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21 August 2018
Fort Defiance Man Sentenced to 41 Months for StabbingRead the Press Release
PHOENIX– Yesterday, Irwin Carl Foster, 38, of Ft. Defiance, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 41 months’ imprisonment. Foster had previously pleaded guilty to assault with a dangerous weapon.
In August 2017, Foster intentionally stabbed the victim, a member of the Navajo Nation, with a knife resulting in a laceration to his chest and a punctured lung. Foster is also a member of the Navajo Nation.
Navajo Nation Criminal Investigations and the Federal Bureau of Investigation conducted the investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8287-PCT-JJT
RELEASE NUMBER: 2018-111_Foster
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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.
Former Orange County Deputy Sentenced for Receipt of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Kevin Michael Hutchinson (36, Orlando) to 10 years in federal prison for receiving child pornography. Hutchinson was also ordered to serve a 7-year term of supervised release and to register as a sex offender.
Hutchinson was charged by criminal complaint on April 20, 2018. He pleaded guilty on May 29, 2018.
According to court documents and evidence presented at the sentencing hearing, Hutchinson initially came to the attention of law enforcement when he distributed child pornography via a mobile application. Then, just hours before a federal search warrant was executed at his home, Hutchinson received multiple images and videos of child pornography via the internet. One of the items downloaded by Hutchinson was a “guide” on how to prepare young children for sex with adults. In total, Hutchinson possessed 5,872 images and 1,625 videos of child pornography. Of those, 630 of the images and 160 of the videos depicted infants or toddlers being sexually abused.
At the time of his arrest, Hutchinson was a deputy with the Orange County Sheriff’s Office. He was immediately placed on administrative leave and later terminated as a result of this case.
“The re-victimization of a child is always tragic,” said HSI Special Agent in Charge James C. Spero. “But it is particularly disturbing when the predator is someone in a position of trust and respect.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Nazi Labor Camp Guard Jakiw Palij Removed to GermanyRead the Press Release
Jakiw Palij, a former Nazi labor camp guard in German-occupied Poland and a postwar resident of Queens, New York, has been removed by U.S. Immigration and Customs Enforcement (ICE) to Germany, Attorney General Jeff Sessions of the U.S. Department of Justice, Secretary Kirstjen M. Nielsen of the U.S. Department of Homeland Security, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and ICE Deputy Director and Acting Director Ronald D. Vitiello announced today. ICE removed Palij based on an order of removal obtained by the Department of Justice in 2004.
“The United States will never be a safe haven for those who have participated in atrocities, war crimes, and human rights abuses,” said Attorney General Sessions. “Jakiw Palij lied about his Nazi past to immigrate to this country and then fraudulently become an American citizen. He had no right to citizenship or to even be in this country. Today, the Justice Department—led by Eli Rosenbaum and our fabulous team in the Human Rights and Special Prosecutions Section, formerly the Office of Special Investigations—successfully helped remove him from the United States, as we have done with 67 other Nazis in the past. I want to thank our partners at the State Department and the Department of Homeland Security for all of their hard work in removing this Nazi criminal from our country.”
“Nazi war criminals and human rights violators have no safe haven on our shores,” said Secretary Kirstjen M. Nielsen of the U.S. Department of Homeland Security. “We will relentlessly pursue them, wherever they may be found, and bring them to justice. The arrest and removal of Jakiw Palij to Germany is a testament to the dedication and commitment of the men and women of ICE, who faithfully enforce our immigration laws to protect the American people.”
Palij, 95, was born in a part of Poland that is situated in present-day Ukraine, immigrated to the United States in 1949 and became a U.S. citizen in 1957. He concealed his Nazi service by telling U.S. immigration officials that he had spent the war years working until 1944 on his father’s farm in his hometown, which was previously a part of Poland and is now in Ukraine, and then in a German factory.
As Palij admitted to Justice Department officials in 2001, he was trained at the SS Training Camp in Trawniki, in Nazi-occupied Poland, in the spring of 1943. Documents subsequently filed in court by the Justice Department showed that men who trained at Trawniki participated in implementing the Third Reich’s plan to murder Jews in Poland, code-named “Operation Reinhard.” On Nov. 3, 1943, some 6,000 Jewish men, women and children incarcerated at Trawniki were shot to death in one of the largest single massacres of the Holocaust. By helping to prevent the escape of these prisoners during his service at Trawniki, Palij played an indispensable role in ensuring that they later met their tragic fate at the hands of the Nazis.
On May 9, 2002, the Criminal Division’s then-Office of Special Investigations (OSI) and the U.S. Attorney’s Office of the Eastern District of New York filed a four-count complaint in the U.S. District Court for the Eastern District of New York, to revoke Palij’s citizenship. The complaint was based primarily upon his wartime activities as an armed guard of Jewish prisoners at Trawniki, who were confined there under inhumane conditions. Palij’s U.S. citizenship was revoked in August 2003 by a federal judge in the Eastern District of New York based on his wartime activities and postwar immigration fraud. In November 2003, the government placed Palij in immigration removal proceedings.
In decisions issued on June 10 and Aug. 23, 2004, U.S. Immigration Judge Robert Owens ordered Palij’s deportation to Ukraine, Poland or Germany, or any other country that would admit him, on the basis of his participation in Nazi-sponsored acts of persecution while serving during World War II as an armed guard at the Trawniki forced-labor camp in Nazi-occupied Poland under the direction of the government of Germany and his subsequent concealment of that service when he immigrated to the United States. As Judge Owens wrote in his decision ordering Palij’s deportation, the Jews massacred at Trawniki “had spent at least half a year in camps guarded by Trawniki-trained men, including Jakiw Palij.” In December 2005, the Board of Immigration Appeals denied Palij’s appeal.
The removal of Palij to Germany was effectuated through close cooperation between the Departments of Justice, Homeland Security and State. For nearly four decades, the Justice Department has vigorously pursued its mission to expel Nazi persecutors from the United States. The Palij case was the product of the Department’s longtime efforts to identify, investigate and take legal action against participants in Nazi crimes of persecution who reside in the United States. Since OSI began operations in 1979, that office and its successor, the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division, have won cases against 108 individuals who participated in Nazi crimes of persecution. In addition, attempts to enter the United States by more than 180 individuals implicated in wartime Axis crimes have been prevented as a result of the “Watch List” program initiated by OSI and enforced in cooperation with the Departments of State and Homeland Security.
This removal was supported by ICE’s Enforcement and Removal Operations and Office of the Principal Legal Advisor as well as the Human Rights Violators and War Crimes Center (HRVWCC). The HRVWCC is comprised of ICE HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, FBI’s International Human Rights Unit and HRSP. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders.
The case was investigated, litigated and supervised over the years by a host of attorneys and historians in OSI, the U.S. Attorney’s Office in the Eastern District of New York, and HRSP, including Director Eli M. Rosenbaum, Senior Trial Attorney Susan L. Siegal and Chief Historian Dr. Jeffrey Richter, all of whom have served with HRSP since its 2010 creation.
[[{"fid":"1088406","view_mode":"default","attributes":{"data-delta":"1"},"fields":{"format":"default"},"type":"media","field_deltas":{"1":{"format":"default"}},"link_text":false}]]Forest Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
Gulfport, Miss. – Jaycie Mario Thomas, 35, of Forest, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to conspiracy to possess with intent to distribute five kilograms or more of cocaine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA).
On March 3, 2016, an officer with the Louisiana State Police stopped Thomas for a traffic violation. During the stop, the officer learned that a gun in Thomas’s possession was stolen. The officer arrested Thomas, and upon inventorying his car, the officer located 15 kilograms of cocaine in the trunk. During the subsequent investigation by the DEA, it was revealed that Thomas was trafficking the cocaine to Jackson County, Mississippi, for his relative, Keith Brown, who was following in another car behind Thomas.
Brown pled guilty last Wednesday before Judge Guirola to conspiracy to possess with intent to distribute five or more kilograms of cocaine. In addition to the cocaine found in Thomas’ car, Brown admitted to conspiring with others to have over 30 kilograms of cocaine brought to the Mississippi Gulf Coast from Texas. He will be sentenced on November 7, 2018 and faces a maximum penalty of life in prison and a $10 million fine.
Thomas will be sentenced on November 12, 2018, by Judge Guirola, and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the Drug Enforcement Administration and the Louisiana State Police. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Felon from Many pleads guilty to possessing firearms after assault and police standoff at barbershopRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a felon from Many pleaded guilty Monday to possessing four firearms after an assault and police standoff at a barbershop.
Willie D. Carhee, 55, of Many, Louisiana, pleaded guilty before U.S. Chief District Judge S. Maurice Hicks Jr. to one count of possession of a firearm by a convicted felon. According to the guilty plea, police responded to a 911 call of a domestic assault that occurred at a barbershop in Many on April 27, 2017. After the assault, Carhee, the assailant, ran inside the barbershop where he worked and refused to leave. The victim told the police dispatcher that Carhee had a firearm at the barbershop as well as firearms at his home. Law enforcement set up a perimeter and called SWAT. A Many Police officer found and seized a loaded Hi-Point Firearms .45 caliber pistol in plain view in Carhee’s car, which was parked in front of the barbershop. After SWAT threw a telephone through the window of the barbershop, Carhee surrendered to authorities. A search of the barbershop yielded approximately 190 grams of marijuana and a scale. Police searched Carhee’s home and found a Marlin, Glenfield model 70, .22 caliber rifle; a Remington, model: 770, .308 caliber rifle; a Remington, model: 710, .30-06 caliber rifle; and several marijuana plants in the backyard. Carhee has at least six felony convictions, which are: possession of a Schedule II drug in the 10th Judicial District, Natchitoches Parish, on March 12, 2012; possession/introduction of contraband into a penal institution on July 10, 2008; manufacturing of a Schedule I drug and illegal carrying of a weapon in Sabine Parish, Louisiana, on September 14, 2006; unlawful possession of a firearm by a felon in the 294th Judicial District, Dallas, Texas; and reckless injury to a child in Dallas, Texas. Being a felon, Carhee is not allowed to possess a firearm.
Carhee faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of November 29, 2018.
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 ATF and Many Police Department conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
Federal Court Bars Georgia Tax Return Preparer and Her Business from Preparing Tax Returns and Orders Them to Disgorge Ill-Gotten GainsRead the Press Release
A federal court in Atlanta, Georgia entered a permanent injunction against Marjorie St. Jean and MarjorieStjeanLLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that St. Jean and MarjorieStjeanLLC disgorge $367,346.14, representing the ill-gotten gains that they received for the preparation of tax returns making false claims. The orders were signed by Judge Eleanor L. Ross of the U.S. District Court for the Northern District of Georgia.
The Earned Income Tax Credit (EITC) is a refundable tax credit available to certain low-income working people. In this case, the court found that St. Jean and MarjorieStjeanLLC, an entity owned by St. Jean through which St. Jean operates tax preparation stores, prepared tax returns that included fraudulent claims for the EITC, often based on bogus dependents, fabricated business income and expenses, and/or false filing status. The court also determined that St. Jean and MarjorieStjeanLLC systematically and routinely prepared tax returns that falsely claimed: (1) Fuel Tax Credits; (2) Household Help income; (3) unreimbursed employee business expenses; and (4) self-employed business income and/or expenses. The court concluded that injunctive relief and an order requiring that St. Jean and MarjorieStjeanLLC disgorge the ill-gotten gains that they received for the preparation of tax returns making such false claims was appropriate.
The IRS has a list of steps on its website that you can take and ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division at [email protected] with details.
Duffield Man Pleads Guilty to Manufacturing Marijuana, Felon in Possession of a FirearmRead the Press Release
Abingdon, VIRGINIA – A Duffield, Virginia man, who was on supervised release for a previous federal conviction after having served a lengthy state prison sentence for arson, pled guilty last week in U.S. District Court in Abingdon to federal marijuana and firearms charges, United States Attorney Thomas T. Cullen announced today.
Claude Gene Sloan, 75, pleaded guilty last week to one count of manufacturing and possessing with the intent to distribute more than 100 marijuana plants, one count of distribution of marijuana, and one count of being a previously convicted felon illegally in possession of a firearm. Sloan was previously convicted of manufacturing marijuana and was on federal supervised release at the time of these offenses.
Sentencing has been scheduled for November 7, 2018 at 2:30 p.m. in the U.S. District Court in Abingdon.
The investigation of the case was conducted by the Scott County Sheriff’s Office, Southwest Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States
Donnie Taylor Sentenced to Fourteen Years in Prison for Distribution of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On August 20, 2018, Donnie Taylor, 44, of Bean Station, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 168 months in federal prison, followed by a lifetime of supervised release, for distribution of child pornography in east Tennessee.
According to his plea agreement on file with U.S. District Court, Taylor admitted to sending multiple images of child pornography via social media. A special agent with the Department of Homeland Security logged into a social media account to interact and identify potential possessors and distributors of child pornography. The agent encountered Taylor and began a private message conversation. Taylor sent multiple private messages containing child pornography to the agent. In addition, agents determined that Taylor distributed child pornography to other persons on social media.
This investigation was the product of a partnership between the U.S. Department of Homeland Security, Knoxville Police Department’s Internet Crimes Against Children task force and Tennessee Highway Patrol. Assistant U.S. Attorney Meghan Gomez represented the United States in court proceedings.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
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Dominican National Sentenced for Role in Fentanyl Trafficking OrganizationRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a widespread fentanyl trafficking organization.
Bronin Martin Gonzalez Arias, a/k/a Rafael Omar Arias-Rodriguez, 37, was sentenced by U.S. District Court Judge Douglas Woodlock to 18 months in prison and three years of supervised release. The government asked for a sentence of 57 months in prison. Gonzalez Arias will be subject to deportation proceedings. In April 2018, Gonzalez Arias pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine, and fentanyl.
On May 30, 2017, more than 200 federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Gonzalez Arias was arrested and charged along with Patrone and approximately 30 co-conspirators.
Gonzalez Arias was a redistributor for Patrone’s organization. Throughout his time on the street, Gonzalez Arias distributed between 160-280 grams of fentanyl.
When first charged, Gonzalez Arias falsely identified himself as Rafael Omar Arias-Rodriquez and claimed to be a United States citizen in his detention hearing before the Court; in fact, he is Dominican, and in the country illegally.
Patrone pleaded not guilty and is scheduled to stand trial on Oct. 29, 2018.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Pleads Guilty to Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON – The alleged leader of a Boston-based heroin and fentanyl trafficking organization pleaded guilty today in federal court in Boston.
Jose Antonio Lugo-Guerrero, a/k/a Fernando Rivera-Rodriguez, 40, who formerly resided in Mattapan, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 27, 2018. In February 2017, Lugo-Guerrero was arrested and charged along with 22 co-defendants.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston; the former led by Fernando Hernandez, and the latter led by Jose Antonio Lugo-Guerrero. Hernandez’s organization sold heroin and fentanyl to customers who re-distributed a portion of the drugs they obtained. Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero sold kilograms of heroin, fentanyl, and cocaine to customers in Boston, New Bedford, Fall River, and surrounding areas. The evidence, including federal wiretaps in late 2016 and early 2017, further showed that he obtained some of the drugs he sold by robbing other drug dealers. On Nov. 3, 2016, Lugo-Guerrero and five co-defendants traveled to New Bedford panning to rob a drug dealer who had stolen half a kilogram of heroin from Lugo-Guerrero. At Lugo-Guerrero’s direction, one of the co-defendants transported a firearm and provided it to another co-defendant just before the attempted robbery. Based on intercepted communications, law enforcement agents were aware of the planned robbery and stopped and questioned the defendants before it occurred. As a result, Lugo-Guerrero aborted his plan that night and returned to Boston.
In February 2018, Hernandez was sentenced to 188 months (15½ years) in prison after pleading guilty in November 2017. The court found that Hernandez was responsible for distributing more than a kilogram of heroin over a two-month period in the summer of 2016.
Lugo Guerrero faces a mandatory minimum 15 years in prison and up to life, a minimum of five years of supervised release, a fine of up to $4 million, and will be deported 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William Gross; Bridgewater Police Chief Christopher Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Doctor Sentenced for Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that physician EWALD J. ANTOINE was sentenced today by U.S. District Judge Lorna G. Schofield to one year and one day in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. ANTOINE falsely posed as the owner of two medical clinics, which were actually owned by a corrupt businessman, and falsely claimed that he had examined and treated hundreds of patients whom he had not in fact seen. ANTOINE pled guilty on January 11, 2018, to health care fraud and conspiracy to commit health care fraud, mail fraud, and wire fraud.
U.S. Attorney Geoffrey S. Berman said: “The Medicare and Medicaid programs are intended to provide essential medical services to the elderly and the needy, not to enrich corrupt doctors and other fraudsters. The real victims in this case are U.S. taxpayers and needy patients with legitimate medical needs. Today’s sentence sends a strong message that those who cheat Medicare and Medicaid, including physicians who abuse their licenses and professional oaths, will be held accountable.”
According to the Indictment and other documents filed in federal court, as well as statements made during ANTOINE’s plea proceeding and sentencing:
Between 2007 and 2013, Aleksandr Burman owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed. Under New York State law, medical clinics must be owned and operated by a medical professional. To circumvent this requirement, Burman, who was not a medical professional, hired doctors to pose as the nominal owners of each of the Clinics. ANTOINE was one of those doctors, agreeing to sign a variety of fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that ANTOINE was the sole owner of Sunlight Medical and Psychiatric Services, P.C., and Coney Island Medical Services, P.C., two of the six Clinics. ANTOINE and his co-conspirators also helped prepare false medical records to support fraudulent reimbursement claims submitted to Medicare and Medicaid. ANTOINE signed medical charts falsely stating that he had examined patients, and wrote prescriptions and referrals for medically unnecessary and/or non-existent tests and supplies.
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In addition to the prison term, ANTOINE, 67, of Valley Stream, New York, was sentenced to three years of supervised release. Judge Schofield also ordered ANTOINE to pay restitution of $1,825,544 and to forfeit $269,412 in ill-gotten gains.
ANTOINE is the eighth defendant, and the second physician, who has been sentenced after pleading guilty in this case and a related case. The other defendants include: Aleksandr Burman, the leader of the scheme, who was sentenced in a related case on May 8, 2017, to 10 years in prison; Marina Burman, the former wife of Aleksandr Burman and the owner of a related medical supply company, sentenced on May 17, 2018, to three years in prison; Mustak Y. Vaid, a physician sentenced on August 1, 2018, to 18 months in prison; Asher Oleg Kataev, a Burman business partner, sentenced on May 31, 2018, to three years in prison; Alla Tsirlin, a Clinic office manager, sentenced on June 5, 2018, to one year and one day in prison; and Edward Miselevich and Ivan Voychak, Burman’s partners who jointly ran a related ambulette company, sentenced on June 12 and July 19, 2018, respectively, to three years in prison each.
Three additional defendants – a doctor (Paul J. Mathieu), a physical therapist (Hatem Behiry), and an occupational therapist (Lina Zhitnik) – are scheduled to go to trial before Judge Schofield on November 26, 2018. These three remaining defendants are presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
Corpus Man Sent to Prison for Distributing Sexually-Explicit Images of ChildrenRead the Press Release
CORPUS CHRISTI, Texas - A 37-year-old Corpus Christi man has been ordered to prison following his admissions to distributing child pornography on at least two occasions, announced U.S. Attorney Ryan K. Patrick. David Medina pleaded guilty May 16, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Medina to 102 months in prison. In imposing the sentence, the court noted Medina “needs help” and considered victim impact letters detailing the effect of the continued distribution of images depicting how they were sexually abused as children. Medina was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Medina will also be ordered to register as a sex offender.
In September 2016, the FBI Child Exploitation Task Force conducted an investigation on a file sharing network looking for potential offenders sharing child pornography. An officer was eventually able to download many images of child pornography from a computer and a specific IP address linked to David Medina in Corpus Christi. Agents obtained a search warrant for Medina’s residence, after which agents seized several digital devices that led to the discovery of more than 3,500 images and 28 videos of child pornography.
Another investigation in 2017 led authorities to a different computer sharing child pornography which was traced to a second residence in Corpus Christi linked to Medina. He cellular phone was seized and allegedly found to contain more than 1,000 images and 95 videos of child pornography.
In Feb. 21, 2018, authorities received information that someone was downloading child pornography at a hotel in Corpus Christi. Medina was found to be renting a room at that location and seized his laptop as part of the investigation. At that time, Medina again admitting to distributing child pornography.
He has been an will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney (AUSA) Hugo R. Martinez prosecuting the case. AUSA Brittany Jensen handled the sentencing on this matter, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Columbus Resident Pleads Guilty to Distributing MethamphetamineRead the Press Release
COLUMBUS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Charles Daniel Yandle, age 42, of Thomaston, Georgia, entered a guilty plea to a Superseding Information alleging Distribution of Methamphetamine before Chief U.S. District Court Judge Clay D. Land in Columbus, Georgia on August 20, 2018. This plea subjects Mr. Yandle to a maximum sentence of 20 years’ imprisonment, a fine of up to $1 million, or both.
In his plea agreement, Mr. Yandle admitted that on May 30, 2017, he sold approximately 80 grams of 99% pure methamphetamine to an undercover officer in exchange for $1800. After his arrest, Mr. Yandle admitted to selling drugs.
Mr. Yandle is scheduled to be sentenced in Columbus on November 27, 2018, following a pre-sentence investigation and report.
This case was investigated by the Taylor County Sheriff’s Office and the Upson County Narcotics Task Force. Assistant United States Attorney Crawford Seals 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.
Citizen of Dominican Republic Extradited to New Hampshire to Face Drug Conspiracy ChargeRead the Press Release
Concord – United States Attorney Scott W. Murray announced today that Geraldo De La Cruz Cabral Pena appeared in federal court today after being extradited from the Dominican Republic to face a drug trafficking conspiracy charge.
Cabral Pena, a citizen of the Dominican Republic, is charged with participating in a conspiracy to distribute, and to possess with the intent to distribute, one kilogram or more of heroin from 2013 through October 2016. A grand jury for the District of New Hampshire indicted Cabral Pena on the charge on January 25, 2017.
After he was charged, authorities in the United States and in the Dominican Republic worked to locate Cabral Pena. He was arrested by Dominican Republic authorities in March 2018. Extradition proceedings resulted in his release to the DEA on August 16, 2018. DEA agents brought him from the Dominican Republic to the United States the same day.
“Defendants facing federal indictment on drug trafficking charges should expect that the full weight of law enforcement will be brought to bear to return them to the United States for trial” said U.S. Attorney Murray. “This was a cooperative effort and I want to thank the Dominican authorities as well as the federal, state and local law enforcement agencies that contributed to this successful result.”
“DEA is addressing the threat, both domestically and internationally,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s extradition not only holds Mr. Cabral Pena accountable for his actions but serves as a warning to those traffickers who are fueling the opioid epidemic, that DEA will do everything in its power to bring them to justice. This investigation demonstrates the strength and continued commitment of our local, state, federal and international law enforcement partners.”
If convicted, Cabral Pena faces a minimum mandatory sentence of 10 years and up to life in prison and a fine of $10,000,000.
The indictment is an allegation. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; and the Methuen Police Department. Assistant United States Attorney Donald A. Feith is prosecuting the case.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Christopher Blattner Sentenced to 30 Years for Using Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
ALBUQUERQUE – U.S. District Judge James O. Browning sentenced Christopher Blattner, 38, of Albuquerque, N.M., to 30 years of imprisonment this morning for possessing firearms during and in furtherance of drug trafficking crimes. The Judge ordered Blattner’s federal sentence to run consecutive to the 28-year sentence Blattner already is serving for convictions on second-degree murder (firearms enhancement) and aggravated assault on a peace office with a deadly weapon (firearms enhancement), and voluntary manslaughter in the 2nd Judicial District Court (Bernalillo County) for the State of New Mexico. Blattner will be on supervised release for five years after completing his prison sentence.
In announcing the sentence, U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief of Police Michael Geier of the Albuquerque Police Department (APD) said that Blattner was prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Blattner was charged in Feb. 2013, with violating the federal narcotics and firearms laws in a five-count indictment. Counts 1 and 5 of the indictment charged Blattner with distributing methamphetamine in Bernalillo County, N.M., on Aug. 6, 2012 and Aug. 17, 2012, respectively. Count 2 charged Blattner with possessing a firearm during and in relation to a drug trafficking crime on Aug. 6, 2012. Counts 3 and 4 charged Blattner with being a felon in possession of firearms and ammunition on Aug. 6, 2012 and Aug. 17, 2012. Blattner’s prior criminal history includes four prior narcotics trafficking convictions in the 2nd and 13th Judicial District Courts for the State of New Mexico
In Aug. 2014, a federal grand jury filed an eight-count superseding indictment that added Blattner’s wife, Brittany Blattner, 29, as a co-defendant. The superseding indictment charged Blattner with two counts of methamphetamine distribution; two counts of using and carrying a firearm in relation to a drug trafficking crime; and three counts of being a felon in possession of firearms and ammunition. It also charged Blattner and Brittany Blattner with one count of jointly distributing methamphetamine. According to the indictment, Blattner and his wife committed the crimes charged in Bernalillo County, N.M., in Aug. 2012.
On April 10, 2015, Blattner entered a guilty plea to Counts 2 and 5 of the superseding indictment, each of which charged him with possessing a firearm in furtherance of a drug trafficking crime. In his plea agreement, Blattner admitted possessing two Glock semi-automatic pistols on Aug. 6, 2012, in furtherance of a methamphetamine trafficking crime. Blattner also admitted possessing two different Glock semi-automatic pistols on Aug. 17, 2012, in furtherance of another methamphetamine trafficking crime.
On March 24, 2015, Brittany Blattner entered a guilty plea to a felony information charging her with simple possession of methamphetamine. In entering the guilty plea, she admitted possessing methamphetamine on Aug. 17, 2012, in Bernalillo County. Brittany Blattner was sentenced on June 29, 2015, to two years of probation.
This case was investigated by ATF’s Albuquerque office and APD, and was prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Channelview Man Sentenced for Trafficking Oxycodone Stolen from Arkansas PharmacyRead the Press Release
LUFKIN, Texas - A 35-year-old Channelview, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Clarence Davis Winslow, II, pleaded guilty on Sep. 20, 2017, to possession with intent to distribute a controlled substance and was sentenced to 120 months in federal prison by U.S. District Judge Ron Clark on Aug. 20, 2018. Winslow was also ordered to pay restitution in the amount of $46,589.74.
According to information presented in court, on March 30, 2017, a law enforcement officer in Nacogdoches County, Texas stopped a vehicle, driven by Winslow, for a traffic violation. During the stop, the officer called for a canine and ran the identifications of the passengers through law enforcement databases. The information showed a possible burglary warrant outstanding from another state. During a search of the vehicle, the officer located a laundry bag containing numerous prescription pills still in the bottles. These pills were determined to have been stolen in a burglary the previous night of a Walgreens pharmacy in Arkansas. Arkansas police spoke with the Nacogdoches Sheriff’s Office and stated they were currently investigating two Walgreens burglaries in Little Rock. A check with Walgreens records determined the pills recovered in the traffic stop were from both Walgreens burglaries. A total of 6,403 oxycodone pills, in various dosage units, were recovered. Winslow was indicted on Sep. 20, 2017 and charged with drug trafficking violations.
This case was investigated by the Nacogdoches County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Paul A. Hable.
Canton Man Sentenced to Two Years in Prison under Project EJECTRead the Press Release
Jackson, Miss. – Toroski Wolfe, 32, of Canton, was sentenced today, by United States District Judge Daniel P. Jordan III, to two years in federal prison followed by three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI). Wolfe was also ordered to pay a $1,500 fine.
In 2017, Wolfe, a convicted felon, bought a 38-Special revolver from a friend for $100. On December 11, 2017, Wolfe got into an altercation with another man and used the revolver to fire two warning shots into the ground. Jackson Police Department responded, and Wolfe admitted that he possessed and shot the gun.
This case was investigated by the FBI and the Jackson Police Department. It is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with FBI agents and Project EJECT task force members in the investigation of this case.
California Man Claiming to Be a Billionaire Financier Sentenced to More Than Five Years in Prison in Multimillion-Dollar Fraud SchemeRead the Press Release
A California man who falsely told investors that he was a billionaire who could access certain financing, including hundreds of millions in cash in an overseas bank account, in exchange for up-front fees was sentenced today in federal court in Denver, Colorado to 70 months in prison.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service’s Chicago Division and Acting Inspector in Charge Kevin Rho of the U.S. Postal Inspection Service’s Denver Division made the announcement.
Kenneth Brewington, 55, of Corona, California, was sentenced by U.S. District Judge Philip A. Brimmer of the District of Colorado, who also ordered Brewington to serve three years of supervised release and to pay restitution in the amount of $563,526.78.
Brewington was convicted on May 18, following a two-week jury trial, of one count of conspiracy to commit mail and wire fraud, one count of mail fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, one count of laundering monetary instruments, and two counts of engaging in monetary transactions in property derived from specified unlawful activity.
According to evidence presented at trial, beginning in approximately 2009, Brewington told victims that he required millions of dollars in supposed fees in order to access his purported extraordinary wealth abroad, which in turn could be used for financing. During the scheme, Brewington and his coconspirators sold promissory notes to victims, including through a financial-services marketing company based in Denver called Compass Financial Solutions (CFS). Brewington and his coconspirators falsely represented to their victims that their money would be used to pay for, among other things, bank transaction fees and tax penalties to the IRS. To conceal the nature of their scheme, Brewington and his coconspirators told victims to wire their funds into an attorney-trust account. The funds from that account, however, were then sent to Brewington and his coconspirators and spent on, among other things, repayments to other investors and personal expenses. Brewington was not, in fact, wealthy and was instead struggling to pay his personal debts, the evidence showed.
The evidence presented at trial showed that Brewington’s victims lost over $3 million to his fraud scheme.
The former CEO of CFS, Brian G. Elrod, 59, of Lakewood, Colorado, and the company’s former corporate counsel, William E. Dawn, 80, of Denver, Colorado, previously pleaded guilty for their roles in the scheme. Elrod was sentenced to serve 41 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,440,051.29. Dawn was sentenced to time served and ordered to pay restitution in the amount of $366,752.01.
The investigation was led by the U.S. Postal Inspection Service. Trial Attorneys Anna G. Kaminska, Kyle C. Hankey and Jennifer G. Ballantyne and Assistant Chief Henry P. Van Dyck of the Criminal Division’s Fraud Section prosecuted the case. The U.S. Attorney’s Office for the District of Colorado and the Securities and Exchange Commission also provided substantial assistance in this matter.
CVS Pharmacy Pays $1 Million Penalty in Settlement with DOJ for violations of the Controlled Substances ActRead the Press Release
BIRMINGHAM – The Department of Justice has reached an agreement with CVS Pharmacy, Inc., to resolve violations of the federal Controlled Substances Act and its implementing regulations at CVS Pharmacy locations throughout the Northern District of Alabama, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Special Agent in Charge Stephen G. Azzam.
Under the terms of the agreement, CVS paid a civil penalty of $1 million to the United States. It is the largest civil fine paid in Alabama for a DEA registrant.
“Our office is committed to ensuring total compliance with the Controlled Substances Act and we will vigorously enforce violations wherever we find them,” said Assistant U.S. Attorney Jay Saxon, who handled the case. “All DEA registrants should remember that DEA licensure is a privilege; it is not a right. Where that privilege is abused, the Justice Department will take all necessary action to ensure that it is revoked,” he said.
“The misuse of prescription painkillers is a public health crisis in the state of Alabama,” Azzam said. “DEA registrants have a responsibility to handle controlled substances in compliance with the Controlled Substances Act. DEA has an obligation to improve public health and safety, and we are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
Each CVS Pharmacy retail store located in the Northern District of Alabama is registered separately with the DEA and is assigned a unique DEA registration number that authorizes it to dispense controlled substances pursuant to the provisions of the Controlled Substances Act. Investigation by the DEA found violations of the act and its implementing regulations relating to recordkeeping by CVS. The civil penalty CVS paid covers all recordkeeping violations discovered in the Northern District of Alabama prior to July 29, the effective date of the settlement agreement. The Justice Department will continue actively monitoring compliance with the Controlled Substances Act by CVS and other DEA registrants throughout the Northern District of Alabama.
The DEA and Saxon investigated and handled the case.
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Brighton, NY Man Arrested for Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced that Richard Dzionara-Norsen, 26, of Brighton, NY, was arrested and charged by criminal complaint with possession and distribution of child pornography. The charges carry a minimum penalty of 5 years imprisonment and maximum of 20 years imprisonment, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that Dzionara-Norsen was apprehended by members of the FBI Child Exploitation Task Force after Dzionara-Norsen was allegedly observed by federal agents actively trading child pornography online. According to the criminal complaint, Dzionara-Norsen admitted to agents that he traded child pornography and had done so for a period of several months while living in Brighton, NY.
The defendant made an initial appearance on August 20, 2018, before United States Magistrate Judge Marian W. Payson. Dzionara-Norsen is being held without bail pending the results of a detention hearing.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent in Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
9 Defendants Charged in Joint Federal and State Investigation Targeting Drug Sales in JolietRead the Press Release
CHICAGO — Nine individuals are facing criminal charges as part of a joint federal and state investigation into heroin and cocaine sales in the Joliet area.
As part of the probe, law enforcement intercepted cellphone communications between the defendants, conducted extensive surveillance, and seized several items, including three firearms, more than three kilograms of cocaine, more than 60 grams of heroin, approximately $90,000 in illicit cash proceeds, and several vehicles. Authorities also carried out court-authorized searches of residences in the 800 block of Vine Street in Joliet, the 1400 block of Exposition Avenue in Aurora, and the 2100 block of Englewood Avenue in Lockport. The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking organizations.
Seven defendants are charged in U.S. District Court in Chicago in conspiracies to possess controlled substances with the intent to distribute. Two defendants are charged in Will County with state drug offenses.
Several of the federal defendants were arrested last week and have made initial appearances in federal court in Chicago. The state defendants will appear in Will County Circuit Court at a later time.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the Will County State’s Attorney’s Office, Joliet Police Department, Bolingbrook Police Department, Will County Sheriff's Office, Cook County Sheriff's Office, Orland Park Police Department, Evergreen Park Police Department, Aurora Police Department, and the U.S. Bureau of Prisons Joint Intelligence Sharing Initiative. Assistant U.S. Attorney Devlin N. Su represents the government in the federal cases.
Charged with federal conspiracies are WILLIAM NOBLES, 51, of Joliet; JARON NABORS, 38, of Joliet; ERICKA PRUITTE, 38, of Joliet; KALVIN STEWART, 51, of Aurora; GREGORY WARFIELD, 67, of Joliet; CAESAR ESTRADA, 44, of Joliet; and LUIS CONTRERAS, 40, of Joliet. Charged in state court are TASHAUN M. MCCARTER, 40, of Joliet; and DAVID L. WHITE, 53, of Joliet.
According to the federal complaints, Nobles is affiliated with the Joliet faction of the Black Gangster Disciples street gang and operates a drug trafficking organization in the Joliet area. Nabors has conspired with Nobles to distribute the drugs, while Pruitte served as a courier on behalf of Nabors, the charges allege. The complaints describe several instances in which the trio allegedly conspired to distribute narcotics, including in February 2018 when Nobles allegedly supplied Pruitte with cocaine that had been distributed to Nobles by Estrada and Contreras, knowing that Pruitte would then deliver the drugs to Nabors. After the meeting, law enforcement pulled over Pruitte’s vehicle and discovered cocaine, crack cocaine and heroin inside the car, the charges allege.
A separate cocaine seizure occurred in December 2017 after Stewart allegedly supplied Warfield with the drugs during a meeting in Aurora, knowing that Warfield would then deliver the drugs to Nobles. After the meeting, law enforcement pulled over Warfield’s pickup truck and discovered the cocaine in a shopping bag hidden in the passenger-side molding, according to the complaints. Officers also discovered a loaded handgun in the center console of the truck, the complaints state.
The federal conspiracy charges carry a mandatory minimum sentence of five years in prison and a maximum penalty of 40 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that charges contains only accusations and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
22 Individuals Names in Federal Indictments Charging Money Laundering and Drug TraffickingRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that a federal Grand Jury indicted 22 people for their roles in drug trafficking and money laundering operations that included the use of Casa Herrera, a local money remitter business.
The two Indictments charged Alfredo Herrera, 73, of Bartlesville, Domingo Aguirre, 60, of Tulsa, and Javier Passement, 53, of Tulsa, with violating federal money laundering and drug conspiracy statutes. Herrera is the owner and operator of Casa Herrera. Aguirre and Passement worked as employees of Casa Herrera. The Grand Jury also indicted Pedro Perez, Jr., 65, of Broken Arrow, who owns and operates Servicios Perez, another local money remitter business alleged to have laundered drug proceeds to a Mexican source of supply. The Indictments allege that these money remitter businesses distributed large quantities of methamphetamine throughout Tulsa and surrounding areas. According to the Indictments, drug proceeds would be transmitted by wire transfer to a Mexican source of supply using “nominee names.” A “nominee name” is used to hide the true recipient of the money.
United States Attorney Shores stated, “Drug abuse in our country is an epidemic. We must dismantle the criminal organizations bringing drugs into our communities. This Indictment is a step toward disrupting the flow of methamphetamine from Mexican sources of supply into Tulsa. Methamphetamine has inflicted too much damage on Oklahomans. My office will seek to hold these drug dealers accountable in a federal court.”
These Indictments are the result of a joint investigation involving the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations, and Tulsa Police Department.
“The Drug Enforcement Administration appreciates the extensive collaborative effort of our local, state, and federal partners that resulted in the successful federal indictment
of 22 defendants in this multi-jurisdictional case which targeted a Mexico-based methamphetamine distribution organization with direct ties to Mexican Cartel sources. The dismantlement of this drug trafficking organization represents yet another outstanding example of what can be accomplished when law enforcement resources at all levels are combined and focused on a common goal,” said Richard W. Salter Jr., Assistant Special Agent in Charge DEA – Oklahoma.
Kathryn Peterson, Special Agent in Charge, FBI-Oklahoma City Division, further stated, “The Federal Bureau of Investigation remains committed to working with our local, state, and federal partners to protect the citizens of Oklahoma against organized crime and criminal actors whose illegal activities threaten the stability of the communities we serve.”
Chief Chuck Jordan of the Tulsa Police Department said, “The Tulsa Police Department will continue to protect its citizens from these violent drug cartel organizations operating in Tulsa by working in partnership with all of our federal law enforcement partners and the United States Attorney’s Office on cases such as this. The men and women of the Special Investigations Division, especially, contributed a lot of time and hard work towards this case and I’m proud of their efforts.”
The cases will be prosecuted by Assistant U.S. Attorney Joel-lyn A. McCormick. AUSA McCormick serves as the lead attorney for the United States Attorney’s Organized Crime Drug Enforcement Task Forces.
An Indictment is a formal statement of charges or alleged violations of law. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
19th Member of Mexican Drug Trafficking Organization Pleads Guilty to Drug Trafficking Charges, and Co-Defendant is Sentenced to Five Years in PrisonRead the Press Release
ALBUQUERQUE – One of the 22 defendants charged with federal drug trafficking and international money laundering charges in a superseding indictment filed in Aug. 2017, was sentenced today in federal court in Las Cruces, N.M. One of his co-defendants entered a guilty plea, becoming the 19th defendant to plead guilty in the case.
Twenty-three defendants were charged on April 19, 2017, in a 44-count indictment, as the result of a 16-month DEA-led federal investigation targeting a Mexican drug trafficking organization (DTO) responsible for importing large quantities of heroin, methamphetamine and cocaine from Mexico, and distributing the drugs in New Mexico, Texas, Kansas, Kentucky and Illinois. During the investigation, law enforcement authorities seized approximately 30 kilograms of heroin, 64 kilograms of methamphetamine, 17 kilograms of cocaine, 20 kilograms of marijuana, 24 firearms, $102,000 in currency, and three vehicles. The investigation concluded in April 2017, with a multi-agency law enforcement operation that included the execution of arrest warrants in New Mexico and Texas, and six search warrants in El Paso, Tex., Sunland Park, N.M., Belen, N.M., and Albuquerque, N.M.
A superseding indictment was filed on Aug. 16, 2017, that included all of the charges from the indictment but removed one defendant. The superseding indictment charged the 22 defendants with participating in a conspiracy to distribute heroin, methamphetamine and cocaine between April 2016 and April 2017. It also charged nine of the defendants with participating in an international money laundering conspiracy during that same period in time. The superseding indictment also charged certain defendants with engaging in a series of substantive drug trafficking and money laundering offenses, and using communication devices (telephones) to facilitate their criminal activities, and one defendant with a firearms offense.
The superseding indictment included 77 overt acts allegedly committed by the defendants in furtherance of the drug trafficking conspiracy, which described the expansive sweep of the DTO’s drug distribution operation and the significant quantities of drugs involved. For example, the overt acts set forth in the superseding indictment alleged that the DTO’s drug trafficking and money laundering activities extended to Kentucky, where law enforcement officers seized $15,300 in drug proceeds from a courier who was transporting the money to New Mexico in April 2016; to Oklahoma, where law enforcement officers seized 4.44 kilograms of methamphetamine from a courier in June 2016; and New Mexico, where law enforcement officers seized six kilograms of heroin and 3.56 kilograms of methamphetamine from a courier at a U.S. Border Patrol checkpoint in Oct. 2016.
The superseding indictment also included forfeiture allegations, which sought forfeiture to the United States of the proceeds of the DTO’s drug trafficking and money-laundering activities, including $56,556 seized by the DEA during the investigation.
Today, Diego Armando Rivas-Aguilar, 24, a Mexican national, was sentenced to 63 months in federal prison. Rivas-Aguilar previously pled guilty to conspiracy to distribute methamphetamine and heroin, and to using a communication device in furtherance of a drug trafficking crime on June 29, 2018. Rivas-Aguilar admitted that between April 2016 and Feb. 2017, he maintained a stash house in El Paso, Texas, where he distributed drugs imported into the United States, and the drugs were then transported to Albuquerque and other locations. Rivas-Aguilar admitted that during this period, law enforcement agents seized approximately 15.2 kilograms of methamphetamine and 11.38 kilograms of heroin that had been delivered to the stash house and that Rivas-Aguilar subsequently delivered to transportation crews within the DTO. Rivas-Aguilar is pending sentencing in another case in the U.S. District Court for the Western District of Texas. He will be deported after completing his prison sentences in both cases.
Martin J. Contreras, 26, of Rio Rancho, N.M., entered a guilty plea today to conspiracy and possession of methamphetamine and heroin with intent to distribute. Contreras admitted that in Oct. 2016, he worked with others to distribute controlled substances in New Mexico by driving a vehicle loaded with drugs from Las Cruces to Albuquerque, and that on Oct. 10, 2016, law enforcement agents seized approximately 4.82 kilograms of methamphetamine and 2.38 kilograms of heroin that were concealed in his vehicle. At sentencing, Contreras faces a statutory mandatory minimum of ten years and a maximum of life imprisonment followed by a period of supervised release to be determined by the court.
To date, 19 of the 22 defendants have entered guilty pleas. One defendant has been sentenced. Three defendants have yet to be arrested and are considered fugitives. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces and Albuquerque offices of the DEA conducted the investigation with assistance from IRS Criminal Investigation, the U.S. Border Patrol, New Mexico State Police and Hatch Police Department. Assistant U.S. Attorneys Selesia L. Winston and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the cases as part of the OCDETF Program and the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The OCDETF Program is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
19 Members of Rival Middletown Street Gangs Charged in White Plains Federal Court and Orange County Courts with Narcotics and Firearms Offenses and MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, David M. Hoovler, the Orange County District Attorney, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and John Ewanciw, the Chief of the City of Middletown Police, today announced the unsealing of indictments charging a total of 19 members and associates of two rival street gangs operating in Middletown New York: Guap Gang and Coke Wave Boys. The gangs are charged in separate courts Six Guap Gang members are charged in federal court with narcotics conspiracy and firearms offenses in United States v. John McGuigan, et al., 18 Cr. 585 (the “Guap Gang Indictment”). Thirteen “Coke Wave Boys” members or associates are charged in Orange County Courts with offenses including murder, conspiracy, narcotics and weapons offenses.
Three defendants—JOHN McGUIGAN, DUANE KIRBY, and DESMEN AGOSTO— were taken into federal custody yesterday morning. They were presented in White Plains federal court yesterday before U.S. Magistrate Judge Paul E. Davison. One defendant, CHRISTOPHER SHELP, remains at large. CHRISTOPHER ANDERSON and DARIUS MONROE were previously in federal custody and will be transported to White Plains federal court to be arraigned on the Guap Gang Indictment in the coming days.
U.S. Attorney Geoffrey S. Berman stated: “To protect their drug territory, these alleged rival gang members sowed fear in the community by acquiring and using guns to escalate their feud. Today’s arrests are a product of continued cooperation between federal, state, and local partners to stamp out gang violence and stem the tide of drugs in Middletown.”
Orange County District Attorney David M. Hoovler stated: “We will not tolerate the rise of violent street gangs hoping to profit from the devastation that narcotics are already wreaking on our communities. The murder of Coree White is further proof that where there is organized narcotics dealing, gun violence inevitably follows. I commend the City of Middletown Police Department for recognizing the connection between violence and organized narcotics activity. Only through the coordinated efforts of various law enforcement agencies can we stem the rise of narcotics gangs. I thank the New York State Police, Orange County Sheriff’s Office Special Operations Group, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for partnering with the City of Middletown Police Department, and my office, in the investigation of “Coke Wave” and their associates. I commend the Federal Bureau of Investigation and the United States Attorney’s Office for the Southern District of New York for their investigation and prosecution of members of the “Guap Gang,” and thank them for working with us to make Middletown safer.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “Most fear the violent streets gangs in the bigger cities in our area, but these criminal enterprises have now infected the small towns outside the cities hoping to control territory. The FBI Hudson Valley Safe Streets Task Force has been working hand-in-hand with our law enforcement partners in Orange County, and Middletown, NY to stop these gangs by taking out the leadership, and sending a message to others who want to fill that hole - they will face the same fate.”
City of Middletown Police Chief John Ewanciw stated: “The alleged crimes of the individuals charged in today’s indictments are understandably very disturbing to the residents of the City of Middletown. For too long, the Coke Wave Boys and Guap Gang engaged in violent and dangerous activities that threatened the safety of our community, and it was their reckless disregard for human life that resulted in the death of Coree White on August 17, 2017. I will not stand for this type of violence in our City, and I am committed to continuing our work with our partners on the federal, state, and local levels to ensure that these types of gangs are eradicated from our community. I would like to thank the family of Coree White for their patience and support during this in-depth and complex investigation. I would also like to thank the men and women of my agency, as well as those of all the other partner agencies, for their hard-work and dedication in seeing this investigation to its conclusion. Our work undoubtedly does not end here today, however, the City of Middletown is a safer community because of the arrests and indictments made during ‘Operation Wipeout.’”
Middletown Sheriff Carl E. DuBois stated: “I have been committed to the FBI Safe Streets Task Force and as a result of this commitment our communities are safer today.”
As alleged in the Guap Gang Indictment unsealed today in White Plains federal court[1]:
From about 2016 to the present, JOHN McGUIGAN, a/k/a “Jack,” a/k/a “Rico,” a/k/a “White Boy,” DUANE KIRBY, a/k/a “Ace,” a/k/a “Eddie,” a/k/a “Flea,” a/k/a “Montana,” DESMEN AGOSTO, a/k/a “Feddi Green,” CHRISTOPHER ANDERSON, a/k/a “Bo,” a/k/a “Drama,” DARIUS MONROE, a/k/a “Boosie,” a/k/a “Loso,” and CHRISTOPHER SHELP, a/k/a “Silence,” agreed to violate the narcotics laws of the United States by distributing and possessing with the intent to distribute heroin in and around Middletown, New York.
Additionally, McGUIGAN and KIRBY used and carried a firearm in furtherance of the drug trafficking crime. MONROE also illegally possessed a firearm after having been previously convicted of a felony.
* * *
A chart outlining the charges against the federal defendants is below. 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 FBI, the City of Middletown Police Department, and the New York State Troopers. Mr. Berman thanked the Orange County District Attorney’s Office for its invaluable partnership in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Gillian Grossman and Allison Nichols are 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.
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 1 kilogram and more of heroin.)
JOHN McGUIGAN, 28 years old
a/k/a “Jack,”
a/k/a “Rico,”
a/k/a “White Boy,”
DUANE KIRBY, 29 years old
a/k/a “Ace,”
a/k/a “Eddie,”
a/k/a “Flea,”
a/k/a “Montana,”
DESMEN AGOSTO, 29 years old
a/k/a “Feddi Green,”
CHRISTOPHER ANDERSON, 27 years old
a/k/a “Bo,”
a/k/a “Drama,”
DARIUS MONROE, 28 years old
a/k/a “Boosie,”
a/k/a “Loso,” and
CHRISTOPHER SHELP, 25 years old
a/k/a “Silence”
Life in prison
Mandatory minimum: 10 years in prison
Possession of a Firearm in Furtherance of a Drug Trafficking Crime
JOHN McGUIGAN,
a/k/a “Jack,”
a/k/a “Rico,”
a/k/a “White Boy,” and
DUANE KIRBY,
a/k/a “Ace,”
a/k/a “Eddie,”
a/k/a “Flea,”
a/k/a “Montana”
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
Felon in Possession of a Firearm
DARIUS MONROE,
a/k/a “Boosie,”
a/k/a “Loso,”
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
20 August 2018
York County Man Charged with EmbezzlementRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Raymond Patrick Snyder, age 35, of York, Pennsylvania was charged in a criminal information on August 17, 2018, with embezzlement of funds by a bank employee.
According to United States Attorney David J. Freed, the information alleges that Snyder, a former bank employee, embezzled approximately $889,881 from the First National Bank on August 17, 2015.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Joseph J. Terz is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wheeling man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Deandre L. Davis, of Wheeling, West Virginia, was sentenced today to 84 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Davis, age 27, pled guilty to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location” in May 2018. Davis admitted to selling cocaine near Riverview Towers in Wheeling in July 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Explosives and Firearms and the Ohio Valley Drug & Violent Crimes Task Force, a HITDA-funding initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.United States Files Complaint to Stop Queens, New York Company and its Officers from Distributing Adulterated Seafood ProductsRead the Press Release
The United States filed a civil complaint against Foo Yuan Food Products Company, Inc. (Foo Yuan) of Long Island City, New York, its Owner and President Hsing Chang, and its Secretary Susan Chang, to stop them from preparing and distributing adulterated seafood products in violation of federal law, the Department of Justice announced today.
The Department filed the complaint at the request of the U.S. Food and Drug Administration (FDA).
According to the complaint, defendants prepare, pack, hold and distribute refrigerated and frozen ready-to-eat fish balls, fried fish cakes and fried fish balls. The complaint, filed in the U.S. District Court for the Eastern District of New York, alleges that defendants failed to adequately control the risk of Clostridium botulinum and Listeria monocytogenes (L. mono.) growth and toxin formation in susceptible fish and fishery products.
“The Department of Justice is committed to ensuring that food processors comply with laws designed to ensure food safety,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that Americans are protected from potentially unsafe food.”
“When food processors ignore federal laws concerning the preparation of food, they subject the public to serious health risks,” stated United States Attorney Richard P. Donoghue for the Eastern District of New York. “The Department of Justice has asked the Court to stop the defendants from processing, packaging or distributing any more food until they establish that they can comply with federal laws and regulations designed to avert those health risks. Today’s action demonstrates our commitment to protecting the public from potentially contaminated food.”
FDA inspected Foo Yuan’s facility in 2014, 2016 and from December 2017 to January 2018. According to the complaint, at each inspection, FDA documented significant deficiencies. For example, as alleged in the complaint, during the most recent inspection, FDA observed a failure to maintain the cleanliness of food contact sources, and a failure to ensure that all persons working in direct contact with food, food contact surfaces and food-packing materials conform to hygienic practices to protect against food contamination.
The complaint notes that, following the October 2014 inspection, FDA issued a warning letter notifying Foo Yuan and Hsing Chang that they were in violation of seafood Hazard Analysis and Critical Control Point and current Good Manufacturing Practice regulations, causing their products to be adulterated under the law.
The complaint alleges that defendants violated the Federal Food, Drug, and Cosmetic Act by causing adulterated food to be introduced into interstate commerce or delivered for introduction into interstate commerce. It also alleges that the defendants further violated the law by causing food to become adulterated while it was being held for sale after the shipment of one or more of its components in interstate commerce.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Edwin Cortes of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the FDA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at www.justice.gov/usao-edny.
United States Files Complaint to Stop Queens Company and its Officers from Distributing Adulterated Seafood ProductsRead the Press Release
The United States filed a civil complaint today in federal court in Brooklyn against Foo Yuan Food Products Company, Inc. (Foo Yuan) of Long Island City, New York, its Owner and President Hsing Chang, and its Secretary Susan Chang, seeking to permanently enjoin them from preparing and distributing adulterated seafood products in violation of federal law, the Department of Justice announced today.
According to the complaint filed at the request of the U.S. Food and Drug Administration (FDA), the defendants prepare, pack, hold and distribute refrigerated and frozen ready-to-eat fish balls, fried fish cakes and fried fish balls. The United States alleges that defendants failed to adequately control the risk of Clostridium botulinum and Listeria monocytogenes (L. mono.) growth and toxin formation in susceptible fish and fishery products.
“When food processors ignore federal laws concerning the preparation of food, they subject the public to serious health risks,” stated United States Attorney Richard P. Donoghue. “The Department of Justice has asked the Court to stop the defendants from processing, packaging or distributing any more food until they establish that they can comply with federal laws and regulations designed to avert those health risks. Today’s action demonstrates our commitment to protecting the public from potentially contaminated food.”
“The Department of Justice is committed to ensuring that food processors comply with laws designed to ensure food safety,” stated Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that Americans are protected from potentially unsafe food.”
The FDA inspected Foo Yuan’s facility in 2014, 2016 and from December 2017 to January 2018. According to the complaint, at each inspection, the FDA documented significant deficiencies. For example, during the most recent inspection, FDA observed a failure to maintain the cleanliness of food contact sources, and a failure to ensure that all persons working in direct contact with food, food contact surfaces and food-packing materials conformed to hygienic practices to protect against food contamination.
The complaint alleges that defendants violated the Federal Food, Drug, and Cosmetic Act by causing adulterated food to be introduced into interstate commerce or delivered for introduction into interstate commerce. It also alleges that the defendants further violated the law by causing food to become adulterated while it was being held for sale after the shipment of one or more of its components in interstate commerce.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Edwin Cortes of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the FDA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
U.S. Attorney Ron Parsons Attends Attorney General’s Advisory Subcommittee on Native American Issues in Tulsa, OklahomaRead the Press Release
United States Attorney Ron Parsons attended the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) in Tulsa, Oklahoma from August 13-15. U.S. Attorney Parsons was appointed to the NAIS this year by Attorney General Jeff Sessions. The NAIS meetings provided an opportunity for its members to discuss specific crime reduction strategies in Indian Country.
On Monday, August 13, U.S. Attorney Trent S. Shores of the Northern District of Oklahoma, who also serves as Chairman of the NAIS, and Principal Chief of the Muscogee (Creek) Nation James Floyd gave opening remarks.
U.S. Attorney Parsons then moderated a panel on Law Enforcement Resources in Indian Country.
On Tuesday, August 14, the NAIS visited and met with the Cherokee Nation in Tahlequah, Oklahoma. The visit included remarks from Cherokee Nation Principal Chief Bill John Baker and Cherokee Nation Attorney General Todd Hembree.
Troy Morley, Assistant U.S. Attorney and Tribal Liaison for the District of South Dakota, participated in a panel discussion on Cooperative Law Enforcement Models in Indian Country.
Fighting violent crime and combating the drug epidemic are two of Attorney General Sessions’s top priorities. The Department of Justice is actively addressing violence against women and children in Indian country through partnerships with federal, tribal, state, and local law enforcement, investigating and prosecuting crimes, grant programs, training and technical assistance, and information sharing with tribes.
Specifically, in the District of South Dakota, two new prosecutor positions have been added, one in Rapid City and one in Pierre, to focus on violent crime and drug trafficking in Indian country. In addition, the District of South Dakota is hosting an Indian Country Fellow from the DOJ Honors program, who will devote three years to prosecuting crime both in federal court and in Tribal Court on the Pine Ridge Indian Reservation.
Earlier this month, the Department of Justice announced the expansion of the Tribal Access Program (TAP), which provides federally recognized tribes with the ability to access and exchange data with the national crime information databases for both civil and criminal purposes. The Department is accepting new applications for this program until October 1, 2018. Interested tribes may apply by using this link: www.justice.gov/tribal/tribal-access-program-fy-2019-application.
Through TAP, tribes may enter information directly into federal databases. So far, tribes have contributed nearly 600 sex offender registrations and over 550 sex offender check-ins; nearly 300 instances of data entry that would prohibit someone from being able to purchase a firearm; over 1,000 orders of protection entered or modified; and over 4,200 finger-print based record checks for civil purposes that include employment, tribal housing placement, and personnel/volunteers who have regular contact with or control over Indian children.
American Indian and Alaska Native people suffer from high rates of victimization in our nation. Crimes range from domestic violence to sexual assault and to those devastated by the drug trade and the opioid epidemic. In June, the Department announced it had set aside $110 million in a program to provide assistance to crime victims in tribal communities. The FY 2018 Tribal Victim Services Set-Aside Program can be used to provide a wide range of victims’ services for victims of human trafficking, crime victimization related to the opioid and drug crisis, child abuse and neglect, domestic violence, homicide, and assault, among other crimes.
U.S. Attorneys’ Offices and law enforcement components are responsible for investigations, prosecutions, and victim services in the 49 judicial districts across the nation that include Indian country. Federal prosecutors have primary criminal jurisdiction for 70 million acres of Indian lands. That spans across about 200 Indian country territories. Our law enforcement work requires strong partnerships with tribal law enforcement, the Bureau of Indian Affairs, and state and local law enforcement.
Approximately 85 percent of the Department’s pending Indian country investigations relate to violent crime. The most investigated crimes include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. Native women and girls suffer a high rate of violence, including murder. The Centers for Disease Control and Prevention (CDC) reported that American Indian and Alaska Native women experienced some of the highest rates of homicide based on an analysis from 18 states.
The Department’s Office on Violence Against Women (OVW) has funded Tribal Special Assistant U.S. Attorneys (SAUSAs) to enhance prosecution of Indian country cases and strengthen relationships and cooperation between federal and tribal law enforcement. OVW’s Tribal Governments Program enhances the ability of tribes to respond to violent crimes against Indian women, improve victim safety, and develop education and prevention strategies. In fiscal year 2018, OVW funds for tribal governments and tribal nonprofits totaled nearly $56 million.
The Department’s Office of Justice Programs, Bureau of Justice Assistance (BJA) has released the FY2018 Supporting Innovation: Field Initiated solicitation that focuses on several priorities including addressing innovative approaches to crime including violent crime associated with tribes and tribal members. BJA anticipates that it will be supporting a range of strategies including assistance for tribal prosecutors to prosecute violent crimes such as murder and crime associated guns, gangs and drug activity as well as training for tribes on violent crime and prosecuting violent crimes. In fiscal year 2018, BJA funds for tribal governments and tribal partners will total over $35 million dollars.
Native American communities have been hit particularly hard by the Opioid and drug epidemic. According to the CDC, American Indian and Alaska Native people had the highest drug overdose death rate in 2015. In 2017, the Department awarded nearly $59 million in tribal grants to strengthen drug court programs. The Bureau of Justice Assistance runs the Department’s Comprehensive Opioid Abuse Program, which aims to reduce opioid misuse and the number of overdose deaths. The program uses prescription drug monitoring to prevent the misuse and diversion of controlled substances.
Through its National Indian Country Training Program, the Department trains investigators and assists in the cross-deputization of tribal law enforcement. Better investigations lead to better cases, more prosecutions, and more convictions, all of which increase public safety and confidence in law enforcement.
The NAIS is made up of U.S. Attorneys from across the United States whose districts contain Indian country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues that affect tribal communities.
Two Maryland men and a Virginia man sentenced for firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Maryland men and a Virginia man have been sentenced for their roles in a conspiracy involving the sale and transfer of firearms, United States Attorney Bill Powell announced.
Thorn Ashton Guessford, age 26, of Federalsburg, Maryland, was sentenced today to three years probation. Stephen Clark Krieger, age 67, also of Federalsburg, Maryland, was sentenced today to 24 months incarceration. Each pled guilty to one count of “Conspiracy” in April 2018. They admitted to being a part of a conspiracy to transfer and sell firearms across state lines from May until July 2017 in Berkeley County, West Virginia and elsewhere.
Glenn Eugene Oden, age 39, of Stephens City, Virginia, was sentenced today to six months incarceration. Oden pled guilty to one count of “Unlawful Possession of a Firearm” in March 2018. Oden, having a prior conviction, admitted to illegally possessing a .40 caliber pistol in May 2017 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Two Individuals Charged for Acting as Illegal Agents of the Government of IranRead the Press Release
An indictment was returned today charging Ahmadreza Mohammadi-Doostdar, 38, a dual U.S.-Iranian citizen, and Majid Ghorbani, 59, an Iranian citizen and resident of California, with allegedly acting on behalf of the government of the Islamic Republic of Iran by conducting covert surveillance of Israeli and Jewish facilities in the United States, and collecting identifying information about American citizens and U.S. nationals who are members of the group Mujahedin-e Khalq (MEK).
The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Acting Executive Assistant Director Michael McGarrity of the FBI’s National Security Branch.
“The National Security Division is committed to protecting the United States from individuals within our country who unlawfully act on behalf of hostile foreign nations,” said Assistant Attorney General Demers. “Doostdar and Ghorbani are alleged to have acted on behalf of Iran, including by conducting surveillance of political opponents and engaging in other activities that could put Americans at risk. With their arrest and these charges, we are seeking to hold the defendants accountable.”
“This indictment demonstrates the commitment of the Department of Justice to hold accountable agents of foreign governments who act illegally within the United States, especially where those agents are conducting surveillance of individuals and Constitutionally-protected activities in this country,” said Jessie K. Liu, United States Attorney for the District of Columbia.
“This alleged activity demonstrates a continued interest in targeting the United States, as well as potential opposition groups located in the United States,” said Acting Executive Assistant Director McGarrity. “The FBI will continue to identify and disrupt those individuals who seek to engage in unlawful activity, on behalf of Iran, on US soil.”
The indictment charged Doostdar and Ghorbani with knowingly acting as agents of the government of Iran without prior notification to the Attorney General, providing services to Iran in violation of U.S. sanctions, and conspiracy. Both defendants were arrested on Aug. 9, pursuant to criminal complaints issued by the U.S. District Court for the District of Columbia. Those complaints were unsealed today.
According to the indictment, in or about July 2017, Doostdar traveled to the United States from Iran in order to collect intelligence information about entities and individuals considered by the government of Iran to be enemies of that regime, including Israeli and Jewish interests, and individuals associated with the MEK, a group that advocates the overthrow of the current Iranian government.
On or about July 21, 2017, Doostdar is alleged to have conducted surveillance of the Rohr Chabad House, a Jewish institution located in Chicago, including photographing the security features surrounding the facility.
On or about Sept. 20, 2017, Ghorbani is alleged to have attended a MEK rally in New York City, during which he photographed individuals participating in the protest against the current Iranian regime. In or about December 2017, Doostdar returned to the United States from Iran and made contact with Ghorbani in the Los Angeles area. During the meeting, Doostdar paid Ghorbani approximately $2,000 in cash and Ghorbani delivered to him 28 photographs taken at the September 2017 MEK rally, many of which contained hand-written annotations identifying the individuals who appeared in the photos. These photographs, along with a hand-written receipt for $2000, were found concealed in Doostdar’s luggage as he transited a U.S. airport on his return to Iran in December 2017.
The indictment also alleges that Ghorbani traveled to Iran in or about March 2018, after informing Doostdar that he would be going to Iran to conduct an “in-person briefing.” Thereafter, on or about May 4, Ghorbani attended the MEK-affiliated 2018 Iran Freedom Convention for Human Rights in Washington, D.C. During the course of the conference, Ghorbani appeared to photograph certain speakers and attendees, which included delegations from across the United States. On May 14, Doostdar called Ghorbani to discuss clandestine methods Ghorbani should use in order to provide this information to Iran.
Ghorbani is scheduled to appear for a detention hearing in the U.S. District Court for the District of Columbia at 9:30 a.m. on Tuesday, Aug. 21, before the Honorable G. Michael Harvey.
The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for conspiracy is five years; the maximum penalty for acting as an agent of a foreign power is ten years; and the maximum penalty for a violation of the International Emergency Economic Powers Act is 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Los Angeles Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
Two Individuals Charged for Acting as Illegal Agents of the Government of IranRead the Press Release
WASHINGTON – An indictment was returned today charging Ahmadreza Mohammadi-Doostdar, 38, a dual U.S.-Iranian citizen, and Majid Ghorbani, 59, an Iranian citizen and resident of California, with allegedly acting on behalf of the government of the Islamic Republic of Iran by conducting covert surveillance of Israeli and Jewish facilities in the United States, and collecting identifying information about American citizens and U.S. nationals who are members of the group Mujahedin-e Khalq (MEK).
The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Acting Executive Assistant Director Michael McGarrity of the FBI’s National Security Branch.
“The National Security Division is committed to protecting the United States from individuals within our country who unlawfully act on behalf of hostile foreign nations,” said Assistant Attorney General Demers. “Doostdar and Ghorbani are alleged to have acted on behalf of Iran, including by conducting surveillance of political opponents and engaging in other activities that could put Americans at risk. With their arrest and these charges, we are seeking to hold the defendants accountable.”
“This indictment demonstrates the commitment of the Department of Justice to hold accountable agents of foreign governments who act illegally within the United States, especially where those agents are conducting surveillance of individuals and Constitutionally-protected activities in this country,” said Jessie K. Liu, United States Attorney for the District of Columbia.
“This alleged activity demonstrates a continued interest in targeting the United States, as well as potential opposition groups located in the United States,” said Acting Executive Assistant Director McGarrity. “The FBI will continue to identify and disrupt those individuals who seek to engage in unlawful activity, on behalf of Iran, on US soil.”
The indictment charged Doostdar and Ghorbani with knowingly acting as agents of the government of Iran without prior notification to the Attorney General, providing services to Iran in violation of U.S. sanctions, and conspiracy. Both defendants were arrested on Aug. 9, pursuant to criminal complaints issued by the U.S. District Court for the District of Columbia. Those complaints were unsealed today.
According to the indictment, in or about July 2017, Doostdar traveled to the United States from Iran in order to collect intelligence information about entities and individuals considered by the government of Iran to be enemies of that regime, including Israeli and Jewish interests, and individuals associated with the MEK, a group that advocates the overthrow of the current Iranian government.
On or about July 21, 2017, Doostdar is alleged to have conducted surveillance of the Rohr Chabad House, a Jewish institution located in Chicago, including photographing the security features surrounding the facility.
On or about Sept. 20, 2017, Ghorbani is alleged to have attended a MEK rally in New York City, during which he photographed individuals participating in the protest against the current Iranian regime. In or about December 2017, Doostdar returned to the United States from Iran and made contact with Ghorbani in the Los Angeles area. During the meeting, Doostdar paid Ghorbani approximately $2,000 in cash and Ghorbani delivered to him 28 photographs taken at the September 2017 MEK rally, many of which contained hand-written annotations identifying the individuals who appeared in the photos. These photographs, along with a hand-written receipt for $2000, were found concealed in Doostdar’s luggage as he transited a U.S. airport on his return to Iran in December 2017.
The indictment also alleges that Ghorbani traveled to Iran in or about March 2018, after informing Doostdar that he would be going to Iran to conduct an “in-person briefing.” Thereafter, on or about May 4, Ghorbani attended the MEK-affiliated 2018 Iran Freedom Convention for Human Rights in Washington, D.C. During the course of the conference, Ghorbani appeared to photograph certain speakers and attendees, which included delegations from across the United States. On May 14, Doostdar called Ghorbani to discuss clandestine methods Ghorbani should use in order to provide this information to Iran.
Ghorbani is scheduled to appear for a detention hearing in the U.S. District Court for the District of Columbia at 9:30 a.m. on Tuesday, Aug. 21, before the Honorable G. Michael Harvey.
The charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for conspiracy is five years; the maximum penalty for acting as an agent of a foreign power is ten years; and the maximum penalty for a violation of the International Emergency Economic Powers Act is 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Los Angeles Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
Two Additional Defendants Sentenced to Prison in Conspiracy That Looted Money from Nonprofit Mental Health ClinicRead the Press Release
Two former employees of the Juniata Community Mental Health Clinic in Philadelphia were sentenced today for their roles in the conspiracy led by Renee Tartaglione, the former head of the nonprofit mental health clinic, to take money from the clinic, announced Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania, Special Agent in Charge Michael T. Harpster of the FBI’s Philadelphia Division and Special Agent in Charge Guy Ficco of IRS Criminal Investigation (CI).
Sandy Acosta, 72, of Philadelphia, Pa., former Administrator of the clinic, and Amalia Rodriguez, 48, also of Philadelphia, Pa., former billing clerk for the clinic, were sentenced today to serve 18 months and six months in federal prison, respectively, followed by three years of supervised release. Sandy Acosta and Amalia Rodriguez also were ordered to pay $793,000 in restitution to the Pennsylvania Attorney General in trust for a successor to the clinic, jointly and severally with Tartaglione, who was sentenced in July 2018, and Acosta’s daughter, former Pennsylvania State Representative Leslie Acosta, a former employee of the clinic who also participated in the scheme.
“Sandy Acosta and Amalia Rodriguez facilitated Renee Tartaglione’s theft of over $2 million from important taxpayer-funded programs for individuals in need of mental health treatment,” said Assistant Attorney General Benczkowski. “Their convictions and today’s sentences demonstrate the Justice Department’s commitment to work with our federal and state partners to hold accountable those who seek to line their own pockets by defrauding institutions that serve vulnerable individuals.”
“The defendants worked together to cheat economically disadvantaged people with mental health issues out of funds that were intended to provide treatment and other services,” said U.S. Attorney McSwain. “Instead, the defendants used these funds for their own personal enrichment, depriving others of help that they desperately needed. This was a gross abuse of the trust placed in these defendants, and I am glad that my Office and our law enforcement partners have held them accountable for their crimes.”
“Looting money from Medicare strains the system and cheats the taxpayers who fund it,” said FBI Special Agent in Charge Harpster. “This conspiracy diverted funds meant for mental health treatment for the community’s underserved—a serious breach of trust, and of the law. The FBI is committed to fighting health care fraud, one case at a time, and seeing perpetrators held accountable.”
“Ms. Acosta and Ms. Rodriguez helped steal money that was allotted for the treatment of mental health patients; depriving them of much needed mental health services,” said IRS-CI Special Agent in Charge Ficco. “Their sentences are indications of how unacceptable their actions were. IRS-Criminal Investigation is proud to have joined forces with our law enforcement partners to bring these defendants to justice.”
Sandy Acosta and Rodriguez previously pleaded guilty to wire fraud, theft from a health care benefit program, and aggravated identity theft. Sandy Acosta also pleaded guilty to conspiracy to commit money laundering. The charges arose out of the women’s agreement to cash unearned checks from the clinic and give the cash to Tartaglione, who at the time was President of the Board of Directors of the clinic.
Sandy Acosta agreed to cooperate with the government in its investigation of Tartaglione and testified at Tartaglione’s federal criminal trial in 2017. Leslie Acosta previously pleaded guilty and also agreed to cooperate against Tartaglione.
The case was investigated by the FBI, the IRS Criminal Investigation, and the Philadelphia Office of the Inspector General. Trial Attorney Peter N. Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bea L. Witzleben of the Eastern District of Pennsylvania prosecuted the case.
Two Additional Defendants Sentenced in Conspiracy that Looted Money from Nonprofit Mental Health ClinicRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that two additional former employees of the Juniata Community Mental Health Clinic (“JCMHC”) were sentenced today for their roles in the conspiracy led by Renee Tartaglione to steal money from JCMHC.
Sandy Acosta, former Administrator of JCMHC, and Amalia Rodriguez, former billing clerk for JCMHC, were sentenced today to 18 months and 6 months in federal prison, respectively. The two women were also ordered to pay $793,000 in restitution to the Pennsylvania Attorney General in trust for a successor to JCMHC, jointly and severally with the financial obligations previously imposed on others responsible for the same fraud and theft.
“The defendants worked together to cheat economically disadvantaged people with mental health issues out of funds that were intended to provide treatment and other services,” said U.S. Attorney McSwain. “Instead, the defendants used these funds for their own personal enrichment, depriving others of help that they desperately needed. This was a gross abuse of the trust placed in these defendants, and I am glad that my Office and our law enforcement partners have held them accountable for their crimes.”
“Sandy Acosta and Amalia Rodriguez facilitated Renee Tartaglione’s theft of over $2 million from important taxpayer-funded programs for individuals in need of mental health treatment,” said Assistant Attorney General Brian A. Benczkowski. “Their convictions and today’s sentences demonstrate the Justice Department’s commitment to work with our federal and state partners to hold accountable those who seek to line their own pockets by defrauding institutions that serve vulnerable individuals.”
“Looting money from Medicare strains the system and cheats the taxpayers who fund it,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “This conspiracy diverted funds meant for mental health treatment for the community’s underserved—a serious breach of trust, and of the law. The FBI is committed to fighting health care fraud, one case at a time, and seeing perpetrators held accountable.”
Ms. Acosta and Ms. Rodriguez helped steal money that was allotted for the treatment of mental health patients; depriving them of much needed mental health services,” said IRS-Criminal Investigation Special Agent In Charge Guy Ficco. “Their sentences are indications of how unacceptable their actions were. IRS-Criminal Investigation is proud to have joined forces with our law enforcement partners to bring these defendants to justice.”
“I am pleased to partner with U.S. Attorney Bill McSwain to investigate, prosecute and root out public corruption wherever we find it,” said Pennsylvania Attorney General Josh Shapiro. “In this case, one of our legal experts provided testimony and will assist in the restitution process. This type of collaboration is key to protecting our democracy and ensuring honest government. I commend U.S. Attorney McSwain for his fine leadership.”
Sandy Acosta previously pled guilty to wire fraud, theft from a health care benefit program, aggravated identity theft, and conspiracy to commit money laundering. Rodriguez previously pled guilty to wire fraud, theft from a health care benefit program, and aggravated identity theft. The charges arose out of the women’s agreement to cash unearned checks from JCMHC and give the cash to Renee Tartaglione, who at the time was President of the Board of Directors of JCMHC.
This case was investigated by the FBI, IRS Criminal Investigation, and the Philadelphia Office of the Inspector General, with additional assistance from the Pennsylvania Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
Twin Cities Bank Robber Pleads Guilty in Federal CourtRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JAYVON DOMINIQUE GANT, 28, to one count of bank robbery. GANT, who was charged by criminal complaint on June 7, 2018, entered his guilty plea before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, on June 7, 2018, GANT entered Premier Bank in Bloomington, Minnesota, and passed a note to the teller that contained a demand for money, followed by a verbal demand of the teller to, “give me all the money and no trackers.” In response to his demand, the teller handed GANT $3,710 and, after receiving the money, GANT fled the bank on foot. Following the robbery, law enforcement officers located GANT at his home in Bloomington. Upon law enforcement’s entry to the residence, GANT jumped from his third floor balcony to the second floor below and then broke the sliding glass door and entered the second floor apartment in an attempt to escape. When confronted by law enforcement on the second floor, GANT jumped from the second floor balcony to the ground level where he was apprehended.
According to his guilty plea and documents filed in court, GANT committed five additional robberies of other banks located throughout the Twin Cities area. In all instances, GANT used similar tactics by passing a note to the teller that contained a demand for money. For example, one such note stated, “Give me all the money out the top and bottom drawer act calm and normal NO Gps or Dypack Im going to go through the money at this counter so don’t play games with me give me the money act normal no one will get hurt.”
This case is the result of an investigation conducted by the FBI Safe Streets Task Force, the Bloomington, Blaine, Fridley, Edina, Cottage Grove and Oakdale Police Departments. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat violent crime.
This case is being prosecuted by Assistant U.S. Attorney Charles J. Kovats.
Defendant Information:
JAYVON DOMINIQUE GANT, 28
Bloomington, Minn.
Convicted:
- Bank robbery, 1 count
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Tucker County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Richard Lee Hollobaugh, of Parsons, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Hollobaugh, age 33, pled guilty to one count of “Unlawful Possession of a Firearm.” Hollobaugh, having previously been convicted of four felonies, admitted to possessing a 9mm pistol in October 2017 in Randolph County.
Hollobaugh faces up to 10 years incarceration and a fine of $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Randolph County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Suburban Man Charged with Sharing Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man has been indicted on federal criminal charges for allegedly sharing images of child pornography.
DUSTAN SETNER, 42, of Rosemont, is charged with three counts of transportation of child pornography and one count of possession of child pornography. Setner shared a photograph and two videos of child pornography in 2016 and 2017, the indictment states. The photograph was entitled, in part, “9yo in nylons and collar,” while one of the video files was entitled “Baby,” according to the indictment. Setner allegedly possessed the child pornography on his desktop computer and an external hard drive.
The indictment was returned Thursday in federal court in Chicago. Arraignment is set for Aug. 27, 2018, at 11:30 a.m., before U.S. Magistrate Judge Sheila M. Finnegan.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Forest Park Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorney Aaron R. Bond.
Each count of transporting child pornography is punishable by a mandatory minimum sentence of five years in prison and a maximum of 20 years, while the possession charge carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that charges are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
State of Georgia Awarded $110 Million in Grants to Aid Crime VictimsRead the Press Release
SAVANNAH: The U.S. Attorneys for the Northern, Middle and Southern Districts of Georgia and the Criminal Justice Coordinating Council (CJCC), announce the award of more than $110 million to fund local victim assistance programs across the state and to help compensate victims for crime-related losses. This is the largest award to the State of Georgia under this program in its history.
“Crime victims often suffer physical, emotional, and financial injury,” said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “While tremendous progress has been made in addressing the rights of crime victims, these funds will justly compensate and lessen the impact of their financial burdens, while also providing additional program resources to support them during their recovery process.”
“No amount of money can fully fix the traumas crime victims and their families frequently endure, but these funds can help offset financial, physical, and emotional injuries,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “As important, these funds let the victim community know that their voices are heard.”
“The Department of Justice is committed to seeking justice for crime victims,” states U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “This historic award, funded almost entirely out of the pockets of those convicted of crime, is an aggressive affirmation that we are putting victims first!”
“As the state administering agency for these funds, the Criminal Justice Coordinating Council (CJCC), is pleased to receive this funding and will continue to support organizations that provide direct services to crime victims in Georgia,” said Executive Director Jay Neal. “This funding allows us to aid people when they are potentially at the darkest time in their life, and for that, we are grateful.”
In Georgia, $6,623,000 is being awarded under the Victims of Crime Act (VOCA) Victim Compensation Grant Program to reimburse victims and survivors for medical expenses, mental health counseling, loss of income or support, funeral expenses, and crime scene sanitation. This compensation is often a lifeline to state and federal victims who face enormous financial setbacks on top of the emotional strife they experience.
In addition, $104,998,424 is being awarded to the State of Georgia under the VOCA Victim Assistance Formula grant to support providers of services to crime victims. These funds will be dispersed to local governments and community organizations that provide direct services to victims.
The awards are distributed through two grant programs administered by the Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs, and are supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments, which includes no tax dollars.
For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Six-Time Felon Receives Lengthy Sentence for Methamphetamine DistributionRead the Press Release
CORPUS CHRISTI, Texas - A 33-year-old South Texas man has been ordered to federal prison for participating in a conspiracy to sell crystal methamphetamine and using a firearm to facilitate that crime, announced U.S. Attorney Ryan K. Patrick. Joshua Caskey, of Alvin, pleaded guilty May 14, 2018.
Today, Senior U.S. District Court Judge John D. Rainey sentenced Caskey to 235 months in federal prison. At the hearing, the court noted Caskey has six prior felony convictions involving drug possession and forgery.
Officers with the Houston Police Department (HPD) encountered Caskey in April 2017 during an ongoing narcotics investigation. At the time of his arrest, he was in possession of a duffle bag containing more than five pounds of crystal methamphetamine, 44 grams of PCP, seven grams of heroin, a stolen 9 mm firearm and more than $10,000 in cash.
The investigation led to the connection of that methamphetamine and cash to a known drug trafficking organization operating from Corpus Christi to Houston.
Ultimately, authorities arrested seven people and seized multiple firearms and large amounts of crystal methamphetamine. The remaining defendants have all been convicted and are awaiting sentencing.
Caskey has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of police departments in Corpus Christi and Houston. Assistant U.S. Attorney Brittany Jensen prosecuted the case.
Shreveport felon sentenced to nearly five years in prison for possessing .45-caliber pistolRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Shreveport felon was sentenced to 57 months in prison for possessing a .45-caliber pistol that he discarded while fleeing from police officers.
David Christopher Green, 22, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of felon in possession of a firearm. He was also sentenced to three years of supervised release. According to the March 8, 2018 guilty plea, Shreveport Police officers, who were patrolling the Clanton Street area June 21, 2017 in response to complaints of crimes and narcotics sales, observed Green and another individual standing in the roadway. After the patrol car stopped, the unnamed individual began approaching. The officers commanded the individual to stop, but instead, he and Green fled. Officers pursued and saw Green pick up an ice chest bag. Green tossed the bag in the corner of a fence as he fled and then went inside a Clanton home. They searched the home and found Green hiding behind a chair in a back room. The officers located the ice chest bag, which contained three large baggies of marijuana (approximately 82.9 grams); two large bottles of codeine syrup (approximately 840 milliliters ); a .45-caliber, Kimber semi-automatic handgun; and ammunition. Green has prior felonies, including a prior conviction for being a felon in possession of a firearm.
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 ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Second St. Croix Woman Pleads Guilty in Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – Lynell Hughes, 35, of St. Croix, pled guilty on August 17, 2018, in District Court to conspiracy to defraud the United States, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, from January 2011 to July 2012, Hughes and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information used to electronically file falsified tax returns for tax years 2010 and 2011. Hughes and her co-conspirators filed tax returns in individuals’ true names and actual social security numbers and dates of birth but falsified the individuals’ income earned, tax withholding amounts, credits, and other information, and thereby claimed refunds to which they were not entitled. Hughes and her co-conspirators designated bank accounts for receipt of the refunds, which, once received, they then withdrew and spent for personal use. As a result of the scheme, $122,736 was designated to Hughes’ bank account, of which $62,011 was actually deposited therein.
Sentencing is set for December 19, 2018. Hughes faces a maximum sentence of ten years and a $250,000 fine.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorneys Meredith J. Edwards and Alphonso Andrews, Jr.
Schenectady County Men Arrested on Synthetic Marijuana Conspiracy ChargeRead the Press Release
ALBANY, NEW YORK – Rayen Hussein, age 41, of Glenville, New York, and Abdulqadoos Alomari, age 31, of Schenectady, New York, were arrested on Friday on charges of conspiring to distribute synthetic cannabinoids, also referred to as “spice” or “K2,” out of the Stockade Market and Deli in Schenectady, announced United States Attorney Grant C. Jaquith.
According to the criminal complaint, law enforcement on Friday seized approximately 1 kilogram of synthetic marijuana packaged for distribution. The baggies seized on Friday were uniformly brightly colored, and labeled with names including “Scooby Snax,” Ice Dragon,” “Loopy,” What’s Up,” and “Geeked Up.” The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Alomari appeared today before United States Magistrate Judge Christina F. Hummel, and was released on conditions including a financial bond. Hussein is in custody pending a detention hearing tomorrow before Judge Hummel.
The charges filed against Hussein and Alomari carry a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), United States Postal Inspection Service (USPIS), Internal Revenue Service (IRS), New York State Police and the New York State Department of Taxation and Finance.
The Schenectady and Washington County Sheriff’s Offices, and the Police Departments of Amsterdam, Glenville, Saratoga Springs, Troy and Watervliet, assisted in the investigation of this case.
The case is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Sacaton Woman Sentenced to 7 Years for Drug TraffickingRead the Press Release
PHOENIX – On Aug. 20, 2018, Mary Alice Reed, 48, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge Diane J. Humetewa to seven years in prison, to be followed by eight years of supervised release. Reed had previously pleaded guilty to possession with intent to distribute methamphetamine. Reed had been previously convicted of the same offense in 2010.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-310-PHX-DJH
RELEASE NUMBER: 2018-110_Reed
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Rosenberg Man Handed Significant Sentence for Multiple Child Pornography ChargesRead the Press Release
HOUSTON – A 25-year-old man from Rosenberg has been sent to federal prison for nearly 40 years following his convictions of sexual exploitation of a child, distribution and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Ryan Glen Colburn pleaded guilty April 19, 2017.
Today, U.S. District Judge Nancy F. Atlas sentenced him to 360 months for the production of child pornography (sexual exploitation of a child). He also received 28 and 60 months for the possession and distributions convictions, respectively. The sentences will run consecutively for a total 448-month prison term. In handing down the sentence, Judge Atlas considered the fact that Colburn was a creator of child pornography and had a very large collection of child pornography. Colburn was further ordered to pay restitution to three known victims and will serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Colburn first came to the attention of law enforcement after he had sent images of child pornography to another individual who had been arrested for child pornography. Federal agents executed a search warrant at Colburn’s residence and performed a forensic examination on his computer. This exam showed Colburn was in possession of more than 1,100 images and 200 videos of young children engaged in sexually explicit conduct which included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Further, Colburn produced 25 images and six videos of a two-year-old minor which would constitute child pornography.
Agents also executed a search warrant on Colburn’s Dropbox account which contained more than 60 images and 400 videos of child pornography.
At the time of his plea, Colburn admitted to taking sexually explicit photographs and videos of a two-year-old minor. Colburn further admitted he traded these images with other individuals online.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Project Huntington Update: Three More Defendants Netted in Operation Saigon Sunset Plead Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Three 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. The federal indictment also charged nine other individuals involved in the Peterson drug trafficking organization (DTO) with conspiracy to distribute heroin and fentanyl. Additional Peterson DTO defendants were arrested and charged in Detroit. Stuart praised the joint investigation conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Just as I promised, we will do everything in our power to detain and keep detained those we arrest for drug trafficking and violent crimes,” said United States Attorney Mike Stuart. “These members of the Peterson DTO that were arrested during our raid were detained and have been incarcerated since that time. It is our hope and prayer that these drug traffickers remain behind bars, away from our families, out of our communities, and stay that way until they are sentenced in this matter.”
Luther Peterson, also known as “Mook,” 24, from Detroit, entered his guilty plea to the indictment charging him with conspiracy to distribute heroin. Peterson admitted that between October 2017 and April 2018 he conspired with Willie Peterson, also known as “Chill,” and Manget Peterson, also known as “Money,” to sell heroin in the Huntington, West Virginia area. As part of the plea agreement, Peterson admitted to distributing heroin to a confidential informant in October 2017.
Lawrence Sykes, Jr., also known as “Boog,” 26, of Huntington, entered his guilty plea to the indictment charging him with conspiracy to distribute heroin and fentanyl. Sykes admitted that between August 2017 and April 2018 he conspired with Manget Peterson to sell heroin in the Huntington, West Virginia area. As part of the plea agreement, Sykes admitted to distributing approximately 28 grams of fentanyl to a confidential informant in November 2017.
Charles Graves, also known as “Bo,” 46, also from Huntington, entered his guilty plea to the indictment charging him with conspiracy to distribute heroin. Graves admitted that in January and February 2018 he conspired with Manget Peterson, also known as “Money,” to sell heroin in the Huntington, WV area. As part of the plea agreement, Graves admitted to distributing heroin to a confidential informant in February 2018.
Peterson, Sykes and Graves each face up to 20 years in federal prison at sentencing. Peterson is scheduled to be sentenced on November 19, 2018. Sykes and Graves are scheduled to be sentenced on November 26, 2018.
Terrell Redd, 43, of Huntington previously pled guilty to the indictment which charged him with conspiracy to distribute heroin. He is scheduled to be sentenced on November 19, 2018 and also faces up to 20 years in prison.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
PROJECT HUNTINGTON DEFENDANT PLEADS GUILTY TO FEDERAL GUN CRIME
HUNTINGTON, W.Va. – A Huntington man that was arrested as part of Project Huntington pled guilty today to a federal gun charge, announced United States Attorney Mike Stuart. Jordan Rashaun Jeter, 27, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigative efforts of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jeter admitted that in the early morning hours of February 11, 2018, he ran out of Rehmy’s Bar on 4th Avenue in Huntington while carrying a Taurus, Model PT111 G2, 9mm pistol. He further admitted that he threw the gun on the ground in front of a vehicle in the area of the 400 block of 5th Street. A Huntington police officer saw Jeter and ordered him to get on the ground until he could secure the firearm. In a search incident to arrest, officers located approximately 1.7 grams of marijuana in Jeter’s pocket. Jeter was prohibited from possessing any firearm under federal law because of a 2011 conviction in the United States District Court for the Southern District of West Virginia for distribution of 28 grams or more of crack and a 2016 conviction in Wayne County Circuit Court for attempt to deliver cocaine.
Jeter faces up to 10 years in federal prison when he is sentenced on November 26, 2018.
Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
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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Plattsburgh Man Sentenced to 18 Years in Connection with Fatal OverdoseRead the Press Release
SYRACUSE, NEW YORK – Thomas A. Burnell, age 36, of Plattsburgh, New York, was sentenced today to 18 years in prison for selling heroin mixed with fentanyl that caused the death of a customer. Senior United States District Judge Norman A. Mordue also sentenced Burnell to 30 months in prison for possessing a weapon while detained on federal charges at the Clinton County Jail.
The announcement was made by United States Attorney Grant C. Jaquith and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division.
United States Attorney Grant C. Jaquith stated: “The deadliest drug epidemic in history is fueled by dealers like Thomas Burnell, who distributed heroin mixed with fentanyl – describing his product as ‘killer’ and ‘fire’ – with a foreseeable consequence. We are committed to vigorous enforcement against those whose poison kills, and to education and outreach with law enforcement and community partners so deterrence and treatment diminish the deaths and grief. We commend the work of DEA and the Plattsburgh Police Department on this lethal overdose case, and the work of the U.S. Marshals Service and the Clinton County Sheriff’s Department to maintain jail safety.”
DEA Special Agent in Charge James J. Hunt stated: “Today’s sentencing re-emphasizes the volatility of opioid abuse. It is a fact that dealers are mixing their product with deadly analogues like fentanyl, only to put users at greater risk of death. I commend the Northern District of New York and our law enforcement partners who worked on this grave investigation.”
As part of his plea on April 27, 2018, Burnell admitted that on January 16, 2016, he went to the Plattsburgh apartment of a male customer, “J.G.” and gave J.G. two bags of what Burnell believed to contain heroin, for $70. J.G. ingested the substances that Burnell sold to him, which was heroin mixed with fentanyl. J.G. died that day due to overdose.
Burnell was a registered sex offender at the time of the crime, having been convicted in 2003 of sexual abuse in the first degree.
In pleading guilty, Burnell also admitted that on March 30, 2017, while detained at the Clinton County Jail, he possessed a sharpened toothbrush as a weapon. Officers found the weapon while conducting a random search of Burnell’s cell.
Judge Mordue ordered the 30-month prison contraband sentence to run concurrent with the 18-year drug sentence. He also imposed a 5-year term of post-imprisonment supervised release.
The drug overdose case was investigated by the DEA and the Plattsburgh Police Department. The prison contraband case was investigated by the U.S. Marshals Service and the Clinton County Sheriff’s Department. The cases were prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pittston Man Pleads Guilty to Importing “Designer Drugs” from ChinaRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Swanberry, age 45, of Pittston, Pennsylvania, pleaded guilty today before Senior United States District Court Judge James M. Munley to importing “designer drugs,” which are controlled substance analogues, into the United States from China.
According to United States Attorney David J. Freed, on August 1, 2018, a criminal information was filed charging Swanberry with importation of controlled substance analogues, commonly known as “designer drugs,” into the United States from China between September 2016 and February 2018. The criminal information identifies the designer drugs as “alpha-ethylaminohexanophenone,” “n-ethylhexedrone,” and “n-ethylpentylone.”
Under federal law, such “designer drugs” are controlled substance analogues, which are chemically similar to controlled substances in Schedule I or II, to the extent they are intended for human consumption, are treated as controlled substances.
Judge Munley ordered a presentence investigation to be completed. Sentencing will be scheduled at a later date.
The charge against Swanberry stems from an investigation conducted by the Department of Homeland Security, the U.S. Postal Inspection Service, and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to twenty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Parking Lot Operator Sentenced to Nearly 6 Years in Federal Prison for Bribery Scheme that Defrauded Department of Veterans AffairsRead the Press Release
LOS ANGELES – The owner of a parking lot business was sentenced today to 70 months in federal prison for orchestrating a long-running bribery scheme that allowed him to bilk the U.S. Department of Veterans Affairs out of more than $13 million that should have been paid in relation to the operation of parking facilities on the VA’s Los Angeles medical campuses.
David Richard Scott, 58, of Santa Monica, the owner of Westside Services LLC (WSS), was sentenced this afternoon by United States District Judge R. Gary Klausner. In addition to the prison sentence, Judge Klausner ordered Scott to pay $12,619,693 in restitution to the VA, a figure that takes into account some money already repaid to the agency.
Additionally, Judge Klausner has ordered the forfeiture of millions of dollars worth of assets Scott amassed during the scheme to defraud the VA, which lasted approximately 14 years. The assets include three condominiums in Santa Monica, with a cumulative estimated value of $7 million; numerous high-end collectible cars, including several classic Corvettes and three Ferrari automobiles; a Cigarette “Top Gun” racing boat; and bank and brokerage accounts that contained more than $1 million; and just over $213,000 in cash that was seized from Scott’s residence.
Scott, who has been in custody since his arrest last November, was sentenced after pleading guilty on May 17 to conspiracy and wire fraud.
The scheme, which resulted in the payment of nearly $300,000 in bribes to VA contracting officer Ralph Tillman, cost the VA more than $13 million it should have received under a contract with WSS to operate parking lots on the campuses of the VA Greater Los Angeles Healthcare System (VA GLAHS). The vast majority of the activity authorized under the contract took place at the West Los Angeles VA Medical Center near Westwood and included parking for UCLA baseball games, the Wadsworth and Brentwood theaters, and the PGA golf tournament at the Riviera Country Club.
“This defendant engaged in reprehensible and disgraceful conduct that had a direct impact on our nation’s veterans,” said United States Attorney Nick Hanna. “This elaborate scheme stole money from the federal agency charged with providing important services and medical care to the men and women who bravely served this nation.”
For approximately 18 years, Scott had a contract to operate parking lots at VA GLAHS that required him to pay 60 percent of the gross revenues from the parking lots. Scott was required to submit annual reports detailing revenue generated by parking fees, as well as improvements and services his company provided that could be used to offset payments due to the VA.
As part of the scheme, Scott maintained at least two sets of financial books, according to court documents. The numbers reported to the VA contained false revenue and expense statements, while a second set of books maintained by Scott’s bookkeeper/tax preparer contained the actual revenues and expenditures, except for unreported cash. Scott’s “goal was to pay the VA as little as possible,” he admitted in a plea agreement filed in court.
Scott began bribing Tillman in 2003 and continued to bribe him on a regular basis until Tillman abruptly retired in 2014 after he was confronted by federal agents. Scott continued making “hush money” payments to Tillman after his retirement to continue the scheme and attempt to avoid termination of his parking contract. Scott used cash collected at the parking lots – cash revenue he rarely reported to the VA – to pay Tillman at least $286,000 in bribes.
Over the course of the scheme, Scott underreported at least $4.6 million in revenues and failed to report an unknown amount of cash collected at the parking lots, according to the plea agreement. Additionally, Scott avoided making payments to the VA by marking up expenses associated with the parking lots – in some cases, up to 600 percent – and claiming to have spent $11.6 million to improve and maintain the facilities. During the scheme, Scott managed to avoid making payments to the VA for nearly 10 years.
Tillman, who cooperated in the federal investigation, pleaded guilty in February to charges of making false statements to VA criminal investigators and subscribing to a false tax return. Tillman is scheduled to be sentenced by Judge Klausner on August 27.
“Veterans Affairs employees who engage in collusive relationships with contractors will be aggressively pursued by the Office of Inspector General and prosecuted to the full extent of the law,” said Special Agent in Charge A.E. Pleasant, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Western Field Office.
The cases against Scott and Tillman are the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General; the Federal Bureau of Investigation; and IRS Criminal Investigation.
The prosecution of these cases is being handled by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Owner of Jacksonville Tax Preparation Business Sentenced to Federal Prison for Tax FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Elizabeth M. Jordan to 21 months in federal prison for aiding and assisting others with the filing of fraudulent tax returns. The court also sentenced Jordan’s daughter, Dolores A. Youmans, to 5 years’ probation for the same offense. In addition, each was also ordered to pay restitution to the IRS – totaling $176,379 for Jordan and $96,769 for Youmans.
According to court documents, Jordan was the owner and operator of a tax return preparation business in Jacksonville, which she started in 2011. At the business, Jordan, Youmans, and others prepared individual income tax returns on behalf of clients. In doing so, they reported false information, including false deductions, false claims for education and other credits, and false claims of business expenses. These false representations reduced the amount owed by, or increased the amount refunded to, the taxpayers.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Overland Park Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, KAN. – An Overland Park man was sentenced today to 37 months in federal prison for bank robbery, U.S. Attorney Stephen McAllister said.
Richard Armenta, 57, Overland Park, Kan., pleaded guilty to a Nov. 24, 2017, robbery at Capital Federal Savings Bank, 9001 E. Santa Fe in Overland Park. Armenta left the bank with cash, but investigators had two clues: a tattoo of a spider web on his left hand and a blue bicycle he rode to the bank.
On Dec. 2, Overland Park Police officers were called to a disturbance involving Armenta. They identified him from video surveillance of the bank robbery, the tattoo on his hand and a blue bicycle in the back of his pickup.
McAllister commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.