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Tuesday 10 July 2018
University of Colorado Professor Pleads Guilty to Mail FraudRead the Press Release
DENVER – Oleg Viktorovich Vasilyev, age 50, of Boulder, Colorado, a professor in the Department of Mechanical Engineering at the University of Colorado in Boulder, pled guilty yesterday before U.S. District Judge William J. Martinez to mail fraud and aiding and abetting, U.S. Attorney Bob Troyer and Department of Energy Acting Inspector General April G. Stephenson announced. The defendant had been indicted by a federal grand jury in Denver on September 12, 2017. The sentencing hearing will be held on October 25, 2018, before Judge Martinez.
According to court documents, including the defendant’s plea agreement, in the summer of 2006, Vasilyev submitted an application to the Los Alamos National Laboratory (LANL) to obtain a federal contract worth $234,000.00. The defendant did this without the knowledge or approval of the University of Colorado’s Office of Contracts and Grants (OCG), which customarily would oversee such a contract. Over the next five to six years, Vasilyev caused invoices to be submitted directly to LANL purportedly to pay his salary, as well as the salary of a graduate student. LANL received the defendant’s invoices and forwarded monies to an auxiliary account held by the University of Colorado for Vasilyev. Vasilyev then obtained this money from the auxiliary account by submitting travel vouchers and other requests for reimbursement to the University of Colorado. Vasilyev later admitted that these requests for reimbursement included unallowable costs, such as more than $140,000 for international travel unconnected to any work for LANL. Other unallowable costs included dues, subscriptions, conference registration fees, and out of state travel. Vasilyev agreed to repay the University of Colorado a total of $185,879, but the total actual loss associated with Vasilyev’s fraud remains in dispute.
This case was investigated by the Department of Energy Office of Inspector General. The United States is represented by Assistant U.S. Attorney Jeremy Sibert.
United States Settles False Claims Act Allegations Against Liberty Ambulance for $1.2 MillionRead the Press Release
Jacksonville, FL – Today, after a multiple-year investigation and the government’s intervention into a whistleblower suit in 2015, the United States announces a $1.2 million settlement with Liberty Ambulance. In reaching this settlement, the parties have resolved allegations that, from June 29, 2005, to January 2016, Liberty Ambulance knowingly up-coded claims for life support services from “Basic” to “Advanced” without justification, unnecessarily transported patients, and unnecessarily transported patients to their homes in an emergent fashion.
“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal healthcare programs from fraud and abuse,” said U.S. Attorney Maria Chapa Lopez. “Whenever founded, our Office will vigorously pursue these cases and recover taxpayers’ money.”
“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said Shimon Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to be relentless in our efforts to hold such providers accountable.”
“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”
Today’s settlement involved false claims submitted to Medicare, TRICARE, Medicaid, and the Federal Employees Health Benefits Program managed by the Office of Personnel Management. The claims resolved by this settlement are allegations only, and there has been no determination of liability. This case was initiated by the filing of a qui tam lawsuit filed by Shawn Pelletier, a former employee of Liberty Ambulance. Mr. Pelletier collected more than $1.2 million in proceeds from prior settlements, and will receive approximately $264,000 from the present settlement with Liberty.
The government’s action in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This case was investigated by the Federal Bureau of Investigation, the Office of Personnel Management, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services - Office of Counsel to the Inspector General, the U.S. Department of Health and Human Services - Office of Inspector General, Office of Audit Services, the Florida Medicaid Fraud Control Unit, and the Defense Health Agency Program Integrity Office. It was handled by Assistant United States Attorney Shea Gibbons.
Textbook Theft Duo Targeted University of Wisconsin SchoolsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 10, 2018, a federal grand jury returned an indictment against Ryan Scott Lewis (age: 35) and Genisis Garcia Abellar (age: 35) both of Houston, Texas.
According to the indictment, Lewis and Abellar stole textbooks from instructors’ offices at several University of Wisconsin System schools, including: University of Wisconsin – Green Bay, University of Wisconsin – Whitewater, University of Wisconsin – Stout, and University of Wisconsin – River Falls. Lewis and Abellar then shipped the textbooks to a business in the State of Texas, which in turn sold the books to college students. The duo are also alleged to have carried out this scheme at colleges in Minnesota, North Dakota, Arizona, New Mexico, and Washington State.
Both face charges of conspiracy to transport stolen goods and interstate transportation of stolen property, contrary to Title 18, United States Code, Sections 371 and 2314. If found guilty of the charges, Lewis and Abellar each face up to 15 years’ imprisonment.
This case was investigated by the University of Wisconsin - Green Bay Police Department, the Wisconsin Department of Justice’s Division of Criminal Investigation, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Stock Defrauder Sentenced for His Role in “Pump and Dump” SchemeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Colorado resident Frank J. Morelli, III, 62, was sentenced today to 84 months in federal prison, followed by three years of supervised release. Morelli previously pleaded guilty in federal court to conspiracy, wire fraud, and securities fraud charges.
Morelli was a significant player in a scheme involving six others to defraud investors and the Securities and Exchange Commission (SEC). As part of this scheme, Morelli and his fellow fraudsters took control of the majority of the stock in Supernova Resources, Inc. (ticker symbol SNRR), a publicly traded company that purported to manufacture interactive kiosks for, among other things, operation in national retail stores, when in reality no functioning kiosks had been placed in any well-known retail stores.
In order to be able to manipulate Supernova stock, Morelli and his fellow fraudsters filed false documents, used nominees, and put stock in offshore accounts to hide their stock ownership, all in an effort to deceive the SEC that SNRR stock was eligible to be traded when it was not. They also caused Supernova to issue false and misleading press releases and timed the issuance of these press releases with trades organized amongst themselves. This gave potential investors the false impression that the stock was increasing in value based on legitimate market activity when it was not. The fraudsters also agreed to bribe brokers in order to help carry out their scheme. The schemers had made several million dollars from the scheme and would have continued with their plans to manipulate the stock had the SEC not halted trading in SNRR.
“Hard working, innocent individuals who try to save money for the future are the ones who lose big when crooks like Morelli manipulate the markets with pump and dump stock schemes,” said U.S. Attorney McSwain. “Market manipulation also causes our economy to take a hit because the public cannot trust that the markets are free and fair. Thanks to the excellent work of the FBI, SEC, and prosecutors from this Office, Morelli’s days of profiting off of others’ misfortune, created by his own handiwork, are over.”
"All of the machinations that went into perpetuating this 'pump and dump' scheme show a clear disregard for the free market, and a willful disregard for the law," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "Mr. Morelli and his accomplices were scam artists, plain and simple, cashing in at the expense of unwitting investors without a second thought. The FBI is firmly committed to finding fraudsters who are selling a false bill of goods, and holding them accountable."
Morelli is the fifth of seven fraudsters to be sentenced in connection with this scheme. James Wheeler, the CEO and President of Supernova who controlled the company on behalf of the schemers, was sentenced to 63 months’ imprisonment. Daniel Starczewski, Morelli’s longtime partner, was sentenced to 30 months’ imprisonment. Carl Marciniak and Jeffrey Weinfurter, stock manipulators whom Morelli recruited early in the scheme, received sentences of 24 months’ and 36 months’ incarceration, respectively. The final two schemers, Louis Buonocore and Danny Colon, are scheduled to be sentenced later in 2018.
The case is being investigated by the Federal Bureau of Investigation, with the assistance of the SEC. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and Judy Smith.
Statement from U.S. Attorney Andrew Lelling Regarding the Legalization of Recreational Marijuana in MassachusettsRead the Press Release
As of July 1, 2018, the Commonwealth of Massachusetts legalized the distribution of marijuana for recreational and other non-medical uses and, based on public reports, the Cannabis Control Commission is now reviewing applications for licenses to grow and sell marijuana products.
Marijuana distribution, however, remains illegal; it is specifically prohibited by federal law. Because I have a constitutional obligation to enforce the laws passed by Congress, I will not effectively immunize the residents of the Commonwealth from federal marijuana enforcement. My office’s resources, however, are primarily focused on combatting the opioid epidemic that claims thousands of lives in the Commonwealth each year.
Having considered these factors, and the experiences of other states that have legalized marijuana distribution for non-medical use, I anticipate focusing my office’s marijuana enforcement efforts in the following areas:
- Overproduction: Despite regulatory efforts to address this problem, licensed outdoor marijuana cultivation still creates a significant risk of overproduction, which in turn creates the risk of illegal, and lucrative, marijuana sales to users in nearby states where recreational marijuana use remains illegal. These out-of-state sales are nearly always cash transactions and so often involve federal tax fraud designed to hide the illicit cash or its true source.
- Targeted Sales to Minors: Advocates for state-level legalization fail to emphasize the risks marijuana use poses for minors. And, despite state-mandated age requirements, marijuana use among minors will surely now increase. Study after study confirms that regular marijuana use is dangerous to adolescent brain development, a process that appears to continue into a person’s early 20s. The targeted sale of marijuana to minors may warrant federal prosecution.
- Organized Crime and Interstate Transportation of Drug Proceeds: Drug proceeds often finance organized criminal activities. My office will continue to prosecute organized criminal groups, like MS-13, that distribute drugs in violation of federal law, regardless of whether that distribution is legal under state laws. To that end, federal investigators will continue to police the Commonwealth for incoming or outgoing shipments of cash as well as use of the federal banking system.
This list is not exclusive, but only intended to clarify which aspects of the state-level marijuana industry are most likely to warrant federal involvement. My office will continue to review all potential marijuana enforcement matters on a case-by-case basis, guided by the U.S. Department of Justice’s Principles of Federal Prosecution.
Spencer Drug User Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
OKLAHOMA CITY – FREDERICK EUGENE JENKINS, 30, of Spencer, Oklahoma, pleaded guilty today to possessing firearms illegally based on his status as a drug user, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to a criminal complaint filed on March 8, 2018, Oklahoma City Police Officers determined that Jenkins had methamphetamine in his residence. On March 7, officers executed a search warrant based on this information and found a burnt marijuana cigarette and a Maadi 7.62 caliber, AK-47-style rifle in the residence. Jenkins acknowledged to officers he was a user of marijuana, cocaine, and methamphetamine.
A federal grand jury returned an indictment against Jenkins on March 20, 2018.
Today Jenkins pleaded guilty to being a drug user in possession of a firearm that was in and affecting interstate commerce. In particular, he admitted before U.S. District Judge Scott L. Palk that he possessed both the Maadi rifle and a Taurus revolver while being an unlawful user of drugs classified as controlled substances under federal law.
At sentencing, Jenkins faces up to ten years in prison, a maximum fine of $250,000, and three years of supervised release.
Jenkins remains in custody and will be sentenced in approximately 90 days.
This case is the result of an investigation by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Prosecuted by Assistant U.S. Attorneys Jacquelyn M. Hutzell and Nicholas J. Patterson, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court filings for further information.
Solano County Man Sentenced to 15 Years in Prison for Methamphetamine and Firearms ConvictionsRead the Press Release
SACRAMENTO, Calif. — Wesley Keith Smith, 35, of Fairfield, was sentenced today by U.S. District Judge John A. Mendez to 15 years in prison for possessing methamphetamine with the intent to distribute it and for being a felon in possession of firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, in September 2016, police officers executed search warrants on Smith, a car he drove, and a house he was known to frequent. In that search, the officers found that Smith was in possession of more than a pound of methamphetamine, a digital scale, clear plastic baggies, $4,000 in cash, and two firearms. At the time of the search, Smith had prior state-law convictions for possession of controlled substances for sale. Smith was taken into custody at the time of the search and has remained in custody since then. He will now be transferred to the Bureau of Prisons to serve the balance of his sentence.
This case was the product of an investigation by the Fairfield Police Department and the FBI Solano County Violent Crimes Task Force. Assistant U.S. Attorney Owen Roth prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Seven Charged in Methamphetamine Trafficking ConspiracyRead the Press Release
DAYTON – A federal indictment unsealed today charges seven people with engaging in a methamphetamine trafficking conspiracy in the Miami Valley and across southern and central Ohio.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges contained in the indictment.
The indictment charges the following people with conspiracy to possess with intent to distribute methamphetamine, a crime punishable by a sentence of at least ten years and up to life in prison:
* Salvador Ramirez, aka “Listo”, 23, West Chester
* Tamara McQueen, 21, Hamilton
* Luiz Roberto Diaz-Magana, 29, Queretaro, Mexico
* Jesus Garcia, aka “Jesse Garcia”, 49, West Chester
* Joshua L. Leach, 34, Plain City - Fugitive
* Brandi Danyell Loy, aka Brandi Richey, 34, Plain City - Fugitive
* Takeea Trammell, 41, Dayton
Anyone with information on Leach or Loy is asked to call the Dayton DEA tipline, 937 903-5860. The six-count indictment also charges the defendants with manufacturing and distributing methamphetamine and money laundering. The indictment also seeks forfeiture of all proceeds of the crimes.
“This ongoing investigation by DEA and the members of their task force has already led to the pleas or convictions of seven people dealing drugs in our region,” U.S. Attorney Glassman said, noting that so far agents have seized more than 140 pounds of meth, seven kilograms of fentanyl, two kilograms of heroin and more than $130,000 in cash.
Glassman also commended Assistant U.S. Attorney Brent Tabacchi, who is representing the United States in this case, and the DEA agents and task force officers who are investigating the case.
Agencies investigating the case include the Ohio State Highway Patrol, the Warren County Sheriff’s Office and the police departments in Monroe and Middletown.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Santa Fe Cardiologist Sentenced to 51 Months in Federal Prison for Health Care Fraud and Obstruction of Justice ConvictionsRead the Press Release
ALBUQUERQUE – Chief U.S. District Judge William P. “Chip” Johnson sentenced Roy G. Heilbron in federal court in Albuquerque, N.M., this afternoon to 51 months of imprisonment for his convictions on health care fraud and obstruction of justice charges. The sentence was announced by U.S. Attorney John C. Anderson, Acting Special Agent in Charge Maxwell D. Marker of the FBI’s Albuquerque Division, and U.S. Marshal Sonya K. Chavez.
Heilbron, 54, a cardiologist residing in Santa Fe, N.M., was sentenced to 24 months for his conviction on a health care fraud charge, and 27 months for his conviction on an obstruction of justice charge arising out of his attempt to obstruct and impede sentencing proceedings on the health care fraud case. Heilbron was ordered to serve the two sentences consecutively for an aggregate of 51 months of imprisonment. Heilbron will be on supervised release for three years after completing his prison sentence. Heilbron also was ordered to pay $623,477.25 in restitution to the victims of his health care fraud crimes.
A federal grand jury indicted Heilbron in June 2015, and charged him with health care fraud and wire fraud offenses. The 24-count indictment charged Heilbron, a physician who was then licensed to practice medicine in New Mexico who specialized in cardiology, with executing a scheme to defraud Medicare and other health care benefit programs between Jan. 2010 and May 2011 by submitting false and fraudulent claims. According to the health care fraud indictment, Heilbron executed his scheme by:
- Performing and billing for a wide array of unnecessary tests on every new patient and submitting false diagnoses with the billing claims to justify the tests to the insurance plans;
- Inserting false symptoms, observations, and diagnoses into patients’ medical charts to provide written support for the tests he ordered or performed;
- Inserting photocopied clinical notes, diagnostic test results, and ultrasound images in patients’ medical charts to create a written record of procedures that were either not performed or that had not been sufficiently documented to support the billing;
- Submitting the photocopied notes, results, and images to the insurance plans when the plans requested documentation to support the claims submitted;
- Submitting claims to health plans for procedures that were never performed;
- Submitting claims for procedures performed on two consecutive dates to increase the amount paid for services that were actually rendered together on one single date; and
- Misusing billing codes and modifiers in order to increase his rate of reimbursement.
On Feb. 17, 2017, Heilbron pled guilty to one count of health care fraud. In his plea agreement, Heilbron acknowledged that at all times relevant to the crimes charged in the indictment, he was a doctor involved in the private practice of medicine. Heilbron further admitted from Dec. 2009 through Dec. 2011, he provided medical services as A Well for Health Church, Inc., a medical clinic in Santa Fe, where he contracted with several health care benefit programs including Blue Cross and Blue Shield of New Mexico and Medicare. Under the terms of those contracts, Heilbron would bill the programs for medical services he provided to patients covered by those programs and included his medical diagnosis or other justifications for the services for which he requested compensation. In his plea agreement, Heilbron admitted devising and executing a scheme to deceive and obtain money from health care programs that covered his patients by misrepresenting his patients’ diagnoses.
On Aug. 7, 2017, Heilbron’s attorney filed a motion to continue Heilbron’s sentencing hearing on the health care fraud charge, which was then scheduled for Aug. 28, 2017, to permit Heilbron to begin chemotherapy in Costa Rica for prostate cancer. The motion included two attachments: a one-page “Treatment Protocol for Roy Heilbron” dated Aug. 3, 2017, which purported to detail Heilbron’s alleged prostate cancer diagnosis, and a three-page “Clinical Summary” dated June 24, 2017, which purported to outline a four-cycle chemotherapy treatment plan. The two documents purported to be authored by a physician with offices in San Jose, Costa Rica, and Miami, Fla.
On Aug. 9, 2017, a U.S. Magistrate Judge issued a warrant for Heilbron’s arrest based on a criminal complaint charging him with making and presenting fraudulent documents regarding his medical condition to a U.S. Probation Officer, and submitting the fraudulent documents for the purpose of postponing or avoiding sentencing in the pending health care fraud prosecution. The complaint outlined the FBI’s investigation into the claims made in the “Clinical Summary” and “Treatment Protocol,” and asserted that Heilbron created the two documents himself and that Heilbron was not a patient of the physician whose name appears on the fraudulent documents. According to the complaint, Heilbron provided the fraudulent documents to his U.S. Probation Officer on Aug. 4, 2017, in support of a request to postpone his sentencing hearing. Heilbron was subsequently charged on Sept. 6, 2017, in a two-count indictment setting forth the same charges as those contained in the complaint. The indictment alleged that Heilbron committed the two crimes in Bernalillo County, N.M., and elsewhere, between Aug. 3, 2017 and Aug. 7, 2017.
On Feb. 2, 2018, Heilbron entered a guilty plea to the obstruction of justice charge of the indictment. In his plea agreement, Heilbron acknowledged that he previously pled guilty to a health care fraud charge on Feb. 17, 2017, and had a sentencing hearing on Aug. 28, 2017. Heilbron also admitted that on Aug. 4, 2017, he sent his Probation Officer an email requesting to postpone his sentencing hearing based on the representation that he was scheduled to begin chemotherapy treatments in Costa Rica on Aug. 14, 2017. In support of his request, Heilbron attached a clinical summary and treatment protocol purportedly authored by Heilbron’s physician. Heilbron admitted that the email was false and created for the purpose of delaying or avoiding the sentencing hearing on his health care fraud plea, and at the time he made the request for the postponement, he was on vacation in Europe with no intention of beginning chemotherapy treatments in Costa Rica beginning on Aug. 14, 2017.
In entering the guilty plea, Heilbron acknowledged that when he sent the false email, he was on release under a July 1, 2015 order of the U.S. District Court for the District of New Mexico relating to his health care fraud charge that put him on notice of the effect of committing crimes while on presentence release.
The obstruction of justice case was investigated by the Santa Fe and Albuquerque offices of the FBI, with assistance from the Charlotte office of the FBI and the U.S. Marshals Service, and the Santa Fe office of the FBI investigated the health care fraud case. Assistant U.S. Attorneys George C. Kraehe, Jeremy Peña and Paige Messec prosecuted the cases.
Rhode Island Man Guilty of Large Scale Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Angel Prado, age 46, of Providence, Rhode Island, pleaded guilty on July 9, 2018, to possession with intent to distribute more than a kilogram of heroin before U.S. District Court Judge Robert D. Mariani.
According to United States Attorney David J. Freed, Prado admitted to transporting six kilograms of heroin (which is equivalent to approximately 240,000 retail bags of heroin) from Chicago to the Middle District of Pennsylvania. The six kilograms of heroin were seized from a vehicle Prado was driving on Interstate 80 in Monroe County by members of the Pennsylvania State Police on December 19, 2013.
Judge Mariani ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
Prado was indicted by a federal grand jury in July 2015, following an investigation by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Phillip Caraballo are 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.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum penalty of ten years’ imprisonment. 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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Reynoldsburg Man Sentenced for Defrauding 44 Clients out of More Than $1.4 millionRead the Press Release
COLUMBUS, Ohio – Edward I. Campbell, 41, of Reynoldsburg, Ohio, was sentenced in U.S. District Court today to 60 months in prison for charges related to a $1.4 million investment fraud scheme that defrauded at least 44 individuals.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, between July 2011 and June 2013, Campbell operated an investment business known as Rosewood Consulting LLC in Baltimore, Ohio. Campbell told victims their contributions would be invested through Rosewood Consulting into two types of investment programs: historical bonds issued by China and the exchange of Bougainville Kina – illegal currency from the autonomous region of Bougainville, Papua New Guinea – into U.S. dollars.
Campbell represented that he had access to a trading platform in which he could monetize gold-backed bonds issued by China in 1913 for a very high return. Campbell offered to sell the historical bonds to investors for $10,000 to $15,000 each for a promised return on investment of anywhere from $50,000 to upwards of possibly $10 million per bond within 10 to 60 days.
Campbell also offered to exchange the Bougainville Kina, which he allegedly possessed, into U.S. dollars if the investors hired him for a $100,000 fee. The investors were supposed to receive a return of $1.5 million or more within 10 to 120 days.
Campbell told investors that their investments were refundable if the returns were not paid within the provided timeframes. In addition, he told investors that he had prior success with these investment programs, was a former Navy SEAL, once worked in an investment house, had traveled internationally closing deals and he had nearly 600 investors.
The investigation revealed that none of the investors received the returns on their investments that Campbell had promised. Only a few of the 44 investors have been refunded the money they paid for his services and those refunds were paid for with other investors’ funds.
Campbell usually depleted the funds he received from investors shortly after receiving them, by using the funds for personal expenses, including the purchase of two automobiles and expenses at hotels and restaurants.
To appease investors regarding delays in paying them the returns on their investments, Campbell represented that their money was being held up by various United States agencies and or catastrophes to his family or other individuals who were important for these deals to be completed.
For example, Campbell told investors his niece was a student and had been shot at Sandy Hook Elementary School, but later changed his story when the names of the school-shooting victims were released to the public. He also fabricated that his attorney’s daughter had been in a motorcycle accident.
Campbell pleaded guilty on September 21, 2017 to charges of money laundering and wire fraud. As part of his plea agreement, Campbell agreed to pay $1,408,854 in restitution.
“Campbell blatantly and repeatedly lied to and violated the trust placed in him by the individuals who invested with him,” U.S. Attorney Glassman said. “Besides falsely representing experience and expertise, he told contemptable lies about a tragic incident.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain. IRS Criminal investigators will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
U.S. Attorney Glassman commended the investigation of this case by the FBI and IRS, as well as Assistant United States Attorney Jessica H. Kim, who represented the United States in this case.
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Pittsburgh Woman Sentenced for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years probation, with the first eight months to be served on home detention with electronic monitoring, on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Sharima Zyhier, 41, of Pittsburgh, Pennsylvania.
According to information presentenced to the court, from in and around January 2016, and continuing thereafter to in and around May 2016, Zyhier conspired with others to distribute, and possess with intent to distribute, cocaine, a Schedule II controlled substance.
Assistant United States Attorneys Cindy K. Chung and Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Scott W. Brady commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) for conducting the investigation leading to the successful prosecution of Sharima Zyhier. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.
Pittsburgh Man Took Nearly $120K During 2016 Bank Robbery Spree across Southwestern PARead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of armed bank robbery and bank robbery, United States Attorney Scott W. Brady announced today.
Gregory Magee, 48, pleaded guilty to two counts of armed bank robbery and four counts of bank robbery before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Magee robbed six banks between January through November of 2016.
The court was advised that on the afternoon of January 20, 2016, Magee entered First Niagara Bank located at 20111 Route 19, Cranberry Township, Pennsylvania, wearing a hooded sweatshirt, cap, sunglasses, gloves, and scarf covering this face. Upon entering the bank, Magee brandished a black handgun and demanded money from several tellers, who gave him $5,526.
The court was further advised that on the afternoon of February 29, 2016, Magee entered First Merit Bank located at 2090 West State Street, New Castle, Pennsylvania, wearing a green poncho, sunglasses, gloves, and scarf covering his face. Upon entering the bank, Magee brandished a black handgun, handed plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $10,126. Magee fled the scene of the robbery in his personal vehicle, a black Cadillac ATS with black rims, which was observed on video surveillance and by an eyewitness.
The court was further advised that around noon on March 31, 2016, Magee entered First Niagara Bank located at 4073 Washington Road, McMurray, Pennsylvania, wearing sunglasses and gloves. Upon entering the bank, Magee threatened that he had a gun, gave plastic bags to tellers, and demanded money from the tellers, who complied and gave him $9,133. Magee carried an open umbrella inside the bank while committing this robbery. Magee fled the scene of the robbery in a bronze Cadillac ATS, which he was driving as a loaner vehicle. This vehicle was captured on surveillance video and observed by an eyewitness.
The court was further advised that late morning on June 8, 2016, Magee entered First Commonwealth Bank located at 5847 Forbes Avenue, Pittsburgh, Pennsylvania, wearing a hooded sweatshirt, sunglasses, and gloves. Upon entering the bank, Magee threatened that he had a gun, handed out plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $3,709. Magee again held an open umbrella during this robbery.
The court was further advised that on the afternoon of August 11, 2016, Magee entered Citizens Bank located at 2537 Constitution Boulevard, Beaver Falls, Pennsylvania, wearing a hooded sweatshirt, baseball cap, sunglasses, gloves, and scarf covering his face. Upon entering the bank, Magee threatened to have a bomb, handed plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $12,559. Magee again carried an open umbrella in the bank while committing this robbery. Magee’s hat was left at the scene of the robbery. DNA was recovered from the hat and found by the FBI laboratory to match a DNA sample from Magee. Magee was observed fleeing the scene in a Buick Regal, which he was driving as a loaner vehicle that day.
The court was further advised that around noon on November 8, 2016, Magee entered S&T Bank located at 4580 Broadway Boulevard, Monroeville, Pennsylvania, wearing a hooded jacket, sunglasses, and gloves. Upon entering the bank, Magee threatened to have a bomb and displayed a bag with protruding wires. Magee handed plastic bags to several tellers and demanded money from them, and they complied. Magee also demanded access to the bank’s vault. The bank manager opened the vault and gave cash from the vault to Magee. Magee stole $78,643 during this robbery. Magee was apprehended by law enforcement shortly after the robbery hiding in a drainage pipe in a wooded area near the bank. Magee was in possession of the stolen currency and bag with protruding wires, later determined to be Ethernet cables. Magee had driven a loaner Cadillac vehicle, which was located near the scene of the robbery.
After his arrest, a 9mm Kel-Tec handgun loaded with nine rounds of ammunition was recovered from Magee’s personal vehicle.
Judge Fischer scheduled sentencing for November 29, 2018. With respect to each armed bank robbery, the law provides for a maximum sentence of not more than 25 years in prison, a fine of $250,000, or both. With respect to each bank robbery, the law provides for a maximum sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Cranberry Township Police Department, Union Township Police Department, Peters Township Police Department, Pittsburgh Bureau of Police, Chippewa Township Police Department, Monroeville Police Department, and Allegheny County Sheriff’s Office conducted the investigation leading to the guilty plea in this case.
Pennsylvania Man Indicted for Trafficking TurtlesRead the Press Release
A federal grand jury sitting in Philadelphia indicted David Sommers, 62, of Levittown, Pennsylvania for trafficking in protected diamondback terrapins. The indictment charges Sommers with smuggling turtles and submitting false records for a package shipped to Canada and four violations of the Lacey Act for trafficking over 3,500 turtles in interstate commerce.
The USFWS seized over 3,400 diamondback terrapin hatchlings from Sommers’ house in October while executing a search warrant. They were able to coordinate with biologists and return the hatchlings back into their New Jersey native habitat.
Photo Credit: U.S. Fish and Wildlife ServiceThe indictment alleges that throughout 2017 Sommers poached diamondback terrapins and their eggs from coastal marshes in New Jersey. He would then illegally sell the turtles in violation of the Lacey Act. The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits the sale of wildlife that had been taken in violation of law. The indictment also charges that in 2014, Sommers smuggled turtles to Canada and falsely labeled the package by claiming it contained a book.
Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney for the Eastern District of Pennsylvania William M. McSwain, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service (USFWS) announced the indictment today.
“The distinctive coloration and pattern of the diamondback terrapin make it highly susceptible to illegal poaching and smuggling,” said Acting Assistant Attorney General Wood. “The Department of Justice will continue to work with its law enforcement partners to prosecute those who break our nation’s wildlife protection statutes for the sake of illegal profit.”
“Wildlife trafficking decimates many species worldwide and undermines the rule of law,” said U.S. Attorney William M. McSwain. “Through the ongoing collaboration between ENRD, USFWS, and my Office, we have worked hard to stop wildlife trafficking dead in its tracks. Today’s indictment reaffirms our commitment to ending this destructive practice.”
"It is one of the highest priorities for special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement to investigate transnational criminal organizations targeting our native wildlife species. 3,400 protected turtles, native to the United States were interdicted and returned to the wild with cooperation from other federal, state and local agencies to support imperiled wild populations,” said Acting Assistant Director Edward Grace of USFWS’s Office of Law Enforcement.
Diamondback terrapins (Malaclemys terrapin) are a semi-aquatic species of turtle native to brackish waters in eastern and southern United States. They are not found in the wild in Pennsylvania, but have a dwindling habitat range in neighboring New Jersey. The terrapins are prized in the reptile pet trade for their unique, diamond-shaped shell markings. The turtles are protected under New Jersey law and by an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
The United States, Canada, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Due to declining populations, CITES listed the diamondback terrapin as threatened in 2013, and New Jersey banned collecting, possessing, and transporting them in 2016.
If convicted, Sommers faces a maximum sentence of 10 years incarceration on the smuggling charge and five years for the Lacey Act violations. The indictment also seeks to forfeit from Sommers all the turtles involved in the investigation.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The USFWS conducted the investigation with assistance from the New Jersey Division of Fish and Wildlife. The government is represented by Trial Attorney Ryan Connors of the Environmental Crimes Section and Assistant U.S. Attorney Joan Burnes of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Pawtucket Woman Sentenced for Participation in Opioid Prescription ConspiracyRead the Press Release
PROVIDENCE, RI – A Pawtucket woman who admitted to participating with three other individuals in a conspiracy to create fraudulent prescriptions for opioid pills using stolen medical practitioner identification numbers has been sentenced to 24 months in federal prison.
Victoria Rose-Coccia, 29, was also ordered to serve 3 years supervised release upon completion of her term of incarceration. Rose-Coccia pleaded guilty on February 28, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 108 to 135 months. The government recommended the court impose a sentence of 44 months in prison.
According to information presented to the Court, between January 2014 and September 2016, Rose-Coccia participated in a conspiracy to create and fill fraudulent Oxycodone prescriptions. The fraudulently obtained pills were then sold to others.
At the time of her guilty plea, Rose-Coccia admitted to the Court that in addition to assisting in the overall operation of the conspiracy, she filled fraudulent Oxycodone prescriptions in her name which the group then sold.
Three other individuals, Michael Slonski, 48, of Johnston, and David Rose, 59, and Robert Rose, 52, of Providence, have pleaded guilty to charges related to their participation in the conspiracy and are awaiting sentencing.
Rose-Coccia’s sentence is announced by United States Attorney Stephen G. Dambruch and Jeffrey J. Ebersole, Resident Agent in Charge of the United States Food and Drug Administration Office of Criminal Investigations.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Owner of Philadelphia Pain Management Clinic Pleads Guilty to Illegal Distribution of Oxycodone and XanaxRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Arthur Miriana, the owner of a Philadelphia pain management clinic, pled guilty today to conspiracy to distribute and distribution of oxycodone and alprazolam, commonly known as Xanax.
“This defendant significantly contributed to our region’s crippling opioid epidemic,” said U.S. Attorney McSwain. “The misuse of opioids is killing our citizens, and we have to do everything possible to stop the illegal distribution of these deadly drugs under the guise of ‘pain management.’ This defendant was operating nothing more than a corrupt pill mill.”
Miriana, 52, formerly of Medford, New Jersey, owned and operated Life-Line Health and Wellness, purportedly a pain management clinic located at 1341 North Delaware Avenue, in Philadelphia, Pennsylvania. Miriana recruited drug dealers and drug addicts to visit his pain management clinic.
These drug dealers and drug addicts paid $260 to $360 in cash for prescriptions for commonly abused controlled substances such as oxycodone and Xanax. Miriana was not a physician, so he hired Dr. Barbara Schneider to sign these prescriptions. Dr. Schneider did not perform medical examinations as required to lawfully prescribe controlled substances. She typically met with “patients” only as long as it took for her to sign the prescriptions. Additionally, Dr. Schneider gave pre-signed blank prescriptions to Miriana for use when she was not in the office.
Dr. Schneider previously pled guilty to conspiracy to distribute oxycodone and alprazolam, and she is scheduled to be sentenced on September 21, 2018.
The case was investigated by the Drug Enforcement Administration and the Department of Health and Human Services Office of the Inspector General, with assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Timothy M. Stengel.
Ohio Man Pleads Guilty to Cheating NFL Players in $25,000 Charity Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – An Ohio man who defrauded multiple NFL players – including a player for the Kansas City Chiefs – out of nearly $25,000 earmarked for charitable causes, pleaded guilty in federal court today.
Camario A. Richardson, 39, of Maple Heights, Ohio, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of mail fraud.
Richardson claimed to have contacts with Nike and agreed to deliver Nike-branded merchandise to five NFL players. None of the victim players are identified by name in court documents.
The specific charge to which Richardson pleaded guilty involved a Kansas City Chiefs player who paid $6,000 to Richardson to provide 300 Nike-branded backpacks. The backpacks were for a “Book Bag Giveaway” charitable event for children in need of a school backpack at the start of the 2016 school year. Richardson was paid in April 2016, but never delivered any backpacks.
Richardson also admitted that he engaged in the same fraud scheme by taking $17,280 from the players of three other NFL teams, all as payment for backpacks those players planned to give away at similar charitable events. In June 2016, Richardson took $6,480 from a Tampa Bay Buccaneers player and $6,480 from an Indianapolis Colts player, each of whom were promised 300 backpacks that Richardson failed to deliver, and $4,320 from a Cincinnati Bengals player who was promised 200 backpacks that Richardson failed to deliver.
As a result of Richardson’s fraud scheme, all four victim players purchased backpacks from another source for their charitable events.
Richardson also admitted that he engaged in a fraud scheme by taking $1,500 from a San Diego Chargers player in March 2016 for athletic shoes that he failed to provide.
The total fraud loss caused by Richardson’s criminal conduct was $24,780. Under the terms of today’s plea agreement, Richardson must pay $24,780 in restitution to his victims.
Under federal statutes, Richardson is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. 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 Criminal Division Chief Gene Porter. It was investigated by the U.S. Secret Service and the Lee’s Summit, Mo., Police Department.
Ocracoke Man Arrested for Cultivating Marijuana on Federal PropertyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that JAMES DANIEL GARRISH, III was arrested today, July 10, 2018.
GARRISH was named in an Indictment filed on May 2, 2018, charging him with cultivating marijuana on federal property, the Cape Hatteras National Seashore. If convicted of that charge, he would face a maximum term of 5 years imprisonment, a $250,000 fine, and a term of up to three years supervised release following any term of imprisonment. Additionally, GARRISH was charged with introducing plants into the park ecosystem, littering, trespassing, and defacing and damaging real property. Each of these charges carries up to 6 months’ imprisonment, a $5,000 fine, up to one year supervised release, and/or up to 5 years’ probation.
Mr. Higdon stated: “Criminal acts which blemish the beauty of our public seashore and the safety of its visitors will not be ignored,” and he reinforced the committment of his office to partnering with all law enforcement agencies in the Eastern District of North Carolina to keep its communities safe.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case is being conducted by the National Park Service. Assistant United States Attorney Daniel Smith is representing the government.
Ocean City Bank Robber Sentenced to 8 Years in Federal Prison for Brandishing a Gun During the 2016 RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Tyrone D. Pierce, age 60, of Ocean City, Maryland today to eight years in federal prison, followed by five years of supervised release, for brandishing a firearm during a crime of violence, specifically, a bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Ross C. Buzzuro of the Ocean City Police Department; and Interim Worcester County State’s Attorney William H. “Bill” McDermott.
According to his plea agreement, on August 24, 2016, Pierce, who was then employed at a motel in Ocean City, Maryland, robbed a bank in the 12000 block of Coastal Highway, in Ocean City. Specifically, Pierce parked a vehicle in a commercial parking lot near the bank. Pierce, who was clearly wearing a fake beard, was seen by motorists and pedestrians as he walked a circuitous route to the entrance of the bank. After entering the bank, Pierce pulled out a semi-automatic handgun and pointed it at one of the tellers, threatening to shoot the teller if she did not comply with Pierce’s demands for money. Pierce also said there was a bomb near the drive-thru window, although no device was found. Pierce took cash and left the bank, inadvertently leaving a glove on the teller counter that he removed during the robbery.
Crime scene investigators recovered the glove and were able to obtain a DNA specimen. In January 2017, DNA analysis of the specimen was matched to Pierce, who has a 1999 conviction for bank robbery in Salisbury, Maryland, and had previously submitted a DNA sample.
As part of Pierce’s sentence, Judge Blake ordered that Pierce pay restitution of $9,169.
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.
United States Attorney Robert K. Hur praised the FBI, the Ocean City Police Department, and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
New York Man Indicted on Bank Fraud Conspiracy, Producing/Passing Fictitious Obligations, Access Device Fraud, and Aggravated Identity TheftRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announced that a Federal grand jury in Wilmington returned a seven-count indictment charging GIANNI ARMANI VINCENT, age 20, of Brooklyn, New York, with one count of Conspiracy to Commit Bank Fraud, two counts of Producing/Passing Fictitious Obligations, two counts of Access Device Fraud, and two counts of Aggravated Identity Theft.
The indictment alleges that beginning in or around September 2016, and continuing until in or around March 2018, VINCENT and his co-conspirators engaged in a scheme to defraud financial institutions out of money by producing and depositing counterfeit checks into conspirator bank accounts. Additionally, VINCENT is alleged to have been involved in access device fraud by possessing numbers that granted him access to the bank accounts of unsuspecting consumers. According to evidence and testimony presented at VINCENT’s recent detention hearing, when the Cary Police Department and United States Secret Service encountered VINCENT on December 1, 2017, he was in possession of over two-hundred counterfeit checks, a computer with check-writing software, approximately twenty-five counterfeit cards, and more than fifty account numbers, among other things.
If convicted on all counts, VINCENT could face a maximum penalty of sixty-seven years imprisonment, a $1,750,000 fine, and a term of supervised release following any term of imprisonment. His arraignment is currently scheduled for September 2018.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the United States Secret Service.
Multiple Defendants Plead Guilty to Federal Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – Multiple defendants pled guilty to federal methamphetamine charges today, announced United States Attorney Mike Stuart. Stuart praised the efforts of law enforcement agencies working in partnership with his office to fight the recent resurgence of methamphetamine in West Virginia.
“As methamphetamine continues to become the illicit drug of choice throughout southern West Virginia,” said United States Attorney Mike Stuart, “my Office will continue to work with our law enforcement partners to vigorously prosecute meth distributors peddling their poison in our communities. We are going to use every resource available to us to ensure that today’s meth doesn’t become the crisis that opiates have posed to our communities and families.”
TWO PLEAD GUILTY TO ROLES IN FEDERAL DRUG CONSPIRACY
Travis Thomas, 26, and Melody Legg, 43, entered their guilty pleas to an indictment charging them with conspiracy to distribute methamphetamine. The joint investigation was conducted by the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the Kanawha County Sheriff’s Department STOP Team.
Thomas admitted that from at least June 2017 to September 2017, he supplied Melody Legg and others with five grams or more of methamphetamine to distribute for money in Kanawha County. As part of the plea agreement, Thomas admitted to distributing approximately 23 grams of methamphetamine to Melody Legg in August 2017. Legg admitted that from at least June 2017 to September 2017, she distributed methamphetamine for Travis Thomas and others in Kanawha County. She conspired with Travis Thomas, William Naylor, Timothy Boggs, and Michael Ginther to distribute more than 50 grams of methamphetamine in exchange for money.
Thomas faces at least 5 years but not more than 40 years in federal prison and Legg faces 10 years to life in federal prison when they are sentenced on October 3, 2018.
The plea hearings were held before United States District Judge Joseph R. Goodwin. Assistant United States Attorney Stephanie S. Taylor is in charge of the prosecutions.
CHARLESTON MAN PLEADS GUILTY TO DISTRIBUTION OF METHAMPHETAMINE
CHARLESTON, W.Va. -- Charles Smith, 42, of Charleston, pled guilty today before United States District Court Judge John T. Copenhaver, Jr., to distribution of 50 grams or more of methamphetamine. The Drug Enforcement Administration (DEA) and the Kanawha County Sheriff’s Department conducted the investigation.
Smith admitted to providing approximately 5 ounces of methamphetamine to a confidential informant working with the DEA in exchange for $1800 on January 30th of this year. The transaction occurred on the parking lot of the Save-A-Lot Store on Virginia Street west in Charleston.
Smith faces from 10 years to life imprisonment and a $10,000,000 fine when he is sentenced on October 16, 2018. AUSA John Frail is handling the prosecution.
BOONE COUNTY MAN PLEADS GUILTY TO METHAMPHETAMINE CHARGE
Larry Dingess, 49, of Nellis, Boone County, also pled guilty before United States District Court Judge John T. Copenhaver, Jr., to possessing methamphetamine for distribution. The Boone County Sheriff’s Department conducted the investigation.
Dingess admitted that on March 17, 2016, he was found to be in possession of a large quantity of methamphetamine during a search of his person by members of the Boone County Sheriff’s Department. Deputy Sheriff’s had gone to Dingess’ Nellis home to arrest him on an unrelated warrant when he was found in possession of methamphetamine.
Dingess faces from 5 to 40 years imprisonment and a $5,000,000 fine when he is sentenced on October 11, 2018.
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###Milford Woman Pleads Guilty to Stealing $2.7 Million from EmployerRead the Press Release
BOSTON – A Milford woman pleaded guilty today in federal court in Boston to stealing approximately $2.7 million from her employer, and then using the money to purchase luxury items, many of which she resold to consignment shops.
Debra Mulloy, a/k/a Debra Depaul, 57, pleaded guilty to two counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Oct. 9, 2018.
From 2004 through 2016, Mulloy was responsible for most of the financial and organizational duties at the company for which she was employed. On multiple occasions from April 2012 to December 2016, Mulloy used the company’s credit card account in the name of another employee to make hundreds of unauthorized charges totaling nearly $2.4 million. Most of those unauthorized purchases were for clothing, furs, and jewelry at boutique stores in the Boston area. Mulloy then sold many of the luxury items at consignment shops. As part of her scheme, Mulloy also caused company checks to be issued for her personal benefit, primarily to pay her personal credit card bills. In total, Mulloy defrauded her employer of approximately $2.7 million.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. The charge of aggravated identity theft provides for a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Middlesex County Man Gets 10 Years in Prison for Conspiracy to Distribute over 140 Kilograms of Heroin and CocaineRead the Press Release
TRENTON, N.J. – An Edison, New Jersey, man was sentenced today to 120 months in prison for his role in a conspiracy to distribute 140 kilograms of narcotics in New Jersey, U.S. Attorney Craig Carpenito announced.
Gemal Singleton, 41, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin and five kilograms of cocaine. Judge Martinotti imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Singleton, Siddeeq Q. Williams, 40, of Cranford, New Jersey, and others arranged for cocaine and heroin to be shipped to New Jersey via tractor trailer. On Aug. 27, 2017, the tractor-trailer arrived in New Jersey and was pulled over by law enforcement after the driver committed several traffic violations.
A subsequent search of the tractor-trailer recovered five large duffle bags containing a total of 56 kilograms of heroin and 85 kilograms of cocaine. Singleton and Williams admitted that they were supposed to meet the tractor-trailer to collect the narcotics for eventual distribution.
In addition to the prison term, Judge Martinotti sentenced Singleton to five years of supervised release. Williams has also pleaded guilty to his role in the scheme and awaits sentencing.
U.S. Attorney Carpenito credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Meredith Williams, Co-Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Robert DeGroot Esq., Newark
Michigan City Man Sentenced to 96 Months in PrisonRead the Press Release
SOUTH BEND – Faheem Pasha, age 38, of Michigan City, Indiana was sentenced before District Court Judge Robert L. Miller, Jr. for being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Pasha was sentenced to 96 months in prison followed by 2 years of supervised release.
According to documents in this case, on or about January 12, 2018, Pasha, who was previously convicted of a felony offense in LaPorte County, possessed and sold a firearm to an individual. Other documents in the case show that he has been convicted of felonies on four prior occasions, had probation revoked three times, and had eleven misdemeanor convictions before possessing the firearm in this case. He also had four cases pending at the time.
This case was investigated by the ATF with assistance from the LaPorte County Drug Task Force and Michigan City Police Department, and was handled by Assistant U.S. Attorney Frank Schaffer.
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Mexican National Pleads Guilty to Distribution of Methamphetamine and an Immigration OffenseRead the Press Release
LEXINGTON, Ky. — Jose Jesus Navarro-Rios, a.k.a. “La Daga,” a Mexican National illegally residing in Lancaster, Ky., has pled guilty to three counts of distributing more than 500 grams of Methamphetamine and to unlawfully reentering the United States after previously being deported.
In his guilty plea, Navarro-Rios admitted that, on three occasions in the Spring of 2018, he sold methamphetamine in excess of 500 grams, to a cooperating witness for law enforcement. During the course of the joint federal and state investigation, law enforcement agents seized more than 12 pounds of methamphetamine, worth more than $125,000. Navarro-Rios admitted that he was unlawfully present in the United States, after being deported for a prior federal conviction for unlawfully reentering the United States, in 2013.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky; Angela L. Byers, FBI Cincinnati; Amy Hess, FBI Louisville; Kristoffer Cortex, Acting Assistant Field Office Director, ICE; and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by FBI, KSP and ICE. The United States was represented in the case by Assistant United States Attorney Roger W. West.
Navarro-Rios is currently scheduled to appear for sentencing, in Lexington, on November 2, 2018, at 1:00 p.m. Navarro-Rios faces a prison sentence of not less than ten years nor more than Life imprisonment. However, any sentence will be imposed by the Court, after its consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Meriden Man Pleads Guilty to Running Cocaine and Crack Ring While IncarceratedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that WESTLEY NORTHRUP, also known as “Piff,” 30, of Meriden, pleaded guilty yesterday in Hartford federal court to one count of conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base (“crack”).
This matter stems from a joint investigation headed by the DEA New Haven Task Force that has included the use of court-authorized wiretaps, controlled purchases of crack cocaine, and seizures of cocaine and cash proceeds. The investigation revealed that NORTHRUP operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody at the Cheshire Correctional Institution. The investigation, which included consensually-recorded prison calls, revealed that NORTHRUP conspired with others to purchase cocaine from suppliers, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers in central Connecticut.
On July 20, 2017, a grand jury in New Haven returned a nine-count indictment charging NORTHRUP and 10 other individuals with various offenses.
NORTHRUP faces a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 24, 2018.
This matter is being investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Marion County man indicted on drugs and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – William A. Six, of Fairmont, West Virginia, was indicted today by a federal grand jury on charges of heroin, cocaine, and methamphetamine distribution and firearms violations, United States Attorney Bill Powell announced.
Six, age 27, is charged with one count of “Distribution of Heroin,” two counts of “Distribution of Cocaine Base,” two counts of “Possession of a Stolen Firearm,” two counts of “Unlawful Possession of a Firearm,” one count of Possession of a Firearm in a School Zone,” and one count of “Distribution of Methamphetamine.” Six is accused of selling heroin, cocaine, and methamphetamine in Marion County in August and September 2017. Six, having previously been convicted of two felonies, is also accused of having a 12-gauge shotgun, and a semi-automatic rifle, both believed to be stolen, on the grounds of Washington Irving Middle School in Harrison County in September 2017.
Six faces up to 20 years incarceration and a fine of up to $1,000,000 for each of the drug charges. Six faces up to 10 years incarceration and a fine of up to $250,000 for the stolen firearms charge and the unlawful possession of a firearms charge, and faces up to five years incarceration and a fine of up to $250,000 for the firearms in a school zone charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Three Rivers Drug Task Force, and the Fairmont Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Malden Man Pleads Guilty to Defrauding EmployerRead the Press Release
BOSTON – A Malden man pleaded guilty yesterday in federal court in Boston to his role in a wide-ranging conspiracy to defraud his employer, a large facilities services company with offices in the Greater Boston area.
Lou Amaral, 52, pleaded guilty to one count of conspiracy to commit honest services mail fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of tax evasion. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Oct. 9, 2018. Co-defendant Vence Pires, 58, also of Malden, was charged with one count of conspiracy to commit wire fraud and is scheduled to plead guilty on July 12, 2018.
Amaral and Pires worked for the same facilities services company in the Greater Boston area. Amaral was the supervisor of the Special Services Department, and as such, he had the ability to hire employees and to contract with third-parties to provide temporary labor. Pires was an account manager who worked for Amaral in Special Services. Amaral first began taking bribes from a temporary labor company in order to steer contracts to that company. In 2014, Amaral opened up his own temporary labor company and, with the help of Pires, awarded himself the temporary labor contracts. Through this scheme, Amaral made approximately $10 million in revenue over a three-year period, resulting in harm to his employer of more than $4 million.
Amaral faces a maximum sentence on the conspiracy and money laundering counts of up to 20 years in prison, three years of supervised release and a fine of $250,000 on each count. The charge of tax evasion provides for a sentence of up to five years in prison, one year of supervised release, and a fine of $100,000. Amaral has agreed to forfeit approximately $2 million that has been seized from him. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case.
MS-13 Member Sentenced for RICO Conspiracy and Drug TraffickingRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston on drug trafficking and RICO conspiracy charges.
Edgar Pleitez, a/k/a “Cadejo,” 28, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to five years in prison and four years of supervised release. In March 2018, Pleitez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to distribute 100 grams or more of heroin.
Pleitez, who was a “homeboy” or full member of MS-13’s East Boston Loco Salvatrucha clique, conspired with other MS-13 members to distribute heroin and further the criminal activities of MS-13. In 2015, a cooperating witness made three separate purchases of heroin from Pleitez. Pleitez was arrested and charged in January 2016 following a three-year investigation which targeted dozens of leaders, members, and associates of MS-13 in Massachusetts. While numerous defendants committed violent acts on behalf of the gang, other defendants, including Pleitez, engaged in other criminal activity, such as drug trafficking, to help finance the operations of the gang.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Long Beach Man Sentenced to over 26 Years in Prison for Leading Counterfeit Opioid Scheme that Distributed Fentanyl AnalogueRead the Press Release
LOS ANGELES – The leader of a narcotics distribution ring that imported a powerful fentanyl analogue from China and produced hundreds of thousands of opioid pills that were distributed in bulk across the nation was sentenced yesterday to 320 months in federal prison.
Gary Resnik, 33, of Long Beach, led a conspiracy that imported acetylfentanyl, a drug very similar to fentanyl, a powerful and highly addictive opioid. Acetylfentanyl, which is many times more potent that heroin, is not approved for any legal use in the United States.
Resnik pled guilty in August 2017 to two felony offenses – conspiracy to manufacture and distribute narcotics (including acetylfentanyl and ecstasy), and possession with the intent to distribute acetylfentanyl.
According to court documents, Resnik “was the leader of a conspiracy to manufacture, possess with intent to distribute, and distribute hundreds of thousands of pills designed to look like legitimate pharmaceuticals such as Vicodin and OxyContin, but which actually contained highly potent, illegal drugs that defendant imported from China,” including acetylfentanyl, ecstasy, alprazolam, and a designer drug known on the street as PVP.
“Resnik led a sophisticated operation that used dangerous Chinese-made chemicals to manufacture counterfeit pharmaceuticals,” said United States Attorney Nick Hanna. “Through his makeshift labs, he put thousands of fentanyl analogue pills on the streets, risking the lives of unsuspecting people. This sentence is well-deserved.”
When he pled guilty last year, Resnik admitted to importing from China bulk chemicals, including acetylfentanyl, that were used to manufacture opioid pills. His drug organization also illegally imported pill presses from China that were used to make pills in homemade labs in a Long Beach storage unit and Baldwin Park house. Resnik acknowledged that drug enforcement agents seized over 11 kilograms of acetylfentanyl from the Long Beach lab in addition to other large quantities of acetylfentanyl and other illegal drugs from both labs.
“Mr. Resnik preyed on our communities by flooding our streets with fentanyl. Today’s lengthy prison sentence is appropriate and further emphasizes the dangers that fentanyl and opioids pose to our communities,” said DEA Los Angeles Acting Special Agent in Charge Daniel C. Comeaux. “The DEA will tirelessly collaborate with our local, state and federal counterparts to take vicious drug traffickers, like Mr. Resnik, off the street.”
Over the course of nine months in 2015 and 2016, Resnik’s organization sold approximately 40,000 to 45,000 pills each month, for between $4 to $8 per pill, according to prosecutors.
On one occasion during the course of an investigation by the Drug Enforcement Administration, authorities seized narcotics – including thousands of opioid pills containing acetylfentanyl, alprazolam pills, and ecstasy pills – from a man who had just purchased the drugs from members of the drug-trafficking organization operated by Resnick.
A co-defendant in this case – Christopher Bowen, 32, of downtown Los Angeles – was sentenced in May of this year to 320 months in federal prison for participating in the drug-trafficking conspiracy.
The case was investigated by agents with the Drug Enforcement Administration with substantial assistance from the Huntington Beach Police Department.
This case was prosecuted by Assistant United States Attorneys Michael G. Freedman of the Organized Crime Drug Enforcement Task Force Section and David Ryan of the General Crimes Section.
Levittown Man Indicted for Trafficking Protected TurtlesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Levittown, PA man was indicted today for trafficking in protected diamondback terrapins. David Sommers, 62, was charged with smuggling turtles and submitting false records for a package shipped to Canada. He was also indicted for four violations of the Lacey Act for trafficking over 3,500 turtles in interstate commerce.
The indictment alleges that throughout 2017, Sommers poached diamondback terrapins and their eggs from coastal marshes in New Jersey. He would then illegally sell the turtles in violation of the Lacey Act, the nation’s oldest wildlife trafficking statute. The Lacey Act makes it a federal crime to break the wildlife laws of any state, tribe, or foreign country and then move or trade the wildlife across U.S. borders. The indictment also charges that in 2014, Sommers smuggled turtles to Canada and falsely labeled the package by claiming it contained a book.
Diamondback terrapins (Malaclemys terrapin) are a semi-aquatic species of turtle native to brackish waters in eastern and southern United States. They are not found in the wild in Pennsylvania but have a dwindling habitat range in neighboring New Jersey. The terrapins are prized in the reptile pet trade for their unique, diamond-shaped shell markings. The turtles are protected under New Jersey law and by an international treaty, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”).
The United States, Canada, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Due to declining populations, CITES listed the diamondback terrapin as threatened in 2013, and New Jersey banned collecting, possessing, and transporting them in 2016.
Along with U.S. Attorney McSwain, today’s indictment was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service (“USFWS”).
If convicted, Sommers faces a maximum sentence of 10 years’ imprisonment on the smuggling charge and five years’ imprisonment for each of the Lacey Act violations (for a total of 35 years). The indictment also seeks to forfeit from Sommers all the turtles involved in the investigation.
This case was investigated by the USFWS with assistance from the New Jersey Division of Fish and Wildlife. It is being prosecuted by trial attorney Ryan Connors of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Joan E. Burnes.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Laurel Felon Sentenced to 9 Years in Federal Prison for Drug Dealing and Illegal Possession of FirearmsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced James E. Goldsberry, age 35, of Laurel, Maryland today to nine years in prison, followed by three years of supervised release, for possession with intent to distribute heroin and cocaine, possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime. A federal jury convicted Goldsberry of those charges on March 15, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; and Chief Gary L. Gardner of the Howard County Police Department.
According to the evidence presented at his four day trial, on September 20, 2016 Howard County Police officers conducted a search of Goldsberry’s residence, where he lived with his girlfriend and three children, locating Goldsberry in his bed. Officers recovered $893 cash in rolled up bills located along the front railing of the bed. On the bed’s left railing, immediately next to where Goldsberry had been found, was his cell phone. Near the phone, also on the left bedrail, was a sandwich bag containing 10 clear ziploc baggies of heroin and three small ziploc baggies of cocaine. On the floor, near the top of the left hand side of the bed, police found a 9mm caliber pistol, with the frame of the gun on the floor and the grip positioned up towards the ceiling. The gun was loaded with 17 rounds of ammunition.
Witnesses testified that more guns and drugs were found in the master bedroom closet, including: a 10mm pistol; two extra barrels; two extended magazines, one loaded with 13 rounds of hollowpoint ammunition; and a.38-caliber revolver. A black plastic bag which contained 100 small baggies of cocaine, 25 more baggies of heroin, and a larger sandwich bag filled with heroin was found on a shelf in the closet. The packaging of the cocaine and heroin found in the closet matched that of the baggies found on the bedrail next to Goldsberry. Additional drug paraphernalia was found in other areas of the residence, including a digital scale and hundreds of unused baggies.
According to the trial evidence, police downloaded text messages to and from Goldsberry’s phone that were indicative of drug trafficking and used coded language commonly used by drug traffickers and their customers. For example, Goldsberry sent three text messages to three different customers advertising that he had obtained some high-quality drugs, or “got some good,” as he put it.
Officers recovered a total of approximately 11.29 grams of heroin and 16.85 grams of cocaine, mostly in the bedroom, with a street value of approximately $1,500 to $2,000. In addition, officers recovered three firearms from the bedroom. Goldsberry had a previous felony conviction and was prohibited from possessing firearms or ammunition.
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.
United States Attorney Robert K. Hur praised the ATF and Howard County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Burden H. Walker and Daniel C. Gardner, who prosecuted the case.
Las Vegas Man Sentenced to 27 Years in Prison for Drug TraffickingRead the Press Release
Abingdon, VIRGINIA – A Las Vegas man, who trafficked methamphetamine and oxycodone from Nevada to Virginia and laundered the proceeds, was sentenced last week in U.S. District Court in Abingdon to 324 months in prison, United States Attorney Thomas T. Cullen announced.
Richard Henry Kayian, 57, was found guilty by a jury in November 2017 of one count of conspiracy to distribute 500 grams of methamphetamine and oxycodone, and one count of money laundering. In addition, Kayian was ordered to pay a forfeiture money judgment in the amount of $743,441.
The investigation leading to Kayian’s conviction was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigations, and state and local law enforcement in Southwest Virginia and Las Vegas, Nevada. This collaborative law enforcement effort resulted in 31 defendants entering guilty pleas or being found guilty of crimes related to the distribution of methamphetamine and opioids in Nevada, Virginia and Kentucky.
According to evidence presented at Kayian’s trial and other hearings by Assistant United States Attorney Zachary T. Lee, law enforcement agencies in Virginia and Nevada charged 32 individuals in late 2016 with conspiring to distribute methamphetamine, oxycodone, and buprenorphine and money laundering. Evidence demonstrated that Kayian was responsible for recruiting distributors for the drug trafficking organization and sending large quantities of methamphetamine and oxycodone via UPS and Federal Express to numerous locations in Abingdon, Virginia and Glade Spring, Virginia. These drugs, along with buprenorphine, were then distributed throughout the Southwest Virginia and in Eastern Kentucky by members of the drug trafficking organization. Additionally, evidence gained from the investigation demonstrated that more than $1,000,000 in proceeds from the drug sales in the Abingdon area were sent via wire transfers and bank deposits to Kayian and others in Las Vegas.
Operation Leaving Las Vegas has resulted in the following sentences:
- Tracey Allen Callihan, 49, of Glade Spring, Virginia - 324 months imprisonment and ordered to pay a forfeiture money judgment of $30,000.00 for one count of conspiracy to distribute 500 grams or more of methamphetamine and oxycodone, and one count of money laundering.
- Brandon Lee Stone, 33, of Abingdon, Virginia – 300 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Misael Reyes Tajimaroa, 32, of Spokane, Washington – 192 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Bradley Lee Chapman, 28, of Bristol, Virginia - 135 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Kaitlynn Elizabeth Chapman, 26, of Bristol, Virginia – 72 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- John Williams, 50, of Glade Spring, Virginia – 18 months imprisonment and a $2,500 fine for one count of conspiracy to use a communications facility to facilitate a drug trafficking offense.
- Rebecca Williams, 51, of Abingdon, Virginia – 108 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Heather Michelle Sullins, 27, of Abingdon, Virginia – 30 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine.
- Alex Michael Kayian, 23, of Bristol, Virginia - 72 months imprisonment for one count of conspiracy to distribute methamphetamine, oxycodone and buprenorphine, and one count of money laundering.
- Ralph Stewart Dingus, 27, of Abingdon, Virginia - 37 months imprisonment for one count of conspiracy to distribute methamphetamine.
- John Dewayne Farmer, 32, of Abingdon, Virginia - 240 months imprisonment for one count of conspiracy to distribute methamphetamine and one count of money laundering.
- Lola Virginia Farmer, 52, of Abingdon, Virginia - 87 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Shauna Nicole Chafin, 36, of Abingdon, Virginia - 97 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine, oxycodone and buprenorphine.
- William Wesley Fleenor, 29, of Abingdon, Virginia - 79 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Jeffrey Nathaniel Gobble, 25, of Abingdon, Virginia - 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Preston Kyle Lawson, 21, of Abingdon, Virginia - 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Gary Chapman, 47, of Clay City, Kentucky - 151 months imprisonment for one count of conspiracy to distribute 500 grams or more of methamphetamine.
- Daniel Corey Cantrell, 25, of Abingdon, Virginia - 37 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Tanner Morris Curd, 23, of Meadowview, Virginia - 84 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Amy Lorene Moser, 52, of Abingdon, Virginia -100 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Steven Salyer, 27, of Abingdon, Virginia - 87 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Brandon Cody Trivett, 23, of Abingdon, Virginia - 30 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Brian Edward Widener, 30, of Abingdon, Virginia – 46 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Justin Lowe, 24, of Abingdon, Virginia – 41 months imprisonment for one count of conspiracy to distribute methamphetamine.
- Lamar Skipper, 27, of Chilhowie, Virginia - four years probation for one count of conspiracy to distribute oxycodone and one count of money laundering
- Gary Brandon Childress, 25, of Abingdon, Virginia - three years probation. for one count of conspiracy to distribute oxycodone.
- Austin Obranovic Boardwine, 24, of Abingdon, Virginia - four years probation for one count of conspiracy to distribute oxycodone and buprenorphine.
- Caleb Dean, 28, of Damascus, Virginia – 48 months imprisonment for one count of conspiracy to distribute methamphetamine and oxycodone.
- Charlene Hale, 25, of Bristol, Tennessee – four years probation for one count of conspiracy to distribute methamphetamine and oxycodone.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Las Vegas Metropolitan Police Department, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Lancaster Resident Pleads to Federal Firearm Charges Relating to Firearms Stolen from National Guard ArmoryRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Brandon Shane Polston, age 32, of Lancaster, plead guilty in federal court to being a felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e), and to possession of machineguns and a destructive device not registered to him in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. Co-defendants Austin Lee Ritter, age 23, and Kimberly Denise Cannon, age 40, both of Lancaster, each plead guilty to the same charges on June 25, 2018. United States District Judge Michelle Childs, of Columbia, accepted the guilty pleas and will impose sentences after she has reviewed the presentence reports, which will be prepared by the United States Probation Office.
Evidence presented in court established that on the early morning hours of November 26, 2017, an officer with the Lancaster Police Department conducted a traffic stop of a vehicle driven by co-defendant Cannon after observing her littering. Further investigation during the traffic stop revealed the following inside the vehicle: a FNH, model M249, 5.56mm machinegun, two (2) Colt, model M-16, 5.56mm machineguns, two (2) Beretta, model M9, 9mm pistols, a Colt, model M203, 40mm grenade launcher (“destructive device”), night vision goggles, and various military items stolen from the Lancaster National Guard Armory. Officers also recovered various items stolen from WalMart, including an employee identification badge and employee vest.
After the traffic stop, Polston and a co-defendant Ritter were located at the a local motel and found in possession of a small quantity of methamphetamine. A review of surveillance video from the motel showed Polston and his co-defendants Ritter and Cannon bringing the bags containing the firearms back and forth between the vehicle and the motel room. Additionally, searches of Ritter and Cannon’s cell phones revealed various photos and text messages relating to the stolen firearms. One of the photos appeared to be a “selfie” of Ritter sitting in the front seat of a vehicle with Polston sitting in the rear seat beside a M-16 machinegun. During the investigation, both Ritter and Cannon advised agents that Polston took them to an area near a residential complex where they retrieved bags containing the stolen firearms from a ditch.
Polston and his co-defendants Ritter and Cannon are all prohibited under federal law from possessing firearms and ammunition based upon their prior state convictions. Polston has prior convictions for breaking into autos (2 counts), malicious injury to person property over $2,000, but less than $10,000, assault and battery 1st degree, burglary 2nd degree (2 counts), receiving stolen goods over $2,000 but less than $10,000, and property offense 3rd or subsequent. Polston was released from the South Carolina Department of Corrections in February 2017.
Polston, like co-defendants Ritter and Cannon, faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on each of the firearm charges.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster Police Department, and the South Carolina State Law Enforcement Division (SLED) and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Kentucky Truck Driver, Prior Sex Offender, Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Kentucky truck driver and prior sex offender was indicted by a federal grand jury today for transporting child pornography.
Gregory Marshall, 57, of Paducah, Ky., was charged by a federal grand jury in Springfield, Mo., with one count of transporting child pornography. Today’s indictment replaces a federal criminal complaint that was filed against Marshall on June 21, 2018. Marshall was convicted of sodomy involving a 14-year-old victim in Kentucky in 1995.
According to an affidavit filed in support of the original criminal complaint, a Missouri State Highway Patrol trooper stopped the tractor trailer Marshall was driving on U.S. Highway 60 in Wright County, Mo., on June 17, 2018. While searching the sleeper berth of the tractor, the affidavit says, the trooper discovered a laptop computer and an external hard drive that contained child pornography.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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."
KC Man Pleads Guilty to Kidnapping, TortureRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to kidnap and torture an Independence, Mo., man.
Randal G. Holmes, also known as “Peckerwood” or “Wood,” 53, pleaded guilty before U.S. Chief District Judge Greg Kays to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime.
According to today’s plea agreement, Holmes’s co-conspirators purchased at least 120 pounds of marijuana from a source in Colorado, for which they made more than a dozen trips between Colorado and Kansas City. Holmes received $100 for every pound of marijuana brought back to Kansas City because of his prior connection to the source in Colorado. On Sept. 12, 2016, Holmes and other conspirators agreed to kidnap the victim, a co-conspirator in the drug-trafficking conspiracy identified in court documents as “C.H.,” because he stole money that was intended for the purchase of marijuana.
Holmes arrived at the Independence, Mo., residence of the victim’s father, identified as “W.H.,” on Sept. 12, 2016. Conspirators told W.H. to call C.H. and tell him he was being held at gunpoint and that C.H. needed to come to the residence right away. When C.H. arrived at the residence, Holmes pointed a firearm at him and told him to get into his vehicle. While in the vehicle, a co-conspirator struck, punched and choked C.H. as Holmes drove away.
They took C.H. to Holmes’s residence, where they were met by a third co-conspirator. C.H. was taken to the basement, where he was assaulted with fists, a hammer and tin snips/clippers. During the assault, Holmes repeatedly demanded that C.H. disclose where the duffle bag containing the money was located. Holmes left to retrieve the duffle bag while a co-conspirator held C.H. at gunpoint.
Holmes later drove C.H. to a rural residence near Edwards, Mo. As Holmes drove them to the residence, a co-conspirator continued to strike C.H. with fists and the butt of a firearm. When they arrived at the residence, C.H. was told to call his father and to tell him that he was okay, that he had taken a beating, that he would be home in a couple of days and that he deserved what had happened.
Law enforcement officers were able to trace the telephone call and on Sept. 13, 2016, officers were able to locate C.H. and arrest Holmes. Officers observed that C.H. had suffered multiple, visible injuries to his face, head, hands and feet. Officers noted that C.H. had trouble walking, that his face was black and blue, as well as swollen with traces of dried blood. Upon receiving medical treatment, it was determined that C.H. had also suffered a fracture in his left hand.
Officers found a Jimenez Arms 9mm pistol in Holmes’s vehicle and a Hi-Point 9mm pistol in the residence where C.H. had been held. Officers also found an FN Herstal .40-caliber pistol, a Remington .270-caliber rifle, an RG .22-caliber revolver, a Ruger .22-caliber rifle, a Mossberg .20-gauge shotgun, 36.4 grams of marijuana and drug paraphernalia in a co-conspirator’s residence.
Under federal statutes, Holmes is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. 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 Brad K. Kavanaugh. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Benton County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Johnstown Residents Charged with Violating Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. – Two Cambria County residents were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The indictment named Alissa N. Mosley, 29, and Justin R. Guillarmod, 35, of Johnstown, Pa.
According to the indictment presented to the court, on July 27, 2017, Mosley and Guillarmod did possess with intent to distribute more than 100 grams of heroin. Also, on July 27, 2017, Guillarmod was found in possession of a Taurus Magnum .357 caliber revolver. On Dec. 2, 2014, Guillarmod was convicted in the Court of Common Pleas of Cambria County, PA, of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum sentence for Mosley of 40 years in prison and a fine of $5,000,000 or both. The law provides for a maximum sentence for Guillarmod of 50 years in prison and a fine of $5,250,000 or both Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Mosley and Guillarmod.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Henderson Man Sentenced for Felon in Possession ChargeRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, AQUILLA BROWN, 27, of Henderson, North Carolina, was sentenced by Judge Louise W. Flanagan to 105 months imprisonment followed by 3 years of supervised release.
BROWN was named in an Indictment on June 27, 2017 charging him with Possession of a Firearm and Ammunition by a Felon. On February 15, 2018, BROWN pled guilty to the charge.
On March 15, 2017, the Henderson Police Department (HPD) initiated a traffic stop on a vehicle for traffic infractions. BROWN was a passenger in that vehicle. After obtaining identification from the driver and BROWN, the HPD became aware of the frequent alleged drug-trafficking activities by BROWN. Based on this information, a K-9 unit responded to the scene and made a positive alert to the presence of narcotics on BROWN’S side of the vehicle. BROWN stated that he smoked marijuana prior to entering the vehicle. As both occupants exited the vehicle, law enforcement observed the driver attempt to hide an object in her boot which was discovered to be a firearm. BROWN acknowledged ownership of the firearm, a .38 caliber revolver, which was loaded at the time.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Haverstraw Man Sentenced in Manhattan Federal Court to 10 Years for Distributing Narcotics Causing December 2016 Overdose of Queens VictimRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ROBERT DIAZ, a/k/a “Facey,” a/k/a “Face,” was sentenced today by U.S. District Judge Alison J. Nathan to 120 months in prison for distributing heroin and other narcotics, including heroin that caused serious bodily injury to a victim who overdosed from using the heroin and was revived only after the administration of naloxone. DIAZ pled guilty on February 14, 2018, before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For years, Robert Diaz peddled heroin and other drugs in and around Rockland County, contributing to the opioid crisis plaguing our community today and causing at least one victim to overdose. Today’s sentence should serve as a message to those seeking to profit off of this tragic epidemic.”
According to the Indictment filed in Manhattan federal court, previous court filings, and statements made at public court proceedings:
DIAZ and eight co-defendants – Rene Sanchez, a/k/a “Renny,” Pablo Perez, a/k/a “Menor,” Christian Cardenas, a/k/a “Chris,” a/k/a “Spoonie,” David Almonte, a/k/a “Elli,” Ronald Bolanos, a/k/a “Ronny,” a/k/a “ET,” Rolando Paulino, a/k/a “Santana Paulino,” Theresa Keefe, a/k/a “Terry,” and Nicole Munderville, a/k/a “Nicki” – were charged with participating in a drug trafficking organization that distributed significant quantities of narcotics, including heroin, fentanyl, cocaine, and crack cocaine, in and around Rockland County, New York, and obtained those narcotics for resale from the Bronx, Brooklyn, and Queens, New York.
DIAZ sold retail quantities of drugs to users in Rockland County during the period from approximately 2012 to approximately May 2017. On or about December 15, 2016, DIAZ provided heroin to an individual (“Victim-1”) who overdosed after using the heroin. Medical personnel were required to administer naloxone to reverse the effects of the overdose, saving Victim-1’s life.
On multiple occasions during the course of the conspiracy, DIAZ indicated that he was well aware that the narcotics he and others were distributing contained fentanyl, were particularly dangerous, and had caused adverse reactions in multiple drug customers, including the overdose of Victim-1. DIAZ nevertheless continued obtaining and selling heroin, expressing on one occasion, subsequent to Victim-1’s overdose, that his customers were doing the “fentanyl dance” and that he had a “new connect” for “straight up fentanyl” that his customers “love[d].”
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In addition to his prison sentence, DIAZ, 50, was sentenced to four years of supervised release.
Pablo Perez, Ronald Bolanos, and Theresa Keefe previously pled guilty and were sentenced to 90 months, 80 months, and 40 months in prison, respectively. Rene Sanchez, Christian Cardenas, Rolando Paulino, and Nicole Munderville previously pled guilty and are awaiting sentencing.
Mr. Berman praised the investigative work of the Drug Enforcement Administration and the Rockland County Drug Task Force, and thanked the Rockland County District Attorney’s Office for their assistance in this investigation.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Elizabeth Hanft, Jane Kim, and Jason Richman are in charge of the prosecution.
Hartshorne Man Sentenced to 60 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Smith, age 56, of Hartshorne, Oklahoma was sentenced to 60 months imprisonment and 4 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). The charge arose from an investigation by the Hartshorne Police Department, the Pittsburg County Sheriff’s Office, and the District 18 Drug Task Force.
The Indictment alleged that on or about November 16, 2017, within the Eastern District of Oklahoma, the Defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Local law enforcement agencies and communities deal daily with the tragedy caused by methamphetamine, while dealers reap the financial benefits. The Hartshorne Police Department, Pittsburg County Sheriff’s Office, and the District 18 DA Drug Task Force worked together to professionally and thoroughly investigate the defendant’s unlawful activities. As a result, the dedicated members of this office were able to successfully prosecute him and he is being held accountable.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Hartford Man Admits to Selling Heroin to Farmington and Avon Overdose VictimsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JOSHUA HOLLOWAY, 25, of Hartford, waived his right to be indicted and pleaded guilty today in Hartford federal court to two counts of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on February 16, 2017, Farmington Police and emergency medical personnel responded to a residence in Farmington where they encountered an unresponsive 24-year-old male. Life saving measures were attempted, but the male was pronounced deceased at the scene. A family member informed investigators that the victim had an opiate addiction. Officers did not locate evidence related to drug use, but seized the victim’s cellphone.
The Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim’s death was caused by “acute heroin and fentanyl toxicities, alcohol and sertraline use.”
Witness interviews and analysis of the seized cellphone revealed that HOLLOWAY supplied heroin/fentanyl to the victim on February 15, 2017, in Hartford.
The investigation revealed that HOLLOWAY also sold heroin/fentanyl to a man in Avon on February 11, 2017. The purchaser ingested some of the heroin HOLLOWAY sold him and died shortly thereafter of an acute intoxication due to the combined effects of fentanyl, alpazolam and etizolam.
HOLLOWAY was arrested on a federal criminal complaint on January 23, 2018.
HOLLOWAY is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 11, 2018. The offense carries a maximum term of imprisonment of 20 years, on each count. HOLLOWAY is released on a $50,000 bond pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Farmington and Avon Police Departments. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Guatemalan national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Jose Antonio Alarcon-Mazariegos, 44, a Guatemalan national formerly residing in Cambridge, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 15 months in prison and three years of supervised release. Upon his release, Alarcon-Mazariegos will be subject to deportation proceedings. On April 3, 2018, Alarcon-Mazariegos pleaded guilty to one count of illegal reentry of a deported alien.
According to court documents, law enforcement officers in Cambridge encountered Alarcon-Mazariegos on Oct. 7, 2017, and determined him to be illegally present in the United States. Alarcon-Mazariegos was previously deported on April 2, 2004, Aug. 5, 2004, and May 28, 2005.
United States Attorney Andrew E. Lelling and Rebecca Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Green Bay Woman Indicted for Income Tax SchemeRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Alma Ramirez (age 40) of Green Bay appeared in federal court in Green Bay to answer charges brought against her in a 29-count indictment. Specifically, Ms. Ramirez is charged with 5 counts of wire fraud, 5 counts of aggravated identity theft, and 19 counts of assisting in the filing of false federal income tax returns.
According to the indictment, during the period from March 2013 through May 2016, Ms. Ramirez, and others working with her and at her direction, prepared and filed more than 60 false federal income tax returns in the names of various individuals fraudulently seeking more than $300,000 in federal income tax refunds. These tax returns included false information concerning the taxpayer’s employment, wages, and the amount of federal income taxes that had been withheld from those wages, dependents, and the taxpayer’s eligibility for various tax credits.
The indictment also alleges that Ramirez committed identity theft by using without lawful authority the names and social security numbers of individuals to commit her fraud scheme. If convicted of the wire fraud offenses Ms. Ramirez faces up to 20 years in prison, a fine of up to $250,000, or both. If convicted of the aggravated identity theft charges, Ms. Ramirez will face a mandatory 2 year-term of imprisonment consecutive to any other sentence she receives.
This matter was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
The public is cautioned that an indictment is merely the formal method of issuing charges against an individual. A person is presumed innocent until such time, if ever, as the government establishes his or her guilt beyond a reasonable doubt.
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Fulton Man Pleads Guilty to Prostitution BusinessRead the Press Release
JEFFERSON CITY, Mo. – A Fulton, Mo., man pleaded guilty in federal court today to transporting an individual across state lines as part of his prostitution business.
Sanchez Monroe Walker, 31, pleaded guilty before U.S. Magistrate Judge Willie E. Epps, Jr., to transporting an individual across state lines to engage in prostitution.
In early 2015, Walker was working as the “manager” for “CR,” then a prostitute. Walker and CR made money by traveling about Missouri and temporarily serving customers from a hotel at each location for a day or two before moving on. Potential customers could find their services on advertisements posted to “Backpage,” an internet classifieds site. In January or February of 2015, Walker met a female victim, “FV,” at a party in Columbia, Mo., and soon thereafter, FV joined Walker and CR in the business of prostitution.
On April 9, 2015, the trio traveled from Jefferson City, Mo., to St. Louis, Mo., and posted two ads on Backpage. After checking into a hotel, they received a request for an “outcall” in the vicinity of Fairview Heights, Ill. (An “incall” is when a client comes to the hotel of a prostitute, and an “outcall” is when a prostitute travels to a client.) Walker drove CR and FV across the Mississippi River to a hotel near Fairview Heights (about seven miles into Illinois). Walker waited in the car for about an hour while CR and FV visited a client inside the client’s hotel room. Once the “outcall” was complete, Walker drove both CR and FV back to the hotel in Missouri. At the conclusion of the two-day trip, they returned to Columbia, which was their base of operations.
Under federal statutes, Walker is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. 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 Lawrence E. Miller. It was investigated by the FBI.
Former federal prison guard sentenced to prison for accepting bribesRead the Press Release
ATLANTA – Melvin Thomas, a former correctional officer at the U.S Penitentiary in Atlanta (“USP Atlanta”) was sentenced to federal prison for accepting bribe payments in exchange for smuggling contraband into the prison.
“Thomas reneged on his oath of office by violating the laws he pledged to uphold,” said U.S. Attorney Byung J. “BJay” Pak. “This type of conduct will not be tolerated, and the defendant will now be held accountable for his betrayal of the public trust, as well as his disloyalty to his fellow correctional officers.”
“Smuggling contraband into federal prisons compromises the safety of correctional officers and inmates. For that reason, the OIG takes very seriously investigations of this nature,” said Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Miami Field Division.
According to U.S. Attorney Pak, the charges and other information presented in court: From approximately July 2009 to April 2017, Thomas was a correctional officer at USP Atlanta, a medium-security federal prison for male inmates that is operated by the Federal Bureau of Prisons. USP Atlanta prohibits inmates from using or possessing tobacco products. As a correctional officer, Thomas accepted several bribe payments from an inmate in exchange for smuggling tobacco into the prison. In total, the inmate paid Thomas approximately $3,500 for the contraband that he smuggled into the prison.
Melvin Thomas, 40, of Rocky Mount, North Carolina, was sentenced by U.S. District Judge Timothy C. Batten, Sr. to one year, one day in prison to be followed by two years of supervised release. He was also ordered to pay a $3,500 fine. Thomas pleaded guilty to bribery of a public official on April 10, 2018.
This case was investigated by the Department of Justice Office of Inspector General.
Assistant U.S. Attorney Ryan Huschka 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.
Former QVC Director Sentenced to 30 Months in Federal Prison for Million-Dollar Fraud SchemeRead the Press Release
PHILADELPHIA – First Assistant U.S. Attorney Jennifer Arbittier Williams announced that James D. Falkowski, 42, of Buffalo, New York, was sentenced today to 30 months in federal prison.
Falkowski operated a multi-faceted fraud scheme while working as a director at QVC, Inc., an American cable, satellite, and broadcast television network and multinational corporation specializing in televised and internet home shopping based in West Chester, Pennsylvania. Falkowski previously pled guilty on March 20, 2018 to 11 counts of wire fraud and one count of conspiracy. At the sentencing hearing today, United States District Judge Michael M. Baylson also ordered that the defendant pay $832,138.55 in restitution.
“This defendant used his position, his access, and his employer to fund a lifestyle that would have otherwise been beyond his reach,” said First Assistant U.S. Attorney Williams. “Today’s sentence should serve as a deterrent to anyone who believes he can steal from his employer and successfully cover his tracks.”
Falkowski – a director from 2008 until his termination in 2013 – was responsible for enhancing QVC’s brand and reputation in the entertainment and fashion industries. Falkowski used his position at QVC to embezzle and fraudulently obtain from QVC over $1,000,000 worth of money, goods, and services, all without QVC’s knowledge or approval. These luxuries included hundreds of thousands of dollars of first-class travel, hotel and resort stays, spa treatments, dining at upscale restaurants, luxury clothing and accessories, and personal medical treatments, such as Botox treatment.
To hide his actions from QVC, Falkowski created fake invoices purporting to be from The Four Seasons Hotels, luxury car service companies, and other vendors in order to deceive QVC into paying for Falkowski’s fraud. Falkowski also enlisted the assistance of two QVC vendors to help him defraud QVC. Those two vendors – Los Angeles-based public relations agency “The Steinberg Group,” doing business as “dOMAIN,” and a New York City-based production management company – agreed to submit fraudulently altered invoices and bills to QVC in order to hide Falkowski’s embezzlement.
Additionally, Falkowski caused QVC to pay over $200,000 in private luxury chauffeur rides for himself and his associates, approximately $70,000 in payments to his personal creditors, as well as $59,500 in gift cards from American Express, Tom Ford, and Barney’s New York that Falkowski claimed were for distribution to talent, but which he instead used for himself.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Christopher J. Mannion.
Former Pharmacy Technician Indicted for Stealing Fentanyl, MorphineRead the Press Release
SPRINGFIELD, Mo. – A former pharmacy technician at Mercy Medical Center in Springfield, Mo., was indicted by a federal grand jury today for stealing fentanyl and morphine from the pharmacy and replacing the drugs with saline solution.
Marc F. Musil, 36, of Springfield, Mo., was charged with two counts of tampering with a consumer product in an indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Musil removed fentanyl from syringes on July 12, 2017, and replaced the fentanyl with saline solution. The indictment also alleges that Musil removed morphine from syringes and replaced the morphine with saline solution.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigations.
Former Nashville Metro Police Sergeant Pleads Guilty to Federal Theft and Money Laundering ChargesRead the Press Release
Former Nashville Metropolitan Police Department (MNPD) Sergeant James Dunaway pleaded guilty today in U.S. District Court to theft from an entity that receives federal program funds and money laundering, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Dunaway, 43, of Old Hickory, Tennessee, was indicted by a federal grand jury on May 2, 2018.
According to the indictment, during the period of November 18, 2015 through November 16, 2017, Dunaway was a supervisor in the MNPD Specialized Investigation Division-Narcotics Unit and was responsible, among other things, for monitoring and executing search warrants.
Dunaway admitted during the plea hearing that during the execution of search warrants on five separate occasions, he stole a portion of the cash discovered and seized at each location, including:
The November 18, 2015 search of a residence off Pleasant Hill Road in Nashville, where more than $100,000 was seized;
The April 10, 2017 search of a residence off Robertson Road in Nashville, where more than $500,000 was seized;
The April 26, 2017 search of a residence off Pleasant Hill Road in Nashville, where more than $182,000 was seized;
The September 13, 2017 search of a residence off Spencer Enclave Way in Nashville, where more than $70,000 was seized; and
The November 15, 2017 search of a hotel room in which the MNPD Office of Professional Accountability had placed marijuana, $28,000 cash and video cameras for the purpose of conducting an integrity check. Video cameras captured Dunaway placing money in his pockets during the search and the indictment alleges that Dunaway stole $5,860.00 during the execution of this search warrant.
Dunaway also admitted that between April 11, 2017 and May 8, 2017, he made approximately $40,540.00 in cash deposits and on May 1, 2017, he obtained a cashier’s check with $42,500.00 cash, which he stole during the searches. Dunaway then used the cashier’s check to purchase a 2014 Toyota Sequoia.
Dunaway admitted that during the course of this scheme, he embezzled, stole and converted approximately $109,910.00 to his own use.
The plea agreement calls for the immediate forfeiture of the 2014 Toyota Sequoia and total restitution in the amount of $109,910.00.
Dunaway faces up to 10 years in prison and a $250,000 fine when he is sentenced on October 24, 2018.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. U.S. Attorney Don Cochran and Assistant U.S. Attorney Ryan Raybould are prosecuting the case.
Former Erie Resident Charged with Violating Federal Laws Regaarding the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The four-count indictment named Mark Joseph Bretz, 27, as the sole defendant.
According to the indictment presented to the court, Bretz received computer images depicting minors engaging in sexually explicit conduct and used interstate communications to extort several victims into providing Bretz sexually explicit or suggestive material.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 26 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Erie County Detectives Bureau conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Des Moines Pharmacy Technician Sentenced for Illegally Tampering with FentanylRead the Press Release
DES MOINES, Iowa – On July 10, 2018, Victor Van Cleave, age 30, was sentenced by United States District Court Chief Judge John A. Jarvey to 30 months in prison for tampering with consumer products, announced United States Attorney Marc Krickbaum. Van Cleave was ordered to serve three years of supervised release to follow his prison term.
According to the plea agreement entered on February 26, 2018, between September 7, 2016 and October 2, 2016, Van Cleave was employed as a pharmacy technician at Iowa Methodist Hospital in Des Moines. During that time, Van Cleave had access to fentanyl—a Schedule II controlled substance—that was stored at the hospital for administration to hospital patients. Van Cleave tampered with the hospital’s fentanyl and fentanyl vials during the course of his employment. Specifically, Van Cleave inserted a syringe into multiple fentanyl vials, removed the fentanyl with that syringe, and injected the fentanyl into himself. Using a different syringe, Van Cleave then replaced the fentanyl he had removed from the vials with a different fluid. Van Cleave then placed the tampered vials back into storage at the hospital.
This investigation was conducted by the United States Drug Enforcement Administration and the United States Food and Drug Administration, Office of Criminal Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.