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28 August 2018
U.S. Attorney’s Office and Law Enforcement Partners Postpone Tonight’s Town Hall Meeting at Medgar Evers Library Regarding Project EJECTRead the Press Release
Jackson, Miss. – The United States Attorney’s Office and its law enforcement partners are postponing tonight’s scheduled town hall meeting at Medgar Evers Library in Jackson to discuss Project EJECT, as the local councilman for the Ward recently noted that he has a conflict with the timing of tonight’s Jackson City Council meeting and several law enforcement partners are now unavailable to attend, announced United States Attorney Mike Hurst.
The town hall meetings held by the U.S. Attorney’s Office and its law enforcement partners to explain the good work being done under Project EJECT to combat crime have solicited valuable input directly from citizens that will ultimately make Jackson safer and its citizens more secure.
"Working with our law enforcement partners under Project EJECT here in the City of Jackson, we have already been successful in reducing violent crime in the City of Jackson by almost 20% from just this time last year. I commend the Jackson Police Department, our federal and state law enforcement agents and officers, and our local and federal prosecutors for taking the fight to the criminals and protecting law-abiding citizens. We will continue this fight together to make Jackson safer for everyone, and we will only continue to be successful with involvement and cooperation from our communities and our residents," said U.S. Attorney Hurst.
Project EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness, under the Department of Justice’s Project Safe Neighborhoods ("PSN"). PSN is 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.
Since announcing Project EJECT in December 2017, the U.S. Attorney’s Office, the Jackson Police Department, and agents and task force officers from various federal and state law enforcement agencies, have indicted over 80 individuals for federal crimes ranging from carjacking to illegally possessing firearms to business robberies to drugs. Of those individuals whom have been arrested and are being prosecuted, approximately 97% have been detained while awaiting trial, and 40 have either pled or been found guilty of committing federal crimes. For those whom have been convicted and sentenced, the average sentence thus far for crimes prosecuted under Project EJECT is over 6 years in federal prison.
U.S. Attorney Announces Project Safe Neighborhoods InitiativeRead the Press Release
RAPID CITY, SD – On August 28, 2018, United States Attorney Ron Parsons announced the formation of a Project Safe Neighborhoods Task Force in Rapid City, South Dakota, and highlighted some of the initiative’s early successes.
One of the highest priorities of the Department of Justice is the reduction of violent crime. In the fall of 2017, U.S. Attorney General Jeff Sessions revitalized the Project Safe Neighborhoods program, also referred to as PSN. The PSN program is a national-scale violent crime reduction program aimed at bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer and more secure.
The PSN program utilizes focused enforcement efforts, along with technology and data analysis, to identify enforcement priorities. Since the program began in 2001, PSN has been updated and enhanced, emphasizing the role of U.S. Attorneys, the promise of new technologies, and above all, partnership with local communities. The program is proving to be more effective than ever and is helping fulfill our mission to make America safer.
The primary focus of the PSN initiative in South Dakota is to reduce gun and drug crimes through collaborative law enforcement, proactive investigations, data analysis, and community outreach.
In our communities, the rise of methamphetamine and other drug trafficking presents a clear and present danger to our children, families, citizens, and communities. At the same time, gun crimes and other acts of violence are rising as well. This is not a coincidence.
Make no mistake: drug trafficking is a crime of violence. Illegal drugs are the direct cause of much of the suffering and death in our communities. It has become common for law enforcement to find guns in the possession of drug dealers and users. Often, these guns have been stolen from law-abiding citizens. Over the past several years, there has been a nationwide increase in violent crimes, including robberies and assaults, committed by individuals under the influence of meth and other drugs.
The U.S. Department of Justice is committed to reversing those trends.
In cooperation with state, local, and federal law enforcement agencies, the U.S. Attorney’s Office for the District of South Dakota has targeted Rapid City as a focus location for its Project Safe Neighborhood efforts. A Rapid City PSN task force has been established, consisting of representatives from:
- U.S. Attorney’s Office
- Pennington County State’s Attorney’s Office
- South Dakota Attorney General’s Office
- Rapid City Police Department
- Pennington County Sheriff’s Office
- South Dakota Division of Criminal Investigations
- U.S. Marshal’s Service
- Bureau of Alcohol, Tobacco, Firearms, and Explosives
- Drug Enforcement Agency
- Community partners through our Re-entry Initiative
Making direct use of crime mapping and other data analysis, these state, local, and federal law enforcement agencies are working together to identify and arrest the most significant violent offenders, increase enforcement efforts against illegal guns and drugs, conduct warrant sweeps, and participate in community engagement and prevention programs.
Once cases are developed, the U.S. Attorney’s Office, Pennington County State’s Attorney’s Office, and Attorney General’s Office coordinate the prosecution of these cases to determine whether the case is better suited for state or federal court. The PSN task force meets regularly to discuss ongoing investigations, prosecutions, and necessary changes that will help reduce violent crime.
Since the beginning of this year, the U.S. Attorney’s Office in Rapid City alone has indicted approximately 45 individuals for firearms offenses and another 43 individuals for drug offenses under the Project Safe Neighborhoods initiative. During that same time period, many more criminal defendants have been charged in state court.
In addition, the Rapid City Police Department, Pennington County Sheriff’s Office, and federal ATF agents have collectively pulled at least 209 guns off the street thus far in 2018. All of these firearms were confiscated because they were illegal guns, such as sawed-off shotguns; used in the commission of a crime, including drug crimes; or found in the possession of someone prohibited by law from having firearms, such as those with a prior felony conviction. And this total does not include the 22 stolen guns recently recovered by law enforcement from the burglary at The Rooster Sporting Goods store in Rapid City.
The U.S. Attorney’s Office also is committed to prosecuting those who illegally attempt to obtain guns by lying, either directly or by omitting the truth, when seeking to purchase a gun. Federal law requires licensed firearms dealers to perform a background check before transferring any firearm. Those who attempt to thwart the background check process by lying or providing incomplete information on the required forms are likely to find themselves the subject of a federal prosecution.
Nationwide, at least 85 percent of all law enforcement occurs at the state, local, and tribal level. It is our state and local police officers, our sheriffs and deputies, DCI officers, highway patrol officers, federal agents, and tribal police who stand in the breach every day of their lives protecting us from violence and lawlessness. The Department of Justice is dedicated to doing everything it can to support them, including the reinvigoration of Project Safe Neighborhoods by Attorney General Sessions.
“We want everyone to know that we will not tolerate drug dealers in our communities,” said U.S. Attorney Parsons. “We won’t tolerate the use of guns against our fellow citizens. If you commit these crimes, we will find you. And you will be sent to prison.”
Recent federal prosecutions in Rapid City resulting from Project Safe Neighborhoods include:
- Nathanial Geiger, charged with possessing a sawed off shotgun. When arrested, he was found to be high on meth. He was sentenced to 7 years in federal prison for possessing the illegal firearm.
- AJ Bradshaw, charged with possessing firearms while using a controlled substance. He forfeited 41 firearms and explosives and was sentenced to 8 years in federal prison.
- William Corbine and Tristan Amos, charged with illegally discharging a firearm during a crime of violence. Corbine was sentenced to 15 years and Amos sentenced to 10 years in federal prison.
- Daniel Richards, charged with conspiracy to distribute methamphetamine in Rapid City. He was sentenced to more than 17 years in federal prison. Numerous co-conspirators were charged and are awaiting trial.
- Brandon Dykzuel, charged with distribution of meth by sending it through the U.S. mail. He was sentenced to almost 6 years in federal prison.
- Michael Mamola and Timothy Conwell, charged with conspiracy to distribute methamphetamine. Mamola was sentenced to 8 years and Conwell sentenced to 6 years in federal prison.
Two Sent to Prison after Seminal Fluid Links them to Armed RobberyRead the Press Release
HOUSTON – Two men have been ordered to prison after DNA found in seminal fluid identifies them in connection to the armed robbery of a Houston area massage parlor, announced U.S. Attorney Ryan K. Patrick. Javian Chapman, 20, and Joseph Berzat, 21, both of Houston, pleaded guilty in March 2018 to two counts of aiding and abetting interference with commerce by robbery and one count of aiding and abetting the discharge of a firearm during and in relation to a crime of violence.
Today, U.S. District Judge Andrew S. Hanen handed Chapman a 63-month sentence for the robbery charges in addition to an additional 120 months for the firearms charge which must be served consecutively to the other sentence imposed. Berzat received 96 months for the robbery charges and 120 months for the firearms charge. The respective 183 and 216-month terms of imprisonment will be immediately followed by five years of supervised release. The defendants were also ordered to pay restitution for an ATM they damaged and the cash they stole as well as medical expenses incurred by one of the victims. At the hearing, the court heard Berzat and Chapman had physically assaulted the employees. The court determined that the robbers had abducted employees by forcing them to move into separate rooms at gunpoint.
From approximately 11:00 p.m. Friday, Aug. 5, 2016, until nearly 2:00 a.m. Aug. 6, 2016, Chapman and Berzat entered Hana Spa located at 14015 Bammel North in Houston, demanding money and property at gunpoint. They ultimate left with cash, a Samsung Galaxy S5 cell phone and a 2014 Acura SUV. While inside, the suspects broke open the ATM and removed cash from inside using a drill and other tools they had brought with them. They also discharged a firearm.
During the robbery, the suspects had physically and sexually assaulted employees. Authorities later processed the scene for forensic evidence and uncovered DNA from seminal fluid found at the scene which positively identified Berzat and Chapman. Investigators also recovered a palm print from the ATM, which was determined to match Berzat. In addition, Spa employees identified both men as the suspects that held pistols and demanded money during the robbery.
Chapman and Berzat have been and will remain in custody.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Jill J. Stotts prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.
Two Rapid City Men Charged in the Rooster BurglaryRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men were charged in federal district court with Theft of a Firearm, Possession of Stolen Firearms, and Use of a Firearm During a Drug Trafficking Crime.
Matthew Keifer, age 30, and Zephaniah Thompson, age 28, were charged on August 24, 2018. Keifer and Thompson appeared before U.S. Magistrate Judge Daneta Wollmann on August 27, 2018, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years up to life in federal prison and/or a $250,000 fine, 5 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Keifer and Thompson stealing approximately 24 firearms from The Rooster on August 22, 2018, at Rapid City. The charges are merely an accusation and Keifer and Thompson are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Department of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Keifer and Thompson were detained pending a preliminary hearing. A trial date has not been set.
Turner Man Charged with Illegal Firearm/Silencer Possession and Marijuana TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Andrew Waite, 29, of Turner, Maine, was charged by indictment in U.S. District Court with illegal possession of a firearm in relation to a drug trafficking crime, illegal possession of a silencer without a serial number that was not registered to him, and possession with intent to distribute marijuana.
According to a criminal complaint, the charges arose from an investigation into a drug trafficking organization located in Turner that is alleged to have grown and distributed large quantities of marijuana in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. In February 2018, federal, state and local law enforcement agents executed over 20 search warrants in the Lewiston-Auburn area. The defendant’s Nezinscott Drive residence was searched. Agents seized about 100 pounds of marijuana, a loaded 9mm pistol, a 7.62mm x 39 pistol, a drum magazine, ammunition, a silencer and more than $150,000, much of which was stacked in $5,000 increments. Agents also seized a Ferrari pursuant to a seizure warrant on the basis that it was forfeitable as proceeds of drug trafficking, facilitated drug trafficking, or was involved in money laundering offenses.
If convicted, the defendant faces between five years and life and a $250,000 fine on the firearm charge, up to five years and a $250,000 fine on the drug charge, and up to 10 years and a $250,000 fine on the silencer charge.
The defendant was arrested on July 18 in North Carolina and is scheduled to make his initial appearance in U.S. District Court in Portland today at 3:30 p.m.
The investigation is being conducted by the U.S. Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Maine State Police; and the Lewiston, Auburn, Windham, Biddeford and Scarborough Police Departments.
A criminal complaint and an indictment are merely accusations, and a defendant is presumed innocent unless proven guilty in a court of law.
Three Ocala Men Found Guilty in Heroin ConspiracyRead the Press Release
Ocala, FL – A federal jury has found Juan Pablo Malagon-Alvarez (40), Jose Lucio Mendoza-Servin (35), and Aurelio Gomez-Andrade (40), all of Ocala, guilty of conspiracy to possess with the intent to distribute one kilogram or more of heroin. Each faces a minimum mandatory of 10 years, and up to life, in federal prison for that charge. In addition, the jury found Malagon-Alvarez guilty of possession with the intent to distribute heroin; the charge carries a maximum penalty of 20 years in federal prison. The sentencing hearings are scheduled for November 14, 2018.
Malagon-Alvarez, Mendoza-Servin, and Gomez-Andrade had been indicted on January 11, 2018.
According to testimony and other evidence presented at trial, between June 2015 and December 14, 2017, Malagon-Alvarez distributed multiple ounces of heroin on a weekly or bi-monthly basis to two Ocala drug dealers. During several transactions, Malagon-Alvarez was assisted by Mendoza-Servin and Gomez-Antrade. The drug deals typically occurred on horse farms in Ocala. One cooperating witness obtained 49 grams of heroin from Malagon-Alvarez on June 16, 2017.
This case was investigated by the Gainesville resident office of the Drug Enforcement Administration, with assistance from the Ocala Police Department, the Marion County Sheriff’s Office, and the Marion County Unified Drug Enforcement Strike Team. It is being prosecuted by Assistant United States Attorney Dale Campion.
Three Defendants Sentenced for Their Roles in Series of Rochester Armed RobberiesRead 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 Jonathan Middlebrooks, 22, Nasir Perez, 20, and Deborah Siegel-Edelman, 22, all of Rochester, NY, who were convicted of aiding and abetting Hobbs Act Robbery, were sentenced by U.S. District Judge Elizabeth A. Wolford. Defendants Middlebrooks and Perez were also convicted of aiding and abetting the possession of a firearm that was discharged during a crime of violence. Defendant Perez was sentenced to serve 180 months in prison; defendant Middlebrooks was sentenced to serve 188 months in prison; and defendant Siegel-Edelman was sentenced to serve 144 months in prison.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that Middlebrooks, Perez, and Siegel-Edelman took part in a series of gunpoint robberies at stores in the City of Rochester between September 3, 2017, and September 23, 2017:
• On September 3, 2017, Perez and Middlebrooks committed a gunpoint robbery of the Hudson Save More on Hudson Avenue. Together with co-conspirators Damien Rutledge and Dylan Miller, Perez acted as a lookout at the front door while Middlebrooks removed approximately $1,420 from the store’s cash registers; • On September 14, 2017, during a gunpoint robbery of the 18 Hour Store on North Goodman Street, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $500 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver; • On September 18, 2017, during a gunpoint robbery of the Four Star Market on Lake Avenue, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $2,650 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver; • On September 23, 2017, during a gunpoint robbery of the Bronx Market on Brown Street, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $900 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver; • Also on September 23, 2017, Siegel-Edelman drove Middlebrooks and Perez, along with co-defendants Miller and Rutledge, to the Greyhound Express Mini Mart on Carter Street. Middlebrooks, Perez, Miller, and Rutledge entered the store, a gun was pointed at the store owner, and after a struggle between the store owner and one the robbers, a store employee removed the robber’s gun from the robber’s hand. The store employee then pointed the gun at Middlebrooks, who put his hands up, but also moved forward towards the store employee. After Middlebrooks took several steps towards the employee, the employee fired the gun, and the discharged round hit Middlebrooks in the stomach. Middlebrooks, Perez, Miller and Rutledge got back into Siegel-Edelman’s car, and she drove them away from the scene of the attempted robbery.
Charges remain pending against defendants Dylan Miller and Damien Rutledge. The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The Natural Center for Disaster Fraud Announces Partnership with the National Association of Attorneys General to Combat Disaster-Related FraudRead the Press Release
** MEDIA ADVISORY **
WHAT: United States Attorney Brandon J. Fremin and Louisiana Attorney General Jeff Landry will make an announcement regarding a partnership between the National Center for Disaster Fraud and the National Association of Attorneys General.
WHEN: Wednesday, August 29, 2018 at 9:00 a.m.
WHERE: National Center for Disaster Fraud Call Center, LSU’s Johnston Hall
Texas Man Sentenced to Almost 12 Years for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Antonio Ulises Mireles, 24, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 142 months of imprisonment for his conviction on a methamphetamine trafficking charge. Mireles will be on supervised release for five years after completing his prison sentence. Mireles also was ordered to pay a $7,000 money judgment and $500 in community restitution.
Mireles was arrested on Aug. 11, 2017, on a criminal complaint charging him with drug trafficking offenses in Dona Ana County, N.M. According to court documents, Mireles distributed quantities of drugs to an undercover law enforcement agent on the following dates:
- Approximately 572 grams of methamphetamine on June 9, 2017;
- Approximately 856 grams of methamphetamine and 493 grams of heroin on July 13, 2017;
- Approximately 458 grams of methamphetamine on July 28, 2017; and
- Approximately 1,209 grams of methamphetamine on Aug. 11, 2017.
On Nov. 8, 2017, Mireles pled guilty to a felony information charging him with conspiracy and distribution of methamphetamine. In entering the guilty plea, Mireles admitted that from June 2017 through Aug. 2017, he conspired with others to distribute methamphetamine. Mireles further admitted that during that time, he was responsible for distributing approximately 3.3 kilograms of methamphetamine in Dona Ana County.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Brock E. Taylor.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Tampa Man Sentenced to Ten Years for Attempted Enticement of A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Richard Plummer (37, Tampa) to 10 years in federal prison for attempted enticement of a minor. Plummer was also ordered to serve 25 years of supervised release and must register as a sex offender. He pleaded guilty on May 25, 2018.
According to court documents, in March 2018, Plummer exchanged over 160 text messages with an individual whom he believed was 14 years old. During the conversations, Plummer attempted to induce the child to meet him for a casual sexual encounter. Plummer also sent the child explicit photographs and video of himself. The 14-year-old boy, in reality, was an undercover officer from the Tampa Police Department. Officers arrested Plummer after he showed up to a residence to have sex with the child.
This case was jointly investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
This represents another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Taiwanese Exchange Student Who Threatened to Shoot up School Pleads Guilty to Federal Ammunition ChargeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Taiwanese exchange student pleaded guilty today to being an alien in possession of ammunition. Sentencing is scheduled for December 11, 2018 before United States District Judge Nitza I. Quinones Alejandro.
According to the Information, An-Tso Sun, 18, also known as “Edward Sun,” is a Taiwanese national who came to the United States in August 2017 on an F-1 visa to be a student at a high school in Upper Darby, Pennsylvania. While attending school, he resided with a host-family in Upper Darby. Beginning in October 2017, Sun visited a Philadelphia shooting range on multiple occasions, where he fired a variety of firearms, including semiautomatic rifles and shotguns. Over the next few months, Sun purchased hundreds of rounds of ammunition from online vendors, and directed that they be shipped to his host-family address. In January 2018, Sun purchased pistol components from multiple online vendors and assembled them to create a functioning homemade pistol.
On March 26, 2018, after the school bell rang at the end of the day, Sun made the following statement to a fellow student: “Hey, don’t come to school on May 1st . . . I’m going to come here armed and shoot up the school. Just kidding.” That student reported the incident to school officials, who then alerted law enforcement officials. Upper Darby Police officers executed a search warrant at Sun’s residence and seized the following from Sun’s bedroom: 20 rounds of 9mm Blazer Brass ammunition; a ballistic suit, including a vest, jacket and pants; a crossbow; seven arrows; and various firearm accessories and shooting equipment. Sun’s host-mother was later interviewed and explained that, prior to the search, she had removed a number of items from Sun’s bedroom, including bullets and firearm-related items, and given the items to an attorney. Law enforcement took possession of those items, which included, among other things, a homemade semiautomatic pistol, two AK-style 30-round magazines with ammunition, two AR-15-style 30-round magazines with ammunition, and numerous additional boxes of ammunition, totaling over 1,600 rounds.
Sun was arrested by Upper Darby police and charged locally with making terroristic threats. He pled guilty to that charge in early June and was sentenced to 4-23 months’ incarceration, with immediate parole, and credit for time served. He was released to the custody of U.S. Immigration and Customs Enforcement and charged federally by complaint on June 5, 2018. He has been in federal custody since that time.
Under federal law, as a student present in the United States on an F-1 visa (a nonimmigrant visa) without a hunting license, Sun was not permitted to possess any ammunition or firearms. Sun faces a maximum possible sentence of ten years’ imprisonment, a $250,000 fine, and three years’ supervised release. As part of his guilty plea, Sun has agreed that upon completing his prison sentence, he is subject to immediate and permanent removal from the United States.
“Federal, state, and local law enforcement authorities will continue to work together to prevent tragedy and combat terrorism and threats of violence,” said U.S. Attorney McSwain. “As I have stated before, however, parents and guardians are the first line of defense in these kinds of situations involving children’s access to firearms. It should be obvious that no child should be stockpiling an arsenal – or have any access to firearms or other dangerous weapons – without their parents’ or guardians’ knowledge. Every parent needs to be involved and actively aware of what is going on in their child’s life. It is their duty and obligation, not only to the child, but also to the community at large.”
“Sadly, threats of school violence have become all too common in this country,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Children in this country should feel safe in their school environment and free from the violence that terrorizes communities when these senseless acts occur. Thanks to the quick action and diligent teamwork of federal, state, and local law enforcement in this particular case, a potentially devastating tragedy was averted.”
“In the case of An-Tso Sun, there is no question that this young man is a dangerous individual, who was armed with over 1,000 rounds of ammunition, ready to cause devastating harm to his classmates,” said Delaware County District Attorney Katayoun M. Copeland. “As the result of the swift response of his classmates, school officials, and the Upper Darby Police Department, no one was harmed, and Mr. Sun is now rightfully facing the severe consequences of his actions. I would like to commend Homeland Security Investigations and the Upper Darby Police Department for leading this investigation and thank United States Attorney William M. McSwain and the United States Attorney’s Office in the Eastern District of Pennsylvania for pursuing federal charges in this case and ensuring the safety of our residents.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, with the assistance of the Upper Darby Police Department and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
Saratoga Doctor Sentenced to More Than Five Years in Prison for Lying Related to Health Care Matters and Providing False Billing Statements to Health Care Benefit ProgramsRead the Press Release
SAN JOSE- Vilasini Ganesh was sentenced today to 63 months in prison for making false statements related to a health care benefits program, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
Ganesh, 47, and her husband Gregory Belcher, 56, both of Saratoga, Calif., were convicted of the charges on December 15, 2017, after an eight-week trial. The evidence at trial demonstrated Ganesh submitted a series of false medical claims related to the family medical practice she owned, Campbell Medical Group in Saratoga. For example, Ganesh submitted claims for days when a patient had not been seen by the provider and claims for patients who had been seen by a physician provider who no longer was affiliated with her practice. Additionally, Ganesh billed insurers with claims that certain patients were seen twelve to fifteen times in a single month.
On July 13, 2017, a federal grand jury indicted Ganesh and Belcher, charging them with one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); multiple counts health care fraud, in violation of 18 U.S.C. § 1347 and 2; and making a false statement relating to health care matters, in violation of 18 U.S.C. § 1035. The jury convicted Belcher of one count of making a false statement related to health care matters and convicted Ganesh of five counts of health care fraud and five counts of making false statements. The jury acquitted defendants of the remaining counts.
During Ganesh’s sentencing hearing, Judge Koh stated that Ganesh obstructed justice by misrepresenting her understanding of the legal system, the amount of money she was paid by insurers, and whether she understood that it was improper to “upcharge” when submitting claims to insurers. Judge Koh also found that Ganesh had abused a position of trust by submitting the false claims. In addition to the prison term, Judge Koh sentenced Ganesh to a 3-year term of supervised release and ordered the defendant to pay restitution in the amount of $344,916.20. Ganesh will begin serving the prison sentence on November 1, 2018.
On April 4, 2018, Judge Koh sentenced Belcher to a year and a day in prison to be followed by three years of supervised release.
Assistant U.S. Attorneys Patrick Delahunty and Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider and Nina Burney Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Roma Man Sentenced for Hiring Others to Purchase FirearmsRead the Press Release
McALLEN, Texas – A 21-year-old man from Roma has been ordered to federal prison following his conviction for aiding and abetting the making of false statements or representations with regards to firearms records, announced U.S. Attorney Ryan K. Patrick. Alexis Lopez pleaded guilty May 15, 2017.
Today, U.S. District Judge Randy Crane sentenced Lopez to 51 months imprisonment to be immediately followed by three years of supervised release. The sentence was enhanced as the court took into consideration the fact that Lopez recruited and directed three straw purchasers to purchase a total of four .50 caliber rifles on his behalf.
From 2015 to 2017, Lopez and straw purchasers bought a total of 10 firearms, five of which were previously recovered in Mexico. The majority of the firearms were military style firearms. In one instance, authorities recovered a .50 caliber rifle in Mexico within 17 days of its purchase.
During the hearing today, the court heard that the investigation began when a federal firearms license holder (FFL) referred information to law enforcement concerning a suspicious individual believed to be using an assumed name who was attempting to purchase a grenade launcher. Authorities later determined that the individual in question was Lopez.
Lopez has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations jointly conducted the investigation. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Purported International Banker Convicted of Investor FraudRead the Press Release
A federal jury convicted a Manhattan Beach, California woman of eight counts of wire fraud yesterday, announced United States Attorney Matthew Schneider. The convictions followed a week-long trial in front of U.S. District Judge Robert H. Cleland.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation and Special Agent in Charge Manny Muriel, Internal Revenue Service-Criminal Investigation Division.
“Our office aggressively investigates and prosecutes people who defraud our citizens through lies and deceit,” stated United States Attorney Matthew Schneider stated. “When investors entrust their hard-earned money to third parties, they should know that their money won’t be stolen. When investors are lied to and taken advantage of, we’ll hold the swindlers accountable for their crimes.”
Gayle Hassan Al-Said, 68, a purported international banker, was found to have defrauded local Detroit investors and used their investment funds for her own benefit. Among the expenditures that Al-Said made using investor funds were purchases at high-end retail stores in Europe, payment for a plastic surgeon, and cash transfers to herself and her family members. Al-Said also used investor funds to make a down payment on a $4 million home and rented a high-end London flat for $16,000/month. She failed to disclose any of these expenditures to the investors, who had been led to believe that their investments would be placed in risk-free trust accounts.
Al-Said also claimed to have high-level connections to the royal family of Saudi Arabia and represented herself to be the chairwoman and chief executive officer of multiple international banks. Evidence at trial demonstrated that these banks were, in fact, shell companies that did not engage in any banking activity.
In total, Al-Said’s fraudulent scheme caused approximately $1.3 million in losses to investors.
Al-Said faces a maximum possible penalty of 20 years’ imprisonment for each count of conviction. Sentencing has been set for January 8, 2019 at 1:30 p.m..
The case was investigated by special agents of the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Stephen L. Hiyama and Andrew J. Yahkind.
Providence Nurse Sentenced for Tampering with OxycodoneRead the Press Release
BOSTON – A licensed nurse was sentenced today in federal court in Worcester for tampering with oxycodone by stealing pills from a nursing home where she worked and attempting to conceal the theft by replacing the medication with other medications.
Charlotte Demers, 37, of Providence, R.I., was sentenced by U.S. District Court Judge Timothy S. Hillman to four years of probation, with the first six months to be served in home confinement. In June 2017, Demers pleaded guilty to four counts of tampering with a consumer product, specifically oxycodone, a narcotic used for pain relief. Demers enrolled in the Court-run RISE program, which she successfully completed.
Between Sept. 12, 2016, and Oct. 8, 2016, while working as a Licensed Practical Nurse at Countryside Health Care in Milford, Mass., Demers tampered with four blisterpacks of oxycodone that had been prescribed for residents of the nursing facility. She removed the oxycodone pills from the blisterpacks, replaced them with other medications that were used to treat other medical conditions, re-sealed the blistercards and put them back on medication carts at the nursing facility.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office prosecuted the case.
The Court-run RISE Program (Repair, Invest, Succeed, Emerge) is designed for individuals who have pled guilty and are under pretrial supervision prior to sentencing. These individuals must apply for admission to the program and be accepted into the program by the U.S. District Court.
Project Huntington Update: Two More Operation Saigon Sunset Defendants Plead GuiltyRead the Press Release
HUNTINGTON, W.Va. – Another two defendants indicted for their roles in a major, multi-state heroin and fentanyl distribution network pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. To date, 11 of the 15 defendants charged in the indictment have entered guilty pleas. The joint investigation was conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Huntington. Detroit. Jacksonville. Canton. Far reaching and netting drug traffickers from across the east coast,” said United States Attorney Mike Stuart. “Operation Saigon Sunset closed down a major drug network. Our message to drug thugs and traffickers? Huntington and West Virginia are CLOSED to hooligans. Stay away or be prepared to join the Peterson gang in a federal prison.”
Willie Peterson, also known as “Chill,” 50, from Detroit, entered his guilty plea to an indictment charging him with conspiracy to distribute 100 grams or more of heroin and a quantity of fentanyl. Peterson admitted that between July 2017 and April 2018 he conspired with individuals to distribute 100 grams or more of heroin and quantities of fentanyl in Huntington, West Virginia. Peterson admitted that he distributed quantities of heroin to his brother, Manget Peterson, also known as “Money,” for him to distribute in Huntington in exchange for money. Individuals in Huntington would send Peterson drug proceeds in Detroit, Michigan from drug sales in Huntington, West Virginia. As part of his plea agreement, Peterson also admitted that in March 2018 he assisted David Miller, also known as “John,” in placing fentanyl and cocaine in a black box and attaching the box to Miller’s vehicle. Miller intended to transport the controlled substances to Huntington for distribution purposes. However, the Michigan State Police conducted a traffic stop on Miller and seized the controlled substances.
Corey Beach, 30, from Jacksonville, Florida, entered his guilty plea to an indictment charging him with conspiracy to distribute heroin. Beach admitted that between October 2017 and January 2018 he conspired with individuals to distribute heroin in Huntington, West Virginia. As part of the plea agreement, Beach admitted that Luther Peterson, also known as “Mook,” told him to deliver heroin to an informant at the Burger King on Route 60 in Huntington, West Virginia.
Willie Peterson faces between 5 years and up to 40 years in prison and Beach faces up to 20 years in prison when they are sentenced on December 10, 2018.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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Owner of Old Town Albuquerque Jewelry Stores Sentenced to Six Months for Fraudulently Selling Filipino-Made Jewelry as Native American-MadeRead the Press Release
ALBUQUERQUE – U.S. District Judge Judith C. Herrera of the District of New Mexico today sentenced Nael Ali, 54, of Albuquerque, N.M., for violating the Indian Arts and Craft Act (IACA) by fraudulently selling counterfeit Native American jewelry as Indian-Made. Judge Herrera sentenced Ali, who previously pled guilty to two felony IACA charges, to six months of imprisonment followed by a year of supervised release. Ali also was ordered to pay $9,048.78 in restitution.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian or Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
“The tremendous contributions made by Native Americans to the cultural and artistic heritage of our nation must be preserved and protected,” said New Mexico U.S. Attorney John C. Anderson. “This case and the continuing investigation demonstrates the Justice Department’s commitment to safeguard the rich culture and heritage of New Mexico’s Pueblos and Tribes while promoting confidence in New Mexico’s rich art market.”
“We applaud the outstanding work conducted by the Office of the U.S. Attorney in District of New Mexico, the U.S. Fish and Wildlife Service Special Agents who conduct Act investigations on behalf of the Board, and all others who have assisted in this landmark case,” said Harvey Pratt, Chairman, Indian Arts and Crafts Board, U.S. Department of the Interior. “Their commitment to combating the onslaught of counterfeit Indian art is to be highly commended. The Board firmly believes that robust Indian Arts and Crafts Act enforcement is imperative to protecting and strengthening Indian Country's economies, artistic traditions, and cultural heritage for both current and future generations.”
“This landmark investigation has brought much needed attention to the rampant problem of counterfeit Native American jewelry and art in the marketplace,” said Edward Grace, Acting Assistant Director of the Office of Law Enforcement for the U.S Fish and Wildlife Service. “We hope today’s sentencings will deter others who would seek to defraud consumers and undermine Native American artists.”
“Native American art is more than stunning jewelry. It also is a critical source of income for the many different tribes that create it and share with the world their culture and history,” said Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division. “The FBI worked closely with our partners on this case, which we hope demonstrates our commitment to protecting one of our country’s most precious resources.”
The charges against Ali and co-defendant Mohammad Manasra, 58, also of Albuquerque, were the result of an ongoing federal investigation led by the U.S. Fish and Wildlife Service (FWS) and FBI into an international scheme to violate the IACA. During a law enforcement operation in Oct. 2015, federal agents executed 15 search warrants in New Mexico and one in California. Eight of the search warrants were executed in Albuquerque including four at retail and wholesale jewelry businesses. In addition, search warrants were executed at three jewelry stores in Gallup, three jewelry stores in Santa Fe, and a jewelry production shop in Zuni. Federal agents also executed a search warrant at a jewelry store in Calistoga, Calif. Three federal seizure warrants also were executed on bank accounts in a Charlotte, N.C., bank and a San Francisco, Calif., bank. In addition, the Philippines National Bureau of Investigations conducted a series of investigative interviews at two factories in Cebu City, Philippines.
Ali and Manasra were charged in Oct. 2015, in a four-count indictment with conspiracy to violate the IACA and three substantive violations of the Act. A superseding indictment was filed in March 2016, charging Ali and Manasra with conspiracy and substantive violations of the IACA, mail fraud, and wire fraud. The superseding indictment charged Ali, the owner of two jewelry stores, Gallery 8 and Galleria Azul, in Albuquerque’s Old Town specializing in Native American jewelry, and Manasra, a wholesaler of Native American jewelry, with violating IACA by conspiring to import and fraudulently sell Filipino-made jewelry as Native American-made.
Ali pled guilty on Oct. 18, 2017, to violating IACA by selling counterfeit Native American-style jewelry out of two retail jewelry stores located in Albuquerque’s Old Town. In entering the guilty plea, Ali admitted selling Native American-style jewelry made by laborers in the Philippines; mixing Filipino-made jewelry with Native American-made jewelry without labeling the Filipino-made jewelry with the country of origin; intentionally stocking the Filipino-made jewelry in a manner that falsely suggested that it was Native-American made; providing lists for the employees to reference symbols and initials to falsely suggest the jewelry was Native American-made; and training employees to tell customers the jewelry was Native American-made.
Manasra pled guilty to a misdemeanor charge of violating IACA on Oct. 5, 2017, and admitted fraudulently selling a Kokopelli pendant and earing set, two rings, a bracelet and an orange cluster pendant to an undercover agent. Manasra acknowledged knowing the jewelry was made in the Philippines even though he intentionally told the undercover agent that the Kokopelli set was “Zuni” and the rings, bracelet and cluster set were “Navajo,” and displaying the Filipino-made jewelry to suggest that it was made by members of federally recognized Indian Tribes. Manasra was sentenced on May 10, 2018, to two days of imprisonment and a year of supervised release. Manasra also was ordered to forfeit 5,268 pieces of Native-American style jewelry and to pay a $500 money judgment.
“HSI will continue to work with our federal, tribal and local law enforcement partners to protect the intellectual property and cultural patrimony of Native Americans,” said HSI Special Agent in Charge Jack P. Staton. “We will be relentless and use our cross-border authority to make sure individuals, who want to profit from crimes such as these, are brought to justice.”
“It was an honor to assist with this unique and important case to help protect something truly exclusive to this region. It has been a recent trend that when our two agencies work together, great things happen,” said Captain Tim Cimbal, Northwest Area Field Operations, State of New Mexico Department of Game and Fish.
The continuing investigation is led by the Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service and the Albuquerque Division of the FBI with assistance from Homeland Security Investigations (HSI), the Indian Arts and Crafts Board, and the State of New Mexico Department of Game and Fish. The U.S. Marshals Service and DEA assisted in the investigation of this case. The U.S. Fish and Wildlife Service’s Office of Law Enforcement for Region Eight and California Department of Fish and Wildlife provided support in Calistoga, Calif., and HSI provided support in La Habra, Calif. The U.S. Fish and Wildlife Service Attaché for Southeast Asia and the Philippine National Bureau of Investigations provided support in Cebu City, Philippines. Assistant U.S. Attorneys Kristopher N. Houghton and Sean J. Sullivan prosecuted the case and are assisting in the continuing investigation.
Opinion: Prosecutors Need the Tools to Protect Americans from Violent OffendersRead the Press Release
Nothing federal prosecutors do is more important than protecting our fellow Americans from violence. In recent years, however, we have lost one of the most important tools we use to protect our communities: the Armed Career Criminal Act (ACCA). Only Congress can restore the ACCA to help us keep our neighborhoods safe.
The ACCA operated on a simple premise: when a felon is convicted of illegally possessing a firearm, he receives a mandatory fifteen-year sentence if his prior convictions include three or more “violent felonies” or “serious drug offenses.” These “armed career criminals” are not low-level offenders but rather criminals who have already been convicted of multiple serious offenses and then were caught with a firearm. In contrast to those included under the ACCA, lower sentences are given to felons who illegally possess firearms but lack that violent history. Common sense tells us that when a felon with a violent past illegally possesses a firearm, he is extremely dangerous and must be incarcerated. The ACCA was intended to bring that common-sense idea to the law.
For a long time, the ACCA really worked. After a period of increasing violent crime in America, President Reagan signed the ACCA into law in 1984. From 1964 to 1980, the overall violent crime rate tripled in the United States. Robbery crimes and rapes tripled, and murders doubled. Then came the ACCA and other major criminal reforms; the elimination of parole, reform of the bail system, the sentencing guidelines, and better funding for law enforcement. The goal of these reforms was to reduce violent crime, and from 1991 to 2014, violent crime dropped by half. Murders and aggravated assaults dropped by half, while robberies dropped by nearly two-thirds. The ACCA, along with these other reforms, was a resounding success that made our neighborhoods safer.
So what happened to the ACCA? The answer is a 2015 Supreme Court decision called Johnson v. United States. There, the Supreme Court considered whether Samuel Johnson, a white supremacist who admitted to planning acts of domestic terrorism, was properly deemed an armed career criminal after he was found guilty of illegally possessing an AK-47, several other firearms, and 1,000 rounds of ammunition. The Supreme Court concluded that Johnson was not an armed career criminal because his prior conviction for illegally possessing a sawed-off shotgun was not a “violent felony.” Most importantly, in reaching that conclusion the Supreme Court held that part of the definition of “violent felony” in the ACCA was too vague to understand and thus violated the Constitution’s guarantee of due process. As a result, the Court struck that part of the definition from the statute, and now, after Johnson, many of the crimes that once were considered “violent felonies” under the ACCA no longer qualify.
It is no exaggeration to say that Johnson destroyed the common-sense nature of the ACCA. Courts across the country have ruled that many plainly violent crimes are no longer “violent felonies.” Even murder is being challenged in some jurisdictions. Here in North Carolina, our common law robbery crime—taking property from someone by means of violence or fear—is no longer a “violent felony,” nor (believe it or not) is shooting into an occupied building. It just doesn’t make any sense, and clearly no one intended the ACCA to lead to these absurd results.
Because of Johnson, more than 1,400 violent career criminals have been released early, and 600 of those have already been arrested again just three years later. On average, these 600 offenders have been arrested or reoffended three times. As the Attorney General recently stated, “Releasing repeat offenders has consequences.” Those awful consequences have been felt in our communities, such as in Utah, where a career criminal released because of Johnson tortured and murdered two teenagers, and in California, where a career criminal released after Johnson allegedly murdered his father, carjacked a vehicle, and killed the vehicle’s driver.
Just last month in the Eastern District of North Carolina, Charlie O’Bryant Terry was sentenced to twenty years in federal prison for obstruction of justice and illegal possession of a firearm (https://www.justice.gov/usao-ednc/pr/henderson-man-sentenced-20-years-federal-prison-obstructing-justice-and-illegal). This was not Terry’s first federal sentence. In fact, in 2008, Terry had been sentenced under the ACCA to fifteen years in federal prison after pleading guilty to being a felon in possession of a firearm after three prior violent felonies, including two common law robberies. Because of Johnson, in August 2016, Terry’s fifteen-year sentence under the ACCA was vacated when his previous convictions for common law robbery no longer qualified as violent felonies. As a result, Terry was released early and placed on federal supervised release.
In January 2017, a mere five months after his release from custody, Terry struck again, assaulting and robbing a couple at gunpoint. During the assault, Terry placed a pistol in the mouth of one of the victims, and he cut the other victim’s head by repeatedly hitting the victim with the firearm, requiring staples to close the wound. After Terry was arrested in April 2017 for violating his federal supervision, federal agents executed a search warrant for Terry’s cellular telephone and found that Terry had taken several “selfies,” or photographs of himself, with an AR-15 semiautomatic firearm the day prior to his arrest. While in jail, Terry also threatened one of the victims in an effort to change his testimony. Terry received a twenty-year sentence for his post-release conduct, but if his sentence under the ACCA had not been cut short due to Johnson, Terry’s victims would have been safe from his violent criminal behavior in the first place.
Johnson caused these violent offenders to be released early, and going forward federal prosecutors will no longer be able to ensure sufficient sentences for many repeat violent offenders caught illegally possessing firearms. Innocent people will face the tragic consequences that will follow these offenders back to our streets, and the law enforcement officers who protect us will face the danger of confronting and arresting again the same violent felons they already removed from our streets years ago.
But amidst all this bad news, there is still room for something positive: Congress can fix the ACCA. The Supreme Court in Johnson found part of the ACCA’s definition unconstitutionally vague, but the Court left it open to Congress to craft a new definition that avoids these problems. The Attorney General and the Department of Justice have been working with members of Congress to create awareness about this urgent problem. The ACCA focuses on the most dangerous career felons—the kind we can and must take off the streets to protect our communities.
Congress made our nation so much safer in 1984 by passing the Armed Career Criminal Act. Now we need Congress to keep us safe in 2018 by fixing it.
Ohio County men admit to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Quavonte Pugh and Caveizz Cunningham, both of Wheeling, West Virginia, have admitted to drug charges, United States Attorney Bill Powell announced.
Pugh, also known as “Q,” age 22, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Pugh admitted to selling cocaine base near Jenson Playground in January 2018 in Ohio County
Cunningham, age 24, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Cunningham admitted to conspiring to distribute heroin and cocaine base in January 2018 in Ohio County.
Pugh faces up 40 years incarceration and a fine of up to $2,000,000. Cunningham faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the cases on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.North Dakota U.S. Attorney’s Office Receives International Leadership AwardRead the Press Release
Fargo - U.S. Attorney Christopher C. Myers announced the United States Attorney’s Office for the District of North Dakota was awarded the “Leadership in Transnational Crime Award” from the International Association of Chiefs of Police (IACP).
Founded in 1893, IACP is a professional association for law enforcement worldwide, representing more than 30,000 members in more than 150 countries. IACP provides members with the opportunities to connect, participate, learn, advocate, and succeed. Throughout the past 100-plus years, IACP has launched historically acclaimed programs, conducted ground-breaking research, and provided exemplary programs and services across the globe. Professionally recognized programs such as the FBI Identification Division and the Uniform Crime Records system can trace their origins back to the IACP.
The award will be presented at the IACP Annual Conference in October. U.S. Attorney Myers will be accepting the award on behalf of the U.S. Attorney’s Office and will be addressing the Transnational Crime Subcommittee meeting during the conference.
U.S. Attorney Myers stated, “I am honored that our office has been recognized as a leader in battling transnational criminal organizations by such a prestigious international organization like IACP. The credit goes to the fantastic employees of the U.S. Attorney’s Office and the special team of agents and prosecutors that have spent the last 3 ½ years investigating and prosecuting ‘Operation Denial’”.
This leadership award resulted from the investigation and prosecution of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of “Operation Deadly Merchant.” The investigation started in North Dakota on Jan. 3, 2015, with the overdose death in Grand Forks of 18-year-old Bailey Henke. To date, thirty-two (32) defendants have been charged as a result of the investigation
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland, Oregon, Police Bureau – Drugs and Vice Division; IRS-Criminal Investigations Division; Portland HIDTA Interdiction Task Force; Oregon State Police; and the Grand Forks Police Department. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply.
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North Attleboro Man Charged with "Lie-And-Buy" SchemeRead the Press Release
BOSTON – A North Attleboro man has been charged in connection with a “lie-and-buy” firearms scheme.
Brian Watkins, 51, was indicted on one count of making a false statement during a firearm purchase. Watkins appeared in federal court in Boston yesterday and was released on conditions.
According to the indictment unsealed yesterday, on March 21, 2018, Watkins represented himself to be the actual purchaser of a firearm – a Glock, Model 23, .40 caliber pistol - from a licensed dealer, when in fact he was purchasing the firearm for another person.
The charge of making false statements during a firearm purchase provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Multi-Agency Investigation Disrupts Heroin Trafficking Pipeline Between Ciudad Juarez and Las Cruces, N.M., Facilitated by Social Media Messaging PlatformRead the Press Release
ALBUQUERQUE – Fourteen residents of Las Cruces, N.M., and a Mexican national are facing federal heroin trafficking charges as the result of a two-year multi-agency investigation into Jesus Salvador Otero-Martinez, 32, of Ciudad Juarez, the alleged source of heroin supply for numerous street-level heroin traffickers in Las Cruces. The investigation culminated today when 13 of the defendants were arrested in Las Cruces by teams of federal, state, county and local law enforcement officers during an early morning law enforcement operation. During the course of the investigation, law enforcement authorities arrested 24 Las Cruces residents on various state charges. Otero-Martinez is one of the two federal defendants who was were arrested during today’s law enforcement operation, and is considered a fugitive.
U.S. Attorney John C. Anderson, 3rd Judicial District Attorney Mark D’Antonio, Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division, Special Agent in Charge Kyle W. Williamson of the DEA’s El Paso Division, Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, and Captain Bobby Holden of the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force, announced the results of the investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The charges against the defendants are the result of an investigation that began in 2016, and targeted Otero-Martinez, the alleged source of supply for a heroin trafficking operation that allegedly continuously provided heroin to couriers who smuggled heroin in their body cavities from Ciudad Juarez, into El Paso, Texas, and Las Cruces, where it was delivered to street-level dealers. According to court filings, the defendants used social media messaging platforms to facilitate their heroin trafficking activities. During the course of the investigation, law enforcement authorities seized approximately 1.17 kilograms of heroin, $6,150.00 in cash, nine firearms, and 465 cartridges of various calibers of ammunition.
On Aug. 22, 2018, a federal grand jury returned four federal indictments charging 15 defendants with conspiracy and heroin trafficking offenses. Otero-Martinez is charged in each of the four federal indictments with participating in heroin trafficking conspiracies. The conspiracy counts in the four federal indictments include detailed “overt act” sections that describe the manner in which Otero-Martinez and his co-conspirators allegedly used social media messaging platforms to negotiate numerous heroin transactions and to facilitate their heroin trafficking activities. The conspiracy counts also detail how couriers allegedly obtained heroin from Otero-Martinez in Juarez; smuggled the heroin into the United States through El Paso; and delivered the heroin to purchasers, including undercover agents and individuals cooperating with law enforcement authorities, in Las Cruces.
The 13 federal defendants who were arrested today will make their initial appearances in federal court in Las Cruces tomorrow morning.
The state defendants have been charged in criminal complaints filed by the 3rd Judicial District Attorney’s Office in the 3rd Judicial District Court for the State of New Mexico.
These cases were investigated by the FBI, DEA, HSI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. The New Mexico State Police, Las Cruces Police Department and Dona Ana County Sheriff’s Office assisted with today’s law enforcement operation.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and many other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
SUMMARY OF CHARGES IN FEDERAL INDICTMENTS
INDICTMENT: United States v. Otero-Martinez, Silva, et al., 18-CR-2754-RB
Charges: Count 1 of the Indictment charges Jesus Salvador Otero-Martinez, Alfred Silva and Joseph Gonzalez with participating in a heroin trafficking conspiracy. The statutory penalty for a conviction on this charge is a mandatory minimum of five years and a maximum of 40 years in prison and a $5 million fine. Count 2 charges Silva, who has a prior felony conviction for distributing a controlled substance, with being a felon in possession of ammunition. The statutory penalty for a conviction on this charge is a maximum of ten years in prison and a $250,000 fine.
Defendants: Jesus Salvador Otero-Martinez, 32, Ciudad Juarez, Mexico, has yet to be arrested and is considered a fugitive. Alfred Silva, 34, was arrested on June 1, 2018, on a related charge, and Joseph Gonzalez, 23, was arrested this morning.
INDICTMENT: United States v. Otero-Martinez, DeLeon, et al., 18-CR-2755-RB
Charges: Count 1 of the Indictment charges Otero-Martinez, Erik DeLeon, Matthew Torres, and Donnie Edward Baca with participating in a heroin trafficking conspiracy. The statutory penalty for a conviction on this charge for Otero-Martinez, DeLeon and Torres is a mandatory minimum of five years and a maximum of 40 years in prison and a $5 million fine; for Baca, the penalty is a maximum of 20 years in prison and a $1 million fine. Count 2 charges DeLeon and Baca with distributing heroin. The statutory penalty for a conviction on this charge is a maximum of 20 years in prison and a $1 million fine.
Defendants: Otero-Martinez has yet to be arrested and is considered a fugitive. Erik DeLeon, 27, Matthew Torres, 33, and Donnie Edward Baca, 26, were arrested this morning.
INDICTMENT: United States v. Otero-Martinez, Romero, et al., 18-CR-2756-RB
Charges: The single-count Indictment charges Jesus Salvador Otero-Martinez, Brenda Romero, Nathan Gonzales, Desiree M. Vallejos, Samantha M. Ybarra-Ochoa, Elaine Zubiran and Misty A. Baca with participating in a heroin trafficking conspiracy. The statutory penalty for a conviction on this charge for Otero-Martinez, Romero, Gonzales, Vallejos, Ybarra-Ochoa, and Zubiran is a mandatory minimum of five years and a maximum of 40 years in prison; for Baca, the penalty is a maximum of 20 years in prison and a $1 million fine.
Defendants: Otero-Martinez has yet to be arrested and is considered a fugitive. Brenda Romero, 39, Nathan Gonzales, 32, Desiree M. Vallejos, 29, Misty A. Baca, 36, were arrested this morning; and Samantha M. Ybarra-Ochoa, 26, surrendered to the FBI this morning. Elaine Zubiran, 27, was arrested on state charges on Aug. 17, 2018, and will be transferred into federal custody to face the charge in the indictment.
INDICTMENT: United States v. Otero-Martinez, Crespin, et al., 18-CR-2757-RB
Charges: Count 1 of the Indictment charges Otero-Martinez, Michael Crespin, Gabriel Soltero, and Gerardo Zamarripa with participating in a heroin trafficking conspiracy. The statutory penalty for a conviction on this charge for Otero-Martinez, Crespin and Soltero is a mandatory minimum of five years and a maximum of 40 years in prison and a $5 million fine; for Zamarripa, the penalty is a maximum of 20 years in prison and a $1 million fine. Count 2 charges Soltero and Crespin with possessing heroin with intent to distribute, and Count 3 charges Crespin and Zamarripa with the same offense. The statutory penalty for a conviction on this charge is a maximum of 20 years in prison and a $1 million fine.
Defendants: Otero-Martinez has yet to be arrested and is considered a fugitive. Michael Crespin, 60, and Gabriel Soltero, 35, were arrested this morning. Gerardo Zamarripa, 32, has yet to be arrested and is considered a fugitive.
Fugitives: Photos of the fugitives, Jesus Salvador Otero-Martinez and Gerardo Zamarripa, are attached to this press release. Individuals with information about the whereabouts of Otero-Martinez or Zamarripa are asked to contact the FBI at 505-889-1300 or tips.fbi.gov.
Charges in indictments and criminal complaints are only accusations. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Indictment 18CR2754 Indictment 18CR2755 Indictment 18CR2756 Indictment 18CR2757Morris County Man Sentenced to 97 Months in Prison for Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 97 months in prison for distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Mark Derzko, 74, of Mine Hill, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of child pornography. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in the case and statements in court:
Derzko used a peer-to-peer file-sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. In May, August and September of 2016, law enforcement downloaded more than two dozen videos of child sexual abuse from Derzko’s computer. After executing a search warrant at Derzko’s home in October 2016, agents located more than 2,000 videos and over 8,000 images of child sexual abuse on Derzko’s computers. Derzko admitted that he was making available for others to download videos he had previously saved on his computer.
In addition to the prison term, Judge Walls sentenced Derko to five years of supervised release, ordered him to register as a sex offender and ordered him to pay restitution of $24,000.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing. He also thanked the Morris County Prosecutor’s Office and the Wharton, New Jersey, Police Department for their assistance with the case.
The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Miami Resident Arrested for Making Multiple Bomb ThreatsRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today the arrest of Michael Mora, 35, of Miami, Florida, on a criminal complaint charging him with making hoax bomb threats, in violation of Title 18, United States Code, Section 844(e). Mora had his initial appearance today in front of U.S. Magistrate Judge Edwin G. Torres.
According to allegations contained within the complaint, on August 21, 2018, the Dadeland Mall located in Miami, Florida received a bomb threat via their customer inquiry form. Further investigation revealed that this threat originated from Mora’s residence, and while investigating this threat, law enforcement learned that bomb threats made by Mora had also been made against the White House, the U.S. Capitol, the Lincoln Memorial, Arlington National Cemetery, and Fort Knox.
The case was investigated by the FBI’s Miami Division, the South Florida Joint Terrorism Task Force (JTTF) and Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorney Marc S. Anton.
A complaint is an accusation. A defendant is presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Members of Eastern European Organized Crime Syndicate Convicted of Racketeering and Other Violent CrimesRead the Press Release
Earlier today, following more than three weeks of trial, a federal jury in Brooklyn returned guilty verdicts against Leonid “Lenny” Gershman and Aleksey Tsvetkov on charges of racketeering, including predicate acts of illegal gambling, loansharking, extortion, arson and marijuana distribution. The charges arose out of the defendants’ membership in an Eastern European organized crime syndicate that operated predominantly in the Sheepshead Bay, Brighton Beach and Coney Island neighborhoods in Brooklyn. Gershman was also convicted of conspiring to traffick firearms, and Tsvetkov of wire fraud for an insurance scheme at Aces Auto Bodyshop, which he co-owned. When sentenced by United States District Court Judge Brian M. Cogan, the defendants each face up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the verdicts.
“Today’s verdicts hold Gershman and Tsvetkov responsible for years of using intimidation, violence and their association with Russian organized crime to inflict crimes on our local communities, including carrying out beatings in broad daylight and committing arson in the dead of night, endangering the lives of tenants and New York City firefighters,” stated United States Attorney Donoghue. “This Office and our partners on the DEA Strike Force have dismantled the defendants’ criminal syndicate and will continue to work tirelessly to prevent organized crime elements from flourishing in the Eastern District of New York at the expense of our residents.” Mr. Donoghue expressed his grateful appreciation to the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the Immigration and Customs Enforcement, Homeland Security Investigations, New York, the New York City Police Department, and the New York State Police for their roles in the investigation. Mr. Donoghue also thanked the New York City Fire Department for its investigation of the arson and its heroic efforts in rescuing residents who were trapped in the building.
“This investigation and trial illuminated clues that solved international and domestic crimes committed by members of an Eastern European organized crime syndicate operating in Brooklyn, NY,” stated DEA Special Agent-in-Charge Hunt. “Gershman and Tsvetkov relied on their associates in Russian organized crime known as “Thieves in Law” for some of their criminal acts, which included violence. The Strike Force and the Eastern District of New York should be commended for their professionalism that resulted in today’s convictions.”
“Today’s conviction is a decisive blow against this transnational organized crime syndicate,” stated IRS-CI Special Agent-in-Charge Robnett. “IRS-CI is committed, with our OCDETF partners, to disrupt the flow of ill-gotten gains that is the life-blood for these criminals and unravel their complex networks.”
As proven at trial, between 2011 and May 2017, Gershman and Tsvetkov, together with co-conspirators from states of the former Soviet Union, operated as a racketeering enterprise, committing a host of crimes to enrich themselves. Members of the criminal syndicate were linked to high-level members of Russian organized crime known as “thieves in law.” The “Thieves” authorized syndicate members to use violence to protect their criminal activities.
Beginning in 2016, the defendants partnered in an illegal high-stakes poker game on Coney Island Avenue. The Coney Island poker spot, where the bets wagered on a given night could exceed $800,000, generated substantial illicit profits for the defendants’ criminal syndicate. In the spring of 2016 the defendants and other syndicate members agreed to eliminate a competing poker spot by having two co-conspirators, both of whom testified at trial, set fire to a residential building on Voorhies Avenue where the rival game took place on the ground floor. Two residents of the building, including a young boy, were trapped in their apartment by the resulting fire and had to be rescued by firefighters. Both residents and firefighters suffered smoke inhalation, and one firefighter’s injuries required surgeries.
Additionally, the defendants’ criminal syndicate preyed upon numerous extortion victims in the Eastern District of New York and elsewhere. For example, as the evidence at trial proved, Gershman enlisted the help of “Thieves” in Russia who tracked down the father of an extortion victim in Moscow in order to determine where his son, who owed the syndicate more than $40,000, was living. After locating the victim, Gershman was recorded on a wiretap stating, the “Thieves have found him . . . in Israel,” and “they were at [his] place today.” As another example, Tsvetkov attacked a victim outside Aces Auto Bodyshop. The assault was captured on Aces’ surveillance video, and showed Tsvetkov punching the victim in the face, and continuing to attack him in the middle of the street as the victim lay on the ground. After the videotaped beating, which Tsvetkov saved to his cell phone, he boasted to a co-conspirator about putting the victim “to sleep.” Gershman and Tsvetkov were convicted of pistol-whipping an individual they suspected to have stolen marijuana from their stash house, shattering his teeth with the firearm.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Matthew J. Jacobs, Andrey Spektor and Sarah Evans are in charge of the prosecution.
The Defendants:
LEONID GERSHMAN (also known as “Lenny”)
Age: 35
Brooklyn, New YorkALEKSEY TSVETKOV
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-553 (S-4) (BMC)
Man with 471 Pounds of Marijuana Pleads Guilty to Drug TraffickingRead the Press Release
TOPEKA, KAN. – A man who was arrested with 471 pounds of marijuana in his van pleaded guilty today to drug trafficking, U.S. Attorney Stephen McAllister said.
Mark Berg, 41, Coon Rapids, Minn., pleaded guilty to one count of possession with intent to distribute marijuana. According to court documents, a Kansas Highway Patrol trooper noticed the van and two other vehicles traveling with it on Interstate 70 in Ellsworth County. Although one of the escort vehicles attempted to distract him, the trooper stopped the minivan Berg was driving. Berg told the trooper he had been in Las Vegas and had driven through Denver on his way home to Minnesota. After a drug dog sniffed the vehicle, investigators searched the van and found the marijuana.
Sentencing is set for Nov. 19. He faces a penalty of up to 40 years in federal prison. McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Skip Jacobs for their work on the case.
Man Pleads Guilty to Fentanyl Distribution ConspiracyRead the Press Release
NORFOLK, Va. – A New York City man pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl.
According to court documents, on February 1, law enforcement observed Sheldon Myers, 56, exit a bus in Norfolk and enter a waiting vehicle with Virginia license plates. After conducting a traffic stop, law enforcement smelled marijuana and ordered both the driver and Myers to exit the vehicle. A search of the vehicle revealed approximately 313 grams of fentanyl concealed inside a graham cracker box. After waiving his Miranda rights, Myers admitted he had been recruited to transport the drugs on the bus from New York City to Norfolk.
Myers pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl. He faces a maximum penalty of 20 years in prison when sentenced on December 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Darryl J. Mitchell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-95.
KC Man Faces More Stalking ChargesRead the Press Release
KANSAS CITY, Mo. – Additional charges were filed today against a Kansas City, Mo., man for stalking two more victims.
Robert J. Gross, 66, of Kansas City, was charged in a 10-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an indictment returned on Jan. 10, 2018, and adds two counts of stalking.
Today’s indictment charges Gross with two additional counts of stalking separate victims between Oct. 1 and Dec. 22, 2017. Gross allegedly traveled from Missouri to Kansas with the intent to harass and intimidate his victims, causing them to feel substantial emotional distress.
Today’s indictment also contains the original eight counts, which includes two counts of stalking separate victims (for a total of four victims) between Oct. 1 and Dec. 22, 2017; three counts of being a felon in possession of a firearm, and three counts of receiving a firearm while under indictment.
Gross allegedly was in possession of a 9mm Velocity “Uzi”-type firearm on Dec. 16, 2017. At that time, Gross was both a convicted felon and under indictment in the state of Kansas for aggravated sexual battery.
Gross allegedly was in possession of a Smith and Wesson 9mm handgun on Dec. 17, 2017. At that time, Gross was both a convicted felon and under indictment in the state of Kansas for aggravated sexual battery.
Gross allegedly was in possession of a Springfield 12-gauge shotgun and a Winchester 12-gauge shotgun on Friday, Dec. 22, 2017. At that time, Gross was both a convicted felon and under indictment in the state of Kansas for aggravated sexual battery.
Under federal law, it is illegal for anyone who has been convicted of a felony, or who is under indictment, to be in possession of any firearm or ammunition. Gross has prior felony convictions for possession with intent to distribute cocaine and making terroristic threats to a former girlfriend.
According to an affidavit filed in support of the original criminal complaint, Gross was destroying property and stalking individuals associated with massage parlors in Kansas, which led to him being placed under surveillance by law enforcement.
On Dec. 22, 2017, officers observed Gross allegedly purchase two shotguns from an unidentified individual in the parking lot of the Lowe’s Home Improvement store in Liberty, Mo. According to the affidavit, Gross first drove to the Pizza Ranch parking lot, where he removed the license plate from the front of his car. The rear license plate had been removed as well. Then Gross drove to the nearby Lowe’s store, where he was met by an individual driving a white pickup truck. The unidentified individual allegedly sold Gross two shotguns, which he handed to Gross from his truck. As Gross was putting two shotguns in the trunk of his car, officers arrested him for being a felon in possession of firearms.
According to the affidavit, the individual who sold the shotguns to Gross told investigators that Gross called him the day before, after seeing the firearms advertised on a web site. Gross told him he wanted to buy two shotguns for $350 and they arranged to meet at Lowe’s to conduct the sale.
Garrison cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorneys Jess Michaelsen and Alison D. Dunning. It was investigated by the FBI, the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, the Lawrence, Kan., Police Department, and the Douglas County, Mo., Sheriff’s Department.
Justice Department Announces Deferred Prosecution Agreement with Basler KantonalbankRead the Press Release
Bank Admits to Helping U.S. Taxpayers Conceal Income and Assets
from the United States; Agrees to Pay $60.4 Million
Basler Kantonalbank (BKB), a bank headquartered in Basel, Switzerland, entered into a deferred prosecution agreement (DPA) that was approved today by the U.S. District Court for the Southern District of Florida, announced United States Attorney Benjamin G. Greenberg, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division, and Chief Don Fort for Internal Revenue Service-Criminal Investigation. As part of the agreement, Basler Kantonalbank will pay $60.4 million in total penalties.
“U. S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad, and the financial institutions that assist them in doing so, will be held accountable for their actions, both civilly and criminally,” said U. S. Attorney for the Southern District of Florida Benjamin G. Greenberg. “In this case, BKB will not only pay a criminal fine and restitution, but also a civil forfeiture of $29.7 million in proceeds illegally derived from their conduct. The U.S. Attorney’s Office is committed to helping the IRS investigate and prosecute not only those who evade their taxes, but the financial institutions that assist them in doing so.”
“The era of hiding money overseas to evade U.S. tax obligations is over,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “Financial institutions, professionals, and accountholders are on notice that the Department continues to aggressively pursue these offenses and will hold both individuals and entities accountable.”
“The deferred prosecution agreement signed today with BKB reinforces that while the deadline for the offshore voluntary disclosure program may be fast approaching, holding banks and individuals accountable will not stop,” said Chief Don Fort for IRS-Criminal Investigation. “Those who think they have successfully avoided detection and prosecution for hiding or failing to report offshore holdings to date should know that our commitment in this area is only increasing through our international partnerships and the strategic use of sophisticated data analytic tools.”
In the DPA and related court documents, BKB admits that between 2002 and 2012 it conspired with its employees, external asset managers, and clients to: 1) defraud the United States with respect to taxes; 2) commit tax evasion; and 3) file false federal tax returns. At its peak in 2010, the bank held approximately 1,144 accounts for U.S. customers, with an aggregate value of approximately $813.2 million (many, but not all of which, were undeclared accounts that were part of the conspiracy). According to the terms of the DPA approved today, BKB will cooperate fully, subject to applicable laws and regulations, with the United States, the Internal Revenue Service (IRS), and other U.S. authorities. The DPA also requires BKB to affirmatively disclose certain material information it may later uncover regarding U.S.-related accounts, as well as to disclose certain information consistent with the Department’s Swiss Bank Program with respect to accounts closed between January 1, 2009, and December 31, 2017. Under the DPA, prosecution against the bank for conspiracy will be deferred for an initial period of three years to allow BKB to demonstrate good conduct.
The $60.4 million penalty against BKB has three parts. First, BKB agreed to pay $17,200,000 in restitution to the IRS, which represents the unpaid taxes resulting from BKB’s participation in the conspiracy. Second, BKB agreed to forfeit $29,700,000 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2002 and 2012. Finally, BKB agreed to pay a fine of $13,500,000. This penalty amount reflects BKB’s thorough internal investigation and cooperation with the United States, as well as the bank’s extensive efforts at remediation, and its waiver of any claim of foreign sovereign immunity. Among other remedial efforts, BKB implemented measures to require all U.S.-related accounts be tax compliant, closed a branch office responsible for much of the tax fraud and fired the employees involved in the offense, and conducted extensive outreach to former clients to encourage them to participate in IRS-sponsored voluntary disclosure programs.
According to court documents filed as part of the DPA, BKB is a bank incorporated by the Parliament of the Basel City Canton. From 1997 to 2014, BKB had a private-banking branch that operated from Zurich. The bank assisted certain U.S. clients in concealing their offshore assets and income from U.S. taxing authorities. By 2010, when BKB’s U.S.-related business was at its peak, the bank held approximately 1,144 accounts for U.S. customers, with an aggregate value of approximately $813.2 million. Many, but not all, of these accounts were undeclared and part of the conspiracy to defraud the United States.
BKB employees met directly with clients, but the bank primarily dealt with its undeclared U.S. customers through external asset managers. Among these external asset managers was Martin Lack. (Lack was later charged and pleaded guilty to a tax-fraud conspiracy charge.) In or around 2003, Lack left Swiss bank UBS AG, where he had been a Team Head on the North America desk, and brought over 20 undeclared U.S. clients to BKB. Lack met directly with the management of the Zurich branch, including the executive who headed the branch and served on BKB’s Extended Executive Board, and discussed bringing his clients to the bank. With the knowledge and encouragement of the leadership of BKB’s Zurich branch, Lack traveled to the United States to meet with clients with undeclared accounts. The head of the Zurich branch was also aware that Lack had new clients sign opening forms for BKB while in the United States. In some instances, the forms falsely reported that they were signed in Zurich. During his trips to the United States, Lack also provided clients with cash services. He accepted cash from clients wanting to make deposits to their Swiss accounts, and used those funds to provide cash to other clients wanting to make withdrawals. When he returned to Switzerland, Lack provided BKB with receipts for the transactions so that the clients’ accounts could be reconciled. BKB recorded the cash transactions as having occurred in Switzerland as normal withdrawals and deposits. The Zurich branch’s management was aware of these practices. The bank also provided Lack with office space in Zurich for several months after Lack was released by an external asset management firm for whom he initially worked.
In March 2008, BKB became aware that UBS was considering closing its cross-border business servicing U.S. persons. Soon after, in May 2008, it became public that UBS’s cross-border business was under criminal investigation by U.S. authorities. BKB’s Zurich branch saw this as a business opportunity and sought to attract clients leaving UBS. A bank document prepared as part of the Zurich branch’s 2009 budgeting process and shared with the Executive Board describes this outlook: As “competitor banks partially withdraw from U.S. business,” BKB should “seize [U.S. customer] market opportunities immediately” as this opportunity was “not leveraged enough.” The Bank was aware that many of the clients it sought to attract wanted to continue to conceal their accounts. For example, in one email, BKB employees discussed how a prospective client “received a letter from UBS stating that they either have to tax their assets held with UBS . . . or that, otherwise, they would have to look for a new bank.” The email made clear that the funds to be transferred to the Bank “were never taxed in the U.S.A.”
To attract new clients, the Bank signed up several new external asset managers and offered them finder’s fees. For example, in 2008 the bank reached an agreement with a Swiss financial advisor (who was later indicted in the United States for conspiring with U.S. taxpayers to defraud the United States) who brought ten clients, with over $73 million in assets to the bank from UBS and Credit Suisse AG. Another adviser brought several U.S. clients to the bank, including a family from New York that transferred over $100 million in undeclared assets from a bank in Liechtenstein.
During this process, BKB and the external asset managers working with the bank promoted BKB as a safe haven because it lacked a U.S. presence and supposedly would not be subject to a U.S. criminal investigation. Between July 2008 and March 2009, BKB opened 398 new accounts for U.S. customers, with a resulting inflow of approximately $441.6 million in new assets.
Throughout the conspiracy, BKB took a number of steps and provided a number of services to its undeclared clients. These services included promoting Swiss bank secrecy as a means of concealing assets and income from taxation in the United States, providing hold-mail services and “assumed name” and “numbered” accounts, and allowing accounts to be established through nominee entities set up in tax-haven jurisdictions such as the British Virgin Islands, Liechtenstein, and Panama.
In response to prosecutions brought by the Justice Department, BKB took a number of steps to gradually wind down its undeclared business. Only in late 2011, however, following the indictment of Lack in the United States, did the bank make a decision to exit the business of servicing U.S.-domiciled clients. Afterward, however, the bank began a thorough process of remediation and cooperation (within the bounds of Swiss law).
U.S. Attorney Greenberg, Principal Deputy Assistant Attorney General Zuckerman and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, as well as Senior Litigation Counsel Mark F. Daly and Trial Attorney Jason H. Poole of the Tax Division, who prosecuted this case. Zuckerman also thanked Assistant U.S. Attorneys Thomas P. Lanigan, Michelle B. Alvarez, and Eloisa D. Fernandez of the Southern District of Florida for their substantial assistance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.
Justice Department Announces Deferred Prosecution Agreement with Basler KantonalbankRead the Press Release
Basler Kantonalbank (BKB), a bank headquartered in Basel, Switzerland, entered into a deferred prosecution agreement (DPA) that was approved today by the U.S. District Court for the Southern District of Florida, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division, United States Attorney Benjamin G. Greenberg, and Chief Don Fort for Internal Revenue Service-Criminal Investigation. As part of the agreement, Basler Kantonalbank will pay $60.4 million in total penalties.
“The era of hiding money overseas to evade U.S. tax obligations is over,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “Financial institutions, professionals, and accountholders are on notice that the Department continues to aggressively pursue these offenses and will hold both individuals and entities accountable.”
“U. S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad, and the financial institutions that assist them in doing so, will be held accountable for their actions, both civilly and criminally,” said U. S. Attorney for the Southern District of Florida Benjamin G. Greenberg. “In this case, BKB will not only pay a criminal fine and restitution, but also a civil forfeiture of $29.7 million in proceeds illegally derived from their conduct. The U.S. Attorney’s Office is committed to helping the IRS investigate and prosecute not only those who evade their taxes, but the financial institutions that assist them in doing so.”
“The deferred prosecution agreement signed today with BKB reinforces that while the deadline for the offshore voluntary disclosure program may be fast approaching, holding banks and individuals accountable will not stop,” said Chief Don Fort for IRS-Criminal Investigation. “Those who think they have successfully avoided detection and prosecution for hiding or failing to report offshore holdings to date should know that our commitment in this area is only increasing through our international partnerships and the strategic use of sophisticated data analytic tools.”
In the DPA and related court documents, BKB admits that between 2002 and 2012 it conspired with its employees, external asset managers, and clients to: 1) defraud the United States with respect to taxes; 2) commit tax evasion; and 3) file false federal tax returns. At its peak in 2010, the bank held approximately 1,144 accounts for U.S. customers, with an aggregate value of approximately $813.2 million (many, but not all of which, were undeclared accounts that were part of the conspiracy). According to the terms of the DPA approved today, BKB will cooperate fully, subject to applicable laws and regulations, with the United States, the Internal Revenue Service (IRS), and other U.S. authorities. The DPA also requires BKB to affirmatively disclose certain material information it may later uncover regarding U.S.-related accounts, as well as to disclose certain information consistent with the Department’s Swiss Bank Program with respect to accounts closed between January 1, 2009, and December 31, 2017. Under the DPA, prosecution against the bank for conspiracy will be deferred for an initial period of three years to allow BKB to demonstrate good conduct.
The $60.4 million penalty against BKB has three parts. First, BKB agreed to pay $17,200,000 in restitution to the IRS, which represents the unpaid taxes resulting from BKB’s participation in the conspiracy. Second, BKB agreed to forfeit $29,700,000 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2002 and 2012. Finally, BKB agreed to pay a fine of $13,500,000. This penalty amount reflects BKB’s thorough internal investigation and cooperation with the United States, as well as the bank’s extensive efforts at remediation, and its waiver of any claim of foreign sovereign immunity. Among other remedial efforts, BKB implemented measures to require all U.S.-related accounts be tax compliant, closed a branch office responsible for much of the tax fraud and fired the employees involved in the offense, and conducted extensive outreach to former clients to encourage them to participate in IRS-sponsored voluntary disclosure programs.
According to court documents filed as part of the DPA, BKB is a bank incorporated by the Parliament of the Basel City Canton. From 1997 to 2014, BKB had a private-banking branch that operated from Zurich. The bank assisted certain U.S. clients in concealing their offshore assets and income from U.S. taxing authorities. By 2010, when BKB’s U.S.-related business was at its peak, the bank held approximately 1,144 accounts for U.S. customers, with an aggregate value of approximately $813.2 million. Many, but not all, of these accounts were undeclared and part of the conspiracy to defraud the United States.
BKB employees met directly with clients, but the bank primarily dealt with its undeclared U.S. customers through external asset managers. Among these external asset managers was Martin Lack. (Lack was later charged and pleaded guilty to a tax-fraud conspiracy charge.) In or around 2003, Lack left Swiss bank UBS AG, where he had been a Team Head on the North America desk, and brought over 20 undeclared U.S. clients to BKB. Lack met directly with the management of the Zurich branch, including the executive who headed the branch and served on BKB’s Extended Executive Board, and discussed bringing his clients to the bank. With the knowledge and encouragement of the leadership of BKB’s Zurich branch, Lack traveled to the United States to meet with clients with undeclared accounts. The head of the Zurich branch was also aware that Lack had new clients sign opening forms for BKB while in the United States. In some instances, the forms falsely reported that they were signed in Zurich. During his trips to the United States, Lack also provided clients with cash services. He accepted cash from clients wanting to make deposits to their Swiss accounts, and used those funds to provide cash to other clients wanting to make withdrawals. When he returned to Switzerland, Lack provided BKB with receipts for the transactions so that the clients’ accounts could be reconciled. BKB recorded the cash transactions as having occurred in Switzerland as normal withdrawals and deposits. The Zurich branch’s management was aware of these practices. The bank also provided Lack with office space in Zurich for several months after Lack was released by an external asset management firm for whom he initially worked.
In March 2008, BKB became aware that UBS was considering closing its cross-border business servicing U.S. persons. Soon after, in May 2008, it became public that UBS’s cross-border business was under criminal investigation by U.S. authorities. BKB’s Zurich branch saw this as a business opportunity and sought to attract clients leaving UBS. A bank document prepared as part of the Zurich branch’s 2009 budgeting process and shared with the Executive Board describes this outlook: As “competitor banks partially withdraw from U.S. business,” BKB should “seize [U.S. customer] market opportunities immediately” as this opportunity was “not leveraged enough.” The Bank was aware that many of the clients it sought to attract wanted to continue to conceal their accounts. For example, in one email, BKB employees discussed how a prospective client “received a letter from UBS stating that they either have to tax their assets held with UBS . . . or that, otherwise, they would have to look for a new bank.” The email made clear that the funds to be transferred to the Bank “were never taxed in the U.S.A.”
To attract new clients, the Bank signed up several new external asset managers and offered them finder’s fees. For example, in 2008 the bank reached an agreement with a Swiss financial advisor (who was later indicted in the United States for conspiring with U.S. taxpayers to defraud the United States) who brought ten clients, with over $73 million in assets to the bank from UBS and Credit Suisse AG. Another adviser brought several U.S. clients to the bank, including a family from New York that transferred over $100 million in undeclared assets from a bank in Liechtenstein.
During this process, BKB and the external asset managers working with the bank promoted BKB as a safe haven because it lacked a U.S. presence and supposedly would not be subject to a U.S. criminal investigation. Between July 2008 and March 2009, BKB opened 398 new accounts for U.S. customers, with a resulting inflow of approximately $441.6 million in new assets.
Throughout the conspiracy, BKB took a number of steps and provided a number of services to its undeclared clients. These services included promoting Swiss bank secrecy as a means of concealing assets and income from taxation in the United States, providing hold-mail services and “assumed name” and “numbered” accounts, and allowing accounts to be established through nominee entities set up in tax-haven jurisdictions such as the British Virgin Islands, Liechtenstein, and Panama.
In response to prosecutions brought by the Justice Department, BKB took a number of steps to gradually wind down its undeclared business. Only in late 2011, however, following the indictment of Lack in the United States, did the bank make a decision to exit the business of servicing U.S.-domiciled clients. Afterward, however, the bank began a thorough process of remediation and cooperation (within the bounds of Swiss law).
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Greenberg and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, as well as Senior Litigation Counsel Mark F. Daly and Trial Attorney Jason H. Poole of the Tax Division, who prosecuted this case. Zuckerman also thanked Assistant U.S. Attorneys Thomas P. Lanigan, Michelle B. Alvarez, and Eloisa D. Fernandez of the Southern District of Florida for their substantial assistance.
Importer pays civil penalty to settle alleged Controlled Substances Act violationsRead the Press Release
ATLANTA – ACETO Corporation, an international company with a North American headquarters based in New York, has agreed to pay a civil settlement of $120,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act (CSA). ACETO imports controlled substances to a warehouse in Atlanta and has agreed to additional oversight from the Drug Enforcement Agency.
“Importers have a responsibility to ensure that all controlled substances can be tracked through the distribution chain,” said U.S. Attorney Byung J. “BJay” Pak. “Our office is committed to preventing the diversion of controlled substances by enforcing the recordkeeping requirements of the Controlled Substances Act.”
Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the DEA said, “The mission of DEA’s Office of Diversion Control is to prevent, detect and investigate the diversion of controlled pharmaceutical and listed chemicals from legitimate sources. In this case, DEA Diversion investigators did an outstanding job of uncovering this importer’s negligence to conduct proper inventories, which led to a civil fine. DEA will continue to work hand in hand with its law enforcement partners and the U.S. Attorney’s Office to make sure that Importers are abiding by its regulations.”
The government alleges that ACETO failed to maintain complete and accurate records of all controlled substances, failed to maintain controlled substances records at its registered location, and failed to complete the required biennial inventory of controlled substances. The claims settled are allegations only, and there has been no determination of liability.
The CSA was enacted by Congress to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation.
This case was investigated by the Drug Enforcement Administration.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
ACETO Settlement Agreement
ACETO Settlement Agreement.pdf
Illegal Alien Remanded to Immigration Authorities for Deportation Following Plea and Sentence in Federal CourtRead the Press Release
PITTSBURGH, PA - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty to one count of illegal reentry after deportation, and has been sentenced in federal court to time served, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mario Rodriguez-Benhumea, age 30, of Mexico, who has been in United States custody since May 14, 2018. Judge Bissoon further ordered that, following service of the sentence of imprisonment, Rodriguez-Benhumea be remanded to the custody of federal immigration authorities for commencement of deportation proceedings.
According to information presented to the court, on May 14, 2018, Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) and the Department of Labor Office of the Inspector General conducted a knock and talk operation at a Pittsburgh residence allegedly being used to harbor and employ undocumented aliens. Rodriguez-Benhumea was arrested following the operation and charged with being an alien who had been previously deported from the United States on December 21, 2010, May 11, 2013, and May 17, 2013. Law enforcement also determined that Rodriguez-Benhumea did not receive permission to reenter the United States.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
United States Attorney Brady commended the ICE/HSI for the investigation leading to the successful prosecution of Rodriguez-Benhumea.
Houston Physician Admits to Failing to Timely File Tax Returns for more than 20 YearsRead the Press Release
HOUSTON – A physician who has practiced in Houston for more than 30 years has entered a guilty plea to tax evasion, announced U.S. Attorney Ryan K. Patrick.
Edward J. Crouse acknowledged in the plea agreement that he has not timely filed an individual income tax return since 1997. According to the plea agreement, Crouse earned more than $4.4 million from 2009 - 2012.
Crouse consistently committed numerous affirmative acts of tax evasion over the years to conceal his true income from the IRS, including concealing the complete business records of his medical practice for calendar years 2006 through 2012 from his bookkeeping and tax return preparation firm. Crouse also admitted he signed an IRS collection form on or about May 1, 2010, in which he understated the amount of his income from his medical practice available for payment of taxes and household expenditures.
Crouse has agreed that the total intended tax loss in his case was approximately $678,103, which accounts for unpaid individual income taxes as well as the amounts of federal taxes and FICA that Crouse withheld from the wages of his medical practice employees but did not pay over to the IRS.
He has agreed to pay restitution to the IRS of $678,103.
Sentencing has been set for Dec. 13, 2018, before Chief U.S. District Judge Lee Rosenthal. At that time, Crouse faces up to five imprisonment and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation is conducting the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Harrison County man admits to drug distribution and firearm chargesRead the Press Release
WHEELING, WEST VIRGINIA – James Bailey, of Clarksburg, West Virginia, has admitted to drug distribution and firearm charges, United States Attorney Bill Powell announced.
Bailey, age 34, pled guilty to one count of “Distribution of Methamphetamine,” one count of “Use of a Firearm During and in Relation to a Drug Offense.” Bailey admitted to selling methamphetamine and being in possession of a firearm during the drug offense in Harrison County in January 2018.
Bailey faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count and faces up to five years incarceration and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Garfield Couple Charged with Distributing Heroin, Fentanyl and Fentanyl AnalogueRead the Press Release
PITTSBURGH, PA – A superseding indictment against Quinshawn Haynie and Dara Haynie has been returned by a federal grand jury in Pittsburgh for conspiring to distribute and distributing heroin, butyryl fentanyl, and fentanyl in, on, or within 1,000 feet of a playground and a public housing facility, United States Attorney Scott W. Brady announced today.
The superseding indictment charges Quinshawn Haynie, age 29, and Dara Haynie, age 27, both of Pittsburgh, PA, with committing the crimes from February 1, 2017, through March 31, 2017.
The law provides for a maximum total sentence of 60 years in prison and a fine of up to $3,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania Board of Probation and Parole conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Pennsylvania Treasurer Robert M. McCord Sentenced to 30 Months’ Imprisonment for Attempted ExtortionRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that former Pennsylvania State Treasurer Robert M. McCord, age 59, currently residing in Long Branch, New Jersey, was sentenced to 30 months’ imprisonment by U.S. District Court Judge John E. Jones, III, for two counts of attempted extortion.
Judge Jones also ordered McCord to pay a $5,000 fine and to report to the Bureau of Prisons on October 29, 2018.
According to United States Attorney David J. Freed, McCord served as the Pennsylvania State Treasurer from 2008 until he resigned in February 2015. During late April and early May 2014, McCord attempted to extort campaign contributions from a law firm and a property management company while he was running for Governor by threatening economic harm to the potential donors if they failed to make sufficient campaign contributions. In particular, McCord threatened to use his position as State Treasurer to interfere with the business that the law firm and property management firm were conducting with the state if they did not make the contributions.
“As Treasurer of the Commonwealth of Pennsylvania, and a candidate for Governor, McCord attempted to obtain political contributions by threatening retaliation against those who refused,” said U.S. Attorney Freed. “McCord’s official actions to benefit his friends and punish his foes compromised the integrity of the Treasury and directly damaged the citizens of Pennsylvania. Although public corruption investigations are lengthy, difficult and complex, they have been and will remain a priority of our office. Our oaths demand it and the public deserves it. I commend the outstanding work of the FBI, IRS-Criminal Investigations and the Pennsylvania State Police and thank them for their continued commitment to rooting out corruption in Pennsylvania.”
“Rob McCord crossed the line from fundraising to felonies, when he attempted to extort potential donors to fund his gubernatorial campaign,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Trying to further his own ambitions, he abused his position of public trust. The FBI will continue to investigate public corruption and hold those responsible accountable, to send a message to public officials that crime truly doesn’t pay.”
“McCord broke the law and the trust placed in him by the public when he attempted to extort campaign contributions,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “McCord’s sentence demonstrates our collective efforts to enforce the law and ensure public trust.”
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael A. Consiglio, William S. Houser, and Gordon A. D. Zubrod prosecuted the case.
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Former New England La Cosa Nostra Member Sentenced for Obstructing Murder InvestigationRead the Press Release
BOSTON – A former New England La Cosa Nostra (NELCN) caporegime was sentenced today in federal court in Boston for obstructing a federal investigation into the murder of a Boston nightclub owner in the 1990s.
Robert P. DeLuca, 72, was sentenced by U.S. District Court Judge Denise J. Casper to 66 months in prison and three years of supervised release. In November 2016, DeLuca pleaded guilty to one count of obstruction of justice and two counts of making false statements.
DeLuca was charged with lying to federal prosecutors and agents regarding the investigation into the 1993 disappearance of Stephen DiSarro, who operated The Channel, a South Boston nightclub. DiSarro remained missing until March 2016, when authorities discovered his remains behind a mill in Providence, R.I.
In 2011, DeLuca had agreed to cooperate with federal authorities after his arrest on racketeering charges. In connection with his cooperation, DeLuca had lied about his knowledge of DiSarro’s disappearance and other LCN-connected murders. As a result, DiSarro’s remains were not recovered until federal authorities received information from another source in March 2016 regarding DiSarro’s burial site.
In June 2018, Francis P. Salemme, 84, and Paul M. Weadick, 63, were convicted of murdering DiSarro, who, at the time of his death, was a witness to violations of federal law by Salemme and Weadick. DiSarro had been approached by a federal agent and asked to cooperate with federal authorities. At the time, there were several ongoing federal investigations into Salemme and into Salemme’s connection to The Channel. Salemme had expressed his concerns to others that DiSarro might cooperate against him. U.S. District Court Judge Allison D. Burroughs scheduled Salemme’s and Weadick’s sentencings for Sept. 13, 2018.
United States Attorney Andrew E. Lelling; Interim United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Rhode Island State Police Superintendent Ann C. Assumpico made the announcement today. Assistance was also provided by the Norfolk County District Attorney’s Office and the Providence, R.I. Police Department. Assistant U.S. Attorneys Fred M. Wyshak Jr., Chief of Lelling’s Public Corruption Unit, and William J. Ferland, Chief of Dambruch’s Criminal Division, prosecuted the case.
Former New England La Cosa Nostra Member Sentenced for Obstructing Murder InvestigationRead the Press Release
BOSTON – A former New England La Cosa Nostra (NELCN) caporegime was sentenced today in federal court in Boston for obstructing a federal investigation into the murder of a Boston nightclub owner in the 1990s.
Robert P. DeLuca, 72, was sentenced by U.S. District Court Judge Denise J. Casper to 66 months in prison and three years of supervised release. In November 2016, DeLuca pleaded guilty to one count of obstruction of justice and two counts of making false statements.
DeLuca was charged with lying to federal prosecutors and agents regarding the investigation into the 1993 disappearance of Stephen DiSarro, who operated The Channel, a South Boston nightclub. DiSarro remained missing until March 2016, when authorities discovered his remains behind a mill in Providence, R.I.
In 2011, DeLuca had agreed to cooperate with federal authorities after his arrest on racketeering charges. In connection with his cooperation, DeLuca had lied about his knowledge of DiSarro’s disappearance and other LCN-connected murders. As a result, DiSarro’s remains were not recovered until federal authorities received information from another source in March 2016 regarding DiSarro’s burial site.
In June 2018, Francis P. Salemme, 84, and Paul M. Weadick, 63, were convicted of murdering DiSarro, who, at the time of his death, was a witness to violations of federal law by Salemme and Weadick. DiSarro had been approached by a federal agent and asked to cooperate with federal authorities. At the time, there were several ongoing federal investigations into Salemme and into Salemme’s connection to The Channel. Salemme had expressed his concerns to others that DiSarro might cooperate against him. U.S. District Court Judge Allison D. Burroughs scheduled Salemme’s and Weadick’s sentencings for Sept. 13, 2018.
United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Rhode Island State Police Superintendent Ann C. Assumpico made the announcement today. Assistance was also provided by the Norfolk County District Attorney’s Office and the Providence, R.I. Police Department. Assistant U.S. Attorneys Fred M. Wyshak Jr., Chief of Lelling’s Public Corruption Unit, and William J. Ferland, Chief of Dambruch’s Criminal Division, prosecuted the case.
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Former Federal Correctional Officer Pleads Guilty to Making False Statements to InvestigatorsRead the Press Release
Ocala, Florida – Heather Lee Kussoff (31, Cape Coral) today pleaded guilty to making a false statement to a federal law enforcement agency. She faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Kussoff worked as a correctional officer at the Coleman Federal Correctional Center. In 2014, she developed an improper personal and romantic relationship with an inmate at that facility. In direct violation of her job responsibilities and training, Kussoff romantically corresponded with the inmate, shared extensive details of her personal life, and communicated directly with members of the inmate’s family. When confronted by federal authorities on March 18, 2015, Kussoff lied under oath about the existence of the romantic relationship and then abruptly resigned from the Bureau of Prisons.
This case was investigated by the Department of Justice – Office of the Inspector General, the Federal Bureau of Investigation, and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Chief Financial Officer Pleads Guilty to Embezzling Money from Two Area BusinessesRead the Press Release
DAYTON – Sandy Green, of Fairborn, pleaded guilty in U.S. District Court to wire fraud as part of a scheme to defraud her previous employers.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Yvonne A. DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the plea entered into before U.S. District Judge Walter H. Rice.
According to court documents, Green was a bookkeeper at a Dayton business from May to November 2017. Green made fraudulent credit card returns without a corresponding legitimate purchase, causing company money to be paid into personal bank accounts belonging to Green and her family members.
Additionally, from April 2017 until March 2018, Green was the Chief Financial Officer for a second victim business in the Dayton area. Green again defrauded the company, this time transferring money from the business’s credit union into bank accounts controlled by Green and her family members. She attempted to disguise receiving the money by falsely listing other individuals and entities as the payee.
In total, Green embezzled more than $150,000 from the two companies.
Green pleaded guilty to two counts of wire fraud, which are each punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorneys Andrew J. Hunt and SaMee Harden, who are representing the United States in this case.
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Former Center Point Bank Vice President Pleads Guilty to Aiding and Abetting the Obstruction of an FDIC ExaminationRead the Press Release
A former vice president at Center Point Bank & Trust who aided and abetted the obstruction of an FDIC examination pled guilty on August 27, 2018.
Martin Smith, age 38, from Center Point, Iowa, was convicted of Aiding and Abetting the Obstruction of the Examination of a Financial Institution. At the plea hearing, Smith admitted that he backdated a refinancing loan to obstruct an FDIC investigation.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Smith remains free on bond previously set pending sentencing. Smith faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob A. Schunk and was investigated by the FDIC Office of Inspector General and the United States Secret Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:18-cr-00076-LTS.
Follow us on Twitter @USAO_NDIA.
Federal, State and Local Leaders and Experts Announce Results of Forest Watch, a Public Lands Marijuana Grow Eradication and Reclamation ProjectRead the Press Release
Today, federal, state, and local leaders joined with experts to announce the results of Operation Forest Watch, a coordinated effort to address the devastating damage done to our national forests by illegal, public-land marijuana grows. This months-long effort, led by U.S. Forest Service and joined by various federal, state, county and local law enforcement agencies, as well as the California National Guard, focused on the eradication of marijuana grows on public lands and sought to remediate the environmental damage caused by such activity.
Making the announcement today were Acting Associate U.S. Attorney General Jesse Panuccio, Acting Assistant Attorney General Jeffrey H. Wood of the U.S. Justice Department’s Environment and Natural Resources Division, U.S. Attorney McGregor W. Scott for the Eastern District of California, California Attorney General Xavier Becerra, U.S.D.A. Forest Service Chief Forester Vicki Christiansen, U.S.D.A. Director of Law Enforcement and Investigations Tracy Perry, U.S.D.A. Pacific Southwest Regional Forester Randy Moore, Integral Ecology Research Center Director Mourad Gabriel, Bureau of Land Management California State Director Jerry Perez, Major General Matthew P. Beevers Deputy Adjutant General of the California Military Department, California National Guard Counterdrug Task Force Commander and Coordinator Colonel Robert Paoletti, and Bill Ruzzamenti of the Central Valley California High Intensity Drug Trafficking Areas.
“Marijuana cultivation on our nation’s public lands is unlawful and is causing significant harm to communities across the West,” said Acting Associate Attorney General Jesse Panuccio. “The clear evidence shows that this dangerous activity is polluting our streams and rivers with toxic pesticides, harming protected fish and wildlife, and endangering the health and safety of the American people who otherwise look to our national forests and national parks for recreation and conservation. The Justice Department, including our Environment and Natural Resources Division, is providing full support to fighting this illegality, in close cooperation with other federal, state, and local partners. By joining together to oppose the illegal growth of marijuana on public lands, we are working to enforce the rule of law in our conservation areas and to protect the environment and natural resources upon which we all depend.”
“Large-scale, clandestine illegal marijuana grows pose a serious threat to our national forests and public lands,” said U.S. Attorney Scott. “Those who plant and tend the marijuana grows leave a path of destruction: clearcutting vast amounts of timber, diverting thousands of gallons of water, and using deadly and illegal pesticides that seep into the ground and harm wildlife. These types of grows are illegal under any law, and the destruction of our shared national treasures in its cultivation will not be tolerated. We at the U.S. Attorney’s Office are committed to working with all of our law enforcement and community partners to fight this ongoing threat to our public lands.”
“This joint law enforcement operation underscores that we will not tolerate illegal cannabis operations harming our communities and damaging our public lands,” said California Attorney General Becerra.
“The USDA Forest Service aggressively strives to address marijuana cultivation on National Forests, an illegal occupancy and use of National Forest System lands,” said Regional Forester Randy Moore. “Marijuana growers endanger our visitors, employees and nearby communities. The Forest Service is committed in this joint effort to eradicate, reclaim and rehabilitate our public lands to preserve our natural resources for current and future generations to enjoy.”
“The environmental deprivation caused by criminal organizations to our public lands should be intolerable for everyone,” said Bill Ruzzamenti of the Central Valley California High Intensity Drug Trafficking Areas (HIDTA). “Bringing law enforcement from across the spectrum of local, state and federal agencies together in Operation Forest Watch is a testament to our combined resolve to protect our pristine public lands for the future.”
“The California National Guard has been a key partner with many local, state and federal agencies over the last quarter-century, combatting illegal marijuana grows on public lands with federal funds,” said Major General Beevers. “This combined effort and support helps protect the environment while adding safety to our communities."
“This year’s unprecedented use of illegal pesticides on federal lands is deeply alarming to the scientific community on both the environmental and human health fronts,” said Director Gabriel.
Sheriffs from the California counties involved in Operation Forest Watch also joined the announcements: Fresno County Sheriff Margaret Mims, Kern County Sheriff Donny Youngblood, Madera County Sheriff Jay Varney, Shasta County Sheriff Tom Bosenko, Siskiyou County Sheriff Jon E. Lopey, Tehama County Sheriff Dave Hencratt, Trinity County Sheriff Bruce Haney, and Tulare County Sheriff Mike Boudreaux.
Operation Forest Watch officially began on October 1, 2017, and will end September 30, 2018. So far, over 80 investigations have been conducted on suspected and active marijuana cultivation on federal public lands. U.S. Forest Service law enforcement officers and federal, state and local counterparts have conducted interdiction, eradication and reclamation efforts to restore public lands back to normal. Over 118,000 pounds of infrastructure and trash and over 20,000 pounds of fertilizer, pesticides and chemicals were removed in eradication and reclamation efforts.
Grow sites were found with both aerial and ground reconnaissance. Numerous warrants were served, resulting in the arrest of over 77 people and the seizure of 82 firearms, approximately 638,370 plants, and 25,334 pounds of processed marijuana and various other drugs. Night interdiction teams in the past week have also been successful in conducting traffic stops and seizing over 10,000 plants, $225,000 in cash, multiple firearms and other illegal drugs.
Much work lies ahead in order to undo the damage caused by these grows. Only 160 grow sites have been reclaimed this year, and from those sites alone over 103,603 pounds of trash were removed along with toxic and illegal pesticides and other chemicals used by the growers. There are 766 sites still left to be reclaimed from various grow sites, some of which date back to 2010.
Eighty-nine percent of sites have been confirmed or strongly suspected to have carbofuran or methamidophos present, up from last year the running total of 75 percent.
Incorporated in the Forest Service results are the results to-date for the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), which is the largest marijuana eradication program in the nation. This year CAMP has eliminated 488,502 plants in over 164 illegal growth sites across the state. Agents have made 35 arrests and seized 87 weapons.
Federal, State and Local Leaders and Experts Announce Results of Forest Watch, A Public Lands Marijuana Grow Eradication and Reclamation ProjectRead the Press Release
SACRAMENTO, Calif. — Today, federal, state, and local leaders joined with experts to announce the results of Operation Forest Watch, a coordinated effort to address the devastating damage done to our national forests by illegal, public-land marijuana grows. This months-long effort, led by U.S. Forest Service and joined by various federal, state, county and local law enforcement agencies, as well as the California National Guard, focused on the eradication of marijuana grows on public lands and sought to remediate the environmental damage caused by such activity.
Making the announcement today were U.S. Attorney McGregor W. Scott, California Attorney General Xavier Becerra, Acting Associate U.S. Attorney General Jesse Panuccio, Acting Assistant Attorney General Jeffrey H. Wood of the U.S. Justice Department’s Environment and Natural Resources Division, U.S.D.A. Forest Service Chief Forester Vicki Christiansen, U.S.D.A. Director of Law Enforcement and Investigations Tracy Perry, U.S.D.A. Pacific Southwest Regional Forester Randy Moore, Integral Ecology Research Center Director Mourad Gabriel, Bureau of Land Management California State Director Jerry Perez, Major General Matthew P. Beevers Deputy Adjutant General of the California Military Department, California National Guard Counterdrug Task Force Commander and Coordinator Colonel Robert Paoletti, and Bill Ruzzamenti of the Central Valley California High Intensity Drug Trafficking Areas.
“Marijuana cultivation on our nation’s public lands is unlawful and is causing significant harm to communities across the West,” said Acting Associate Attorney General Jesse Panuccio. “The clear evidence shows that this dangerous activity is polluting our streams and rivers with toxic pesticides, harming protected fish and wildlife, and endangering the health and safety of the American people who otherwise look to our national forests and national parks for recreation and conservation. The Justice Department, including our Environment and Natural Resources Division, is providing full support to fighting this illegality, in close cooperation with other federal, state, and local partners. By joining together to oppose the illegal growth of marijuana on public lands, we are working to enforce the rule of law in our conservation areas and to protect the environment and natural resources upon which we all depend.”
U.S. Attorney Scott stated, “Large-scale, clandestine illegal marijuana grows pose a serious threat to our national forests and public lands. Those who plant and tend the marijuana grows leave a path of destruction: clearcutting vast amounts of timber, diverting thousands of gallons of water, and using deadly and illegal pesticides that seep into the ground and harm wildlife. These types of grows are illegal under any law, and the destruction of our shared national treasures in its cultivation will not be tolerated. We at the U.S. Attorney’s Office are committed to working with all of our law enforcement and community partners to fight this ongoing threat to our public lands.”
“This joint law enforcement operation underscores that we will not tolerate illegal cannabis operations harming our communities and damaging our public lands,” said California Attorney General Becerra.
“The USDA Forest Service aggressively strives to address marijuana cultivation on National Forests, an illegal occupancy and use of National Forest System lands,” states Regional Forester Randy Moore. “Marijuana growers endanger our visitors, employees and nearby communities. The Forest Service is committed in this joint effort to eradicate, reclaim and rehabilitate our public lands to preserve our natural resources for current and future generations to enjoy.”
Maj. Gen. Beevers stated: “The California National Guard has been a key partner with many local, state and federal agencies over the last quarter-century, combatting illegal marijuana grows on public lands with federal funds. This combined effort and support helps protect the environment while adding safety to our communities.”
Sheriffs from the California counties involved in Operation Forest Watch also joined the announcements: Fresno County Sheriff Margaret Mims, Kern County Sheriff Donny Youngblood, Madera County Sheriff Jay Varney, Shasta County Sheriff Tom Bosenko, Siskiyou County Sheriff Jon E. Lopey, Tehama County Sheriff Dave Hencratt, Trinity County Sheriff Bruce Haney, and Tulare County Sheriff Mike Boudreaux.
Operation Forest Watch officially began on October 1, 2017, and will end September 30, 2018. So far, over 80 investigations have been conducted on suspected and active marijuana cultivation on federal public lands. US Forest Service law enforcement officers and federal, state and local counterparts have conducted interdiction, eradication and reclamation efforts to restore public lands back to normal. Over 118,000 pounds of infrastructure and trash and over 20,000 pounds of fertilizer, pesticides and chemicals were removed in eradication and reclamation efforts.
Grow sites were found with both aerial and ground reconnaissance. Numerous warrants were served, resulting in the arrest of over 77 people and the seizure of 82 firearms, approximately 638,370 plants, and 25,334 pounds of processed marijuana and various other drugs. Night interdiction teams in the past week have also been successful in conducting traffic stops and seizing over 10,000 plants, $225,000 in cash, multiple firearms and other illegal drugs.
Much work lies ahead in order to undo the damage caused by these grows. Only 160 grow sites have been reclaimed this year, and from those sites alone over 103,603 pounds of trash were removed along with toxic and illegal pesticides and other chemicals used by the growers. There are 766 sites still left to be reclaimed from various grow sites, some of which date back to 2010.
Eighty-nine percent of sites have been confirmed or strongly suspected to have carbofuran or methamidophos present, up from last year the running total of 75 percent.
Dr. Gabriel stated, “This year’s unprecedented use of illegal pesticides on federal lands is deeply alarming to the scientific community on both the environmental and human health fronts.
Bill Ruzzamenti of the Central Valley California High Intensity Drug Trafficking Areas (HIDTA) stated, “The environmental deprivation caused by criminal organizations to our public lands should be intolerable for everyone. Bringing law enforcement from across the spectrum of local, state and federal agencies together in Operation Forest Watch is a testament to our combined resolve to protect our pristine public lands for the future.”
Incorporated in the Forest Service results are the results to-date for the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), which is the largest marijuana eradication program in the nation. This year CAMP has eliminated 488,502 plants in over 164 illegal growth sites across the state. Agents have made 35 arrests and seized 87 weapons.
Federal Inmate Pleads Guilty to StalkingRead the Press Release
Ocala, Florida – Tommie Raymond Thomas (50, Sumter County, Florida) today pleaded guilty to one count of stalking. He faces a maximum penalty of five years in federal prison. A sentencing hearing has not yet been set.
According to the plea agreement, while Thomas was an inmate at the Coleman Federal Correctional Complex, he anonymously sent a series of five threatening and disturbing letters to a female member of the prison staff. Those letters contained detailed threats involving kidnapping and sexually abusing the staffer and others. The letters included photographic collages with cutout pictures of children pasted onto images of adult pornography.
This case was investigated by the Federal Bureau of Investigation – Ocala Resident Agency. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
FBI Arrests 18 on Federal Drug Trafficking and Firearms ChargesRead the Press Release
Cleveland, Miss. - The FBI has arrested 18 individuals on federal drug trafficking and weapons charges in the Mississippi Delta. The announcement was made at a press conference today in Cleveland by Special Agent in Charge of the FBI in Mississippi Christopher Freeze, United States Attorney for the Northern District of Mississippi Chad Lamar and Cleveland Police Chief Charles Bingham.
The arrests come following an extensive investigation into violent street gang activity following an increase in violent crime in the Mississippi Delta.
14 individuals were taken into custody today by law enforcement on federal drug trafficking and firearms charges:
- Eddie Mitchell, age 30, of Cleveland.
- Darren Scott, age 23, of Cleveland.
- Cordero Walker, age 31, of Cleveland.
- Derrick Williams, age 29, of Cleveland.
- Wendell Fitzgerald, age 29, of Cleveland.
- Frederick Belvin, age 29, of Cleveland.
- Stevie Hester, age 47, of Cleveland.
- Kibrya Cooper, age 33, of Cleveland.
- Demetrius Johnson, age 39, of Cleveland.
- Jayonto Daniels, age 44, of Cleveland.
- Jarrian Johnson, age 31, of Cleveland.
- Frederick Matthews, age 21, of Cleveland.
- Carl Quinn, age 23, of Cleveland.
- Ken Stallings, age 28, taken into custody in Kileen, Texas.
Two individuals were taken into custody by law enforcement on federal drug trafficking charges:
- Jafort Franklin, age 30, of Cleveland.
- Gideon Butler, age 43, of Cleveland.
Two individuals were taken into custody by law enforcement on firearms charges:
- Joe Crawford, age 65, of Boyle.
- Glen May, 28, of Cleveland.
The subjects are scheduled to make their initial appearance before a United States Magistrate Judge in the Northern District on Mississippi today.
The case was investigated by the FBI Jackson Division’s Oxford Resident Agency, under the umbrella of the FBI’s Safe Streets Task Force. Agencies assisting with the investigation and arrests were the Cleveland Police Department, United States Attorney’s Office for the Northern District of Mississippi, Mississippi Highway Patrol, Mississippi Bureau of Narcotics, United States Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives.
All charges are merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eleven Individuals Indicted for Social Security FraudRead the Press Release
SAN JUAN, P.R. – On Aug. 23 and 24, 2018, a Federal Grand Jury in the District of Puerto Rico returned seven separate indictments charging 11 individuals with fraud against the Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced U.S. Attorney Rosa Emilia Rodríguez Vélez for the District of Puerto Rico. These cases were investigated by the Social Security Office of Inspector General (SS-OIG) with the collaboration of the Department of Homeland Security Office of Inspector General, U.S. Health and Human Services-Office of Inspector General, and the Puerto Rico Police Department.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits.
Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.
Six indictments charged 10 individuals with theft of government property, concealment, or failure to disclose work activity to SSA, and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled. The seventh indictment charges Teresa González-Hernández with 40 counts of wire fraud against SSA.
The defendants who are alleged to have accepted by fraud the Social Security Disability Insurance Benefit payments, knowing that they were not entitled to the same, are: Evelyn Morales-Calderón and Victor Soriano-Morales (son of Evelyn Morales) received $190,110.00; Mario Zayas-Rodríguez and Elvin Santiago-Rodríguez (employer of Mario Zayas) received $118,098.20; José Alcazar-Román received $97,004.80; Alvin Alvelo-Crespo received $92,101.50; Abraham Burgos-Torres and Karla Burgos-Colón (daughter of Abraham Burgos) received $90,335.50; Nelson Concepción-Santana received $41,261.00; Wanda Rivera-Martínez received $41,204.40; and Teresa González-Hernández received $57,947.00.
Defendant Alvin Alvelo-Crespo was also charged with healthcare fraud. The defendant fraudulently caused Medicare to pay approximately $8,545.33 based on fraudulent claims. This defendant is also facing one count of Fraud in Connection with Major Disaster (Hurricane María) or Emergency Benefits. Alvelo-Crespo falsely represented to FEMA that his combined family pre-disaster gross income was $9,264.00 and that the residence located at Almirante Norte in Vega Baja, Puerto Rico was his primary residence when Hurricane María struck Puerto Rico. In fact, however, the defendant’s combined family pre-disaster gross income was higher than $9,264.00 and the residence located at Almirante Norte was not his primary residence at the moment Hurricane María struck Puerto Rico. The defendant received $500.00 for Critical Needs Assistance; $14,282.79 for Home Repair Assistance; $10,431.15 for Personal Property Assistance; and $1,486.00 for Rental Assistance, for a total of $26,699.94. All this assistance was authorized, transported, transmitted, transferred, disbursed or paid by, electronic fund transfers into his bank account.
Defendant Teresa González-Hernández was a social worker at Entity A, an entity located in San Juan, Puerto Rico that assists homeless individuals. Her victim with initials J.L.M, was a client or beneficiary of Entity A. On or about Sept. 4, 2008, González-Hernández abused her position of trust as a social worker for J.L.M. and opened a joint account with J.L.M. at Scotiabank of Puerto Rico. On Oct. 28, 2010, J.L.M. requested SSA that his disability benefits, which were later automatically converted to retirement benefits, be directly deposited into the joint account. After J.L.M. died on Nov. 19, 2010, González-Hernández failed to notify SSA about his death, and the DIB and Retirement benefits belonging to J.L.M. continued to be deposited into the joint account. González-Hernández embezzled the benefits that SSA issued to J.L.M., benefits which she knew she was not entitled to. As a result of the scheme, between Jan. 26, 2011, and continuing through Nov. 23, 2016, SSA made 71 electronic payment transactions to the joint account totaling $57,947.00.
“We will aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help the most vulnerable of our communities,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “The Department of Justice is committed to investigate and prosecute those who engage in fraudulent schemes. This round of arrests should discourage more people from getting involved in these types of schemes, because we will continue investigating these crimes.”
Social Security Administration, Office of the Inspector General, Special Agent in Charge John F. Grasso stated: “The Office of the Inspector General is the law enforcement arm of the Social Security Administration and protects agency programs from fraud, waste and abuse, including the Disability Insurance program. This program is intended to support individuals who are truly in need of this important and earned benefit. The program relies on the truthfulness of disability applicants, and those who provide information to SSA on their behalf. When people lie about their medical condition, work activity, or other relevant facts necessary for SSA to make a proper decision in relation to the payment of benefits, as alleged in these criminal complaints, they are in effect looting from the Social Security Trust Fund. I strongly encourage the public to continue to report suspected instances of Social Security fraud to our dedicated hotline at 1-855-278-5982 or oig.ssa.gov/report, because we cannot do it alone.”
Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez is in charge of the prosecution of these cases. If convicted, the defendants charged with SSA fraud could face a maximum penalty of 10 years in prison; the defendant charged with Fraud in Connection with Major Disaster (Hurricane María) or Emergency Benefits faces a maximum penalty of up to 30 years in prison and the defendant charged with wire fraud faces a maximum penalty of up to 20 years in prison. All defendants are subject to a fine of up to $250,000.00. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
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 to be especially cautious of anyone who contacts you seeking personal identifying information or financial information. Members of the public who suspect fraud involving disaster relief efforts, or who believe that 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 a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here.
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District Man Pleads Guilty to Murder Charge Related to 2015 Stabbing in Southeast WashingtonRead the Press Release
WASHINGTON – Tyreke Chambers, 20, of Washington D.C., has pled guilty to a charge of second-degree murder while armed stemming from his involvement in an attempted robbery that ended with the victim being stabbed in the heart, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Chambers pled guilty on Aug. 27, 2018, in the Superior Court of the District of Columbia. The plea, which is subject to the Court’s approval, calls for an agreed-upon sentence of 10 years in prison. He is to be sentenced on Oct. 26, 2018, by the Honorable Craig Iscoe.
According to a proffer of facts submitted at the plea hearing, the stabbing took place at approximately 10:15 p.m. on Feb. 4, 2015 in the 2400 block of Alabama Avenue SE. The victim, Tracey Jones, 46, was intoxicated and limping down the street while on his cell phone. Chambers and a group of associates were on the same street, walking towards Mr. Jones. Chambers and his associates decided to rob Mr. Jones, who was carrying a backpack. As the group approached Mr. Jones, an altercation began. During the altercation, Chambers and at least one other individual struck Mr. Jones. Mr. Jones then fell to the ground and crawled away from the altercation, while one of the individuals with Chambers took Mr. Jones’s backpack as they fled.
Shortly thereafter, officers from the Metropolitan Police Department’s Seventh District responded to the scene and located Mr. Jones, who was suffering from an apparent stab wound to his upper body. An autopsy revealed that Mr. Jones had been stabbed once in the chest with a sharp instrument that penetrated his heart.
Over the course of the investigation, detectives recovered a knife and red jumpsuit from Chambers’s residence. The investigation revealed that the red jumpsuit, as well as GPS records, placed Chambers at the scene of the crime. In interviews, Chambers admitted to being with the group that had decided to rob Mr. Jones. At his plea hearing, he admitted to being the individual who actually stabbed him. Chambers was arrested in December of 2015 and has remained incarcerated ever since.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Washington Metropolitan Area Transit Authority, which provided Metrobus footage of Chambers and his associates in the area of the crime. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael Liebman and Damien Diggs, Investigative Analyst Zachary McMenamin, Paralegal Specialist Lornce Applewhite, and Victim/Witness Advocate Jennifer Clark.
Finally, they commended the work of Assistant U.S. Attorney Emily A. Miller, who investigated and indicted the case, and Assistant U.S. Attorneys Lindsey Merikas and Shehzad Akhtar, who prosecuted the case.
Detroit man admits to oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Brown, of Detroit, Michigan, has admitted to selling oxycodone, U.S. Attorney Bill Powell announced.
Brown, also known as “Pooh,” age 24, pled guilty to one count of “Aiding and Abetting Distribution of Oxycodone.” Brown admitted to selling oxycodone in October 2015 in Monongalia County.
Brown faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office. The US Marshals Service, the Internal Revenue Service, the Monongalia County Processing and Transport Personnel, the Greater Harrison County Drug Task Force MHIT Group, the Mountain State Drug Task Force, the Three Rivers Drug Task Force-Fairmont, and the Fairmont Police Department assisted.
U.S. Magistrate Judge Michael John Aloi presided.
Detroit Man Sentenced for Aggravated Identity Theft and Defrauding the Michigan Unemployment Insurance AgencyRead the Press Release
A Detroit man was sentenced to 60 months in federal prison after pleading guilty to aggravated identity theft and defrauding the Michigan Unemployment Insurance Agency, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Wanda M. Stokes, Director, Michigan Talent Investment Agency, Unemployment Insurance.
Devin Marquzes Griffin, 25, was sentenced today to 60 months by United States District Judge Mark A. Goldsmith for aggravated identity theft and wire fraud.
According to court records, from June 2016 through November 2017, Griffin conducted a scheme to defraud the Department of Labor through the Michigan Unemployment Insurance Agency. Griffin obtained the personally identifiable information (PII) of several hundred Michiganders, and used that PII to file, access, and modify approximately 447 unemployment insurance claims in the names of other people. Additionally, Griffin used this PII to open credit card accounts in the names of others, and deposited the money derived from his fraudulent unemployment insurance scheme into these credit card accounts.
Griffin received hundreds of fraudulent unemployment insurance payments through his illegal scheme, stealing more than $504,000. Griffin used this money to make cash withdrawals, purchase cars, airline tickets, hotel rooms, shoes, and like items for himself.
“Devin Griffin robbed taxpayers and business owners for his personal use, stealing from the system meant to protect Michiganders. Even worse, Griffin stole the identities of hundreds of people, causing them untold financial, mental, and emotional harm. The people of Michigan deserve better, and we will continue to aggressively prosecute these cases on their behalf,” U.S. Attorney Schneider stated.
Director Stokes said, “ID theft is not a victimless crime. Individuals whose identity is stolen suffer as well as our taxpayers. We are committed to investigating, charging and convicting these criminals. The UI staff along with the U.S. Department of Labor and U.S. Attorney’s office are to be commended for catching this criminal and putting him in prison.”
This case was investigated by Steven Bognar and Andrew Donohue of the U.S. Department of Labor Office of Inspector General, and Kurt Eggly of the State of Michigan Unemployment Insurance Agency. Assistant United States Attorney Hank Moon prosecuted the case.
Dermatology Healthcare Agrees to Pay $4 Million in False Claims Act SettlementRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces a $4 million settlement with Dermatology Healthcare, LLC; Robert A. Norman, D.O, P.A.; Robert A. Norman, D.O.; and Carol Norman (collectively, Dermatology Healthcare).
As part of the settlement, the parties resolve allegations that Dermatology Healthcare violated the False Claims Act by submitting false claims to obtain millions of dollars in Medicare and Medicaid reimbursements for the treatment of non-melanoma skin cancer with superficial radiation therapy.
According to the settlement agreement, from January 1, 2011, to December 31, 2016, the United States contended that Dermatology Healthcare: (1) failed to adequately supervise the administration of superficial radiation therapy, (2) up-coded claims for procedures related to superficial radiation therapy, and (3) over-utilized radiation simulations.
“Health care providers will be held accountable for the claims they submit to federal health care programs,” said U.S. Attorney Chapa Lopez. “As this settlement makes clear, our civil division continues to make healthcare fraud enforcement a core part of the mission of our office.”
“The rules are simple: bill government health programs only for services actually needed and provided. No more, no less,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to protect federal health care programs and beneficiaries by holding providers accountable.”
“The FBI is committed to working closely with our federal, state, and local partners to protect federally funded healthcare programs from abuse by providers,” said Eric W. Sporre Special Agent in Charge of the FBI Tampa Division. “Protection of these important programs is a shared responsibility which can best be accomplished with the support of an engaged community willing to bring these abuses to the attention of authorities.”
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Florida Medicaid Fraud Control Unit. Assistant United States Attorney Christopher Emden led the investigation.
This settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Theodore, A. Schiff, M.D, a dermatologist from Palm Beach County, Florida. Dr. Schiff filed under the qui tam provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Case is captioned United States of America and the State of Florida ex rel. Theodore A. Schiff, M.D. v. Robert A. Norman, D.O., et al., Case No. 8:15-cv-1506-T-23AEP (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).