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Monday 16 July 2018
Three California Residents Sentenced in $20 Million Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Three owners and/or managers of Los Angeles, California-area foreclosure rescue companies, Dorothy Matsuba, Jamie Matsuba, and Thomas Matsuba, were sentenced to 240, 135, and 168 months in prison today for their roles in a foreclosure rescue scheme, respectively.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna for the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Acting Deputy Inspector General for Investigations Paul Conlon of the Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office, and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Dorothy Matsuba, 67, her daughter Jamie Matsuba, 33, and her husband, Thomas Matsuba, 67, all of Chatsworth, California, were sentenced by U.S. District Judge R. Gary Klausner of the Central District of California. Judge Klausner also ordered the defendants to serve three years of supervised release. Restitution and forfeiture will be decided at a hearing on Aug. 13. All three defendants were remanded into custody. Dorothy Matsuba pleaded guilty on Dec. 4, 2017, to one count conspiracy to commit wire fraud, false statements to a federally insured bank or mortgage lending business, and identity theft, five counts of wire fraud, six counts of false statements to federally insured banks, and six counts of aggravated identity theft. On Dec. 13, 2017, after a one-week trial, Jamie Matsuba and Thomas Matsuba were both convicted of one count of conspiracy to commit wire fraud, making false statements to federally insured banks, and committing identity theft and one count of making false statements to federally insured banks.
According to evidence presented at trial, from January 2005 to August 2014, Dorothy Matsuba, Jamie Matsuba, Thomas Matsuba and others engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. The evidence further established that the conspirators obtained mortgages in the names of stolen identities. The defendants also used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties, the evidence showed.
Two other defendants have been charged in this matter. Defendant Jane Matsuba-Garcia, 42, of Camarillo, California, previously pleaded guilty and is awaiting sentencing. Defendant Young Park of Los Angeles, California, is a fugitive. In addition, in related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 48, of Canoga Park, California, previously pleaded guilty and are awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, FHFA-OIG, IRS-CI, the U.S. Attorney’s Office for the Central District of California, the U.S. Trustee Program, Woodland Hills Field Office, Peter C. Anderson U.S. Trustee and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation. Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Three California Residents Sentenced in $20 Million Mortgage Fraud SchemeRead the Press Release
Three owners and/or managers of Los Angeles, California-area foreclosure rescue companies, Dorothy Matsuba, Jamie Matsuba, and Thomas Matsuba, were sentenced to 240, 135, and 168 months in prison today for their roles in a foreclosure rescue scheme, respectively.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna for the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Acting Deputy Inspector General for Investigations Paul Conlon of the Federal Housing Finance Agency-Office of Inspector General (FHFA-OIG), Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office, and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Dorothy Matsuba, 67, her daughter Jamie Matsuba, 33, and her husband, Thomas Matsuba, 67, all of Chatsworth, California, were sentenced by U.S. District Judge R. Gary Klausner of the Central District of California. Judge Klausner also ordered the defendants to serve three years of supervised release. Restitution and forfeiture will be decided at a hearing on Aug. 13. All three defendants were remanded into custody. Dorothy Matsuba pleaded guilty on Dec. 4, 2017, to one count conspiracy to commit wire fraud, false statements to a federally insured bank or mortgage lending business, and identity theft, five counts of wire fraud, six counts of false statements to federally insured banks, and six counts of aggravated identity theft. On Dec. 13, 2017, after a one-week trial, Jamie Matsuba and Thomas Matsuba were both convicted of one count of conspiracy to commit wire fraud, making false statements to federally insured banks, and committing identity theft and one count of making false statements to federally insured banks.
According to evidence presented at trial, from January 2005 to August 2014, Dorothy Matsuba, Jamie Matsuba, Thomas Matsuba and others engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. The evidence further established that the conspirators obtained mortgages in the names of stolen identities. The defendants also used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties, the evidence showed.
Two other defendants have been charged in this matter. Defendant Jane Matsuba-Garcia, 42, of Camarillo, California, previously pleaded guilty and is awaiting sentencing. Defendant Young Park of Los Angeles, California, is a fugitive. In addition, in related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 48, of Canoga Park, California, previously pleaded guilty and are awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, FHFA-OIG, IRS-CI, the U.S. Attorney’s Office for the Central District of California, the U.S. Trustee Program, Woodland Hills Field Office, Peter C. Anderson U.S. Trustee and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Texas Return Preparers Charged with Filing Fraudulent Tax ReturnsRead the Press Release
A federal grand jury in Dallas, Texas returned an indictment on Feb. 6, which was unsealed Friday, July 13, charging two return preparers with filing fraudulent tax returns, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin N. Cox for the Northern District of Texas.
The indictment charges Francisco Ventura and Mario Melendez with conspiracy to defraud the United States and filing fraudulent tax returns for clients. It further charges Ventura with wire fraud, aggravated identity theft and filing a fraudulent personal tax return.
According to the indictment, Ventura owned and operated multiple tax preparation businesses in Irving, Texas including AJJ Tax and More, Uptown Multi Services and I-Care Financial Services. Melendez allegedly worked for Ventura as a manager and return preparer at Uptown. From November 2013 through May 2014, Ventura and Melendez allegedly conspired to defraud the United States by preparing fraudulent income tax returns that included fake business and education expenses seeking refunds to which their clients were not entitled. Ventura and Melendez allegedly taught tax preparation classes to employees of Uptown and AJJ on how to falsify client returns. The indictment further alleges that Ventura used nominees to obtain Preparer Tax Identification Numbers (PTIN) and Electronic Filing Identification Numbers (EFIN) from the IRS in order to conceal his ownership of the businesses, and that Ventura stole the name and PTIN of another person to electronically file fraudulent returns with the IRS. Ventura is also alleged to have filed a personal 2014 individual tax return that underreported his income.
If convicted, Ventura and Melendez face a statutory maximum sentence of five years in prison for the conspiracy charge and three years in prison for each count of filing fraudulent tax returns. Ventura further faces a statutory maximum sentence of twenty years in prison for each wire fraud count, three years in prison for filing a fraudulent individual income tax return and a mandatory two years in prison for each aggravated identity theft count. Ventura and Melendez also face a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cox commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Melanie Smith of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Texas Resident Receives 12 Months on Fraud Charge, Ordered to Pay $190,000 in RestitutionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Senior United States District Judge Callie V.S. Granade sentenced Donna Marie Allison, 54, a resident of Springtown, Texas, to 12 months imprisonment for committing wire fraud. The judge ordered that Allison undergo three years of supervised release after finishing her term of imprisonment and pay a $100 mandatory special assessment. The judge also imposed credit restrictions upon Allison and ordered that she pay $190,000 in restitution to her financial victim.
Allison admitted certain facts as part of her guilty plea. From around February 1, 2012 to around April 1, 2014, Allison devised and participated in a scheme to defraud individuals seeking financing. She represented herself as the head of CRF Investors LLC. Allison falsely represented that her business would offer loans to companies seeking financing for various projects. In this case, Allison falsely represented that she and CRF Investors LLC would provide financing for an assisted living facility in Meridian, Mississippi. Allison’s financial victim was another entity that was trying to build the facility. Allison had the victim sign loan commitment agreements that required the victim to pay an “advance fee” of $190,000 to her company to cover interest for the loan. In truth, as Allison knew, the agreements were a ploy to obtain money from the victim, who received nothing in return. To induce the victim to pay the advance fee, Allison falsely represented that she and her company had obtained similar financing in the past for others and that funding would be available shortly after payment of the advance fee.
On March 31, 2016, a federal grand jury for the Southern District of Alabama indicted Allison on eight counts of wire fraud. On February 26, 2018, Allison pleaded guilty before Judge Granade to one count of wire fraud.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Texas Man Sentenced to Ten Years for Federal Heroin and Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Jesus Gerardo Prieto, Jr., 39, of El Paso, Texas, was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for his conviction on heroin and methamphetamine trafficking charges.
U.S. Border Patrol agents arrested Prieto in Oct. 2017, on heroin and methamphetamine trafficking offenses in Dona Ana County, N.M. Prieto was arrested at the U.S. Border Patrol checkpoint in Las Cruces after the agents seized approximately 432 grams of methamphetamine and 117 grams of heroin that were concealed inside Prieto’s vehicle.
Prieto subsequently was charged in a five-count indictment on Jan. 17, 2018, with distributing methamphetamine on Aug. 29, 2017, in Dona Ana County; distributing methamphetamine and heroin on Oct. 6, 2017, in Luna County, N.M.; and possession of methamphetamine and heroin with intent to distribute on Oct. 19, 2017, in Dona Ana County. On Feb. 26, 2018, Prieto pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Border Patrol and the Border Enforcement Security Taskforce of Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office pursuant to 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 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.
Tampa Man Sentenced to 48 Months in Prison for Tax Return FraudRead the Press Release
TALLAHASSEE, FLORIDA – Henry Flerijean, 28, of Tampa, Florida, was sentenced Thursday to 48 months in federal prison after pleading guilty on March 23, 2018, to theft of government money, possession of 15 or more counterfeit or unauthorized access devices, and aggravated identify theft. Flerijean was also ordered to pay $558,075.00 in restitution. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2012, Flerijean was pulled over for speeding. The deputy smelled marijuana coming from the vehicle. The deputy searched the car and found a book bag with 7.5 grams of marijuana in it and approximately $21,427 in U.S. currency. Inside the carpet lining of the trunk, the deputy recovered two separate stacks of debit cards in other people’s names. He also discovered 31 counterfeit debit cards, two computers, and a notebook with names, social security numbers, and dates of birth, of individuals. The names from the notebook matched some of the names found on the debit cards in the vehicle. The computers contained evidence of fraudulently submitted tax returns.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation, the Madison County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Leon County Sheriff’s Office, and the United States Immigration and Customs Enforcement Homeland Security Investigations. Assistant United States Attorney Michael J. Harwin prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Springfield Man Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LAPRESE GOLLMAN, 43, of Springfield, Massachusetts, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of conspiracy to possess with intent to distribute, and distribution of, 500 grams or more of cocaine. The charge stems from a Drug Enforcement Administration investigation into a drug trafficking organization with ties to Connecticut and Massachusetts.
On May 30, 2018, GOLLMAN was arrested in New Haven as he was attempting to purchase four kilograms of cocaine. Investigators seized $100,000 from GOLLMAN.
The charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. However, because GOLLMAN has a prior conviction for a felony drug offense, he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
GOLLMAN has been detained since his arrest. Judge Bolden scheduled sentencing for October 15, 2018.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Regional Office and the New Haven and Hamden Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Schuylkill County Man Indicted for Threatening the President and OthersRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shawn Christy, age 27, of McAdoo, Pennsylvania, was indicted by a federal grand jury on July 10, 2018, for threatening to harm President Donald J. Trump, and law enforcement officers.
According to United States Attorney David J. Freed, the indictment alleges that Christy posted the threats on Facebook between June 3 and 12, 2018. It is alleged that Christy posted that he was going to shoot President Trump in the head, and that he was going to use “lethal force” on any law enforcement officer that attempts to detain him as a result of a bench warrant that was issued for him. The indictment alleges that Christy also threatened to injure another person by posting “Your a dead man….Lets play.”
The threat to President Trump is being investigated by the United States Secret Service, and the other threats are being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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San Joaquin County Man Sentenced to 20 Years in Prison for International Drug-Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge William B. Shubb sentenced Francisco Felix, 45, of Mountain House, to 20 years in prison for his role in leading a large, multi-defendant drug-trafficking conspiracy that moved significant quantities of methamphetamine from Mexico into California and throughout the United States, and that controlled at least three large marijuana grows in the Central Valley of California, U.S. Attorney McGregor W. Scott announced.
U.S. Attorney Scott stated: “This defendant coordinated the smuggling of vast amounts of methamphetamine from Mexico into the United States and facilitated their distribution throughout the Central Valley. Through hard work and coordination with our many law enforcement partners, we were able to bring Felix to justice. We are committed to continuing the fight against large-scale drug trafficking enterprises and will prosecute them to the fullest extent of the law.”
On August 7, 2017, a federal jury convicted Felix of one count of conspiring to distribute methamphetamine, one count of conspiring to manufacture and distribute marijuana, and three counts of using a cellphone to facilitate a drug trafficking crime.
On February 13, 2014, Felix and 13 other defendants were charged with a number of drug-trafficking crimes. Felix is the only defendant to go to trial; 10 co-defendants pleaded guilty and three are fugitives.
This case arose from a year-long investigation that revealed a drug-trafficking organization with connections to the state of Sinaloa in Mexico. The organization was based in the Central Valley of California, and actively imported large amounts of methamphetamine into the United States. Evidence at trial established that Felix and his network were capable of importing 50 pounds of methamphetamine (with a wholesale value of approximately $200,000) into the United States every eight days.
In addition, the evidence at trial established that the organization was cultivating substantial quantities of marijuana at many properties in both Stanislaus and San Joaquin counties.
Over nine months, investigators acquired over 80 pounds of methamphetamine, approximately 20 pounds of marijuana, and six firearms, including three assault rifles and a “Desert Eagle” .50-caliber handgun, from members of the organization. Finally, on the day of Felix’s arrest, investigators seized over 2,100 marijuana plants at properties under Felix’s control.
This case is the product of an investigation by the California Department of Justice’s Mountain and Valley Marijuana Investigation Team (MAVMIT), under the auspices of the Central Valley High Intensity Drug Trafficking Area (HIDTA) Program; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Placer County District Attorney’s Office; the Placer County Special Investigations Unit (SIU); the Sheriff’s Departments from Placer, El Dorado and Sacramento Counties; the California Department of Fish and Wildlife; the California Department of Corrections and Rehabilitation; the California National Guard, Counterdrug Task Force; and the Yolo Narcotic Enforcement Team (YONET). In addition, at the conclusion of the investigation, hundreds of law enforcement officers from several states took part in a 28-location takedown.
Assistant U.S. Attorneys Justin Lee and Michael Beckwith prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Russian National Charged in Conspiracy to Act as an Agent of the Russian Federation Within the United StatesRead the Press Release
A criminal complaint was unsealed today in the District of Columbia charging a Russian national with conspiracy to act as an agent of the Russian Federation within the United States without prior notification to the Attorney General.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Maria Butina, 29, a Russian citizen residing in Washington D.C., was arrested on July 15, 2018, in Washington, D.C., and made her initial appearance this afternoon before Magistrate Judge Deborah A. Robinson in the U.S. District Court for the District of Columbia. She was ordered held pending a hearing set for July 18, 2018.
According to the affidavit in support of the complaint, from as early as 2015 and continuing through at least February 2017, Butina worked at the direction of a high-level official in the Russian government who was previously a member of the legislature of the Russian Federation and later became a top official at the Russian Central Bank. This Russian official was sanctioned by the U.S. Department of the Treasury, Office of Foreign Assets Control in April 2018.
The court filings detail the Russian official’s and Butina’s efforts for Butina to act as an agent of Russia inside the United States by developing relationships with U.S. persons and infiltrating organizations having influence in American politics, for the purpose of advancing the interests of the Russian Federation. The filings also describe certain actions taken by Butina to further this effort during multiple visits from Russia and, later, when she entered and resided in the United States on a student visa. The filings allege that she undertook her activities without officially disclosing the fact that she was acting as an agent of Russian government, as required by law.
The charges in criminal complaints are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for conspiracy is five years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
Russian National Charged in Conspiracy to Act as an Agent of the Russian Federation Within the United StatesRead the Press Release
WASHINGTON – A criminal complaint was unsealed today in the District of Columbia charging a Russian national with conspiracy to act as an agent of the Russian Federation within the United States without prior notification to the Attorney General.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Mariia Butina, 29, a Russian citizen residing in Washington D.C., was arrested on July 15, 2018, in Washington, D.C., and made her initial appearance this afternoon before Magistrate Judge Deborah A. Robinson in the U.S. District Court for the District of Columbia. She was ordered held pending a hearing set for July 18, 2018.
According to the affidavit in support of the complaint, from as early as 2015 and continuing through at least February 2017, Butina worked at the direction of a high-level official in the Russian government who was previously a member of the legislature of the Russian Federation and later became a top official at the Russian Central Bank. This Russian official was sanctioned by the U.S. Department of the Treasury, Office of Foreign Assets Control in April 2018.
The court filings detail the Russian official’s and Butina’s efforts for Butina to act as an agent of Russia inside the United States by developing relationships with U.S. persons and infiltrating organizations having influence in American politics, for the purpose of advancing the interests of the Russian Federation. The filings also describe certain actions taken by Butina to further this effort during multiple visits from Russia and, later, when she entered and resided in the United States on a student visa. The filings allege that she undertook her activities without officially disclosing the fact that she was acting as an agent of Russian government, as required by law.
The charges in criminal complaints are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for conspiracy is five years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice.
Randallstown Man Sentenced to 13 Years in Federal Prison for Conspiracy to Distribute Heroin and FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Anthony Renard Wynn, age 48, of Randallstown, Maryland, today to 13 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute heroin and fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of the ICE Homeland Security Investigations (HIS) Baltimore; Colonel Woodrow Jones of the Maryland Transportation Authority Police; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to Wynn’s plea agreement, in connection with an investigation into drug trafficking and the laundering of drug proceeds through Maryland-based casinos, HSI investigators discovered that Wynn had placed into, and cashed out, in excess of one million dollars at those casinos from 2016 to 2017, although he only reported earnings of $30,000 in 2016.
HSI investigators were able to identify the places where Wynn received, transported, and stored drugs and other contraband. Specifically, Wynn received packages containing drugs from an animal hospital in Pikesville, Maryland and transported the drugs to the Southeast region of Washington, D.C. Wynn stored the drugs and/or other contraband in a storage unit in Windsor Mill, his home in Randallstown, and in a Pikesville barbershop. Wynn also shipped several packages to a co-conspirator in California, including one which contained $244,040 in drug proceeds.
On June 9, 2017, an HSI investigator observed Wynn talking on a cell phone while driving and informed a Baltimore County patrol officer who conducted a traffic stop of Wynn’s vehicle. During that traffic stop, a Maryland Transportation Authority Police officer conducted a canine scan of Wynn’s vehicle and recovered a one-kilogram heroin brick and $11,620 in cash that was separated into rubber-banded bundles. After he was arrested, law enforcement searched Wynn and recovered a digital scale and two $500 casino chips.
HSI investigators obtained search warrants for Wynn’s residence, the storage unit, and the barbershop. Investigators recovered approximately 1 kilogram of fentanyl, 3 kilograms of heroin, and an electronic money counter from the storage unit. Gift cards totaling $5,575, $16,602 in cash bundled in small denominations, and an “owe sheet” were among the items that the HSI investigators recovered from Wynn’s residence. Investigators recovered $951 in cash and a digital scale from the barbershop.
United States Attorney Robert K. Hur commended HSI, the Maryland Transportation Authority Police, and the Baltimore County Police Department. Mr. Hur thanked Assistant U.S. Attorneys Samika N. Boyd and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Palm Beach, Florida Home Health Care Company and Its Owner Agree to Resolve False Claims Act Allegations for $1.5 MillionRead the Press Release
Healthquest, Inc. and its owners, Frank Jaramillo and Ruth Jaramillo, have agreed to pay $1.5 million to the United States to settle allegations that Healthquest paid kickbacks to marketers in order to induce patient referrals, the United States Attorney’s Office announced today. Healthquest is a home health care company located in Palm Beach Gardens, Florida. The defendants also entered into a five-year Integrity Agreement with the Department of Health and Human Services, Office of Inspector General that includes, among other things, an Arrangements Review including a systems review and a transaction review to be conducted by an Independent Review Organization.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge for the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), made the announcement.
The United States alleged that from December 2013 to May 2017, Healthquest paid kickbacks to its marketers in order to induce them to refer patients to Healthquest for home health services.
The lawsuit was filed by a former marketer for Healthquest. She filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties, known as relators, to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case. The relator in this case will receive $300,000.
“Kickback schemes drive up the cost of health care and lead to medical services that are often unnecessary and not in the best interests of patients,” said United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to hold health care companies and their owners responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
“Referrals resulting from kickbacks that are designed to increase profits rather than improve the health of patients will not be tolerated,” said Special Agent in Charge Richmond. “OIG Special Agents are tireless in their efforts to uproot such schemes and eliminate fraud, waste, and abuse in Federal health care programs.”
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida and HHS-OIG. The case was investigated and the settlement negotiated by Assistant U.S. Attorney Susan Torres. The integrity agreement was negotiated by OIG Senior Counsel Nancy Brown.
The case is captioned United States ex rel. Perez v. Healthquest, Inc. et al., No. 16-81147-Civ-Rosenberg (S.D. Fla.). The claims asserted against Healthquest, Inc., Frank Jaramillo, and Ruth Jaramillo are allegations only, and there has been no determination of liability.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Convicted of Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
On July 13, 2018, a federal jury in West Palm Beach, Florida, convicted Charles Edward Smith of conspiracy to commit sex trafficking of a minor.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Sarah J. Mooney, Chief of Police, West Palm Beach Police Department (WPBPD), made the announcement.
On or about March 13, 2018, members of the WPBPD discovered a 14-year old minor, identified as a missing person, in a West Palm Beach residence controlled by Smith. The defendant and other co-conspirators, including Michael Joseph Clark, operated a prostitution operation out of the residence. Smith had the minor work as a prostitute, setting up her sexual encounters, giving her drugs and requiring her to use her prostitution earnings to stay at the house.
Smith was convicted of one count of conspiracy to commit sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594. The defendant was acquitted of the charge of being a felon in possession of a firearm. Smith’s sentencing hearing is scheduled for September 20, 2018, before United States District Judge Donald M. Middlebrooks. Smith faces a maximum statutory sentence of life in prison on the charge of conviction.
On June 20, 2018, co-defendant Clark pleaded guilty to conspiracy to commit sex trafficking of children and two substantive counts of sex trafficking of children. Clark is scheduled to be sentenced by Judge Middlebrooks on August 27, 2018. Clark faces a mandatory minimum statutory sentence of ten years in prison and maximum sentence of life.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigative efforts of the FBI and the WPBPD. The case was prosecuted by Assistant U.S. Attorneys Lothrop Morris and Ellen Cohen.
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.
Oregon Man Sentenced to 70 Months in Federal Prison for Detonating Explosive Device in Fred Meyer StoreRead the Press Release
PORTLAND, Ore. – Monte Robin Kaija, Jr., 47, of Portland, was sentenced today to 70 months in federal prison for detonating a small explosive device at a Fred Meyer store in Southeast Portland, and later possessing a homemade metal pipe bomb.
According to court documents, on May 21, 2016, the Portland Police Bureau (PPB) received a report of an individual placing a small pipe bomb made of PVC in an aisle of a Fred Meyer store on SE 82nd Avenue in Portland. Portland Fire & Rescue were dispatched to assist PPB with their response. Kaija detonated the device shortly before police arrived on scene, causing damage to a single aisle. Nobody was injured in the explosion, and Kaija fled. While processing the scene, PPB officers identified several fragments of white plastic PVC pipe, pieces of white plastic PVC end caps, electrical tape, and a granular, power-like substance.
After analyzing the materials collected on scene, the Oregon State Police Lab notified PPB that a DNA profile had been collected from a small piece of electrical tape. The DNA profile was matched to Kaija. On August 31, 2016, PPB officers arrested Kaija in a motorhome on SE 96th Avenue in Portland, and discovered a homemade metal pipe bomb in his motorhome. A certified bomb technician assigned to the Portland Metropolitan Explosive Disposal Unit responded to the scene and rendered the device safe. As a convicted felon, he was not allowed to possess the destructive devices.
Kaija previously pleaded guilty to two counts of possession of an unregistered destructive device in violation of 26 U.S.C. §§ 5841, 5861(d), and 5871 on December 12, 2016. Upon completion of his prison sentence, Kaija will be on supervised release for three years.
The PPB and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. It was prosecuted by Hannah Horsley and Paul T. Maloney, Assistant U.S. Attorneys for the District of Oregon.
Omaha Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Joe Kelly announced today that Lucas J. Lacy, 32, was sentenced in federal court in Omaha for Failing to Register as a Sex Offender. The Honorable Laurie Smith Camp, Chief Judge, sentenced Lacy to 18 months’ imprisonment. After his release from prison, Lacy will be under a 10-year term of supervised release.
In February 2009, Lacy was sentenced to 60 months’ imprisonment for receiving and distributing child pornography. After his release from prison, he began a five-year term of supervised release. During the course of supervision, his release was revoked and he was sent back to prison for nine months.
On November 7, 2017, Lacy was arrested in Omaha, Nebraska. He had failed to register his address with the Nebraska Sex Offender Registry.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sex Offender Registry violations are investigated by the United States Marshal Service.
O.C. Man Sentenced to 41 Months in Federal Prison for Investment Scam that Defrauded Local Businessman out of Nearly $650,000Read the Press Release
SANTA ANA, California – An Orange County man who was convicted at trial of defrauding a local businessman through a fraudulent investment scheme was sentenced this morning by United States District Judge David O. Carter to 41 months in federal prison.
Aiman Alexander Ataba, 52, of Irvine, was found guilty on March 20, 2018, of eight counts of mail fraud and three counts of money laundering. The jury’s verdicts followed a two-day trial in the United States District Court in Orange County.
The jury found that Ataba defrauded a Riverside County man out of $648,070 by convincing him to invest in Ataba’s Fountain Valley business, Innovation Validation and Design Technologies. Ataba falsely claimed that the investments would be used to manufacture and sell a device that would be used in hospitals for stem cell research.
Ataba claimed that his company was on the verge of being acquired, and he told the investor that stock in the company could be obtained at a discounted price if he invested quickly. Based on Ataba’s false representations, the victim invested $648,070 in Ataba’s company over the course of 4½ years.
According to court records, after receiving the victim’s money, Ataba immediately spent the money on personal expenses. The money was not invested in any company for the development of a device involving stem cell research. Instead, Ataba simply misappropriated and converted all of the victim’s money to his own personal uses, using the money to pay for rent, living expenses, dining out, and gambling, as well as overseas wire transfers.
Ataba diverted funds from his business account to his personal account and made approximately $350,000 in cash withdrawals. Many of the withdrawals were made at casinos in Las Vegas and on local Indian reservations. Some of the victim’s money was spent to purchase a new Toyota vehicle, which was seized in 2016 by the Federal Bureau of Investigation.
In addition to imposition of the prison term, Judge Carter today ordered Ataba to pay restitution to the victim in the amount of $648,070.
The investigation into Ataba was conducted by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Robert J. Keenan and Gina J. Kong of the Santa Ana Branch Office.
Nine people indicted for firearms crimesRead the Press Release
Nine people were indicted in federal court for firearms crimes.
Indicted are: Elijah Frink, 26, of Akron; Darnell Ingram, 23, of Cleveland; Timothy Hughart, 28, of Ashtabula; John L. Brooks, 40, of Akron; Jesse J. Kinder, 35, of Rittman; Vernon T. Coleman, 31, of Sandusky; Victor Henry Austin, 29, of Lima, Richard Rowald, 70, of Findlay, and Steven J. Robison, 35, of Findlay.
Frink was charged with being a felon in possession of ammunition. Frink on May 10 had nine rounds of ammunition despite a prior conviction for robbery, according to the indictment.
Ingram was charged with being a felon in possession of ammunition. He had a Glock .40-caliber firearm and ammunition on May 23 despite a prior conviction for aggravated robbery, according to the indictment.
Hughart is charged with being a felon in possession of a firearm and ammunition. He possessed a Taurus 9 mm pistol and ammunition on March 23, despite a previous conviction for burglary, according to the indictment.
Brooks is charged with providing false information in the acquisition of firearms. Brooks purchased a dozen firearms from three sellers at an Akron-area gun show by knowingly making false and fictitious written statements, which statements were intended and likely to deceive the sellers, in that he represented that he was the actual buyer of the firearms when in fact he was not. This took place on March 18 and 19, 2017, according to the indictment.
Kinder is charged with being a felon in possession of a firearm and distribution of methamphetamine. Kinder on Feb. 21 possessed a Smith & Wesson .40-caliber semiautomatic pistol and ammunition despite multiple previous convictions for heroin trafficking and other crimes. Kinder also distributed methamphetamine on at least three occasions, according to the indictment.
Coleman is charged with being a felon in possession of a firearm. He possessed a Taurus .380-caliber pistol, a Davis .32-caliber pistol and a Smith & Wesson .40-caliber pistol on March 30 despite previous convicitions for attempted felonious assault and other crimes, according to the indictment.
Austin is charged with being a felon in possession of a firearm. He possessed a Taurus 9 mm pistol on April 10 despite previous convictions for robbery, drug trafficking and other crimes, according to the indictment.
Rowold was charged with making a false statement during the acquisition of firearms and being a felon in possession of a firearm, and Robison was charged with making a false statement during the acquisition of firearms.
Robison on Feb. 12 falsely stated he was the purchaser of 50 AM-15 lower receivers, when, in fact, Rowold was the actual purchaser. Rowold was prohibited from possessing firearms because of prior felony convictions, according to the indictment.
These cases are being prosecuted as part of “Project Safe Neighborhoods,” a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ohio State Highway Patrol, the Cuyahoga Falls Police Department, the Sandusky Police Department, the Lima Police Department
They are being prosecuted by Assistant U.S. Attorneys Mark S. Bennett, Danielle Angeli, David M. Toepfer, Teresa Riley, Thomas P. Weldon and Matthew Simko.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Nebraska Man Sentenced to Prison tor Distribution of Child PornographyRead the Press Release
An Omaha man was sentenced to 180 months in prison today for distribution of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joe Kelly of the District of Nebraska.
Lawrence R. Quignon, 51, pleaded guilty to distribution of child pornography on April 23. U.S. District Court Judge Laurie Smith Camp of the District of Nebraska sentenced Quignon to 15 years in prison and also ordered him to serve 10 years of supervised release.
Quignon was identified via an investigation by the Nebraska State Patrol into a National Center for Missing and Exploited Children (NCMEC) CyberTipline report regarding an individual uploading child pornography onto an online chat service. During the execution of a search warrant at his home, Quignon admitted to uploading images of child pornography through the online chat service. Quignon was previously convicted of first degree sexual assault in the State of Nebraska, and is required by Nebraska law to register as a sexual offender for life.
This case was investigated by the FBI Cyber Crimes Task Force and Nebraska State Patrol. Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Norris of the District of Nebraska prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Milwaukee Man Indicted for Firearm Offense in Village of Fox CrossingRead the Press Release
United States Attorney Matthew D. Krueger announced that on July 10, 2018, a federal grand jury returned a one-count indictment against a man allegedly involved in a firearms offense in the Village of Fox Crossing in Winnebago County. The indictment named Nicholas O. Nelson (age: 35) of Milwaukee. The indictment charged Nelson with being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, 922(g) (1). If convicted, Nelson faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about February 26, 2017, while at a location in the Village of Fox Crossing, Nelson possessed a 40-caliber semiautomatic handgun. Nelson was prohibited from possession of firearms at the time of the incident.
This case is being prosecuted as part of the Project Safe Neighborhood initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The Fox Crossing Police Department investigated the case, with assistance from the Wisconsin State Crime Laboratory. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Memphis Man sentenced to 15 years imprisonment for being a Convicted Felon in Possession of a FirearmRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 15 years in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on August 4, 2017, Memphis Police Department officers attempted to conduct a traffic stop on a vehicle driven by defendant Ladarius Porter, 27. When the vehicle stopped, Porter exited and ran from officers through a residential area. After the foot chase that lasted several minutes, officers eventually caught up to and detained Porter.
Officers retraced the path that Porter had run and located a loaded firearm he discarded during his flight. Porter pled guilty to possessing the firearm as a convicted felon. In 2009, the defendant had been previously convicted of several counts of aggravated and especially aggravated robbery.
On July 13, 2018, U.S. District Judge Thomas L. Parker sentenced Porter to 15 years in federal prison as an armed career criminal.
This case was 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.
U.S. Attorney D. Michael Dunavant said: "Our PSN reinvigoration efforts provide targeted prosecution of the worst of the worst violent offenders in order to enhance public safety in Memphis. This significant sentence removes an armed career criminal from the community, and sends a strong message that we will no longer tolerate this lawless behavior. We are FED UP with gun crime in Memphis, and will continue to aggressively prosecute prohibited and dangerous offenders with firearms. Gun Crime is Max Time."
Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on behalf of the government.
Marion man indicted on fentanyl chargesRead the Press Release
A Marion man was indicted in federal court for having fentanyl.
Shiloh Jackson, 29, was indicted on one count of distribution of fentanyl. He had approximately 21 grams of fentanyl on March 10, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigating agencies in this case is the Federal Bureau of Investigation and the Marmet Drug Task Force. The case is being handled by Assistant U.S. Attorneys Michael J. Freeman and Thomas P. Weldon.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man sentenced to federal prison for hiring someone to kill his ex-wifeRead the Press Release
ROME, Ga. - Michael McEarchern has been sentenced for attempting to hire someone to kill his ex-wife, promising $10,000 and two Atlanta Hawks basketball tickets as payment for the murder.
“McEarchern was serious about having his ex-wife killed and provided $800 as a down payment for her murder,” said U.S. Attorney Byung J. “BJay” Pak. “The defendant has been brought to justice and his lengthy prison sentence will provide him with an opportunity to reflect on his egregious crime.”
“Had the FBI not been notified by a concerned citizen, McEarchern more than likely would have found someone to carry out the murder of his ex-wife,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “It is a great example of how law enforcement, working with the public, can prevent crime, and in this case the murder of an innocent woman.”
According to U.S. Attorney Pak, the charges and other information presented in court: McEarchern was an inmate at the jail in Bartow County, Georgia, having been arrested on drug-related charges in October 2017. While incarcerated, McEarchern reached out to several individuals trying to find someone who could arrange for the murder of his ex-wife, who lived in Cobb County. One individual told a friend of McEarchern’s desire to kill his ex-wife, and that person reported the crime to the FBI. To ensure that McEarchern was serious about seeking someone to carry out the murder, the FBI waited for McEarchern to reach out to the informant, which he did.
Believing that he was arranging the killing of his ex-wife, McEarchern agreed to pay $10,000 in cash and two tickets to an Atlanta Hawks basketball game as payment. Additionally, to show that he was serious, he had $800 in cash mailed to the purported assassin. Jail recordings captured McEarchern providing the address to the person who he asked to mail the money for him. The FBI retrieved an envelope containing the $800 with a return address of the person who sent the money on McEarchern’s instruction. The defendant also provided an address where the assassin could find the ex-wife.
Michael McEarchern, 29, of Acworth, Georgia was sentenced by U.S. District Judge Harold L. Murphy on July 13, 2018, to 10 years in prison to be followed by three years of supervised release. McEarchern was convicted of murder-for-hire on April 24, 2018, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Bartow County Sheriff's Office.
Assistant U.S. Attorney Kim S. Dammers, Chief of the Organized Crime and Gang Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Charged with Unlawful Transportation of Illegal AliensRead the Press Release
The United States Attorney’s Office announces that Francisco Ramirez-Espinosa, 29, a citizen of Mexico, appeared Friday in United States District Court in Burlington on a charge that he transported four illegal aliens within the United States. U.S. Magistrate Judge John M. Conroy ordered that Ramirez-Espinosa be temporarily detained.
According to the criminal complaint, on the evening of July 12, 2018, Agents from the Swanton Border Patrol Station encountered Ramirez-Espinosa driving a car with New Jersey license plates near the Highgate Springs Port of Entry. The four passengers in the vehicle and the defendant are citizens of Mexico who have no immigration status in the United States.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty. If convicted, the defendant faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Ramirez-Espinosa is represented by David McColgin of the Office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Abigail Averbach.MS-13 Member Pleads Guilty to RICO Conspiracy and Unlawful Possession of a FirearmRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to RICO conspiracy and unlawful possession of a firearm and ammunition by an illegal alien.
Manuel Landaverde, a/k/a “Scooby,” 26, a Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy, and being an alien in possession of a firearm and ammunition. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 11, 2018.
The investigation revealed that Landaverde was a member of MS-13 and conspired with other MS-13 members to commit acts of violence, including murder and attempted murder, in Massachusetts. Landaverde, who was unlawfully present in the United States, also possessed and sold a firearm and ammunition knowing it would be used in connection with the racketeering conspiracy.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Lexington Man Sentenced to 18 Months for Embezzlement from His EmployerRead the Press Release
LEXINGTON, Ky. – Thomas Scott Taylor, 38, of Lexington, Kentucky, was sentenced today to 18 months in prison by United States Senior District Court Judge Joseph M. Hood for exceeding authorized access of a protected computer, a felony under federal criminal statutes. Judge Hood also ordered Taylor to pay restitution in the amount of $492,689.59.
Taylor previously admitted to unlawfully abusing his authority to access certain protected databases of his employer, IntelliSurvey Inc., for personal gain. He further admitted that he knew that IntelliSurvey purchased and maintained a set of Amazon.com gift cards for use in rewarding IntelliSurvey’s survey participants and that some survey participants failed to redeem their Amazon.com gift cards. Taylor identified those unredeemed gift cards and used them to credit his personal Amazon account. In total, from December 16, 2011 until August 8, 2017, Taylor admitted he unlawfully stole $492,689.59 in Amazon.com gift cards from IntelliSurvey and used them to make 3,300 purchases at Amazon.com, ordering items that are easily resalable or for personal use.
Under federal law, Taylor must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 3 years.
Robert M. Duncan, United States Attorney for the Eastern District of Kentucky, Jon Oldham, Resident Agent in Charge of the United States Secret Service, and Lawrence Weathers, Chief of Police for the Lexington Police Department, jointly made the announcement today after the sentencing.
The investigation was conducted by the United States Secret Service and the Lexington Police Department. The United States was represented by Assistant United States Attorney Kathryn Anderson.
Kingsmen Motorcyle Club Member Pleads Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Glen Stacharczyck, 53, of Buffalo, NY, pleaded guilty to RICO conspiracy, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who are handling the case, stated that the defendant was a member of the North Tonawanda Chapter and the South Buffalo Chapter of the Kingsmen Motorcycle Club (KMC).
KMC members and associates used and distributed marijuana, cocaine, methamphetamine, and other controlled substances at the North Tonawanda and South Buffalo KMC Chapter Clubhouses. KMC members were also involved in firearm sales. The defendant also possessed firearms.
Stacharczyck is one of 20 KMC members and associates charged in this case. To date, 16 have been convicted, including National President David Pirk, who was recently convicted following a four-month jury trial. Charges remain pending against five other defendants. The fact that the defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Assisting in the investigation were the following: the FBI Knoxville, TN, and Jacksonville, FL Field Offices; Immigration and Customs Enforcement, Homeland Security Investigations; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the City of North Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
Sentencing is scheduled for December 12, 2018, at 10:00 a.m. before Judge Wolford.
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Kewa Pueblo Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
ALBUQUERQUE – Fabian Louis Bailon, 39, an enrolled member of Kewa Pueblo, N.M., who resides in Santa Fe, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Bailon was arrested on Jan. 12, 2018, on a criminal complaint charging him with assaulting a federal officer. According to the criminal complaint, Bailon was arrested on tribal charges on Nov. 26, 2017, after he assaulted a law enforcement officer of the Bureau of Indian Affairs (BIA). Bailon committed the assault on San Felipe Pueblo in Sandoval County, N.M., by punching the officer in the face while the officer was conducting a traffic stop.
During today’s proceedings, Bailon pled guilty to a felony information charging him with assaulting a federal officer. In entering the guilty plea, Bailon admitted that on Nov. 26, 2017, he assaulted a BIA officer by punching the officer while the officer was conducting a traffic stop on a vehicle in which Bailon was a passenger.
At sentencing, Bailon faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
Jury Convicts Texas Man of Hate Crime in the Burning of Victoria, Texas, MosqueRead the Press Release
The Justice Department today announced that a federal jury in Victoria, Texas, has returned guilty verdicts on all counts as charged related to the 2017 burning of a local mosque. Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Ryan Patrick, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Perrye K. Turner of the FBI made the announcement.
The jury found Marq Vincent Perez, 26, of Victoria, guilty for a hate crime in the burning of the Victoria Islamic Center on Jan. 28, 2017, and for use of a fire to commit a felony. In addition, they found he possessed an unregistered destructive device for an incident that occurred on Jan. 15, 2017.
“All people are entitled to live free from violence and fear, regardless of their religion or place of worship,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Perez’s actions were criminal, unlawful, and dangerous. This Justice Department is committed to holding hate crimes perpetrators accountable under the law.”
“This case represents the great coordination and cooperation of many federal, state, and local law enforcement agencies,” said U.S. Attorney Ryan Patrick. “The Department of Justice is committed to protecting the religious liberty of all people and their ability to practice their faith without being the target of this kind of dangerous activity.”
“Houses of worship are scared places in America,” said ATF Special Agent in Charge Fred Milanowski. “We are pleased in the outcome of this investigation, and ATF will continue to aggressively investigate all House of worship fires.”
“Hate crimes are not only an attack on a specific victim, they threaten the cornerstone of diversity that America was built upon,” said FBI Special Agent in Charge Perrye K. Turner. “Perpetrators of hate crimes, like Perez, aim to chip away at our nation’s foundations by instilling fear into entire communities with violence.”
The jury heard from a total of 19 government witnesses, including law enforcement officers, experts, and others who testified about communications with Perez, one of whom detailed how Perez called Muslims “towelheads.” An FBI agent took the stand and described hate-filled messages found on Perez’s Facebook account.
Testimony in court detailed how Perez planned the event and revealed how he had done “recon” of the mosque in the days leading up to the fire. A witness who was with Perez on the night of the fire described how excited Perez was upon seeing the mosque in flames, explaining that he was “jumping up and down like a little kid.”
Additional evidence presented in court revealed that items taken during two burglaries at the mosque were found at his home, and also an improvised bomb similar to what was used in an attempted car-bombing approximately two weeks prior to the fire.
The jury also heard from an arson expert who concluded the fire was the result of an “intentional application of an open flame.”
The jury found Perez guilty on all counts as charged and deliberated for approximately three hours following a five-day trial.
Perez faces up to 20 years in federal prison for the hate crime and up to 10 years for possessing an unregistered destructive device. For use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,000 fine. Sentencing has been set for October 2.
ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and sheriff’s offices in Victoria and Nueces Counties.
Assistant U.S. Attorneys Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.
Jury Convicts Perez of Hate Crime in Burning of Victoria MosqueRead the Press Release
VICTORIA, Texas – A federal jury in Victoria has returned guilty verdicts on all counts as charged related to the 2017 burning of the local mosque.
U.S. Attorney Ryan Patrick made the announcement along with Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent in Charge Perrye K. Turner of the FBI and various state and local law enforcement agencies.
“This case represents the great coordination and cooperation of many federal, state and local law enforcement agencies,” said Patrick. “The Department of Justice is committed to protecting the religious liberty of all people and their ability to practice their faith without being the target of this kind of dangerous activity.”
“All people are entitled to live free from violence and fear, regardless of their religion or place of worship,” said Gore. “Perez’s actions were criminal, unlawful and dangerous. This Justice Department is committed to holding hate crimes perpetrators accountable under the law.”
The jury found Marq Vincent Perez, 26, of Victoria, was responsible for a hate crime in the burning of the Victoria Islamic Center Jan. 28, 2017, and for use of a fire to commit a felony. In addition, they found he possessed an unregistered destructive device for an incident that occurred on Jan. 15, 2017.
“Houses of worship are scared places in America,” said Milanowski. “We are pleased in the outcome of this investigation, and ATF will continue to aggressively investigate all House of worship fires.”
“Hate crimes are not only an attack on a specific victim, they threaten the cornerstone of diversity that America was built upon,” said Turner. “Perpetrators of hate crimes, like Perez, aim to chip away at our nation’s foundations by instilling fear into entire communities with violence.”
In his opening statement, Assistant U.S. Attorney (AUSA) Sharad S. Khandelwal outlined the case against Perez, his hatred for Muslims and what transpired on several occasions in January 2018, leading up to the fire. “This is a simple, straightforward case of hate,” he said.
The jury heard from a total of 19 government witnesses, to include law enforcement officers, experts and others who testified about communications with Perez, one of whom detailed how Perez called Muslims “towelheads.” An FBI agent took the stand and described hate-filled messages found on Perez’s Facebook account.
Testimony in court detailed how Perez had planned the event and talked about how he had done “recon” of the mosque in the days leading up to the fire. A witness who was with Perez on the night of the fire described how excited Perez was upon seeing the mosque in flames, explaining that he was “jumping up and down like a little kid.”
Additional evidence also revealed that items taken during two burglaries at the mosque were found at his home as was an improvised bomb similar to what was used in an attempted car-bombing approximately two weeks prior to the fire.
The jury also heard from an arson expert who concluded the fire was the result of an “intentional application of an open flame.”
The defense attempted to shift the blame to a juvenile cooperator and tried to challenge the validity of the evidence and expert testimony. He also tried to establish an alibi. The jury was not convinced of any of the claims and found him guilty on all counts as charged following the five-day trial and approximately three hours of deliberation.
Perez faces up to 20 years in federal prison for the hate crime and up to 10 years for possessing an unregistered destructive device. For use of a fire to commit a felony, the penalty is a consecutive and mandatory minimum of 10 years in prison. All of the counts also carry a potential $250,000 fine. Sentencing has been set for Oct. 2, 2018.
He has been and will remain in custody pending that hearing.
ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and sheriff’s offices in Victoria and Nueces Counties.
AUSAs Khandelwal and Kate Suh are prosecuting the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.
Honey Creek Man Sentenced to Prison for Bank FraudRead the Press Release
COUNCIL BLUFFS, Iowa – On July 13, 2018, Jack Douglas Sprouse, age 67, of Honey Creek, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 15 months in prison for Bank Fraud, announced United States Attorney Marc Krickbaum. Sprouse was ordered to serve five years of supervised release to follow his prison term and pay restitution in an amount of $236,023.54.
According to the plea agreement, Sprouse was the owner of Business Security Software Systems. Beginning at least as early as January 2013, until May of 2016, Sprouse, on behalf of the company, submitted false information to First National Bank of Omaha to ensure the continued distribution of money from a business loan to the company.
This matter was investigated by the Federal Bureau of Investigation and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Heroin Supplier for Trenton Drug Trafficking Organization Pleads GuiltyRead the Press Release
TRENTON, N.J. – A Trenton woman today admitted her role in a drug trafficking conspiracy that distributed hundreds of grams of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
Ileana Sanchez, a/k/a “Lilly,” a/k/a “Mami,” 34, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an indictment charging her with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.
In December 2016, Sanchez and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Sanchez is the last of the 10 defendants to plead guilty.
According to documents filed in this case and statements made in court:
From July 2015 through December 2016, Sanchez and others participated in a drug trafficking organization that operated in the area of Spring Street and Passaic Street in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Sanchez and Jose Joaquin Torres-Mezquita.
Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement.
The conspiracy charge to which Sanchez pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential sentence of 40 years in prison and a $5 million fine. Sentencing is scheduled for Oct. 24, 2018.
U.S. Attorney Carpenito credited the Greater Trenton Safe Streets Task Force, including special agents of the FBI Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Acting Director Pedro Medina; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael, Newark Field Office; officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: John M. Holliday Esq., Hackensack, New Jersey
Harrisburg Man Pleads Guilty to Unlawful Possession of A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tremayne James, age 24, of Harrisburg, Pennsylvania, pled guilty on July 10, 2018, before United States District Court Judge Sylvia H. Rambo to unlawful possession of a firearm by a convicted felon.
According to U.S. Attorney David J. Freed, James possessed a loaded .40 caliber, Smith and Wesson firearm in his Harrisburg residence on December 7, 2017. James’ 10 year-old nephew found the firearm and it accidentally fired, striking the boy’s six year-old sister in the chest. The victim was treated at the Hershey Medical Center and survived.
The case was investigated by the Harrisburg Police Bureau and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to 10 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Keion Griffin, age 23, of Harrisburg, Pennsylvania, was indicted on July 11, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Griffin possessed with intent to distribute cocaine base and marijuana on April 15, 2017, in Swatara Township. The indictment also alleges that Griffin possessed multiple handguns in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Swatara Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hamburg Man Pleads Guilty to Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Joseph C. Paternostro, 28, of Hamburg, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between July 2016 and May 2, 2017, the defendant regularly purchased cocaine from a source of supply in Dunkirk, NY on a weekly basis for resale to local customers. On February 9, 2017, and February 16, 2017, the Drug Enforcement Administration conducted two undercover purchases of cocaine from Paternostro.
On November 16, 2017, law enforcement officers surveilled the defendant’s vehicle and conducted a probable cause traffic stop. Officers recovered cocaine from Paternostro’s pocket. Officers also executed a New York State search warrant at the defendant’s residence on Lake Heights in Hamburg. During the search, a quantity of cocaine was seized, as well as a drug scale with cocaine residue, and drug packaging material.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; and the Evans Police Department, under the direction of Chief Douglas Czora.
Sentencing is scheduled for October 18, 2018, at 2:30 p.m. before Judge Geraci.
Georgetown Man Sentenced to 190 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, Ky. – A Georgetown man, Nicholas Aaron Willinger, 34, has been sentenced to 190 months in federal prison, to be followed by a life term of supervised release, for knowingly receiving child pornography.
On Monday, Senior United States District Judge Joseph M. Hood formally sentenced Willinger, who must serve 85 percent of his federal prison sentence.
Willinger previously admitted that, in November of 2013, he knowingly received images of child pornography on his laptop computer. A forensic examination of Willinger’s device revealed 56 videos of child pornography, including eleven videos depicting children under the age of six and four videos that depicted sadistic or masochistic conduct.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy S. Hess, Special Agent in Charge, Federal Bureau of Investigation, and Kentucky State Police Commissioner Rick Sanders jointly announced the sentence.
The investigation was conducted by the FBI and the KSP. The United States was represented by Assistant United States Attorney David Marye.
Fresno Gamecock Breeder Pleads Guilty to Animal Cruelty ChargeRead the Press Release
FRESNO, Calif. — Thomas Lee Crow, 49, of Fresno, pleaded guilty today to aiding and abetting an unlawful animal fighting venture involving a large cockfighting enterprise, U.S. Attorney McGregor W. Scott announced.
Animal fighting is illegal under federal law. In cockfighting, roosters are typically outfitted with sharp instruments or spurs on their legs and fight to the death with spectators betting on the outcome.
According to his plea agreement, law enforcement officers searched Crow’s rural Fresno residential property last summer after he was found at a large cockfighting event in Kerman. At the cockfight, Fresno County deputies and detectives recovered 129 fighting roosters, including 28 dead and nine injured roosters. Crow was in possession of $22,800 in cash, along with a score sheet that tracked fighting bird entries and winnings. They also found cockfighting equipment, such as gaffs, blades, sheaths, gamecock leather boots, and scales. During the search of Crow’s residence, officers found an additional 200 fighting roosters and other items associated with cockfighting. They seized over 300 gaffs, including Mexican slashers, injectables used for fighting birds, and scoresheets.
Crow is scheduled for sentencing on October 22, 2018, before Chief U.S. District Judge Lawrence J. O’Neill. Crow faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fresno County Sheriff’s Office, Humane Society, and Central California SPCA. The Environmental Crimes Section of the U.S. Department of Justice also assisted in the investigation.
The U.S. Attorney’s Office has partnered with the Rural Crimes and Animal Cruelty Unit of the Fresno County District Attorney’s Office in coordinating the filing of charges against Crow and three spectators at the cockfight in Kerman. The District Attorney’s Office prosecuted and convicted the spectators Job Hernandez, 35, of Visalia, Javier Flores-Arreola, 49, of Los Banos, and Javier Cerda, 65, of Reedley on animal cruelty charges. Assistant United States Attorney Karen A. Escobar prosecuted the case against Crow.
Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
A dual U.S.-Venezuelan citizen pleaded guilty today for his role in a scheme to bribe officials of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), and for his role in an international money laundering scheme involving the bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Luis Carlos De Leon-Perez (De Leon), 42, a citizen of the United States and Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted De Leon’s plea. Sentencing is scheduled for Sept. 24.
De Leon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Nervis Gerardo Villalobos Cardenas (Villalobos), 51; Cesar David Rincon Godoy (Cesar Rincon), 51; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39.
According to admissions made in connection with De Leon’s plea, between 2011 and 2013, he conspired with Villalobos, Cesar Rincon, Isturiz and others, all of whom were then officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, De Leon admitted that he solicited and directed bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 55, of Coral Gables, Florida, to PDVSA officials in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. De Leon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in Switzerland held in the names of individuals or entities other than De Leon and his co-conspirators.
As part of his plea agreement, De Leon also admitted to soliciting bribes from other owners of energy companies based in the United States and elsewhere, and directing a portion of such bribes to PDVSA officials in order to assist those individuals and their companies in winning business with PDVSA and to obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors.
Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the FCPA for their respective roles in the bribery scheme. Cesar Rincon previously pleaded guilty to one count of conspiracy to commit money laundering. They currently await sentencing.
The charges against Villalobos, Isturiz and Reiter remain pending. Each of the three remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. Villalobos is also charged with one count of conspiracy to violate the FCPA. Villalobos and Reiter remain in Spain pending extradition and Isturiz remains at large.
The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
De Leon is the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including De Leon, Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 12 individuals in connection with the investigation.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Teacher and Summer Camp Employee Admits Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted his role in producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Colin M. Skeele, 32, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of producing child pornography. Skeele was previously arrested and charged by complaint on Aug. 4, 2016.
According to documents filed in this case and statements made in court:
Skeele previously worked as a counselor at a boys’ summer camp in Hardwick, New Jersey, and as a teacher at parochial schools in Boonton, New Jersey, and Stirling, New Jersey.
In 2011, Skeele became Facebook friends with a boy that Skeele met while working as a counselor at a boys’ summer camp in Hardwick, New Jersey. In Facebook messages with the minor, Skeele offered to pay money for the minor to take sexually explicit photographs to send to Skeele. In one instance, Skeele paid the boy approximately $100 to send nude images of himself. Skeele later sent at least one pornographic image of that minor to another minor that had also attended the summer camp.
On multiple occasions in February 2012, Skeele communicated online with individuals located in the Philippines to purchase live child sexual abuse shows, which Skeele viewed via an online video chat service. Instant messages obtained during the investigation revealed that Skeele used an online fund transfer service to purchase live sexual abuse videos of young children.
Anyone with information regarding possible victims of this activity is urged to contact the Department of Homeland Security in Newark, New Jersey, at 973-776-5500.
The charge of producing child pornography to which Skeele pleaded guilty is punishable by a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 22, 2018.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation that led to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Criminal Division.
Defense Counsel: Jay V. Surgent, Esq., Parsippany, New Jersey
Former Second Chance Body Armor President Settles False Claims Act Case Related to Defective Bullet Proof VestsRead the Press Release
Richard C. Davis, the founder and former president and CEO of Michigan-based Second Chance Body Armor, Inc., agreed to resolve claims under the False Claims Act in connection with his role in the sale of defective Zylon bullet-proof vests purchased by the United States for federal, state, local and tribal law enforcement agencies, the Justice Department announced today. Mr. Davis will relinquish his interest in $1.2 million in assets previously frozen by the United States and will pay an additional $125,000 to the United States. This settlement is based on Mr. Davis’ ability to pay.
Second Chance sold body armor to state, local and tribal law enforcement agencies reimbursed by the Department of Justice’s Bulletproof Vest Partnership (BVP) program and to federal agencies under contracts with the General Services Administration. The United States alleged that Second Chance’s vests were defective due to the loss of their ballistic capability when exposed to heat and humidity. The United States also alleged that by 2001, Davis was aware that Second Chance’s Zylon body armor was degrading at what he described as a “disappointing” rate.
The United States further alleged that, rather than using a $6 million payment from Toyobo Co. Ltd., the manufacturer of Zylon fiber, to fix the degradation problem, Second Chance pocketed the money and Davis and other Second Chance owners began meeting with various investment bankers in an effort to sell Second Chance. These efforts to sell the company allegedly stopped after a Forest Hills, Pennsylvania police officer was shot through his Second Chance Zylon vest in June 2003. Second Chance filed for bankruptcy in 2004 and was liquidated.
Subsequent tests by the National Institute of Justice (NIJ) of Zylon-containing vests found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. The performance of Second Chance Zylon vests were reported to be among the worst. The NIJ removed all Zylon-containing vests from its list of compliant products, and Zylon is no longer used in ballistic vests.
“The Department of Justice will pursue those who attempt to fraudulently profit at the expense of the United States, particularly when the stakes are life or death,” said Acting Associate Attorney General Jesse Panuccio. “Bullet proof vests protect the brave men and women of our nation’s law enforcement community, and those who manufacture and sell these products have a solemn duty to ensure their safety and efficacy.”
"Fraudulently presenting false claims to the government regarding products intended to protect the lives of public servants is illegal and utterly unacceptable," said Carol F. Ochoa, Inspector General of the U.S. General Services Administration.
“I again want to emphasize that marketing faulty protective gear to law enforcement officers who put themselves in the line of fire is an unconscionable act and a betrayal of trust” said Jon Adler, Director of the Bureau of Justice Assistance. “Our unwavering priority is to protect our officers as they keep our communities safe.”
The settlement resolves, in part, allegations filed in a lawsuit by Aaron Westrick, Ph.D., a former employee of Second Chance, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case as to the allegations against Davis. Dr. Westrick will receive $28,750 plus a share of whatever the United States ultimately recovers from the previously frozen funds.
This settlement is part of a larger investigation of the body armor industry’s use of Zylon. The United States has previously recovered over $132 million from 18 corporations and individuals who participated in the sale of Zylon body armor. The Civil Division has transferred over $22 million of these recovered funds to the BVP program to replace BVP funds which had been used to purchase Zylon vests. The funds transferred to the BVP program will be used to fund the purchase of additional ballistic-resistant vests for state, local and tribal law enforcement officers. The United States is continuing to pursue claims against Honeywell International Inc., which allegedly sold a laminated version of Zylon for use in police armor.
The investigation and litigation of this matter were handled by the Civil Division’s Commercial Litigation Branch; the General Services Administration, Office of the Inspector General; the Department of Commerce, Office of Inspector General; the Defense Criminal Investigative Service; the U.S. Army Criminal Investigative Command; the Department of the Treasury, Office of Inspector General for Tax Administration; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; and the Defense Contracting Audit Agency.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The lawsuit partially resolved by the settlement is captioned United States ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (PLF) (D.D.C.).
Former Employee of Container Manufacturing Company Guilty of Tampering with Consumer ProductsRead the Press Release
BOWLING GREEN, Ky. – A former employee of a container manufacturing plant, located in Hart County, Kentucky, pled guilty in United States District Court to tampering with consumer products Friday before United States District Judge Greg N. Stivers, announced United States Attorney Russell M. Coleman.
In 2016, Waylon J. Horton, age 44, worked as an employee of the container manufacturing plant in the area of Print Set-Up on the production line for Styrofoam drinking cups at a specific company facility in Horse Cave, Kentucky. On two separate occasions in July 2016, Horton, with reckless disregard for the risk of death or bodily injury it might cause, placed pieces of broken glass in Styrofoam drinking cups that were then shipped to fast food restaurants. Glass pieces were subsequently found in cups at three different restaurants in Ohio, Kentucky, and Indiana. After receiving complaints, the container manufacturing plant put the distribution of Styrofoam cups that were produced in its facility on hold and seven additional boxes containing Styrofoam cups with broken glass were ultimately found.
At sentencing, Horton could be sentenced to up to 10 years in prison, a period of supervised release of up to three years, and fined up to $250,000. According to the plea agreement, Horton will also owe restitution in an amount to be determined at sentencing. Horton is scheduled for sentencing before Judge Greg N. Stivers on October 11, 2018, at 9:45 AM in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys Amanda Gregory and Marisa Ford and is being investigated by the Federal Bureau of Investigation and the Hart County Sheriff’s Office.
Former Congressional Staffer Sentenced to 18 Months in Prison on Federal Bribery and Extortion ChargesRead the Press Release
LOS ANGELES – A former staffer for a member of the United States Congress was sentenced today to 18 months in prison for bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a marijuana shop in the City of Compton.
Michael Kimbrew, 45, of Santa Clarita, was sentenced by United States District Judge R. Gary Klausner for attempting to extort a marijuana dispensary in Compton and threatening to shut down the shop if the owners did not pay him a $5,000 bribe.
According to court testimony, in exchange for the payoff, Kimbrew promised to wield his power as a federal employee and public official to help the shop obtain a lucrative permit to continue operating.
According to the evidence presented at trial, Kimbrew claimed to “oversee all activities in Compton” and threatened the shop’s owners, an employee of the shop, and later an undercover FBI agent in recorded meetings that he was going to shut down the shop unless he received the bribe. He claimed that, by virtue of his federal employment for the Congress member, he had “authority” and “jurisdiction” over what Compton public officials and departments did. In exchange for the $5,000, he promised to exercise that authority and jurisdiction to keep the shop in business.
Ultimately, during a lunch meeting in Compton, Kimbrew accepted $5,000 in cash hidden inside of a restaurant menu from the undercover agent. When he pocketed the cash, Kimbrew pledged his “undying support” to protect the shop.
“The conviction in this case demonstrates our ongoing commitment to the people of the District to root out public corruption,” said United States Attorney Nicola T. Hanna.
In sentencing documents, the government argued for imprisonment, citing, among other factors “the need to send a message to both [Kimbrew] and other public servants that corruption will not be tolerated.”
In addition to the prison term, Judge Klausner ordered Kimbrew to serve three years of supervised release and pay $5,000 in restitution and $4,000 in fines.
This case was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former Business Partner of U.S. Military Contractor Pleads Guilty to Bribery Scheme Related to Contracts in Support of Iraq WarRead the Press Release
A former business partner of a U.S. military contractor pleaded guilty today to one count of bribery for his role in a years-long scheme to bribe U.S. Army contracting officials stationed at a U.S. military base in Kuwait, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
According to the plea filed today in the U.S. District Court for the Northern District of Alabama, Finbar Charles, 62, a citizen of Saint Lucia most recently residing in Baguio City, Philippines, was a business partner of a former U.S. military contractor, Terry Hall. As Hall’s business partner, Charles facilitated Hall and others in providing millions of dollars in bribes in approximately 2005 to 2007 to various U.S. Army officials in exchange for preferential treatment for Hall’s companies in connection with Department of Defense (DOD) contracts to deliver bottled water and construct security fencing to support U.S. troops stationed in Kuwait and Iraq.
As part of his role in this criminal conspiracy, Charles managed bank accounts in Kuwait and the Philippines that he used to receive DOD payments and transfer illegal bribes to various U.S. Army contracting officials, including Majors Eddie Pressley, John Cockerham, James Momon, and Chris Murray. All of those individuals, as well as at least 10 other coconspirators, have pleaded guilty or been convicted of crimes relating to this scheme. Charles admitted that he personally received over $228,000 in illicit gains as a result of his participation.
The sentencing is set for Nov. 26.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Army Criminal Investigation Command, the FBI, and the Special Inspector General for Iraq Reconstruction. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The case is being prosecuted by Trial Attorneys Peter N. Halpern and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former Apple Employee Indicted on Theft of Trade SecretsRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Xiaolang Zhang on Thursday, July 12, 2018, for theft of trade secrets, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigations, Special Agent in Charge John F. Bennett. Zhang was arraigned before U.S. Magistrate Judge Virginia K. DeMarchi today on charges of theft of trade secrets, in violation of 18 U.S.C. § 1832. Zang entered a plea of not guilty at the hearing.
According to the indictment, Zhang, 33, of San Jose, is alleged to have taken a confidential 25-page document containing detailed schematic drawings of a circuit board designed to be used in the critical infrastructure of a portion of an autonomous vehicle, knowing that the theft would injure the owner of the trade secrets, Apple, Inc.
Court documents filed in the case allege that on April 30, 2018, Zhang told Apple personnel that he was resigning from his job so that he could return to China to be closer to his mother who was ill. Apple immediately terminated Zhang’s access to its computer systems and Apple personnel began a forensic analysis of Zhang’s Apple-owned devices and network activity.
According to an affidavit filed in the case, Apple subsequently learned that Zhang went to work for X-MOTORS – a company focused on electric automobiles and autonomous vehicle technology with its headquarters in China. Apple security personnel confirmed that in the three days prior to April 30, 2018, Zhang’s network activity increased notably compared to the prior two years of his employment. The majority of his activity consisted of downloading information from the project databases, and the downloaded information contained trade secret intellectual property.
On July 7, 2018, FBI Agents learned that Zhang purchased a last-minute round-trip airline ticket with no co-travelers, departing San Jose, Calif., on July 7, 2018, traveling to Beijing, China with a final destination of Hangzhou, China aboard Hainan Airlines. Federal agents intercepted and arrested Zhang at the San Jose International Airport after he had passed through the security checkpoint of Terminal B.
Zhang made his initial appearance in federal court in San Jose on July 9, 2018, before Magistrate Judge DeMarchi. On July 10, 2018, Zhang was released, subject to GPS electronic monitoring, on a $300K bond. Zhang’s next appearance is scheduled for August 27, 2018, at 1:30 p.m., before the Honorable Edward J. Davila, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison, and a fine of $250,000. In addition, the court may order that Zhang serve a term of supervised release of up to 3 years following the prison term plus restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Amie Rooney and Matt Parrella are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Former Airport Contractor Pleads Guilty to Paying over $5 Million in Bribes and KickbacksRead the Press Release
William Pritula, 69, of Romulus pleaded guilty to paying co-defendant James Warner, a field inspector at the Wayne County Airport Authority (WCAA), over $5 million in bribes and kickbacks between May of 2010 and August of 2014, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Timothy Slater, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Thomas J. Ullom, Special Agent-in-Charge of the Chicago Field Office of the United States Department of Transportation, Office of Inspector General.
Pritula, who owned and operated Pritula and Sons, a company which sought and entered into contracts for pavement repair and replacement, as well as water main repair and fire hydrant installation and maintenance at the Detroit Metropolitan Airport, participated in a scheme in which Warner, with Pritula’s knowledge, would draft and submit fraudulently-inflated invoices for work which Pritula was contracted to perform at the airport. Upon payment by the WCAA to Pritula, Pritula would kickback roughly half of the profits to Warner—a total of over $5 million over four years. Thus far, law enforcement has seized $11.4 million in criminal proceeds, including $7.5 million from Pritula and $3.9 million from Warner.
The bribery charge to which Pritula has pleaded guilty carries a maximum sentence of 10 years’ imprisonment and a fine of up to $250,000.
United States Attorney Schneider said, “Today’s guilty plea to one of the largest bribes prosecuted to date in the Eastern District of Michigan, reinforces our continued commitment to protecting our citizens from the fraud, waste, and abuse that stems from bribe-paying contractors who are motivated by greed rather than a desire to improve our public infrastructure.”
“To those who seek advantage in obtaining government contracts by paying kickbacks or bribes, the message should be clear—the collective resources of the FBI and our law enforcement partners will expose your illegal activities and bring you to justice”, said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI.
“As evidenced by the guilty plea entered into today by William Pritula, investigating acts of corruption and pursing the individuals who commit them remains a top priority for the Department of Transportation (DOT) Office of Inspector General (OIG),” stated Thomas J. Ullom, Regional Special Agent-In-Charge, DOT-OIG. “Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts in preventing, detecting and prosecuting infrastructure fraud.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation. The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown, Paul Kuebler and R. Michael Bullotta.
Final Defendant Pleads Guilty to Defrauding California Workers’ Compensation SystemRead the Press Release
FRESNO, Calif. — John Thomas Terrence, 75, of Marina del Rey, pleaded guilty today to health care fraud involving a scheme to defraud the California workers’ compensation insurance system, U.S. Attorney McGregor W. Scott announced.
According to court documents, Terrence, a clinical psychologist saw patients in Bakersfield by “Skype,” generated reports for each patient that were virtually word-for-word identical, and then submitted identical bills to the insurance companies. Co-defendants Bhahar Gharib-Danesh, 41, of Woodland Hills, and Na Young Eoh, 44, of Bakersfield, were chiropractors working at the same company. They previously pleaded guilty to health care fraud charges in this case. The three defendants admitted to assisting in submitting bills to workers’ compensation insurers for medical-legal evaluations for which they were not legally permitted to bill.
Pain Free Diagnostics Inc. (dba Pain Free Management) pleaded guilty on July 9, 2018, to conspiracy to commit health care fraud and agreed to pay restitution to the defrauded worker’s compensation insurers in the amount of $1.2 million.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Insurance Fraud Division, and the Kern County District Attorney’s Office. Assistant U.S. Attorneys Mark J. McKeon and Michael Tierney are prosecuting the case.
Terrence is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 22, 2018; Gharib-Danesh is scheduled to be sentenced on October 1, 2018; and, Eoh is scheduled to be sentenced on September 4, 2018. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Eight Charged in Marion and Taylor County Drug ConspiraciesRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman today announced the arrests and indictments of eight defendants from Taylor and Marion Counties on conspiracy charges to sell methamphetamine and cocaine. Multiple law enforcement agencies including the Kentucky State Police (KSP), the Columbia, Kentucky, High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) served federal arrest warrants this morning in an on-going investigation into drug trafficking in south central Kentucky.
“These arrests and indictments are testament to a renewed sense of collaboration amongst those that protect our Commonwealth from narcotics trafficking” stated U.S. Attorney Russell Coleman “As long as some persist in flooding Kentucky communities with their poison, they will be met with federal, state, and local law enforcement standing shoulder to shoulder.”
Eight defendants were charged in three separate indictments on July 11, 2018, by a federal grand jury meeting in Bowling Green, Kentucky. Defendants Christopher Shipp, Matthew Smothers, and Patricia McNear are charged with conspiring to distribute methamphetamine in Marion County, Kentucky, between March and June of 2016. Mickey DeWayne Watson is charged in a four-count indictment with possession and conspiracy to distribute methamphetamine in Taylor County, Kentucky, during June and August of 2016. Further, William Downs, Rashad Dunn, Cali Gomez and Keyaira Grider are charged in a single count indictment with conspiracy to possess and intent to distribute cocaine base during April and May of 2016 in Taylor County, Kentucky.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the KSP and the Columbia HIDTA Task Force with assistance from ATF, DEA and the Lebanon, Campbellsville, and Columbia Kentucky Police Departments.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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Courtney Hallstrom pleads not guilty to charge that she conducted straw purchase of firearmRead the Press Release
The United States Attorney for the District of Vermont announced that Courtney Hallstrom, 23, of Northfield, pleaded not guilty today in United States District Court in Burlington to a charge that she made materially false statements in connection with her purchase of a firearm. U.S. Magistrate Judge John M. Conroy ordered that Hallstrom be detained pending a July 18 bail hearing.
On July 12, 2018, a federal grand jury returned a one-count indictment accusing Hallstrom of making two false statements during her purchase of a .380 caliber semi-automatic pistol from a licensed firearms dealer on May 15, 2018. According to the indictment, Hallstrom falsely swore on the Firearms Transaction Record that she was the actual purchaser of the gun, that is, she was not buying the gun on another person’s behalf. Hallstrom allegedly also falsely claimed that she was not an unlawful user of narcotics. In fact, according to court records, it is alleged that Hallstrom traded the gun to a convicted felon in exchange for a gram of crack cocaine.
The United States Attorney emphasizes that the indictment is merely an accusation and that Hallstrom is presumed innocent unless and until she is proven guilty.
Captain with Bristol County Sheriff’s Office Convicted of Smuggling Profits to PortugalRead the Press Release
BOSTON – A Captain with the Bristol County Sheriff’s Office was convicted today by a federal jury in connection with helping Carlos Rafael, known as the Codfather in the fishing industry, and the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal.
Jamie Melo, 46, of North Dartmouth, Mass., was convicted of one count of conspiracy to commit offenses against the United States and one count of structuring the export of monetary instruments. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 24, 2018. The jury acquitted the defendant of one count of bulk cash smuggling.
During the trial, evidence showed that while at Logan International Airport Melo asked his friends and travel companions to carry envelopes of cash for Rafael on a flight to the Azores in Portugal. At the time, Melo was an Administrative Captain with the Bristol County Sheriff’s Office and was traveling to the Azores with Rafael for a charity event sponsored by the Bristol County Sheriff’s Office. Prior to the flight, Melo asked three of travel companions to follow him into the men’s bathroom at Logan Airport before going through the TSA Security Checkpoint and distributed four envelopes of cash, taking one for himself. Two days after arriving in Portugal, bank records demonstrate that Rafael deposited $76,000 in U.S. currency into his Portuguese bank account.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of structuring the export of monetary instruments provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $500,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Investigations, Philadelphia Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Neil Gallagher and Justin O’Connell of Lelling’s Economic Crimes Unit is prosecuting the case.
Cambria County Man Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Joseph L. Prave, III, 52, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 26, 2016, Prave distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 12, 2018, at 10:00 a.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Prave.