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22 August 2018
Columbus Man Pleads Guilty to Break-In and Theft of Firearms from Columbus Gun DealerRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Devante Patterson, age 24, of Columbus, Georgia, entered a guilty plea to the offense of Theft of Firearms from a Federal Firearms Licensee before Chief United States District Judge Clay Land in Columbus on August 21, 2018.
At his plea hearing, Mr. Patterson admitted that during the early morning hours of November 24, 2017, he entered the premises of Shooters of Columbus, a Federal Firearms Licensee, to steal guns. After several attempts, Mr. Patterson was successful in cutting through a locked roll up door and smashing a glass door to enter the store. Once inside, Mr. Patterson stole six pistols and three rifles, including two assault weapons. Mr. Patterson was later encountered by officers at another firearms business, and officers discovered evidence linking him to the first break-in and theft. Ultimately, officers were able to recover eight of the nine stolen firearms.
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.
The Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated the case. Assistant United States Attorney Michael T. Solis is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Chicago Man Guilty of Illegally Selling More Than a Dozen FirearmsRead the Press Release
CHICAGO — A convicted felon from Chicago has pleaded guilty to federal firearm charges for illegally selling more than a dozen handguns and rifles.
JYMIL CAMPBELL, 31, admitted in a plea agreement that he sold ten handguns, four large-capacity magazines and three rifles during a nine-month period that ended with his arrest in August 2016. Most of the sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago. The sales netted Campbell a total of $8,700 in cash, the plea agreement states. Unbeknownst to Campbell, the two buyers were confidential informants working on behalf of law enforcement. They provided the guns to law enforcement after each sale.
Campbell pleaded guilty Tuesday to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon. The convictions carry a maximum sentence of 15 years in prison. U.S. District Judge Robert W. Gettleman set sentencing for Nov. 15, 2018.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The government is represented by Assistant U.S. Attorney Devlin N. Su.
Campbell acknowledged in his plea agreement that he could not legally possess or deal firearms because he had previously been convicted of two felonies – home invasion and armed robbery – and he lacked a federal firearms license.
According to the plea agreement, one of the gun buyers put Campbell on notice that the guns would be used in illegal gun violence. Campbell nonetheless made the sale. Campbell also admitted telling the buyer that although Campbell had personally fired one of the rifles, the firearm was essentially “brand new” and had not yet been “shot shot, like in a war.”
Centralia Man Sentenced to 9 Years in Prison for Selling MethRead the Press Release
Bobby J. Bryan, 52, formerly of Centralia, Illinois, was recently sentenced to 108 months in federal prison for distributing and conspiring to distribute methamphetamine, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today. Bryan had previously pleaded guilty to a three-count federal indictment that charged him with knowingly distributing methamphetamine in Clay County, Illinois, on two occasions in July 2017, and with conspiring to distribute fifty (50) grams or more of methamphetamine beginning as early as 2015.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, and the Illinois State Police Southeastern Illinois Drug Task Force.
Canadian Sentenced to 3+ Years in Prison for Conspiracy to Export Restricted Goods and Technology to IranRead the Press Release
Ghobad Ghasempour, 38, a Canadian national, was sentenced on Aug. 20, in U.S. District Court in Seattle to 42 months in prison for conspiracy to unlawfully export U.S. goods to Iran.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia and U.S. Attorney Annette L. Hayes for the Western District of Washington made the announcement.
“This sentencing exemplifies the outstanding investigative work by HSI special agents in conjunction with other law enforcement and government partners locally and abroad,” said HSI San Diego Special Agent in Charge Dave Shaw. “The illegal export of U.S.-origin items to prohibited countries is harmful to U.S. national security and will not be tolerated. HSI will continue to aggressively pursue those that seek to violate these laws and jeopardize our nation’s safety.”
Ghasempour was arrested on March 28, 2017 as he entered the United States at Blaine, Washington. An investigation led by Homeland Security Investigations in San Diego, California, revealed that Ghasempour had used front companies in China and co-conspirators in Iran, Turkey and Portugal to illegally export restricted technology products to Iran.
At the sentencing hearing U.S. District Judge James L. Robart noted that Ghasempour was solely motivated by greed and money, and that the unlawful export of goods and technology was to the “the Department of Defense for Iran -- the very group that would be the most harmful to the United States.”
According to records filed in the case, between 2011 and 2017, Ghasempour and his co-conspirators illegally exported and attempted to export goods and technology to Iran that have both military and non-military uses. Ghasempour exported a thin film measurement system, manufactured by a California company, that is essentially a microscopic tape measure for liquid coatings and parts that are used in cell phones and missiles; he attempted to export an inertial guidance system test table, manufactured by a North Dakota company, used to test the accuracy of gyroscopes that assist in flying commercial and military airplanes; and the conspirators exported two types of thermal imaging cameras, manufactured by an Oregon company, that can be used in commercial security systems and military drones. Some of the items Ghasempour sought to export were intercepted by law enforcement. The conspirators falsified shipping documents and lied to U.S. manufacturers by claiming that the restricted items were being shipped to customers in Turkey and Portugal, knowing that the true destination of these goods was Iran. The Iranian customers paid the Chinese front companies owned by Ghasempour and a co-conspirator.
Ghasempour pleaded guilty in April 2018.
The case was investigated by Homeland Security Investigations. The criminal case was originally filed in the District of Columbia in Washington D.C., but was resolved in the Western District of Washington. The case was prosecuted by Assistant U.S. Attorney Frederick Yette for the District of Columbia, Assistant U.S. Attorney Marie Dalton for the Western District of Washington, and Trial Attorney Amy Larson, of the National Security Division’s Counterintelligence and Export Control Section.Canadian Sentenced to 3+ Years in Prison for Conspiracy to Export Restricted Goods and Technology to IranRead the Press Release
WASHINGTON – Ghobad Ghasempour, 38, a Canadian national, was sentenced on Aug. 20, in U.S. District Court in Seattle to 42 months in prison for conspiracy to unlawfully export U.S. goods to Iran.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia and U.S. Attorney Annette L. Hayes for the Western District of Washington made the announcement.
“This sentencing exemplifies the outstanding investigative work by HSI special agents in conjunction with other law enforcement and government partners locally and abroad,” said HSI San Diego Special Agent in Charge Dave Shaw. “The illegal export of U.S.-origin items to prohibited countries is harmful to U.S. national security and will not be tolerated. HSI will continue to aggressively pursue those that seek to violate these laws and jeopardize our nation’s safety.”
Ghasempour was arrested on March 28, 2017 as he entered the United States at Blaine, Washington. An investigation led by Homeland Security Investigations in San Diego, California, revealed that Ghasempour had used front companies in China and co-conspirators in Iran, Turkey and Portugal to illegally export restricted technology products to Iran.
At the sentencing hearing U.S. District Judge James L. Robart noted that Ghasempour was solely motivated by greed and money, and that the unlawful export of goods and technology was to the “the Department of Defense for Iran -- the very group that would be the most harmful to the United States.”
According to records filed in the case, between 2011 and 2017, Ghasempour and his co-conspirators illegally exported and attempted to export goods and technology to Iran that have both military and non-military uses. Ghasempour exported a thin film measurement system, manufactured by a California company, that is essentially a microscopic tape measure for liquid coatings and parts that are used in cell phones and missiles; he attempted to export an inertial guidance system test table, manufactured by a North Dakota company, used to test the accuracy of gyroscopes that assist in flying commercial and military airplanes; and the conspirators exported two types of thermal imaging cameras, manufactured by an Oregon company, that can be used in commercial security systems and military drones. Some of the items Ghasempour sought to export were intercepted by law enforcement. The conspirators falsified shipping documents and lied to U.S. manufacturers by claiming that the restricted items were being shipped to customers in Turkey and Portugal, knowing that the true destination of these goods was Iran. The Iranian customers paid the Chinese front companies owned by Ghasempour and a co-conspirator.
Ghasempour pleaded guilty in April 2018.
The case was investigated by Homeland Security Investigations. The criminal case was originally filed in the District of Columbia in Washington D.C., but was resolved in the Western District of Washington. The case was prosecuted by Assistant U.S. Attorney Frederick Yette for the District of Columbia, Assistant U.S. Attorney Marie Dalton for the Western District of Washington, and Trial Attorney Amy Larson, of the National Security Division’s Counterintelligence and Export Control Section.
Canadian Sentenced to 3+ Years in Prison for Conspiracy to Export Restricted Goods and Technology to IranRead the Press Release
WASHINGTON – Ghobad Ghasempour, 38, a Canadian national, was sentenced on Aug. 20, in U.S. District Court in Seattle to 42 months in prison for conspiracy to unlawfully export U.S. goods to Iran.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia and U.S. Attorney Annette L. Hayes for the Western District of Washington made the announcement.
“This sentencing exemplifies the outstanding investigative work by HSI special agents in conjunction with other law enforcement and government partners locally and abroad,” said HSI San Diego Special Agent in Charge Dave Shaw. “The illegal export of U.S.-origin items to prohibited countries is harmful to U.S. national security and will not be tolerated. HSI will continue to aggressively pursue those that seek to violate these laws and jeopardize our nation’s safety.”
Ghasempour was arrested on March 28, 2017 as he entered the United States at Blaine, Washington. An investigation led by Homeland Security Investigations in San Diego, California, revealed that Ghasempour had used front companies in China and co-conspirators in Iran, Turkey and Portugal to illegally export restricted technology products to Iran.
At the sentencing hearing U.S. District Judge James L. Robart noted that Ghasempour was solely motivated by greed and money, and that the unlawful export of goods and technology was to the “the Department of Defense for Iran -- the very group that would be the most harmful to the United States.”
According to records filed in the case, between 2011 and 2017, Ghasempour and his co-conspirators illegally exported and attempted to export goods and technology to Iran that have both military and non-military uses. Ghasempour exported a thin film measurement system, manufactured by a California company, that is essentially a microscopic tape measure for liquid coatings and parts that are used in cell phones and missiles; he attempted to export an inertial guidance system test table, manufactured by a North Dakota company, used to test the accuracy of gyroscopes that assist in flying commercial and military airplanes; and the conspirators exported two types of thermal imaging cameras, manufactured by an Oregon company, that can be used in commercial security systems and military drones. Some of the items Ghasempour sought to export were intercepted by law enforcement. The conspirators falsified shipping documents and lied to U.S. manufacturers by claiming that the restricted items were being shipped to customers in Turkey and Portugal, knowing that the true destination of these goods was Iran. The Iranian customers paid the Chinese front companies owned by Ghasempour and a co-conspirator.
Ghasempour pleaded guilty in April 2018.
The case was investigated by Homeland Security Investigations. The criminal case was originally filed in the District of Columbia in Washington D.C., but was resolved in the Western District of Washington. The case was prosecuted by Assistant U.S. Attorney Frederick Yette for the District of Columbia, Assistant U.S. Attorney Marie Dalton for the Western District of Washington, and Trial Attorney Amy Larson, of the National Security Division’s Counterintelligence and Export Control Section.
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Buffalo Man Sentenced to Ten Years for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Donald Egan, 52, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to 10 years imprisonment by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that while on supervised release, the defendant was found with a cellular telephone containing over 30 images of child pornography involving prepubescent minors. This is the defendant’s third conviction for possession of child pornography. He was previously convicted in 2002 and 2006 for possessing child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Gary Loeffert and the United States Probation & Pretrial Services Office, under the direction of Chief U.S. Probation Officer Anthony San Giacomo.
Brighton Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A Brighton man was arrested and charged today in federal court in Boston with receipt and possession of child pornography.
Hanford Chiu, 28, was charged with one count each of receipt and possession of child pornography. Chiu appeared before Magistrate Judge Donald L. Cabell, who ordered him detained pending a probable cause and detention hearing scheduled for Aug. 24, 2018.
According to court records, a search warrant was executed at Chiu’s residence in Brighton and preliminary on-scene forensic analysis of one of several pieces of computer equipment seized pursuant to the warrant revealed thousands of images of child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison. Both charges also provide for a mandatory minimum sentence of five years and up to a lifetime of supervised release and a fine of up to $250,000 fine. 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 Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Beckley Man Sentenced on Federal Firearm ChargeRead the Press Release
Beckley, W.Va. – United States Attorney Mike Stuart announced today that a Beckley man was sentenced to 12 months in prison on a federal firearm charge. Jeffrey Alpaugh, 47, pled guilty in April to dealing firearms without a license. Stuart commended the efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley Police Department.
“This is how guns get into the wrong hands,” said United States Attorney Mike Stuart. “Alpaugh was selling guns without a license. Criminals get their guns from guys like Alpaugh. To ensure public safety, this United States Attorney will aggressively enforce federal firearms laws to keep bad guys from using those guns to hurt good people.”
Alpaugh admitted that from in or about February 2017, to on or about October 30, 2017, at or near Beckley and elsewhere, he willfully engaged in the business of dealing firearms without a license. Specifically, during that time frame he offered firearms for sale at flea markets and gun shows in Raleigh and Monroe Counties on almost a weekly basis. At all relevant times, Alpaugh was not licensed under the provisions of Chapter 44 of Title 18 of the United States Code as a manufacturer, importer, or dealer in firearms. On October 30, 2017, ATF agents executed a search warrant at Alpaugh’s home and seized 152 firearms and thousands of rounds of ammunition. Any and all such firearms and ammunition will be forfeited and abandoned by him as set out in the plea agreement.
United States District Judge Irene Berger imposed the sentence. Assistant United States John File handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Athens Felon Sentenced to More Than Fifteen Years in Prison for Possessing A Firearm Under Project Safe NeighborhoodsRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that today, Bryan Shamar Little, age 38, of Athens, Georgia, was sentenced to 188 months’ imprisonment for Possession of a Firearm by a Convicted Felon by United States District Judge C. Ashley Royal in Macon. There is no parole in the federal system.
At his plea hearing on March 8, 2018, Mr. Little admitted he was arrested by officers with the Athens-Clarke County Police Department, following tips from concerned citizens that he was selling cocaine from his residence in Athens. During Mr. Little’s arrest, police recovered crack cocaine, powder cocaine, marijuana, oxycodone pills, and a loaded .38 caliber revolver. Mr. Little was prohibited from possessing a firearm due to convictions for Possession of Cocaine with Intent to Distribute Cocaine in Athens-Clarke Superior Court in 2014, 2007, 2005 and 2001. As a result of his multiple serious drug convictions, Mr. Little was subject to enhanced sentencing penalties pursuant to the Armed Career Criminal Act.
“If you are an armed drug dealer in Middle Georgia, you can expect to face stiff punishment,” said United States Attorney Charles E. Peeler. “I commend the Athens-Clarke County Police Department for their hard work bringing Mr. Little to justice.”
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.
The case was investigated by the Athens-Clarke County Police Department. Assistant United States Attorney Peter D. Leary prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Aryan Circle gang leader and two subordinate gang members plead guilty to accessory-after-the-fact to racketeering murder, among other chargesRead the Press Release
ALEXANDRIA, La. – A senior leader of the Aryan Circle (AC) and a subordinate gang member pleaded guilty today and yesterday to being an accessory-after-the-fact to racketeering murder, announced U.S. Attorney David C. Joseph of the Western District of Louisiana and Assistant Attorney General Bryan A. Benczkowski of the Justice Department’s Criminal Division.
David Wayne Williams, 38, of Sulphur, Louisiana, a senior leader in the gang, and Leland Hamm, 43, of Tulsa, Oklahoma, pleaded guilty to being accessories-after-the-fact in the violent crimes in aid of racketeering murder of Clifton Hallmark, 51, before U.S. District Court Judge Dee D. Drell in the Western District of Louisiana. Williams also pleaded guilty to narcotics trafficking and weapons possession.
On July 25, Richard Alan Smith, 47, of Little Rock, Arkansas, also pleaded guilty to the accessory-after-the-fact charge in the racketeering murder of Clifton Hallmark.
According to the plea agreements of the defendants, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout Texas, Louisiana, and the United States. The AC was established in the mid-1980s within the Texas prison system. Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Texas, Louisiana, and Missouri. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas. The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence in the 1990s, largely through violent conflict with other gangs.
The plea agreements further state that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
By pleading guilty to the accessory charge, Williams, Hamm, and Smith admitted to being members of the AC criminal enterprise. Williams admitted to being a senior leader of the gang.
Sentencing for Williams and Hamm has been scheduled for Nov. 20 and Dec. 13, respectively, before Judge Dee D. Drell. Sentencing for Smith has been scheduled for November 20.
This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, FBI, Louisiana State Police; Evangeline Parish, (Louisiana) Sheriff’s Office; Evangeline Parish District Attorney’s Office; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey State Prison; Montgomery County (Texas) Precinct 1 Constable’s Office; Indiana State Police; Indiana Department of Corrections; the Carrollton (Texas) Police Department; Waller (Texas) Police Department; Montgomery County (Texas) Sheriff’s Office; Travis County (Texas) Sheriff’s Office and the Tarrant County (Texas) Sheriff’s Office.
The case is being prosecuted by Assistant U.S. Attorney Dominic Rossetti of the Western District of Louisiana and Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section.
Aryan Circle Gang Leader and Two Subordinate Gang Members Plead Guilty to Accessory-After-the-Fact to Racketeering Murder, Among Other ChargesRead the Press Release
A senior leader of the Aryan Circle (AC) and a subordinate gang member pleaded guilty today and yesterday to being an accessory-after-the-fact to racketeering murder, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney David C. Joseph of the Western District of Louisiana.
David Wayne Williams, 38, of Sulphur, Louisiana, a senior leader in the gang, and Leland Hamm, 43, of Tulsa, Oklahoma pleaded guilty to being accessories-after-the-fact in the violent crimes in aid of racketeering murder of Clifton Hallmark, 51, before U.S. District Court Judge Dee D. Drell in the Western District of Louisiana. Williams also pleaded guilty to narcotics trafficking and weapons possession.
On July 25, Richard Alan Smith, 47, of Little Rock, Arkansas, also pleaded guilty to the accessory-after-the-fact charge in the racketeering murder of Clifton Hallmark.
According to the plea agreements of the defendants, the AC is a powerful race-based, multi-state organization that operates inside and outside of state and federal prisons throughout Texas, Louisiana, and the United States. The AC was established in the mid-1980s within the Texas prison system (TDCJ). Recently, the AC’s structure and influence expanded to rural and suburban areas throughout Texas, Louisiana, and Missouri. The AC emerged as an independent organization during a period of turmoil within the Aryan Brotherhood of Texas (ABT). The AC was relatively small in comparison to other prison-based gangs, but grew in stature and influence within TDCJ in the 1990s, largely through violent conflict with other gangs, white and non-white alike.
The plea agreements further state that the AC enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, assault, robbery and threats against those who violate the rules or pose a threat to the organization. Members, and oftentimes, associates, are required to follow the orders of higher-ranking members without question.
By pleading guilty to the accessory charge, Williams, Hamm, and Smith admitted to being members of the AC criminal enterprise. Williams admitted to being a senior leader of the gang.
Sentencing for Williams and Hamm has been scheduled for Nov. 20 and Dec. 13, respectively, before Judge Dee D. Drell. Sentencing for Smith has been scheduled for Nov. 20.
This case is being investigated by an Organized Crime Drug Enforcement Task Force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, FBI, Louisiana State Police; Evangeline Parish, (LA) Sheriff’s Office; Evangeline Parish District Attorney’s Office; Texas Department of Public Safety; Houston Police Department-Gang Division; Texas Department of Criminal Justice; New Jersey State Prison; Montgomery County (TX) Precinct 1 Constable’s Office; Indiana State Police; Indiana Department of Corrections; the Carrollton (TX) Police Department; Waller (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office and the Tarrant County (TX) Sheriff’s Office.
The case is being prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Dominic Rossetti of the Western District of Louisiana.
Arizona Man Indicted for Illegally Engaging in the Business of Manufacturing Ammunition Without A LicenseRead the Press Release
LAS VEGAS, Nev. – A federal grand jury sitting in Las Vegas indicted Arizona resident Douglas Haig today with one count of engaging in the business of manufacturing ammunition without a license, announced United States Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division.
The investigation of Haig, 55, of Mesa, Arizona, arose out of the investigation of the October 1, 2017 mass shooting at the Route 91 Harvest music festival in Las Vegas. Haig is scheduled for an initial court appearance on the Indictment before U.S. Magistrate Judge George Foley Jr. on September 5, 2018, in Las Vegas, Nevada. He was previously charged in a criminal complaint.
According to allegations in the indictment, from July 2016 to October 19, 2017, Haig, who did not have a federal firearms license to manufacture ammunition, was illegally conducting business as a manufacturer of various ammunition types. Haig previously operated “Specialized Military Ammunition,” an Internet business selling high explosive armor piercing incendiary ammunition, armor piercing incendiary ammunition, and armor piercing ammunition. Business records reveal that Haig sold armor piercing ammunition throughout the United States, including Nevada, Texas, Virginia, Wyoming, and South Carolina.
During an interview with investigators, Haig told investigators that he reloads ammunition, but does not offer reloaded cartridges for sale to his customers and none of the ammunition recovered in Las Vegas crime scenes would have tool marks on them consistent with his reloading equipment. Reloaded ammunition refers to ammunition that is manufactured from component parts, including previously fired cartridge cases. Based on a forensic examination of rounds recovered inside the suspect’s rooms at the Mandalay Bay Resort and Casino following the mass shooting, Haig’s fingerprints were found on reloaded, unfired .308 caliber cartridges. Forensic examination also revealed that armor piercing ammunition recovered inside of the shooter’s rooms had tool marks consistent with Haig’s reloading equipment.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
The investigation is being conducted by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorneys Patrick Burns, Nicholas D. Dickinson, and Cristina D. Silva.
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Albany Man Pleads Guilty to Possession of Counterfeit CurrencyRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Kirkland P. Coleman, Jr., age 23 of Albany, Georgia, pled guilty to Passing Counterfeit Federal Reserve Notes before District Court Judge W. Louis Sands in Albany, Georgia on August 21, 2018. This plea subjects Mr. Coleman to a maximum sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. Mr. Coleman was in custody at the time of his guilty plea, and he will remain in custody pending his sentencing.
In his plea agreement, Mr. Coleman admitted to buying iPhones on two occasions from Albany residents knowingly using counterfeit currency. Those Albany residents later attempted to use the currency they had obtained from Mr. Coleman to purchase items, only to have businesses refuse the money as counterfeit and contact the police.
Mr. Coleman is scheduled to be sentenced in Albany on October 25, 2018, following a pre-sentence investigation and report.
This case was investigated by the Albany Police Department, the Dougherty County Police Department and the United States Secret Service. Assistant United States Attorney Jim Crane prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
21 August 2018
“Tacony Dungeon” Defendant Jean McIntosh Sentenced to 40 Years ImprisonmentRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Jean McIntosh, 38, of Philadelphia, Pennsylvania, was sentenced today to 40 years imprisonment by United States District Judge Cynthia Rufe. McIntosh previously pleaded guilty to a multi-count indictment arising from the defendant’s participation in a decade-long racketeering enterprise led by her mother and co-defendant Linda Weston. Weston, McIntosh, and other members of the “Weston Family” defrauded the Social Security Administration by targeting extremely vulnerable, mentally ill adults qualified to receive disability benefits, confining and physically abusing them, then stole the victims’ benefits, and converted them for use by the Weston Family. Two of their victims, Donna Spadea and Maxine Lee, died as a result of the Weston Family’s intentional mistreatment of them. Weston previously received a sentence of life imprisonment plus an additional 80 years.
From approximately 2001 through October 2011, McIntosh and other co-conspirators loyal to Weston (all of whom comprised the racketeering enterprise charged in the indictment) lured mentally handicapped individuals into locations rented by Weston, McIntosh, and others in Philadelphia, Pennsylvania; Killeen, Texas; Norfolk, Virginia; and West Palm Beach, Florida. Once in captivity, the Weston Family often moved the mentally challenged captives from state to state in order to elude detection by social service and law enforcement agencies.
The Weston Family targeted victims who were estranged from their families and offered them a place to stay. Once Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits.
During the sentencing proceedings, the government produced victim impact statements that detailed the horrific conditions of the victims’ confinement. In order to ensure that they would be able to control their victims, Weston, McIntosh, and other Weston Family members confined these individuals to, among other areas, locked rooms, basements, closets, attics, and apartments. While confined to these locations, the captives were often kept isolated and in the dark, sedated with drugs, and poorly fed. When the victims tried to escape, steal food, or otherwise protest their confinement, members of the Weston Family punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers, among other instruments.
“It is hard to fathom this kind of disregard for the dignity of human life,” said U.S. Attorney McSwain. “The stomach-turning details of this case and unspeakable acts of cruelty McIntosh inflicted on her helpless victims serve as a stark reminder that pure evil does exist in the world. My sincere hope is that today’s sentence brings some measure of closure to the victims and their families.”
“The actions of Jean McIntosh and ‘The Weston Family’ were nothing short of monstrous,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “With money as their motive, they used and abused some of society’s most vulnerable. The torture inflicted upon their victims is unthinkable; the pain and the fear they caused, incalculable. Right now, my thoughts are with all who suffered at their hands—the survivors, as well as those who lost their lives.”
“This case remains the most appalling example of Social Security representative payee fraud and abuse the Office of the Inspector General has encountered,” said Michael McGill, Special Agent-in-Charge of the SSA OIG Philadelphia Field Division. “Justice has been served with this significant sentence. We thank our law enforcement partners for contributing to this investigation, and the U.S. Attorney’s Office for prosecuting the individuals involved in this horrific conspiracy.”
“The sentence handed down today highlights the seriousness of the defendant’s conduct,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Jean McIntosh demonstrated a blatant disregard for human life and caused immeasurable hardship to innocent victims. We, along with our law enforcement partners, and the United States Attorney's Office will continue to hold those who engage in similar conduct accountable.”
“The Weston racketeering enterprise committed unspeakable acts against innocent and vulnerable members of our community,” said Richard Ross Jr., Philadelphia Police Commissioner. “An intensive inter-agency investigation resulted in the arrests and successful prosecutions of multiple offenders. With the arrest, conviction, and impending sentencing of Jean McIntosh, we sincerely hope that a feeling of closure can commence for the victims and their families.”
This case was investigated by Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), Social Security Administration, Office of the Inspector General (SSI-OIG), and Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys Faithe Moore Taylor and Richard Barrett.
Woman Sentenced for Supplying Heroin That Caused OverdoseRead the Press Release
WICHITA, KAN. – A Kansas City woman was sentenced today to seven years in federal prison for selling heroin to a user who suffered a near-fatal overdose, U.S. Attorney Stephen McAllister said.
Loretta Gilliard, 35, Kansas City, Mo., pleaded guilty to one count of conspiracy to distribute heroin. The investigation began when a user from Overland Park, Kan., bought heroin from Gilliard and then overdosed and lost consciousness. Emergency medical technicians responded and saved the user’s life by administering an opioid reversing agent called Narcan. Investigators learned that Gilliard had sold heroin to the user more than 100 times, usually two to four times a week. Investigators made controlled buys from Gilliard.
McAllister commended the Overland Park Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Sheri Catania for their work on the case.
Williamson County Resident Sentenced for Methamphetamine-Related OffensesRead the Press Release
On August 15, 2018, Erin K. Wright, a/k/a "Erin Shannon," "Erin Tennyson," and "Erin Atchison," 48, of Creal Springs, was sentenced to federal prison for methamphetamine-related offenses, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft announced today. Wright, who had previously pled guilty to a two-count indictment charging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, was sentenced to 48 months of imprisonment to be followed by three years of supervised release. Wright was also fined a total of $400.00.
Evidence at the plea and sentencing hearings established that Wright was involved with others in the manufacture and distribution of methamphetamine. At sentencing, the district court found that Wright was responsible for the possession of 86.4 grams of pseudoephedrine and the distribution of 370.7 grams of "ice." Ice is methamphetamine which has a purity level of at least 80 percent. The indictment alleged that the offenses occurred between September 2012 and April 2015, in Franklin, Williamson, and Jackson Counties.
The investigation was conducted by the Southern Illinois Drug Task Force and Southern Illinois Enforcement Group. The Williamson County States Attorney’s Office also assisted in the investigation.
Whiting Man Sentenced for Tax FraudRead the Press Release
A man who filed false and fraudulent tax returns was sentenced August 20, 2018, to two years’ probation.
Kurt Neldeberg, 65, from Whiting, Iowa, received the sentence after a February 28, 2018, guilty plea to making a false and fraudulent tax return.
At the guilty plea hearing, Neldeberg admitted that from at least 2009 through 2012, he failed to report a total of approximately $315,512 in income from grain sales which resulted in over $100,000 in unpaid and taxes due and owing for those tax years. Neldeberg admitted he deposited proceeds from farm grain sales into personal bank accounts, and willfully failed to inform his bookkeeper and his tax preparer he had done so. Neldeberg knew that the farm receipts reported on Schedule F of his joint federal tax returns were incorrect, resulting in underreported income for each of the tax years 2009-2012 and tax losses therefrom.
Neldeberg was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Neldeberg was sentenced to 24 months’ federal probation and ordered to complete 120 hours of community service. He was also ordered to pay a $100 special assessment. Finally, Neldeberg was ordered to make full restitution to the Internal Revenue Service, including any and all interest and penalties determined to be due and owing. Neldeberg had previously posted a $125,000 cash bond to the IRS for restitution purposes.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4012. Follow us on Twitter @USAO_NDIA.
Westchester Attorney Indicted for Fraud and False Statement Charges Arising from His Attempt to Embezzle from A Decedent’s Estate for Which He Was Court-Appointed AdministratorRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and Thomas P. DiNapoli, New York State Comptroller, announced that a federal grand jury in White Plains, New York returned an Indictment yesterday charging GUY PARISI, a Westchester attorney, with conspiracy, mail fraud and false statements. These charges arise from PARISI’s attempt to embezzle funds from a decedent’s estate for which he served as a court-appointed administrator. PARISI was arrested yesterday morning and was presented before the United States District Judge Paul E. Davison
U.S. Attorney Geoffrey S. Berman said: “Guy Parisi, a Westchester attorney, allegedly embezzled funds from an estate which he was a court-appointed fiduciary. Parisi allegedly shirked his responsibilities to the estate in order to serve his own greed. Now he faces justice in a criminal court.”
Inspector-in-Charge Peter R. Rendina said: “Mr. Parisi allegedly took advantage of the trust given to him by his client, when instead of doing the right thing, he created a company to greedily enrich himself of fees he would not lawfully be entitled to receive. Postal Inspectors and their law enforcement partners uphold the truth and those who do not must face justice.”
Comptroller Thomas P. DiNapoli said: “Instead of protecting the interests of the estate, Mr. Parisi abused the trust placed in him by allegedly attempting to pocket millions of dollars meant for the beneficiaries by using a fictitious company. Thanks to my ongoing partnerships with United States Attorney Geoffrey Berman and the United States Postal Inspection Service, he will now be held accountable for his actions. My office will continue to work with law enforcement across the State to protect unclaimed funds in our custody.”
According to the allegations contained in the Indictment:[1]
PARISI, an attorney in Westchester County, was appointed administrator of the estate of a former resident of Mt. Vernon, in or about April 2017. His duties as administrator included collecting the assets of the estate. As an administrator, PARISI had a fiduciary duty to the estate and to the decedent’s son, the sole beneficiary of his father’s will. New York law provided for a fee for estate administrators like PARISI based on a percentage of the value of the estate’s assets.
A substantial part of the estate’s assets escheated to the State of New York as abandoned property between 2000 and 2008, when the estate was first presented to the Surrogate’s Court. These assets were held in the custody of the New York State Comptroller.
In or about June 2017, PARISI, on behalf of the estate, retained Stokes Asset Recovery Services (“Stokes”) as the estate’s abandoned property location service in exchange for a fee of fifteen percent of the value of the estate’s assets held by the Comptroller, which is the maximum fee allowed by New York law. PARISI did not disclose, and actively concealed, that Stokes was owned by his relative, and that he and the relative had formed Stokes less than two weeks before he notified the Comptroller of his retention of Stokes, as he was required to do under New York law. PARISI and the relative named Stokes after a Southampton, New York, street on which PARISI owned a waterfront vacation home. At the time he retained Stokes, PARISI knew that the estate’s assets held by the Comptroller were worth several million dollars.
PARISI was interviewed by a Postal Inspector in or about November 2017. He falsely told the Postal Inspector that he had worked with Stokes in the past and that Stokes’s fee was five percent of the value of the assets held by the Comptroller.
* * *
PARISI, 71, of Rye, New York, is charged with one count of conspiracy, which carries a maximum sentence of five years in prison; one count of mail fraud, which carries a maximum sentence of 20 years in prison; and one count of making a false statement, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentence will be determined by the court.
Mr. Berman praised the outstanding investigative work of the Postal Inspection Service and the New York State Comptroller.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Warsaw Man Sentenced to More Than 20 Years in PrisonRead the Press Release
SOUTH BEND - Darin Devon Hurd, age 26, of Warsaw, Indiana was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute heroin, announced U.S. Attorney Kirsch.
Darin Devon Hurd was sentenced to 248 months in prison followed by 6 years of supervised release.
U.S. Attorney Kirsch said, “Heroin overdoses are an epidemic in our country, and the Northern District of Indiana is not immune. Mr. Hurd’s conduct contributed to a premature death that left a small child without a mother. Consequences like these are too often present in cases involving heroin distribution and use. The sentence today reflects the seriousness of the charges against Mr. Hurd and the permanent damage that his conduct has inflicted on the lives of others.”
According to documents in this case, Hurd began dealing heroin in January of 2017. He distributed approximately 50 grams of heroin every two weeks for the next eight months. In September of 2017, Hurd used heroin with the mother of his child and then left the home that he shared with her, leaving behind approximately 7 grams of heroin. That day, the mother of Hurd’s child passed away from a heroin overdose while home with their toddler son, who subsequently tested positive for heroin metabolite. A firearm was then found while investigators were recovering items from Hurd’s home.
This case was investigated by ATF with the assistance of Winona Lake Police Department, Warsaw Police Department, Kosciusko County Sheriff’s Department, Indiana State Police, and the Kosciusko County Prosecuting Attorney’s Office. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
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Upshur County man sentenced to 14 years for child pornography chargeRead the Press Release
ELKINS, WEST VIRGINIA – James Andrew Smith, of Buckhannon, West Virginia, was sentenced today to 168 months incarceration for a child pornography charge, United States Attorney Bill Powell announced.
Smith, age 58, pled guilty to one count of “Possession of Child Pornography” in May 2018. Smith, having previously been convicted of possession of child pornography, admitted to having computer disks and other materials containing child pornography in his possession. The crime occurred in November 2015 in Upshur County.
Smith was also ordered to pay $16,000 in restitution and ordered to forfeit computers, cameras, and other items.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Upshur County man sentenced for more than 10 years for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Reggie Joe McLain, of Buckhannon, West Virginia, was sentenced today to 123 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
McLain, age 38, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in December 2017. McLain admitted to conspiring with others to distribute methamphetamine in Upshur County and elsewhere from March 2016 to September 2017.
McLain was also ordered to forfeit $20,674 seized from his vehicle in October 2016.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. District Judge John Preston Bailey presided.United States Attorney and Cherokee Nation Attorney General Voice Support for Significant Opioid Manufacturing Reduction in 2019Read the Press Release
TULSA, Okla. – United States Attorney Trent Shores and Cherokee Nation Attorney General Todd Hembree joined together to voice their support for a Department of Justice and U.S. Drug Enforcement Administration (DEA) proposal for a reduction of controlled substances that may be manufactured in the United States next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
Tribal communities throughout the United States have also been impacted by the deadly opioid epidemic. The Cherokee Nation is a federally recognized Indian tribe located in northeast Oklahoma and is one of the largest Indian tribes in the United States. Cherokee officials have noted that their communities are grappling with the financial and social burdens of the opioid epidemic. On Tuesday, the Cherokee Nation hosted more than 30 United States Attorneys from across the United States who work in federal districts with Indian tribes and tribal land. These U.S. Attorneys comprise the Native American Issues Subcommittee (NAIS), the longest standing subcommittee of the Attorney General’s Advisory Committee. The Cherokee Nation Principal Chief and Attorney General spoke to the NAIS about the impact of the opioid epidemic on the Cherokee people, especially as it affects Cherokee children. According to the Centers for Disease Control and Prevention, the rate at which babies have been born with a drug withdrawal syndrome that can occur because they were exposed to prescription painkillers or heroin in the womb has quadrupled over the course of 15 years in the U.S.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
United States Attorney Shores stated, “Drugs are killing more Oklahomans than ever before. We must work together with our state and tribal partners to combat this overdose epidemic. This social catastrophe is literally killing our younger generations before their time. I am proud to work with the Cherokee Nation to stop the proliferation of these dangerous drugs. I applaud Attorney General Sessions and DEA Acting Adminstrator Dhillon for their leadership to reduce prescription rates.”
“The Cherokee Nation and eastern Oklahoma have been at the epicenter of the opioid epidemic. This has effected countless families and threatens a generation of Cherokee mothers and children who’ve been exposed to these drugs,” Cherokee Nation Attorney General Todd Hembree said. “I applaud the efforts of United States Attorney Shores in acting in coordination with tribes to end this epidemic. By limiting the amount of opioid drugs that may be manufactured we can begin to curb the flow of such drugs into our tribal communities.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said Acting Administrator Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
U.S. Attorney Attends Eighth Circuit Judicial ConferenceRead the Press Release
United States Attorney Ron Parsons attended the Eighth Circuit Judicial Conference held in Des Moines, Iowa, on August 15-17, 2018. The conference is a gathering of federal judges and attorneys in the Eighth Circuit, which consists of South Dakota, North Dakota, Iowa, Minnesota, Nebraska, Missouri, and Arkansas.
The conference featured an address from U.S. Attorney General Jeff Sessions, as well as an appearance by U.S. Supreme Court Justice Neil Gorsuch. Additional speakers included two native Iowans: Internationally renowned opera star Simon Estes and Medal of Honor recipient Sal Giunta. The conference was presided over by the Honorable Lavenski R. Smith, Chief Judge of the U.S. Court of Appeals for the Eighth Circuit.
Of special note, Randy Seiler, former U.S. Attorney for the District of South Dakota, received the Richard S. Arnold Award for Distinguished Service. Judge Richard S. Arnold (1936-2004) of Texarkana, Arkansas, served on the U.S. Court of Appeals for the Eighth Circuit from 1980 until his death in 2004. Recipients are honored for their professional excellence, leadership in the legal community, significant contributions of volunteer legal services in underserved communities, and service as a mentor to less-experienced lawyers or law students, all characteristics of Judge Arnold. Mr. Seiler is only the fourth South Dakotan to receive this coveted award.
Two Sentenced for Their Roles in an Opioid Overdose DeathRead the Press Release
TULSA, Okla.- United States Attorney Trent Shores announced the sentencing of Jennifer Elizabeth Boyce and Christina Ann Dempsey for their participation in a conspiracy to distribute oxycodone resulting in death. Today, United States District Judge John E. Dowdell sentenced Christina Ann Dempsey to eight years imprisonment for her role in supplying 80mg oxycodone pills (Oxy80s) to Boyce, who then sold the Oxy80s to customers for profit. Yesterday, Judge Dowdell sentenced Boyce to ten years imprisonment for her role in selling the Oxy80s she received from Dempsey to Jennifer Blake McNulty, who subsequently overdosed and died on October 24, 2014.
Both Dempsey and Boyce accepted responsibility, cooperated fully in the federal investigation, and provided sworn testimony against themselves and others before the filing of federal charges. The third conspirator is Michael Allen Miers, whose case is still pending before Judge Dowdell.
U.S. Attorney Shores stated, “Attorney General Jeff Sessions directed United States Attorneys to consider every lawful tool at our disposal to combat the deadly opioid epidemic. We have taken that direction to heart by using all available criminal and civil remedies to stop opioid abuse and distribution in the Northern District of Oklahoma. We are pleased with the sentences in these cases. Illegal opioid distributors must be held accountable in courts of law. It is a matter of saving lives.”
In commenting about the extent of the opioid epidemic nationwide, U.S. Attorney Shores recounted the staggering statistics:
- Since 2009, drug overdose deaths have outpaced traffic accidents as the leading cause of injury death in the United States.
- Nearly 64,000 Americans died of drug overdoses in 2016–more drug related deaths in one year when compared to total number of combat losses during the entire Vietnam War.
- Emergency Department visits for opioid overdoses rose 30% in all parts of the country from July of 2016 through September of 2017.
- Life expectancy in the United States dropped for two years in a row after more than a century of steady progress.
- The number of children admitted to hospitals for opioid overdose has nearly doubled since 2004, according to a study recently published in the journal Pediatrics.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pryor Police Department, and the Mayes County District Attorney’s Office investigated the case. Assistant U.S. Attorney Timothy L. Faerber, the Deputy Chief of the Criminal Division, and Brian Surber, the First Assistant District Attorney for Mayes County and a Special Assistant U.S. Attorney, prosecuted the case.
U.S. Attorney Shores observed, “Collaborative law enforcement is good law enforcement. I want to express my deep appreciation and profound thanks to all the women and men of law enforcement–federal, state, and local–for working together on this investigation. The Mayes County District Attorney’s Office has also been a great partner. The work they did on this case was essential.”
Tulsa is One of Five Cities Selected by Attorney General Jeff Sessions for National Public Safety PartnershipRead the Press Release
Tulsa, Okla.– Attorney General Jeff Sessions today announced that Tulsa is one of five cities selected to the National Public Safety Partnership (PSP) as the Department of Justice continues its efforts to fulfill President Trump’s commitment to reducing violent crime in America.
PSP delivers a framework for enhancing federal support of state, local, and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking, and gang violence.
PSP provides cities the opportunity to consult with, receive coordinated training and technical assistance from, and have access to an array of resources from the Justice Department and its law enforcement components. The partnership will further enhance the ability of the U.S. Attorney’s Office in the Northern District of Oklahoma and its local, state, and federal partners to investigate and prosecute violent crime.
“Attorney General Sessions meant business when he directed United States Attorneys to target alpha criminals and reduce violent crime across America. The Public Safety Partnership will bring resources to Tulsa to aid us in that effort. I am proud to bring these crime fighting tools to northeastern Oklahoma.” said U.S. Attorney Trent Shores. “When I was sworn in as United States Attorney, I pledged to combat violent crime. These resources will enhance our ability to partner with the Tulsa Police Department, Tulsa County Sheriff’s Office, and federal law enforcement agencies to keep citizens safe. I have assembled a dedicated and talented team of federal prosecutors. They stand ready to enforce the law and fight for justice for all.”
PSP offers two separate approaches to the assistance provided by the Justice Department, the Diagnostic Approach and the Operations Approach:
- PSP Diagnostic teams help participating cities develop tools to diagnose and address violent crime issues.
- PSP Operations teams partner directly with federal, state, local, and tribal officials to strategically address violent crime issues.
Five sites have been selected to receive this significant assistance:
2018 PSP Diagnostic Sites:
- Saginaw, Michigan
- Salisbury, North Carolina
2018 PSP Operations Sites:
- Kansas City, Missouri (participated as a PSP Diagnostic Site in 2017)
- Miami, Florida
- Tulsa, Oklahoma
“Reversing the recent troubling increase in violent crime in our country is a top priority of the Department of Justice as we work to fulfill the President’s promise to make America safer,” said Attorney General Sessions. “Cooperation with our fabulous state and local partners is the single most important aspect of our strategy to reduce crime. The National Public Safety Partnership program will help five American cities to build up their own capacity to fight crime by using DOJ expertise and resources as well as evidence-based strategies customized to meet their needs. We want to be a force multiplier for them, and under PSP, we will.”
In June 2017, Attorney General Jeff Sessions announced the PSP program during remarks at the National Summit on Crime Reduction and Public Safety. The twelve sites announced in 2017 continue to participate in 2018, and have resulted in a number of success including, but not limited to:
- Birmingham, Alabama: The U.S. Attorney’s Office for the Northern District of Alabama established a public safety task force of local, state, and federal partners to improve data and intelligence sharing, complement community outreach, and improve prevention efforts. As a result of coordinated efforts among local and federal law enforcement, homicides in Birmingham are down 12 percent year to date in June.
- Indianapolis, Indiana: The U.S. Attorney’s Office for the Southern District of Indiana and the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF) have enhanced coordination with each Indianapolis Metropolitan Police Department patrol district to help identify and prioritize drug and gun crime cases appropriate for federal prosecution. ATF has also assigned a crime analyst to focus solely on National Integrated Ballistic Information Network (NIBIN) cases. NIBIN is a national program that assists law enforcement agencies in making connections among crimes involving firearms. As of July 2018, Indianapolis reports an increased homicide clearance rate from 40 percent to 70 percent year to date, which it attributes to increased collaboration among local and federal partners.
- Memphis, Tennessee: Identified one precinct and geographical area in South Memphis for PSP engagement—the Raines Street Station—to focus increased local and federal enforcement efforts. The Raines Street Station experienced approximately 22 percent of the city’s homicides in 2016. As a result of PSP involvement in the Raines Street Station area, homicides are down approximately 27 percent and aggravated assault are down 11 percent, as of July 31, 2018.
Partner sites are selected through a process that considers both quantitative and qualitative measures, including sustained levels of violent crime that far exceed the national average. PSP sites must demonstrate a commitment to reducing violent crime, and in August 2017 that commitment was extended to include reducing violent crime stemming from illegal immigration.
The Justice Department agencies involved in PSP are: the United States Attorneys’ Offices; the Office of Justice Programs; the FBI; the ATF; the U.S. Marshals Service; the Drug Enforcement Administration; the Office on Violence Against Women; and the Office of Community Oriented Policing.
For more information about additional PSP sites, their designations and DOJ’s work to reduce violent crime and enhance public safety, visit https://www.nationalpublicsafetypartnership.org/
Three More Defendants Sentenced for Participation in Cocaine and Crack ConspiracyRead the Press Release
PITTSBURGH – Three residents of the Western District of Pennsylvania were sentenced yesterday in federal court for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone sentenced Jack Brown, 37, of Pittsburgh, to serve 24 months in prison and pay a $2,500 fine following his guilty plea to one count of conspiracy. Judge Cercone also sentenced Dwight Wright, 41, of Canonsburg, and Kenya Mickens, 40, of Pittsburgh, to serve one day in federal custody each, followed by 12 months and 10 months, respectively, of a combination of community and home confinement. Wright was also ordered to pay a $3,000 fine. Wright and Mickens, like Brown, previously pleaded guilty to one count of conspiracy.
In connection with his earlier guilty plea, Brown admitted that from in and around April 2016, and continuing thereafter to in and around October 2016, he conspired with others, including Mickens and Wright, to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance. At the time of his guilty plea, Brown admitted that he was responsible for between 500 grams and 2 kilograms of powder cocaine during the conspiracy. Likewise, during their plea colloquies, Mickens and Wright admitted that they were each responsible for between 100 and 200 grams of cocaine.
Brown, Mickens, and Wright were charged as part of a nine-defendant indictment returned by a federal grand jury on August 1, 2017. To date, six defendants have pleaded guilty.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. 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.
Texas Man Pleads Guilty in Cocaine Trafficking CaseRead the Press Release
WICHITA, KAN. – A Texas man pleaded guilty today to driving a load of cocaine to Kansas, U.S. Attorney Stephen McAllister said.
Ricardo Daniel Ruiz, 20, El Paso, Texas, pleaded guilty to one count of interstate travel in furtherance of drug trafficking. In his plea, he admitted that a police officer in Elkhart stopped him for speeding. A search of the vehicle turned up 6.8 kilos (about 15 pounds) of cocaine wrapped in six bundles and hidden beneath the back seat.
Sentencing is set for Nov. 6. He faces a penalty of up to five years in federal prison and a fine up to $250,000. McAllister commended the Elkhart Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Alan Metzger for their work on the case.
Texas Couple Sentenced for Alien Harboring Scheme Involving Labor ExploitationRead the Press Release
Defendants required Cambodian victim to work long hours for minimal pay both in their home and at their business in Texas to repay purported debt
Tyno Keo, 38, and, Phearom Lay, 34, of Nacogdoches, Texas, were sentenced yesterday in federal court in Beaumont, Texas, after previously pleading guilty to alien harboring for financial gain, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Joseph D. Brown of the Eastern District of Texas, and Special Agent in Charge Eric Jackson of the FBI in Dallas.
U.S. District Court Judge Ron Clark for the Eastern District of Texas sentenced Defendant Keo to six months incarceration and Defendant Lay to six months incarceration, followed by two years of supervised release. Judge Clark also ordered the defendants to pay $5,000 each in fines and $41,024.31 in joint restitution.
According to court documents, between September 2012 and May 2013, the defendants harbored the victim and required her to work long hours for little pay performing childcare, cleaning their home, and as an employee at their business, the Donut Palace. The scheme started in Cambodia, where Defendant Lay’s sister owed the defendants $50,000 for shared family medical expenses. To satisfy her debt, Lay’s sister arranged for the victim to obtain a temporary tourist visa and travel from Cambodia to the United States to work for the defendants. As a result, the $50,000 debt was transferred to the victim. Once the victim arrived in the United States, the defendants took possession of her passport and visa, and continued to harbor and employ her after her visa expired in December 2012. The defendants paid the victim $1,000 a month for her labor and withheld a portion of it to repay the purported $50,000 debt.
“The defendants violated immigration laws and exploited a vulnerable individual who lacked immigration status, requiring her to work long hours for little pay,” said Acting Assistant Attorney General Gore of the Civil Rights Division. “This Justice Department will not tolerate this type of immigration and labor exploitation, and is committed to aggressively pursuing and prosecuting individuals who engage in such crimes.”
“These types of crimes happen more than people know,” said U.S. Attorney Joseph Brown. “There are populations that are vulnerable to this type of exploitation, and it is a good thing that federal law enforcement is making people who engage in this conduct aware that the laws against it will be enforced.”
“We need to bring these types of crimes out of the shadows of darkness and resolve it from not only a law enforcement concern, but identify the community’s role in stopping such a heinous crime,” said FBI Special Agent in Charge Eric Jackson.
This case was investigated by the FBI with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Assistant U.S. Attorney Lauren Gaston of the Eastern District of Texas, and William E. Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
St. Louis Man Pleads Guilty to Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A St. Louis, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute at least a kilogram of heroin in Greene County, Mo.
Michael L. Hester, 38, pleaded guilty before U.S. Magistrate Judge David P. Rush to his role in the conspiracy to distribute heroin in Greene County from Sept. 1, 2012, to April 3, 2017.
Conspirators purchased heroin in Chicago, Ill., and St. Louis then transported it to the Springfield, Mo., area by vehicle. Hester admitted that he personally transported heroin from St. Louis to Springfield and supplied mid-level heroin dealers, including co-defendant Kenneth M. Smith, 60, of Springfield. Hester also admitted that he distributed heroin to an undercover law enforcement officer on several occasions.
Smith had multiple suppliers of heroin, including Hester and co-defendants Roosevelt Simpson, 60, and Najee Boston, 37, both of Springfield. Smith would in turn supply other mid-level heroin dealers, including co-defendant Antonio J. Jones, 43, of Springfield.
Hester, Smith, Simpson, Boston and Jones are among six defendants to plead guilty in this case. Co-defendant Romele E. Freeman, 53, of Springfield, also pleaded guilty and awaits sentencing.
Under federal statutes, Hester is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of 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 Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Sixteen People Charged in Second Takedown of Newark Drug Trafficking OrganizationRead the Press Release
Total of 27 Individuals Charged to Date
NEWARK, N.J. – Sixteen people were charged today in connection with their alleged roles in a drug trafficking organization that distributed heroin and crack cocaine in Newark, U.S. Attorney Craig Carpenito announced.
Anthony Brinson, 27; Kayron Caldwell, 26; Calvin Cheek, 47; Murad Fleming, 18; Sherod Green, 25; Furad Loyal, 30; Jaquwin Marlin, 30; Khalif Nash, 20; Zahir Nash, 19; Dimani Newby, 25; Nasir Sanders, 21; Shawn Scott, 32; Kahlid Windley, 31; Stephan Young, 19; all of Newark, and Jeray Alson, 28; of Vauxhall, New Jersey, are each charged by complaint with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin. Loyal was additionally charged with one count of illegal possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime. Sean Collins, 50, of East Orange, New Jersey, was charged with one count of conspiracy to distribute and possess with the intent to distribute 280 grams of more of cocaine base, or “crack” cocaine.
Nine of the defendants are currently in custody, six of whom – Cheek, Loyal, Marlin, Scott, Windley and Young – are scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court today.
According to the documents filed in this case and statements made in court:The defendants are allegedly members of a drug trafficking organization that sold heroin and crack cocaine in and around Newark, specifically Hayes Street and 14th Avenue in the area of the New Community Corp. (NCC) community development. The organization also supplied drugs to customers and other distributors elsewhere. The organization is comprised of members of the Brick City Brim set of the Bloods street gang
On March 5, 2018, 11 defendants, including Keith Herd, the alleged leader of the organization were charged in connection with the investigation. On Aug. 1, 2018, Martin Pettiford, 23, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin. The charges against the other individuals remain pending.
The investigation revealed that in addition to selling narcotics, Herd and the other members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC, shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other. Members of the organization have also engaged in violence and been the subject of violence in connection with their narcotics trafficking activities.
An investigation led by the FBI used physical and video surveillance, confidential informants, cooperating witnesses, dozens of controlled narcotics purchases, record checks, narcotics seizures, including of heroin, and multiple telephone wiretaps to uncover the operations of the drug trafficking organization.
The drug trafficking conspiracy counts carry a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The illegal possession of a firearm count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The possession of a firearm in furtherance of a drug trafficking crime count carries a mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges.
He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the N.J. Department of Corrections, N.J. State Parole Board, and the U.S. Marshals for their assistance.
Keith Herd and the NCC drug trafficking organization were part of the original Violent Crime Initiative (VCI) targets. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Significant opioid manufacturing reduction proposed for 2019Read the Press Release
ATLANTA – The Department of Justice and U.S. Drug Enforcement Administration (DEA) recently announced a proposed reduction for controlled substances that may be manufactured in the U.S. next year. The proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount.
“In 2017, nearly 1,050 Georgians died as a result of opioid overdoses,” said U.S. Attorney Byung J. “BJay” Paky. “We must continue to fight this epidemic on all fronts. The proposed decrease in opioid production is a step in the right direction to potentially save lives, while also minimizing the illegal distribution of these drugs within our community.”
“DEA recognizes we must fight this epidemic on multiple fronts,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This latest action is another tool to prevent others from falling victim to this deadly addiction to opioids.”
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories. The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl.
Ultimately, the revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. In the last several years, efforts have been to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
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.
Aggregate Production Quota for Opioids
Aggregate Production Quota for Opioids.pdfShelton Resident Sentenced to 21 Months in Prison for Defrauding Owner of Stamford Ice Skating RinkRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARK J. ZITO, 55, of Shelton, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 21 months of imprisonment, followed by three years of supervised release, for defrauding the owner of a Stamford ice skating facility that he managed.
According to court documents and statements made in court, from October 1999 to August 2014, ZITO was the general manager of Stamford Twin Rinks, an ice skating facility in Stamford. The facility is owned and operated by RivCan Associates, LLC (“RivCan”). ZITO was responsible for managing and overseeing the ice skating facility’s operations, and he had a written contract with RivCan in which he would be paid commissions for securing agreements from third party vendors to place advertising at the ice skating facility. ZITO created and utilized AAZ Consulting, an unincorporated entity controlled by him, to bill RivCan for these commissions.
During his employment, ZITO submitted to RivCan numerous fraudulent invoices, primarily for services that RivCan neither requested nor authorized, or for commissions that were either fraudulent or grossly inflated. As general manager, ZITO approved the payment of these invoices and directed his subordinates to issue him checks payable to AAZ Consulting.
The total loss from ZITO’s illegal conduct is $490,468.81, which also includes funds he received by claiming payments for purportedly maintaining and updating the skating rink facility’s internet website, and through unauthorized benefits in the form of excess salary payments, excess vacation pay, and cellular telephone reimbursements.
Chief Judge Hall ordered ZITO to make full restitution.
On December 20, 2017, ZITO pleaded guilty to one count of wire fraud.
ZITO, who is released on bond, was ordered to report to prison on September 25, 2018.
This matter was investigated by the U.S. Secret Service, Stamford Police Department, Connecticut State Police, and Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Serial Armed Bank Robber Sentenced to Five Years in Federal PrisonRead the Press Release
OAKLAND – Wesley Allen Krohn was sentenced to five years in prison for perpetrating a bank robbery spree, announced United States Attorney Alex G. Tse and Special Agent in Charge John Bennett of the Federal Bureau of Investigation (FBI)’s San Francisco Division and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division. The Honorable Haywood S. Gilliam, Jr., United States District Judge, handed down the sentence on August 20, 2018.
Krohn, 34, of San Jacinto, California, pleaded guilty to the robberies on April 23, 2018. According to his plea agreement, Krohn admitted that between December 2015 and January of 2016, he went on a bank robbery spree across northern California. In two of the robberies, Krohn used an object that appeared to be a black pistol. During some of the robberies, Krohn entered the banks wearing a fake beard and a baseball hat in an attempt to disguise himself, approached the victim tellers, and presented a note that demanded money, indicating that he had a gun. Krohn robbed, or attempted to rob, banks in Sonoma, Contra Costa, Sacramento, Solano, and San Joaquin counties:
- On December 3, 2015, Krohn robbed an Exchange Bank in Rohnert Park, California, of $9,000. Krohn’s demand note said, essentially, “Put $10,000 in an envelope quickly and you won’t get hurt.” When the victim teller pushed back from the counter after reading the note, Krohn noticed, and told the victim teller, “No quick movements.”
- On December 21, 2015, Krohn robbed a Tri Counties Bank in Brentwood, California, of $496. Krohn used a folded-up check as a demand note, which said, “I HAVE A GUN.” The blank check was filled out for $10,000. Krohn said, “Give me all your money.” Krohn kept his hand in his jacket pocket when he said, “Hurry up, I have a gun.”
- On December 22, 2015, Krohn robbed a Wells Fargo Bank in Pleasant Hill, California, of $650. Krohn pointed an object that appeared to be a black semi-automatic pistol at the victim teller and handed the teller a note that read, “No dye packs, $20,000.”
- On December 31, 2015, Krohn robbed a Bank of Rio Vista in Walnut Grove, California, of $1,439. Krohn approached the victim teller, brandished an object that appeared to be a black semi-automatic pistol, and said, in a low voice, something to the effect of, “This is a stick-up. Give me your [ ] money.” Krohn raised his weapon, pointed it in the direction of the victim teller, and ordered her to open the bottom two drawers.
- On January 9, 2016, Krohn robbed a US Bank in Suisun City, California, of $884. Krohn approached the victim teller, wearing a fake beard and a baseball cap, and presented a note that threatened he had a gun and demanded money. Krohn also verbally demanded money and said he had a gun.
- On January 19, 2016, Krohn attempted to rob a US Bank in Lodi, California. He presented a note stating “I have a gun. Give me all the money.” The teller pointed out that the bank had not yet opened and the cash drawers did not have money. Krohn fled without any money from the bank.
- On January 19, 2016, Krohn robbed a Tri Counties Bank in Elk Grove, California, of $2,144. Krohn approached the victim teller with a note that said something to the effect of, “I have a gun on me, hurry up, and give me all the money. This is not a joke.” While the teller was attempting to read the note, Krohn whispered to her, “Hurry up, I have a gun.”
Krohn was later identified as the bank robbery suspect who appeared in FBI flyers. He self-surrendered to federal authorities on December 8, 2017, following the grand jury’s return of an indictment. On April 19, 2018, Krohn was charged by Superseding Information with five counts of actual or attempted bank robbery, in violation of 18 U.S.C. § 2113(a), and two counts of armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d).
In addition to the prison term, Judge Gilliam ordered Krohn to serve a three-year term of supervised release, and ordered him to pay full restitution to the victim banks. The defendant has been in custody since his arrest and will begin serving his sentence immediately.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the FBI, the Rohnert Park Police Department, the Brentwood Police Department, the Pleasant Hill Police Department, the Sacramento County Sheriff’s Department, the Suisun City Police Department, the Elk Grove Police Department, the Lodi Police Department, and the Clearlake Police Department.
Sacramento Man Pleads Guilty to Selling Counterfeit Air Bag Covers and Nameplate BadgesRead the Press Release
PORTLAND, Ore. – Pavel Ryzhenkov, 32, of Sacramento, California, pleaded guilty today to one count of trafficking in counterfeit goods.
According to court documents, between December 2015 and September 2017, Ryzhenkov sold counterfeit air bag covers on eBay. He purchased the counterfeit covers from manufacturers in China and in turn advertised and sold them as genuine with the trademarks of various auto manufacturers, including Audi, BMW, Chevrolet, Dodge, Ford, Honda, Infiniti, Lexus, Mercury, Nissan, Subaru, Toyota, and Volkswagen.
Air bag covers made by unauthorized manufacturers can malfunction causing serious injury or death. Upon deployment of an air bag in a crash, counterfeit air bag covers can shatter, sending shrapnel into a vehicle’s passenger compartment.
“Mr. Ryzhenkov did not disclose the origin of the counterfeit air bag covers and thereby caused consumers to unknowingly operate vehicles not equipped with properly functioning air bags, posing a serious risk to their safety,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
“Counterfeit products pose real safety risks. In this case, counterfeit air bag covers could mean the difference between life and death,” said Brad Bench, special agent in charge of Homeland Security Investigations (HSI) Seattle, which oversees the agency’s Portland office that conducted this investigation. “This investigation represents HSI’s commitment to protecting consumers. No one wants to be behind the wheel when an air bag doesn’t function properly.”
Ryzhenkov faces a maximum sentence of 10 years in prison, a $2 million fine and three years of supervised release. He will be sentenced on December 12, 2018 before U.S. District Court Judge Michael H. Simon.
HSI in Portland, Oregon, investigated this case. It is being prosecuted by Quinn Harrington and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
Consumers who have had their air bags or air bag covers serviced by a repair shop that is not part of a new car dealership or who have purchased an air bag or air bag cover online should contact their auto manufacturer to have their vehicle inspected and their air bag or air bag cover replaced if necessary. The responsibility for replacing a counterfeit air bag or air bag cover will vary depending on the circumstances surrounding the original installation of the part. More information can be found on the National Highway Traffic Safety Administration’s website at www.nhtsa.gov.
Richard Monroe Sentenced to Twenty-Five Years in Prison in Connection with Murder of Kevin DeOliveiraRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today Richard Monroe, age 26, was sentenced to serve 25 years in prison in United States District Court in Rutland, Vermont, for possessing firearms in furtherance of his cocaine trafficking and discharging a handgun and killing Kevin DeOliveira on January 2, 2015. At the time of his death, DeOliveira was 23 years old and enrolled at the University of Vermont. In April, Monroe pleaded guilty to two federal crimes in front of Chief Judge Geoffrey Crawford. He admitted to conspiring with Zachery Hust and others to distribute over 500 grams of cocaine during the second half of 2014. He also pleaded guilty to a firearms charge that he carried, used and possessed firearms during, and in furtherance of, the cocaine conspiracy, and, in particular, that he discharged a handgun on January 2, 2015, resulting in the death of Kevin DeOliveira.
In court, Monroe admitted participating in the cocaine conspiracy. During 2014, Monroe regularly obtained quantities of cocaine from DeOliveira and redistributed part of that cocaine to various customers in the Burlington area. In late 2014, Hust joined the conspiracy. For example, Hust and Monroe planned to obtain a kilogram of cocaine to sell to a marijuana customer of Hust, though that deal never came to fruition. During 2014, the conspiracy involved well over 500 grams of cocaine.
Monroe also acknowledged carrying, using, and possessing firearms in furtherance of this cocaine conspiracy. In 2014, the defendant possessed several firearms, including two handguns, a Glock and a Browning Buckmark .22. He regularly carried the Glock or displayed it in his residence when distributing cocaine. Monroe also admitted shooting DeOliveira and killing him on January 2, 2015. In late 2014, Monroe had a financial dispute with DeOliveira over several ounces of cocaine that had been damaged. DeOliveira claimed that the defendant owed him several thousand dollars for the cocaine. Monroe disputed this debt. On the morning of January 2, 2015, Monroe approached the door of DeOliveira's residence at 58 Green Street in Burlington. When DeOliveira opened the door of his apartment, the defendant discharged his Browning Buckmark .22 pistol, firing one bullet into DeOliveira’s eye. This shot killed Kevin DeOliveira.
U.S. Attorney Christina Nolan stated: “we commend our law enforcement partners in the Burlington Police Department and ATF for their collaboration and dogged investigation, which resulted in justice for Kevin DeOliveira and his devoted family. We know they continue to grieve, but we hope today’s significant sentence gives them some peace and an opportunity to move forward. This was a senseless crime of terrible violence that rocked the Burlington community. We hope the resolution of this case will be a signal to that community and the entire state that the U.S. Attorney’s Office and its partners at all levels will not tolerate violence in connection with the drug trade or in any other context, and that we will always join together to rectify this form of injustice and keep our communities safe. We also thank the Chittenden County State’s Attorney’s Office for its early assistance with this important case.”
The charges Monroe pleaded guilty to carry a mandatory minimum of 15 years, with a maximum sentence of life. Monroe, however, pleaded guilty pursuant to a binding plea agreement in which the parties agreed to a sentence of 25 years in prison. Today, the court accepted the plea agreement after a hearing before the court where both Monroe and Kevin’s mother addressed Chief Judge Crawford. Monroe has been detained since his arrest on June 12, 2017.
“Richard Monroe murdered Kevin DeOliveira in 2015. Proving this beyond a reasonable doubt and holding him accountable for this killing was not a simple matter, but that is why the men and women of the United States Attorney's Office and the Burlington Police Department are relentless in seeking justice for the crime victims in our city," said Brandon del Pozo, the Chief of Police of Burlington, Vermont. "Monroe's sentencing today will not bring Kevin back, but it will remind those who loved him that we did not forget that the government had a duty to hold his assailant responsible. And so he will be."
“Today’s sentencing demonstrates ATF’s commitment to targeting violent criminals who possess firearms in furtherance of narcotics trafficking”, said Mickey Leadingham, ATF Special Agent in Charge Field of the Boston Field Division. “Additionally, ATF’s forensic laboratory played a pivotal role in this investigation as they did specialized ballistic comparisons to the recovered firearm. ATF will continue to collaborate with our law enforcement partners to eliminate these type of crimes and keep our communities safe.”
The arrest of Monroe was the culmination of a multi-agency investigation that began in early 2015. The collaborative effort was led by the Burlington Police Department and the Bureau of Alcohol, Tobacco, and Firearms. United States Attorney Christina E. Nolan and Assistant United States Attorney Paul J. Van de Graaf prosecuted the case. Monroe is represented by Attorneys Mark Kaplan and Natasha Sen.
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.
Rep. Duncan D. Hunter and Wife Indicted for Converting Hundreds of Thousands of Dollars in Campaign Funds and Falsifying Campaign Finance RecordsRead the Press Release
Kelly Thornton, Director of Media Relations (619) 546-9726
NEWS RELEASE SUMMARY – August 21, 2018
SAN DIEGO – U.S. Rep. Duncan D. Hunter and his wife, Margaret E. Hunter, were indicted by a federal grand jury today on charges that they converted more than $250,000 in campaign funds to pay for personal expenses and filed false campaign finance records with the Federal Election Commission.
A 48-page indictment details scores of instances beginning in 2009 and continuing through 2016 in which the Hunters illegally used campaign money to pay for personal expenses that they could not otherwise afford. The purchases included family vacations to Italy, Hawaii, Phoenix, Arizona, and Boise, Idaho; school tuition; dental work; theater tickets; and domestic and international travel for almost a dozen relatives. The Hunters also spent tens of thousands of dollars on smaller purchases, including fast food, movie tickets, golf outings, video games, coffee, groceries, home utilities, and expensive meals.
To conceal their personal spending, the Hunters mischaracterized the purchases in FEC filings as “campaign travel,” “dinner with volunteers/contributors,” “toy drives,” “teacher/parent and supporter events,” “gift cards” for charitable donations, and “gift basket items,” among other false descriptions. Family dental bills paid with campaign funds were characterized as a charitable contribution to “Smiles for Life.” Theater tickets were mischaracterized as “holiday gift certificates.” Tickets for the family to see Riverdance at the San Diego Civic Theater became “San Diego Civic Center for Republican Women Federated/Fundraising.” And to disguise their children’s tuition payments to Christian Unified Schools in El Cajon, the Hunters provided a number of conflicting explanations, including that the payments were charitable contributions.
The Hunters’ improper use of campaign funds for personal expenses occurred despite numerous warnings about the prohibition against using campaign funds for personal expenses and repeated inquiries from Duncan Hunter’s campaign treasurer about questionable purchases. According to the indictment, the Hunters knew that many of their desired purchases could be made only by using campaign funds, since they did not otherwise have sufficient personal funds to pay for their purchases. The criminal investigation began in June of 2016, two months after the Federal Election Commission and the San Diego Union-Tribune questioned some of Hunter’s campaign expenses as potentially personal.
“The indictment alleges that Congressman Hunter and his wife repeatedly dipped into campaign coffers as if they were personal bank accounts, and falsified FEC campaign finance reports to cover their tracks,” said U.S. Attorney Adam Braverman. “Elected representatives should jealously guard the public’s trust, not abuse their positions for personal gain. Today’s indictment is a reminder that no one is above the law.”
The Hunters are scheduled to be arraigned on the indictment on Thursday at 10:30 a.m. before U.S. Magistrate Judge William V. Gallo. They are charged with Conspiracy to Commit Offenses Against the United States, Wire Fraud, Falsification of Records and Prohibited Use of Campaign Contributions.
This case was investigated by the San Diego Division of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Phillip Halpern, Emily Allen and Mark Conover. The United States Attorney’s Office would like to thank the Department of Justice’s Public Integrity Section, Election Crimes Branch for their assistance in this matter.\
Indictment Document (click
HERE )DEFENDANTS Case Number 18cr3677
Duncan D. Hunter Age: 41 Alpine, CA
Margaret E. Hunter Age: 43 Alpine, CA
SUMMARY OF CHARGES
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Sec. 371
Wire Fraud – Title 18, U.S.C., Sec. 1343
Falsification of Records – Title 18, U.S.C., Sec. 1519
Prohibited Use of Campaign Contributions – Title 52 U.S.C., Secs. 30109(d) and 30114(b)
Aiding and Abetting – Title 18, U.S.C., Sec. 2
AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Project Huntington Update: Four More Operation Saigon Sunset Defendants Plead Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Four more individuals indicted for their roles in a major, multi-state heroin and fentanyl distribution network pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. To date, 8 of the 15 defendants charged in connection with the Peterson drug trafficking organization have entered guilty pleas. Stuart commended the joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“The Peterson drug trafficking organization operated for years, selling deadly drugs in Huntington,” said United States Attorney Mike Stuart. “This is, however, not a time to celebrate. We need to ramp up our efforts, take back our streets, and send the drug thugs packing for good. Our good citizens have had enough, been terrorized enough, and their anger and determination fuels my efforts.”
Manget Peterson, also known as “Money,” 45, from Detroit, entered his guilty plea to the indictment charging him with conspiracy to distribute 100 grams or more of heroin and a quantity of fentanyl. Peterson admitted that between August 2017 and April 2018 he conspired with individuals to distribute heroin and fentanyl in Huntington, West Virginia. Peterson admitted that he obtained heroin from Willie Peterson, also known as “Chill,” in Detroit to sell in Huntington and would send drug proceeds to Willie Peterson. Peterson also admitted that between September 2017 and April 2018 he supplied Lonnie Berry, II with heroin to sell in exchange for money. Peterson faces between 5 years and up to 40 years in federal prison when he is sentenced on December 3, 2018.
David Miller, also known as “John,” 26, from Huntington, entered his guilty plea to the indictment charging him with conspiracy to distribute heroin and fentanyl. Miller admitted that between August 2017 and April 2018 he conspired with Willie Peterson, also known as “Chill,” and Manget Peterson, also known as “Money,” to distribute heroin and fentanyl in Huntington, West Virginia. Miller admitted that he would travel to Detroit to obtain heroin and fentanyl and then return to Huntington to sell the heroin and fentanyl. As part of the plea agreement, Miller admitted that in March 2018 he traveled to Detroit and purchased fentanyl and cocaine. Michigan State Police conducted a traffic stop on Miller and recovered 195 grams of fentanyl and 27 grams of cocaine. Miller admitted he intended to transport the substances to Huntington to sell. Miller faces up to 20 years in federal prison when he is sentenced on December 3, 2018.
Silas Pardue, 34, and Ashley Pardue, 33, from Barboursville, entered guilty pleas to the indictment charging them with conspiracy to distribute heroin.
Silas Pardue admitted that between August 2017 and April 2018 he conspired with individuals to distribute heroin in Huntington. As part of his plea agreement, Silas Pardue admitted that Manget Peterson, also known as “Money,” supplied him with heroin to use or to sell. Pardue admitted to selling heroin to a male in January 2018 at the WalMart on Route 60 in Huntington.
Ashley Pardue admitted that between August 2017 and March 2018 she conspired with Manget Peterson, also known as “Money,” to distribute heroin in Huntington. As part of her plea agreement, Ashley Pardue admitted that Manget Peterson, also known as “Money,” supplied her with heroin to use or to sell. Pardue admitted to selling heroin to a female in January 2018 at the WalMart on Route 60 in Huntington.
Silas and Ashley Pardue both face up to 20 years in federal prison when sentenced on December 3, 2018.
This investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West. The plea hearings were held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
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Philadelphia Man Pleads Guilty to Multiple Armed RobberiesRead the Press Release
Philadelphia – U.S. Attorney William M. McSwain announced that Jonathan Foggie, 34, of Philadelphia, Pennsylvania, pled guilty today to a Superseding Information charging him with two counts of Hobbs Act Robbery, two counts of using a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon.
Earlier this year, the defendant participated in numerous armed robberies. On January 11, 2018, the defendant, along with others, robbed Harris Hair Styling at gunpoint in Philadelphia. At the time, there were employees and several customers inside the salon, including a young child. When a customer placed himself between the gunmen and the child, the customer struggled with one of the robbers, and the robber shot the customer, causing permanent incapacitating injury. On January 26, 2018, the defendant, along with another individual, robbed Mike’s Service Center at gunpoint in Philadelphia. As an employee attempted to flee, the defendant hit the employee in the head with a firearm, tackled the employee to the ground, and shot the employee in his side.
Under the terms of the guilty plea, Foggie faces a maximum possible sentence of life imprisonment, with 35 years’ mandatory minimum imprisonment, a mandatory minimum five years supervised release up to a lifetime of supervised release, a $1,250,000 fine, and a $500 special assessment. A sentencing hearing is scheduled on December 10, 2018 before the Honorable Michael M. Baylson. Law enforcement continues its investigation into the other individuals responsible for these crimes.
“The defendant was a menace to the City of Philadelphia, terrorizing multiple victims and leaving some permanently injured,” said U.S. Attorney McSwain. “He clearly has no respect for the law, and we are pleased that he is now off the streets and in a jail cell.”
The case was investigated by the FBI and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Owners of Pennsylvania Based Internet Floral Company Sentenced to Prison for Tax FraudRead the Press Release
A Pennsylvania couple that owned and operated an internet floral business were sentenced to prison today for failing to pay over employment taxes to the Internal Revenue Service (IRS) and for filing fraudulent personal and corporate tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.
Andrew Bassaner (aka Andrew Bunchuk) was sentenced to 42 months in prison, and his wife and business partner, Vicki Bunchuk, was sentenced to six months in prison. The defendants were convicted in February 2018 following a jury trial.
According to the evidence introduced at trial, Andrew Bassaner and Vicki Bunchuk owned and operated Florist Concierge Inc. (FCI). For tax years 2010 through 2012, Bunchuk, aided and assisted by Bassaner, filed fraudulent corporate and personal income tax returns with the IRS. They diverted funds from FCI, which they falsely deducted as business expenses on FCI’s corporate returns and did not report as income on their personal returns. The expenses included over $200,000 in personal expenditures such as luxury cars, the down payment on a multimillion-dollar house, tickets to sporting events, and home repairs.
In addition, Bassaner and Bunchuk filed fraudulent employment tax returns for FCI that falsely classified its employees as independent contractors. Based on this fraudulent classification, Bassaner and Bunchuk claimed not to owe employment taxes on the wages paid to those individuals.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McSwain thanked special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney David Ignall and Trial Attorneys Christopher O’Donnell and Jack Morgan of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Opinion: Charlottesville, One Year LaterRead the Press Release
By Thomas T. Cullen
United States Attorney for the Western District of Virginia
The one-year anniversary of the odious “Unite the Right” (UTR) rally in Charlottesville thankfully passed without incident. Marked by mainly peaceful marches and rallies on the grounds of the University of Virginia and the Downtown Mall, this weekend’s events stood in stark contrast to the ugly and violent episodes of last year.
Law enforcement—particularly the Virginia State Police (VSP)—deserves enormous credit for planning, organizing, and implementing a security apparatus that provided a safe environment for protected First-Amendment activities and deterred those individuals intent on further violence from appearing and carrying out their nefarious plans.
As the U.S. Attorney for Western Virginia, I had the opportunity to observe this planning up close. Under the leadership of Secretary of Public Safety Brian Moran, VSP Superintendent Gary Settle, and newly appointed Charlottesville Police Chief RaShall Brackney, law-enforcement officials marshalled myriad state and local government agencies under one unified command structure.
This group of law enforcement had been preparing for the anniversary weekend since last fall. Drawing on the painful but important lessons of 2017, the unified command recognized the importance of cooperation and coordination in every aspect of this huge undertaking.
The results speak for themselves. Operating out of a make-shift command center at a local park, state and local officials executed the security plan nearly to perfection. By Friday afternoon, over 700 state troopers and police officers from across the Commonwealth arrived in Charlottesville to augment local police forces. These officers and troopers, including some from the Roanoke Valley, monitored the security perimeter around Court Square Park and the Downtown Mall, redirected vehicular traffic away from protected areas, conducted continuous bike patrols, and generally provided a reassuring presence for protesters, citizens, and business owners alike. Although focused on maintaining order and safety, these officers, who were working long shifts, away from home, in 90-degree heat, were cheerful, courteous, and professional.
The weekend was not without its challenges or controversy. On Saturday evening, some participants at a planned “Rally for Justice” event near UVA’s Rotunda, agitated by the security measures and strong police presence, loudly—and, in some cases, vulgarly—protested officers posted along the Lawn. Cooler heads quickly prevailed, and rally participants eventually made their way, under police protection, downtown. On Sunday, approximately 150 people gathered for a peaceful community event in Washington Park and, later, for a memorial service for Heather Heyer near the intersection of Fourth and Water Streets, where, last August 12, she was murdered by an avowed white supremacist. Police, ever vigilant, made sure both events occurred without incident.
In the wake of last weekend’s events, some Charlottesville residents and organizers have criticized what they perceived as the unwarranted and heavy-handed role of law enforcement. These voices, many of whom, it must be said, are hostile to law enforcement generally, questioned why these security measures were necessary given the absence of white supremacists from this year’s anniversary. This criticism is, in my view, both ironic and unjustified.
Indeed some of these critics are among the same people who loudly criticized Charlottesville officials and the VSP for a perceived passive response to the events of last summer. And even though UTR organizer Jason Kessler had withdrawn his application to hold an official event this year, law enforcement had no choice but to carry out the security plan based on the well-reasoned assumption, informed by intelligence received in the days and weeks leading up to the anniversary weekend, that potentially violent individuals and groups could still descend on Charlottesville. Simply put, in light of what had occurred last year and the real potential for violence to reoccur, it would have been a gross dereliction of duty for law enforcement to do anything else.
As Charlottesville continues to heal from the events of last summer, it is my hope that members of the community recognize the vital role and contributions of law enforcement. Thanks in no small part to their efforts, Charlottesville was able to mark this solemn occasion with the peace and reflection it deserved.
Oklahoma City Multi-Level Marketing Company Agrees to Distribution of $610,800 in Seized Funds to Alleged Fraud VictimsRead the Press Release
OKLAHOMA CITY – TREVO, LLC, and it principals, MARK STEVENS and HOLLI STEVENS, have agreed not to contest the distribution of $610,800 to victims of an alleged email fraud scheme.
In a civil forfeiture complaint filed in July 2016, the United States alleged that $610,800 in a bank account at Wells Fargo Bank in Trevo’s name were the proceeds of wire fraud. Trevo is a multi-level marketing company based in Oklahoma City, with its primary international office in Nigeria. Founded by Mark and Holli Stevens in 2009, its main product is nutritional supplement juice.
According to an affidavit incorporated into the government’s forfeiture complaint, perpetrators of a number of email fraud schemes instructed multiple victims to send money to various bank accounts under Trevo’s control at Wells Fargo Bank and BancFirst. In some instances, perpetrators pretended to strike up romantic relationships with victims. In others, they offered fictitious economic opportunities. In both cases, victims agreed to send money to bank accounts as instructed. In 2014, Trevo closed its BancFirst accounts and transferred its assets to Wells Fargo Bank.
After the United States filed its complaint and froze certain Trevo funds at Wells Fargo Bank, five individuals and one corporation notified the government they were victims of the alleged frauds and entitled to a portion of the seized funds. Trevo also filed a claim to the seized funds.
On August 14, 2018, the United States, Trevo, and Trevo’s principals agreed the seized funds will be distributed to the six victims and that Trevo’s claim should be dismissed. In reaching this settlement, Trevo and its principals did not admit any involvement in wire fraud and the United States did not concede its allegations lack merit. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the proper distribution of the seized funds.
This case was investigated by the FBI. Assistant U.S. Attorneys Wilson D. McGarry, Don Evans, and Brandon Hale worked on the case in the U.S. Attorney’s Office.
Northern Florida U.S. Attorney Supports DOJ/DEA Proposal to Reduce Opioid Manufacturing in 2019Read the Press Release
TALLAHASSEE, FLORIDA – The U.S. Attorney’s Office for the Northern District of Florida supports the proposal from the Department of Justice and U.S. Drug Enforcement Administration to reduce controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
Christopher P. Canova, U.S. Attorney for the Northern District of Florida, said: “Northern Florida communities and our neighbors across the country have suffered from the abuse of these highly addictive drugs, which can quickly destroy lives, families, friends, and careers. The U.S. Attorney’s Office is committed to supporting strategies that fight the epidemic. Some of these strategies include: limiting the production and prescription of opioids, prosecuting drug trafficking organizations and medical professionals who illegally divert controlled substances, raising public awareness especially among young people, and strengthening law enforcement and public health agency partnerships to use every available resource to monitor and combat the opioid crisis.”
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
“The opioid epidemic that we are facing today is the worst drug crisis in American history,” Attorney General Jeff Sessions said. “President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump’s goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Man Pleads Guilty to Conspiracy to Commit Mail and Wire Fraud and Aggravated Identity TheftRead the Press Release
CONCORD - Everton Ellis, 41, of Yonkers, New York, pleaded guilty in federal court to conspiracy to commit mail and wire fraud and aggravated identity theft, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in December 2017 and January 2018, in Nashua, New Hampshire, defendant Ellis conspired with others to steal identification information of other persons and use those identities to establish new Sprint accounts. They then caused Sprint to ship thousands of dollars’ worth of iPads and iPhones on credit. As part of the scheme, Ellis and his co-conspirators: (1) obtained large numbers of Vanilla Visa debit cards; (2) used the debit cards to establish Sprint accounts in the names of individuals whose identities had been stolen; (3) pretending to be the victims whose identities they had stolen, purchased large quantities of iPhones and iPads on credit; (4) caused Sprint to ship the purchased iPhones and iPads to residences in New Hampshire; (5) soon after the goods were delivered, traveled to the New Hampshire addresses where the goods were shipped, trespassed on the properties, and took the packages into their possession; (6) rented a vehicle and a motel room in Nashua for use in the scheme; and (7) manufactured and possessed false photo ID cards in the names of New Hampshire residents.
Ellis is scheduled to be sentenced on November 29, 2018.
“The U.S. Attorney’s Office continues to coordinate closely with our law enforcement colleagues to thwart fraud schemes,” said U.S. Attorney Murray. “We particularly focus on cases where individuals’ identities are stolen or compromised. I commend the law enforcement officers whose work disrupted this significant fraud scheme.”
“The U.S. Postal Inspection Service is committed to preserving the integrity of the U.S. Mail. We will continue to conduct investigations that seek prosecution of those who fraudulently use the U.S. Mail by working with our federal and local law enforcement partners.” Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division
This matter was investigated by the U.S. Secret Service, U.S. Postal Inspection Service, Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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New Mexico Man Sentenced to 40 Months in Federal Prison for Involuntary Manslaughter Related to Drunk DrivingRead the Press Release
PHOENIX – On August 20, 2018, Christopher Cortines, 26, of Santa Fe, N.M. and a member of the San Idelfonso Pueblo Tribe, was sentenced by U.S. District Judge John J. Tuchi to 40 months in prison, followed by three years of supervised release. Cortines had previously pleaded guilty to one count of involuntary manslaughter.
Cortines, who was driving his vehicle within the confines of the Navajo Nation near Dennehotso, Ariz., with a BAC level of between .118 and .151, caused his vehicle to crash, killing his sole passenger, his friend and a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation, Navajo Nation Department of Law Enforcement, and the Arizona Department of Public Safety. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-17-8316-PCT-JJT
RELEASE NUMBER: 2018-112_ Cortines
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Michael Cohen Pleads Guilty in Manhattan Federal Court to Eight Counts, Including Criminal Tax Evasion and Campaign Finance ViolationsRead the Press Release
Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the guilty plea of MICHAEL COHEN to charges of tax evasion, making false statements to a federally-insured bank, and campaign finance violations. The plea was entered followed the filing of an eight-count criminal information, which alleged that COHEN concealed more than $4 million in personal income from the IRS, made false statements to a federally-insured financial institution in connection with a $500,000 home equity loan, and, in 2016, caused $280,000 in payments to be made to silence two women who otherwise planned to speak publicly about their alleged affairs with a presidential candidate, thereby intending to influence the 2016 presidential election. COHEN pled guilty today before U.S. District Judge William H. Pauley III.
Attorney for the United States Robert Khuzami said: “Michael Cohen is a lawyer who, rather than setting an example of respect for the law, instead chose to break the law, repeatedly over many years and in a variety of ways. His day of reckoning serves as a reminder that we are a nation of laws, with one set of rules that applies equally to everyone.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “This investigation uncovered crimes of fraud, deception and evasion, conducted through a string of financial transactions that were carefully constructed and concealed to protect a variety of interests. But as we all know, the truth can only remain hidden for so long before the FBI brings it to light. We are all expected to follow the rule of law, and the public expects us - the FBI - to enforce the law equally. Today, Mr. Cohen has been reminded of this important lesson, as he acknowledged with his guilty plea.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “Today’s guilty plea exemplifies IRS Special Agents' rigorous pursuit of tax evasion and sends the clear message that the tax laws apply to everybody. Mr. Cohen’s greed to hide his income from the IRS cheats all the honest taxpayers, and we should not expect law abiding citizens to foot the bill for those who circumvent the system to evade paying their fair share.”
According to the allegations in the Information unsealed today as well as statements made in Manhattan federal court:
From 2007 through January 2017, COHEN was an attorney and employee of a Manhattan-based real estate company (the “Company”). COHEN held the title of “Executive Vice President” and “Special Counsel” to the owner of the Company (“Individual-1”). In January 2017, COHEN left the Company and began holding himself out as the “personal attorney” to Individual-1, who by that time had become the President of the United States.
In addition to working for and earning income from the Organization, at all times relevant to this Information, COHEN owned taxi medallions in New York City and Chicago worth millions of dollars. COHEN owned these taxi medallions as investments and leased the medallions to operators who paid COHEN a portion of the operating income.
The Tax Evasion Scheme
In late 2013, COHEN retained an accountant (“Accountant-1”) for the purpose of handling COHEN’s personal and entity tax returns. After being retained, Accountant-1 filed amended 2011 and 2012 Form 1040 tax returns with the Internal Revenue Service (“IRS”). For tax years 2013 through 2016, Accountant-1 prepared individual returns for COHEN and returns for COHEN’s medallion and real estate entities. To confirm he had reviewed and approved these returns, both COHEN and his wife signed a Form 8879 for tax years 2013 through 2016, and filed manually for tax year 2012. Between 2012 and the end of 2016, COHEN earned more than $2.4 million in income from a series of personal loans made by COHEN to a taxi operator to whom COHEN leased certain of his Chicago taxi medallions (“Taxi Operator-1”), none of which he disclosed to the IRS.
As a further part of the scheme to evade paying income taxes, COHEN also concealed more than $1.3 million in income he received from another taxi operator to whom COHEN leased certain of his New York medallions (“Taxi Operator-2”). This income took two forms. First, COHEN did not report the substantial majority of a bonus payment of at least $870,000, which was made by Taxi Operator-2 in 2012 to induce COHEN to allow Taxi Operator-2 to operate certain of COHEN’s medallions. Second, between 2012 and 2016, COHEN concealed nearly $1 million in taxable income he received from Taxi Operator-2’s operation of certain of COHEN’s taxi medallions.
To ensure the concealment of this additional operator income, COHEN arranged to receive a portion of the medallion income personally, as opposed to having the income paid to COHEN’s medallion entities. Paying the medallion entities would have alerted Accountant-1, who prepared the returns for those entities, to the existence of the income such that it would have been included on COHEN’s tax returns.
As a further part of his scheme to evade taxes, COHEN also hid the following additional sources of income from Accountant-1 and the IRS:
- A $100,000 payment received, in 2014, for brokering the sale of a piece of property in a private aviation community in Ocala, Florida.
- Approximately $30,000 in profit made, in 2014, for brokering the sale of a Birkin Bag, a highly coveted French handbag that retails for between $11,900 to $300,000, depending on the type of leather or animal skin used.
- More than $200,000 in consulting income earned in 2016 from an assisted living company purportedly for COHEN’s “consulting” on real estate and other projects.
In total, COHEN failed to report more than $4 million in income, resulting in the avoidance of taxes of more than $1.4 million due to the IRS.
False Statements to a Bank
In 2010, COHEN, through companies he controlled, executed a $6.4 million promissory note with a bank (“Bank-1”), collateralized by COHEN’s taxi medallions and personally guaranteed by COHEN. A year later, in 2011, COHEN personally obtained a $6 million line of credit from Bank-1 (the “Line of Credit”), also collateralized by his taxi medallions. By February 2013, COHEN had increased the Line of Credit from $6 million to $14 million, thereby increasing COHEN’s personal medallion liabilities at Bank-1 to more than $20 million.
In November 2014, COHEN refinanced his medallion debt at Bank-1 with another bank (“Bank-2”), who shared the debt with a New York-based credit union (the “Credit Union”). The transaction was structured as a package of individual loans to the entities that owned COHEN’s New York medallions. Following the loans’ closing, COHEN’s medallion debt at Bank-1 was paid off with funds from Bank-2 and the Credit Union, and the Line of Credit with Bank-1 was closed.
In 2013, in connection with a successful application for a mortgage from another Bank (“Bank-3”) for his Park Avenue condominium (the “2013 Application”), COHEN disclosed only the $6.4 million medallion loan he had with Bank-1 at the time. As noted above, COHEN also had a larger, $14 million Line of Credit with Bank-1 secured by his medallions, which COHEN did not disclose in the 2013 Application.
In February 2015, COHEN, in an attempt to secure financing from Bank-3 to purchase a summer home for approximately $8.5 million, again concealed the $14 million Line of Credit. Specifically, in connection with this proposed transaction, Bank-3 obtained a 2014 personal financial statement COHEN had provided to Bank-2 while refinancing his medallion debt. Bank-3 questioned COHEN about the $14 million Line of Credit reflected on that personal financial statement, because COHEN had omitted that debt from the 2013 Application to Bank-3. COHEN misled Bank-3, stating, in writing, that the $14 million Line of Credit was undrawn and that he would close it. In truth and in fact, COHEN had effectively overdrawn the Line of Credit, having swapped it out for a fully drawn, larger loan shared by Bank-2 and the Credit Union upon refinancing his medallion debt. When Bank-3 informed COHEN that it would only provide financing if COHEN closed the Line of Credit, COHEN lied again, misleadingly stating in an email: “The medallion line was closed in the middle of November 2014.”
In December 2015, COHEN contacted Bank-3 to apply for a home equity line of credit (“HELOC”). In so doing, COHEN again significantly understated his medallion debt. Specifically, in the HELOC application, COHEN, together with his wife, represented a positive net worth of more than $40 million, again omitting the $14 million in medallion debt with Bank-2 and the Credit Union. Because COHEN had previously confirmed in writing to Bank-3 that the $14 million Line of Credit had been closed, Bank-3 had no reason to question COHEN about the omission of this liability on the HELOC application. In addition, in seeking the HELOC, COHEN substantially and materially understated his monthly expenses to Bank-3 by omitting at least $70,000 in monthly interest payments due to Bank-2 on the true amount of his medallion debt.
In April 2016, Bank-3 approved COHEN for a $500,000 HELOC. By fraudulently concealing truthful information about his financial condition, COHEN obtained a HELOC that Bank-3 would otherwise not have approved.
Campaign Finance Violations
The Federal Election Campaign Act of 1971, as amended, Title 52, United States Code, Section 30101, et seq., (the “Election Act”), regulates the influence of money on politics. At all relevant times, the Election Act set certain limitations and prohibitions, among them: (a) individual contributions to any presidential candidate, including expenditures coordinated with a candidate or his political committee, were limited to $2,700 per election, and presidential candidates and their committees were prohibited from accepting contributions from individuals in excess of this limit; and (b) Corporations were prohibited from making contributions directly to presidential candidates, including expenditures coordinated with candidates or their committees, and candidates were prohibited from accepting corporate contributions.
On June 16, 2015, Individual-1 began his presidential campaign. While COHEN continued to work at the Company and did not have a formal title with the campaign, he had a campaign email address and, at various times, advised the campaign, including on matters of interest to the press, and made televised and media appearances on behalf of the campaign.
In August 2015, the Chairman and Chief Executive of Corporation-1, a media company that owns, among other things, a popular tabloid magazine (“Chairman-1” and “Magazine-1,” respectively”), in coordination with COHEN and one or more members of the campaign, offered to help deal with negative stories about Individual-1’s relationships with women by, among other things, assisting the campaign in identifying such stories so they could be purchased and their publication avoided. Chairman-1 agreed to keep COHEN apprised of any such negative stories.
Consistent with the agreement described above, Corporation-1 advised COHEN of negative stories during the course of the campaign, and COHEN, with the assistance of Corporation-1, was able to arrange for the purchase of two stories so as to suppress them and prevent them from influencing the election.
First, in June 2016, a model and actress (“Woman-1”) began attempting to sell her story of her alleged extramarital affair with Individual-1 that had taken place in 2006 and 2007, knowing the story would be of considerable value because of the election. Woman-1 retained an attorney (“Attorney-1”), who in turn contacted the editor-in-chief of Magazine-1 (“Editor-1”), and offered to sell Woman-1’s story to Magazine-1. Chairman-1 and Editor-1 informed COHEN of the story. At COHEN’s urging and subject to COHEN’s promise that Corporation-1 would be reimbursed, Editor-1 ultimately began negotiating for the purchase of the story.
On August 5, 2016, Corporation-1 entered into an agreement with Woman-1 to acquire her “limited life rights” to the story of her relationship with “any then-married man,” in exchange for $150,000 and a commitment to feature her on two magazine covers and publish more than 100 magazine articles authored by her. Despite the cover and article features to the agreement, its principal purpose, as understood by those involved, including COHEN, was to suppress Woman-1’s story so as to prevent it from influencing the election.
Between late August 2016 and September 2016, COHEN agreed with Chairman-1 to assign the rights to the non-disclosure portion of Corporation-1’s agreement with Woman-1 to COHEN for $125,000. COHEN incorporated a shell entity called “Resolution Consultants LLC” for use in the transaction. Both Chairman-1 and COHEN ultimately signed the agreement, and a consultant for Corporation-1, using his own shell entity, provided COHEN with an invoice for the payment of $125,000. However, in early October 2016, after the assignment agreement was signed but before COHEN had paid the $125,000, Chairman-1 contacted COHEN and told him, in substance, that the deal was off and that COHEN should tear up the assignment agreement.
Second, on October 8, 2016, an agent for an adult film actress (“Woman-2”) informed Editor-1 that Woman-2 was willing to make public statements and confirm on the record her alleged past affair with Individual-1. Chairman-1 and Editor-1 then contacted COHEN and put him in touch with Attorney-1, who was also representing Woman-2. Over the course of the next few days, COHEN negotiated a $130,000 agreement with Attorney-1 to himself purchase Woman-2’s silence, and received a signed confidential settlement agreement and a separate side letter agreement from Attorney-1.
COHEN did not immediately execute the agreement, nor did he pay Woman-2. On the evening of October 25, 2016, with no deal with Woman-2 finalized, Attorney-1 told Editor-1 that Woman-2 was close to completing a deal with another outlet to make her story public. Editor-1, in turn, texted COHEN that “[w]e have to coordinate something on the matter [Attorney-1 is] calling you about or it could look awfully bad for everyone.” Chairman-1 and Editor-1 then called COHEN through an encrypted telephone application. COHEN agreed to make the payment, and then called Attorney-1 to finalize the deal.
The next day, on October 26, 2016, COHEN emailed an incorporating service to obtain the corporate formation documents for another shell corporation, Essential Consultants LLC, which COHEN had incorporated a few days prior. Later that afternoon, COHEN drew down $131,000 from the fraudulently obtained HELOC and requested that it be deposited into a bank account COHEN had just opened in the name of Essential Consultants. The next morning, on October 27, 2016, COHEN went to Bank-3 and wired approximately $130,000 from Essential Consultants to Attorney-1. On the bank form to complete the wire, COHEN falsely indicated that the “purpose of wire being sent” was “retainer.” On November 1, 2016, COHEN received from Attorney-1 copies of the final, signed confidential settlement agreement and side letter agreement.
COHEN caused and made the payments described herein in order to influence the 2016 presidential election. In so doing, he coordinated with one or more members of the campaign, including through meetings and phone calls, about the fact, nature, and timing of the payments. As a result of the payments solicited and made by COHEN, neither Woman-1 nor Woman-2 spoke to the press prior to the election.
In January 2017, COHEN in seeking reimbursement for election-related expenses, presented executives of the Company with a copy of a bank statement from the Essential Consultants bank account, which reflected the $130,000 payment COHEN had made to the bank account of Attorney-1 in order to keep Woman-2 silent in advance of the election, plus a $35 wire fee, adding, in handwriting, an additional “$50,000.” The $50,000 represented a claimed payment for “tech services,” which in fact related to work COHEN had solicited from a technology company during and in connection with the campaign. COHEN added these amounts to a sum of $180,035. After receiving this document, executives of the Company “grossed up” for tax purposes COHEN’s requested reimbursement of $180,000 to $360,000, and then added a bonus of $60,000 so that COHEN would be paid $420,000 in total. Executives of the Company also determined that the $420,000 would be paid to COHEN in monthly amounts of $35,000 over the course of 12 months, and that COHEN should send invoices for these payments.
On February 14, 2017, COHEN sent an executive of the Company (“Executive-1”) the first of his monthly invoices, requesting “[p]ursuant to [a] retainer agreement, . . . payment for services rendered for the months of January and February, 2017.” The invoice listed $35,000 for each of those two months. Executive-1 forwarded the invoice to another executive of the Company (“Executive-2”) the same day by email, and it was approved. Executive-1 forwarded that email to another employee at the Company, stating: “Please pay from the Trust. Post to legal expenses. Put ‘retainer for the months of January and February 2017’ in the description.”
Throughout 2017, COHEN sent to one or more representatives of the Company monthly invoices, which stated, “Pursuant to the retainer agreement, kindly remit payment for services rendered for” the relevant month in 2017, and sought $35,000 per month. The Company accounted for these payments as legal expenses. In truth and in fact, there was no such retainer agreement, and the monthly invoices COHEN submitted were not in connection with any legal services he had provided in 2017.
During 2017, pursuant to the invoices described above, COHEN received monthly $35,000 reimbursement checks, totaling $420,000.
* * *
COHEN, 51, of NEW YORK, NEW YORK, pleaded guilty to five counts of willful tax evasion; one count of making false statements to a bank; one count of causing an unlawful campaign contribution; and one count of making an excessive campaign contribution.
COHEN’S sentencing is scheduled for December 12 at 11 a.m.
A chart identifying the charges and the maximum penalties applicable to COHEN is below.
Count
Charge
Maximum Penalty
1-5
Tax Evasion
5 years in prison
6
Making false statements to a federally insured bank
30 years in prison
7
Causing an unlawful corporate contribution
5 years in prison
8
Making an excessive campaign contribution
5 years in prison
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendant will be determined by the judge.
Mr. Khuzami praised the work of the FBI, the IRS, and the Special Agents of the U.S. Attorney’s Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Andrea M. Griswold, Rachel Maimin, Thomas McKay, and Nicolas Roos are in charge of the prosecution.
Mexican National Arrested for Heroin TraffickingRead the Press Release
BOSTON – A Mexican national was arrested yesterday in connection with drug trafficking activities that resulted in the seizure of approximately four kilograms of suspected heroin.
Miguel Angel Torres Morales, 39, was charged today by criminal complaint with possession with the intent to distribute one kilogram or more of heroin.
According to court documents, a cooperating witness arranged to purchase four kilograms of “china white,” referring to fentanyl, from a large-scale narcotics distributor for $55,000 per kilogram. The distributor agreed to deliver the drugs to the cooperating witness using a courier. On Aug. 20, 2018, Torres Morales drove a tractor trailer to the area of the “Park and Ride” parking lot on Granite Avenue in Milton to deliver the drugs. Federal agents stopped the tractor trailer and, in a cabinet behind the driver’s seat, located four brick-packed kilograms of tan powder wrapped in cellophane. A field test of the powder tested positive for heroin.
The charge of possession with intent to distribute one kilogram or more of heroin provides for a mandatory minimum sentence of 10 years in prison and up to life, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. Torres Morales will be subject to deportation proceedings upon completion of his sentence. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican Lawyer Heads to Prison for Drug TraffickingRead the Press Release
LAREDO, Texas – A 30-year-old Mexican resident has been ordered to federal prison following his conviction of conspiring to import and importing nearly 15 kilograms of heroin, announced U.S. Attorney Ryan K. Patrick. Nestor Omar Dueñas-Jimenez, of Villa de Alvarez, Colima, Mexico, pleaded guilty May 1, 2018.
Today, U.S. District Judge Marina Garcia Marmolejo handed Dueñas-Jimenez a 63-month sentence. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence. In handing down the sentence, the court noted that given his education and background, Dueñas-Jimenez should have known better.
Dueñas-Jimenez is licensed to practice law in Mexico.
On March 4, 2018, Dueñas-Jimenez applied for admission into the United States from Mexico via the Lincoln-Juarez International Bridge driving a Chevrolet Cruze. Customs and Border Protection (CBP) officers referred him to secondary inspection, during which time they discovered 14.66 kilograms of heroin hidden in his vehicle.
At the hearing, Dueñas-Jimenez said he tried smuggling the narcotics because he wanted money to buy a new car.
Authorities estimate the drugs have a street value of $450,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Giselle S. Guerra prosecuted the case.
Married Couple Who Teamed up to Run Floral Business and to Commit Tax Fraud Sentenced to PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Andrew Bunchuk a/k/a/ Andrew Bassaner, 45, and Vicki Bunchuk, 45, both of Southampton, Pennsylvania, were sentenced to 42 months’ and 6 months’ imprisonment, respectively, for tax fraud. The defendants were tried together and were convicted in February 2018; Andrew Bunchuk was convicted of six counts of aiding and assisting in the preparation of false income tax returns, and Vicki Bunchuk was convicted of six counts of filing false income tax returns. Both defendants were convicted of failing to collect, account for, and pay over taxes for employees.
According to the evidence introduced at trial, Bassaner and Bunchuk were the owners and operators of Florist Concierge Corporation, a company incorporated in Pennsylvania but located in Orlando, Florida. The company was a telephone call center and internet service that accepted floral arrangement orders from customers throughout the United States. The defendants fraudulently deducted more than $200,000 in personal expenses on their income taxes, claiming they were legitimate business expenses. The expenses included luxury cars, a down payment on a multimillion-dollar house, tickets to sporting events, and home repairs.
In addition, the evidence at trial showed that the defendants failed to collect and pay over employment taxes, Federal Insurance Contribution Act taxes, and federal unemployment taxes on behalf of employees who worked for Florist Concierge for fourteen consecutive quarters from 2001 through 2014. The defendants mischaracterized employees as contractors in an attempt to avoid collecting and paying over employment taxes.
“Our tax collection system relies on citizens playing by the rules. And the system only works if fraudsters like these defendants pay the price for lying and cheating the government out of paying their fair share of taxes,” said U.S. Attorney McSwain. “These defendants have earned their time behind bars to think long and hard about what they did.”
"The defendants’ actions resulted in the loss of tax revenue to the United States government and the loss of future social security and Medicare benefits for their employees," said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Let this serve as a strong reminder that the payment of individual and business taxes is an obligation, not a choice.”
This case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney David J. Ignall and trial attorneys Christopher P. O’Donnell and Jack A. Morgan of the Tax Division of the United States Department of Justice.
MS-13 Member Sentenced to 97 Months in Prison for Racketeering ConspiracyRead the Press Release
BOSTON – An MS-13 member was sentenced today in federal court in Boston for racketeering conspiracy.
Modesto Ramirez, a/k/a “Snoopy,” 28, a Honduran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 97 months in prison and three years of supervised release. Ramirez will also be subject to deportation proceedings upon completion of his sentence. In May 2018, Ramirez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy.
After a multi-year investigation, Ramirez was one of dozens of leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. According to court documents, MS-13 members in Massachusetts engaged in a variety of racketeering acts and crimes of violence, including six different murders between October 2014 and January 2016, as well as numerous attempted murders and conspiracies to commit murder.
Ramirez was a member of the Trece Locos Salvatrucha or TLS clique of MS-13. The racketeering evidence against Ramirez included a recording made by a cooperating witness in which Ramirez discussed his intention and willingness to kill a gang rival.
Many other members of the TLS clique were also prosecuted as part of this case. In total, 49 defendants have been convicted as part of this ongoing prosecution. Of the 49 convictions, 40 were the result of guilty pleas like in the case of Ramirez, while nine others were convicted after trial.
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 Gross; 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 today.