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28 August 2018
Defendants in ticket-switching scam sentencedRead the Press Release
ATLANTA - Charles Blackman, a/k/a Ralph Jones, and Quinton Williams were sentenced to federal prison by U.S. District Judge Amy Totenberg for altering the prices of merchandise, through an elaborate “ticket-switching scheme” at The Home Depot and Lowe’s on August 27, 2018.
“These defendants defrauded Home Depot and Lowe’s of merchandise valued in excess of $300,000 and $1 million, respectively,” said U.S. Attorney Byung J. “BJay” Pak. “Security measures at The Home Depot helped uncover and stop this scheme before they could steal more. It is unfortunate that the consumer pays the cost of these elaborate schemes in a higher cost of goods.”
“The U.S. Secret Service and our law enforcement partners work tirelessly to protect our nation’s electronic financial payment systems,” said Malcolm D. Wiley, Acting Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “Today’s sentences should serve as a reminder that criminals will not get away with using point of sale terminals to fund their criminal activities.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Blackman and his associates allegedly switched or altered the prices of merchandise by changing the Universal Product Code (UPC), so the items could be purchased at a lower price and then returned for the actual, higher retail price. They used false information and fake identifications to further their fraud. Their alleged scheme was to cheat The Home Depot and Lowe’s out of the hundreds of thousands of dollars to be made on the price difference after returning the merchandise.
Charles Blackman, a/k/a Ralph Jones, 58, of Atlanta, Georgia was sentenced to three years, one month in prison, to be followed by two years of supervised release. He was also ordered to pay restitution in the amount of $1,269,621.00 to The Home Depot and Lowe’s.
Quinton Williams, 52, of Atlanta, Georgia, was sentenced to time served in prison, to be followed by two years of supervised release. He was also ordered to pay restitution in the amount of $269,515.00 to The Home Depot.
This case was investigated by the U.S. Secret Service. The Woodstock Police Department and Cherokee County District Attorney’s Offices contributed to this case.
Assistant U.S. Attorney Cassandra J. Schansman 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.
Defendant sentenced for stealing Social Security benefitsRead the Press Release
ATLANTA - Monty Jack Stansell has been sentenced to federal prison after pleading guilty to stealing his deceased mother’s Social Security benefits.
“Stansell stole his deceased mother’s Social Security payments for six years, using the money to pay for his own personal expenses,” said U.S. Attorney Byung J. “BJay” Pak. “Those who steal Social Security benefits threaten the integrity of the program and divert vital resources away from those who need them most.”
“The Social Security Administration Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits,” stated Special Agent-in-Charge Margaret Moore-Jackson. “I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the Social Security Administration’s programs for those who rely on them now and into the future.”
According to U.S. Attorney Pak, the charges and other information presented in court: Stansell’s mother died on April 1, 2008. Her Social Security benefits continued to be direct deposited into a joint SunTrust bank account that she shared with Stansell after her death. When investigators initially questioned Stansell, he claimed that he was unaware that his mother’s Social Security benefits were still being paid after her death. Stansell admitted to spending money out of the account, but claimed that he never looked at bank statements.
After investigators questioned Stansell a second time, he admitted that he received notice from the Social Security Administration in late 2008, informing him of his mother’s continued benefits. Instead of notifying the Social Security Administration that his mother had died, Stansell continued to receive and spend her benefits on his own personal expenses. In total, Stansell stole over $90,000 in Social Security benefits.
Monty Jack Stansell, 66, of Douglasville, Georgia was sentenced to one year, nine months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $93,872 on August 27, 2018. Stansell was convicted on these charges on April 25, 2018, after he pleaded guilty.
This case was investigated by the Social Security Administration - Office of the Inspector General.
Special Assistant U.S. Attorney Diane C. Schulman 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.
Crack Dealer Sentenced to Six Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry L. Adams today sentenced Darrick “Block” Stafford (41, Jacksonville) to six years in federal prison for selling crack cocaine and for possessing a firearm as a convicted felon. Stafford had pleaded guilty on May 30, 2018.
According to court documents, Stafford participated in a series of firearms sales to an undercover special agent and a confidential informant working for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The weapons included a stolen firearm and assault-style rifles with high-capacity magazines. Stafford also sold the undercover agent powder cocaine and crack cocaine.
When Stafford was arrested by detectives from the Jacksonville Sheriff’s Office, they located a loaded .45-caliber pistol hidden under the hood of the car that he had been driving. As a previously convicted felon for offenses including robbery and firearms violations, Stafford is prohibited from possessing firearms or ammunition.
This case was investigated by the ATF and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Corpus Christi Man Sentenced in McAllen for Cocaine TraffickingRead the Press Release
McALLEN, Texas – A 41-year-old resident of Corpus Christi has been ordered to federal prison following his convictions of conspiracy and possession with the intent to distribute cocaine, announced U.S. Attorney Ryan K. Patrick. A federal jury convicted Ramiro Cordova Jr. Oct. 18, 2016, following less than two days of trial and approximately an hour of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, ordered Cordova to serve a 240-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Crane noted Cordova’s status as a career offender due to his criminal history which included convictions for engaging in organized criminal activity to commit aggravated robbery and aggravated kidnapping and possession with intent to distribute 728 kilograms of marijuana.
During trial, the jury heard that on Sept. 1, 2016, law enforcement learned of a suspicious tractor trailer and conducted surveillance on the vehicle. They later executed a traffic stop on the vehicle in Edinburg, during which time a K-9 alerted to the presence of narcotics. The tractor trailer was then transported to the Pharr port of entry for further inspection where authorities located 40 bundles of cocaine weighing approximately 47 kilograms. Cordova was the driver.
Cordova was arrested and said he believed he was transporting marijuana. However, in subsequent interviews, he admitted he was transporting cocaine and was to be paid approximately $1,000 per kilogram he transported.
At trial, the defense argued that Cordova was transporting the drugs due to threats he received against members of his family for previously serving as an informant. Cordova took the stand and admitted to being previously convicted of transporting more than 700 kilograms of marijuana in 1999 and served 115 months in federal custody. He further testified that after being released from custody, he was coerced into delivering at least an additional six loads of a controlled substance to various cities across the United States, including Chicago.
Texas Department of Public Safety conducted the investigation with the assistance of the Alton Police Department and Customs and Border Protection. Assistant U.S. Attorneys Roberto Lopez Jr. and Robert L. Guerra Jr. prosecuted the case.
Convicted Felon Indicted for Making False Statements on a Federal Background Check Form while Attempting to Purchase a FirearmRead the Press Release
Memphis, TN – A federal grand jury returned an indictment against convicted felon Everette Alexander, 47, for making a false statement on ATF Background Check Form 4473 when attempting to purchase a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment in this "lie-and-try" case today.
Count 1 charges Alexander did willfully and knowingly make and use a false writing on a federal form during the purchase of a firearmat Flash Pawn in Memphis, on December 2, 2017, in violation of Title 18, United States Code, Section 1001(a)(3).
Count 2 charges that Alexander did knowingly make false and fictitious written statements on December 2, 2017, to deceive Flash Pawn that the defendant had not previously been convicted of a felony, in violation of Title 18, United States Code, Section 922(a)(6).
Count 3 charges that Alexander, having previously been convicted of a crime, did knowingly possess in and affecting interstate commerce on December 16, 2017, a Cobra .380 caliber pistol; in violation of Title 18, United States Code, Section 922(g)(1).
Count 4 charges that Alexander, having previously been convicted of a crime, did knowingly possess in and affecting interstate commerce on February 12, 2018, a Cobra .380 caliber pistol; in violation of Title 18, United States Code, Section 922 (g)(1).
U.S. Attorney D. Michael Dunavant said, "Prosecutions of violent crimes must be paired with proactive prevention efforts to keep guns out of the hands of criminals and other prohibited persons. A valuable tool in this prevention effort is the ATF Background Check Form 4473, which must be completed before a federally licensed firearms dealer sells or transfers a firearm. Criminals and other prohibited persons who attempt to thwart the background check process by lying on the required forms threaten to undermine this important crime prevention tool, and such conduct cannot be tolerated. As part of our violence reduction strategy and reinvigorated PSN efforts, we want to take guns out of the hands of dangerous people, and take violent offenders off our streets. Let this serve as a warning: This office will vigorously prosecute any prohibited persons who attempt to illegally obtain a firearm in these "lie-and-try" cases.
If convicted, the defendant faces a sentence of up to 10 years in federal prison; three years supervised release and $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms, Explosives (ATF) investigated this case.
Assistant U.S. Attorney Neal Oldham is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Columbus Man Sentenced to 17 Years for Armed Robberies in Clark, Fairfield CountiesRead the Press Release
COLUMBUS, Ohio – Dashawn Anthony Starnes, 27, of Columbus, was sentenced in U.S. District Court to 204 months in prison for four charges related to armed bank robbery.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Columbus Police Chief Kim Jacobs, Springfield Police Chief Stephen P. Moody and Baltimore Police Chief Michael W. Tussey announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to the statement of facts, Starnes acted as the getaway driver and/or participated in two armed robberies in the summer of 2015.
On June 30, 2015, Starnes drove Lawrence W. Bell, Jr., 32, of Columbus, to the Fifth Third Bank on Tuttle Road in Springfield, Ohio for the purpose of committing a robbery. On August 18, 2015, Starnes and Bell robbed the Peoples Bank on North Main Street in Baltimore, Ohio. Starnes brandished a pistol at tellers while committing the bank robbery.
Starnes pleaded guilty in March to two counts of bank robbery and two counts of possessing a firearm in furtherance of a crime of violence. Agents arrested Starnes on October 4, 2017. He has been in custody since his arrest.
Bell also robbed the First Service Credit Union on East Main Street in Reynoldsburg on June 17, 2015 and brandished a pistol at tellers. He was sentenced in May and also received a term of imprisonment of 17 years.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Timothy Prichard, who is representing the United States in this case.
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Co-Owners of Miami Pain Management Clinic Plead Guilty to Conspiracy to Distribute Medically Unnecessary Opioid PrescriptionsRead the Press Release
The husband and wife co-owners of a Miami pain management clinic and a patient recruiter pleaded guilty today to conspiracy to distribute controlled substances for their participation in a scheme to unlawfully distribute thousands of pills of oxycodone.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office; Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Division made the announcement.
“The so-called ‘pain clinic’ owned by David Bosch and Tania Sanchez traded oxycodone prescriptions for cash, resulting in bogus, medically unnecessary prescriptions for at least 7,500 tablets of oxycodone,” said Assistant Attorney General Benczkowski. “Pill mills like this must be shut down. The Department of Justice is committed to reducing the staggering number of opioid overdoses in this country, and holding accountable all responsible parties, from owners of illegal clinics to patient recruiters, for their roles in this deadly scourge.”
David Bosch, 46, and Tania Sanchez, 47, of Hialeah, Florida, and Odalys Abreu, 45, of Miami, Florida, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. Magistrate Judge John O’Sullivan of the Southern District of Florida. Sentencing has been scheduled for Nov. 7 before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Ledif Acanda Machado, 39, who was charged in this conspiracy, remains a fugitive.
Bosch and Sanchez owned and operated East Medical Office Inc. (“East”), purportedly a pain management clinic located at 3778 West 12th Avenue, in Hialeah, Florida. Bosch incorporated the cash-only clinic in April 2017 and ran it with Sanchez until their arrests on May 3. Bosch and Sanchez hired a physician to be the purported medical doctor of East because they knew the physician would write prescriptions for oxycodone without regard to medical necessity. They paid the physician $125 for each prescription. They also conspired with patient recruiters and drug diverters to distribute oxycodone. Bosch introduced a purported patient recruiter to Machado and Abreu and informed the recruiter that the recruiter could make money by obtaining oxycodone pills from medically unnecessary prescriptions from East and then selling the pills. Additionally, Sanchez filled out fraudulent medical paperwork for purported patients.
Abreu recruited her own patients to visit East. Abreu brought to East at least 18 individuals who paid approximately $250 for each purported “medical consultation” in order to receive controlled substances, especially oxycodone, that were not medically necessary. Abreu’s recruits received prescriptions for at least 5,000 tablets of oxycodone 30 mg. Abreu also offered to purchase pills from another individual whom she believed was a patient recruiter at East.
The charges in an indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG, USSS, and the DEA. Trial Attorney Adam Yoffie of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program over $14 billion.
Charlotte Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Charlotte, North Carolina tax return preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
According to documents and information provided to the court, from 2011 through 2017, Shawanda Elmore owned and operated C and W Tax Professionals, a tax return preparation business in Charlotte, North Carolina. Elmore fraudulently sought to inflate her clients’ tax refunds by claiming false education credits, as well as false itemized deductions and businesses expenses. Elmore’s conduct caused a tax loss to the Internal Revenue Service (IRS) of over $500,000.
Elmore faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who are prosecuting the case.
Canadian Man Sentenced to Prison for Promoting Tax Fraud SchemeRead the Press Release
A Canadian man who led a multi-million dollar tax fraud conspiracy was sentenced to 60 months in prison today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents filed with the court and evidence introduced at a related trial, Daveanan Sookdeo, 46, formerly of Ontario, Canada, promoted a scheme in which Canadian citizens filed false tax returns with the Internal Revenue Service (IRS) that fraudulently sought nearly $10 million in income tax refunds. After the participants in the scheme received their tax refunds, they travelled to the United States where they opened bank accounts at various financial institutions to deposit the refund checks. The coconspirators then moved the money back to Canada by wire transfers and other means. The fraudulent tax filings resulted in actual losses to the government of over $3.5 million dollars.
Sookdeo profited from the scheme by charging his coconspirators an upfront fee for the false documents used in the scheme, as well as a percentage of any tax refunds obtained through the scheme. Sookdeo worked with Ronald Brekke, a coconspirator in California, to prepare fraudulent Forms 1099-OID that participants in the scheme attached to their false income tax returns. Sookdeo also personally filed nine false tax returns and obtained a tax refund check in the amount of $73,662.25.
Sookdeo was arrested in Trinidad and Tobago in 2017 and later extradited to the United States. In May 2018, Sookedo pleaded guilty to conspiracy to defraud the United States and to commit theft of government funds, and filing a false claim against the United States.
In addition to the term of imprisonment imposed, U.S. District Judge Frank P. Geraci Jr. ordered Sookdeo to serve a three year term of supervised release and pay restitution to the IRS in the amount of $3,553,303.
Sookdeo is the fifth Canadian citizen to be convicted, and the second to be sentenced, for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. Renee Jarvis, Timothy Johnston, and Jose Compuesto, also of Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds and are awaiting sentencing. Sookdeo’s California-based coconspirator, Ronald Brekke, is currently serving a 12-year prison sentence.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl and Assistant U.S. Attorney John Field of the Western District of New York, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts may be found on the division’s website.
Cabool Business Owner Pleads Guilty to Polluting Big Piney RiverRead the Press Release
SPRINGFIELD, Mo. – A Cabool, Mo., man pleaded guilty in federal court today to violating the Clean Water Act by dumping grease into the Big Piney River.
Brian Dale Fleming, 51, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of knowingly discharging a pollutant (used grease) into the Big Piney River without a permit.
Fleming is the owner of BF Byproducts, LLC, which is located in Cabool. BF Byproducts (formerly Fleming Recycling) is a grease-recycling business. BF Byproducts uses trucks to collect used grease from hundreds of restaurants in Missouri, Arkansas and elsewhere. The grease is transported to the Cabool facility, where it is recycled for resale and a profit.
Drivers who work for BF Byproducts collect the used grease for further processing at the Cabool facility where it is hosed from the collection trucks to a pit at the facility. From the pit, the grease is pumped to tanks located on the facility for further heating. The heating process separates the used grease; any grease that falls to the bottom of the heat processing tank is considered waste.
Because the waste was not needed, employees were instructed by Fleming to pump the waste grease down the hill from the main plant processing facility. This waste grease that was illegally pumped from BF Byproducts entered an unnamed tributary that leads into the Big Piney River.On April 2, 2015, the Environmental Protection Agency – Criminal Investigation Division (EPA-CID) executed a search warrant at BF Byproducts in conjunction with the Texas County, Mo., Sheriff's Department. The search warrant was issued after numerous residents near and adjacent to the grease processing facility complained of used grease being found in nearby ditches and tributaries leading to the Big Piney River.
Under the terms of today’s plea agreement, the government and Fleming recommend a fine of $15,000 and a restitution payment to the state of Missouri of $3,818. This recommendation is made in light of the fact that Fleming already served a year and a day of incarceration after being convicted in a separate criminal case, in which he participated (with his brother and co-defendant) in a conspiracy to steal spent cooking oil from restaurants and transport the stolen property across state lines to a grease recycling business in Tulsa, Okla. Additionally, there was a Superfund cleanup conducted at BF Byproducts, and today’s plea agreement anticipates that there may be costs associated with the cleanup that are separate and apart from this criminal proceeding. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Environmental Protection Agency – Criminal Investigation Division, the U.S. Coast Guard, the Missouri Department of Natural Resources, the Texas County, Mo., Sheriff’s Department and the Cabool, Mo., Police Department.
Buffalo Man Sentenced for His Role in Cocaine Conspiracy Which Operated Near A Buffalo SchoolRead 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 Cleophus Dentmond, aka “Face,” 28, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and distribution of, cocaine, was sentenced to serve six months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that the defendant conspired with Stevie Alejandro who operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School. Between May 2017 and October 18, 2017, the defendant participated in the conspiracy with co-defendants Alejandro, Aaron Hill, Gilbert Guzman, Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
During the conspiracy, Alejandro conducted negotiations with an undercover law enforcement officer regarding the sale, cost, amount, and delivery of cocaine. Then, Dentmond, or one of his co-conspirators, would conduct the drug transaction with the undercover officer. All proceeds went back to Alejandro. A total of 14 cocaine sales took place with the undercover officer.
Defendants Dentmond, Alejandro, Hill, and Guzman have all been convicted. Charges are pending against Catherine Ramos. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard
Brazilian Man Extradited from Switzerland for Defrauding Financial Institutions and Identity TheftRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that MARCOS ELIAS, a Brazilian citizen and resident, was extradited from Switzerland. In June 2018, ELIAS traveled to Switzerland and was arrested on the basis of a provisional arrest warrant for participating in a scheme to fraudulently obtain more than $750,000 at financial institutions headquartered in Manhattan using false representations and the stolen identities of Brazilian account holders at those institutions. ELIAS arrived in the Southern District of New York this afternoon, and will be presented today in Manhattan federal court before U.S. Magistrate Judge Barbara C. Moses.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Brazilian Marcos Elias stole over $750,000 from a Manhattan financial institution through a sophisticated wire fraud scheme involving a front company in Panama and a bank account in Luxembourg. Thanks to the extraordinary work of the FBI, today’s extradition shows that defendants who target American financial institutions from abroad will be subject to the long arm of American justice.”
FBI Assistant Director William F. Sweeney Jr. said: “People all over the world fear having their identities stolen by criminals who use the information to break the law. Pretending to be an employee of the account holder, the suspect allegedly stole hundreds of thousands of dollars that didn’t belong to him. He’s now been brought back to the United States to face justice, and return the money he stole.”
According to allegations in the Complaint and the Indictment unsealed today in Manhattan federal court[1]:
Since at least 2012, a Brazilian company (the “Client”) held an account at a financial institution headquartered in Manhattan (the “Firm”). Beginning in June 2014, ELIAS was in correspondence with a Senior Vice President at the Firm (the “Firm Employee”) regarding the Client’s account. The Firm Employee then began receiving emails purportedly from an employee of the Client (the “Client”) instructing the Firm Employee to transfer the Client’s money to a bank account in Luxembourg (the “Luxembourg Account”) that appeared to be in the name of the Client. Those emails were later determined to have been sent from an email address created the same day that was never used by the Client Employee and contained bogus wire instructions with the forged signature of the Client Employee. As a result of the false documentation provided to the Firm Employee, on July 15, 2014, the Firm transferred the approximately $752,000 from the Client’s account at the Firm to the Luxembourg Account (the “Fraudulent Transfer”), believing it to be a legitimate transfer requested by the Client.
In actuality, the Client did not authorize the Fraudulent Transfer, did not have any bank or brokerage accounts in Luxembourg, and did not send the emails to the Firm Employee requesting the transfer. Instead, the Luxembourg Account that received the Fraudulent Transfer was beneficially owned by ELIAS and opened in the name of a company formed in Panama the week prior to the Fraudulent Transfer. The Luxembourg Account was held in the name of a company containing the name of the Client in order to create the false impression that the Client’s funds were being transferred to an account beneficially owned by the Client when in fact such account was beneficially owned by ELIAS.
In addition to the scheme to defraud the Firm, ELIAS also attempted to fraudulently obtain money from a second financial institution headquartered in Manhattan using the name and purported passport of an account holder without authority.
* * *
ELIAS, 47, of São Paulo, Brazil, is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years; one count of wire fraud, which carries a maximum sentence of 30 years; one count of receipt of stolen property, which carries a maximum sentence of 10 years; and two counts of aggravated identity theft, which each carry a mandatory consecutive minimum sentence of two years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI. Mr. Berman also thanked Switzerland’s Federal Office of Justice and the Zurich Police (Kantonspolizei Zürich), and the U.S. Department of Justice’s Office of International Affairs, for their assistance with the extradition, and noted that the investigation is continuing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
The charges contained in the Complaint and Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment and their description set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bay Area Aviators Indicted for Making False StatementsRead the Press Release
SAN FRANCISCO - A federal grand jury indicted four airline pilots for making false statements to the government in Federal Aviation Administration (FAA) forms, announced United States Attorney Alex G. Tse; U.S. Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, Special Agent in Charge James Wahleithner; and Department of Transportation Office of Inspector General Regional Special Agent in Charge Jeffrey Dubsick. In each case, the pilots are accused of submitting forms to the FAA that deny the existence of medical conditions for which the pilots were receiving disability benefits from the U.S. Department of Veterans Affairs.
The defendants, Gregory James Chrisman, 57, of Burlingame, Calif.; Nicholas King Beyer, 32, of Discovery Bay, Calif.; Adam Roger Asleson, 39, of Peachtree, Ga; and Walker Trent Grant, 36, of Fortuna, Calif., were charged in four separate indictments. In each indictment, the defendant is charged with making at least one false statement in violation of 18 U.S.C. § 1001(a)(2), as follows:
Defendant
Charges
Allegations
Adam Roger Asleson
Making a false statement, in violation of 18 U.S.C. § 1001(a)(2)
(1 count)
Allegedly stated on an FAA Form 8500-8:
(i) that he did not suffer from any mental disorders including depression or anxiety despite having represented to the VA that he suffered from major depressive disorder.
(ii) that he received medical disability benefits for knee strain and tinnitus despite having received service-related medical disability benefits from the VA for a major depressive disorder, and not for the conditions indicated on the Form 8500-8.
Walker Trent Grant
Making false statements, in violation of 18 U.S.C. § 1001(a)(2)
(2 counts)
Allegedly stated on an FAA Form 8500-8:
(i) that he did not suffer from and had never been diagnosed with “frequent or severe headaches” despite having represented to the VA that he suffered from tension headaches.
(ii) that he did not receive medical disability benefits, despite having received service-related medical disability benefits from the VA, including benefits related to his tension headaches since 2011.
Nicholas King Beyer
Making false statements, in violation of 18 U.S.C. § 1001(a)(2)
(2 counts)
18 U.S.C. § 1001(a)(1) – Falsify, Conceal, or Cover Up by Trick, Scheme, or Device a Material Fact
(2 counts)
Allegedly stated on an FAA Form 8500-8:
(i) that he did not have and had never had a mental disorder of any sort despite having represented to the VA that he had a major depressive disorder and having received medical disability benefits as a result of that condition.
(ii) he was receiving VA medical disability benefits only because of a knee and back injuries (and not for a major depressive disorder).
Gregory James Chrisman
Making false statements,
in violation of 18 U.S.C. § 1001(a)(2)
(2 counts)
Allegedly stated on an FAA Form 8500-8:
(i) he did not have and had never had a mental disorder of any sort despite having represented to the VA that he had posttraumatic stress disorder and having received medical disability benefits as a result of that condition.
(ii) that he was not receiving and has never received medical disability benefits despite having received service-related medical disability benefits from the VA since 2011.
Each defendant was arraigned and released on a $10,000 bond, and each was required to surrender his passport. Asleson will make his next appearance on October 3, 2018, before the Honorable Charles R. Breyer, U.S. District Judge. Grant will make his next appearance on September 19, 2018, before the Honorable Edward Chen, U.S. District Judge. Beyer will make his next appearance before Judge Breyer on October 3, 2018. Chrisman will make his next appearance on September 25, 2018, before the Honorable Vince Chhabria, United States 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 defendants face a maximum sentence of 5 years imprisonment and a fine of $250,000, plus restitution for each violation of 18 U.S.C. § 1001(a)(2) and each violation of 18 U.S.C. § 1001(a)(1). 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 Sailaja M. Paidipaty and Nicholas J. Walsh are prosecuting the four cases with the assistance of Marina Ponomarchuk. The prosecutions are the result of an investigation by the Department of Transportation Office of Inspector General and the Department of Veterans Affairs, Office of Inspector General.
Attorney General Jeff Sessions Welcomes Joseph H. Hunt as Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Jeff Sessions welcomed the confirmation of Joseph H. (Jody) Hunt as the Assistant Attorney General of the Department of Justice’s Civil Division.
“I applaud the Senate for the confirmation of Jody Hunt,” said Attorney General Jeff Sessions. “His Department of Justice career extends for nearly 20 years. He has served as Director of the Federal Programs Branch for 15 years, a part of the Civil Division. This branch litigates some of the Justice Department’s most challenging cases at the trial level. I am deeply indebted to Jody for his outstanding service as my Chief of Staff. He is a man of great integrity, energy, and legal skill. He is uniquely qualified to lead the Department’s largest litigation division, where I am confident he will ably advocate this administration’s legal agenda.”
The Civil Division, which functions as the Government’s law firm, is the largest litigating component of the U.S. Department of Justice. Each year, the Civil Division represents the United States and its agencies, Members of Congress, Cabinet Officers, and other federal employees in tens of thousands of cases. In total, the Civil Division litigates matters on behalf of over 100 different federal agencies.
Most recently, Hunt served as Senior Advisor in the Office of Legal Policy following his service as Chief of Staff and Senior Counselor to Attorney General Sessions. Prior to this appointment, he served for fifteen years as Director of the Federal Programs Branch in the Civil Division, where he supervised the Government’s litigation efforts with respect to numerous legal challenges in federal district courts. His litigation responsibilities have concerned a wide range of matters on behalf of many executive agencies, including the Department of State, the Department of Defense, the Department of the Treasury, and components of the United States Intelligence Community. Hunt is a past recipient of the Attorney General’s Distinguished Service Award.
Prior to joining federal service in 1999, Hunt worked as a lawyer in private practice. Hunt clerked for Judge James H. Hancock of the U.S. District Court for the Northern District of Alabama following his graduation in 1989 from Columbia School of Law.
Armed Crack Cocaine Dealer Sentenced to over Six Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry Lee Adams today sentenced Maurice Sanders (27, Jacksonville) to six years and one day in federal prison for possessing with the intent to sell crack cocaine and for possessing a firearm in furtherance of a drug trafficking crime. Sanders had pleaded guilty on May 18, 2018.
According to court documents, the Jacksonville Sheriff’s Office (JSO) conducted a citywide buy-bust operation on September 21, 2017. During the operation, a JSO detective observed Sanders pull a pill bottle from his pocket and give three different individuals crack cocaine in exchange for money. When Sanders was searched following his arrest, a JSO officer found a loaded .38 revolver in his pocket.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Ashley Washington.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Architect Sentenced to Federal Prison for Defrauding Payless ShoesRead the Press Release
TOPEKA, KAN. – An architect who worked for Payless ShoeSource was sentenced today to 21 months in federal prison and ordered to pay more than $425,000 in restitution for defrauding the company, U.S. Attorney Stephen McAllister said.
Manuel Francisco Ruiz-Lacayo, 38, Lawrence, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred while he worked for Payless as a project manager for store planning. His work included designing exteriors and interior floor plans for new stores in Central and South America. He coordinated with Ordonez Architecture and Construction in Bogata, Columbia, and Christian Heins Finkenstaedt in Barranquilla, Columbia, on the projects.
Without the knowledge of his employer, Ruiz-Lacayo told the contractors that 3D renderings of storefronts were required for all projects. He told them to use a firm he said was located in Costa Rica. In fact, the address he gave them was his mother’s and no renderings were produced. Ruiz-Lacayo submitted invoices from the fictitious firm to Payless for payment.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Lawrence Marquez, 39, of Albuquerque, N.M., pled guilty today in federal court to heroin trafficking and firearms charges. Marquez entered his guilty plea under a plea agreement that recommends that he be sentenced to 88 months of imprisonment followed by a term of supervised release to be determined by the court.
Marquez and his co-defendants, Angela Marquez, 28, and Jesus Valdez, 38, both of Albuquerque, were charged in a six-count indictment filed on Dec. 6, 2017, with drug trafficking and firearms offenses. The indictment charged Marquez, Angela Marquez and Valdez with participating in a heroin trafficking conspiracy in Feb. 2017, and distributing heroin on Feb. 23, 2017. It also charged Marquez and Valdez with distributing heroin on Feb. 23, 2017; Marquez and Angela Marquez with possessing firearms in furtherance of a drug trafficking crime on Feb. 23, 2017; and Marquez was charged with being a felon in possession of a firearm on Feb, 23, 2017. Marquez was prohibited from possessing firearms or ammunition because of his status as a convicted felon. According to the indictment, the defendants committed offenses in Bernalillo County, N.M.
During today’s proceedings, Marquez pled guilty to distributing heroin, and using and carrying a firearm during and in relation to a drug trafficking crime. In entering the guilty plea, Marquez admitted that he was armed with a firearm when he sold heroin to a person he later learned was an undercover law enforcement agent on Feb. 23, 2017.
Valdez pled guilty on April 24, 2018, to distributing heroin and methamphetamine. In entering his guilty plea, Valdez admitted distributing heroin to an undercover law enforcement agent on Feb. 23, 2017, and approximately 232 grams of methamphetamine to an undercover law enforcement agent on Dec. 7, 2017. Valdez was sentenced on Aug. 20, 2018, to 46 months in prison followed by three years of supervised release.
Angela Marquez has entered a not guilty plea to the charges in the indictment and is pending trial, which is scheduled for Sept. 2018. Charges in indictments and criminal complaints are only accusations. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque offices of the DEA and Homeland Security Investigations. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Alachua County Man Sentenced to 327 Months in Prison for Sex Trafficking by Force, Fraud, and CooercionRead the Press Release
GAINESVILLE, FLORIDA – Arthur Larange Lee Jr., 35, of Gainesville, Florida, was sentenced yesterday in the U.S. District Court in Gainesville to 327 months in prison for sex trafficking of an adult, and 60 months each for two counts of use of interstate commerce to commit prostitution. Each count is to be served concurrently. Lee was convicted following a jury trial on February 7, 2018. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Lee abducted a young woman from the parking lot of a Gainesville church where she was attending a Narcotics Anonymous meeting. After taking the victim’s phone, he ordered her to drive to a nearby hotel where he took photographs of her for use in a Backpage.com advertisement. Lee told the victim he would “break her in,” after which he raped her, burned her, and committed other acts of violence against her. Lee then fed the victim small amounts of cocaine and instructed her that she had to pay off her “debt.” Over the span of two days, Lee forced and coerced the victim to engage in sexual acts with numerous “johns.” He kept all the money derived from the sex acts that took place at local hotels and private residences. While at one hotel, the victim texted a “john” who agreed to help her escape by picking her up outside the hotel. The victim then fled with Lee’s phone and called law enforcement officers. Responding officers were able to quickly locate and arrest Lee, who was still inside the hotel.
U.S. Attorney Canova said: “This prison sentence sends a strong message to those who would enslave vulnerable people for profit using violent and manipulative tactics to keep their victims silent. We are working as a team in Northern Florida and throughout the country to fight the evil of human trafficking and bring healing and hope to the survivors. Some of the many partners involved are prosecutors, law enforcement agencies, victim services, local coalitions, and community members.”
Sheriff Sadie Darnell said: “Human trafficking is a horrible crime which causes life-long harm to the victim survivor(s). I applaud the tenacious work by our detectives and the cooperation with the U.S. Attorney in bringing justice to this case. We will continue to work tirelessly to stop this in Alachua County.”
“The trafficking of any person is a heinous crime that is considered modern-day slavery,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI and our law enforcement partners are on the front lines of the fight against sex trafficking, and are working to bring hope to victims. As this case demonstrates, we encourage survivors to come forward and engage with law enforcement so we can hold accountable those responsible.”
The case was investigated by the Alachua County Sheriff’s Office and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Frank Williams.
The United States 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 United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
27 August 2018
“Fleshlight” Discovery leads to Spring Man’s Conviction on Three Child Pornography ChargesRead the Press Release
HOUSTON – A federal jury has convicted a 37-year-old Spring resident of distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours before convicting Mark Adair following a two-day trial.
The jury heard that Adair had been uploading and downloading child pornography via peer-to-peer software. Authorities has executed a search warrant at his residence which resulted in the discovery of computer media and external digital storage devices. Forensic analysis revealed more than 26,000 child pornography images and 490 child pornography videos.
At trial, the jury learned Adair was receiving child pornography and moving it from his computer to a thumb drive hours before authorities executed the search warrant. Adair had used peer-to-peer software on 30 separate days between December 2015 and February 2016 to receive and distribute child pornography images and videos.
The defense attempted to convince the jury there were other people in the home that could have been the source of the child pornography. However, the government presented evidence including photographs that demonstrated Adair lived alone.
Further, all the devices containing the child pornography were found in the living room. Three of the devices were located on the coffee table next to a tube of personal sexual lubricant. A sexual stimulation device known as a “fleshlight” was also fully visible, next to the sink. A “fleshlight” is a sexual stimulation device disguised as a flashlight but, when opened, reveals a rubber insert modeled after a vagina.
The jury heard arguments that had someone lived with anyone else, these items would likely not be out in the open for anyone to see.
U.S. District Judge Keith P. Ellison presided over the trial and set sentencing for Nov. 14, 2018. Adair has been and will remain in custody pending that hearing.
At that time, Adair faces a minimum of five and up to 20 year for the distribution and receipt of child pornography as well as a maximum of 10 years for the possession charge. Additionally, the charges are punishable by a $250,000 possible maximum fine.
The FBI conducted the investigation.
Assistant U.S. Attorneys Kimberly Ann Bulger Leo and Sherri L. Zack are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Wilkes-Barre Man Pleads Guilty to Computer Hacking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Justin Bodnar, age 29, of Wilkes-Barre, Pennsylvania, pleaded guilty on August 24, 2018, before U.S. District Court Senior Judge James M. Munley to the charge of unauthorized access to a computer.
According to United States Attorney David J. Freed, Bodnar admitted that he “hacked” into a computer belonging to another individual and thereby obtained the e-mails of that individual. Bodnar then offered to sell copies of the e-mails to a third person. As a result of that conduct, Bodnar was indicted by a grand jury in December 2016.
Judge Munley ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The matter was investigated the Federal Bureau of Investigation (FBI). Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
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 is up to five 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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Wetzel County residents and a Columbus man admit to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Three New Martinsville, West Virginia residents and a Columbus, Ohio man have admitted to his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Alex King, age 33, and Matthew Jackson, also known as “Matt-Matt,” age 22, each pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” King and Jackson admitted to working with others to distribute heroin, cocaine, and methamphetamine from 2016 to April 2018 in Wetzel County and elsewhere.
Todd Jones, age 55, and Cynthia Henries, age 47, each pled guilty to “Aiding and Abetting the Distribution of Methamphetamine.” Jones and Henries admitted to selling methamphetamine in March 2017 in Wetzel County.
All four defendants each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided over the King, Jones, and Henries cases.
U.S. Magistrate Judge James E. Seibert presided over the Jackson case.
United States Attorney Announces the Appointment of Three New Federal ProsecutorsRead the Press Release
U.S. Attorney Erin Nealy Cox today announced the appointment of three new Assistant United States Attorneys: Ryan Raybould, assigned to the Dallas Criminal Division; Sarah Delaney, assigned to the Dallas Civil Division; and Robert Boudreau, assigned to the Fort Worth Criminal Division.
All three prosecutors were sworn in Monday morning before Chief U.S. District Judge Barbara M.G. Lynn.
A graduate of Yale University and Notre Dame Law School, Mr. Raybould today returns to the same district where he clerked for U.S. District Judge Reed O’Connor five years ago. In the intervening years, he served as an Assistant U.S. Attorney in the Middle District of Tennessee, where he prosecuted white collar crime cases, and before that as a prosecutor in the Justice Department’s Criminal Enforcement Section – Tax Division. Before beginning his legal career, Mr. Raybould spent four years as a professional soccer player, and was drafted by the Kansas City Wizards in 2005.
Ms. Delaney, who earned degrees from Georgetown University and the University of Virginia School of Law, joins the Northern District of Texas from the litigation section of Snell & Wilmer in Phoenix, Arizona. There, she handled a wide range of matters, from regulatory affairs and international trade to product liability and healthcare matters.
Mr. Boudreau joins the Northern District of Texas from the Justice Department’s Criminal Enforcement Section – Tax Division in Washington, DC, where he investigated and prosecuted crimes including tax evasion, investment fraud, identity theft, healthcare fraud, and public corruption. A graduate of the University at Albany and Boston University School of Law, he also served as a judge advocate in the U.S. Marine Corps, where he represented a Marine court-martialed for a high-profile war crime.
“We’re thrilled to welcome these three AUSAs to our hard-hitting teams in Fort Worth and Dallas,” said Nealy Cox. “I’m confident they will serve the cause of justice with honor.”
Union County, New Jersey, Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today and appeared in federal court on charges of distribution of images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Christopher Gardiner, 35, of Cranford, New Jersey, with one count of distribution of child pornography and one count of possession of child pornography. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Between March 2018 and June 2018, Gardiner allegedly engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. In a chatroom, Gardiner publicly posted multiple videos depicting the sexual abuse of children and sent similar videos to the undercover agent directly. The complaint also alleges that law enforcement discovered numerous videos of child pornography on Gardiner’s electronic devices when he was arrested at his home.
The charge of distribution of child pornography, for a repeat offender (Gardiner was previously convicted of endangering the welfare of a child and distribution of child pornography in Union County in 2007), carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The charge of possession of child pornography for a repeat offender carries a mandatory minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender (Newark)
Two men charged federally for possession of stolen firearmsRead the Press Release
Guns alleged to have been stolen from Cloverdale gun store
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that two men have been federally charged with possession of a stolen firearm. Terry W. Morris II, 18, Cloverdale, and Austin G. Greene, 19, Bedford, were arrested last week and remain in the custody of the United States Marshal’s Service.
“Possessing stolen firearms is a crime we take very seriously in this office,” said Minkler. “Those who choose to illegally sell firearms, introducing them to the underground market and contributing to the violence in our communities should prepare to face federal prosecution.”
On July 31, 2018, ATF agents were contacted by the Cloverdale Police Department and informed of a burglary that occurred recently at Guy’s Gun Locker in Cloverdale, Indiana. Entry was made by breaking a hole through the south wall of the business and over 35 firearms were stolen.
Law enforcement quickly learned that Greene and Morris were in possession of some of the stolen firearms and made covert firearm purchases from both defendants. In each purchase, the guns are alleged to have been stolen in the Guy’s Gun Locker burglary.
This case is being investigated by ATF, and the Cloverdale Police Department.
“ATF’s core mission is reducing violent gun crime in our communities,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “Those who traffic stolen firearms are enabling the spread of violence and are criminals just like those who obtain the firearms from them. We at ATF are committed to working with our federal, state, and local partners to follow the gun and stem the destruction stolen firearms cause.”
“The citizens of Cloverdale and the Cloverdale Police Department are thankful for the outstanding support and teamwork provided by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Indiana State Police in the apprehension of these suspects in connection with the burglary at Guy’s Gun Locker,” said Cloverdale Town Marshal Steven L. Hibler. “These agencies continue working with us in an effort to recover all the firearms stolen and get these dangerous weapons out of the hands of people not ordinarily allowed to possess such weapons.”
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant United States Attorney Pamela Domash. Each defendant faces up to ten years’ imprisonment if convicted.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who illegally traffic firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
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Two Former CCAD Supervisors Arrested for Falsifying Helicopter Blade Test RecordsRead the Press Release
CORPUS CHRISTI, Texas – Two Robstown residents have been taken into custody on charges of conspiracy and falsifying records related to aircraft parts, announced U.S. Attorney Ryan K. Patrick.
Albert Flores, 57, of Corpus Christi, and Samuel Escareno, 54, made their initial appearances before U.S. Magistrate Judge Judge B. Janice Ellington today, at which time they were ordered into custody pending a detention hearing set for Aug. 30 at 9:00 a.m. before Judge Ellington.
A federal grand jury indicted Flores and Escareno, both former supervisors at the Corpus Christi Army Depot, on one count each of conspiracy and falsifying records related to aircraft parts.
The indictment alleges Flores and Escareno did aid, abet, council, command and induce others to make false entries and certifications on UH-60 Black Hawk helicopter main rotor blade dynamic balance data sheets. The defendants allegedly did so in order for nonconforming rotor blades to appear to meet specifications when they actually did not.
If convicted, Flores and Escareno both face a sentence of up to 10 years in federal prison and a fine of up to $250,000.
The Department of Army’s Criminal Investigation Division – Major Procurement Fraud Unit conducted the investigation. The Robstown Police Department assisted in the arrest. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Two Convicted at Trial on Cocaine ChargesRead the Press Release
PITTSBURGH, PA – Two Southwestern Pennsylvania residents have been convicted in federal court for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Damien Gibson, age 44, formerly of McKeesport, Pennsylvania was convicted by a federal jury of conspiracy to distribute and possess with intent to distribute 500 grams or less of cocaine. Keith Thomas, age 33, Uniontown, Pennsylvania was convicted of conspiracy to distribute and possess with intent to distribute 500 grams or less of cocaine, and one count of possession with intent to distribute cocaine. The charges in the indictment arose from a court authorized Title III wiretap investigation. Jury selection began on August 20, 2018. United States District Court Judge Cathy Bissoon presided over the trial.
The jury was advised that both defendants engaged in a drug conspiracy that stretched from Fayette County to Allegheny County. The cocaine source of supply was Domin Guerrero-Guerrero, a former resident of New York City.
Judge Bissoon scheduled sentencing for January 16, 2018. The law provides for a maximum total sentence of 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Judge Bissoon ordered that both defendants be detained pending sentencing.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, the Allegheny County Sheriff’s Department, and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two Biddeford, Maine, Men Indicted for Hate Crime AssaultRead the Press Release
Acting Assistant Attorney General John Gore and United States Attorney Halsey B. Frank today announced that Maurice Diggins, 34, and Dusty Leo, 27, both of Biddeford, Maine, were indicted by a federal grand jury in the District of Maine for conspiracy to violate and for violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, by assaulting an African-American man.
According to the indictment, on about April 15, Diggins and Leo willfully caused bodily injury to an African-American man in the parking lot of a 7-Eleven convenience store in Biddeford, targeting the victim because of his race. The indictment alleges that the defendants drove a truck into the 7-Eleven parking lot at a high rate of speed as the victim walked across the lot. Diggins got out of the truck, repeatedly called the victim a racial slur, blocked his entry into the store, and circled him, turning the victim’s back to the truck. According to the indictment, Leo got out of the truck, walked up behind the victim, and struck him forcefully in the head. It is alleged that as the victim ran away, the defendants followed him in the truck, continuing to shout racial epithets.
If convicted, Diggins and Leo face up to 10 years in prison and a $250,000 fine on the hate crime charge, and five years in prison and a $250,000 fine on the conspiracy charge.
Diggins and Leo were arrested on Friday and are scheduled to make their initial appearances today in U.S. District Court in Portland.
The case was investigated by the Biddeford Police Department and the FBI. It is being prosecuted by Assistant United States Attorney Sheila W. Sawyer of the District of Maine and Trial Attorney Timothy Visser of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Two Biddeford Men Indicted for Hate Crime AssaultRead the Press Release
Portland, Maine: Acting Assistant Attorney General John Gore and United States Attorney Halsey B. Frank today announced that Maurice Diggins, 34, and Dusty Leo, 27, both of Biddeford, Maine, were indicted by a federal grand jury in the District of Maine for conspiracy to violate and for violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, by assaulting an African-American man.
According to the indictment, on about April 15, Diggins and Leo willfully caused bodily injury to an African-American man in the parking lot of a 7-Eleven convenience store in Biddeford, targeting the victim because of his race. The indictment alleges that the defendants drove a truck into the 7-Eleven parking lot at a high rate of speed as the victim walked across the lot. Diggins got out of the truck, repeatedly called the victim a racial slur, blocked his entry into the store, and circled him, turning the victim’s back to the truck. According to the indictment, Leo got out of the truck, walked up behind the victim, and struck him forcefully in the head. It is alleged that as the victim ran away, the defendants followed him in the truck, continuing to shout racial epithets.
If convicted, Diggins and Leo face up to 10 years in prison and a $250,000 fine on the hate crime charge, and five years in prison and a $250,000 fine on the conspiracy charge.
Diggins and Leo were arrested on Friday and made their initial appearances in U.S. District Court in Portland today.
The case was investigated by the Biddeford Police Department and the FBI. It is being prosecuted by Assistant United States Attorney Sheila W. Sawyer of the District of Maine and Trial Attorney Timothy Visser of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Thousand Oaks Man Sentenced to Nearly Five Years in Federal Prison in $11 Million Bank Fraud CaseRead the Press Release
LOS ANGELES – A Thousand Oaks man who fraudulently obtained more than $11 million in loans he used to purchase a gas station and two car washes was sentenced today to nearly five years in federal prison.
Mohsen Hass, 60, was sentenced to 57 months in prison by United States District Judge Dale S. Fischer.
In addition to the prison term, Judge Fischer ordered Hass to pay $5,737,585 in restitution to the victim financial institutions.
Hass, who is also known as “Mike Hass” and “Mohsen Hassanshahi,” pleaded guilty in March to one count of making false statements to a financial institution
Hass purchased the businesses after receiving loans that were approved after he submitted loan applications in 2006 and 2007 that contained false information, including fake assets Hass claimed he was using for a down payment. Hass used the proceeds of the loans to purchase a gas station in Santa Paula and two car washes in South Los Angeles. The lenders suffered losses when Hass defaulted on the loans. Hass was initially charged in 2014, but he fled to Iran for nearly four years before surrendering in February.
At least one bank insider participated in the scheme and allowed loans to go through despite knowing about the false information. Ataollah Aminpour has pleaded guilty and is pending sentencing.
Hass “obtained multi-million dollar businesses to run without putting his own money at risk and allowing at least one bank insider to profit,” prosecutors wrote in a sentencing memorandum filed in relation to today’s sentencing.
The victims in this case include the Federal Deposit Insurance Corporation, which served as receiver for one of the financial institutions, Mirae Bank, which went into receivership as a result of the fraudulent conduct involving Aminpour and Hass.
This matter was investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of the Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Office of the Special Inspector General of the Troubled Asset Relief Program.
The case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Texas National Guard Soldier Arrested for Stealing Meth from CBPRead the Press Release
LAREDO, Texas – Federal charges have been filed against a Texas Army National Guardsman for stealing approximately 1.5 kilograms of methamphetamine from Customs and Border Protection (CBP), announced U.S. Attorney Ryan K. Patrick.
Law enforcement arrested Edwin Baez, 20, of Cypress, Friday following the filing of sealed criminal complaint. He made his initial appearance in Laredo federal court before U.S. Magistrate Judge Diana Song Quiroga today, at which time he was ordered detained pending a detention hearing set for Aug. 31 at 10:00.
Baez, a private with a Texas Army National Guard Unit stationed in Houston, is charged with theft of government property, conspiracy and possession with intent to distribute approximately 1.5 kilograms of methamphetamine.
At the time of the alleged offense, Baez was deployed to Laredo to assist CBP at the World Trade Bridge by providing mission enhancing capabilities such as surveillance, reconnaissance, operational and logistics support.
According to the charge, on Aug. 1, 2018, Baez removed a picture frame he knew contained bundles methamphetamine that were hidden within it. He allegedly took the frame to a CBP dumpster for disposal, later returning to retrieve some of the methamphetamine. The criminal complaint alleges he took the drugs to his hotel room with plans to consume some of it and sell the remainder.
He was arrested following his release from the hospital for a drug-induced emergency.
The total value of the methamphetamine allegedly totals approximately $12,000.
If convicted of the drug charges, Baez faces a minimum of 10 years and up to life in federal prison. He also faces up to 10 years if convicted of theft of government property.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of CBP. Supervisory Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Saline County Resident Sentenced to 13 Years Behind Bars for Federal Methamphetamine OffensesRead the Press Release
Krystle R. Sands, 33, of Harrisburg, Illinois, was sentenced today to 156 months in federal prison for methamphetamine offenses, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced. Sands previously pled guilty to a two-count indictment charging her with conspiracy to distribute more than 50 grams of methamphetamine and conspiracy to possess pseudoephedrine knowing that it would be used to manufacture methamphetamine. In addition to her prison term, Sands was ordered to serve eight years on supervised release and pay a $400 fine.
Evidence at the plea and sentencing established that, between January 2015 and April 2017, Sands was involved with co-defendant Robert Humphrey and others in the manufacture and distribution of methamphetamine in Jackson, Williamson, and Saline Counties. At sentencing, the district judge found that Sands was responsible for the possession of over 200 grams of pseudoephedrine and the distribution of more than a kilogram of "ice." Ice is methamphetamine which has a purity level of at least 80%. Co-defendant Humphrey was previously sentenced to 200 months incarceration for his role in the methamphetamine offenses.
The investigation was conducted by the Jackson County Sheriff’s Office and Elkville Police Department. The Southern Illinois Drug Task Force and Jackson County States Attorney’s Office also assisted in the investigation.
Putnam County Man Sentenced to Six Years in Prison for Receiving Child PornographyRead the Press Release
HUNTINGTON, W.Va. - A Putnam County man was sentenced today to six years in prison for a child pornography crime, announced United States Attorney Mike Stuart. Stephen Craig Sluss, 59, of Scott Depot, West Virginia, previously pleaded guilty to receiving child pornography. United States District Court Judge Robert C. Chambers imposed the sentence. Sluss was ordered to serve 15 years on federal supervised release after completion of his prison term, and will also be required to register as a sex offender. Sluss was also ordered to pay a special assessment of $5,000.
“These are violent, heinous, disgusting crimes,” said United States Attorney Mike Stuart. “Child sexual exploitation investigations and prosecutions are a priority for my office. Sluss’s sentence reflects the seriousness of these crimes. I greatly appreciate the excellent and hard work of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the United States Department of Homeland Security - Homeland Security Investigations.”
Sluss admitted that on April 1, 2017, he received videos of prepubescent minors engaged in sex acts. The videos were received by Sluss via the Internet. The investigation revealed that Sluss was using a web-based chatting service to access and download child pornography, Sluss further admitted to possessing over 600 images and videos of minors engaged in sex acts, and that some of those images involved sadistic conduct.
Assistant United States Attorneys Lisa G. Johnston and Jennifer Rada Herrald handled the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Project Huntington Update: Ninth Operation Saigon Sunset Defendant Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced that another defendant indicted for his role in a major, multi-state heroin and fentanyl distribution network pled guilty today to a federal drug conspiracy charge. Lonnie Berry II, 43, of Huntington, entered his guilty plea to the indictment charging him with conspiracy to distribute heroin. To date, 9 of the 15 defendants that were charged in the federal indictment in connection with the Peterson drug trafficking organization have entered guilty pleas. Stuart commended the joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Huntington has paid too high a price due to the chaos and despair wrought by out of state drug dealers,” said United States Attorney Mike Stuart. “Another guilty plea by a defendant in the Peterson DTO that was taken down in Operation Saigon Sunset. We arrested them. We detained them behind bars pending trial. And now they are staying behind bars and off our streets. It is easy to believe there is a revolving door – arrest them today and they are on the streets tomorrow – but that is simply not true in federal cases. We are working hard with our local, state and federal partners to ensure a safer and more vibrant City of Huntington.”
Berry admitted that between October 2017 and April 2018 he conspired with Willie Peterson, also known as “Chill,” and Manget Peterson, also known as “Money,” to distribute heroin in Huntington. Berry admitted that he sold heroin for Manget Peterson on a daily basis in Huntington. Berry faces up to 20 years in federal prison when he is sentenced on December 10, 2018.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Post Office Supervisor Sentenced for Theft of MailRead the Press Release
KANSAS CITY, KAN. – A woman who worked as a supervisor in the post office in Shawnee Mission was sentenced Monday for stealing mail, U.S. Attorney Stephen McAllister said.
Stacey L. Kampfer, 40, Kansas City, Kan., was sentenced to a year on probation and ordered to pay about $785 in restitution.
Kampfer pleaded guilty to one count of mail theft. In her plea, she admitted that while she was employed as a supervisor of customer services she opened mail and stole gift cards and debit cards. Investigators identified 214 people whose mail was opened and property stolen.
McAllister commended the U.S. Postal Service-Office of Inspector General and Assistant U.S. Attorney Tris Hunt for their work on the case.
Pittsburgh Woman Sentenced to 4 Years in Federal Prison for Participating in Painkiller Distribution NetworkRead the Press Release
PITTSBURGH, PA – An Allegheny County resident has been sentenced in federal court to 48 months on her conviction of conspiring to possess and distribute opiate painkillers, oxycodone and oxymorphone, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Nicole Miller, age 31, of Pittsburgh, Pennsylvania.
According to information presented to the court, Miller participated in a criminal network of drug dealers who obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Miller recruited customers from a drug rehabilitation clinic, she arranged for sales of drugs to users, she arranged for payments to suppliers, she arranged for purchases from suppliers, and she performed various other functions in furtherance of the drug trafficking conspiracy. She was on probation for two different offenses and on bond for a third when she committed the offenses at issue in this case. While her case was pending, Miller initiated a telephone call to a charged co-conspirator, William Richardson, in which Miller stated that she had identified the residence and vehicle of a Pittsburgh Police Officer who had participated in the investigation of criminal activity at the residence of Richardson and Miller. Miller was aware from that investigation that Richardson had multiple firearms, and in the intercepted phone call, Richardson made statements fairly constituting direct threats of physical violence as to the Police Officer.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, Pennsylvania Office of the Attorney General, Pittsburgh Bureau of Police, and Allegheny County Police Department for the investigation leading to the successful prosecution of Miller.
Pembroke Medical Doctor Sentenced to 20 Years for Unlawfully Distributing OxycodoneRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that, DONOVAN DAVE DIXON, 51 of Fayetteville, North Carolina, was sentenced to 240 months of imprisonment followed by 3 years of supervised release by Chief United States District Judge James C. Dever III. DIXON, who was a licensed medical doctor at the time of the offense, was convicted after a four-day trial of Conspiracy to Unlawfully Distribute Oxycodone and twenty (20) counts of Unlawful Distribution of Oxycodone outside the scope of professional practice and not for a legitimate medical purpose.
The evidence at trial showed that DIXON was a licensed medical doctor who operated a family medical practice in Pembroke, NC from 2012 until April 6, 2015, when his ability to prescribe controlled substances was limited by the North Carolina Medical Board. The Drug Enforcement Administration’s Tactical Diversion Squad based in Charlotte began investigating DIXON when they noticed that four (4) of the top ten (10) oxycodone prescribing pharmacies for the State of North Carolina were located in the Lumberton, NC area. The local pharmacists as well as local and state law enforcement identified DIXON as the likely cause.
At trial, the evidence showed that DIXON prescribed high strength, high dosage amounts of oxycodone with little or no medical examination. Multiple witnesses testified that they had never even met DIXON despite the fact that hundreds of prescriptions had been issued in their name. A local drug dealer testified that DIXON wrote prescriptions for oxycodone in the name of persons that he provided to DIXON in exchange for cash. The prescription drugs were then sold on the streets of Robeson County by the drug dealer.
Mr. Higdon stated: “The United States Department of Justice is aggressively moving against all individuals who illegally distribute opioids and prescription drugs. Whether those illegally pushing these drugs are on the street or operating from a doctor’s office, we will pursue you, charge you and convict you for the crimes that are putting our citizens at risk.”
The investigation of this case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistance was also provided by the North Carolina State Bureau of Investigation, Diversion and Environmental Crime Unit, the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Robeson County Sheriff’s Office, the Fayetteville Police Department, and the North Carolina Medical Board. Assistant United States Attorney Lawrence J. Cameron represented the government in this case.
For more information about the statutes, rules, and policies governing licensed medical professionals and pharmacists when prescribing opioids, please visit the websites of the Drug Enforcement Administration’s Diversion Control Division (www.deadiversion.usdoj.gov), the North Carolina Medical Board (www.ncmedboard.org), and the North Carolina Board of Pharmacy (www.ncbop.org).
Ohio Man Sentenced to 63 Months in Prison for Renewable Fuel FraudRead the Press Release
COLUMBUS, Ohio – The owner of a company that bought and sold renewable fuel and fuel credits was sentenced to serve 63 months in prison to be followed by a three year term of supervised release and $26,244,437.06 in restitution for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel.
The sentencing of defendant Gregory Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio and was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and Special Agent in Charge Grant Mendenhall of the Federal Bureau of Investigation’s Indianapolis Division.
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes,” said Acting Assistant Attorney General Wood. “This sentencing serves as a powerful deterrent to those who would consider participating in similar schemes in the future. We applaud the work of the DOJ, EPA, and IRS law enforcement team that obtained justice in this case.”
“The outcome of this case is a great achievement,” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance. “The defendant participated in a complex scheme to defraud his clients and the United States Government. Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.”
“Vigorously prosecuting cases like this one not only protect the public fisc, but are also crucial to safeguarding the integrity of national programs that benefit the environment,” said U.S. Attorney Glassman. “We will continue to investigate and prosecute those who defraud government programs, including environmental programs.”
“Today’s sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall. “The FBI will continue to work with our law enforcement partners to uncover fraudulent schemes such as this.”
“This investigation uncovered a complicated fraudulent fuel tax credit scheme that generated millions of dollars through a tangled web of financial lies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We hope that today’s sentencing deters others who might be tempted to engage in similar illegal activity, which not only defrauded the U.S. Government and the American taxpayers, but also created an unfair competitive advantage over businesses that play by the rules. Investigations of this magnitude would not be successful without the collaborative efforts of the prosecutors and agents who investigated this case.”
According to information disclosed during the court proceedings, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.
Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme, including:
- Fred Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements and were sentenced to 57 months’ and 30 months’ incarceration, respectively;
- Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice and was sentenced to 60 months’ incarceration; and
- Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy and were sentenced to terms of incarceration ranging from 12 months to 63 months.
This case was prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI.
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Ohio Man Sentenced to 63 Months in Prison for Renewable Fuel FraudRead the Press Release
The owner of a company that bought and sold renewable fuel and fuel credits was sentenced to serve 63 months in prison to be followed by a three year term of supervised release and $26,244,437.06 in restitution for his role in a conspiracy that generated over $47 million in fraudulent EPA renewable fuels credits and over $12 million in fraudulent tax credits connected to the purported production of renewable fuel.
The sentencing of defendant Gregory Schnabel was imposed by The Honorable Judge James L. Graham for the U.S. District Court for the Southern District of Ohio and was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; Special Agent in Charge Ryan L. Korner of the Internal Revenue Service (IRS) Criminal Investigation; Acting Special Agent in Charge John K. Gauthier, of the Environmental Protection Agency (EPA), criminal enforcement program in Ohio; and Special Agent in Charge Grant Mendenhall of the Federal Bureau of Investigation’s Indianapolis Division.
“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who seek to defraud the federal government and the public through unlawful renewable fuel credit schemes,” said Acting Assistant Attorney General Wood. “This sentencing serves as a powerful deterrent to those who would consider participating in similar schemes in the future. We applaud the work of the DOJ, EPA, and IRS law enforcement team that obtained justice in this case.”
“The outcome of this case is a great achievement,” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance. “The defendant participated in a complex scheme to defraud his clients and the United States Government. Through the great work of investigators from EPA and its law enforcement partners, that criminal activity is over and those involved have been prosecuted.”
“Vigorously prosecuting cases like this one not only protect the public fisc, but are also crucial to safeguarding the integrity of national programs that benefit the environment,” said U.S. Attorney Glassman. “We will continue to investigate and prosecute those who defraud government programs, including environmental programs.”
“Today’s sentencing reinforces the message that there are serious consequences for those who manipulate the system for their own financial gain and defraud taxpayers and the United States government in doing so,” said FBI Indianapolis Special Agent in Charge Grant Mendenhall. “The FBI will continue to work with our law enforcement partners to uncover fraudulent schemes such as this.”
“This investigation uncovered a complicated fraudulent fuel tax credit scheme that generated millions of dollars through a tangled web of financial lies,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “We hope that today’s sentencing deters others who might be tempted to engage in similar illegal activity, which not only defrauded the U.S. Government and the American taxpayers, but also created an unfair competitive advantage over businesses that play by the rules. Investigations of this magnitude would not be successful without the collaborative efforts of the prosecutors and agents who investigated this case.”
According to information disclosed during the court proceedings, Schnabel, owner of GRC Fuels of Oneonta, New York, engaged in a scheme with other co-conspirators to fraudulently claim EPA renewable fuels credits (also known as “RIN” credits) and tax credits on fuel that did not qualify for the credits, on fuel that had already been used to generate credits, and on fuel that was exported or otherwise used contrary to EPA and IRS regulations.
Schnabel bought and sold fuel and RINs from several individuals who have already pleaded guilty for their roles in the scheme, including:
- Fred Witmer and Gary Jury, formerly of Triton Energy, who pleaded guilty in the Northern District of Indiana to conspiracy, fraud, and false statements and were sentenced to 57 months’ and 30 months’ incarceration, respectively;
- Malek Jalal, formerly of Unity Fuels, who pleaded guilty in the Southern District of Ohio to conspiracy and obstruction of justice and was sentenced to 60 months’ incarceration; and
- Dean Daniels, William Bradley, Ricky Smith, and Brenda Daniels, of New Energy Fuels and Chieftain Biofuels, who pleaded guilty in the Southern District of Ohio to conspiracy and were sentenced to terms of incarceration ranging from 12 months to 63 months.
This case was prosecuted by Assistant U.S. Attorney J. Michael Marous for the Southern District of Ohio, and Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the IRS, EPA-CID, and the FBI.
Northfield Woman Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Alisha Morin, 30, of Northfield, New Hampshire, pleaded guilty to participating in a conspiracy to distribute fentanyl.
According to court documents and statements made in court, during an ongoing drug trafficking investigation that included wiretaps of certain telephones, investigators learned that on March 9, 2018, Morin intended to travel from New Hampshire to a location in Massachusetts to purchase fentanyl. Agents conducted surveillance in the area of the transaction and observed a hand-to-hand exchange between a known drug trafficker and the front right seat passenger of the vehicle. The vehicle left Massachusetts and agents followed it directly to New Hampshire. A New Hampshire State Trooper stopped the vehicle for traffic violations and identified Morin as the front seat passenger. Approximately 31 grams of fentanyl were located in the vehicle. Some of the fentanyl was hidden in her bra. The investigation revealed that from February 23, 2018, and continuing through April 5, 2018, Morin ordered over 400 grams of fentanyl from the drug distributors in Massachusetts.
Morin is scheduled to be sentenced on December 10, 2018.
“The deadly impact of fentanyl has been felt in communities throughout the Granite State,” said U.S. Attorney Murray. “In order to protect the public, we will continue to investigate, arrest, and prosecute those who are responsible for distributing this dangerous drug. I commend the law enforcement agencies involved in this investigation for stopping this defendant’s drug trafficking activities.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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New York Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
HUNTINGTON, W.Va. – A New York man who illegally possessed firearms in Cross Lanes last year pled guilty today in federal court in Huntington, announced United States Attorney Mike Stuart. Andre Durrell Watson, 33, entered his guilty plea to prohibited possession of a firearm by a felon. U.S. Attorney Stuart commended the investigative efforts of the Federal Bureau of Investigation and the United States Postal Inspection Service.
“Yet another felon in possession of a gun,” said United States Attorney Mike Stuart. “For some reason these felons simply can’t figure it out. We are committed to making our communities safer and as part of our efforts to prevent violent crime we are vigorously prosecuting prohibited persons that possess guns.”
In May and June of 2017, Watson was living at 5035 St. Patrick Circle in Cross Lanes. Agents executed a search warrant at the residence on June 1, 2017, and recovered four firearms along with a large quantity of ammunition. Watson admitted during his plea hearing that he possessed the firearms, a .40 caliber pistol, a 9mm pistol, and two 5.56mm AR-15 style rifles. Watson also admitted that the .40 caliber pistol was previously stolen. Watson was convicted in 2005 in Philadelphia, Pennsylvania of the felony offense of burglary and was prohibited from possessing firearms by virtue of his conviction.
Watson faces up to 10 years in prison when he is sentenced on December 10, 2018.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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.
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Nassau County, New York, Man Sentenced to 57 Months in Prison for Defrauding Multiple Residential Mortgage HoldersRead the Press Release
TRENTON, N.J. – The sole proprietor of a purported loan modification consulting company was sentenced today to 57 months in prison for fraudulently billing clients more than $400,000 for services that were never performed, U.S. Attorney Craig Carpenito announced.
Jeffrey Halpern, 63, of Hewlett, New York, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between 2009 and 2016, Halpern operated JCK Marketing and solicited business from individuals who were seeking home loan modifications on their residential mortgages. Halpern told these individuals that, for a fee, he would negotiate loan modifications on their behalf.
In actuality, Halpern pocketed the funds but performed little or no actual services in connection with the purported loan modifications. Halpern also repeatedly demanded money for “bank fees” from his victims, even though none of the related financial institutions charged fees for loan modifications. During the relevant time period, Halpern defrauded at least 26 victims of more than $400,000.
In addition to the prison term, Judge Sheridan sentenced Halpern to three years of supervised release and ordered to pay $411,000 in restitution.U.S. Attorney Carpenito credited investigators with the U.S. Attorney’s Office and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the New York State Department of Financial Services, under the direction of Superintendent Maria T. Vullo; the Federal Housing Finance Agency Office of the Inspector General, under the direction of Mark Higgins; and the Nassau County District Attorney’s office, under the direction of District Attorney Madeline Singas, for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.Defense counsel: Mitchell C. Elman Esq., Port Washington, New York
Monroe County Man Pleads Guilty to Drug TraffickingRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew Morales, age 25, of Pocono Summit, Pennsylvania, pleaded guilty on August 23, 2018, before U.S. District Court Senior Judge A. Richard Caputo to conspiracy to distribute heroin and crack cocaine.
According to United States Attorney David J. Freed, Morales admitted to participating in a conspiracy to distribute between 10 and 40 grams of heroin (which is equivalent to 400 to1,600 individual doses of heroin), as well as between 28 and 112 grams of crack cocaine, in the Monroe County area between May and July 2015. Morales was one of eleven individuals indicted by a grand jury in July 2015, and charged with conspiring to distribute heroin, powder cocaine and crack cocaine in the Monroe County area.
Judge Caputo ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 charge carries a mandatory minimum sentence of five years in prison. The maximum penalty under federal law is up to forty 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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Mexican National Charged for Voting by an AlienRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a Criminal Information has been filed charging ALMA ILZET MAR ESCALANTE, age 36, of Mexico, with voting by an alien.
According to the charging document, ESCALANTE registered to vote in North Carolina in 2012 and attested under the penalty of perjury that she was a citizen of the United States. As detailed in an affidavit supporting the Criminal Information, ESCALANTE voted in the General Elections of 2012, 2014, and 2016, in Bladen County, North Carolina. ESCALANTE was granted deferred action status in 2016 and her application to register as a lawful permanent resident in the United States is pending adjudication.
If convicted of voting by an alien, ESCALANTE would face maximum penalties of twelve months imprisonment, a $100,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the Criminal Information are merely accusations. A Criminal Information is a formal written accusation filed directly by the United States Attorney. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated under the newly created framework of the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Immigration and Customs Enforcement - Homeland Security Investigations, and assisted by Enforcement Removal Operations, and the Department of State - Diplomatic Security Service. The investigation as to voting fraud is ongoing.
Meth User Dreamed of Getting Even by Becoming a RobberRead the Press Release
KANSAS CITY, KAN. – A methamphetamine user from Kansas City, Kan., was sentenced Monday to two years in federal prison on firearms charges, U.S. Attorney Stephen McAllister said.
Steven K. Kolojaco, 27, Kansas City, Kan., pleaded guilty to one count of unlawful possession of firearms by a user of controlled substances. In his plea, he admitted he bought at least nine handguns from Cabela’s and Bass Pro stores in Kansas City, Kan., and Olathe. His plan was to use the guns to rob people who he thought had mistreated him. Before he could carry out the plan, however, the guns were stolen from him.
Kolojaco admitted that he used meth daily and he was under the influence of methamphetamine when he bought some of the guns.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney David Zabel for their work on the case.
Mequon Business Owner Charged with Filing False Tax Returns for ClientsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that federal charges had been filed against Randy D. Usow (age 62) of Mequon, Wisconsin. Usow is charged with theft of government property and aggravated identity theft. The United States also filed a plea agreement it had reached with Usow under which he will plead guilty to these charges.
Usow, who operated an accounting business in Mequon known as Randy Usow Accounting, Inc., prepared and filed state and federal tax returns for third parties. The charges against Usow are based on his preparing and filing of false tax returns for one of his clients and his wife in which Usow fraudulently claimed refunds the clients were not entitled to and then diverting the fraudulent refunds to himself.
To conceal his activity, Usow provide the clients with a different version of the tax returns that reflected the correct refund the clients were entitled to.
To facilitate his theft, Usow opened a bank account in the name of his client without the client’s knowledge or consent. Usow then directed the IRS to send a fraudulent refund to this account. After receiving the refund, Usow transferred a portion of the refund to a second bank account he had opened in the name “US Government, LLC.” Usow then used this account to pay the clients the smaller refund the clients were expecting.
During the period from April 2011 through May 2015, Usow filed at least four false federal income tax returns, fraudulently seeking more than $800,000 in federal income tax refunds and diverted those funds to himself.
Usow faces a minimum of two years in prison, and up to 12 years in prison, and a fine of up to $250,000, as well as having to pay restitution to the United States.
This matter was investigated by the Criminal Investigation of the Internal Revenue and has been assigned to Assistant United States Attorney Matthew L. Jacobs for prosecution.
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For additional information contact:
Public Information Officer Dean Puschnig 414-297-1700
Memphis Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Keaunta Keshawna Robinson, age 28, of Memphis, Tennessee, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about April 26, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adam Gunn, II, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Gunn, age 31, pled guilty to one count of “Distribution of Cocaine.” Gunn admitted to selling cocaine in Berkeley County in August 2017.
Gunn faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the case on behalf of the government. The investigation was led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies that assisted in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
Manhattan U.S. Attorney Announces Murder Charges Against Bronx Gang Member for 2011 Murder of Jose WebsterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced additional charges in a Superseding Indictment against a member of the “MacBallas” gang based in the Andrew Jackson and Melrose Houses in the Bronx. In the Superseding Indictment, which was returned today, NATHANIEL FLUDD, a/k/a “Juntao,” is charged with the September 15, 2011, murder of Jose Webster, a/k/a “Spillz.”
FLUDD and a co-defendant were previously charged with the 2011 murder of Daniel Delgado in an Indictment unsealed on June 27, 2018. That Indictment also charges 20 members and associates of the MacBallas with racketeering, narcotics trafficking, robbery, and firearms offenses. In addition to the new charges related to the Webster murder, the Superseding Indictment re-alleges the charges that had previously been brought in the Indictment against FLUDD and 19 others. The case is assigned to U.S. District Judge Denise L. Cote. FLUDD and the 19 other defendants will be arraigned on the new charges later in the week.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jose Webster was murdered in 2011 by Nathaniel Fludd and other members of the violent MacBallas gang. We thank our law enforcement partners for their extraordinary efforts investigating this murder. With their help, we will continue our efforts to eradicate this senseless gang violence from our communities.”
DEA Special Agent-in-Charge James J. Hunt said: “The comprehensive investigations into gang-related crime have an uncanny knack for uncovering and linking additional crimes to defendants. In this case, we identified not just one, but two murders committed by one of the gang members, Nathaniel Fludd. I commend the agents, detectives, and prosecutors for their diligent work on this investigation.”
Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Violent Crimes Squad and the New York Field Division of the DEA.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Christopher Clore, Jordan Estes, and Maurene Comey are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Man Sentenced for Illegally Building Road on U.S. Forest Service LandRead the Press Release
GRAND JUNCTION – Earl Bennett, age 72, was recently sentenced by U.S. Magistrate Judge Gordon Gallagher to serve one year of probation and pay $30,000 in restitution for the repair of a road he illegally built on Forest Service land near the Cathedral Peaks Subdivision near Crawford, Colorado. Bennett had previously pled guilty to a Class B Misdemeanor, for constructing a road, trail or other improvement on National Forest System lands without special-use authorization, a contract or an approved operating plan.
According to court documents, including the stipulated facts contained in the plea agreement, on June 28, 2014, Bennett, while President of the Cathedral Peaks Ranch Landowner’s Association (CPRLA), bulldozed a trail and created an unauthorized road on National Forest Service land adjacent to private property of another subdivision landowner. A witness observed the defendant on a bulldozer creating the road on Forest Service land. Later, it was determined that Bennett spent 11 hours using the bulldozer opening the road.
On August 24, 2014, a Forest Service crew went to the site and confirmed there was nearly a mile of newly constructed road on National Forest Service land. The damage included soil and rock removal, erosion damage, hillside weakening, and numerous oak trees cut. The road created a dangerous risk of mudslide and endangers an individual’s home, located below the damaged area.
“Destroying public land is selfish and steals from all of us,” said U.S. Attorney Bob Troyer. “The U.S. Attorney’s Offices works together with the Forest Service and local law enforcement to protect our public land.”
“National forests are public lands; they belong to all of us to enjoy safely and responsibly,” said USDA Forest Service Special Agent in Charge Kent Delbon. “Constructing, placing or maintaining any kind of road, trail, structure, fence, enclosure, communication equipment, or other improvements on National Forest System lands without permission is illegal and harmful to the environment.”
This case was investigated by the U.S. Forest Service. The defendant was prosecuted by Assistant U.S. Attorney Jeremy Chaffin.
Lincoln County Man Sentenced for Firearm OffenseRead the Press Release
LEXINGTON, Ky. — Eddie Paul Harris, 69, of Lincoln County, Kentucky, has been sentenced, by Chief United States District Judge Karen K. Caldwell. On Thursday, August 23, 2018, he was formally sentenced for being a felon in possession of a firearm. Harris was found to be an armed career criminal and was sentenced to 180 months imprisonment.
Harris, who had previously been convicted of two murders, armed robbery, and second degree robbery, among other things, admitted to unlawfully possessing the firearm. On December 31, 2015, the Kentucky State Police Strategic Response Team, with the aid of local law enforcement, arrived at Harris’s residence to execute an arrest warrant. Harris refused to exit the premises. A witness, who had already exited the residence told officers that Harris was armed and intended to fire at officers, causing law enforcement to escalate its response. Ultimately, officers were able to apprehend Harris. Inside the residence, officers located a loaded, short-barreled Remington shotgun. Harris pleaded guilty to the charges in July 2018.
Under federal law, Harris must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for a period of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowery, Special Agent in Charge, ATF; and Richard Sanders, Kentucky State Police, jointly made the announcement.
ATF and Kentucky State Police conducted the investigation. Assistant United States Attorney Lauren Tanner Bradley represented the United States.
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 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, local strategies to reduce violent crime.