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Friday 6 July 2018
Group Sentenced for Roles in Anchorage Mail Theft RingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that six Anchorage residents have been sentenced for their roles in a local mail theft ring. The two lead defendants were sentenced this week, and were the last of six defendants to be sentenced in this case.
Sara James, 31, was sentenced yesterday to serve 42 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, aggravated identity theft, possession of stolen mail, and passing counterfeit money. David Gonzales, 37, was sentenced earlier this week to serve 72 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, and aggravated identity theft.
According to court documents, from August 2016 to May 2017, Sara James and her husband, Jonathan James, conspired with Gonzales and others, to steal mail and pass stolen checks with stolen IDs at banks around Anchorage, and to recruit others to help them do the same. Sara and Jonathan James would take turns driving Gonzales to go “mailboxing,” stealing mail from rows of mailboxes and looking for valuable checks and credit cards. Most of the stolen checks were then altered to make the payee a separate stolen identity that was used by the defendants to negotiate the stolen checks. The investigation further revealed that Sara James and Gonzales would share in the proceeds from negotiating the stolen checks, and exchange drugs for stolen mail and IDs.
During the course of the conspiracy, both Sara James and Gonzales were on release pending state charges for the same conduct while continuing to commit new crimes. In August 2017, federal charges were brought to cover all conduct and include four other co-defendants. Over the last several months, the following co-conspirators have been sentenced as part of this investigation:
- Jonathan James, 34, was sentenced to 24 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, aggravated identity theft, possession of stolen mail, and passing counterfeit money;
- Brandon Madrid, 29, was sentenced to 30 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, and aggravated identity theft;
- Braden Asbury, 21, was sentenced to one day in prison (credit for time already served), followed by five years of supervised release, for conspiracy and bank fraud; and
- Karri Embach, 35, was sentenced to time already served and five years of supervised release, for conspiracy and bank fraud.
The U.S. Postal Inspection Service (USPIS) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case, with assistance from the Palmer Police Department and the Criminal Investigations Unit of the State of Alaska Department of Revenue. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Former Vancouver, Washington, Tax Return Preparer Sentenced to Prison for Assisting in Filing False Tax DocumentsRead the Press Release
A Camas, Washington, tax preparer, who now lives in Vancouver, Washington, was sentenced today in U.S. District Court in Tacoma to a month in prison for assisting in filing false tax documents, announced U.S. Attorney Annette L. Hayes. PAULA ODIA, 44, prepared nearly 80 fraudulent tax returns, resulting in a tax loss to the U.S. that the government estimates is $254,191. Most of ODIA’s clients were unaware she had falsified their tax returns or that she directed a portion of their tax refund to her bank account or to accounts belonging to members of her family. At sentencing U.S. District Judge Robert J. Bryan said “This went on for a long time…. Theft is theft – You can’t steal from the government any more than you can from anybody else.”
“Many of the people who were betrayed by this defendant were undocumented-immigrants who paid taxes on their income despite their illegal status,” said U.S. Attorney Annette L. Hayes. “Ms. Odia thought she had the perfect fraud – steal from those who she believed would never go to the police to report the crime. I commend the IRS for its diligent efforts to ensure this defendant is held accountable for her actions.”
According to records filed in the case, between 2011 and 2016, ODIA prepared federal income taxes for customers from her Camas home. Clients would bring ODIA their records, and she would prepare and file their taxes. In 2011, ODIA began claiming illegitimate deductions and credits in her clients’ tax returns. These false deductions and credits reduced the clients’ tax obligations and increased the tax refund. ODIA then diverted a portion of that refund to bank accounts that she or members of her family controlled. When ODIA provided copies of the tax returns to clients, these copies did not reflect what ODIA actually filed with the IRS so that the clients would not see that some of the refund had been directed to ODIA’s accounts.
ODIA pleaded guilty in October 2017. She agreed to pay restitution to the U.S. Treasury of $254,191. Judge Bryan ordered one year of supervised release to follow the prison term.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Sidharth Velamoor.
Former Powell County Detention Center Deputy Indicted for Conspiring with Inmates to Assault Victim and Lying to Federal InvestigatorsRead the Press Release
WASHINGTON – A federal grand jury in Lexington, Kentucky, today returned a four-count indictment charging Jamie Derickson, a former deputy of the Powell County Detention Center, with violating the civil rights of an arrestee by conspiring with inmates at the detention center to assault the arrestee in a jail cell. Derickson is also charged with lying to the FBI about the assault.
The indictment alleges that on Aug. 17, 2016, Derickson conspired with several inmates in the jail, agreeing that the inmates would assault the arrestee after Derickson placed him in the cell. When the arrestee entered the cell, the inmates assaulted the arrestee, causing bodily injury. The indictment also alleges that Derickson violated the arrestee’s constitutional rights by aiding and abetting the inmates’ assault of the arrestee, and by being deliberately indifferent to the known serious risk that the victim would be assaulted. Finally, the indictment alleges that Derickson later lied to special agents of the FBI when he claimed to them that, at the time he placed the arrestee in the cell, he did not know that the inmates were going to assault him.
If convicted, Derickson faces a maximum term of imprisonment of 10 years for each civil rights offense and five years for lying to investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division are prosecuting the case.
Former Powell County Detention Center Deputy Indicted for Conspiring with Inmates to Assault Victim and Lying to Federal InvestigatorsRead the Press Release
A federal grand jury in Lexington, Kentucky, today returned a four-count indictment charging Jamie Derickson, a former deputy of the Powell County Detention Center, with violating the civil rights of an arrestee by conspiring with inmates at the detention center to assault the arrestee in a jail cell. Derickson is also charged with lying to the FBI about the assault.
The indictment alleges that on Aug. 17, 2016, Derickson conspired with several inmates in the jail, agreeing that the inmates would assault the arrestee after Derickson placed him in the cell. When the arrestee entered the cell, the inmates assaulted the arrestee, causing bodily injury. The indictment also alleges that Derickson violated the arrestee’s constitutional rights by aiding and abetting the inmates’ assault of the arrestee, and by being deliberately indifferent to the known serious risk that the victim would be assaulted. Finally, the indictment alleges that Derickson later lied to special agents of the FBI when he claimed to them that, at the time he placed the arrestee in the cell, he did not know that the inmates were going to assault him.
If convicted, Derickson faces a maximum term of imprisonment of 10 years for each civil rights offense and five years for lying to investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division are prosecuting the case.
Former Police Officer Sentenced to 18 Months in Federal Prison for Filing False Tax ReturnRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CRAIG FRANCIS, also known as Horus Durjaya Bey, 45, of Windsor, Connecticut, and Clermont, Florida, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 18 months of imprisonment, followed by one year of supervised release, for filing a false tax return.
According to court documents and statements made in court, in February 2009, FRANCIS, a former Hartford Police officer, E-filed a 2008 federal income tax return that listed falsely inflated amounts of both interest income received and taxable income withheld by the government, and requested a fraudulent refund of $255,904. On approximately March 1, 2009, the Internal Revenue Service issued the refund before determining that the tax return was fraudulent, and that FRANCIS was actually entitled to a refund of only $4,073.
Shortly after receiving the fraudulent refund, FRANCIS spent or converted to cashier’s checks more than $220,000 of the money he received. FRANCIS possessed $100,000 in cashier’s checks when the IRS officially notified him of the error on April 7, 2009. However, FRANCIS cashed the checks and spent the money over the next three months.
As of today, FRANCIS owes the IRS $387,103.07, which includes interest and penalties.
FRANCIS was arrested on June 7, 2017, in Florida. On February 22, 2018, he pleaded guilty to one count of filing a false tax return.
FRANCIS, who is released on a $250,000 bond, was ordered to report to prison on August 6, 2018.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Henry Kopel.
Former Delgado Community College Financial Aid Officer Charged with Solicitation and Receipt of BribesRead the Press Release
DAVIN D. THOMAS (“THOMAS”), age 32, of Ponchatoula, Louisiana, was charged July 5, 2018 in a one-count Superseding Bill of Information with soliciting money from students in exchange for awarding students financial aid, announced United States Attorney Duane A. Evans.
According to the Bill of Information, THOMAS was employed as a Financial Aid Assistant Director at Delgado Community College ("DCC"). THOMAS was responsible for the verification of student financial aid applications and for identifying the students who were eligible for financial aid funds. From April 2014 through August 2016, THOMAS solicited funds in the amount of $6,700 from three DCC students in exchange for awarding the students financial aid.
U. S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, THOMAS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and United States Department of Education, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Julia K. Evans.
Final Defendant Convicted of Federal Racketeering Conspiracy at Maryland’s Eastern Correctional InstitutionRead the Press Release
Baltimore, Maryland – A federal jury convicted correctional officer Jessica Vennie, age 28, of Crowley, Texas, on July 5, 2018, for racketeering at the Eastern Correctional Institution in Westover, Maryland, as well as drug and money laundering conspiracies. The scheme involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The jury acquitted correctional officer Jocelyn Byrd, age 41, of Salisbury, Maryland.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS).
According to the information presented at the nine-day trial, Vennie was a correctional officer at the Eastern Correctional Institution (ECI), the largest state prison in Maryland, operating since 1987, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. Vennie was assigned to the East Compound.
The evidence at trial showed that from about 2015, until October 5, 2016, Vennie and other correctional officers (COs) smuggled contraband into ECI, including narcotics, cell phones, pornographic DVDs, and tobacco. These items were distributed by inmates, and the COs managed the proceeds of the sales. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and others less. According to the trial testimony, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI.
The evidence showed that Vennie conspired to smuggle narcotics into ECI, including Suboxone and synthetic cannabinoids (otherwise known as “K2”). Although COs and other ECI employees were required to pass through security screening at the entrance to ECI, Vennie and other COs were able to hide contraband on their persons. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. Once Vennie and the other COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerks’ offices, which were private offices within each housing unit where an inmate clerk worked; the officers’ dining room where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations like staff bathrooms, storage closets, laundry rooms, and other places where contraband could be hidden and then later retrieved by inmates.
Vennie and her co-defendant were the final defendants remaining in this case. As a result of this verdict, 77 of the 80 defendants have now been convicted, including 16 of the 18 correctional officers charged. All the defendants who have been sentenced to date have been ordered to serve a term of imprisonment, ranging from a year and a day in prison to 65 months in prison.
Vennie faces a maximum sentence of 20 years in prison each for the racketeering conspiracy, for conspiracy to distribute and possess with intent to distribute K2, and for the money laundering conspiracy. Chief Judge James K. Bredar has scheduled Vennie’s sentencing for October 5, 2018.
The United States. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist in the three-year investigation.
United States Attorney Hur commended the FBI, the U.S. Postal Inspection Service, the Maryland Department of Public Safety and Correctional Services, the Baltimore Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Final Bank Robber Sentenced in Conspiracy to Rob Banks in LincolnRead the Press Release
United States Attorney Joe Kelly announced today that Kiana Stabler, the final member of a bank-robbing conspiracy, was sentenced to 84 months’ imprisonment. The five defendants worked together to rob six banks in Lincoln, Nebraska, in 2017. All five defendants pleaded guilty to a conspiracy to interfere with commerce by robbery, a count that carries a term of up to 20 years’ imprisonment, and up to three years of supervised released.
The defendants were sentenced as follows:
Julian Huffman, who served as a getaway driver for one bank robbery while still on parole in the State of Missouri, was sentenced to 60 months in prison;
Kaylene Stabler, who entered one of the banks and brandishing a pellet gun, was also sentenced to 60 months in prison;
Crystal Stabler, who served as a getaway driver for two robberies, was sentenced to 48 months in prison;
Kiana Stabler, who entered three banks using pepper spray on a victim and causing bodily injury to multiple victims inside one bank, was sentenced to 84 months in prison; and
Israel Holmes, who committed six bank robberies as part of the conspiracy and entered each bank, brandished dangerous weapons, and made threats to employees and customers of the banks, was sentenced to 120 months in prison.
All of the defendants were ordered to make full restitution to the victims.
This case was jointly investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Filipino Woman Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Jade Tiffany Laurezo, 34, a native of the Philippines, made her initial appearance yesterday in federal court in Roswell, N.M., on a criminal complaint charging her with possessing child pornography. Laurezo, who has been in the United States for several months on a visitor’s visa, remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for July 11, 2018, in Las Cruces, N.M.
According to the criminal complaint, the investigation leading to Laurezo’s arrest began in March 2018, when the Chaves County Sheriff’s Office (CCSO) followed up on a report from the National Center for Missing and Exploited Children regarding an email address subscribed to a Roswell residence where Laurezo was residing that allegedly was used to upload three files of child pornography. On June 27, 2018, the CCSO executed a state search warrant at the residence.
While executing the search warrant, the officers seized a cellular phone, which allegedly belonged to Laurezo. On July 3, 2018, the CCSO executed a state search warrant on the cellular phone and found that it contained four videos of child pornography.
If convicted of possession of child pornography, Laurezo faces up to ten years of imprisonment and will be deported after completing any prison sentence imposed. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Roswell office of the FBI, Homeland Security Investigations, and the Chaves County Sheriff’s Office. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Felon from Edgewood Pleads Guilty to Unlawful Possession of Firearm and Ammunition Under Plea Agreement Recommending 188 Months of ImprisonmentRead the Press Release
ALBUQUERQUE – Dennis Griego, 36, of Edgewood, N.M., pled guilty yesterday in federal court in Albuquerque, N.M., to violating the federal firearms laws by being a felon in possession of firearms and ammunition. Griego entered the guilty plea under an agreement recommending a sentence of 188 months of imprisonment followed by a term of supervised release to be determined by the court. Griego faced an enhanced penalty of a mandatory minimum sentence of 15 years of imprisonment based on his status as an armed career criminal.
Griego’s guilty plea was announced by 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, and Albuquerque Police Chief Michael Geier.
Griego, whose criminal history includes prior felony convictions for commercial-automotive burglary, possession of a controlled substance, residential burglary, being a felon in possession of a firearm, and aggravated battery against a household member with a deadly weapon, is being 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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Griego on Dec. 6, 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on April 29, 2016, in Bernalillo County, N.M. Griego was prohibited from possessing firearms and ammunition because of his prior felony convictions.
During yesterday’s change of plea hearing, Griego pled guilty to the indictment and admitted that he committed the offense on April 29, 2016, when officers of the Albuquerque Police Department served a state warrant for his arrest and executed a state search warrant at his residence. When the officers arrived at his residence, Griego barricaded himself in his residence, resulting in a prolonged standoff with the officers. The officers seized a firearm and ammunition from Griego’s residence when Griego surrendered and the officers were able to arrest him and execute the search warrant.
Griego has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled.
The Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated the case, which is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
District Man Sentenced to Three Years in Prison for Apartment Break-in in Northwest WashingtonRead the Press Release
WASHINGTON - Floyd Sellers, 55, of Washington, D.C., was sentenced today to three years in prison after earlier pleading guilty to a charge stemming from a break-in of an apartment in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Sellers pled guilty in March 2018, in the Superior Court of the District of Columbia, to a charge of attempted burglary. He was sentenced by the Honorable Robert A. Salerno. Following his prison term, he will be placed on three years of supervised release.
According to the government evidence, on July 24, 2016, at approximately 1 a.m., Sellers smashed the rear window of an apartment in the 1500 block of Church Street NW. He entered the apartment and stole some electronic devices, including an iPad, iPhone, laptop, and camera. No one was home at the time. The Metropolitan Police Department (MPD) later linked Sellers to the crime through fingerprints and other evidence and he was arrested in December 2016.
In announcing the sentence, U.S. Attorney Liu commended the work of the detectives from MPD’s Second District, who investigated the case. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. Finally, she acknowledged the efforts of Assistant U.S. Attorney Nurudeen Elias, who investigated and prosecuted the case with assistance from Assistant U.S. Attorney Veronica Sanchez.
Dauphin County Woman Charged with Tax EvasionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diane M. Fabian, age 67, of Middletown, Pennsylvania, was charged in a criminal information on July 5, 2018, with tax evasion.
According to United States Attorney David J. Freed, the information alleges that from 2011 through 2015, Fabian filed tax returns that understated her income resulting in a total tax due and owing to the United States of $45,100.
The case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for five years, 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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Court Imposes Maximum Fine on Sinovel Wind Group for Theft of Trade SecretsRead the Press Release
A manufacturer and exporter of wind turbines based in the People’s Republic of China was sentenced today for stealing trade secrets from AMSC, a U.S.-based company formerly known as American Superconductor Inc., announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
The Court found that AMSC’s losses from the theft exceeded $550 million, and imposed the maximum statutory fine in the amount of $1.5 million on Sinovel Wind Group LLC. The Court found that the parties settled the restitution amount, and imposed a year of probation until Sinovel pays the full restitution amount. Sinovel has paid $32.5 million to AMSC this week and will pay $25 million within its year of probation. Sinovel will also pay $850,000 to additional victims within its year of probation. Sinovel was convicted of conspiracy to commit trade secret theft, theft of trade secrets, and wire fraud on Jan. 24 following an 11-day jury trial in Madison, Wisconsin.
“Rather than pay AMSC for more than $800 million in products and services it had agreed to purchase, Sinovel instead hatched a scheme to brazenly steal AMSC’s proprietary wind turbine technology, causing the loss of almost 700 jobs and more than $1 billion in shareholder equity at AMSC,” said Acting Assistant Attorney General Cronan. “As demonstrated by this prosecution, intellectual property theft poses a serious threat to American companies, and the Department of Justice is committed to aggressively investigating and prosecuting individuals and corporations who undermine American competitiveness by stealing what they did not themselves create.”
“This case is about protecting American ideas and ingenuity,” said U.S. Attorney Blader. “My office is committed to prosecuting the theft of intellectual property to ensure an open and fair marketplace. The devastation Sinovel’s illegal actions caused to AMSC and its employees will not be tolerated.”
As proven at trial, Sinovel stole proprietary wind turbine technology from AMSC in order to produce its own turbines powered by the stolen intellectual property. AMSC developed the technology – software that regulates the flow of electricity from wind turbines to electrical grids – in Wisconsin and elsewhere. At the time of the theft in March 2011, Sinovel had contracted with AMSC for more than $800 million in products and services to be used for the wind turbines that Sinovel manufactured, sold, and serviced.
Sinovel was charged on June 27, 2013, along with Su Liying, the deputy director of Sinovel’s Research and Development Department; Zhao Haichun, a technology manager for Sinovel; and Dejan Karabasevic, a former employee of AMSC Windtec Gmbh, a wholly-owned subsidiary of AMSC. The evidence presented at trial showed that Sinovel conspired with the other defendants to obtain AMSC’s copyrighted information and trade secrets in order to produce wind turbines and to retrofit existing wind turbines with AMSC technology without paying AMSC the more than $800 million it was owed and promised. Through Su and Zhao, Sinovel convinced Karabasevic, who was head of AMSC Windtec’s automation engineering department in Klagenfurt, Austria, to leave AMSC Windtec, to join Sinovel, and to steal intellectual property from the AMSC computer system by secretly downloading source code on March 7, 2011, from an AMSC computer in Wisconsin to a computer in Klagenfurt. Sinovel then commissioned several wind turbines in Massachusetts and copied into the turbines software compiled from the source code stolen from AMSC. The U.S.-based builders of these Massachusetts turbines helped bring Sinovel to justice. Su and Zhao are Chinese nationals living in China, and Karabasevic is a Serbian national who lived in Austria, but now lives in Serbia.
According to evidence presented at trial, following the theft, AMSC suffered severe financial hardship. It lost more than $1 billion in shareholder equity and almost 700 jobs, over half its global workforce.
The case was investigated by the FBI’s Madison Resident Agency, Milwaukee Field Office, and the FBI’s Boston Field Office; this investigation was supported by an international team of FBI personnel, including agents and analysts stationed at FBI Legal Attaché Offices in Vienna, Austria and Beijing, China; and the FBI’s Intellectual Property Rights program within the Criminal Investigative Division; the Bundeskriminalamt (Federal Criminal Intelligence Service) and the Bundesministerium Fuer Justiz (Federal Ministry of Justice) in Austria; the Landeskriminalamt - Klagenfurt and the Staatsanwaltschaft - Klagenfurt (Criminal Investigative Police and State Prosecutor’s Office – Klagenfurt, Austria); and with the assistance of the Justice Department’s Office of International Affairs and the Cybercrime Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Senior Counsel Brian L. Levine of CCIPS and Assistant U.S. Attorneys Timothy M. O’Shea and Darren C. Halverson for the Western District of Wisconsin prosecuted the case, with substantial assistance from CCIPS Trial Attorney Joss Nichols and the CCIPS Cybercrime Lab, particularly Digital Investigative Analyst Laura Peterson.
The Department of Justice’s Task Force on Intellectual Property (IP Task Force) contributed to this case. The IP Task Force is led by the Deputy Attorney General to combat the growing number of domestic and intellectual property crimes, to protect the health and safety of American consumers, and to safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. To learn more about the IP Task Force, go to https://www.justice.gov/iptf .
Continued Increase in Federal Regional Violent Crime ProsecutionsRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. At least 85% of federal sentences must be served; there is no parole in the federal system. None. Sentences are served in prisons far from St. Louis. Below is a list of defendants prosecuted federally in June as a result of the hard work of police and agents:
Robert Childs, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Don Collins, 36, Jennings, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Joseph Paster, 30, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
Clifton Hudson, 34, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Daylin Crafton, 30, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and ammunition.
Joseph Dixon, Jr., 21, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possession of a firearm in furtherance of a crime of violence.
Joey Foster, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Davian Hampton, 39, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Virgil Johnson, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Langston, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrence McGee, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Siebert, 63, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm with an obliterated serial number and user of illegal narcotics in possession of a firearm.
Tredell Wilkes, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jevin Fossie, 31, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug-trafficking crime.
Eric Jackson, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corzelius Kent, 34, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.
Luis Sanchez-Padilla, 21, St. Louis, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.
Anthony Tobias-Haywood, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Clarence Hill, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrance White, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jaleel Adams, 23, St. Louis, was indicted by a federal grand jury on one felony count of distributing acetyl-fentanyl and that the death of a person resulted from the use of such acetyl-fentanyl; possession of a firearm in furtherance of a drug-trafficking crime; and possessed a stolen firearm.
Jesse Calhoun, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jeremy Dickerson, 27, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Michael Dilworth, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Leroy Eason, III, 43, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute heroin; felon in possession of a firearm; and possession of a firearm in furtherance of a drug-trafficking crime.
John Ehrsam, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Ewing, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dominick Foote, 38, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance; possession of a firearm in furtherance of one or more drug-trafficking crimes; and felon in possession of a firearm.
Danny Harris, 22, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Leona Jackson, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Cyrano Jones, 47, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; and possession of a firearm in furtherance of a drug trafficking crime.
Jeffrey Jones, 21, St. Ann, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Avion Kincade, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jared Levitt, 19, St. Louis, was indicted by a federal grand jury on one felony count of drug user in possession a firearm; possession with the intent to distribute liquid marijuana; and possession of a firearm in furtherance of a drug-trafficking crime.
De’Andre Logan, 18, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.
William Young, 25, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.
Lorenzo Luna-Espinoza, 22, Midland, TX, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.
Donte Parks, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Clark Roberts, 49, Cahokia, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with the intent to distribute cocaine; and possession of a firearm in furtherance of a drug-trafficking crime.
Travis Robinson, 21, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Devin Thompson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Cory Chandler, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Vinson Griffin, Jr., 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Victor Mora, 33, was indicted by a federal grand jury on one felony count of interference with commerce by violence.
Tyrell Phillips, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jerome Rankins, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Earl Rice, 60, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.
Darius Scott, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
John Spudich, Jr., St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Quoc Tran, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kenneth Watkins, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Emanuel Wesseh, 26, was indicted by a federal grand jury on one felony count of prohibited person in possession of a firearm.
Anthony Williams was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.
Brandon Woods, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; interference with commerce by violence; brandishing a firearm in furtherance of a crime of violence; and carjacking.
Roger Goff, 21, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and possession with intent to distribute a controlled substance.
Dyanthany Proudie, 26, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute.
Jamarco Cousins, 30, St. Louis, pled guilty to felon in possession of a firearm.
Anthony Williams, 40, St. Louis, pled guilty to felon in possession of a firearm.
Cortez Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.
Justin Willis, 24, St. Louis, pled guilty to felon in possession of a firearm.
Domonique Isreal, 25, St. Louis, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
Christopher Wilson, 28, Omaha, NE, pled guilty to felon in possession of a firearm.
Marlon Adams, 37, St. Louis, pled guilty to felon in possession of a firearm.
Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.
Alex Wheelis, 27, St. Louis, pled guilty to felon in possession of a firearm.
Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.
Kirk Wallace, 33, St. Louis, pled guilty to felon in possession of a firearm.
William Johnson, 23, St. Louis, pled guilty to felon in possession of a firearm.
Corey States, 40, St. Louis, pled guilty to felon in possession of a firearm.
Andre Adams, 32, St. Louis, pled guilty to felon in possession of a firearm.
Devin Tate, 25, pled guilty to felon in possession of a firearm.
Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.
Maurice Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.
Demarco Moorehead, 27, St. Louis, pled guilty to felon in possession of a firearm.
Deandre Thompson, 45, St. Louis, pled guilty to felon in possession of a firearm.
Acotra Weaver, 28, St. Louis, pled guilty to felon in possession of a firearm.
Darryl E. Allen, 50, St. Louis, pled guilty to felon in possession of a firearm.
Tito Santiago, 33, St. Louis, pled guilty to felon in possession of a firearm.
Damen Gascic, 33, pled guilty to felon in possession of a firearm; possession of an unregistered firearm; possession of controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Wilbert Anderson, 26, St. Louis, pled guilty to felon in possession of a firearm.
Squacar Gray, 40, St. Louis, pled guilty to felon in possession of a firearm.
Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.
Melvin Cooper, 49, St. Louis, pled guilty to felon in possession of a firearm.
Damon Catchings, 44, pled guilty to felon in possession of a firearm.
Charles D. Smith, 29, St. Louis, pled guilty to felon in possession of a firearm.
Marvin Williams, 42, St. Louis, pled guilty to felon in possession of a firearm; forcible assault with a firearm; and possession with the intent to distribute marijuana.
Marquis Shores, 35, pled guilty to felon in possession of a firearm.
Sterling Turner, 39, pled guilty to felon in possession of a firearm.
Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.
Deon D. Story, Jr., 38, St. Louis, pled guilty to felon in possession of a firearm.
Justin I. Morrow, 20, St. Louis, pled guilty to armed robbery and discharging a firearm in furtherance of a crime of violence.
Charles J. Jones, 45, St. Louis, pled guilty to felon in possession of a firearm.
Kenneth Foster, 44, St. Louis, pled guilty to felon in possession of a firearm.
Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.
Kenneth J. Pace, 24, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Darryl Easley, 48, St. Louis, was sentenced to 96 months in prison for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Dominique D. Simpson, 26, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Kenyetta Chapman, 22, Stockton, CA, was sentenced to 27 months in prison for felon in possession of a firearm.
Raynard Davison, 44, St. Louis, was sentenced to 8 months in prison for felon in possession of a firearm.
Amin Suluki-Bey, 48, St. Louis, was sentenced to 114 months in prison for armed robbery and brandishing a firearm in furtherance of a crime of violence.
Rashad Faries, 26, St. Louis, was sentenced to 18 months in prison for receipt of a firearm while under Indictment.
Joshua Brison, 24, St. Louis, was sentenced to 30 months in prison for importing a firearm/ammunition into the United States.
Johnnie Stewart, 36, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
Demante Syms, 26, St. Louis was sentenced to life in prison for his participation in the killing of three individuals in furtherance of drug trafficking and his tampering with a witness.
Jerome Hughes, 31, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.
Anthony Young, 45, St. Louis, was sentenced to 108 months in prison for felon in possession of a firearm.
George Grice, 32, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm and possession with intent to distribute heroin.
Terrell Raney, 40, St. Louis, was sentenced to 19 months in prison for felon in possession of a firearm.
Chad M. Jackson, 34, Florissant, was sentenced to 30 months in prison for felon in possession of a firearm.
Cory Smith, 29, Fenton, was sentenced to 33 months in prison for possession of a firearm/ammunition.
Jacobi Temple, 27, St. Louis, was sentenced to 50 years in prison for conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted.
Ramiro C. Valenzuela, 29, St. Charles, was sentenced to 21 months in prison for felon in possession of a firearm.
Jake Richardson, 24, St. Louis, was sentenced to 36 months in prison for felon in possession of a firearm.
Willie McFarland, 43, St. Louis, was sentenced to 18 months in prison for felon in possession of a firearm.
Quavo D. Williams, 22, Washington Park, IL, was sentenced to 12 years in prison for attempted carjacking and brandishing a firearm in furtherance of a crime of violence.
Michael Thomas-Williams, 35, Hazelwood, was sentenced to 90 months in prison for felon in possession of a firearm.
Michael E. Broom, Jr., 28, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.
Dane Reed, 41, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
These cases are 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.
Columbus Man Sentenced to 80 Months in Prison for Attempting to Provide Material Support to ISISRead the Press Release
COLUMBUS, Ohio – Aaron Travis Daniels, 21, aka Harun Muhammad, aka Abu Yusef of Columbus was sentenced in U.S. District Court to 80 months in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The court also granted the government’s request to place Daniels under court supervision for the rest of his life.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Columbus Joint Terrorism Task Force (JTTF) announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.
Documents filed with the court say Daniels met with an ISIS recruiter in December 2015 and sent funds to ISIS in order to “show his worth” to an ISIS recruiter. JTTF agents arrested Daniels on November 7, 2016, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on November 10, 2016. Daniels pleaded guilty on July 6, 2017 to one count of attempting to provide material support to ISIS. Daniels has been in custody since his arrest.
“One of a terrorist organization’s most valuable and dangerous assets is having control over a person willing to support and advance terrorism in the United States,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
Chief Judge Sargus also granted the government’s requests that, during Daniels’ supervised release, he receives ongoing mental health treatment, is prohibited from using alcohol or controlled substances, cannot travel internationally, and has no access to the internet without court approval. The court also ordered that Daniels be subject to search at any time without probable cause while on supervised release.
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
Assistant U.S. Attorney Jessica W. Knight and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section represented the United States in this case. Former Special Assistant U.S. Attorney Joseph Gibson also represented the United States in this case when he was with Franklin County Prosecutor Ron O’Brien’s Office.
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Champaign County Man Pleads Guilty to Producing Child PornographyRead the Press Release
DAYTON –Aaron Pauly, 44, of St. Paris, Ohio, pleaded guilty today to producing child pornography by coercing and threatening juvenile females to send him sexually explicit images of themselves.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the plea entered today before U.S. District Judge Thomas M. Rose.
According to court documents, Pauly created multiple fake accounts on social messenger services, using false names and photographs of others, including a family member, as his profile pictures. Pauly requested and received nude images and videos from more than 50 juvenile females between October 2014 and August 2017. Pauly located information about the victims’ family members on social media accounts and used this information to coerce the victims. The coercion included threats to tell the victims’ parents and/or schools about the pictures.
One of the victims told her family about the contact and the family reported the activity to law enforcement. A federal grand jury indicted Pauly on March 13, 2018.
“Sexual predators will get information about a victim’s family and use it to pressure the victim into giving the predator what he wants,” U.S. Attorney Glassman said. “Families should report any inappropriate contact their children receive to law enforcement, and we will continue to prosecute those who exploit our youngest citizens and their families.”
Judge Rose scheduled Pauly’s sentencing for October 12, 2018. Production of child pornography is punishable by at least 15 and up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Amy M. Smith, who is prosecuting the case.
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Alleged Sinaloa Cartel Member Extradited to the U.S. from Mexico for Funneling Massive Amounts of Marijuana and Cocaine into the U.S.Read the Press Release
Alleged Sinaloa Cartel member Arturo Lozano-Mendez aka “Garza” is in federal custody following his extradition from Mexico to the United States yesterday afternoon. Lozano made his initial appearance in federal court in El Paso this afternoon.
The announcement was made by U.S. Attorney John F. Bash for the Western District of Texas; Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration (DEA), El Paso Division; Special Agent in Charge Emmerson Buie, Jr., of the FBI, El Paso Division; and Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Division.
Lozano, age 47, is one of two dozen alleged high-ranking Sinaloa Cartel leaders, including Joaquin Guzman Loera aka “El Chapo” and Ismael Zambada Garcia aka “Mayo”, indicted in April 2012 on federal racketeering charges in the Western District of Texas. According to the indictment, Lozano was in charge of Sinaloa Cartel warehouses in Juarez.
“The extradition of Arturo Lozano-Mendez shows that Mexico’s continued cooperation in targeting significant drug traffickers is critical to our mutual efforts to protect the public from the negative impact of the drug trade,” stated DEA Special Agent in Charge Williamson. “DEA will continue to vigorously pursue drug traffickers and corrupt public officials who threaten the safety of our local communities and U.S. national security and continue to bring alleged cartel leaders to justice - on both sides of the border.”
“The FBI will continue to aggressively pursue transnational criminal organizations that have posed a threat to the U.S. national security, to include the corrupt public servants who are either members or in positions of leadership in the Sinaloa Cartel, who use their position to further the illicit activity of that organization,” said FBI Special Agent in Charge Buie. “The FBI is committed to upholding the rule of law and investigating those involved in criminal activity affecting our local communities.”
“The federal charges, arrests and extraditions associated with this investigation demonstrate our committed and ongoing partnership against transnational criminal organizations,” stated ATF Special Agent in Charge Jeffrey C. Boshek, II.
Lozano is charged with one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (RICO conspiracy), one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, one count of conspiracy to import into the United States five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, one count of conspiracy to commit money laundering offenses and one count of conspiracy to possess firearms in furtherance of drug trafficking crimes.
Twenty (20) defendants, including Lozano, remain under indictment in this case. Trial is scheduled for November 2018. Upon conviction, Lozano faces up to life in federal prison.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, thousands of pounds of marijuana in cities throughout the United States. Law enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of Juarez and the local drug trafficking corridors.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Department of Justice thanks the Government of Mexico for its assistance in this case.
The DEA, FBI, and ATF, together with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), U.S. Border Patrol, U.S. Customs and Border Protection (CBP), U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office, and the Texas Department of Public Safety investigated this case. The Justice Department’s Office of International Affairs provided significant assistance in the extradition. The case is being prosecuted by Assistant U.S. Attorneys of the Western District of Texas.
Abbeville felon pleads guilty to possessing pistolRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an Abbeville man pleaded guilty Monday to illegally possessing a pistol.
Carlin Jerrid Montgomery, 38, of Abbeville, Louisiana, pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of possession of a firearm by a convicted felon. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, law enforcement agents executed a search warrant at Montgomery’s home on April 28, 2017 and found a .45-caliber pistol and ammunition. The handgun was concealed in the exterior shell of a black metal stereo tuner lying on the floor under Montgomery’s bedroom window. The defendant was convicted on June 11, 2002 for possession of crack cocaine and is not allowed to possess a firearm.
Montgomery faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of September 28, 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.
Homeland Security Investigations, U.S. Customs and Border Protection, and ATF conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Thursday 5 July 2018
Woman Who Unlawfully Climbed the Statue of Liberty Arrested for Trespassing, Interference with Government Agency Functions, and Disorderly ConductRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Major Pamela Smith, Commander, New York Field Office of the U.S. Park Police, and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of THERESE OKOUMOU on charges of trespassing, interference with government agency functions, and disorderly conduct. The Information charges that OKOUMOU climbed the base of the Statue of Liberty and resisted orders to come down, causing the evacuation of Liberty Island on the Fourth of July and posing substantial danger to NYPD officers who were required to retrieve her. OKOUMOU was arrested Wednesday, and will be presented today in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Information, the defendant staged a dangerous stunt that alarmed the public and endangered her own life and the lives of the NYPD officers who responded to the scene. While we must and do respect the rights of the people to peaceable protest, that right does not extend to breaking the law in ways that put others at risk. I commend the Park Police for the orderly evacuation of Liberty Island yesterday, and the NYPD for their bravery and effectiveness in bringing yesterday’s events to a safe conclusion.”
U.S. Park Police Major Pamela Smith said: “This incident caused disruption to thousands of visitors on one of the busiest days of the year at the Statue of Liberty. We are grateful that the matter was resolved with no one sustaining injuries or causing major damage to the monument.”
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OKOUMOU, 44, of Staten Island, New York, is charged with one count of trespassing, one count of interference with agency functions, and one count of disorderly conduct. Each charge carries a maximum penalty of six months in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brett M. Kalikow is in charge of the prosecution.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Waterbury Man Charged with Illegally Possessing FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on June 27, 2018, a grand jury in New Haven returned an indictment charging JOHNATHEN LOPEZ, 28, of Waterbury, with possession of a firearm by a convicted felon. LOPEZ was arrested on July 2, 2018.
As alleged in the indictment and statements made in court, on April 27, 2017, members of the Waterbury Police Department’s Street Crimes Unit arrested LOPEZ after he was found in possession of a Glock 27 .40 caliber handgun. The firearm, which had been reported stolen during a burglary in Waterbury, is connected to shootings currently under investigation in Waterbury.
The indictment alleges that, prior to April 2017, LOPEZ had been convicted in state court of felony drug and weapon offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of this charge, LOPEZ faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Waterbury Police Department’s Gang Task Force, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Natasha Freismuth.
United States Announces Settlement with Kentucky Ensuring Compliance with Voter Registration List Maintenance RequirementsRead the Press Release
The Department of Justice today announced that it recently entered into a settlement with the Commonwealth of Kentucky, the Kentucky State Board of Elections, and the Kentucky Secretary of State, resolving the Department’s claims that Kentucky was not complying with the voter registration list maintenance procedures set forth in Section 8 of the National Voter Registration Act of 1993 (NVRA). Under the terms of the settlement, Kentucky will develop and implement a general program of statewide voter list maintenance that makes a reasonable effort to remove the names of registrants who have become ineligible due to a change in residence in accordance with Section 8 of the NVRA and state law.
The NVRA includes requirements for maintaining voter registration lists in elections for federal office. One of these NVRA requirements is that states make a reasonable effort to remove registrants who have become ineligible due to having died or moved. At the same time, the NVRA has protections to ensure that eligible voters remain on the rolls, including specific procedures that states must follow before removing voters who have moved to a new jurisdiction.
The Justice Department’s investigation found that, since 2009, Kentucky has not sent statutorily-required notices to registrants under the change-of-address process contemplated by the NVRA and state law. The investigation also found that, since 2015, Kentucky has not removed registrants through this statutorily-prescribed process when the registrants have moved to a new jurisdiction without notifying election officials.
The settlement requires the Kentucky State Board of Elections to create and implement a comprehensive plan, setting forth specific list maintenance procedures to be followed in the future, in accordance with the requirements and voter protections set forth by the NVRA. Such procedures must include a plan to obtain and use change-of-address information at least once per year. The comprehensive plan must also include procedures for sending a canvass mailing this summer to identify through returned mail those registrants who may have moved, as well as public outreach practices to educate voters about the importance of updating their voter registration when they change residences. The agreement also requires reporting of various information and data relating to the State Board’s list maintenance activities. The parties will submit the settlement to a federal judge for court approval.
“The NVRA’s list maintenance procedures ensure accurate and current voter registration rolls,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division commends Kentucky for working with the Division to ensure its voter registration list accurately reflects its eligible registrants, consistent with the protections and procedures of the NVRA.”
On June 28, 2017, the Justice Department sent letters to all 44 states covered by the NVRA requesting information regarding their efforts to comply with Section 8’s list maintenance requirements. The Department opened this investigation after receiving Kentucky’s response to that letter. This settlement is the Department’s first resolution of a Section 8 matter since it sent the letters.
More information about the National Voter Registration Act and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
Tractor-Trailer Driver Admits to Transporting Illegal AliensRead the Press Release
In San Antonio this morning, 36–year-old Gerardo Javier Carreon of Laredo, TX, pleaded guilty to transporting illegal aliens, announced United States Attorney John F. Bash and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Appearing before United States District Judge Fred Biery, Carreon pleaded guilty to one count of conspiracy to transport illegal aliens. On June 12, 2018, authorities responding to a scene in the area of Loop 410 and Broadway discovered over 50 illegal aliens in and around a semi-tractor trailer driven by Carreon.
Carreon, who remains in federal custody, faces up to ten years in federal prison. Sentencing is scheduled for October 5, 2018.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating this case. This investigation continues. Assistant United States Attorney Matt Lathrop is prosecuting this case on behalf of the Government.
Three Previously Deported Aliens Plead Guilty to Federal CrimesRead the Press Release
LEXINGTON, Ky. — Jose Alejandro Diaz -Tinoco, 35, Luis Eduardo Salto-Garcia 31, and Reynaldo Aviles- Hernandez 44, all Mexican Nationals, have each pled guilty to several federal crimes, including illegal re-entry to the United States after a previous deportation.
In the course of Diaz Tinoco’s his guilty plea, he admitted that he had previously been deported from the United States after being convicted of a felony drug trafficking offense in California. Tinoco admitted he unlawfully re-entered the United States prior to being arrested by the Kentucky State Police, on April 4, 2018, when he was in possession of $13,360 in cash. Immigration records show that Diaz-Tinoco has been deported from the United States on at least two prior occasions.
In the course of Luis Eduardo Salto-Garcia’s guilty plea, he admitted that he had previously been deported from the United States, and that he had unlawfully re-entered the United States prior to being arrested on March 1, 2018, by the Lexington Police, for unlawfully possessing a stolen firearm and a domestic violence offense. Immigration records show that Salto-Garcia has been deported from the United States on at least one prior occasion.
In the course of Reynaldo Aviles-Hernandez’s guilty plea, he admitted that he had previously been deported from the United States and had unlawfully re-entered the United States. He further admitted to using a fake United States social security card and other documents to obtain employment in Fayette County. Immigration records show that Aviles-Hernandez has been deported from the United States on at least three prior occasions.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Kristoffer Cortex, Acting Assistant Field Office Director, ICE; Chief Lawrence Weathers, Lexington Police Department; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announced the guilty pleas.
The investigations were conducted by ICE, KSP, and the Lexington Police. The United States was represented in the cases by Assistant United States Attorney Roger W. West.
Diaz-Tinoco, Salto-Garcia, Aviles-Hernandez are currently scheduled to appear for sentencing, before Chief United States District Judge Karen K. Caldwell, on DATE. Their sentences will be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Three Illegal Aliens Sentenced for Unlawfully Re-Entering the United StatesRead the Press Release
Gulfport, Miss. – Three illegal aliens, who were arrested while being transported in the same human smuggling operation, were sentenced today by U.S. District Judge Louis Guirola, Jr. for unlawful return after removal from the United States, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Chief Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
The defendants pled guilty to the charges on April 10, 2018.
Pedro Lopez-Alvarez a/k/a Pedro Lopez Alvarez a/k/a Pedro Alvarez-Baten, 23, an illegal alien from Guatemala, was sentenced to 5 months and 3 days in federal prison.
Silvano Doroteo Morales-Ventura a/k/a Silvano Morales Ventura, 23, an illegal alien from Mexico, was sentenced to 5 months amd 3 days in federal prison.
Wilmer Antonio Rubi-Padilla a/k/a Wilmer Rubi Padilla, 27, an illegal alien from Honduras, was sentenced to 6 months in in federal prison.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter. Both drivers of the SUVs were found to be in the United States illegally and each vehicle contained eight passengers who also were illegal aliens. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS. Three of the passengers were the defendants sentenced today.
Each of the defendants was sentenced to one year of supervised release during which time each could face additional penalties if he were to unlawfully return to the United States, in addition to any other penalty. Each also will face Department of Homeland Security removal proceedings. As a result of this felony conviction, if any of the three defendants were to unlawfully return again to the United States, he could face up to 10 years in federal prison.
U.S. Attorney Hurst praised the cooperation exhibited by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Three Illegal Aliens Sentenced for Unlawfully Re-Entering United StatesRead the Press Release
Gulfport, Miss. – Three illegal aliens, who were arrested while being transported in the same human smuggling operation, were sentenced today by U.S. District Judge Louis Guirola, Jr. for unlawful return after removal from the United States, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Chief Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Domingo Lopez-Lopez, age 25, an illegal alien from Mexico; Victor Manuel Polanco-Aguilar, age 23, an illegal alien from Guatemala; and Carlos Vazquez-Hernandez a/k/a Carlos Vasquez-Hernandez, age 21, also an illegal alien from Guatemala, were each sentenced to 5 months in federal prison. Each of the men had been convicted after pleading guilty before Judge Guirola on April 10, 2018.
On February 6, 2018, a U.S. Border Patrol agent conducted a traffic stop on a Toyota Highlander Sport Utility Vehicle (SUV), displaying a Georgia license plate on Interstate 10, east bound, in Harrison County. The agent encountered the driver, Carlos Manuel Legra-Ramirez, age 43, a citizen of Cuba and a Legal Permanent Resident of the United States living in Georgia. After interviewing the passengers in the vehicle, all claimed to be citizens and nationals of other countries illegally present in the United States. The driver, all passengers, and the vehicle were arrested and transported to the Gulfport Border Patrol Station. Agents determined that the passengers were being transported from Texas to Florida and Georgia, and that three defendants sentenced today had been removed from the United States and had unlawfully returned.
On June 1, 2018, Legra-Ramirez, pled guilty to the crime of conspiracy to transport illegal aliens within the United States and is scheduled to be sentenced by U.S. District Judge Sul Ozerden on September 7, 2018. Legra-Ramirez faces a potential maximum 10 years imprisonment, not more than 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. He also will be subject to immigration removal proceedings.
U.S. Attorney Hurst praised the cooperation exhibited by Homeland Security Investigations and the United States Border Patrol. Assistant United States Attorney Stan Harris prosecuted the case.
Tahlequah Man Sentenced to 87 Months in Prison for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Trent Shores announced today that District Judge John E. Dowdell sentenced Jeremy Batey, 44, of Tahlequah, to serve 87 months in federal prison for Attempted Receipt of Child Pornography. Batey must also pay a special monetary assessment totaling $100. After release from prison, Batey must serve ten years of supervised release.
Batey requested a female minor to send sexually explicit pictures of herself using an online computer app to his cell phone.
United States Attorney Shores stated, “Mr. Batey is a predator who attempted to obtain sexually explicit images of a 14 year old girl. I applaud the hard work of state and federal law enforcement, including the Tulsa Police Department and the Federal Bureau of Investigation, in order to keep our children safe.”
The prosecution resulted from an investigation conducted by the Federal Bureau of Investigation and the Tulsa Police Department. Assistant United States Attorneys Jeffrey A. Gallant and Christopher J. Nassar handled the prosecution of this case.
South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Brian Cardona, age 21, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for distribution of over 50 grams of methamphetamine, announced U.S. Attorney Kirsch.
Cardona was sentenced to 78 months imprisonment followed by 4 years of supervised release.
According to documents in this case, Cardona and his co-defendant Anthony Francis met with and sold seven ounces of methamphetamine to an undercover officer. They also had discussions with the officer about additional sales that could be made. Mr. Francis has pled guilty in this case and is scheduled to sentenced on September 27, 2018.
This case was investigated by the FBI and DEA, with assistance from the Elkhart Interdiction Unit and South Bend Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Semmes Resident Receives Five Years on Gun ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Brandon Earl Ashley, 30, a resident of Semmes, Alabama, to 60 months imprisonment for possessing a firearm in furtherance of a drug trafficking crime. The judge ordered that Ashley undergo five years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, and receive substance abuse testing and treatment.
Ashley is a convicted felon with a criminal history involving drugs. For instance, on August 22, 2013 Ashley was convicted of Possession of a Controlled Substance in the Circuit Court of Mobile County, Alabama. Federal law prohibits convicted felons such as Ashley from knowingly possessing a firearm.
Ashley admitted certain facts as part of his guilty plea. According to those documents, on August 22, 2017, Spanish Fort Police Department Officer Shane Parker was on patrol traveling west on Battleship Parkway. He saw a vehicle driving over 80 mph eastward on the parkway. Parker tuned around to initiate a traffic stop for speeding. Parker noticed the vehicle turn into Keeton Corrections. The vehicle appeared to Parker as if it were trying to elude the stop due to the vehicle’s speed when it crossed over the westbound traffic lanes. Parker saw the vehicle park abruptly. When Parker stopped near the vehicle, the driver was walking away from it. Parker told the driver to return to his vehicle, which he did.
Parker approached the vehicle and smelled marijuana emanating from the vehicle. Ashley was the driver and sole occupant of the vehicle. Parker searched the vehicle for marijuana. While searching the driver's side area, Parker found a loaded Taurus 9mm pistol under the seat. When Parker opened the back doors of the vehicle, he saw numerous bags of marijuana and a small bag of pills in plain view. Ashley possessed approximately $2,420.01 in cash. In the vehicle, police found a digital scale, multiple cell phones, and drugs, namely, cocaine, hydrocodone, oxycodone, amphetamine, alprazolam, fentanyl, marijuana, and methorphan. Police later determined that the Taurus firearm was stolen.
On December 27, 2017, a federal grand jury for the Southern District of Alabama returned a five-count indictment against Ashley, charging him with one count of being a felon in possession of a firearm, three counts of possession with intent to distribute a controlled substance, and one count of possessing a firearm in furtherance of a drug trafficking crime. On March 22, 2018, Ashley pleaded guilty before Chief Judge DuBose to possessing the Taurus pistol in furtherance of the crime of possession with intent to distribute controlled substances.The Federal Bureau of Investigation and the Spanish Fort Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Semmes Resident Receives Five Years on Gun ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Brandon Earl Ashley, 30, a resident of Semmes, Alabama, to 60 months imprisonment for possessing a firearm in furtherance of a drug trafficking crime. The judge ordered that Ashley undergo five years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, and receive substance abuse testing and treatment.
Ashley is a convicted felon with a criminal history involving drugs. For instance, on August 22, 2013 Ashley was convicted of Possession of a Controlled Substance in the Circuit Court of Mobile County, Alabama. Federal law prohibits convicted felons such as Ashley from knowingly possessing a firearm.
Ashley admitted certain facts as part of his guilty plea. According to those documents, on August 22, 2017, Spanish Fort Police Department Officer Shane Parker was on patrol traveling west on Battleship Parkway. He saw a vehicle driving over 80 mph eastward on the parkway. Parker tuned around to initiate a traffic stop for speeding. Parker noticed the vehicle turn into Keeton Corrections. The vehicle appeared to Parker as if it were trying to elude the stop due to the vehicle’s speed when it crossed over the westbound traffic lanes. Parker saw the vehicle park abruptly. When Parker stopped near the vehicle, the driver was walking away from it. Parker told the driver to return to his vehicle, which he did.
Parker approached the vehicle and smelled marijuana emanating from the vehicle. Ashley was the driver and sole occupant of the vehicle. Parker searched the vehicle for marijuana. While searching the driver's side area, Parker found a loaded Taurus 9mm pistol under the seat. When Parker opened the back doors of the vehicle, he saw numerous bags of marijuana and a small bag of pills in plain view. Ashley possessed approximately $2,420.01 in cash. In the vehicle, police found a digital scale, multiple cell phones, and drugs, namely, cocaine, hydrocodone, oxycodone, amphetamine, alprazolam, fentanyl, marijuana, and methorphan. Police later determined that the Taurus firearm was stolen.
On December 27, 2017, a federal grand jury for the Southern District of Alabama returned a five-count indictment against Ashley, charging him with one count of being a felon in possession of a firearm, three counts of possession with intent to distribute a controlled substance, and one count of possessing a firearm in furtherance of a drug trafficking crime. On March 22, 2018, Ashley pleaded guilty before Chief Judge DuBose to possessing the Taurus pistol in furtherance of the crime of possession with intent to distribute controlled substances.
The Federal Bureau of Investigation and the Spanish Fort Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Philadelphia, Pennsylvania, Man Sentenced to 96 Months, $1.69M for Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Manuel Emilio Payano, age 42, of Philadelphia, Pennsylvania was sentenced to 96 months imprisonment and 3 years supervised release for Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The court entered an order imposing a money judgment in the amount of $1,697,400.00. The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about October 16, 2017, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Because of the diligent efforts of the Oklahoma Highway Patrol and the DEA, hundreds of thousands of dosage units of illegal narcotics were prevented from reaching their intended destination. These law enforcement agents disrupted the unlawful and dangerous business of a drug trafficking organization. I commend these agents and the members of this office for their work and continued dedication to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing more than 13 million illegal dosages of opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in the arrests. In addition, HHS announced that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
United States Attorney for the District of South Dakota, Ron Parsons, announced that two of the people indicted as part of the 2018 Health Care Fraud Takedown were charged in the District of South Dakota:
Robert Fox, Jr., 35 of Wagner, South Dakota, was indicted in the District of South Dakota on June 6, 2018, on two counts of obtaining controlled substances by fraud. The charges allege that Fox acquired and obtained and attempted to acquire and obtain hydrocodone by misrepresentation, fraud, forgery, deception, and subterfuge, and that Fox has a previous conviction for the same offense. This case is being handled by Assistant U.S. Attorney Ann Hoffman.
Kristin Deboer, 49 of Caldwell, Idaho, was indicted in the District of South Dakota on June 25, 2018, on one count of Wire Fraud. The charges allege that Deboer fraudulently conducted a wire transfer from a banking account belonging to the Oglala Sioux Tribe, to an account belonging to All Around Sports, L.L.C., at Idaho Central Credit Union in the State and District of Idaho. The amount of the wire transfer was $54,000. This case is being handled by Assistant U.S. Attorney Jeremy R. Jehangiri.
The national enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
The cases announced are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to this announcement are available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.
Montgomery County Man Pleads Guilty to Distribution of Fentanyl-Laced DrugsRead the Press Release
Greenbelt, Maryland – Leandro Acevedo Lozada, age 33, of Gaithersburg, Maryland, pleaded guilty today to: conspiracy to distribute fentanyl; possession of acetyl fentanyl and cocaine; and being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration – Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from January 2017 through February 2017, Lozada conspired to distribute acetyl fentanyl and cocaine. Lozada distributed the drugs to street dealers and drug users, including co-defendant Bradley Seabolt. Although Lozada was not certain of the exact chemical compounds contained in opioids he sold, the appearance and strength of the drugs caused Lozada to suspect it was fentanyl. Because the opioids Lozada sold were so strong, he used powdered sugar to dilute them, in an effort to both expand its volume and his profit, and to make the drugs safer for his customers.
On January 11, 2017, Seabolt sold drugs containing both acetyl fentanyl and fentanyl to an individual in Montgomery County, who subsequently died from ingesting the drugs. Seabolt had obtained the drugs from Lozada. The Office of the Chief Medical Examiner determined that the victim died from fentanyl, acetyl fentanyl, and cocaine intoxication.
On February 17, 2017, a search warrant was executed at residences used by Lozada in Damascus and Gaithersburg. From the residence in Damascus, law enforcement recovered: 147 grams of a substance that contained both acetyl fentanyl and fentanyl; approximately 23 grams of cocaine; a bag of powdered sugar used by Lozada as a cutting agent for his opioids; $4,452 in cash; and a digital scale. From the residence in Gaithersburg, law enforcement recovered a .45-caliber handgun belonging to Lozada. Lozada had a previous felony conviction, which prohibited him from legally possessing the firearm.
Bradley Seabolt, age 30, of Gaithersburg, Maryland, pleaded guilty to conspiracy to distribute controlled substances on December 19, 2017, and is awaiting sentencing.
Lozada and the government have agreed that if the Court accepts the plea agreement, Lozada will be sentenced to at least 10 years, but no more than 20 years, in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 12, 2018 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DEA and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory Bernstein, who is prosecuting the case.
Mayor of the Municipality of Sabana Grande Indicted for Conversion of Federal Funds, Fraud, and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico– Miguel G. Ortiz-Vélez, a.k.a. “Papín”, mayor of the municipality of Sabana Grande has been indicted and arrested for his participation in a conspiracy to steal federal funds involving fraudulently obtained contracts from the PR Department of Education (PR DOE), announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. In a separate unrelated indictment, Victor Cruz-Quintero, former Director of Finance, and Ángel Santos-García, former interim Director of Finance of the Municipality of Toa Baja were charged with theft, conversion, and misappropriation of funds from the US Departments of Housing and Urban Development and Health and Human Services. The United States Department of Education, Office of Inspector General, and the Federal Bureau of Investigation are handling the Sabana Grande investigation. The Federal Bureau of Investigation, the United States Department of Housing and Urban Development, Office of Inspector General, and the United States Department of Health and Human Services, Office of Inspector General, are handling the Toa Baja investigation, with the collaboration of the PR Comptroller’s Office.
The indictment charging Ortiz-Velez, returned on July 2, 2018 by a federal grand jury in the District of Puerto Rico, includes six counts: two counts for theft of government money and property, one count for conspiracy to commit wire and mail fraud, two substantive counts of mail fraud, and one count for money laundering. He is also facing forfeiture allegations and a potential money judgment of $2,904,920.00, the value of the two contracts fraudulently obtained from the PR DOE.
According to the indictment, the defendant conspired with Irving Riquel Torres-Rodríguez (who previously pled guilty in two different cases), and others, to engage in deceptive conduct designed to fraudulently obtain federal funds from the US Department of Education and Puerto Rico Department of Education. As part of the agreement, those federal funds would be distributed to: the Municipality of Sabana Grande; Administrative, Environmental and Sports Consultants Corp. (AESC); Torres-Rodríguez- who was the owner of AESC; and others.
Defendant Ortiz-Vélez used his position as Mayor of Sabana Grande to defraud the PR DOE and to fraudulently obtain federal funds as follows:
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Ortiz-Vélez utilized his position as Mayor of Sabana Grande to obtain federal funds from the PR DOE based on material misrepresentations regarding the Municipality’s ability to perform the activities and the scope of the activities subject to the proposals. Ortiz-Vélez, as Mayor of Sabana Grande, subcontracted with AESC and Company F for the complete financing and administration of the projects without the knowledge or consent of the PR DOE. AESC then financed and administered the project for Company F, with an agreement that all profits would be split 40% for AESC and 60% for Company F.
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The Sabana Grande contracts with the PR DOE did not reflect the actual expenses incurred by AESC and Company F in providing the services. As a result, Ortiz-Vélez obtained net proceeds for the municipality, as well as net proceeds for AESC and Company F. For the first project, Verano Educativo, the AESC obtained approximately $549,286.10 in net profits and the Municipality of Sabana Grande obtained net proceeds of approximately $363,686.40, despite the project’s actual cost of approximately $221,747.50.
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For the second project, Desarrollo Contínuo, the Municipality of Sabana Grande, Company F, and AESC split approximately $1,330,612.45 in net profits from the PR DOE contract. The Municipality obtained net proceeds of approximately $391,988 and AESC obtained a net profit of $375,449.78. Company F obtained a net profit of $563,174.67, despite the project’s actual cost of approximately $439,587.55.
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During the period of this scheme, from in or about 2013 to in or about 2016, defendant Miguel G. Ortiz-Vélez received approximately $22,900 in cash contributions from AESC and Torres-Rodríguez.
The second indictment charges Victor Cruz-Quintero and Ángel Roberto Santos-García for, at different times, making unauthorized deposits and transfers of federal funds into the general account and payroll account of the Municipality of Toa Baja in order to pay the municipal payroll and to pay municipal contractors.
On or about October 28, 2014, defendant Victor Cruz-Quintero, as the finance director of the Municipality of Toa Baja, deposited approximately $2,538,164.41 in HUD Section 108 Loan Guarantee Program funds into the municipality’s general fund. These funds were utilized to make payroll payments to municipal employees and to pay various municipal contractors.
On various dates from September 2014 through February 2016, Victor Cruz-Quintero made additional deposits and transfers of federal funds from HHS and HUD to the general and payroll accounts of the Municipality of Toa Baja for unauthorized purposes. The indictment identifies seven separate transactions totaling over $1,750,000.
While interim finance director of the Municipality of Toa Baja in approximately August and September 2015, defendant Ángel Roberto Santos-García made various transfers of federal funds from HHS and HUD to the general and payroll accounts of the Municipality of Toa Baja for unauthorized purposes. The indictment identifies three separate transactions totaling $650,000.
“Mayor Miguel G. Ortiz-Vélez deceived the public’s trust and used his public office to fraudulently obtain federal funds in order to supplement the finances of the municipality of Sabana Grande,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “Corruption and fraud at any level of government betrays the ideals upon which our democracy is built. In regards with the investigation in Toa Baja, we will continue to follow the evidence in order to determine if other municipal officials were involved in the fraudulent scheme announced today.”
“The public must be able to trust the officials who are put in charge of government funds. Anyone who violates that trust will be brought to justice, because the citizens of Puerto Rico deserve no less. The FBI is proud to share this commitment with its partners from the United States Attorney’s Office, the Inspectors General for the Departments of Education, Housing and Urban Development, Health and Human Services, and the Office of the Comptroller of Puerto Rico,” stated Douglas Leff, Special Agent in Charge of FBI, San Juan.
The cases are being prosecuted by Assistant U.S. Attorney Seth Erbe. If found guilty, the defendants are facing possible sentences of up to 10 years for theft of government funds, misappropriation of federal program funds, and money laundering and up to 20 years for mail fraud, and the wire and mail fraud conspiracy.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.# # #
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Lackawanna County Man Pleads Guilty to Drug Distribution Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew McCollum, age 34, of Scranton, Pennsylvania, pled guilty on July 2, 2018, before Senior United States District Court Judge A. Richard Caputo for drug distribution resulting in death.
According to United States Attorney David J. Freed, McCollum pled guilty to unlawful distribution of heroin and fentanyl resulting in death. McCollum was indicted along with Josthan Cardona, age 26, and Holly Kaszuba, age 43, both of Scranton, by a grand jury in Scranton on August 23, 2017. Kaszuba is charged with the distribution of heroin and fentanyl resulting in death. Cardona is charged with the distribution of heroin and fentanyl resulting in two deaths and one overdose. The two deaths and the overdose occurred in December 2015. Cardona and Kaszuba are scheduled for trial on October 1, 2018.
The investigation was conducted by the Drug Enforcement Administration – Scranton Office, the Dunmore and Scranton Police Departments, and the Lackawanna County District Attorney’s Office. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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LaPorte Indiana Man Sentenced to 86 Months in PrisonRead the Press Release
SOUTH BEND - Newell Cooper, age 34, of LaPorte, Indiana was sentenced before District Court Judge Jon E. DeGuilio for possessing heroin with the intent to deliver, announced U.S. Attorney Kirsch.
Cooper was sentenced to 86 months in prison followed by 3 years of supervised release.
According to documents in this case, Cooper possessed a quantity of heroin on his person on February 23, 2017 which he intended to sell. Cooper has five prior felony convictions, five misdemeanor convictions, and 28 other contacts with law enforcement, and has violated probationary sentences twice.
This case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Michigan City Police Department and LaPorte County Drug Task Force. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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High school swim coach faces federal child sexual exploitation and pornography chargesRead the Press Release
Defendant is alleged to have had a sexual relationship with student athlete and filmed such sexual activity
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that a swim coach with Carmel High School faces federal charges for his alleged sexual involvement with one of his athletes. John C. Goelz, 29, Carmel, faces charges of sexual exploitation of a minor and possession of child pornography.
Goelz was arrested July 3, 2018, and remains in the custody of the U.S. Marshals Service. He will have a detention hearing July 10, 2018, in Federal Court in Indianapolis.
“Protecting our youth from sexual predators will always remain a top priority of this office,” said Minkler. “Those we put trust in to supervise and coach our children cannot be allowed to take advantage of them and will face tough federal prosecution.”
On June 29, 2018, law enforcement officials learned that Goelz may be involved in an inappropriate sexual relationship with a female athlete that he coached at the Carmel Swim Club and the Carmel High School Swim Team. Agents and officers were able to capture screen shots of text messages exchanged between Goelz and the minor victim. The messages indicated there was a sexual relationship between the two dating back to February 2018.
A search warrant was secured for Goelz’s residence and his personal cell phone. Further investigation revealed that Goelz and the minor victim were involved in a sexual relationship, which included having sex at public parks in Hamilton County, Goelz’s residence, and a hotel in Anderson, Indiana. The investigation further revealed that Goelz filmed the sexual activity with the minor victim at the hotel in Anderson, Indiana, using his cell phone, and a video file depicting the sexual activity was found on his cell phone.
This case was investigated by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) and the Hamilton County Metro Child Exploitation Task Force.
“This individual will no longer be able to victimize a child because highly skilled investigators from the Carmel and Fishers Police Departments in cooperation with Homeland Security Investigations are able to work together and focus on these troubling cases,” said Captain Andy Dietz, Task Force Director. “This investigation and arrest should serve as a warning to those who would prey upon our children.”
“These charges are especially disturbing given the defendant’s position of trust,” said Special Agent in Charge James M. Gibbons, Chicago HSI. “These allegations send a strong message to child predators that HSI is committed to bringing those who exploit children to justice.”
According to Assistant United States Attorney MaryAnn T. Mindrum who is prosecuting this case for the government, Goelz could face a minimum of fifteen years in prison if convicted.
If members of the public have further information regarding this case, they are encouraged to contact the Hamilton County Metro Child Exploitation Task Force at 317 595-3361.
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proved otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit or harm children and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1 and 4.2
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Henderson Man Sentenced to 20 Years in Federal Prison for Obstructing Justice and Illegal Possession of a FirearmRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that CHARLIE O’BRYANT TERRY, 33, of Henderson, North Carolina was sentenced by Senior United States District Judge W. Earl Britt to 240 months imprisonment, 24 months on a revocation of supervised release followed by 3 years’ supervised release after the term of imprisonment.
TERRY was named in a six-count Superseding Indictment on June 15, 2017. On September 25, 2017, TERRY pled guilty to Obstruction of Justice and Possession of a Firearm by a Convicted Felon. At the time of the offense to which he pled guilty, TERRY was actively being supervised by the United States Probation Office for a prior firearm conviction.
On January 10, 2017, TERRY attempted to sell a vehicle to two people for $3,000.00. While driving the potential buyers to retrieve the money, the check engine light came on in the vehicle. After an examination of the car at AutoZone, the potential buyer advised TERRY that he did not want to purchase the vehicle because it had too many issues. Instead, of returning the man to his home, TERRY who was angry, drove the man and woman to a rural area in Vance County, stopped the car, pulled the male from the car and repeatedly hit him with a firearm. TERRY then pulled the female from the vehicle, and placed the pistol in her mouth. TERRY subsequently took the victim’s cellular telephone and $3,000 before leaving them both on the side of the road. The male victim was hospitalized as a result of the assault and required staples to close a laceration to his head. The victims reported the assault and robbery to law enforcement.
TERRY was arrested on April 3, 2017, by deputies with the United States Marshals Service based on a warrant issued for violating the conditions of his supervision. While making the arrest at TERRY’S girlfriend’s residence, officers observed his girlfriend’s 14-year old daughter with an odd bulge in her pants. A subsequent search of the juvenile revealed a .22 caliber Taurus semiautomatic firearm loaded with 9 rounds of .22 caliber ammunition.
Following his arrest on April 3, 2017, TERRY also was served with outstanding arrest warrants related to the assault and robbery of the two victims mentioned above. While detained at the Vance County Jail, TERRY encountered in the jail, one of the victims TERRY assaulted over the car incident. On April 6, 2017, while in custody, TERRY approached that individual and told him to change his statement. TERRY told him that he needed to meet with TERRY’s attorney and tell the attorney that TERRY did not pistol whip him, that they only got into a fight. The man refused because of the injuries TERRY inflicted on him. TERRY threatened him if he did not change his statement.
Following TERRY’s federal arrest, agents seized and subsequently executed a search warrant on TERRY’s cellular telephone. A review of the pictures on the phone revealed that TERRY had taken several “selfies,” or photographs of himself with a Smith and Wesson .223 caliber AR-15 semiautomatic firearm on April 2, 2017. The firearm had been reported stolen and subsequently was recovered on April 10, 2017, at a residence in Henderson.
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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Henderson Police Department, Vance County Sheriff’s Office, North Carolina Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Marshal Service. Assistant United States Attorney S. Katherine Burnette prosecuted this case.
Hazleton Man Sentenced to Three Years in Prison for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ryan Hunsinger, age 28, of Hazleton, Pennsylvania was sentenced on July 3, 2018, to serve 36 months’ imprisonment by U.S. District Court Judge Robert D. Mariani, for trafficking in heroin in January 2016.
According to United States Attorney David J. Freed, Hunsinger previously pleaded guilty to possession with intent to distribute more than 100 grams of heroin. Hunsinger admitted to obtaining more than 19,000 bags of heroin from suppliers in Philadelphia and bringing the heroin to Hazleton with the intent to distribute it.
Hunsinger was indicted by a federal grand jury in February 2016, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, and Hazleton Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Mariani also ordered Hunsinger to serve three years on supervised release following his prison sentence.
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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Harrison County man admits to selling methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremiah R. Dodrill, of Spelter, West Virginia, has admitted to methamphetamine distribution, United States Attorney Bill Powell announced.
Dodrill, age 37, pled guilty to one count of “Distribution of Methamphetamine.” Dodrill admitted to selling methamphetamine in February of 2017 in Harrison County.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the cases on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former CIO Admits Accepting Approximately $1 Million in Bribes for Awarding ContractsRead the Press Release
TRENTON, N.J. – A Roslyn, New York, man today admitted demanding bribes in exchange for his assistance in securing contracts between a Texas financial services company and two New Jersey information technology staffing companies, U.S. Attorney Craig Carpenito announced.
Mark Berger, 58, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to violate the Federal Travel Act.
According to documents filed in this case and statements made in court:
From January 2011 through March 2013, Berger was the chief information officer of SWBC, a financial services company based in Texas, and had the ability and authority to hire certain companies to perform work. Berger entered into contracts between SWBC and two companies based in New Jersey, including DaVinci Technology Corp., for information technology and staffing services.
As a condition of the contracts, Berger demanded that the owner of the IT companies, Anthony Curlo, 53, of Chester, New Jersey, pay him a certain percentage of the monies that the companies would receive from SWBC.
The IT companies received approximately $3 million in revenue from SWBC. Under the terms of the illegal kickback arrangement between Berger and Curlo, Berger was supposed to receive $1.14 million in kickback payments. Berger actually received $985,000 in cash payments, which were delivered to his home in New York.
The conspiracy to violate the Federal Travel Act charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Berger also forfeited $985,000 as part of his guilty plea. Sentencing is scheduled for Oct. 10, 2018.
Curlo previously pleaded guilty to his role in the scheme on Sept. 21, 2016 and awaits sentencing.
U.S. Attorney Carpenito credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John Carman Esq., Garden City, New York
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Sherri A. Lydon stated today that a Federal Grand Jury in Columbia, South Carolina, returned an Indictment against the following:
Columbia Man Indicted for Firearm And Drug Charges. Reggie Denard Goodwin, age 47, of Columbia, was charged in a four-count indictment with being a felon in possession of a firearm and ammunition (2 counts), possession with intent to distribute a quantity of cocaine and a quantity of cocaine base (commonly known as “crack cocaine”), and use/carry/possession of a firearm in connection with/in furtherance of a drug trafficking crime, all in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c) and Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). These charges stem from his arrests on March 13, 2018, and June 1, 2018, in Columbia.
The felon in possession of a firearm and ammunition charges each carry a maximum of 10 years’ imprisonment, a fine of $250,000, and a term of supervised release of up to 3 years. The drug charge carries a maximum term of imprisonment of 30 years, a fine of $2,000,000, and a term of supervised release of at least 3 years. The use/carry/possession of a firearm in connection with/in furtherance of a drug trafficking crime carries a statutory mandatory minimum of 5 years imprisonment with a maximum of life, a fine of $250,000, and a term of supervised release of up to 5 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Criminal Complaint Alleges La Mirada Man who is Currently on Parole Sold More than One Pound of MethamphetamineRead the Press Release
SANTA ANA, California – A man currently on both state parole and federal supervised release has been charged with conspiracy to distribute controlled substances for selling more than one pound of methamphetamine, as well as cocaine.
Matthew Belling, 28, of La Mirada, who goes by the moniker “Miagi,” was arrested this morning by special agents with the Drug Enforcement Administration.
A federal criminal complaint filed last week alleges that Belling sold more than one pound of methamphetamine in a December 2017 drug deal that was captured on surveillance by the DEA and local law enforcement. The complaint charges Belling with one count of conspiracy to distribute methamphetamine and cocaine.
The affidavit in support of the criminal complaint alleges that Belling set up the drug deal and delivered the drugs to the buyer at a location in Garden Grove. During the drug deal, Belling boasted to the buyer that the drugs he was selling were “real good.”
According to the criminal complaint, Belling has an extensive criminal history, including state felony convictions for attempted murder, possession of marijuana for sale, making/possessing a dangerous weapon, and bringing a controlled substance into a correctional facility. He also has a federal felony conviction for counterfeiting U.S. currency. Belling is also currently on state parole and federal supervised release.
Belling is scheduled to make his initial court appearance in Santa Ana federal court this afternoon.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he were to be convicted of the conspiracy count alleged in the complaint, Belling would face a mandatory minimum sentence of 10 years in federal prison and maximum possible sentence of life without parole.
This matter is being investigated by the DEA and the Cypress Police Department.
Davie Woman Convicted of Participating in an IRS Impersonation ScamRead the Press Release
A Davie woman was convicted of wire fraud and conspiracy to commit wire fraud in federal court on Tuesday.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Gary L. Smith, Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
Amy E. Ahrens, 38, was found guilty after a two-day trial of seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, for her role in an IRS impersonation scam. At sentencing, the defendant faces up to twenty years imprisonment, a $250,000 fine, up to five years of supervised release, and restitution as to each count. The defendant is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on September 12, 2018 at 1:15 P.M. in Fort Lauderdale.
According to evidence presented at trial, an IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During these calls, the call recipient is told that they have an outstanding IRS debt that must be paid immediately. The impersonator further threatens the call recipient with either arrest, seizure of property or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are subsequently instructed to wire money to individuals they believe are IRS employees to avoid arrest, property seizure or a lawsuit.
According to the evidence presented at trial, Ahrens used her Bank of America and Wells Fargo accounts to receive money from victims of the scam. The trial testimony revealed that five victims received telephone calls purported to be from the IRS. The victims were threatened with arrest or having their assets seized if they did not pay a fictitious IRS tax debt. The callers made these threats and used other methods of intimidation to persuade the victims to make large cash deposits in the Ahrens’ bank accounts.
The evidence at trial further showed that between November 3, 2017 and November 8, 2017, Ahrens received seven cash deposits in her bank accounts totaling $47,366. The trial evidence and testimony established that Ahrens withdrew $46,950 in cash and used a portion of the money for a vacation in Las Vegas.
Since October 2013, TIGTA has received reports of more than 2.3 million impersonation related calls with more than 13,500 victims reporting losses of over $67 million.
Mr. Greenberg commended the investigative efforts of TIGTA and the U.S. Department of the Treasury. The case was prosecuted by Assistant U.S. Attorney Laurence J. Bardfeld.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Credit Suisse’s Investment Bank in Hong Kong Agrees to Pay $47 Million Criminal Penalty for Hiring Scheme That Violated the Foreign Corrupt Practices ActRead the Press Release
WASHINGTON – Credit Suisse (Hong Kong) Limited (Credit Suisse Hong Kong or CSHK), a Hong Kong-based subsidiary of Credit Suisse Group AG (Credit Suisse or CSAG), a Swiss-based issuer of publicly traded securities in the United States, has agreed to pay a $47 million criminal penalty for its role in a scheme to corruptly win banking business by awarding employment to friends and family of Chinese officials in violation of the Foreign Corrupt Practices Act.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), made the announcement.
“Credit Suisse Hong Kong’s practice of employing friends and family members of Chinese government officials as a quid pro quo for lucrative business opportunities was both profitable and corrupt and now the company will pay the price for that corruption,” stated United States Attorney Donoghue. “This Office is committed to holding companies that conduct business in the United States accountable when they or their subsidiaries corruptly influence foreign government officials for financial gain.”
“Bribery, in all its forms, must be stopped,” said Acting Assistant Attorney General Cronan. “Thanks to the prosecutors and investigators in this case, the Department has placed banks and other companies on notice that we will hold them accountable for all types of corrupt payments, including corrupt hiring practices.”
“In the banking industry, not every undertaking is fair game,” said FBI Assistant Director-in-Charge Sweeney. “Trading employment opportunities for less-than-qualified individuals in exchange for lucrative business deals is an example of nepotism at its finest. The criminal penalty imposed today provides explicit insight into the level of corruption that took place at the hands of Credit Suisse Group AG’s Hong Kong-based subsidiary.”
According to CSHK’s admissions, between 2007 and 2013, several senior CSHK managers in the Asia Pacific (APAC) region engaged in a practice to hire, promote, and retain candidates referred by or related to Chinese government officials and executives of Chinese state-owned entities (SOE). The employment of these “relationship” or “referral hires” was part of a quid pro quo with the officials who referred the candidates for employment, whereby CSHK bankers sought and obtained business from the referral sources. Employees of other subsidiaries of CSAG were aware of the referral hires and facilitated the conduct.
According to admissions made in connection with the resolution, CSHK bankers discussed and approved the hiring of close friends and family of Chinese officials in order to secure business for CSHK. For example, one SOE executive emailed a senior CSHK banker to refer a candidate who had a “very good and close relationship” with senior management at the SOE, and wrote that hiring the referral hire would “bring [CSHK] the big surprise in the near future if [CSHK] could … arrange a position in CS team in Beijing.” The senior CSHK banker later told a colleague about an impending deal that the SOE was pursuing and explained that the referring SOE official “was focused on having us make a relationship hire and said it was very important for us to win future business with [the SOE].” In another email to colleagues, a CSHK employee explained that “[r]elationship hires have to translate to $” or “the relationship is worthless to our organization.”
CSHK further admitted that referral hires were less qualified than other employees hired at the same level, they were less stringently vetted, and were given benefits throughout the course of their employment due to the provision of business to CSHK by their referral sources. For example, in relation to the interview process for one referral hire, a senior CSHK banker cautioned colleagues “not too many interviews,” as this referral hire was “a princess [who was] not used to too many rounds of interview.” CSHK employees also noted that they had to “be a bit ‘creative’ in filling” in this referral hire’s resume, before sending it to other CSHK employees. In another example, when a CSHK banker asked a high-ranking executive of a client SOE to “push for [CSHK’s] incentive,” the high-ranking executive “reminded [the CSHK banker] that [CSHK] need[ed] to pay [the SOE’s] relationship hire … well at the year end bonus.”
The corrupt scheme netted CSHK at least $46 million in profits from business mandates with Chinese SOEs.
CSHK entered into a non-prosecution agreement and agreed to pay a criminal penalty of $47,029,916 to resolve the matter. As part of the agreement, CSHK and its parent company Credit Suisse AG also agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, to enhance their compliance programs, and to report to the Department on the implementation of their enhanced compliance programs. The Department reached this resolution based on a number of factors, including that CSHK did not voluntarily and timely disclose the conduct at issue. CSHK received partial credit for its and its parent company’s cooperation with the criminal investigation, including making foreign-based employees available for interviews in the United States and producing documents to the government from foreign countries in ways that did not implicate foreign data privacy laws. However, CSHK did not receive additional cooperation credit because its cooperation was reactive and not proactive. Additionally, CSHK did not receive full credit for remediation because it failed to sufficiently discipline employees who were involved in the misconduct. Based on these considerations, the company received a non-prosecution agreement and an aggregate discount of 15 percent off of the bottom of the U.S. Sentencing Guidelines fine range.
In related proceedings, Credit Suisse Group AG also settled with the U.S. Securities and Exchange Commission (SEC). Under the terms of its resolution with the SEC, Credit Suisse Group AG agreed to a total of $24,989,843 in disgorgement of profits and $4,833,961 in prejudgment interest.
The FBI’s New York Field Office investigated the case. Assistant U.S. Attorneys Alicyn Cooley, Alixandra Smith and James P. McDonald of the Eastern District of New York’s Business and Securities Fraud Section, and Trial Attorney Katherine Nielsen and former Trial Attorney Allison Westfahl-Kong of the Criminal Division’s Fraud Section prosecuted the case. The U.S. Attorney’s Office and the Fraud Section appreciate the significant cooperation and assistance provided by the SEC in this matter.
Attachment(s):
Download Credit Suisse NPA with Statement of Facts
Credit Suisse’s Investment Bank in Hong Kong Agrees to Pay $47 Million Criminal Penalty for Corrupt Hiring Scheme that Violated the FCPARead the Press Release
Credit Suisse (Hong Kong) Limited (CSHK), a Hong Kong-based subsidiary of Credit Suisse Group AG (CSAG), a Swiss-based issuer of publicly traded securities in the United States, reached a resolution with the Department of Justice and agreed to pay a $47 million criminal penalty for its role in a scheme to corruptly win banking business by awarding employment to friends and family of Chinese officials.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York and Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“Credit Suisse (Hong Kong) Limited engaged in a corrupt scheme to win business with Chinese state-owned entities by hiring friends and family of Chinese government officials, generating the bank at least $46 million in profits,” said Acting Assistant Attorney General Cronan. “These ‘relationship hires’ often lacked necessary technical skills, and offered fewer qualifications and significantly less relevant banking experience than other candidates for the jobs. The Department of Justice remains steadfast in our commitment to combatting bribery and corruption in all its many forms, including where companies engage in corrupt hiring practices to gain the favor of foreign officials to generate improper business advantages and increase profits.”
“Credit Suisse Hong Kong’s practice of employing friends and family members of Chinese government officials as a quid pro quo for lucrative business opportunities was both profitable and corrupt and now the company will pay the price for that corruption,” said U.S. Attorney Donoghue. “This Office is committed to holding companies that conduct business in the United States accountable when they or their subsidiaries corruptly influence foreign government officials for financial gain.”
“In the banking industry, not every undertaking is fair game,” said Assistant Director-in-Charge Sweeney. “Trading employment opportunities for less-than-qualified individuals in exchange for lucrative business deals is an example of nepotism at its finest. The criminal penalty imposed today provides explicit insight into the level of corruption that took place at the hands of Credit Suisse Group AG’s Hong Kong-based subsidiary.”
According to CSHK’s admissions, between 2007 and 2013, several senior CSHK managers in the Asia Pacific (APAC) region engaged in a practice to hire, promote and retain candidates referred by or related to government officials and executives of clients that were state-owned entities (SOEs). The employment of these “relationship hires” or “referral hires” was part of a quid pro quo with the officials who referred the candidates for employment, whereby CSHK bankers sought to and did win business from the referral sources. Employees of other subsidiaries of CSAG were aware of the referral hires and facilitated the conduct.
According to admissions made in connection with the resolution, CSHK bankers discussed and approved the hiring of close friends and family of Chinese officials in order to secure business for CSHK. For example, one SOE executive emailed a senior CSHK banker to refer a candidate who had a “very good and close relationship” with senior management at the SOE, and wrote that hiring the referral hire would “bring [CSHK] the big surprise in the near future if [CSHK] could … arrange a position in CS team in Beijing.” The senior CSHK banker later told a colleague about an impending deal that the SOE was pursuing and explained that the referring SOE official “was focused on having us make a relationship hire and said it was very important for us to win future business with [the SOE].” In another email to colleagues, a CSHK employee explained that “[r]elationship hires have to translate to $” or “the relationship is worthless to our organization.”
CSHK further admitted that referral hires were less qualified than other employees hired at the same level, they were less stringently vetted and they were given benefits throughout the course of their employment due to the provision of business to CSHK by their referral sources. For example, in relation to the interview process for one referral hire, a senior CSHK banker cautioned colleagues “not too many interviews,” as this referral hire was “a princess [who was] not used to too many rounds of interview.” CSHK employees also noted that they had to “be a bit ‘creative’ in filling” in this referral hire’s resume, before sending it to other CSHK employees. In another example, when a CSHK banker asked a high-ranking executive of a client SOE to “push for [CSHK’s] incentive,” the high-ranking executive “reminded [the CSHK banker] that [CSHK] need[ed] to pay [the SOE’s] relationship hire … well at the year-end bonus.”
The corrupt scheme netted CSHK at least $46 million in profits from business mandates with Chinese SOEs, CSHK admitted.
The Department and CSHK entered into a non-prosecution agreement, and CSHK agreed to pay a criminal penalty of $47,029,916 to resolve the matter. As part of the agreement, CSHK and its parent company Credit Suisse AG also agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, to enhance their compliance programs and to report to the Department on the implementation of their enhanced compliance programs. The Department reached this resolution based on a number of factors, including that CSHK did not voluntarily and timely disclose the conduct at issue. CSHK received partial credit for its and its parent company’s cooperation with the criminal investigation, including making foreign-based employees available for interviews in the United States and producing documents to the government from foreign countries in ways that did not implicate foreign data privacy laws. However, CSHK did not receive additional cooperation credit because its cooperation was reactive and not proactive. Additionally, CSHK did not receive full credit for remediation because it failed to sufficiently discipline employees who were involved in the misconduct. Based on these considerations, the company received a non-prosecution agreement and an aggregate discount of 15 percent off the bottom of the U.S. Sentencing Guidelines fine range.
In related proceedings, Credit Suisse Group AG also settled with the U.S. Securities and Exchange Commission (SEC). Under the terms of its resolution with the SEC, Credit Suisse Group AG agreed to pay a total of $24,989,843 in disgorgement of profits and $4,833,961 in prejudgment interest.
The FBI’s New York Field Office investigated the case. Trial Attorney Katherine Nielsen and former Trial Attorney Allison Westfahl-Kong of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Alicyn Cooley, Alixandra Smith and James P. McDonald of the Eastern District of New York’s Business and Securities Fraud Section prosecuted the case. The Fraud Section and U.S. Attorney’s Office appreciate the significant cooperation and assistance provided by the SEC in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Carbon County Man Sentenced to over Seven Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Baldwin, age 21, of Nequehoning, Pennsylvania, was sentenced on July 2, 2018, to 95 months’ imprisonment by Senior United States District Court Judge A. Richard Caputo for sexual exploitation of children.
According to United States Attorney David J. Freed, from February 2017 through July 2017, Baldwin received, distributed, and possessed videos and visual depictions of minors, some under the age of 12, engaged in sexually explicit conduct.
Senior Judge Caputo also ordered Baldwin to be placed under supervision by a probation officer for the rest of his life.
Baldwin was indicted by a federal grand jury on November 7, 2017, after an investigation conducted by United States Homeland Security Investigations – Philadelphia Division. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Wednesday 4 July 2018
The Meaning of America: Excerpts from U.S. Attorney McSwain’s Investiture RemarksRead the Press Release
PHILADELPHIA – On June 29, 2018, U.S. Attorney William M. McSwain took the Oath of Office as the 39th United States Attorney for the Eastern District of Pennsylvania in a public swearing-in ceremony at the United States Courthouse. The following is an excerpt of the remarks he delivered, published today in observance of the Independence Day national holiday.
May it please the Court, Chief Judge Stengel, family, friends, honored guests, thank you very much for sharing this day with me and for making it so special.
When I was going through the process of trying to become U.S. Attorney, sometimes casual acquaintances would ask me, with a certain puzzlement in their voice: why would you want to do that? You already have a really good job – why would you want all that work and scrutiny, on a government salary? What’s that going to do for you? I used to get the same type of question when I joined the Marines soon after I graduated from college. Why do you want to do that? You can do anything – why the Marine Corps?
My initial internal reaction to these types of questions would always be: Are you kidding me? Do I really have to explain that to you? Don’t you get it?
I can feel it right here in my heart. That’s why I joined the Marines. That’s why I became an Assistant U.S. Attorney. That’s why I wanted to be U.S. Attorney.
And when I walked into my new office for the first time on April 6, 2018, I knew I was in the right place. I sat down at my desk and I looked to my right, and I took in the sweeping view of Independence National Park, and in particular, Independence Hall and the Liberty Bell. That was a powerful moment – and I invite all of you here today, when you have the time, to come visit me in my office and experience that view for yourselves. It is remarkable. This country was founded literally steps from where I’m blessed to work every day.
But I should be able to do more than just feel why I wanted to serve as U.S. Attorney. I should be able to explain it – to anybody who asks, and particularly, to my family.
So here goes: I love this country. I love what she stands for. The history of the world is largely a history of tribal warfare, monarchy, grinding poverty and misery. And then . . . there’s America. America is the greatest force for good in the history of the world. It is a country founded on ideas. And not just any ideas, but the right ideas – ideas that have unlocked human potential and enabled human flourishing. Self-government, freedom, liberty, individual rights, freedom of speech, freedom of thought, freedom of religion, free markets, capitalism, economic opportunity, and equality under the law.
It is our legal system that protects these ideas and makes them more than just words on a piece of paper. It is our legal system that is the foundation and protector of everything that we hold dear in this country. I want to do my part to serve that system and thereby honor the ideals that make America what she is. So how do I do that? What is “my part”?
My part is to enforce the law – not to make the law (that is the job of the legislative branch) and not to interpret the law (that is the province of the judiciary), but to enforce the law. And to do so fairly and consistently and in a nonpartisan manner. My part is to respect and promote the rule of law, and in the process, to keep our community safe.
There is no shortage of opportunities to do this. The challenges are everywhere: international terrorism, domestic terrorism, cybercrime, violent crime, the opioid epidemic, violent drug organizations, gangs, organized crime, child exploitation, human trafficking, political corruption, securities fraud, financial fraud, fraud against the government, tax fraud, protecting the public fisc, protecting civil rights – and the list goes on and on. So the question for me, really, is this: How much energy can I summon to attack these problems? How much commitment do I have? How dedicated can I be? How much am I willing to sacrifice?
My chance to make a meaningful impact on these problems isn’t going to last forever. I’m very aware of that. I have a limited amount of time in this position. When I sit at that desk for the last time and look over Independence National Park, and Independence Hall, and the Liberty Bell, and I think about the meaning of America – I don’t want to have any regrets. I don’t want to think to myself: I could have done more, or I should have done more.
It is the work of my life to earn the respect of the people in this room. I will do everything in my power to be worthy of that respect. I promise that I will not let you down.
God bless you, and God bless the United States of America.
Tuesday 3 July 2018
Waterford Psychologist Pays $126,760 to Settle Allegations under the False Claims ActRead the Press Release
United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that ARLENE WERNER, PhD., has entered into a civil settlement agreement with the federal and state governments and has paid more than $126,000 to resolve allegations that she violated the federal and state False Claims Acts.
WERNER is licensed as a Psychologist in the State of Connecticut and the owner of a private psychology practice in Waterford. She is enrolled as a provider in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program.
It is alleged that WERNER billed Medicaid for psychotherapy services that were not provided and that she billed Medicaid for family psychotherapy sessions for multiple family members when she should have billed one family member for individual psychotherapy services.
To resolve the allegations under the federal and state False Claims Acts, WARNER has paid $126,760.09 in order to reimburse the Medicaid program, which covers conduct occurring from January 2011 to July 18, 2016.
“It is imperative that providers accurately bill Medicaid and other insurance programs,” said U.S. Attorney Durham. “Working with our federal and state partners, we will continue to protect the integrity of the Medicaid program to ensure its recipients receive the healthcare services they need.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.
This case stems from a larger investigation into fraudulent activity in the area of behavioral health services, which has been jointly conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and the Connecticut Office of the Attorney General. Through the Medicaid program, the State of Connecticut provides coverage for mental health and counseling services to citizens who cannot otherwise afford health insurance. “Behavioral health” includes a wide variety of health care providers who provide care on an outpatient basis, including psychiatrists, psychologists, licensed clinical social workers, licensed marriage and family therapists, licensed professional counselors, and licensed alcohol and drug counselors.
This matter was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Antonia Conti of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Two Members of Mississippi Band of Choctaw Indians Plead Guilty to Second Degree MurderRead the Press Release
Jackson, Miss. – Jerome Steve, 33, and Keenan Martin, 26, both of Philadelphia and members of the Mississippi Band of Choctaw Indians, entered guilty pleas today before U.S. District Judge Daniel P. Jordan III to second degree murder, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
The murder took place in the early morning hours of November 2, 2018, in the Tucker Community of the Mississippi Band of Choctaw Indians near Philadelphia.
The defendants will be sentenced on October 10, 2018. The each face a possible statutory sentence of life in prison and fine of $250,000.
The case is being prosecuted by Deputy Criminal Chief Patrick Lemon, Assistant United States Attorney Erin Chalk and Special Assistant United States Attorney Kevin Payne. It was investigated by the Federal Bureau of Investigation and the Choctaw Police Department.
Two Freight Forwarding Executives Arrested in MiamiRead the Press Release
Two executives have been arrested in Miami on charges of conspiring to fix prices for international freight forwarding services, the Department of Justice announced.
A criminal complaint was unsealed on June 29 in U.S. District Court for the Eastern District of Louisiana against Roberto Dip and Jason Handal. Dip is the owner and CEO, and Handal is a manager, of a freight forwarding company that operates in ports throughout the United States, including New Orleans. At a detention hearing before a magistrate judge in Florida on July 3, Dip was ordered detained pending trial, and Handal was released on conditions including a $500,000 personal surety bond.
According to the criminal complaint, Dip and Handal participated in a conspiracy among freight forwarding companies from at least as early as March 2014 until at least March 2015. Freight forwarders arrange for and manage the shipment of goods, including by receiving, packaging, and otherwise preparing cargo destined for international shipment.
“As these arrests show, the Division and its law enforcement partners are committed to prosecuting senior executives who conspire to cheat American customers in vital international industries,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.
According to the affidavit filed in support of the criminal complaint, the conspirators met at several locations in Honduras and the United States, including New Orleans. At these meetings, the conspirators discussed and agreed to raise prices charged to U.S. customers, to be implemented by establishing “commissions” in port cities throughout the United States to coordinate and agree on the specific rates charged to customers in each port. According to the affidavit, this conduct is memorialized in emails and other documents. Emails allegedly show that Dip and Handal were aware that their conduct was in violation of U.S. antitrust laws and that they instructed co-conspirators to avoid leaving written evidence of their conduct.
Charges contained in a criminal complaint are merely allegations that a defendant has committed a violation of criminal law. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The ongoing investigation into price-fixing in the international freight forwarding industry is being conducted by the Antitrust Division’s Washington Criminal I Section, the FBI’s International Corruption Unit, and the FBI’s New Orleans Division. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.