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17 August 2018
U.S. Attorney Dunavant Announces AUSA Michelle Kimbril-Parks as OCDETF ChiefRead the Press Release
Memphis, TN – United States Attorney Dunavant is pleased to announce the appointment of AUSA Michelle Kimbril-Parks as Organized Crime Drug Enforcement Task Force (OCDETF) Chief for theWestern District of Tennessee.
Michelle Kimbril-Parks is a graduate of the University of Memphis and the Cecil C. Humphreys School of Law. Prior to joining the Department of Justice, Kimbril-Parks served as Assistant District Attorney with the Shelby County District Attorney General’s Office for 7 years. During her service there, she managed and supervised Assistant District Attorneys in a broad litigation practice including driving offenses, theft of property, narcotics, domestic violence, aggravated robbery, aggravated burglary and murder.
U.S. Attorney Dunavant said, "I am pleased to announce that I have appointed AUSA Michelle Kimbril-Parks as the new OCDETF Chief AUSA in the Unit. Michelle has been an AUSA in our office since 2007, and has been assigned to the OCDETF Unit since 2013. Michelle is a very experienced prosecutor and dedicated public servant, and I am confident that she will lead the unit with effectiveness and success. I look forward to working with her to pursue the priorities of our office in the crucial areas of organized and gang crime and drug enforcement."
In October 2007, Kimbril-Parks joined the Department of Justice as Assistant United States Attorney. Her current responsibilities include making charging decisions based on relevant federal statutes; drafting indictments, search warrants, and other legal documents; researching and drafting briefs for matters appealed to the U.S. Court of Appeals for the Sixth Circuit; and presenting oral arguments to the U.S. Court of Appeals for the Sixth Circuit. In addition, her litigation practice has included cases involving possession of firearms, child exploitation, identity theft, escape, firearms trafficking, Hobbs Act Robbery, carjacking, narcotics and interstate stalking.
U.S. Attorney David Joseph voices support for 2019 opioid manufacturing reductionRead the Press Release
SHREVEPORT/LAFAYETTE/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney David C. Joseph voiced support today for a U.S. Department of Justice and Drug Enforcement Administration (DEA) proposal to reduce the quantity of opioids being manufactured in the United States.
“One of my priorities as U.S. Attorney is to fight opioid trafficking and abuse in Louisiana,” Joseph stated. “Opioid abuse leads to crime, violence, and death. We have already increased our efforts to prosecute those who illegally traffic in opioids in and through the Western District of Louisiana. The DEA’s action in reducing the quantity of these drugs being manufactured will further our efforts to reduce opioid abuse in our communities.”
Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted because of increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Two Sentenced to Federal Prison for Investment FraudRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II today sentenced Leone Alfano La Cava (59, Orlando) and Viktoriya Johnson (36, Orlando) to 8 years and 1 month in federal prison, and 3 years and 10 months’ imprisonment, respectively, for wire fraud and conspiracy to commit wire fraud. The Court also ordered La Cava and Johnson to forfeit four properties and two luxury vehicles, which are traceable to proceeds of the offenses.
Johnson was found guilty by a federal jury on April 13, 2018. La Cava had pleaded guilty on March 30, 2018.
According to court documents, La Cava and Johnson orchestrated an international real estate investment scheme that defrauded at least 85 Italian investors out of over $5 million. La Cava solicited individuals, in Italy, to purchase real estate in Orange County that he claimed would generate guaranteed rental income. Johnson and La Cava then used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or Golden Investment, Inc., a real estate investment company incorporated by Johnson in 2010. In fact, those properties either did not exist, were never owned by La Cava, Johnson, or Golden Investment, or had already been sold to another investor.
La Cava and Johnson used portions of the funds sent by investors for their own personal use instead of purchasing the real estate promised to investors. Johnson received over $1.3 million in investor funds, that she used to purchase four properties and two luxury vehicles for herself.
This case was investigated by the FBI. It was prosecuted by Assistant United States Attorneys Nathan W. Hill, Chauncey A. Bratt, and Roger B. Handberg.
Two Cleveland men indicted on firearms chargesRead the Press Release
Two Cleveland men were indicted on federal firearms charges, U.S. Attorney Justin E. Herdman said.
Deyonte Barnes, 26, and Rockie Samuel Chandler, III, 24, were both indicted on one count of being a felon in possession of firearm and ammunition.
Barnes possessed a Charter Arms, .38 special revolver, and ammunition and June 26. Barnes has prior convictions for robbery and burglary that prohibit him from having firearms or ammunition, according to the indictment.
Chandler possessed a Glock, .40 caliber pistol, and ammunition on June 27. Chandler has prior convictions for aggravated robbery and drug trafficking that prohibit him from having firearms or ammunition, according to the indictment.
Their cases are otherwise unrelated.
Both cases are being prosecuted by Assistant U.S. Attorney Danielle K. Angeli following investigations by the Bureau of Alcohol, Tobacco, and Firearms and the Cleveland Police Department.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tucson Man Sentenced to 5 Years’ Prison after Threatened Use of Explosive Device during Bank Robbery and Stand-Off with PoliceRead the Press Release
TUCSON, Ariz. – On Friday, Aug. 17, 2018, David Allen Markillie, 67, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 60 months’ imprisonment. Markillie had previously pleaded guilty to one count of armed bank robbery and one count of false information and hoax.
On Aug. 10, 2017, Markillie entered the Compass Bank located at 7645 N. La Cholla and robbed the bank by the threatened use of a bomb. He stole approximately $2,300 and fled to the Foothills Mall where he was taken into custody after a stand-off with Pima County Sheriff’s deputies.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Beverly K. Anderson, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-17-1472-TUC-JAS
RELEASE NUMBER: 2018-109_Markillie
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Men and One Woman Charged with Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that three men and one woman from Watertown, South Dakota, have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Amos Hall, a/k/a Amos Lee Hall, IV, age 35, was indicted on June 13, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on August 16, 2018, and pled not guilty to the Indictment.
Dayvon Byrd, age 28, was indicted on June 13, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on June 29, 2018, and pled not guilty to the Indictment.
Danny Callahan, age 39, was indicted on June 13, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on July 19, 2018, and pled not guilty to the Indictment.
Alexis Dumarce, age 30, was indicted on June 13, 2018. She appeared before U.S. Magistrate Judge William D. Gerdes on June 28, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years, up to life, in federal prison and/or a $10,000,000 fine, at least 5 years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 23, 2017, and continuing to on or about February 28, 2018, Hall, Byrd, Callahan, and Dumarce knowingly and intentionally combined, conspired, confederated, and agreed with persons known and unknown to distribute and possess with intent to distribute 500 grams or more of methamphetamine, which is a Schedule II controlled substance.
The charge is merely an accusation and Hall, Byrd, Callahan, and Dumarce, are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Callahan was released on Bond. Hall, Byrd, and Dumarce were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for August 28, 2018.
The Bailey Family Sentenced to a total of 249 Months in Federal Prison for Defrauding Medicare, Medicaid and TricareRead the Press Release
Jackson, TN – Following a three-week trial in February 2018, a federal jury convicted a married couple and their son, of health-care fraud offenses that led to millions of dollars lost to federal health care programs. A federal judge has sentenced them to a total of 249 months in federal prison. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentences today.
Sandra Bailey, 67 of Jackson, Tenn., was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. Her husband, Calvin Bailey, 67, was convicted of conspiracy. Their son, Bryan Bailey, 39, of Milan, Tenn., was convicted of conspiracy and wire fraud. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("Jaspan"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at Jaspan, the couple was employed by other medical supply companies in West Tennessee, Kentucky and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at Jaspan, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
In 2010, Bryan Bailey expanded Jaspan’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
"These defendants were the ringleaders of a multi-million dollar fraud scheme that provided expensive power wheelchairs to patients who did not need them," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "They were motivated by a desire to enrich themselves by stealing from the taxpayers and made the mistake of thinking they would not be caught."
The Baileys caused more than$4 million in billing of power wheelchairs and back braces to be paid by taxpayers. During the time the Baileys worked at Jaspan and the other companies, they received more than $1.2 million in salary and sales commissions.
On August 16, 2018, Chief United States District Judge S. Thomas Anderson sentenced Sandra Bailey to 120 months imprisonment; three years supervised release, and a $1600 special assessment. He sentenced Calvin Bailey to 45 months imprisonment; three years supervised release, and each ordered to pay $1.4 million in restitution. On June 1, 2018, Judge Anderson had sentenced Bryan Bailey to 84 months imprisonment; followed by 3 years supervised release; $1.9 million in restitution and a $200 special assessment.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office of Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on the government’s behalf.
Texas Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Mark Ramos, 32, of San Antonio, Texas, who was convicted of conspiracy to possess with intent to distribute, and distribution of, more than 500 grams of cocaine, was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between May 2016 and June 1, 2016, the defendant conspired with co-defendants Jabriel Crews, Charles Gonzalez, and others, to take delivery of cocaine sent through the U.S. mail, and to distribute it in the Buffalo area.
On June 1, 2016, Ramos drove a rented vehicle to the parking lot of a retail store in Cheektowaga, NY, and parked next to a car driven by Charles Gonzalez. After a brief meeting in Gonzalez’s vehicle, Gonzalez removed a package containing cocaine from the trunk and gave it to the defendant, who then placed in the trunk of his vehicle. Upon executing a search warrant on the vehicle, officers recovered two bricks of cocaine inside of a U.S. postal parcel addressed to Charles Gonzalez.
Charles Gonzalez was charged and convicted in state court. Jabriel Crews was charged and convicted in federal court and is awaiting sentencing.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Erie County Sheriff’s Department, under the direction of Timothy Howard.
Tampa Rap Artist Sentenced to 3 Years for Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – Torry Williams, 24, of Tampa, who performs as a rap artist under the name “Toon Trill,” was sentenced today to 36 months in federal prison after pleading guilty on March 30, 2018, to theft of government money and aggravated identity theft. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between November 2012 and June 2013, Williams, who was a student at Tallahassee Community College, was involved in a scheme to file fraudulent tax returns in the names of others. The IRS issued approximately $149,847 in refunds based upon these fraudulent returns. As part of the scheme to illegally obtain tax refunds, Williams used the dates of birth, names, and social security numbers of over fourteen different people.
As part of his sentence, Williams was ordered to pay $149,847 in restitution to the government.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michael J. Harwin prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
State of Georgia awarded $110 million in grants to aid crime victimsRead the Press Release
ATLANTA – The U.S. Attorneys for the Northern, Middle and Southern Districts of Georgia and the Criminal Justice Coordinating Council (CJCC), announce the award of more than $110 million to fund local victim assistance programs across the state and to help compensate victims for crime-related losses. This is the largest award to the State of Georgia under this program in its history.
“Crime victims often suffer physical, emotional and financial injury,” said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “While tremendous progress has been made in addressing the rights of crime victims, these funds will justly compensate and lessen the impact of their financial burdens, while also providing additional program resources to support them during their recovery process.”
“No amount of money can fully fix the traumas crime victims and their families frequently endure, but these funds can help offset financial, physical and emotional injuries,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “As important, these funds let the victim community know that their voices are heard.”
“The Department of Justice is committed to seeking justice for crime victims,” states U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “This historic award, funded almost entirely out of the pockets of those convicted of crime, is an aggressive affirmation that we are putting victims first!”
“As the state administering agency for these funds, the Criminal Justice Coordinating Council (CJCC), is pleased to receive this funding and will continue to support organizations that provide direct services to crime victims in Georgia,” said Executive Director Jay Neal. “This funding allows us to aid people when they are potentially at the darkest time in their life, and for that, we are grateful.”
In Georgia, $6,623,000 is being awarded under the Victims of Crime Act (VOCA) Victim Compensation Grant Program to reimburse victims and survivors for medical expenses, mental health counseling, loss of income or support, funeral expenses, and crime scene sanitation. This compensation is often a lifeline to state and federal victims who face enormous financial setbacks on top of the emotional strife they experience.
In addition, $104,998,424 is being awarded to the State of Georgia under the VOCA Victim Assistance Formula grant to support providers of services to crime victims. These funds will be dispersed to local governments and community organizations that provide direct services to victims.
The awards are distributed through two grant programs administered by the Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs, and are supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments, which includes no tax dollars.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
State of Georgia Awarded $110 Million in Grants to Aid Crime VictimsRead the Press Release
ATLANTA – The U.S. Attorneys for the Northern, Middle and Southern Districts of Georgia and the Criminal Justice Coordinating Council (CJCC), announce the award of more than $110 million to fund local victim assistance programs across the state and to help compensate victims for crime-related losses. This is the largest award to the State of Georgia under this program in its history.
“Crime victims often suffer physical, emotional and financial injury,” said U.S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “While tremendous progress has been made in addressing the rights of crime victims, these funds will justly compensate and lessen the impact of their financial burdens, while also providing additional program resources to support them during their recovery process.”
“No amount of money can fully fix the traumas crime victims and their families frequently endure, but these funds can help offset financial, physical and emotional injuries,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “As important, these funds let the victim community know that their voices are heard.”
“The Department of Justice is committed to seeking justice for crime victims,” states U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “This historic award, funded almost entirely out of the pockets of those convicted of crime, is an aggressive affirmation that we are putting victims first!”
“As the state administering agency for these funds, the Criminal Justice Coordinating Council (CJCC), is pleased to receive this funding and will continue to support organizations that provide direct services to crime victims in Georgia,” said Executive Director Jay Neal. “This funding allows us to aid people when they are potentially at the darkest time in their life, and for that, we are grateful.”
In Georgia, $6,623,000 is being awarded under the Victims of Crime Act (VOCA) Victim Compensation Grant Program to reimburse victims and survivors for medical expenses, mental health counseling, loss of income or support, funeral expenses, and crime scene sanitation. This compensation is often a lifeline to state and federal victims who face enormous financial setbacks on top of the emotional strife they experience.
In addition, $104,998,424 is being awarded to the State of Georgia under the VOCA Victim Assistance Formula grant to support providers of services to crime victims. These funds will be dispersed to local governments and community organizations that provide direct services to victims.
The awards are distributed through two grant programs administered by the Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs, and are supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments, which includes no tax dollars.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
South Carolina Man Participated in Scheme to Distribute MethRead the Press Release
PITTSBURGH, PA – A resident of South Carolina pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Nathan Haskins, age 21, pleaded guilty to two counts before United States District Court Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on July 29, 2016, Haskins conspired with others to distribute and possessed with intent to distribute over five grams of actual methamphetamine.
Judge Hornak scheduled sentencing for December 20, 2018. The law provides, at each count, for a term of imprisonment of not less than five years and not more than 40 years, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Stowe Township Police Department and the Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
Sixth Massachusetts State Trooper Charged in Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper was charged and agreed to plead guilty today in connection with being paid over $11,000 for overtime hours that he did not work.
Kevin Sweeney, 40, of Braintree, was charged with one count of embezzlement from an agency receiving federal funds and one count of wire fraud. Sweeney has agreed to plead guilty; a court date has not yet been scheduled.
According to court documents, Sweeney was a MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2015, Sweeney earned $249,407, which included approximately $111,808 in overtime pay. In 2016, Sweeney earned $218,512, which included approximately $95,895 in overtime pay.
Sweeney was allegedly paid for overtime shifts that he either did not work at all or from which he left early. Sweeney concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
For example, on Dec. 14, 2016, Sweeney claimed in MSP payroll submissions and other paperwork to have worked a “D AIRE” overtime shift from 7:00 p.m. to 11:00 p.m. Sweeney allegedly wrote eight motor vehicle citations during the shift and submitted copies of those citations to MSP as evidence that he had worked. Yet, Sweeney’s cruiser radio was not turned on during the overtime shift, he did not run any driver histories during the shift, and Registry of Motor Vehicle records reflect that none of the motorists that Sweeney claims to have cited actually received a citation that day.
Sweeney has agreed to plead guilty to being paid $11,103 for overtime hours that he did not work. The overtime in question involved the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative, which were intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
Sweeney is the sixth trooper charged as a result of the ongoing investigation. On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; Trooper Gary Herman, 45, of Chester; and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood was charged and pleaded guilty. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was also charged.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit and Neil Gallagher of Lelling’s Economic Crimes Unit are prosecuting the case.
Silver Spring Felon Convicted of FirebombingRead the Press Release
Greenbelt, Maryland – A federal jury convicted Darius Eric Wilder, age 41, of Silver Spring, Maryland, on August 16, 2018, on charges related to the firebombing of his ex-girlfriend’s apartment.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department, and Fire Chief Scott Goldstein of the Montgomery County Fire and Rescue Service.
According to the information presented at Wilder’s four-day trial, on April 15, 2017, at approximately 9:22 p.m. the Montgomery County Fire and Rescue Service responded to a fire on the balcony of an apartment in Gaithersburg, Maryland, which they located and extinguished. Investigators from the Montgomery County Office of Fire and Explosives Investigation conducted an investigation and located two incendiary bombs, commonly known as Molotov cocktails. One of the Molotov cocktails was on the balcony of the apartment, and damaged the wooden decking and children’s bikes. The second Molotov cocktail was on the ground below. The liquids within the bottles as well as wick material found in the debris field were submitted to the ATF Forensic Science Laboratory, which later confirmed the presence of gasoline. The ATF National Laboratory Center also conducted DNA analysis of the bottles and found that Wilder was a possible contributor to the DNA profile found on one of the Molotov cocktails.
According to trial testimony, the individual who leased the apartment had recently attempted to end a relationship with Wilder, but Wilder continued to contact the woman. The evidence showed that on April 15, 2017, Wilder had texted and called the woman repeatedly, with the last text occurring at 9:13 p.m. Cell location data established that Wilder’s cell phone was located in the area of the apartment complex at around the time of the fire.
Witnesses testified that on April 18, 2017, law enforcement attempted to stop Wilder’s vehicle, but Wilder rammed a police vehicle and ran away. Montgomery County Police officers pursued and arrested Wilder.
Wilder had a previous felony conviction and was therefore prohibited from possessing destructive devices.
Wilder faces a maximum of 10 in prison for being a felon in possession of a destructive device; a mandatory minimum sentence of five years and a maximum of 20 years in prison for arson affecting interstate commerce; and a mandatory minimum sentence of 30 years and a maximum of life in prison for use and carry of a destructive device during and in relation to a crime of violence and possession of a destructive device in furtherance of a crime of violence. U.S. District Judge George J. Hazel has scheduled sentencing on December 6, 2018 at 10:00 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF, the Montgomery County Police Department, the Montgomery County Fire and Rescue Service, and the Federal Bureau of Investigation Cellular Analysis Survey Team (CAST) for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer Sykes and Nicolas Mitchell, who prosecuted the case.
Ripley Man and Convicted Felon Guilty of Illegal Possession of a FirearmRead the Press Release
Memphis, TN – Following a two-day jury trial in federal court, a Ripley, Tennessee man has been found guilty as a felon in possession of a firearm. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty verdict today.
According to evidence presented at trial, in January 2017, the 25th Judicial Drug Task Force initiated an investigation into the illegal drug trafficking of Jason Nixon, 36. The investigation revealed that Nixon was selling marijuana out of his residence. On January 27, 2017, the 25th Judicial Drug Task Force and members of the Ripley Police Department and Lauderdale County Sheriff’s Department executed a search warrant at Nixon’s residence. A loaded Clerke .32 caliber revolver, multiple bags of marijuana, a digital scale and several rounds of ammunition were recovered from the property.
U.S. Attorney Dunavant said, "This defendant has devoted his entire adult life to criminal activity, and his prior conviction history demonstrates his disrespect for the law and danger to the Lauderdale County community. As a result of his prior criminal behavior, Nixon may now qualify as an armed career criminal subject to a mandatory minimum sentence of 15 years in federal custody. The people of Lauderdale County and West Tennessee are safer because of this federal conviction that will remove him from our streets."
This case was investigated by the 25th Judicial Drug Task Force, Ripley Police Department, Lauderdale County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys David Biggers and Raney Irwin are prosecuting this case on the government’s behalf.
Repeat Offender Sentenced to 15 Years for Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger yesterday sentenced a repeat offender to 15 years in prison for receipt of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Nathaniel Guru Thompson, 31, of Asheville, was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
“Thompson is the type of criminal that needs to be removed from society and put into a prison cell, where he can no longer harm children,” said U.S. Attorney Murray. “There is a misconception among some that viewing child pornography is a lesser offense. Let me set the record straight: viewing, sharing, or receiving images that depict children being sexually abused is a crime that is just as serious and heinous as of those who perpetrate the depicted sexual abuse on the children. I commend the Asheville Police Department, the North Carolina Internet Crimes Against Children (ICAC) Task Force, and the U.S. Probation Office for joining us in our efforts to protect the most vulnerable members of our society and bring perpetrators like Thompson to justice.”
According to court documents and information introduced at the sentencing hearing, Thompson was convicted in 2011 in the Western District of North Carolina of possession of child pornography. As part of his sentence, the Court ordered Thompson to serve a lifetime of federal supervised release. On July 10, 2017, law enforcement located at Thompson’s residence an internet enabled cell phone, which was in violation of the terms of his supervised release. After conducting a full forensic analysis of Thompson’s cell phone and a removable storage card, law enforcement determined that Thompson possessed more than 1,380 images of child pornography, and over 72 child pornography videos. Court records show that the images and videos, which Thompson had intentionally downloaded between May 1, and July 10, 2017, depicted infants, prepubescent children, and sadistic and masochistic conduct. Court records further show that Thompson had regularly viewed the images and the videos, as recently as July 10, 2017, which is the date the device was seized by law enforcement.
Thompson pleaded guilty to receipt of child pornography in March 2018. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The Asheville Police Department conducted the investigation. In making today’s announcement U.S. Attorney Murray thanks the U.S. Probation Office and the North Carolina Internet Crimes Against Children (ICAC) Task Force for their invaluable assistance with the case. The U.S. Attorney’s Office in Asheville was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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 more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Previously Convicted Former State Representative Sentenced for Obstruction of JusticeRead the Press Release
BOSTON – A former Dartmouth Selectman was sentenced today in federal court in Boston in connection with concealing approximately $2.5 million in cash from the U.S. District Court following his sentencing proceedings in 2015.
John George Jr., 71, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to five months in prison, one year of supervised release and ordered to forfeit $250,000. In March 2018, George pleaded guilty to one count of obstruction of justice.
In July 2015, George was sentenced to 70 months in prison and ordered to pay restitution of $688,772 and forfeiture of $1.38 million for embezzling hundreds of thousands of dollars from the Southeastern Regional Transit Authority (SRTA). George was required to disclose his financial status to the Court, and reported that he only possessed approximately $28,000 in cash. However, in December 2015 and January 2016, federal law enforcement recovered more than $2.5 million in cash, as well as Rolex watches and jewelry that George had concealed in safe deposit boxes in New Bedford and Fairhaven.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Special Agent in Charge of the Department of Transportation, Office of the Inspector General, Office of Investigations; Kristina O’Connell, Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Dustin Chao of Lelling’s Public Corruption Unit prosecuted the case.
Pasadena Bank Robber Sentenced to 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Steven Murn, age 50, of Pasadena, Maryland, today to 12 years in prison, followed by five years of supervised release, for armed bank robbery and attempted bank robbery. Judge Russell also ordered Murn to pay restitution of $1,210.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Anne Arundel County Police Chief Tim Altomare.
According to information presented to the court at his plea and sentencing hearings, on August 19, 2016, Murn attempted to rob a bank in the 3200 block of Pasadena, Maryland. Murn entered the bank wearing a wig and a baseball cap and carrying a bag. He went to the check-writing station in the lobby, then to a teller station. The teller asked Murn to remove his hat and he complied. Murn then placed his bag on the teller counter and said “C’mon!” The teller said, “No.” Murn grabbed the bag, left the bank, and ran away.
On August 29, 2016, Murn robbed a bank in the 8100 block of Jumpers Hole Road in Pasadena. Murn entered the bank wearing an orange safety vest over a tee shirt and a hard hat with a towel draped beneath it, and carrying a bag. After writing a note on a deposit slip that read, “Bomb all money now please,” Murn gave the teller the note, placed a fake bomb on the counter in front of a teller station, and demanded money. The teller opened the cash drawer and Murn reached over the counter and removed bundles of cash. Murn then left the bank and drove away in his car, which was parked nearby. He was arrested the next day in Franklin County, Pennsylvania.
According to information presented to the Court, Murn assaulted a Pennsylvania State Trooper at the time of his arrest in Chambersburg, Pennsylvania, and threatened to kill the officers. Murn was later taken to the hospital, complaining of chest pain, where on September 3, 2016, he attempted to disarm an officer by grabbing his pistol and holster from the officer’s duty belt. The officer struggled with Murn to recover the weapon. On that same date, while being transported to the Franklin County Jail, Murn kicked out a window of the van, shattering the glass, and attempted to wriggle out of the van through the window. Murn was placed back in the van and transported to jail.
Judge Russell ordered that Murn’s federal sentence run concurrent to the remaining sentence Murn is serving in Pennsylvania for attempted escape, disarming an officer, and making threats to the police.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI and the Anne Arundel County Police Department for their work in the investigation and thanked the Pennsylvania State Police for its assistance. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
Ohio Resident Sentenced to 15 Months in Federal Prison for Role in Business E-Mail Compromise SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OLUMUYIWA YAHTRIP ADEJUMO, also known as “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade” and “Hadey,” 33, of Toledo, Ohio, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 15 months of imprisonment, followed by three years of supervised release, for his role in a business e-mail compromise scheme.
According to court documents and statements made in court, ADEJUMO, his co-conspirator Adeyemi Odufuye and others targeted CEOs, CFOs, controllers and others at U.S. businesses, including businesses in Connecticut, using sophisticated cyber techniques to defraud the businesses. ADEJUMO and his co-conspirators sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. ADEJUMO and his co-conspirators sent the e-mails with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.
The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
In pleading guilty, ADEJUMO admitted that his participation in the scheme caused total losses of more than $100,000 to at least three organizational victims.
Chief Judge Hall ordered ADEJUMO to pay restitution in the amount of $90,930.
ADEJUMO has been detained since his arrest on November 16, 2017. On April 20, 2018, he pleaded guilty to one count of conspiracy to commit wire fraud.
ADEJUMO, a citizen of Nigeria and lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
Odufuye, also known as “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz,” and “Jefe,” is a citizen of Nigeria. On December 19, 2016, he was arrested in the United Kingdom. Odufuye was extradited from the U.K. to the U.S. and, on January 3, 2018, pleaded guilty to one count of wire fraud and one count of aggravated identity theft. He is detained while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the U.S. Attorney’s Office for the Northern District of Ohio and the FBI’s Cleveland Field Office for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Nine Indicted for Heroin Conspiracy in Greene CountyRead the Press Release
SPRINGFIELD, Mo. – Eight men and one woman were indicted by a federal grand jury this week for their roles in a conspiracy to distribute heroin in Greene County, Mo.
Dangelo P. Moore, 30, of Willard, Mo., James D. Elbert, 36, Jerry R. Blue, 29, Keilan A. Murray, 25, and Presley A. Pike, 26, all of Springfield, Mo., Michael K. Johnson, Jr., 32, of Ozark, Mo., Rodriguez R. Bradley, 35, of Fordland, Mo., Kevin D. Paine, 28, of Cahokia, Ill., and Kewan J. Rogers, 35, of St. Louis, Mo., were charged in a 22-count superseding indictment returned by a federal grand jury in Springfield. This week’s superseding indictment replaces the original indictment returned under seal on July 11, 2018, and adds Pike as a co-defendant.
This week’s indictment alleges that all nine of the defendants participated in a conspiracy to distribute at least 100 grams of heroin in Greene County from Oct. 2, 2015, to Nov. 13, 2017.
Elbert is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of firearms and ammunition. Elbert allegedly was in possession of a Smith & Wesson .40-caliber semi-automatic pistol and an HS Products (Springfield Armory) .45-caliber semi-automatic pistol on April 24, 2017.
Paine is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Paine allegedly was in possession of a Glock .40-caliber semi-automatic pistol on Jan. 5, 2017.
In addition to the drug-trafficking conspiracy, the remaining counts of the indictment allege specific instances in which various defendants distributed heroin.
The indictment also contains forfeiture allegations, which would require Moore, Elbert and Bradley to forfeit to the government a total of $34,332 and the various firearms and ammunition that were seized by law enforcement officers during the course of the investigation.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.
New York Attorney Sentenced to 18 Months’ Imprisonment for Securities Fraud and Wire Fraud Conspiracies, and Ordered to Pay More Than $10 Million in RestitutionRead the Press Release
Earlier today, in federal court in Brooklyn, Evan Greebel, a former partner at the New York office of Katten Muchin Rosenman LLP who served as outside counsel to Retrophin, Inc., a biopharmaceutical company, was sentenced by Judge Kiyo A. Matsumoto to 18 months’ imprisonment for conspiracy to commit wire fraud and conspiracy to commit securities fraud, to be followed by three years’ supervised release. The Court also ordered Greebel to pay $116,462.03 in forfeiture and $10,447,979 in restitution. Greebel was convicted by a federal jury in December 2017, following an 11-week trial, for his role in two interrelated fraud schemes with Retrophin CEO Martin Shkreli and others, in which Greebel, Shkreli and others stole millions of dollars in cash and stock from Retrophin and manipulated the price and trading volume of Retrophin stock.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence reinforces our message that attorneys who facilitate crimes will be held accountable for their actions,” stated United States Attorney Donoghue. “Evan Greebel leveraged his legal training and the trust placed in him by Retrophin’s Board of Directors to commit serious crimes, including the theft of millions of dollars in cash and stock from the very company he was hired to represent. In doing so, Greebel broke the law and violated the ethical duties he owed to his client.” Mr. Donoghue expressed his thanks to the United States Securities and Exchange Commission (SEC), New York Regional Office, and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG), for their significant cooperation and assistance in this case.
“As an attorney well-versed in the law, Greebel was expected to abide by it – not violate it,” stated FBI Assistant Director-in-Charge Sweeney. “Instead he used his professional expertise to prepare illegitimate agreements, allowing him and others to carry out their illegal activity. His sentencing today serves as a reminder to others that there are consequences for this type of behavior.”
Between 2011 and 2014, Greebel conspired with Shkreli and others to misappropriate Retrophin’s assets in order to pay off defrauded investors in Shkreli’s hedge funds, MSMB Capital Management LP (MSMB Capital) and MSMB Healthcare Management LP (MSMB Healthcare). Specifically, Greebel negotiated and prepared so-called settlement agreements with various of the defrauded investors, causing Retrophin to reimburse them more than $2 million in cash and stock. Greebel also arranged for other defrauded investors to enter into sham consulting agreements with Retrophin as a means to settle liabilities owed by Shkreli and the hedge funds.
In addition, between 2012 and 2014, Greebel and Shkreli schemed to defraud investors in Retrophin by attempting to control illegally the price and trading volume of Retrophin’s stock. As part of the scheme, they concealed Shkreli’s beneficial ownership and control of most of Retrophin’s free-trading shares, recruited associates of Shkreli to be nominee holders of those shares and prevented the nominees from selling the shares. Some of the shares were used to settle liabilities owed by the MSMB hedge funds and Shkreli.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith, David Pitluck and David K. Kessler are in charge of the prosecution.
The Defendant:
EVAN GREEBEL
Age: 45
Scarsdale, New YorkE.D.N.Y. Docket No. 15-CR-637 (KAM)
Montana Woman Sentenced for Aiding and Abetting Receipt of Stolen Mail MatterRead the Press Release
United States Attorney Ron Parsons announced that a Missoula, Montana, woman convicted of Aiding and Abetting Receipt of Stolen Mail Matter was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Cydrea Nicholes, age 26, was sentenced on August 15, 2018, to time served, 2 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and $875 in restitution.
Nicholes was indicted by a federal grand jury in September 2017. The charge related to Nicholes and her co-defendant stealing mail from mailboxes in Montana. On August 12, 2017, they were stopped by law enforcement in Spearfish, and a search of the vehicle revealed multiple cell phones, stolen mail matter, check printing paper, and multiple identification cards belonging to Nicholes and her co-defendant.
This case was investigated by the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, the Department of Homeland Security, Missoula, Montana, Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Postal Service. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Minnesota Attorney Pleads Guilty to Federal Charges in Connection with Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica MacDonald today announced the guilty plea of PAUL R. HANSMEIER, 37, for orchestrating a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. HANSMEIER pleaded guilty to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. On March 6, 2017, HANSMEIER’S co-defendant JOHN L. STEELE pleaded guilty for his role in the scheme.
“This scheme, orchestrated by licensed attorneys, caused widespread damage throughout the United States and wasted judicial resources by causing litigation that should never have happened,” said U.S. Attorney MacDonald. “The defendants’ actions brought embarrassment to the legal profession and amounted to a shameful abuse of their law licenses, only to satisfy their greed. This office is and will always be dedicated to bringing such disgraceful conduct to the bar of justice.”
“Paul Hansmeier’s guilty plea today closes a sad chapter in the career of an attorney who abused his license to practice law and disgraced the bar,” said Special Agent in Charge of the Minneapolis Division Jill Sanborn. “Hansmeier’s role in a brazen multi-million dollar fraud scheme exploited victims by misusing his position of trust as an officer of the court. The FBI will continue to work closely with our law enforcement partners to detect crimes such as this and bring the perpetrators to justice.”
“The role of IRS Criminal Investigation becomes even more important in financial cases, including extortion and money laundering schemes, because of the complex financial transactions that take time to unravel,” said Gabriel Grchan, Acting Special Agent in Charge, St. Paul Field Office. “IRS Special Agents are skilled at investigating all types of financial crimes and today's guilty plea of Paul Hansmeier is a reminder that IRS Criminal Investigation is committed to following the money trail.”
According to his guilty plea and documents filed in court, between 2010 and 2014, HANSMEIER and STEELE, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites. HANSMEIER admitted in court today that he and STEELE created a series of sham entities, which and STEELE controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. The defendants then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, HANSMEIER and STEELE gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
In November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, HANSMEIER and STEELE admitted that they created and used Prenda Law, among other law firms, to pursue their fraudulent claims and proceeds of the scheme. HANSMEIER acknowledged in court today that he and STEELE exerted de facto control over Prenda Law throughout the scheme.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, HANSMEIER and STEELE recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants” who were sued in exchange for HANSMEIER and STEELE waiving their settlement fees while pursuing claims against their supposed “co-conspirators.” In court today, HANSMEIER admitted that the allegations of “hacking” in these complaints were made up.
In total, HANSMEIER and STEELE obtained approximately $6 million from the fraudulent copyright lawsuits.
This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS. Assistant U.S. Attorneys Benjamin Langner and David Maclaughlin of the District of Minnesota and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Defendant Information:
PAUL R. HANSMEIER, 37
Woodbury, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of Nevada City-Based Conspiracy Sentenced to 10 Years in Prison for Multimillion Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — George B. Larsen, 56, formerly of San Rafael, was sentenced to 10 years and one month in prison and ordered to pay $1,759,100 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.
On December 6, 2017, Larsen was convicted following trial on one count of conspiracy and four counts of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Larsen was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators indicated to the homeowners these entities would offer protection against the banks.
Larsen ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home, with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
One co-defendant, Larry Todt, formerly of Malibu, was convicted at trial along with Larsen. Three other co-defendants have previously entered guilty pleas: Remus A. Kirkpatrick, formerly of Oceanside, Michael Romano, of Benicia, and Laura Pezzi, of Roseville. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.
Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations: both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Maryville Detective Honored for Community ServiceRead the Press Release
KANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, announced today that Detective Sgt. Ryan Glidden of the Maryville Department of Public Safety has received the 2018 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Glidden was honored on Thursday, Aug. 16, 2018, during the 16th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Glidden has 21 years of law experience, including 13 years with the Maryville Department of Public Safety.
Following an event earlier in his career, Glidden recognized the need for equipment and training so law enforcement officers could assist victims of gunshot wounds and severe trauma to stop bleeding. He wanted to equip every officer in his agency with a “go-bag” trauma kit. Glidden collaborated with a local medic to conduct the training and began the ambitious project of raising money to pay for the kits, as his agency could not afford to purchase them. Through hard work and his leadership, $24,000 was raised to fully fund the project for his agency.
Realizing that the local sheriff’s office faced the same financial restraints as his own agency, Glidden directed his attention to seeking funds and assisted in raising nearly $18,000 to fully equip that agency with trauma kits.
Not done giving yet, Glidden realized that the regional dive team that assists agencies in multiple states needed assistance in securing additional equipment. He set out to raise over $21,000 to purchase a much-needed rescue boat with a motor capable of transporting a six-person dive crew as well as protective equipment. This equipment provides greater capability of providing the necessary lifesaving operations, which would not have been possible without this funding.
In light of the increase in school shootings, Glidden reached out to public and private schools, not only in his city but across the entire county, inquiring if trauma kits would be of value. One administrator asked him the cost for these kits and he responded with his own question: “What would be the cost if we needed them and didn’t have them?” With overwhelming support from parents, teachers, administrators and the general public, Glidden began raising funds and secured 450 trauma kits, one for each classroom in the county, at a cost of more than $28,000. He also organized in-service training with a trained paramedic to provide hands-on training with staff in each school.
Glidden spends a lot of his free time volunteering as a Big Brother for Big Brothers Big Sisters of Nodaway County. This is something he takes very seriously. He has a unique connection not only to his little brother but also to his little brother’s mother, helping her navigate life, especially when things aren’t going well.
Glidden was nominated by two different individuals from two different law enforcement agencies. Among the nominations and 10 letters of support for Glidden, it was written, “When our program has a need, Ryan is always one of the first people to step up when asked. He leads by example. His kindness to others and calm nature make him an excellent mentor, friend and law enforcement officer. Beyond what he brings to our organization, he is an endearing individual with an obvious passion for our community and a drive to help others.”
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847. He was appointed the first sheriff of Sullivan County, Mo., in 1845. He was in office a little over two years, but he was known to be an honorable, hardworking man intent on protecting the residents of his community. Sheriff Morelock was shot and killed during a court ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Maryland Man Sentenced to 15 Years in Prison for Shooting That Killed One Man, Wounded AnotherRead the Press Release
WASHINGTON – Demarius Jackson, 25, of Hyattsville, Md., was sentenced today to 15 years in prison on charges stemming from a shooting in Northwest Washington last year that killed one man and injured another, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jackson pled guilty in May 2018, in the Superior Court of the District of Columbia, to charges of voluntary manslaughter while armed and assault with a dangerous weapon. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence between 13 and 16 years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced Jackson accordingly. Following his prison term, Jackson will be placed on five years of supervised release.
According to a factual proffer submitted at the plea hearing, the shooting took place at approximately 2:50 a.m. on Saturday, July 8, 2017. The shooting, in the 3500 block of Water Street NW, in the Georgetown area, followed a verbal altercation between the victims and the occupants of a vehicle. The vehicle was operated by an associate of Jackson’s. The interaction continued for about five minutes and concluded when Jackson walked up to one victim, Kennedy Amaya-Olivares, and shot him three times. He then chased after the other victim, shooting at him multiple times and striking him twice in the torso. Mr. Amaya-Olivares, 19, was shot once in the back of the head and once in the chest. He was pronounced dead a short time later.
Jackson was arrested on Sept. 12, 2017, in Morgantown, W. Va., and extradited to the District of Columbia. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lornce Applewhite, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Lindsey Merikas, who investigated and prosecuted the matter.
Man Sentenced to Prison for Sex Trafficking a Minor by ForceRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to 18 years in prison for forcibly sex trafficking a minor.
According to court documents, Justin Shayne Robinson, 27, lured the 16-year-old victim to a motel in northern Virginia. Once the minor victim arrived, Robinson directed sexualized photos to be taken of the her, and created and posted online advertisements for commercial sex acts with the minor. Robinson and his co-conspirator, Markus Jakeem Plummer, 27, of Woodbridge, then trafficked the minor over a period of roughly a week. Robinson and Plummer took all the proceeds of the minor’s commercial sex acts for their own benefit. Robinson and Plummer used force and surveillance to ensure that the minor continued to see clients and was unable to escape the motel. Robinson used violence to force the victim to continue working for him, including choking her and leaving medically documented bruising on her leg and neck.
Co-Conspirator Markus Plummer is scheduled for sentencing on September 28.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), 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 more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI Agents and detectives from the Fairfax County Police, Prince William County Police, Loudoun County Sheriff’s Office, Fauquier County Sheriff’s Office, Leesburg Police Department, Alexandria City Police, Arlington County Police, Washington Metropolitan Police Department, USMS, and other federal OIGs.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Whitney Russell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-310.
Man Sentenced to More than 17 Years in Prison for Traveling to the Dominican Republic to Engage in Sex Acts with MinorsRead the Press Release
Theodore William Symonds, 51, was sentenced yesterday by United States District Judge Robert N. Scola to more than 17 years in prison and 30 years of supervised release, after previously pleading guilty to traveling to the Dominican Republic for the purpose of engaging in illicit sexual conduct with minors.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Symonds, a U.S. citizen, frequently traveled between the United States and the Dominican Republic, including on March 20, 2017. Symonds was arrested on March 23, 2017, by local Dominican authorities for crimes related to the sexual abuse of children. ICE-HSI began investigating him shortly thereafter and uncovered proof of Symonds’ sexual abuse of children, both in person and using the internet.
U.S. Attorney Benjamin Greenberg said, “The U.S. Attorney’s Office and our law enforcement partners stand united against child exploitation and abuse. There is no immunity for these heinous crimes, whether committed at home or abroad. Any individual who victimizes the most vulnerable members of society, our children, can look to today’s sentencing to see there will be severe consequences within the U.S. federal criminal justice system.”
“This sentence should send a powerful message to child predators who believe that they can evade law enforcement by using international travel to engage in this type of reprehensible behavior,” said Mark Selby, Special Agent in Charge of HSI Miami. “Sexual exploitation of children is a despicable crime that will never be tolerated. HSI will continue to work closely with its law enforcement partners around the world so that sexual predators are always brought to justice.”
Mr. Greenberg commends the investigative efforts of ICE-HSI in support of this matter. Mr. Greenberg also thanked the local prosecutors and law enforcement officers in Puerto Plata, Dominican Republic, as well as members of the HSI Dominican Republic Transnational Criminal Investigative Unit (TCIU), for their assistance. This case was prosecuted by Assistant United States Attorneys Jonathan Kobrinski and Daniel Cervantes.
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.
Man Sentenced for Defrauding Elderly Victims in Magazine ScamRead the Press Release
ALEXANDRIA, Va. – An Arizona man was sentenced today to 14 years in prison for his role in a conspiracy that defrauded elderly victims, including several Virginia residents, out of over $640,000.
“Oliver preyed upon approximately 350 individuals, including a 94-year-old resident of Alexandria and an 84-year-old resident of Painter who suffered from Alzheimer’s,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Not content to simply deceive his victims, Oliver would badger and threaten his victims to extort even more money from them. This conduct is depraved in its own way and hopefully there will be some relief to the victims and their loved ones knowing that Oliver won’t be in a position to harm anyone else.”
According to court documents, Raheem Oliver, 38, operated a magazine subscription renewal fraud scam that began when he or one of his associates contacted magazine subscribers and offered to renew their subscriptions over the phone. When a subscriber agreed, Oliver would double or triple-bill their accounts, without ever actually renewing their subscriptions as promised. Throughout this process, Oliver also identified victims who were particularly vulnerable to such a scam, primarily including elderly individuals. Oliver targeted those vulnerable victims with threatening phone calls, falsely representing that the victims needed to pay thousands of dollars at a time for purported renewal fees, past-due balances, fines, attorneys’ fees and other legal fees, and court costs. He threatened victims with legal action, often including arrest, if they did not make the payments as requested, and thereby convinced victims to mail checks and wire money to him and his associates in Arizona.
“Protecting the elderly from criminal fraud schemes is a priority for the Postal Inspection Service,” said Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “While today’s sentence should serve as a strong deterrent for those seeking to threaten and steal from these vulnerable individuals, Postal Inspectors will continue to pursue those who misuse the mail to prey on their victims.”
Earlier this year, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than a 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Samantha Bateman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-9.
Long Island Convenience Store Owner Sentenced to Prison for Selling K2 Drug from His Convenience StoreRead the Press Release
Earlier today, in federal court in Central Islip, Osman Ak was sentenced by United States District Judge Denis R. Hurley to a year and one day in prison, to be followed by three years’ supervised release, for selling the illegal drug K2, also known as “spice” and synthetic marijuana, from his convenience store in Medford, New York. Ak pleaded guilty in November 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and George Beach II, Superintendent, New York State Police (NYSP), announced the sentence.
“Osman Ak is going from his convenience store to prison for selling dangerous drugs over the counter, placing the community at risk to the dangers associated with this synthetic hallucinogen and its unpredictable side effects,” stated United States Attorney Donoghue. “This Office is working tirelessly with our law enforcement partners to prosecute drug traffickers and dealers at all levels and hold them responsible for their crimes.”
“Ingesting K2 is like playing Russian roulette, and Osman AK was the person responsible for enticing the young people of Long Island to play,” stated DEA Special Agent-in-Charge Hunt. “Today AK is being held accountable for peddling this extremely dangerous and potentially life threatening synthetic cannabinoid into our communities. I commend the agents and officers assigned to our DEA Long Island District Office, our partners at the New York State Police, and the prosecution team at the Eastern District of New York for their hard work on this investigation.”
"As we have seen time and again, synthetic drugs endanger the health of users and have no place being sold in our neighborhoods,” stated NYSP Superintendent Beach. “This case sends a strong message that we will not tolerate the sale of synthetic drugs anywhere in New York State, and those who sell these illegal substances at the detriment of our communities will be held fully accountable.”
The defendant owned and operated the convenience store, Eyup Gas & Convenience Store, Inc. d/b/a US Food Mart in Medford where, between April 2017 and May 29, 2017, he sold the illegal drugs during business hours. According to court filings, the K2 was packaged in glitter bags bearing cartoon characters and brand names such as “OMG,” “AK47,” “Joker” and “Hayze Peachy King.” The drugs were kept in cigar boxes hidden behind the cash register. Store videotapes seized by law enforcement for the relevant time period showed bags of K2 being sold to customers, most of whom appeared to be young adults.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
OSMAN AK
Age: 45
Holbrook, New YorkE.D.N.Y. Docket No. 17-CR-527 (DRH)
Local Insurance Agent Convicted of FraudRead the Press Release
Memphis, TN – Following a four-day jury trial in federal court, a Memphis man has been convicted on two counts of wire fraud. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the verdict today.
According to information presented in court, Manzur Mazumder, 49, an insurance agent, started a hedge fund business which defrauded several individuals of their retirement savings. Between 2014 and 2017, Mazumder obtained a total of $360,000 from "M.T.," a resident of Hawaii, "J.T.," a resident of Missouri, and "A.J.," a resident of Memphis.
U.S. Attorney D. Michael Dunavant said, "Fraudulent schemes that steal hard-earned retirement savings from innocent victims represent the very worst betrayals of trust in our financial markets. We are pleased that justice has been achieved on behalf of the victims, and we commend the FBI for their outstanding investigation in this disturbing case.
Mazumder used a large portion of the investors’ funds to pay for personal expenses, including living and travel expenses, a down payment on a condominium, loan payments, debit card charges and overdrafts in several bank accounts. Mazumder day-traded the rest of the investors’ funds in options contracts, resulting in large losses.
"Today’s conviction shows that those who prey on innocent investors and violate the law in order to line their own pockets will be identified, investigated, prosecuted and held accountable for their crimes," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This type of crime degrades the trust investors place in their investment advisors and the financial markets, and the FBI remains steadfast in our commitment to pursue these type of cases to protect the public from such fraud."
This case was investigated by the FBI.
Assistant U.S. Attorneys Dean DeCandia and David Pritchard are prosecuting this case on the government’s behalf.
Las Vegas Resident Sentenced for Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who obtained passports from citizens of foreign countries then filed false tax returns using their identities was sentenced to 366 days in prison and three years’ supervised release, announced U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Tara Sullivan of the IRS-Criminal Investigation.
Edwin Israel Bravo-Donis, 32, previously pleaded guilty to one count of submitting a false, fictitious, and fraudulent claim to the Government. United States District Judge Richard F. Boulware II presided over yesterday’s sentencing hearing.
According to admissions made in the plea agreement, between January 1, 2015, and October 24, 2017, Bravo-Donis obtained passports from citizens of foreign countries, such as Guatemala and El Salvador. Even though these foreign citizens did not live or work in the United States, Bravo-Donis used their identities to file fabricated tax returns with the Internal Revenue Service that falsely claimed they were each entitled to thousands of dollars in tax refunds. As part of the scheme, Bravo-Donis assisted in or participated in the filing of at least 228 false tax returns in the names of 67 foreign citizens that received more than $500,000 in refunds from the IRS.
The case was investigated by the IRS and the Department of Homeland Security. Assistant U.S. Attorney Tony Lopez prosecuted the case.
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Laguna Pueblo Man Sentenced to Seven Years for Conviction on Federal Conspiracy and Commercial Robbery ChargesRead the Press Release
ALBUQUERQUE – Cruz Abeita, 28, an enrolled member of the Laguna Pueblo who resides in San Felipe, N.M., was sentenced today in federal court in Santa Fe, N.M., to 84 months of imprisonment for his conviction on a conspiracy charge and for violating the Hobbs Act. Abeita will be on supervised release for three years after completing his prison sentence. Abeita’s conviction arises out of the robbery of the Dancing Eagle Travel Center in Cibola County, N.M., on Dec. 30, 2016,
Abeita was arrested in Feb. 2017, on a criminal complaint charging him with armed robbery and brandishing a firearm during a crime of violence on Dec. 30, 2016, on the Laguna Pueblo in Cibola County. According to the complaint, Abeita and another individual entered the Casa Blanca Travel Center on the Laguna Pueblo where they threatened the cashier with what appeared to be a handgun and stole money from the cash register.
On Oct. 3, 2017, Abeita pled guilty to a felony information charging him with conspiracy and violating the Hobbs Act by robbing a business engaged in interstate commerce. In entering the guilty plea, Abeita admitted that on Dec. 30, 2016, he entered the Dancing Eagle Travel Center in Cibola County, with an associate, where they demanded money from the cashier and threatened the cashier with a replica pistol that appeared to be a real firearm.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, and the Laguna Police Department. Assistant U.S. Attorney Michael D. Murphy prosecuted the case.
Krebs Man Found Guilty of Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jared Robert Faulkner, age 30, of Krebs, Oklahoma, was found guilty by a federal jury of Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The jury trial began with testimony on Thursday, August 16, 2018 and concluded on Friday, August 17, 2018 with the guilty verdict.
Evidence at trial proved that on or about February 10, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce. The verdict was the result of an investigation coordinated as part of the Project Safe Neighborhoods effort in the Eastern District of Oklahoma to reduce gun and related drug crime. Project Safe Neighborhoods is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the McAlester Police Department, the Krebs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The evidence presented to the jury by the U.S Attorney’s Office was the result of work by multiple agencies – the McAlester and Krebs Police Departments and the ATF – working together. The investigation began when a person called police asking that they respond to a disturbance Jared Faulkner was involved in. When they arrived officers discovered that Faulkner possessed a firearm which was unlawful for him to have because he was a convicted felon,” said United States Attorney Brian J. Kuester. “I want to thank the jurors for giving their time for the very important service they gave to the community. Jury duty is sometimes looked upon as an inconvenience – something that should be avoided if at all possible. While it may require some sacrifice by the jurors, their service is crucial to our legal system.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Dean Burris represented the United States.
KC, Independence Men Plead Guilty to Drug Trafficking That Led to Kidnapping, TortureRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and an Independence, Mo., man have pleaded guilty in federal court to their roles in a drug-trafficking conspiracy that involved the kidnapping and torture of an Independence, Mo., man.
Gerald L. Holmes, also known as “Jerry” or “Joker,” 26, of Kansas City, pleaded guilty today before U.S. Chief District Judge Greg Kays to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime.
Jeremy R. Bond, 40, of Independence, pleaded guilty on Thursday, Aug. 17, 2018, to his role in the drug-trafficking conspiracy.
Co-defendant Randal G. Holmes, also known as “Peckerwood” or “Wood,” 54, the father of Gerald Holmes, pleaded guilty on July 10, 2018 to the same charges as his son – one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime.
According to today’s plea agreement, co-conspirators purchased at least 120 pounds of marijuana from a source in Colorado, for which they made more than a dozen trips between Colorado and Kansas City. Gerald Holmes paid their source between $1,600 to $2,400 per pound, depending on the type and quality of marijuana available.
During the conspiracy, which lasted from May 1 to Sept. 13, 2016, Bond invested $10,000 into the marijuana operation. In return, he received $1,000 a week as interest and free marijuana until the entire principal investment was repaid in full. This investment allowed Gerald Holmes and a co-conspirator, identified in court documents as “C.H.” (who had made four trips to Colorado with Gerald Holmes), to purchase greater quantities of marijuana per trip. Once it reached the greater Kansas City metropolitan area, the marijuana was then resold by Gerald Holmes and C.H.
On Sept. 12, 2016, Gerald and Randal Holmes agreed to kidnap C.H. because he stole money that was intended for the purchase of marijuana.
Holmes arrived at the Independence, Mo., residence of the victim’s father, identified as “W.H.,” on Sept. 12, 2016. During their conversation, Gerald Holmes removed a firearm from his waistband and placed it on a table in front of W.H. Conspirators told W.H. to call C.H. and tell him he was being held at gunpoint and that C.H. needed to come to the residence right away. When C.H. arrived at the residence, Randal Holmes pointed a firearm at him and told him to get into his vehicle. While in the vehicle, Gerald Holmes struck, punched and choked C.H. as Randal Holmes drove away.
They took C.H. to Randal Holmes’s residence, where they were met by a third co-conspirator. C.H. was taken to the basement, where Gerald Holmes continued to assault him with fists, a hammer and tin snips/clippers. During the assault, Randal Holmes repeatedly demanded that C.H. disclose where the duffle bag containing the money was located. Gerald and Randal Holmes left to retrieve the duffle bag while a co-conspirator held C.H. at gunpoint.
Randal Holmes later drove C.H. to a rural residence near Edwards, Mo. As Randal Holmes drove them to the residence, Gerald Holmes continued to strike C.H. with fists and the butt of a firearm. When they arrived at the residence, C.H. was told to call his father and to tell him that he was okay, that he had taken a beating, that he would be home in a couple of days and that he deserved what had happened.
Law enforcement officers were able to trace the telephone call and on Sept. 13, 2016, officers were able to locate C.H. and arrest Gerald and Randal Holmes. Officers observed that C.H. had suffered multiple, visible injuries to his face, head, hands and feet. Officers noted that C.H. had trouble walking, that his face was black and blue, as well as swollen with traces of dried blood. Upon receiving medical treatment, it was determined that C.H. had also suffered a fracture in his left hand.
Officers found a Jimenez Arms 9mm pistol in Randal Holmes’s vehicle and a Hi-Point 9mm pistol in the residence where C.H. had been held. Officers also found an FN Herstal .40-caliber pistol, a Remington .270-caliber rifle, an RG .22-caliber revolver, a Ruger .22-caliber rifle, a Mossberg .20-gauge shotgun, 36.4 grams of marijuana and drug paraphernalia in Gerald Holmes’s residence.
Under the terms of today’s plea agreement, Gerald Holmes is subject to a minimum sentence of 25 years in federal prison without parole, up to a sentence of 35 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Under federal statutes, Bond is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Benton County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s "Safe Prescribing Plan" that seeks to "cut nationwide opioid prescription fills by one-third within three years," the proposal decreases manufacturing quotas for the six most frequently misused opioids for 2019 by an average of ten percent, as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and the current proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs."The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action."
"We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day," said DEA Acting Administrator Uttam Dhillon. "This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine."
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from "legitimate channels of trade" by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
Already, the Justice Department initiative appears to be having an impact in the Southern District of Illinois. The most recent data available for St. Clair County shows a steady decline in opioid prescriptions over the past three years:
At the same time, the district has seen opioid overdoses, and deaths resulting from those overdoses, steadily increasing:
"Opioid addiction is driving the overdose epidemic in this community," U.S. Attorney Steven D. Weinhoeft said, "and reducing access to the most addictive pain killers is an obvious place where we can make an impact. We’re going to continue working on this problem from every angle, including aggressively prosecuting the dealers and the pill mill doctors that perpetuate the cycle of opioid abuse here in the Southern District of Illinois."The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“I share the sentiments of our Attorney General that we face an unprecedented crisis. I am appalled by the tragic loss of so many lives in our state. We are defined as a nation by our response to crisis. As such, I wholeheartedly support and commend the efforts of the Department of Justice and the Drug Enforcement Administration to reduce the availability of opioids available for illegal distribution and abuse. As we struggle to come to grips with the enormity of the opioid threat in our state and in our nation, we recognize that we must employ a ‘whole-of-government approach’ to end this crisis. Therefore, I will continue to commit the full resources of the United States Attorney’s Office for the Eastern District of North Carolina to address this threat and to protect the citizens we serve by vigorous enforcement of our laws.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction Plan in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
United States Attorney Kurt G. Alme voiced support for the proposed rulemaking. Alme stated, “The Safe Prescribing Plan provides valuable support for our efforts across Montana to reduce the amount of unlawfully diverted opioid medications. This plan reduces the production of these highly addictive medications for the third year in a row and will help reduce the amounts of these drugs potentially diverted to drug traffickers. The proposed final rule also promotes greater involvement from the state attorneys general, and I look forward to working with A.G. Fox to identify and stop the unlawful diversion of these drugs.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
ARIZONA - The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average of ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability to consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quota (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
See attached Aggregate Production Quota for Opioids (Table).
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“The OPIOID Task Force -- led by our office in close partnership with federal, local, state, and tribal law enforcement -- has made great strides in prosecuting opioid-related offenses,” stated Elizabeth A. Strange, First Assistant United States Attorney. “We applaud the proposal to further restrict manufacturing and, for our part, we will continue to focus our Task Force on combatting this epidemic throughout Arizona.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Please note: This is the text of the 2019 Aggregate Production Quota Notice of Proposed Rulemaking (NPRM) as signed by the Acting DEA Administrator, but the official version of the NPRM will be published in the Federal Register.
To view the 2019 Aggregate Production Quota NPRM click here.
RELEASE NUMBER: 2018-107_ Opioid (AZ)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
Tampa, FL -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl.
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“The misuse and abuse of opioids in our communities has reached epidemic proportions,” said U.S. Attorney Maria Chapa Lopez. “We intend to work with our partners to use every tool in our arsenal, including prevention, education, and prosecution where necessary, to stem the flow of this devastating scourge.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“The Eastern District of Louisiana (EDLA) will use every investigative technique available to combat the illegal distribution of opioids,” United States Attorney Duane A. Evans said. “The U.S. Drug Enforcement Administration’s proposed manufacturing quotas for certain opioid drugs serve as additional tools to fight the opioid epidemic. The proposal’s implementation should reduce the illegal distribution of certain opioids and is not intended to stymie the legitimate use of those very same drugs. Also, the proposal will not curtail the EDLA’s efforts to prosecute those individuals or entities that choose to illegally distribute opioid drugs.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Jury Convicts Inscription House Man for Violent Conspiracy and CarjackingRead the Press Release
PHOENIX – Today, Shaun Hurley, 39, of Inscription House, Ariz., was convicted by a jury on all charges, including conspiracy, carjacking, robbery, and assault with a dangerous weapon. The jury also found Hurley guilty of three counts of using, brandishing, and discharging a firearm in a crime of violence. Hurley will be sentenced by U.S. District Judge Douglas L. Rayes on Oct. 29, 2018.
In July of 2017, Hurley participated in a conspiracy to steal a truck from the victim. Hurley and his co-conspirator, who previously pleaded guilty in the case, assaulted the victim with a shotgun and stole his truck. All involved are members of the Navajo Nation, and the crimes occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08211-DLR
RELEASE NUMBER: 2018-108_Hurley
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
PHOENIX – Today, Shaun Hurley, 39, of Inscription House, Ariz., was convicted by a jury on all charges, including conspiracy, carjacking, robbery, and assault with a dangerous weapon. The jury also found Hurley guilty of three counts of using, brandishing, and discharging a firearm in a crime of violence. Hurley will be sentenced by U.S. District Judge Douglas L. Rayes on Oct. 29, 2018.
In July of 2017, Hurley participated in a conspiracy to steal a truck from the victim. Hurley and his co-conspirator, who previously pleaded guilty in the case, assaulted the victim with a shotgun and stole his truck. All involved are members of the Navajo Nation, and the crimes occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08211-DLR
RELEASE NUMBER: 2018-108_Hurley
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Guillermo Jose Rodriguez, of Charles Town, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Rodriguez, age 25, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride.” Rodriguez admitted to possessing and distributing cocaine in Jefferson County in January 2018.
Rodriguez faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jackson Man Pleads Guilty to Commercial Driver’s License FraudRead the Press Release
Jackson, Miss. –Benjamin James McGrigg, 43, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to commercial driver’s license fraud, announced U.S. Attorney Mike Hurst and Department of Transportation, Office of Inspector General Regional Special Agent in Charge Marlies Gonzalez.
On March 5, 2018, McGrigg was charged in a five-count federal indictment charging conspiracy and making false and fraudulent material representations.
McGrigg previously worked for a company that provided training and certification to individuals seeking commercial driver’s licenses ("CDLs"). His employment only authorized certification to those that were students of the company. McGrigg provided paperwork to those whom wanted a CDL that were not students of his employer. McGrigg prepared the paperwork representing that the applicant had taken the road skills test, when in fact the applicant had not. This fraudulent paperwork would be given to an individual seeking to obtain a CDL in exchange for payment to McGrigg. Such fraudulent paperwork would be presented by these individuals to the Mississippi Department of Public Safety in order to secure a commercial driver’s license. A review of the commercial drivers’ paperwork in Mississippi showed that some of the applicants could not have achieved the results on the paperwork. Some Commercial Driver’s License holders were interviewed and said they had never taken the test and just paid McGrigg for the paperwork.
"This investigation demonstrates our commitment to protecting the efficacy of DOT’s commercial driver’s license regulations and advancing safety on the roads by ensuring that only qualified individuals obtain CDLs," stated Marlies Gonzalez, Regional Special Agent-In-Charge at U.S. DOT-OIG. "Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent, detect and prosecute fraud schemes which endanger the traveling public."
McGrigg will be sentenced by Judge Jordan on November 16, 2018 at 9:15 a.m. He is facing a maximum penalty of three years imprisonment, a $250,000 fine, and 3 years of supervised release.
The case was investigated by the United States Department of Transportation-Office of Inspector General, the Mississippi Department of Public Safety, the Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
WASHINGTON -- The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“I commend the efforts of the Department of Justice and the Drug Enforcement Administration to reduce Opioid production,” said U.S. Attorney for the District of South Dakota Ron Parsons. “This year, at least twelve drug overdose deaths have occurred in Minnehaha County alone. That is twelve deaths too many. I am hopeful the continued and enhanced efforts to curb the availability of these drugs will result in less overdoses.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
It’s Time to Restore a Valuable Tool to Prosecutors by Fixing the ACCARead the Press Release
Violent crime rates in our country tripled from 1964 to 1980. Robbery tripled, murder doubled, and aggravated assault nearly tripled. This was an alarming time for communities across our nation.
To fight back, Congress passed the Armed Career Criminal Act (ACCA) in 1984, giving federal prosecutors a powerful new tool to deal with the growing rate of violent crime. The ACCA gave prosecutors the ability to take the most violent criminals off the streets by requiring courts to impose a minimum 15-year sentence for felons who were caught with a firearm and had a criminal history of three or more violent felonies.
Federal prosecutors across the county aggressively used this new tool, charging and convicting violent offenders and taking them out of the communities they were terrifying. By 1992, violent crime had begun a historic decline. From 1991 to 2014, violent crime and murder fell by half, aggravated assault fell by 47 percent, and robbery fell by nearly two thirds.
While some debate how much of this dramatic decline was caused by the enactment of the ACCA, the United State Sentencing Guidelines (when their application was mandatory across the country), and a number of other things, there really is no doubt the most significant factor in the decline in the rate of violent crime was due to keeping the most violent criminals off the streets longer.
In 2015—after 30 years on the books—a critically important part of the ACCA was struck down by the Supreme Court in Johnson v. United States as being vague. Lawyers, judges, and scholars can disagree about whether the Court got it right, but one thing not up for reasonable debate is the dire fallout resulting from the Johnson decision.
Invalidating a portion of the ACCA nullified many violent offenders’ sentences, causing their release to be earlier than intended. This resulted in real consequences across the nation and has led directly to an increase in crime. The defendants released as a result of this ruling have already victimized hundreds of persons: 10 defendants were arrested for murder, 14 for kidnapping, 11 for sexual assault, 37 for robbery, 218 for assault, 56 for burglary, 156 for larceny, and 13 for stolen cars. In addition, 53 defendants were re-arrested for drunk driving, 81 defendants went back to drug trafficking, and 166 were re-arrested for other drug charges. Ironically, 100 defendants were also re-arrested for weapons offenses.
In the Eastern District of Tennessee, at least 37 defendants were granted relief in light of the Johnson ruling. Twenty-seven have already been released from prison. Of those, at least 14—more than half—have already had their terms of supervised release revoked or modified due to noncompliance. Three of the 14 referenced above have actually had their supervised release revoked twice and are back in jail today.
Placing career violent criminals back on the street before their time is served should be unacceptable to everyone. More than 1,400 criminals—each convicted of three felonies—have been let out of jail since the Court ruling. So far, more than 600 have been arrested again. On average, these 600 criminals have been arrested, rearrested, or reoffended three times since 2015. A majority of those who have been out of prison for two years have already been arrested again.
While these numbers are shocking, experience tells us they are likely an underrepresentation of the illegal activity committed by these criminals. In the short three years since the ruling by the Supreme Court, released violent felons have already needlessly victimized hundreds of Americans. How many more will be victimized this year, or the next, or the next? As the top federal law enforcement official in our District, I shudder to think we will only see history repeat itself again and again.
Thankfully, the problem is solvable. Congress can fix the problem created by the Johnson decision. Congress has the ability to amend the ACCA so that prosecutors can continue to keep the most violent offenders behind bars and out of our neighborhoods and communities. It’s not for me to say how Congress should go about this fix—I understand that there are many options on the table. But, in my opinion, one more victim is one too many.
J. Douglas Overbey, United States Attorney
Illegal alien admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rogelio Santacruz Godinez, also known as “Tramposo,” also known as “Trampa,” of Axton, Virginia, Citizen of Mexico, has admitted to a drug charge, United States Attorney Bill Powell announced.
Godinez, age 36, pled guilty to one count of “Conspiracy to Distribute Cocaine.” Godinez worked with others to distribute cocaine in Berkeley and Jefferson Counties from August 2017 to February 2018.
Godinez faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the case on behalf of the government. The investigation was led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department. Other agencies that assisted in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Houston Man Ordered to Prison for Attempting to Damage Hermann Park StatueRead the Press Release
HOUSTON – A 26-year-old man has been sentenced to federal prison following his conviction for attempting to maliciously damage property receiving federal financial assistance, announced U.S. Attorney Ryan K. Patrick. Andrew Schneck pleaded guilty March 27, 2018.
Today, U.S. District Judge Ewing Werlein Jr. handed Schneck a 78-month sentence to be immediately followed by three years of supervised release. The court also imposed a $10,000 fine.
On the evening of Aug. 19, 2017, a Houston park ranger observed Schneck kneeling among the bushes in front of the General Dowling Monument located in Hermann Park in Houston. Schneck was holding two small boxes with various items inside to include what appeared to be duct tape and wires. After placing the boxes on the ground per the ranger’s request, Schneck took a drink of clear liquid from a plastic bottle, spit it out and poured the remainder on the ground. The ranger then noticed a timer and wires in the box and notified the Houston Police Department (HPD).
The HPD Bomb Squad tested the clear liquid and a white powdery substance found in a small, black aluminum tube which revealed they were nitroglycerin and hexamethylene triperoxide diamine (HMTD), respectively. HMTD is a high explosive organic compound used as an initiating, or primary, explosive. Nitroglycerin is used as an active ingredient in the manufacture of explosives. ln its pure form, nitroglycerin is a contact explosive with physical shock causing it to explode and which degrades over time to even more unstable forms. Nitroglycerin is highly dangerous to transport or use.
The FBI Explosive Unit Laboratory examined the items in Schneck’s possession on Aug. 19 and determined them to comprise a fully functioning improvised explosive device.
Schneck has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and HPD conducted the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel are prosecuting the case.
Heroin Trafficker for Mexican Drug Cartel Sentenced in Brooklyn Federal Court to 68 Months’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Francisco Canizales-Ramirez, who transported heroin for a violent Mexican drug trafficking organization known as “H-2,” was sentenced by United States District Judge Carol Bagley Amon to 68 months’ imprisonment. In April 2018, Canizales-Ramirez pleaded guilty to conspiring to distribute and possess with intent to distribute heroin. Upon completion of his sentence, the defendant will be deported to Mexico.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, Canizales-Ramirez has been held responsible for his role as a smuggler for a large-scale Mexican drug trafficking organization that relies on criminals like the defendant to receive imported heroin and distribute it into our country,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are responding to the opioid epidemic by vigorously investigating and prosecuting all traffickers, large and small.” Mr. Donoghue extended his grateful appreciation to the United States Attorney’s Office for the Southern District of Ohio; Las Vegas District Office, Columbus District Office and New York Division of the U.S. Drug Enforcement Administration; Ohio State Highway Patrol; and a number of Ohio police departments, specifically, the Columbus Division of Police, Narcotics Bureau, Franklin County Sheriff’s Office, Westerville Police Department and Upper Arlington Police Department, for their assistance in the investigation and prosecution.
According to court filings and facts presented during court proceedings, the defendant agreed to receive and transport a kilogram of heroin on behalf of “H-2,” which is based in Nayarit and Sinaloa, Mexico. The defendant subsequently received the heroin from a drug courier in Columbus, Ohio, and transported the drugs to Brooklyn for distribution.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Alicia N. Washington, G. Karthik Srinivasan, Ryan C. Harris, Craig R. Heeren and Michael P. Robotti are in charge of the prosecution.
The Defendant:
FRANCISCO CANIZALES-RAMIREZ
Age: 35
Columbus, OhioE.D.N.Y. Docket No. 16-CR-658 (CBA)
Haysville Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Haysville man was sentenced Friday to 130 months in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said.
Daniel I. Miller, 35, Haysville, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used a file sharing program on his computer to obtain and share videos depicting children engaged in sex acts. A detective working with the Kansas Internet Crimes Against Children Task Force downloaded child porn from Miller’s computer via the Internet.
McAllister commended Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.