Prosecutors’ Offices cooperated in the investigation of this matter. Assistant U.S. Attorney Raymond Beckering III prosecuted the case.
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Former GlaxoSmithKline Scientist Pleads Guilty to Stealing Trade Secrets to Benefit Chinese Pharmaceutical CompanyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Dr. Yu Xue, 48, of Wayne, Pennsylvania, pleaded guilty to conspiracy to steal trade secrets from GlaxoSmithKline (GSK) to benefit a Chinese pharmaceutical company named Renopharma.
Dr. Xue and two of her associates, Dr. Tao Li and Dr. Yan Mei, created Renopharma in Nanjing, China. Renopharma intended to research and develop anti-cancer drugs and received financial support and subsidies from the government of China. At the time, Xue was employed as a scientist at GSK working on developing biopharmaceutical products. These products typically cost in excess of $1 billion to research and develop.
Xue sent a substantial number of GSK’s scientific documents, some of which contained GSK trade secrets, to Li and Mei at Renopharma in China. The data contained information regarding multiple biopharmaceutical products under development, GSK research data, and GSK processes regarding the research, development, and manufacturing of biopharmaceutical products. Xue typically sent the documents via e-mail or transferred the documents via portable electronic storage devices. Xue sent these documents to Li and Mei with the intention to steal GSK’s information for their economic benefit. On January 5, 2016, the FBI arrested Li and seized his computer on which they found a number of GSK documents containing trade secret and confidential information which he had received from Xue.
“Dr. Xue used her position at GSK to steal valuable trade secrets to benefit a company bankrolled by the Chinese government,” said U.S. Attorney McSwain. “We cannot allow U.S. citizens or foreign nationals to steal sensitive business information and hand it over to competitors in other countries. This sort of economic warfare presents a danger to our economic security, jeopardizes America’s position as a global leader in innovation, and will not be tolerated.”
“Trade secrets are the cornerstone of American innovation and a driver of the nation's economy,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “When a corporation spends billions of dollars developing products and processes, the theft of valuable intellectual property is a clear threat to the company. When stolen trade secrets stand to benefit a foreign economic rival, it’s a threat to our country, as well. The FBI will continue to work vigorously to combat intellectual property theft and bring those responsible to justice.”
Yu Xue is scheduled to be sentenced before the Honorable Joel H. Slomsky. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Katherine E. Driscoll.
Former Finance Manager of San Francisco Architecture Firm Indicted on Wire Fraud, Bank Fraud, and Related ChargesRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Karen Posey with wire fraud, bank fraud, identity theft, and credit card fraud charges, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, filed yesterday and unsealed earlier today, from July 2016 through December 2017, Posey, 57, of Martinez, worked as the business finance manager at a San Francisco architecture firm. The firm specializes in designing schools and other public facilities for people with disabilities. Posey is alleged to have stolen money from the firm in various ways, including by writing company checks and making them out to herself, and then depositing the money in her personal bank account. She also used a corporate credit card to pay for personal expenses and used a corporate debit card to withdraw thousands of dollars in cash from the firm’s account. In total, Posey is alleged to have stolen approximately $235,000 from the firm. The indictment charges Posey with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count each of aggravated identity theft, in violation of 18 U.S.C. § 1028A; bank fraud, in violation of 18 U.S.C. § 1344(2); and fraudulent use of unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2).
Posey was arrested today in Martinez and made her initial appearance in federal court before U.S. Magistrate Judge Jacqueline Corley this morning. Posey was released on a $50,000 bond. Posey’s next appearance is scheduled for September 4, 2018, before U.S. Magistrate Judge Elizabeth Laporte for identification of counsel and arraignment.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Posey faces the following maximum statutory penalties: (1) wire fraud (each count): 20 years in prison, a $250,000 fine, plus restitution; (2) bank fraud: 30 years in prison, a $1,000,000 fine, plus restitution; (3) access device fraud: 10 years in prison, a $250,000 fine, plus restitution; and (4) aggravated identity theft: a two year mandatory term of imprisonment consecutive to the prison term for the underlying charge. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ross Weingarten is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI.
Former Corrections Officer Sentenced for Contraband Smuggling at Jackson County Detention CenterRead the Press Release
KANSAS CITY, Mo. – A former corrections officer at the Jackson County Detention Center was sentenced in federal court today for smuggling contraband cell phones and other items to inmates at the Jackson County Detention Center.
Andre Lamonte Dickerson, 27, of Kansas City, Mo., was sentenced by U.S. District Judge Stephen R. Bough to one year and four months in federal prison without parole.
On April 25, 2018, Dickerson pleaded guilty to two counts of using a telephone in furtherance of the unlawful activity of acceding to corruption, related to a public servant taking a bribe in return for violating his legal duty.
Dickerson admitted that, while employed as a corrections officer at the Jackson County Detention Center, he told a confidential informant that he would smuggle two packs of cigarettes, a cell phone and a cell phone charger to an inmate in the detention center for $500. Dickerson met the informant at a Church’s Fried Chicken restaurant on June 2, 2017, where he received the payment and the contraband items.
The next day, June 3, 2017, Dickerson entered the inmate’s cell and put the contraband on the bed. They engaged in a conversation regarding potential future contraband transactions. Dickerson asked if the inmate would be interested in paying him a monthly fee of $2,500. In exchange, Dickerson would ensure he would be the only inmate on the fifth floor to receive contraband cigarettes, narcotics and telephones. Other inmates would then shop through him for their contraband.
The inmate smoked one of the packs of cigarettes and exchanged the second pack of cigarettes with other inmates for food from the commissary. On the same day, detention center personnel searched his cell and found the phone and phone charger.
On June 18, 2017, a corrections officer found Dickerson’s cell phone in the fifth floor control station. Text messages contained information recording drug deals between Dickerson and inmates within the Jackson County Detention Center.
Dickerson was arrested on June 27, 2017. At the time of his arrest, Dickerson had two cell phones in his possession while he was on duty in the inmate area of the detention center. Corrections officers are not allowed to have cell phones in their possession while on duty and in the areas of the detention center where inmates are housed.
This case was prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI and the Jackson County, Mo., Sheriff’s Department with assistance from the Missouri Department of Corrections, the Kansas City, Mo., Police Department and the Jackson County Detention Center.
Flagler County Couple Indicted on Counterfeit Currency ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Christopher Brent Heath (36) and Christine Marie Beaulieub (37), both of Bunnell, with manufacturing, passing, and possessing counterfeit Federal Reserve notes. Each faces a maximum penalty of 20 years in federal prison on each count. Heath and Beaulieu made their initial appearance in federal court on August 27, 2018, and have been detained. Their trial is set for October 1, 2018.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service - Jacksonville Field Office, the Ormond Beach Police Department, and the Flagler County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Fitchburg Man Sentenced for Dealing OxycodoneRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for dealing Oxycodone.
Marc Merchant, 54, was sentenced by U.S. District Court Judge Timothy S. Hillman to four years in prison and three years of supervised release. In March 2018, Merchant pleaded guilty to three counts of distribution and possession with intent to distribute Oxycodone.
On three occasions, Merchant distributed Oxycodone to an undercover agent in transactions that were audio and video recorded. On two instances, Aug. 9, 2016, and Feb. 17, 2017, Merchant distributed 100 pills to the agent, and on March 8, 2017, Merchant distributed 200 pills to the agent. When Merchant was arrested in April 2017, he was in possession of over $4,000 in cash and approximately 40 Oxycodone pills.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office prosecuted the case.
Federal Jury Convicts Former Logan County Schools Superintendent on Charges Relating to Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that a federal jury sitting in Charleston returned unanimous guilty verdicts following the trial of former Logan County Schools Superintendent Phyllis Doty, 68, of Logan. The guilty verdicts came after a four day jury trial before Senior United States District Judge David A. Faber. The FBI and the West Virginia Legislature Commission on Special Investigations conducted the investigation.
“Guilty. Guilty on all counts,” said United States Attorney Mike Stuart. “We’ve placed an intense priority on public corruption. Violations of the public trust by public officials, a position of trusted authority, is a true cancer to society. Standing in defiance of public corruption is a fundamental priority for this United States Attorney and the United States of America. I want to thank the tireless work of the FBI, the West Virginia Legislature Commission on Special Investigations and AUSAs Gabe Wohl and Erik Goes and our entire team for their shared commitment in defiance of public corruption.”
Doty was found guilty of eight felony charges, including four counts of wire fraud, two counts of theft from a program receiving federal funds, one count of mail fraud and one count of aggravated identity theft and faces up to 122 years in prison when she is sentenced on January 30, 2019.
Doty, who retired from Logan County Schools in 2016, stole over $12,000 in electronic devices purchased by the Logan County Board of Education and used public funds to decorate and supply her son's August 2015 wedding. The scheme began in 2011 when the Logan County Board of Education regularly purchased Apple iPods and iPads for Logan County Schools staff. The jury found that between 2011 and 2015, Doty stole at least 20 of these devices, and either sold them on eBay for profit, or gave them to family members as gifts. Doty directed the purchase of the devices or purchased them herself, and then sold them online or gave them away to her family.
Doty’s scheme included ordering over $6,500 in wedding supplies with Logan County Board of Education money. These items included bread baskets, easels, drink dispensers, columns, decorative urns and a colonnade. Doty claimed that these items were requested by Logan County teachers, however, the teachers knew nothing of these orders and the items mostly remained in boxes until they were used for the wedding. Evidence at trial showed that Doty gave some of these items away to the wedding planner following the wedding.
Doty attempted to cover up her scheme once an investigation into suspicious spending became public by attempting to influence Logan County teachers of the falsehood that she had permission to take iPods purchased by the Logan County Board of Education, and then by Doty asking the wedding planner to return the gifted items to a Logan County school.
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FBI Arrests Amalia Compound Residents on Federal Firearms and Conspiracy ChargesRead the Press Release
ALBUQUERQUE – The FBI has arrested five residents of a compound in Amalia, in Taos County, N.M. (Amalia Compound), on a federal criminal complaint charging them with violating the federal firearms and conspiracy laws. The arrests were announced by U.S. Attorney John C. Anderson and Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division.
The defendants, Jany Leveille, 35, a Haitian national illegally present in the United States, Siraj Ibn Wahhaj, 40, Hujrah Wahhaj, 37, Subhanah Wahhaj, 35, and Lucas Morton, 40, are charged in a criminal complaint that was filed earlier today in the U.S. District Court for the District of New Mexico. The criminal complaint charges Jany Leveille with being an alien unlawfully in possession of firearms and ammunition in the District of New Mexico from Nov. 2017 through Aug. 2018. The criminal complaint charges the other four defendants with aiding and abetting Leveille in committing the offense, and with conspiring with Leveille to commit the offense.
According to the criminal complaint, on Aug. 3, 2018, law enforcement officers of the Taos County Sheriff’s Office executed search warrants at the Amalia Compound, where the five defendants were residing, and allegedly seized at least eleven firearms and a large quantity of ammunition. The complaint alleges that the firearms were transported from Georgia and/or Alabama to New Mexico in Leveille’s vehicle.
The FBI arrested the defendants without incident in Taos, N.M., this afternoon with the assistance of the Taos County Sheriff’s Office. The defendants will make their initial appearances in federal court in Albuquerque on September 4, 2018.
If convicted of the charge against her, Leveille faces a statutory maximum penalty of ten years of imprisonment and deportation upon completion of her sentence. If convicted of aiding and abetting Leveille, Leveille’s co-defendants each face a statutory maximum penalty of ten years of imprisonment. If convicted on the conspiracy charge, the five defendants each face a statutory penalty of five years of imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque Division of the FBI investigated the case, with the assistance of the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Taos County Sheriff’s Office, and the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
U.S. Attorney John C. Anderson and FBI Special Agent in Charge James C. Langenberg thanked the Taos County Sheriff’s Office and 8th Judicial District Attorney’s Office for supporting the federal investigation.
Leveille ComplaintEast Providence Resident Detained for Allegedly Receiving and Possessing Child Pornography Allegedly Sent by a Cranston ManRead the Press Release
PROVIDENCE - An East Providence man was ordered detained in federal custody today on charges he received and possessed images of child pornography, allegedly sent to him by a Cranston man who was ordered detained in federal custody on August 22, 2018, on charges of possessing and distributing child pornography.
It is alleged that on at least three occasions in March and April 2018, Charles P. Chavis, 51, received and retained images of child pornography, allegedly sent to him by Robert E. Soares, 38, of Cranston.
According to court documents, Soares was arrested and charged by Cranston Police on May 27, 2018, after he allegedly forcibly confined and kidnapped his girlfriend, exposed himself to others, and engaged in fighting and violent behavior. A subsequent investigation by Cranston Police determined that in the weeks leading up to his arrest, Soares allegedly persuaded a 14-year-old girl to allow him to take several photographs and a video of her dressed only in her underwear.
A court-authorized search of Soares’ cell phone resulted in the discovery of a series of messages sent and received by Soares allegedly discussing photographs depicting child pornography. It is alleged that several of the messages, some allegedly including photographs depicting child pornography, were sent to Chavis by Soares.
Chavis’ initial appearance in federal court before U.S. District Court Magistrate Judge Patricia A. Sullivan on a criminal complaint charging him with receipt of child pornography and possession of child pornography is announced by United States Attorney Stephen G. Dambruch, Cranston Police Chief Colonel Michael J. Winquist, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant United States Attorney Denise M. Barton.
The matter is being investigated by the Cranston Police Department and Homeland Security Investigations, with the assistance of the Warwick and East Providence Police Departments.
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Dominican National Indicted for Distributing Fentanyl and HeroinRead the Press Release
BOSTON – A Dominican national residing in Lawrence appeared in federal court in Boston today for distributing a mixture of fentanyl and heroin.
Jonathan Martinez, 34, was indicted for distribution of 40 grams or more of fentanyl and 100 grams or more of heroin.
On Aug. 2, 2018, during a joint federal and state law enforcement operation, investigators seized 150 grams of a mixture suspected to contain a mixture of fentanyl and heroin from Martinez in Lawrence.
The charge of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin carries a mandatory minimum penalty of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Martinez will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Massachusetts Attorney General Maura Healey; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 32 Months in Prison for Sexually Assaulting Teenager in Union StationRead the Press Release
WASHINGTON – Morris Graham, 27, of Washington, D.C., was sentenced today to 32 months in prison for sexually assaulting a 14-year-old boy at Union Station earlier this year, U.S. Attorney Jessie K. Liu announced.
Graham pled guilty in May 2018, in the Superior Court of the District of Columbia, to a charge of attempted second-degree child sexual abuse. He was sentenced by the Honorable Ronna L. Beck. Upon completion of his prison term, Graham will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 10 years.
According to the government’s evidence, on Feb. 28, 2018, the victim had come to the District of Columbia with his family from out-of-town for the memorial honoring the late Rev. Billy Graham at the U.S. Capitol. Following their visit to the Capitol, the victim and his family entered Union Station to have food. The victim left his family to find an elevator for his brother, who was in a wheelchair, to allow him to reach the food court. The victim approached and signaled for the elevator on the food court level. A moment later, the defendant walked past the elevator and down the hall, and then he returned to enter the elevator. After that, on the main level, a Union Station janitor entered the elevator, and the defendant moved behind the victim in the elevator. The elevator descended once again to the food court, where the janitor exited the elevator. When the janitor exited the elevator, the defendant moved beside the victim and grabbed the victim’s left hand. The victim turned around when the defendant grabbed his hand, and he could see the defendant’s exposed penis. The defendant forced the victim’s hand to touch his penis. When the elevator doors opened, the victim ran out of the elevator and located his family. The victim provided a description of the defendant to law enforcement and an Amtrak Police officer was able to identify the defendant from surveillance video based on prior encounters with him. The defendant was apprehended the next day, on March 1, 2018, at Union Station, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of Amtrak Police and the Metropolitan Police Department, including the Youth and Family Services Division, which investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica A. Vaughn and Paralegal Specialist T.J. McPhail. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the case.
District Court Enters Permanent Injunction to Stop New Jersey and New York Companies and Executives from Distributing Unapproved and Misbranded DrugsRead the Press Release
A federal court in New Jersey granted a motion for default judgment and entered an order of permanent injunction against S Hackett Marketing LLC d/b/a Just Enhance of Trenton, New Jersey; R Thomas Marketing LLC of Bronx, New York; Shawn Hackett, the President and owner of Just Enhance; and Roger Thomas, the President and founder of R Thomas Marketing LLC, the Department of Justice announced today. The injunction, entered by the U.S. District Court for the District of New Jersey, permanently enjoins the defendants from continuing to distribute unapproved new drugs and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
On July 5, 2017, the Department filed a complaint at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that Just Enhance and R Thomas Marketing LLC use over 100 websites to promote and distribute sexual enhancement products to U.S. consumers. The complaint further alleged that many of the products are unapproved drugs containing the undisclosed ingredient, sildenafil, which is the active pharmaceutical ingredient in the prescription drug, Viagra. According to the complaint, the labeling for defendants’ products claim—without FDA approval or clinical studies demonstrating safety and effectiveness—that the products can treat or prevent a variety of serious conditions, including erectile dysfunction, impotence, and prostatitis. In addition, the labeling does not reveal the potentially adverse consequences that may result from using a product containing sildenafil.
“Compliance with the Food, Drug, and Cosmetic Act is necessary to ensure that consumers have complete confidence in the safety and effectiveness of the drugs they use,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to enforce labeling requirements and protect consumers from the dangers of undisclosed ingredients in drugs.”
After the defendants failed to respond or even appear in the action, the government moved for a default judgment with a proposed order of permanent injunction. The permanent injunction entered today resolves the litigation and requires that the defendants cease the distribution of unapproved new drugs and misbranded drugs. It directs the defendants to cease distribution of all drugs until the companies implement specified remedial measures to ensure compliance with the FDCA.
The government is represented by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Susan Pappy of the New Jersey U.S. Attorney’s Office Health Care and Government Fraud Unit, with the assistance of Associate Chief Counsel for Enforcement Laura Akowuah of the FDA, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at www.justice.gov/usao-nj.
District Court Enters Permanent Injunction to Stop New Jersey and New York Companies and Executives from Distributing Unapproved, Misbranded DrugsRead the Press Release
TRENTON, N.J. – A federal court in New Jersey today entered an order of permanent injunction prohibiting two companies in Bronx, New York, and Trenton, New Jersey, and their executives from distributing unapproved and misbranded drugs, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division announced.
The injunction, entered by U.S. District Judge Michael Shipp in Trenton federal court, permanently enjoins S Hackett Marketing LLC d/b/a Just Enhance of Trenton, New Jersey; R Thomas Marketing LLC of Bronx, New York; Shawn Hackett, the president and owner of Just Enhance; and Roger Thomas, the president and founder of R Thomas Marketing LLC, from continuing to distribute unapproved and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
On July 5, 2017, the Justice Department filed a complaint at the request of the U.S. Food and Drug Administration (FDA). The complaint alleges that Just Enhance and R Thomas Marketing LLC use over 100 websites to promote and distribute sexual enhancement products to U.S. consumers. It also alleges that many of the products are unapproved drugs containing the undisclosed ingredient, sildenafil, which is the active pharmaceutical ingredient in the prescription drug Viagra.
According to the complaint, the labeling for defendants’ products claim – without FDA approval or clinical studies demonstrating safety and effectiveness – that the products can treat or prevent a variety of serious conditions, including erectile dysfunction, impotence, and prostatitis. In addition, the labeling does not reveal the potentially adverse consequences that may result from using a product containing sildenafil.
After the defendants failed to respond to filings or even appear in the action, the government moved for a default judgment with a proposed order of permanent injunction. The permanent injunction entered today requires that the defendants cease distributing unapproved and misbranded drugs and directs R Thomas Marketing LLC and Just Enhance to cease distribution of all drugs until the companies implement specified remedial measures to ensure compliance with the FDCA.
The government is represented by Assistant U.S. Attorney Susan Pappy of the New Jersey U.S. Attorney’s Office and Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Michael Varrone of the FDA, Office of General Counsel, and Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at https://www.justice.gov/usao-nj.
Delaware Man Sentenced on Sex Trafficking ChargeRead 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 Austin Campbell, 46, of Smyrna, Delaware, who was convicted of interstate travel with intent to engage in illicit sexual conduct, was sentenced to serve 70 months in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Aaron J. Mango and Wei Xiang, who handled the case, stated that between June 15, 2017, and August 22, 2017, the defendant, began communicating on a social networking application with an undercover agent employed by the Department of Homeland Security. At the time, Campbell believed the agent was a 15-year-old female from Buffalo. The defendant engaged in very graphic sexual conversations with the agent via chat messages. During them, Campbell discussed traveling to Buffalo to engage in sexual activity.
On August 21, 2017, the defendant indicated that he would be in Buffalo on August 23, 2017. He and the undercover agent discussed the details of how they would meet. On August 23, Campbell traveled from the State of Delaware to a truck stop located in Cheektowaga, NY. After arriving at the truck stop, the defendant sent the agent a message to come and meet him in the parking lot. Campbell was arrested at that time.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Dansville Man Pleads Guilty for His Role in Meth RingRead 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 Kenneth Hoag , 57, of Dansville, NY, pleaded guilty before U.S. District Judge David G. Larimer to possession with intent to distribute five grams or more of methamphetamine. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that on April 7, 2017, the defendant sold methamphetamine to an individual at The Bone Yard, located on State Highway 36 in Dansville. Additionally, on April 21, 2017, Hoag possessed in his tool chest a quantity of methamphetamine. The defendant used and maintained The Bone Yard for the purpose of distributing methamphetamine.
Hoag is one of seven defendants charged and convicted in this case.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Eric Laughton.
Sentencing is scheduled for December 11, 2018, before Judge Larimer.
Dallas Man Indicted for Defrauding Low-Income Children’s Nutrition ProgramRead the Press Release
A federal grand jury this week indicted a Dallas man for defrauding the Summer Food Service Program, a U.S. Department of Agriculture initiative that provides free meals to children in low-income areas when school is not in session.
From June 2011 to October 2014, 42-year-old Michael Anthony Munson, founder of the Heloise Munson Foundation, allegedly submitted reimbursement claims for more than 1.4 million meals he never served, and received $2.5 million in undeserved compensation.
According to prosecutors, Munson paid another individual roughly $75,000 to fabricate invoices for milk, juice, and food from a fictitious company, “Janus Wholesale Food, Inc.” and to camouflage the scheme.
When Munson was notified authorities were reviewing his reimbursement claims, he notified the individual, who created the domain januswholesalefoods.com, opened a bank account in Janus’ name using a fake IRS Employer Identification Number, and fabricated affidavits from non-existent Janus employees claiming to do business with Munson, which were later submitted to government authorities.
Munson, who surrendered to the FBI Thursday, has been charged with five counts of summer food service program fraud, and faces up to 25 years in prison, along with a $50,000 fine plus restitution.
“Low-income families across our District count on the Summer Food Service Program to provide their children with nutritious meals, ” U.S. Attorney Nealy Cox said. “Anyone who takes advantage of a system designed to serve those already struggling will be prosecuted and brought to justice.”
The U.S. Department of Agriculture - Office of Inspector General and Federal Bureau of Investigation conducted the investigation, and Assistant U.S. Attorney Douglas Brasher is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Covington Couple and their Business Charged in 34-Count Indictment for Operation of Fraudulent Business Running Medical Reimbursement Account Program that Caused at Least $40,000,000 in Loss to IRS and ParticipantsRead the Press Release
U.S. Attorney Duane A. Evans announced that DENIS J. JOACHIM, age 52, DONNA K. JOACHIM, age 52, residents of Covington, Louisiana, and their company, The Total Financial Group, Inc. (“TTFG”) were charged yesterday by a federal grand jury in a 34-count Indictment related to their creation, marketing, and operation of what it claimed to be a Medical Reimbursement Program. In particular, the defendants were charged with conspiracy to defraud the United States and to make false statements and representations in connection with a multiple employer welfare arrangement (“MEWA”), in violation of Title 18, United States Code, Section 371 (Count 1); aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2) (Counts 2-13); making false statements in connection with a MEWA, in violation of Title 29, United States Code, Sections 1131(b) and 1149 (Counts 14-18), conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Count 19), wire fraud, in violation of Title 18, United States Code, Section 1343 (Counts 20-25), conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Count 26), and money laundering, in violation of Title 18, United States Code, Section 1957 (Counts 27-34). Additionally, the Government identified the prior seizure of approximately $6,300,000 worth of the defendants’ assets.
According to the Indictment, TTFG was a Louisiana business incorporated by DENIS and DONNA JOACHIM with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. TTFG and its owners created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer- clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program. In total, TTFG took in not less than at least $21,000,000 in fees from the employer-clients and employee-participants.
According to the Indictment, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan, and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG and the JOACHIMS caused at least $20,000,000 in federal FICA taxes to be underpaid as well as a “significant” amount of personal income taxes, amounts for which the employer-clients and employee-participants are individually responsible. In at least one instance, a former participant did not qualify for unemployment benefits based on her participation in Classic 105. In truth, the only money actually paid to TTFG were the fees, which the JOACHIMS used to make numerous personal expenses, including the purchase of a 26-foot boat, a 2016 Grand Design Solitude recreational trailer, a Chevrolet Corvette, a Jeep Wrangler, a Dodge Ram truck, a Mercedes-Benz CL 550 automobile, a GMC Yukon XL Denali, multiple CAN-AM Maverick 1000R off-road vehicles, jet skis, their Covington residence, real property located adjacent to their Covington residence, two (2) residences located in Madisonville, Louisiana, 40 acres of property in Bush, Louisiana, and 125 acres of property in Spring City, Tennessee.
If convicted, DENIS faces a maximum term of imprisonment of 271 years, a fine of up to $7,250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. DONNA faces a maximum term of imprisonment of 261 years, a fine of up to $7,000,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment. They may also be required to forfeit the amounts and items already seized and be subject to further forfeiture.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Internal Revenue Service – Criminal Investigations; Federal Bureau of Investigation; and United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Cheektowaga Man Pleads Guilty to Buying and Selling Counterfeit AirbagsRead 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 Raymond Whelan, 49, of Cheektowaga, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to traffic in counterfeit goods. The charge carries a maximum penalty of 10 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant operates Rayscarparts71.com. Between June 2015 and March 2016, Whelan and co-defendant David Nichols entered into an agreement to sell counterfeit automobile airbags. Whelan would contact Nichols and order numerous airbags bearing counterfeit trademarks of Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi. Nichols would then locate manufacturers in China to supply the requested airbags.
In order to avoid detection during importation, the airbags were mislabeled. Once imported into the United States, Whelan would sell the airbags on eBay utilizing the name Rayscarparts71. The airbags were listed on eBay as genuine used airbags designed to fit Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi.
During the investigation, multiple undercover purchases were made from Rayscarparts71 and airbags were seized from the defendant’s business. All the purchased and seized airbags were determined to be counterfeit. The airbags also contained trademarks of Honda, Toyota, Nissan, Subaru, Mazda, Hyundai, Acura, and Mitsubishi, trademarks registered with the United States Patent and Trademark Office. None of these companies authorized the defendant to utilize their trademarks.
Whelan imported and sold more approximately 360 counterfeit automobile airbags with an average manufacturer’s retail price of $650.00. The total infringement amount was $236,600.
Co-defendant David Nichols was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly and Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
Sentencing is scheduled for December 17, 2018, at 1:00 p.m. before Judge Arcara.
Cary Man Ordered to Pay $293,500 in Restitution to Victims of Child Exploitation OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that yesterday in federal court, Chief United States District Judge James C. Dever III ordered ADAM GEOFFREY FRANKEL, 33, of Cary, North Carolina, to pay $293,500 in restitution to four minor victims of child exploitation crimes charged against him.
FRANKEL was named in a twelve-count Superseding Indictment on September 8, 2017, including charges of manufacturing child pornography, receipt of child pornography, and possession of child pornography. On December 11, 2017, FRANKEL pled guilty pursuant to a plea agreement to manufacturing child pornography. On May 24, 2018, FRANKEL was sentenced to 295 months of imprisonment followed by ten years of supervised release on that charge.
FRANKEL is now ordered to pay $250,000 to a minor victim he used to manufacture child pornography. FRANKEL is ordered to pay the remaining $43,500 to three identified victims of child pornography produced by others, which FRANKEL had in his possession at the time of his arrest.
Although all victims of child exploitation crimes are entitled to restitution under federal law, additional victims in this case either could not be identified or asked that the United States not seek restitution on their behalf.
In addition to restitution, FRANKEL was also ordered to forfeit his residence located on Belrose Drive in Cary along with several pieces of computer equipment, all of which were used to commit the charged offense.
This case arose in October of 2014, when the Cary Police Department began an online investigation relating to the distribution and receipt of child pornography through file sharing programs. During the course of the investigation, FRANKEL was identified downloading and distributing child pornography from an IP address associated with his home. A search warrant was issued for FRANKLE’s home and law enforcement seized multiple computers, external hard drives, cellular phones and media storage devices. The forensic examination of the items collected contained multiple videos created by FRANKEL, he communicated with underage females and solicited them to perform sexual acts on video. The forensic examination also uncovered the defendant’s collection of child pornography of a least 136,350 images.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Cary Police Department and Homeland Security Investigations conducted the criminal investigation of this case. Assistant United States Attorney Melissa Belle Kessler handled the prosecution of this case for the United States.
Buncombe County Man Is Sentenced to Life in Prison for Daughter's MurderRead the Press Release
ASHEVILLE, N.C. – Today, Seth Willis Pickering, 38, of Leicester, N.C. was ordered to serve life in prison for killing his daughter, Lila Pickering, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing hearing.
On February 9, 2018, Pickering pleaded guilty to first-degree murder, and admitted to killing his daughter on September 9, 2016, within the boundaries of the Blue Ridge Parkway. Pickering further admitted that he killed Lila Pickering, who had not attained the age of 18 years and was under his care and control, willfully, deliberately, maliciously and with premeditation.
Pickering will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In handing down today’s sentence, Judge Cogburn said that "there was no excuse for what happened," and stated that Pickering "killed a child to punish social services and his wife."
U.S. Attorney Murray thanked the FBI, the National Park Service and the Buncombe County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorneys David Thorneloe and John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Buffalo Man Pleads Guilty to Selling CocaineRead 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 Brandon Washington, 35, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder to conspiracy to possess with the intent to distribute, and to distribute, between five and 15 kilograms of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between June 2011 and November 2014, the defendant obtained multi-kilogram amounts of cocaine from California, then distributed the cocaine to others in the Buffalo area. In addition, during the same time frame, Washington structured cash deposits, in amounts under $10,000, in an effort to hide the proceeds of his illegal drug sales, and avoid the bank reporting requirements for cash deposits over $10,000.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing will be scheduled at a later date.
Breaux Bridge man pleads guilty to possessing mail stolen from Lafayette and St. Martin parishesRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Breaux Bridge man pleaded guilty Thursday to possessing stolen mail from Lafayette and St. Martin parish addresses.
Kyle Joseph Collette, 35, of Breaux Bridge, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to one count of possession of stolen mail. According to the guilty plea, the St. Martin Parish Sheriff’s Office was contacted on February 19, 2016 about an unrelated matter and learned about items being kept at a Lafayette storage unit. They searched the unit the next day with assistance of the Lafayette Parish Sheriff’s Office and found numerous items, some of which had been reported stolen, and several articles of mail belonging to St. Martin Parish addresses. St. Martin Parish authorities then learned of a room at a Lafayette motel where additional items were being kept. Law enforcement agents searched the motel room and found additional stolen items including mail from Lafayette and St. Martin parish addresses. The investigation confirmed that the mail had been removed from mailboxes in Lafayette Parish and St. Martin Parish.
Collette faces up to five years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for January 2, 2019.
The U.S. Postal Inspection Service, St. Martin Parish Sheriff’s Office, and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Boston Man and Arizona-Based Supplier Sentenced for Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man and his Arizona-based supplier have been sentenced in federal court in Boston for trafficking methamphetamine.
Adrian Carlos Maldonado, 38, of Phoenix, Arizona, was sentenced on Wednesday, Aug. 29, 2018, by U.S. Senior District Court Judge Mark L. Wolf to 10 years in prison and five years of supervised release; and Peter Molloy, 39, of South Boston, was sentenced yesterday to 32 months in prison, three years of supervised release, and ordered to pay a $25,000 fine. In June 2018, Molloy and Maldonado each pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Molloy also pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine.
Molloy began distributing methamphetamine in approximately January 2014, originally purchasing methamphetamine from a variety of sources and distributing the drugs to customers in the Boston area. At some point in roughly January 2015, Molloy began purchasing the drugs from Maldonado, who was based in Arizona. Maldonado arranged for the methamphetamine to be transported from Arizona to Massachusetts.
A search of Molloy’s residence in South Boston resulted in the seizure of more than 160 grams of methamphetamine, $75,762 in cash and a $1,000 money order. As part of his plea agreement, Molloy agreed to forfeit the seized cash and money order, his interest in his condominium, and a 2014 Hyunda Veloster that he used to facilitate drug dealing. Molloy also agreed to waive claims to other items that were seized, or turned over, to law enforcement during the investigation, including an additional $98,000, a $10,000 cashier’s check and another $1,000 money order.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Commissioner Thomas Turco of the Massachusetts Department of Correction; Reading Police Chief Mark D. Segalla; and Boston Police Commissioner William Gross made the announcement. Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; and the Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments assisted with the investigation. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Blackfoot Man Sentenced to 105 Months in Prison for Sage Hill Casino RobberyRead the Press Release
POCATELLO – Dillon McCandless, 28, of Blackfoot, was sentenced yesterday to 105 months in prison for the July 2017 robbery of the Shoshone-Bannock Tribes’ Sage Hill Casino, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge B. Lynn Winmill also ordered that McCandless serve five years of supervised release after his release from federal prison. On June 19, 2018, McCandless pleaded guilty to the robbery charge and to a charge of the use of a firearm during and in relation to a violent crime.
According to court records, on July 23, 2017, at approximately 2:25 a.m., a black GMC truck arrived at the Sage Hill Casino on the Fort Hall Indian Reservation. The truck parked near the front entrance of the casino and a man, later identified as McCandless, stepped out of the truck. He was carrying a shotgun and a plastic bag. He went inside the casino, approached the employee at the teller window, and demanded that the teller place cash in the bag. McCandless pumped the shotgun, ejecting a shell onto the floor. The employee placed cash in the bag and McCandless departed the casino in his truck. He went northbound on Highway 91 and then southbound on Interstate 15.
A video of the robbery depicting a unique tattoo on the robbers hand helped investigators identify McCandless as the perpetrator. Information about the robbery, including the hand tattoo, was released to the news media and police then began receiving tips about the identity of the robber. A Bingham County deputy sheriff identified the robber as McCandless, as did others.
McCandless was stopped in his pickup on Interstate 15 at about 9:00 p.m. that evening by police and was taken into custody. His truck contained a shotgun with a sawed-off barrel and cash with markings consistent with money from the Sage Hill casino. McCandless was interviewed, waived his rights and admitted robbing the casino.
This case was investigated by Fort Hall Police Department; Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Bingham County Sheriff’s Office; Bannock County Sheriff’s Office; Idaho State Police and Pocatello Police Department.
# # #
Baltimore Cocaine Dealer Sentenced to 20 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Corey Hammond, age 30, of Houston, Texas, today to 20 years in prison, followed by 10 years of supervised release, for conspiracy to distribute five or more kilograms of cocaine. Hammond was convicted on March 8, 2018, after a four-day trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration – Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
Evidence at trial established that the defendant was part of a conspiracy to distribute kilogram quantities of cocaine. The drugs were transported from Houston, Texas to Baltimore, Maryland by vehicles equipped with hidden compartments, or “traps.”
According to testimony at trial, law enforcement intercepted phone calls and text messages in which Hammond discussed drug transactions. Intercepted calls and text messages played at trial established that Hammond communicated in code with his co-conspirators discussing the amounts and payment for cocaine. One text message in particular indicated payment in the amount of $256,000 for 8 kilograms. Hammond took the stand at trial and falsely testified that he was selling car parts. Evidence at trial established the quantity of cocaine as being between 15-50 kilograms.
United States Attorney Robert K. Hur praised the DEA, the Baltimore County Police Department, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christopher J. Romano and Special Assistant U.S. Attorney Jeffrey Hann, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Auto Dealership Agrees to Pay Penalty of $1.4 Million and Restitution of More than $730K in Bank Loan Fraud SchemeRead the Press Release
(ERIE, Pa,) – United States Attorney Scott w. Brady announced today that Hallman Chevrolet of Erie, Pennsylvania entered into a Deferred Prosecution Agreement, and agreed to pay a monetary penalty of $1,400,000.00 and more than $737,000.00 in restitution to various lending institutions.
According to the agreement entered into between U.S. Attorney Brady and David Hallman (on behalf of Hallman Chevrolet and the Hallman Auto Group), from 2009 through 2015, with knowledge and acquiescence of David Hallman, Hallman Chevrolet engaged in a bank fraud scheme and a conspiracy to commit bank fraud, for which Hallman accepted responsibility. The parties entered into a comprehensive Deferred Prosecution Agreement to hold Hallman Chevrolet accountable for its actions and to compensate lending institutions. The agreement requires the monitoring of Hallman Chevrolet’s conduct over the next four years and imposes other substantial obligations on the auto dealership and its owner.
U.S. Attorney Brady stated, "For over six years, Hallman Chevrolet defrauded financial institutions throughout the region by systematically falsifying loan documents in hundreds of transactions. The perpetration of large-scale auto loan fraud schemes in western Pennsylvania must stop. The auto dealership industry is put on notice that substantial penalties await those who engage in such schemes. In addition to the combined fine and restitution exceeding $2 million, the Policies, Procedures, Compliance and Ethics program required by this agreement should serve as a template for responsible, ethical conduct within this industry."
"The FBI treats these types of crimes very seriously," said Special Agent in Charge Robert Jones. "We work to hold accountable those who undermine the integrity of these types of institutions."
Among other acts uncovered in the investigation, to which the parties stipulated in the Deferred Prosecution Agreement, Hallman Chevrolet engaged in a fraudulent down payment scheme by manipulating bills of sale and bank lending contracts to hide from financial institutions the true source of customer down payments. During the scheme, Hallman Chevrolet customers were coached by Hallman Chevrolet employees to provide jewelry (most of which was low value costume jewelry) to Hallman Chevrolet in return for Hallman Chevrolet making it appear valuable down payments had been provided by customers. As a result, Hallman Chevrolet led the financial institutions into making unsafe investment decisions by having under-collateralized assets and financially risky credit applicants. Financial institutions were led to believe customers used their
own money for the down payments making it appear they were more credit worthy, when in effect, the financial institutions themselves had unknowingly supplied their own loan funds to cover the fictitious down payment. Through the scheme, Hallman Chevrolet earned sales and profits that were otherwise impossible.
For those financial institutions impacted by the loan scheme, loan default rates were over double the industry standard. This high default rate was due primarily to the fact that customers had paid no money of their own for the purchase of the vehicle and had little incentive, and no actual financial ability, to pay down the loan balance.
This loan fraud scheme affected financial institutions throughout the United States and in Erie, Pennsylvania. For the years 2009 through 2015, Hallman Chevrolet conducted over 600 separate sales through the falsification of down payments. Due to the excessive default rate, financial institutions suffered losses approximating more than $1,000,000.
The investigation also disclosed Hallman Chevrolet failed to have in place a compliance program to prevent and detect violations of law. Since late 2017, Hallman Chevrolet has substantially improved its compliance program, has trained employees and staff, and has taken steps to ensure compliance with the law.
As part of the Deferred Prosecution Agreement entered into with the government, over the next four years, Hallman Chevrolet must engage in a substantial corporate compliance and ethics program and a vigorous monitoring and audit regime.
In exchange for the agreement entered into by Hallman Chevrolet, including the significant monetary penalty, which will disgorge Hallman of any profits realized from the bank fraud scheme, the substantial payments of restitution to lending institutions, and Hallman’s other obligations over the next four years, the United States Attorney has agreed to defer any prosecution against Hallman Chevrolet for its wrongful acts. If Hallman Chevrolet fails to abide by the terms and conditions of the Deferred Prosecution Agreement, the United States Attorney may seek to institute criminal proceedings against Hallman Chevrolet and may use against Hallman Chevrolet the stipulation of facts establishing its culpability in the bank fraud scheme as set forth in the agreement.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the discovery of the bank fraud scheme conducted by Hallman Chevrolet.
Arkansas State Senator Jeremy Hutchinson Indicted on Wire and Tax Fraud ChargesRead the Press Release
LITTLE ROCK—A federal grand jury indicted current Arkansas State Senator Jeremy Hutchinson for allegedly devising a scheme to steal thousands of dollars in campaign contributions—spending them on personal luxuries and expenses—and then falsifying state campaign finance reports and tax filings as part of the scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office, and Special Agent in Charge Tamera Cantu of IRS Criminal Investigation (IRS–CI) Dallas Field Office, made the announcement after the indictment was unsealed today.
Hutchinson, 44, of Little Rock, has been a State Senator since 2011 and first became involved in elected politics as a State Representative in 2000. The 12-count indictment charges Hutchinson with eight counts of wire fraud and four counts of filing false tax returns. Hutchinson is scheduled to appear before U.S. Magistrate Judge Patricia S. Harris on September 18 at 10 a.m.
"Jeremy Hutchinson allegedly diverted contributions from his Arkansas State Senate campaigns to pay for an array of personal expenses," said Assistant Attorney General Benczkowski. "The charges in this case demonstrate the commitment of the Department and our law enforcement partners to investigate and prosecute those involved in alleged campaign-related misconduct."
"This indictment by the grand jury represents serious charges, and we look forward to preparing our case and presenting it to a jury of 12 people who we trust to do justice in this matter," said U.S. Attorney Hiland.
"The indictment of Jeremy Hutchinson represents our commitment to vigorously investigate allegations of public corruption by elected officials," said FBI Special Agent in Charge Upchurch. "We appreciate the efforts of the U.S. Attorney’s Offices for the Eastern and Western Districts of Arkansas, IRS-CI, FBI, and the Criminal Division of the Department of Justice’s Public Integrity Section."
"The grand jury’s indictment of Mr. Hutchinson demonstrates the collective resolve of IRS-CI to enforce our nation’s tax laws," said IRS-CI Special Agent in Charge Cantu.
Counts one through eight of the indictment charge Hutchinson with wire fraud related to falsified state campaign finance reports and soliciting campaign donors with fraudulent intent. Counts nine through 12 charge Hutchinson with tax fraud for allegedly filing false tax returns from 2011 to 2014.
The maximum penalties for violation of 18 U.S.C. § 1343 (wire fraud), as charged in counts one through eight is not more than 20 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release. A violation of 26 U.S.C. § 7206(1) (filing false tax return), as charged in counts nine through 12, carries a maximum penalty of three years’ imprisonment, a fine of not more than $100,000, together with the costs of prosecution, and not more than one year of supervised release.
The investigation into Hutchinson was conducted by the FBI and IRS-CI. The case is being prosecuted by Assistant United States Attorneys Stephanie Mazzanti and Patrick Harris from the Eastern District of Arkansas, Assistant United States Attorney Ben Wulff from the Western District of Arkansas, and Trial Attorney Marco Palmieri of the Criminal Division of the Department of Justice’s Public Integrity Section.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Arkansas State Senator Jeremy Hutchinson Indicted on Wire and Tax Fraud ChargesRead the Press Release
A federal grand jury in Little Rock, Arkansas indicted current Arkansas State Senator Jeremy Hutchinson yesterday for allegedly devising a scheme to steal thousands of dollars in campaign contributions—spending them on personal luxuries and expenses—and then falsifying state campaign finance reports and tax filings as part of the scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office, and Special Agent in Charge Tamera Cantu of IRS Criminal Investigation (IRS–CI) Dallas Field Office, made the announcement.
Hutchinson, 44, of Little Rock, has been a State Senator since 2011 and first became involved in elected politics as a State Representative in 2000. The 12-count indictment charges Hutchinson with eight counts of wire fraud and four counts of filing false tax returns. Hutchinson will appear before U.S. Magistrate Judge Patricia S. Harris on Sept. 18.
“Jeremy Hutchinson allegedly diverted contributions from his Arkansas State Senate campaigns to pay for an array of personal expenses,” said Assistant Attorney General Benczkowski. “The charges in this case demonstrate the commitment of the Department and our law enforcement partners to investigate and prosecute those involved in alleged campaign-related misconduct.”
“This indictment by the grand jury represents serious charges, and we look forward to preparing our case and presenting it to a jury of 12 people who we trust to do justice in this matter,” said U.S. Attorney Hiland.
“The indictment of Jeremy Hutchinson represents our commitment to vigorously investigate allegations of public corruption by elected officials,” said FBI Special Agent in Charge Upchurch. “We appreciate the efforts of the U.S. Attorney’s Offices for the Eastern and Western Districts of Arkansas, IRS-CI, FBI, and the Criminal Division of the Department of Justice’s Public Integrity Section.”
“The grand jury’s indictment of Mr. Hutchinson demonstrates the collective resolve of IRS-CI to enforce our nation’s tax laws,” said IRS-CI Special Agent in Charge Cantu.
Counts one through eight of the indictment charge Hutchinson with wire fraud related to falsified state campaign finance reports and soliciting campaign donors with fraudulent intent. Counts nine through 12 charge Hutchinson with tax fraud for allegedly filing false tax returns from 2011 to 2014.
The investigation was conducted by the FBI and IRS-CI. The case is being prosecuted by Trial Attorney Marco Palmieri of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephanie Mazzanti and Patrick Harris from the Eastern District of Arkansas and Ben Wulff from the Western District of Arkansas.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Amsterdam Man Pleads Guilty to Stealing and Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Onic Martinez, 34, of Amsterdam, New York pled guilty yesterday to possessing firearms as a convicted felon and transporting firearms stolen from Target Sports, Inc., a federally licensed firearms dealer in Schenectady, New York announced United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Martinez, as part of his guilty plea, admitted that on October 24, 2017, he met with Omar DeJesus, Christian Roman, and Jose Fontanez in Amsterdam, New York, and reached an agreement with them to transport dozens of stolen firearms from a storage locker in Schenectady, New York to DeJesus’s residence in Amsterdam. Thereafter, Martinez, assisted by another man, drove to Schenectady, retrieved dozens of the stolen firearms, and transported them back to Amsterdam. As payment for his assistance, the defendant received several of the stolen firearms.
At sentencing on January 3, 2019 in Syracuse, Martinez faces up to 20 years in prison, a maximum fine of $500,000, and up to 3 years of post-imprisonment supervised release. 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.
Martinez’ co-conspirator Christian Roman, 24, of Schenectady was indicted earlier this year on charges that he stole firearms from Target Sports on October 22, 2017. The stolen firearms included pistols, shotguns, and rifles. The indictment further alleges that Roman possessed, concealed, and stored the stolen firearms through November 1, 2017. The charges in the indictment are merely accusations. Roman is presumed innocent unless and until proven guilty.
Jose Fontanez, 36, of Schenectady, pled guilty earlier this year to stealing the firearms and other, related charges. He is scheduled to be sentenced on December 17, 2018.
Omar DeJesus, 31, of Amsterdam; Dalmary Morales, 37, of Schenectady; and Juan Saez, age 35, of Rochester, New York, all pled guilty earlier this year for their respective roles in stealing, transporting, and possessing the firearms. They are scheduled to be sentenced on December 17, 2018.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Amherst Man Pleads Guilty to Filing False Tax ReturnsRead 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 Maxim Levin, 40, of Amherst, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to filing a false tax return. The charge carries a maximum penalty of three years in prison, and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that from 2012 to 2015, the defendant operated Glebova Realty Group LLC, which purchased, renovated and sold real estate throughout the Buffalo, NY area. During those years, Levin filed federal income tax returns but failed accurately to report the gross receipts that he earned from his real estate business to the Internal Revenue Service and failed to pay taxes on such income. Specifically, Levin caused over $3,100,000 of gross receipts, derived from his real estate business, to be excluded from his income tax returns, resulting in a tax loss of $161,606.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge James D. Robnett, New York Field Office, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for December 13, 2018, at 10:30 a.m. before Chief Judge Gerace.
25 Ms-13 Gang Members Arrested in Mendota and Los Angeles for Assault and Drug TraffickingRead the Press Release
Murder, Kidnapping, and Assault Indictments Against MS-13 Members also Unsealed
FRESNO, Calif. — As part of a multi-agency operation, 25 individuals associated with Mara Salvatrucha (MS-13) were arrested in California on federal and state charges in connection with their gang activities, including assault with a dangerous weapon in aid of racketeering and conspiracy to distribute and possess with intent to distribute controlled substances. Additionally, two federal indictments were unsealed today: one charging two MS-13 gang members with kidnapping and murder in aid of racketeering and another charging three MS-13 gang members with conspiracy and assault with a dangerous weapon in aid of racketeering.
The charges were announced by U.S. Attorney McGregor W. Scott, Assistant Attorney General for the Criminal Division Brian Benczkowski, California Attorney General Xavier Becerra, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin, Fresno County District Attorney Lisa Smittcamp, and Fresno County Sheriff Margaret Mims.
The investigation leading to today’s arrests began after reports that MS-13 had established a presence in Fresno County. The investigation centered in and around the City of Mendota, a Central Valley town 35 miles west of Fresno. Investigators found evidence of broad criminal activity, including murder, assault, firearms possession and drug trafficking activity.
“MS-13 is a brutal transnational criminal organization that has wreaked havoc in communities across the United States,” said Assistant Attorney General Benczkowski. “The gang engages in indiscriminate and senseless acts of violence, as demonstrated by the charges announced today, which allege murder, attempted murder, and drug trafficking in the State of California. Dismantling MS-13 and other violent gangs that terrorize our streets will remain a top priority of the Department of Justice. Today’s announcement is the result of comprehensive and coordinated federal, state, and local law enforcement action, and I commend the Eastern District of California and all of our partners for their hard work on this case. It is precisely this kind of coordinated effort that allows us to most effectively protect our communities and hold MS-13 members accountable for their heinous crimes.”
U.S. Attorney McGregor W. Scott stated, “The operation leading to today’s arrests reflects the incredible teamwork between our federal, state, and local law enforcement partners, and our shared commitment to keeping our communities safe from violent criminal gangs like MS-13. This investigation had a strong impact not only in Fresno County, but across the state and country as we were able to provide information and leads to law enforcement in Los Angeles, Nevada, Texas, New York, and elsewhere to help prevent and solve serious crimes, including murder. Criminal enterprises like MS-13 will not be tolerated in any of our towns, no matter how small.”
“When you terrorize communities, you must pay the price,” said Attorney General Becerra. “Today’s announced operation will lead to the vigorous prosecution and, I believe, conviction of violent criminal gang members. Operation Blue Inferno is a successful display of the dedication and hard work of our combined law enforcement personnel. We will continue working alongside our federal and local law enforcement partners to ensure safety and security for every California family.”
Fresno County District Attorney Smittcamp stated: “Operation Blue Inferno is an example of what happens when law enforcement agencies from the federal, state and local levels work together to eradicate criminal street gangs. MS 13’s cell in Fresno County is now destroyed, and we will continue to work together to keep them out of our communities. The Fresno County District Attorney’s Office is proud to have been an essential part of Operation Blue Inferno and is grateful to all our law enforcement partners who made these arrests possible.”
Fresno County Sheriff Mims stated: “This multi-agency operation will result in the disruption of MS-13 activity across the Nation. I appreciate the cooperation of all agencies involved to work together to help dismantle this extremely violent transnational gang. I am confident that our work will restore a stronger sense of safety for people living in the communities these gang members have been terrorizing.”
“The FBI is committed to aggressively investigating and disrupting gang activity. Through the Safe Streets Task Force and the Transnational Anti-Gang Initiative, the FBI leverages resources to target MS-13 — the first and only street gang to be designated by the United States government as a transnational criminal organization — by focusing on the gang’s structure and leadership,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “To ensure success, the FBI it committed to working in close cooperation with federal, state, local and foreign law enforcements partners to coordinate operations and share information.”
“Global criminal organizations like the MS-13 strike fear into our local communities here in the United States by committing violent and often brutal crimes in our backyards; but by all levels of law enforcement working together, their vicious and dangerous acts will not go unpunished,” said Ryan L. Spradlin, HSI Special Agent in Charge for northern California and northern Nevada. “While transnational gangs may have tentacles that reach globally, Homeland Security Investigations does as well and is well‑equipped to intercept these threats to our national security.”
The first federal charges filed as a result of the investigation were filed in January but were not unsealed until now. That indictment alleges that on December 18, 2017, two MS-13 gang members operating out of Mendota – Israel Rivas Gomez and John Doe (aka Marcos Castro) – kidnapped and murdered a man in Fresno County in furtherance of MS-13’s criminal gang enterprise. Another indictment filed in April and unsealed now alleges that on May 5, 2017, Luis Reynaldo Reyes Castillo and Nilson Israel Reyes Mendoza committed an assault with dangerous weapons for the purpose of maintaining MS-13’s presence in the community and to gain status within MS-13.
Several other MS-13 gang members were arrested today based on a complaint filed this week. The complaint charges 16 individuals affiliated with MS-13 in Fresno County with various crimes, including two separate, gang-related assaults and drug trafficking activity to support the gang’s activity. Those documents allege that on August 12, 2018, Lorenzo Amador, along with two others, stabbed a rival gang member in the back at an intersection in Mendota. The victim was transported to the hospital, underwent surgery, and survived. Court documents also allege that on May 14, 2018, Denis Barrera-Palma, Ever Membreno, and Edgar Torres-Amador participated in a gang-related assault of a man walking near an elementary school, in which one gang member beat the victim with a metal pipe.
Additionally, the complaint alleges that between May 2017 and August 2018, 16 members of the MS-13 enterprise participated in a drug trafficking conspiracy in both Fresno County and Los Angeles. These defendants allegedly obtained, sold, and profited from street‑level drug dealing, and used the proceeds to further MS-13’s criminal objectives.
As part of this operation, 19 federal and four state search warrants were served in Mendota, Kerman, and Los Angeles. Guns, knives, and machetes were found and seized as a result of these searches. Additionally, California Department of Corrections and Rehabilitation conducted searches of 37 cells in 11 state prisons in California on individuals related to this investigation. Among the items seized in the prisons were cellphones, drugs and weapons.
The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers.
Assisting in the arrests were the U.S. Marshals Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Clovis Police Department.
Assistant U.S. Attorneys Kimberly A. Sanchez, Kathleen A. Servatius, Ross Pearson, Angela Scott; Trial Attorney Marianne Shelvey from the Department of Justice, Criminal Division, Organized Crime and Gang Section; and Fresno County Senior Deputy District Attorney Dennis Lewis are handling the prosecutions.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
30 August 2018
Woman Sentenced to Prison for Armed Bank RobberyRead the Press Release
RICHMOND, Va. – A Vermont woman was sentenced today to 7 1/2 years in prison for her role in two area bank robberies.
According to court documents, in December 2017, Jennifer Bessette, 34, of Milton, and two co-conspirators planned and executed bank robberies of a BB&T Bank in Henrico and a Wells Fargo Bank in Richmond. Bessette served as the getaway car driver and wrote the demand notes. The robbery crew obtained approximately $1,200 in cash from the Wells Fargo Bank robbery and $4,200 in cash from BB&T. GPS locators in the money stolen during the Wells Fargo robbery led law enforcement to apprehending the defendants.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Alfred Durham, Chief of Richmond Police, and Humberto I. Cardounel, Jr., Chief of Henrico County Police Division, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Angela Mastandrea-Miller 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. 3:18-cr-66.
Windsor Man Pleads Guilty to Selling Heroin and Fentanyl to Enfield Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TIMOTHY CHARLEMAGNE, also known as “Red,” 42, of Windsor, pleaded guilty today in New Haven federal court to one count of possession with intent to distribution, and distribution of, controlled substances.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 11, 2015, members of the Enfield Police Department and medical personnel responded to an untimely death at a residence in Enfield. The victim was located in a bedroom of the residence. Investigators seized 30 empty wax folds from the bedroom where the victim was found, and the victim’s cell phone.
Analysis of the victim’s cellphone and witness interviews confirmed that the victim purchased heroin combined with fentanyl from CHARLEMAGNE shortly before the victim died.
CHARLEMAGNE has been detained since his arrest on December 20, 2017. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall in New Haven on November 26, 2018, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration, Enfield Police Department, Windsor Police Department, Hartford Police Department and Connecticut’s Office of Adult Probation. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Wilmington Woman Sentenced to 8 Years in Prison for Distributing Heroin that Resulted in DeathRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced PORSCHE RENEE DILLARD, 31 from Wilmington, North Carolina, to 96 months in prison, followed by 3 years of supervised release.
On May 23, 2018, DILLARD pled guilty to a one-count Criminal Information which charged her with distribution of a quantity of heroin and fentanyl, in violation of 21 U.S.C. § 841(a)(1). As part of her plea agreement, DILLARD stipulated and agreed that the use of the heroin and fentanyl she distributed on April 24, 2016 resulted in the death of the user.
The investigation revealed that on April 24, 2016, officers with the New Hanover County Sheriff’s Office responded to an overdose at a residence in Castle Hayne, NC. Upon arrival at the scene, officers found a deceased victim with a syringe in her arm, several used bags of heroin/fentanyl stamped with the words “Old School”, as well as the victim’s cellular phone. A search of the victim’s phone revealed multiple text messages between the victim and “Porcha” who was later identified as DILLARD.
On June 9, 2016, DILLARD was located and arrested on unrelated state drug charges. DILLARD gave an interview to law enforcement officers during which she admitted to selling heroin to the victim in the specific stamped bags located at the victim’s residence.
=Mr. Higdon commented: “In 2017, an average of three North Carolina residents died each day from overdoses of heroin and fentanyl. This defendant’s actions directly contributed to the tragic and unnecessary deaths that are occurring across our state.
With the imposition of an 8 year sentence, the people of New Hanover County can begin to recover from the effects of this crime and we are very pleased that the United States Department of Justice could play a role in achieving that result.”
This case was prosecuted federally as part of the United States Department of Justice’s Opioid Initiative and the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina.
Implemented in March 2018, the Take Back North Carolina Initiative emphasizes the regional assignment of federal prosecutors to work with local, state and federal 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 initiative targets those organizations and individuals who are responsible for increasing violent crime rates and drug trafficking – quickly routing the cases to federal court when prosecution in that venue would deliver the most significant impact.
The investigation of this case was conducted by the Wilmington FBI Coastal Carolina Criminal Enterprise Task Force consisting of the FBI, New Hanover County Sheriff's Office, Brunswick County Sheriff's Office, Wilmington Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney Lawrence J. Cameron prosecuted the case on behalf of the United States.
Warner Robins Felon Sentenced to 151 Months for Gun PossessionRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Elbert Lee Williams, age 51, of Warner Robins, Georgia, was sentenced to serve 151 months in prison for Possession of a Firearm by a Convicted Felon. The sentence was handed down by U.S. District Court Judge Marc T. Treadwell on August 27, 2018.
On April 13, 2016, a search warrant was executed at a residence in Warner Robins. Mr. Williams was located in a bedroom of the home. In the same bedroom, the police found a loaded, Hi-Point 9mm handgun, 12.7 grams of crack cocaine, 34.6 grams of powder cocaine, four digital scales, and $1,741.00. Mr. Williams was prohibited from possessing a firearm due to his prior convictions for possession of cocaine with intent to distribute, armed robbery and burglary.
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.
“My office will vigorously seek to prosecute felons with firearms,” said United States Attorney Charles E. Peeler. “I commend the Warner Robins Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their work in this case.”
The case was investigated by the Warner Robins Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and it was prosecuted by Assistant U.S. Attorney Kimberly Easterling.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-621-2603 or [email protected].
United States Attorney’s Office Announces an 11 Year Sentence for Defendant Who Provided Material Support to a Terrorist OrganizationRead the Press Release
DENVER – Jamshid Muhtorov, age 42, a lawful permanent resident of the U.S., originally from Uzbekistan, was sentenced today by Senior U.S. District Court Judge John L. Kane to 132 months in federal prison for providing material support to a terrorist organization, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced together with the Assistant Attorney General for National Security Division, John C. Demers.
Muhtorov appeared at today’s hearing in custody and was remanded at its conclusion. Following his incarceration, Muhtorov will be placed on a term of 15 years of supervised release and will be transferred to ICE custody pursuant to an immigration detainer for removal proceedings.
The defendant was first charged by criminal complaint on January 19, 2012, and was arrested at O’Hare International Airport in Chicago, en route to Istanbul, Turkey. He was subsequently indicted by a federal grand jury in Denver, and later convicted by a Denver jury on June 21, 2018, after a 19-day trial. As described in a 40-page Memorandum and Opinion issued by Senior Judge Kane today, Muhtorov desired to support the Islamic Jihad Union, a designated terrorist organization. He swore allegiance to that organization and Muhtorov told his eight year old daughter to “pray for your Daddy to become a martyr….”
“Defending our country from terrorism is a core mission of the Department of Justice,” stated United States Attorney Bob Troyer. “Our prosecutors have devoted years of their professional lives to this critical mission, and the people of our state have every reason to be proud of their dedicated, tireless work.”
"Today’s sentence represents the FBI’s dedication to pursuing those intent on harming the citizens of our communities by providing material support to terrorist organizations” said FBI Denver Special Agent in Charge Calvin Shivers. "The FBI will continue to work through our strong partnership with the U.S. Attorney’s Office to protect our communities from those engaged in these types of activities."
On April 30, 2018, a jury in the U.S. District Court found Muhtorov’s co-defendant, Bakhtiyor Jumaev, guilty of similar charges. Jumaev was sentenced on July 18, 2018 by Judge Kane to 76 months in federal prison, to be followed by 10 years on supervised release.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force.
The defendant was prosecuted by Assistant U.S. Attorneys Greg Holloway, Julia Martinez, David Tonini and Beth Gibson.
U.S. Attorney Statement on Demonstration at Federal Facility in Southwest PortlandRead the Press Release
PORTLAND, Ore.—Billy J. Williams, U.S. Attorney for the District of Oregon, provided the following statement on the demonstration taking place at the federal building located at 4310 SW Macadam Avenue in Portland on August 30, 2018.
“Last week I met with members of the Interfaith Movement for Immigrant Justice (IMIrJ), an organization that advocates on behalf of immigrant communities. We discussed their concerns on a number of important topics including asylum seekers being held at FCI Sheridan. Today, individuals affiliated with IMIrJ and others have gathered to protest at a federal building in Southwest Portland that houses employees and serves visitors of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), and the Army Corps of Engineers. They have blocked the building’s driveway and main entrance and refused to move when instructed to by federal authorities.”
“As I’ve said before, freedom of speech and peaceful assembly are sacred rights, but we do not support actions that impede the work of federal employees. We acknowledge demonstrators’ concerns and value the conversations we’ve had with IMIrJ and others, but urge them to refrain from blocking access to this building. Failure to abide by federal law will result in arrest.”
U.S. Attorney David C. Joseph, Justice Department remind the public in the wake of disasters to report fraud to the National Center for Disaster FraudRead the Press Release
SHREVEPORT/LAFAYETTE/MONROE/ALEXANDRIA/LAKE CHARLES, La. – The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times.
The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward complaints to the appropriate agency for investigation.
“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Rod Rosenstein. “We are now in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor fraud;
- Debris removal fraud; and
- Theft, looting, and other violent crime
In ongoing efforts to strengthen partnerships and better inform the American people of its mission, the NCDF has joined with Louisiana Attorney General Jeff Landry, who was recently installed as the President of the National Association of Attorneys General (NAAG), in an effort to spread the message of the NCDF to more of our partners nationwide. We at the NCDF are collaborating with Attorney General Landry and the NAAG to inform every state Attorney General of the mission and function of the NCDF as part of Attorney General Landry’s presidential initiative on disaster fraud.
“Louisiana has suffered from the devastation of many hurricanes and other natural disasters throughout its history,” U.S. Attorney David C. Joseph stated. “I join with NCDF Executive Director U.S. Attorney Brandon Fremin and Louisiana Attorney General Jeff Landry in condemning the actions of those who would take advantage of disaster victims and pledge to vigorously prosecute those who take advantage of programs that are in place to provide relief. The National Center for Disaster Fraud is a great tool to expose those who would try to use national disasters for personal gain and to prosecute the fraud schemes that hurt those most in need. As we face the current hurricane season, I urge the public to prepare, but also to remember that there is help should disaster strike.”
“As President of the National Association of Attorneys General, my goal is to use the next 18 months to gather as much intel as possible so we may better prepare state and federal leaders for future crises,” said Louisiana Attorney General Jeff Landry. “We are fortunate to have the NCDF right here in Louisiana, and it has served as a great resource to our citizens through hurricanes, floods, and other natural disasters.”
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims, as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail). Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.