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Tuesday 3 July 2018
Turtle Creek Woman Pleads Guilty to Multiple Federal CrimesRead the Press Release
PITTSBURGH, Pa – A resident of Turtle Creek, Pennsylvania pleaded guilty in federal court to charges of violating federal firearms laws, conspiracy to commit identity theft offenses, unauthorized use of counterfeit driver’s licenses and credit cards, wire fraud, aggravated identity theft, and accessing protected computers without permission, United States Attorney Scott W. Brady announced today.
Quinyahta Rochelle, 32, pleaded guilty yesterday to six counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Rochelle participated in a number of different crimes. Between March 2016 and July 2016, Rochelle assisted another individual gain access to social media accounts of various celebrities by hacking into their accounts. During a search warrant related to that investigation, law enforcement executed a search warrant at her home, where the officers located several stolen firearms and many rounds of ammunition. Rochelle was a felon at the time of the search and therefore could not legally possess firearms or ammunition under federal law.
Contemporaneously with the execution of the arrest warrant on the firearms charge, law enforcement executed a second search warrant at her home based on information that Rochelle was engaged in a complex multi-state identity theft scheme. Ultimately, the investigation revealed that Rochelle obtained the names, dates of birth, social security numbers, credits cards, and other information through a variety of means, including through purchasing the material on the internet. Rochelle and her conspirators would then use that information to manufacture counterfeit credit cards and driver’s licenses, which they then used to make purchases and apply for credit both on-line and in person.
Judge Schwab scheduled sentencing for November 26, 2018. The law provides for a total maximum possible sentence of no less than two years and no more than 48 years in prison, a fine of $1,350,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service and the United States Postal Inspection Service, in conjunction with the multiple police departments in Pennsylvania, Ohio, and California, including police departments from Columbus, Ohio, Canfield, Ohio, Bucks County, Ohio, Allegheny County, Pennsylvania, Pittsburgh, Pennsylvania, Ross Township, Pennsylvania, Wilkins Township, Pennsylvania, and Los Angeles, California, conducted the investigation that led to the prosecution of Rochelle.
Trinidadian Man Pleads Guilty to Bank Fraud Involving Numerous Home Equity Line of Credit LoansRead the Press Release
WASHINGTON - Garth Anthony Gardner, 49, a citizen of the Republic of Trinidad & Tobago, has pled guilty to charges involving a scheme in which he made misrepresentations to apply for and obtain more than $3 million in multiple home equity line of credit loans.
The announcement was made by U.S. Attorney Jessie K. Liu and Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Gardner pled guilty on July 2, 2018, in the U.S. District Court for the District of Columbia, to two counts of bank fraud. Each charge carries a statutory maximum of 30 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces an estimated range of 51 to 63 months in prison and a fine of up to $100,000. The plea agreement calls for him to pay $3,165,294 in restitution to 24 financial institutions. It also calls for him to pay a forfeiture money judgment in the amount of $2,048,446. The Honorable Christopher R. Cooper scheduled sentencing for Sept. 24, 2018.
According to the government’s evidence, in October 2003, Gardner purchased a property in the 5100 block of 13th Street NW, using the Social Security number of another person and falsely representing himself as a U.S. citizen. In May 2005, he used a corporation that he owned to purchase a second property in the 1300 block of Dexter Terrace SE. Gardner transferred ownership of the second property from the company to himself for $10. Next, Gardner applied for a series of home equity line of credit loans using the two properties as collateral.
By settling these loans in close proximity to each other, Gardner minimized the banks’ ability to learn about the other loans. From August to October 2004, Gardner obtained 12 home equity line of credit loans from 12 different banks secured by the 13th Street property, totaling approximately $1.4 million. Between March and April 2006, Gardner applied for 13, and obtained 12, such loans from 12 banks, secured by the Dexter Terrace property, totaling approximately $1.9 million.
In approximately February 2008, Gardner stopped making payments and defaulted on all of the loans. The banks discovered Gardner’s fraudulent conduct after initiating foreclosure proceedings on the properties.
Gardner admitted that he used a portion of the proceeds from the fraudulent scheme to purchase 15 silver bars, which the government recovered and liquidated for about $1.1 million.
Gardner was arrested in Frankfurt, Germany in May 2017, and was extradited to the District in February 2018, to face the charges that had been pending since 2014. He remains in custody pending his sentencing.
The Department of Justice’s Office of International Affairs provided significant assistance in the extradition of Gardner from Germany to the United States.
In announcing the plea, U.S. Attorney Liu and Acting Special Agent in Charge Jackson commended the work performed by those who investigated the case from the Internal Revenue Service-Criminal Investigation. They also expressed appreciation for the assistance provided by the Washington Field Office of the U.S. Secret Service and the Office of the Inspector General of the Social Security Administration. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michelle Bradford, Diane Lucas, and Denise A. Simmonds, former Assistant U.S. Attorney David A. Last, and Paralegal Specialist Aisha Keys.
Stilwell Man Pleads Guilty to Possessing, Receiving and Concealing Stolen FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Stoney Ray Mendenhall, age 18, of Stilwell, Oklahoma pled guilty to Possessing, Receiving And Concealing A Stolen Firearm, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about February 3, 2018, within the Eastern District of Oklahoma, the defendant, Stoney Ray Mendenhall, knowingly possessed, received and concealed a stolen firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Adair County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
St. Augustine Sex Offender Charged with Solicitation of Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – Kenneth Brian Hanger (46, St. Augustine) has been arrested and charged by a federal criminal complaint with soliciting child pornography using the internet. In 1994, Hanger was convicted of aggravated indecent assault in Bradford County, Pennsylvania and is required to register as a sexual offender. Because of his prior sex offense conviction, he faces a mandatory minimum penalty of 25 years, and up to 50 years, in federal prison, and a potential life term of supervision. Hanger is currently being detained pending his detention hearing on July 6, 2018.
According to the criminal complaint, on May 22, 2018, a detective with the St. Johns County Sheriff’s Office (SJSO) reviewed sexual offender registration information provided to the SJSO by Hanger, in which Hanger disclosed his use of a Facebook account that did not list his true name. Posing as a minor child, the detective sent a “friend request” to this account and Hanger accepted this request and made online contact with the “child.” Between May 24, 2018 and June 5, 2018, Hanger and the “child” engaged in online conversations on several occasions using a texting application. Hanger was advised and acknowledged that the “child” was only 13 years old.
On June 1, 2018, Hanger raised the topic of sexual activity between himself and the “child” and suggested that he and the “child” meet to engage in sex. On June 4, 2018, Hanger and the “child” again discussed meeting for sex, and Hanger sent the “child” a photo of his penis. Later that same day, Hanger solicited the “child” to produce and send him a graphic video depicting “her” genitalia. Two days later, SJSO detectives arrested Hanger at his residence in St. Augustine. During an interview, Hanger admitted that he had engaged in online conversations with the 13 year old “child,” that he had sent “her” a photo of his own genitalia, and that he had stated his intentions to engage in sex.
This case was investigated by the St. Johns County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please
visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South L.A. Man Pleads Guilty to Making Online Threats to Kill L.A. County Sheriff’s Department Personnel at the Inglewood CourthouseRead the Press Release
LOS ANGELES – A South Los Angeles man who made a series of online threats to kill law enforcement personnel and others at the Los Angeles Superior Court’s Inglewood Courthouse, a nearby school, and a private business pled guilty yesterday to a federal offense of making online threats.
John Patrice Hale, 43, who used the online moniker “Frost K Blizzard,” pled guilty to one count of making threats to injure in interstate commerce.
Hale sent the online threats over several days in May 2017. Some of the threats invoked ISIS, but authorities have not uncovered any evidence linking Hale to international terrorism. Hale made the threats using techniques designed to make his internet communications anonymous, which included using Tor and proxy servers.
In a plea agreement filed in this case, Hall specifically admitted making the following threats:
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“Our brotherhood will celebrate today when allah sets the explosives planted in Inglewood sheriff vehicles at Inglewood court,” which was sent on May 12. This threat prompted the evacuation of the Inglewood Courthouse, and the LASD’s Arson and Explosives Unit and the Threat Interdiction Unit responded.
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Two similar threats sent on May 15, one of which read, in part: “Allah willing we will be able to take out as many officers that pull out your parking structure. It will be a plus to take part of your american school across the street. ISIS will have revenge today.” Law enforcement again responded to the Inglewood Courthouse, which was not evacuated after a threat assessment.
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Two threats made on May 16, one of which read: “Item under deputy car. Impact for half city block. 6 hours to locate it. At Inglewood sheriff station. If you have units out better call them back in.” These communications again prompted a significant response by law enforcement and evacuation of the Inglewood Courthouse.
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A threat to a private business through its website on May 23 that read: “All praises to Allah. Today, we will detonate an explosive at your La Brea and Arbor Vitae location if our needs aren’t met by your company. ISIS.”
Hale further admitted that he submitted bogus information to the FBI’s “Tips and Public Leads” webpage, despite a warning posted on that webpage that submitting a false tip could result in a fine and/or imprisonment. In the submission, Hale made the false claim that he knew a man who “would supply ISIS with explosives even planting them for them” and who had received instructions from ISIS “to send inglewood sheriff department bomb threats via email.”
As a result of the guilty plea, Hale faces a statutory maximum sentence of five years in federal prison. Hale is scheduled to be sentenced by United States District Judge Dale S. Fischer on October 29.
The investigation into Hale was conducted by the FBI’s Joint Terrorism Task Force and was led by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney George E. Pence of the Terrorism and Export Crimes Section.
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Sixteen Saint Lucie County Residents Sentenced to Federal Prison on Firearms and Drug Trafficking Charges as Part of Project Safe Neighborhoods Violence Reduction ProgramRead the Press Release
Since April of 2017, sixteen Fort Pierce residents have been convicted and sentenced to prison on various federal firearms and drug trafficking charges, as part of the Project Safe Neighborhoods violence reduction program in South Florida.
Benjamin Greenberg, United States Attorney for the Southern District of Florida; Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office; Diane Hobley-Burney, Chief, Fort Pierce Police Department (FPPD); Amos Rojas, Jr., United States Marshal, United States Marshals Service, Southern District of Florida (USMS); Bruce Colton, State Attorney, Saint Lucie County Office of the State Attorney for the 19th Judicial Circuit; and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Orlando Field Office, made the announcement.
The joint federal and state prosecution of the defendants, follows a two-year long investigation (“Operation Grand Slam”) into violent gang-related activity in Saint Lucie County. The investigation resulted in the conviction of 16 defendants on federal firearms and narcotics charges, the seizure of 70 firearms, and the recovery of more than 1 kilogram of cocaine, 3 ounces of heroin, and 300 grams of MDMA. An additional 62 defendants are being prosecuted by the State Attorney’s Office for the 19th Judicial District on felony charges, including: carrying a concealed firearm, possession with intent to distribute cocaine, possession with intent to distribute heroin, possession with intent to distribute MDMA, burglary, and cruelty towards a child.
The following defendants have been sentenced in U.S. District Court:
- James Allen Brown, Jr., 26, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 18CR14003). On June 19, 2018, he was sentenced to 94 months in prison, to be followed by 3 years of supervised release.
- Sylvester Davis, 25, pled guilty to possession of a firearm and ammunition by a convicted felon and possession with intent to distribute marijuana (Case No. 17CR14072). On June 19, 2018, he was sentenced to 41 months in prison, to be followed by 2 years of supervised release.
- Damonta Vontarus O’Neal, 20, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 18CR14005). On June 19, 2018, he was sentenced to 77 months in prison, to be followed by 3 years of supervised release.
- Travius Ruffin, 25, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 18CR14004). On June 7, 2018, he was sentenced to 96 months in prison, to be followed by 2 years of supervised release.
- Lloyd Cedric Coley, 28, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 17CR14065). On April 26, 2018, he was sentenced to 40 months in prison, to be followed by 3 years of supervised release.
- Brian Gordon, 39, was convicted at trial by a Fort Pierce of possession of a firearm and ammunition by a convicted felon and carrying a firearm in furtherance of a drug trafficking crime in violation, and possession with intent to distribute crack cocaine (Case No. 16CR14064). On January 26, 2018, Gordon was sentenced to 114 months in prison, to be followed by 5 years of supervised release (sentence concurrent to St. Lucie County matters).
- James Arthur Parker, Jr., 40, pled guilty to one count of possession with intent to distribute 28 grams or more of cocaine base and less than 50 kilograms of marijuana and possession of a firearm in furtherance of a drug trafficking crime (Case No. 17CR14048) On December 20, 2017, he was sentenced to 120 months in prison, to be followed by 5 years of supervised release (sentence concurrent to other matters).
- Alexander Fuentes, 26, pled guilty to possession of a firearm and ammunition by a convicted felon and possession with intent to distribute crack cocaine (Case No. 17CR14029). On October 13, 2017, he was sentenced to 78 months in prison, to be followed by 3 years of supervised release.
- Kenvonte Javon Gaskin, 27, pled guilty to possession with intent to distribute crack cocaine; carrying a firearm during and in relation to and possession of a firearm in furtherance a drug trafficking crime; one count of possession of a firearm and ammunition by a convicted felon; and two counts of possession of ammunition by a convicted felon (Case No. 17CR14051). On October 3, 2017, Gaskin was sentenced to 90 months in prison, to be followed by 5 years of supervised release (sentence concurrent to St. Lucie County matters).
- Eugene Curry, Jr., 45, pled guilty to possession with intent to distribute crack cocaine and heroin and possession of a firearm in furtherance of a drug trafficking crime (Case No. 17CR14030). On August 17, 2017, he was sentenced to 96 months in prison, to be followed by 3 years of supervised release.
- Morris Jones, Jr., 27, pled guilty to possession of a firearm and ammunition by a convicted felon, and possession with intent to distribute crack cocaine (Case No. 16CR14063). On June 26, 2017, he was sentenced to 51 months in prison, to be followed by 3 years of supervised release.
- Cornelius Trevon Ivory, 20, pled guilty to possession of a firearm and ammunition by a convicted felon and conspiracy to possess with intent to distribute crack cocaine (Case No. 16CR14078). On June 7, 2017, he was sentenced to 71 months in prison, to be followed by 3 years of supervised release.
- Charles Brooks, 20, pled guilty to possession of a firearm and ammunition by a convicted felon and possession with intent to distribute crack cocaine (Case No. 16CR14040). On May 18, 2017, he was sentenced to 24 months in prison, to be followed by 3 years of supervised release.
- Kevrence Lavale Corde, 25, pled guilty to conspiracy to possess with intent to distribute crack cocaine (Case No. 16CR14078). On May 4, 2017, he was sentenced to 84 months in prison, to be followed by 3 years of supervised release.
- John Henry McGee IV, 24, pled guilty to possession of a firearm and ammunition by a convicted felon (Case No. 16CR14079). On April 28, 2017, he was, and was sentenced to 10 months in prison, to be followed by 1 year of supervised release.
- Onel Nonnombre, 22, pled guilty to possession of ammunition by a convicted felon, in violation and possession with intent to distribute crack cocaine (Case No. 16CR14088). On April 27, 2017, he was sentenced to 72 months in prison, to be followed by 3 years of supervised release.
These cases are all the result of Project Safe Neighborhoods (PSN), a program that brings 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.
These cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhoods (PSN). OCDETF is a multi-agency task force investigates armed drug traffickers as well as the gang violence that is generated by drug trafficking. PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Greenberg commended the investigative efforts of ATF, the St. Lucie County Sheriff’s Office, FPPD, USMS, and FDLE, in support of this operation. Mr. Greenberg thanked the Office of the State Attorney 19th Judicial District for their partnership during the course of this investigation and resulting prosecutions. These cases were prosecuted by Assistant United States Attorney Marton Gyires.
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.
Six Richmond County, North Carolina Residents Indicted for Firearm, Drug, and Robbery OffensesRead the Press Release
GREENSBORO, N.C. – A grand jury sitting in Greensboro, North Carolina last week returned five indictments charging six Richmond County, North Carolina men on charges including possession of a firearm by a convicted felon, drug distribution, and Hobbs Act robbery. All six were arrested and had initial court appearances on July 2.
These cases are the most recent resulting from a coordinated effort among federal, state, and local law enforcement intended to reduce violent and gun-related crime in the Richmond County area, announced U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
In 2017, security concerns prompted the City of Hamlet, North Carolina, to abruptly cancel its July 4th festivities. News of the 2017 Hamlet July 4th cancellation garnered public attention, and Attorney General Sessions, speaking at a gang conference in Winston-Salem on Aug. 17, 2017, remarked, “I heard recently about Hamlet, North Carolina, where this year’s annual Independence Day celebration was canceled suddenly because of threats of gang violence. This is in a town of about 7,000 people. I certainly respect the decision of the city leaders, but it is infuriating and wrong to me that they had to make it. This is America. We will not be held hostage in our homes by gangsters.”
Since then, a total of 25 defendants from Richmond County, including the six arrested today, have been charged in U.S. District Court for the Middle District of North Carolina, and the federal and local law enforcement coordination continues.
“Federal prosecutors and agents have worked diligently with our law enforcement partners in Richmond County to ensure that fear of criminal activity does not control citizens’ enjoyment of their fundamental freedoms on Independence Day or any other day,” said U.S. Attorney Martin, “and we plan to maintain our focus on Richmond County long after the fireworks end. Thank you to Sheriff Clemmons, Chief Waters, Chief Kelly, and the other state and federal agents for their coordination and continuing hard work.”
On June 25, the grand jury returned indictments against six individuals including:
• Quandon Ha’son Wilson, 26, and Devion Marquis Ward, 22, both of Rockingham, North Carolina, were charged with one count of obstructing, delaying, and affecting commerce and the movement of any article and commodity in commerce, by robbery or extortion in connection with the robbery of Duncan’s Food Store in Rockingham on Jan. 8. Wilson and Ward are also charged with one count of using, carrying, or possessing a firearm during and in relation to a crime of violence;
• Quiteraus Dequan Gardner, 22, of Hamlet, North Carolina, was charged with one count of felon in possession of a firearm;
• Sajuan Deangelo Leslie, 29, of Rockingham, was charged with one count of felon in possession of a firearm;
• Trevon Ibe-Deonte Leslie, 23, of Rockingham, was charged with one count of felon in possession of a firearm, one count of possession with intent to distribute marijuana, and one count of using, carrying, or possessing a firearm during and in relation to a drug trafficking crime; and
• Hikeem Idrise-Lamar Byrd, 24, of Rockingham, was charged in a four-count indictment with one count of conspiracy to distribute and possess with intent to distribute 28 grams of more of cocaine base; two counts of possession with intent to distribute cocaine base, and one count of felon in possession of a firearm.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In addition to the six individuals indicted this month, 19 others from Richmond County, have been charged with drug and firearm offenses in U.S. District Court for the Middle District of North Carolina since July 2017. Five defendants charged in a methamphetamine conspiracy in July 2017 (Landon Hair, Charles Goodwin, Mark Rosberg, Windell Strickland, and Bryan Smith) were convicted and sentenced to terms of imprisonment ranging from 60 to 82 months. Kevin Mack was convicted in a separate methamphetamine case and sentenced to 60 months in prison. Walter Little and Everette Smith were both sentenced after being convicted of felon in possession of a firearm. Little was sentenced to 120 months in prison, and Smith was sentenced to 69 months in prison. Three defendants - Justin Beck, Rondell McNair, and Devon Stanback – are fugitives. The remaining defendants are pending trial or sentencing.
The cases indicted this month were investigated by the Hamlet Police Department, Rockingham Police Department, Richmond County Sheriff’s Office, North Carolina Department of Public Safety, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal law enforcement officials are also grateful to Assistant District Attorneys from the Richmond County District Attorney’s Office for their assistance. The June indictments are being prosecuted by Trial Attorneys of the Criminal Division of the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of North Carolina.
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Six North Carolina Residents Indicted for Firearm, Drug, and Robbery OffensesRead the Press Release
A federal grand jury sitting in Greensboro, North Carolina last week returned five indictments charging six Richmond County, North Carolina men who were arrested yesterday on charges including possession of a firearm by a convicted felon, drug distribution, and Hobbs Act robbery.
These indictments were the result of a coordinated effort among federal, state, and local law enforcement intended to reduce violent and gun-related crime in the Richmond County area, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
In 2017, security concerns prompted the City of Hamlet, North Carolina, to abruptly cancel its July 4th festivities. News of the 2017 Hamlet July 4th cancellation garnered public attention, and Attorney General Sessions, speaking at a gang conference in Winston-Salem on Aug. 17, 2017, remarked, “I heard recently about Hamlet, North Carolina, where this year’s annual Independence Day celebration was canceled suddenly because of threats of gang violence. This is in a town of about 7,000 people. I certainly respect the decision of the city leaders, but it is infuriating and wrong to me that they had to make it. This is America. We will not be held hostage in our homes by gangsters.” The Attorney General pledged to provide assistance to combat that violence, and the cases announced today are a direct result of that pledge.
“At the direction of the Attorney General, the Department of Justice’s Criminal Division dispatched a team of prosecutors to assist federal and local law enforcement officials in central North Carolina to address violent criminal activity in the area,” said Acting Assistant Attorney General Cronan. “It is our hope that that the Criminal Division’s efforts—together with those of our federal and local partners—will lead to a decrease in crime, result in accountability for violent offenders, and lead to safer streets and communities.”
On June 25, the grand jury returned indictments against six individuals including:
- Quandon Ha’son Wilson, 26, and Devion Marquis Ward, 22, both of Rockingham, North Carolina, were charged with one count of obstructing, delaying, and affecting commerce and the movement of any article and commodity in commerce, by robbery or extortion in connection with the robbery of Duncan’s Food Store in Rockingham on Jan. 8. Wilson and Ward are also charged with one count of using, carrying, or possessing a firearm during and in relation to a crime of violence;
- Quiteraus Dequan Gardner, 22, of Hamlet, was charged with one count of felon in possession of a firearm;
- Sajuan Deangelo Leslie, 29, of Rockingham, was charged with one count of felon in possession of a firearm;
- Trevon Ibe-Deonte Leslie, 23, of Rockingham, was charged with one count of felon in possession of a firearm, one count of possession with intent to distribute marijuana, and one count of using, carrying, or possessing a firearm during and in relation to a drug trafficking crime; and
- Hikeem Idrise-Lamar Byrd, 24, of Rockingham, was charged in a four-count indictment with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base; two counts of possession with intent to distribute cocaine base, and one count of felon in possession of a firearm.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases indicted this month were investigated by the Hamlet Police Department, Rockingham Police Department, Richmond County Sheriff’s Office, North Carolina Department of Public Safety, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Federal law enforcement officials are also grateful to Assistant District Attorneys from the the Richmond County District Attorney’s Office for their assistance. The cases are being prosecuted by Washington, D.C.-based Trial Attorneys Jay Bauer, Erin Cox, Ivana Nizich, Jamie Perry and Sasha Rutizer of the Criminal Division of the U.S. Department of Justice.
Repeat Bank Fraudster Sentenced to 5+ Years in Prison for Theft SchemeRead the Press Release
A repeat offender who pledged to end his criminal ways in 2009, was sentenced July 2, 2018, to 65 months in prison for his return to bank fraud, announced U.S. Attorney Annette L. Hayes. DERICO MONTEREY FULLER, 38, stole more than $287,000 from banks and businesses. In 2009, FULLER was sentenced to 75 months in prison for a fraud totaling more than $564,000. At the time of that sentencing FULLER pledged to turn his life around. Instead, while on federal supervision, FULLER was arrested three times for driving under the influence and in 2016 returned to bank fraud. In addition to the 65-month prison sentence, U.S. District Judge James L. Robart imposed five years of supervised release to follow the prison term.
According to records filed in the case, FULLER pleaded guilty to bank fraud and aggravated identity theft in January 2018. In the current scheme, FULLER and his coconspirators stole personally identifying information and created fake IDs in the victim names. The also stole business checking account numbers. Using the fake IDs and phony checks they would make bank deposits and withdraw cash before the financial institution discovered the fraud. The conspirators also purchased cell phones and opened lines of credit in the stolen identities.
The case was investigated by the King County Sheriff’s Office and the U.S. Secret Service. The case was prosecuted by Assistant United States Attorney Andrew Friedman.
Rapid City Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 29, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Daniel Richards, age 34, was sentenced to 210 months custody in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Beginning May 2017, Richards conspired and agreed with other persons, to intentionally distribute between 5 and 15 kilograms of methamphetamine in western South Dakota. Additional persons involved in this conspiracy are pending trial.
This case was investigated by the Unified Narcotics Enforcement Team, Bureau of Alcohol, Tobacco, Firearms and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and Rapid City Police Department. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Richards was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Internet Transfer of Obscene MaterialRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Obscene Visual Representations of the Sexual Abuse of Children, Possession of Obscene Visual Representations of the Sexual Abuse of Children, and Transportation of Obscene Matter.
Andrew Hallock, 48, was charged on June 19, 2018. Hallock appeared before U.S. Magistrate Judge Daneta Wollmann on June 22, 2018, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years up to 20 years in federal prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Hallock knowingly receiving, possessing, and producing obscene, sexually explicit drawings and cartoons of minors between October 2015 and January 2018 via the internet. The charges are merely an accusation and Hallock is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Hallock was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Firearm CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Michael Wiseley, age 35, was charged on June 19, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on June 29, 2018, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Wiseley, a previously convicted felon who is prohibited from possession firearms, knowingly possessing a semi-automatic pistol. The charge is merely an accusation and Wiseley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Wiseley was detained pending trial. A trial date has not been set.
Pennsylvania Man Pleads Guilty to Firearms Offense Following Discovery of Weapons in Car in Downtown WashingtonRead the Press Release
WASHINGTON – Bryan D. Moles, 44, of Edinboro, Pa., pled guilty today to a firearms offense stemming from the discovery of a semi-automatic pistol and an AR-15-style rifle in the car he parked last year at the Trump International Hotel in downtown Washington.
The announcement was made by U.S. Attorney Jessie K. Liu, Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service, ), Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department.
Moles pled guilty in the U.S. District Court of the District of Columbia to carrying a pistol without a license, a District of Columbia offense. As part of the plea, the government has agreed to dismiss a federal firearms charge that was included in an indictment returned in June 2017. The charge carries a statutory maximum of five years in prison and a fine of up to $12,500, Based on the District of Columbia’s voluntary sentencing guidelines, Moles faces a possible range of six to 24 months in prison. The Honorable Richard J. Leon scheduled sentencing for Sept. 7, 2018.
The plea agreement also calls for Moles to forfeit various firearms recovered from the car as well as from his home in Pennsylvania.
According to a factual proffer submitted for the plea, Moles traveled by car from Pennsylvania to the District of Columbia, leaving on May 30, 2017 and arriving on May 31. Prior to heading off, he placed a Glock 23 .40-caiber pistol and a Bushmaster Carbon-15 .223-5.56mm caliber rifle in the car. The pistol was in an unlocked glove compartment and the rifle was in an unlocked rifle case in the rear hatchback. At the time of his trip, Moles had been a regular user of marijuana for at least the prior month.
Moles parked the car at the Trump International Hotel early in the morning of May 31. He reported to hotel staff that he had firearms in the car and checked in as a hotel guest. Law enforcement agents later knocked on the door to his hotel room. Moles let them inside, He told the agents that he had brought the two firearms to the District of Columbia, and said that he self-medicated with marijuana. Agents found marijuana and a vaporizer smoking device in the bathroom of the hotel room.
Moles was released from custody on June 2, 2017, but his pretrial release was revoked on June 15, 2017, after the judge determined he had violated his release conditions. He has been in custody ever since.
Under District of Columbia law, Moles would have been ineligible to obtain a license to carry a firearm due to his use of marijuana.
This case was investigated by the U.S. Secret Service, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Michael J. Friedman.
Parkersburg Woman Pleads Guilty to Obtaining Hydrocodone by FraudRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman pled guilty today to a federal drug crime, announced United States Attorney Mike Stuart. Amie Nicole VanCamp, 36, entered her guilty plea to obtaining a controlled substance by misrepresentation, fraud, forgery, deception and subterfuge. U.S. Attorney Stuart commended the investigative efforts of the Drug Enforcement Administration and the Parkersburg Police Department.
“A medical professional that succumbs to opioid addiction and diverts pain medication away from patients who need it is tragic, and unfortunately, not all that uncommon,” said United States Attorney Mike Stuart. “We will continue to work with DEA and our state and local law enforcement partners to prosecute cases like this as part of our efforts to combat the opioid epidemic.”
VanCamp was formerly employed as a staff nurse by Camden Clark Medical Center in Parkersburg from 2014 until her termination on June 27, 2015. Part of her job at the hospital was administering medication to patients. She admitted that she became addicted to pain pills such as oxycodone and hydrocodone, and on several occasions took pills intended for patients for her personal use. She also admitted that she would fraudulently document that the medication had been dispensed to the patient. She specifically admitted that on June 23, 2015, she took two 5mg hydrocodone pills that were intended for a patient, and instead of dispensing the medication, kept the pills for her personal use and falsely documented in the patient file that the medication had been given to the patient.
VanCamp faces up to four years in federal prison when she is sentenced on October 1, 2018.
Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., presided over the plea hearing.
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Oklahoma City Man Pleads Guilty to Possession of Firearms and Ammunition After a Felony ConvictionRead the Press Release
OKLAHOMA CITY – LERAY EUGENE RICHARDS, 30, of Oklahoma City, pleaded guilty today to possession of firearms and ammunition by a prohibited person, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to court records, on the evening of October 27, 2017, the Midwest City Police Department received a report of a fight involving a gun at a Midwest City apartment complex. Upon arrival, Midwest City Police Officers assisted security guards from the complex in detaining Richards. Richards admitted during his guilty plea hearing today that he had been in possession of a 9mm semi-automatic pistol.
Additionally, Richards admitted that when he was arrested in another incident on the night of September 28, 2016, by the Oklahoma City Police Department, he possessed a .22 long rifle caliber pistol and approximately 50 rounds of ammunition.
Richards’s possession of the firearms and ammunition was illegal because he had previously been convicted of a felony. He was indicted federally on April 17, 2018.
Today Richards pleaded guilty before United States District Court Judge Vicki Miles-LaGrange to two counts of possession of a firearm and one count of possession of ammunition by a prohibited person. At sentencing, he faces up to ten years in prison on each count, in addition to a maximum fine of $250,000 and three years of supervised release.
Richards remains in custody and will be sentenced in approximately 90 days.
This case is the result of investigation efforts by the Midwest City Police Department, the Oklahoma City Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives, and prosecution efforts by the Domestic Violence Unit of the Oklahoma County District Attorney’s Office. Assistant U.S. Attorney Nicholas J. Patterson is prosecuting the case in the U.S. Attorney’s Office. It is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court filings for further information.
North American Power Group, Ltd. and Michael Ruffatto Agree to Pay $14.4 Million to Resolve Alleged False Claims for Department of Energy Cooperative Agreement FundsRead the Press Release
PITTSBURGH - North American Power Group, Ltd. (NAPG) and its owner and president, Michael Ruffatto, have agreed to pay the United States $14.4 million to resolve allegations that they violated the False Claims Act by submitting fraudulent claims under a cooperative agreement with the Department of Energy (DOE) National Energy and Technology Laboratory (NETL), located in Pittsburgh, Pennsylvania, U.S. Attorney Scott W. Brady announced today.
Based in Greenwood Village, Colorado, NAPG develops, owns, operates and manages energy-related projects. On December 8, 2009, NETL awarded a $14 million cooperative agreement to NAPG for a Carbon Site Characterization Project to collect and analyze data, as well as to design and implement carbon sequestration wells at the Two Elk Energy Park (TEEP) located in Campbell County, Wyoming. Between December 2009 and January 2012, Ruffatto served as NAPG’s representative for the cooperative agreement and was responsible for authorizing the submission of the company’s invoices associated with the project to NETL for payment. In that time, NAPG submitted more than $7 million in claims for reimbursement under the cooperative agreement, of which approximately $5.7 million was reimbursed by NETL. A federal investigation revealed that the $5.7 million paid by DOE to NAPG for costs supposedly related to the NETL project were actually used by Ruffatto to pay legal fees, car payments, jewelry, international travel, and other personal items unrelated to the scope of work under the cooperative agreement. The DOE suspended the cooperative agreement in January 2012 after discovering the fraudulent claims.
On October 21, 2016, Ruffatto entered a plea of guilty in the U.S. District Court for the Western District of Pennsylvania to a felony count of intentional submission of false claims under 18 U.S.C. § 287. He was sentenced on June 27, 2018, to 18 months in prison, three years supervised release, a $50,000 fine and was directed to pay $2 million dollars more in restitution as the remainder of the civil settlement.
"This $14.4 million False Claims Act settlement is the largest NETL settlement in the history of western Pennsylvania," said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. "Protecting taxpayer funds is an important priority of our office and this settlement, along with yesterday’s sentence, demonstrate we will use every tool in our arsenal to prevent and deter wrongful expenditures of government monies."
The settlement was the result of a joint investigation conducted by the DOE Office of Inspector General, the Civil Division of the Department of Justice, and the U.S. Attorney’s Office for the Western District of Pennsylvania. Senior Trial Counsel Donald J. Williamson of the Department of Justice’s Civil Frauds Section and Assistant United States Attorney Paul E. Skirtich handled the investigation that led to this civil settlement on behalf of the United States.
Noblesville Man Sentenced to 33 Months in Prison and Ordered to Pay $331,493 in RestitutionRead the Press Release
HAMMOND- Daniel P. Bewley, 34, a tax return preparer from of Noblesville, Indiana, was sentenced before District Court Judge James T. Moody on his plea to a wire fraud scheme that spanned from 2011 to April 2014 involving his submission of fraudulent customer tax returns to the IRS. The defendant also pled guilty to one count of filing his own fraudulent federal tax return, announced U.S. Attorney Thomas L. Kirsch II.
Bewley received a sentence of 33 in prison followed by 3 years of supervised release. The court further ordered Bewley to pay $331,493 in restitution to the IRS.
As outlined in the Indictment, Bewley presented his clients with a paper copy of the tax return he claimed would be electronically filed on their behalf with the IRS. The paper copies provided to clients, however, did not match the returns actually filed with the IRS. In what has come to be known as a “hijacked return” scheme, Bewley inflated deductions on the returns to create a larger refund. Clients received the refund the paper return indicated they could expect while defendant pocketed the rest.
The IRS encourages people who believe they may have been the victim of a fraudulent return preparer to contact the IRS Taxpayer Advocate Service https://taxpayeradvocate.irs.gov/get-help/return-preparer-fraud .
This case was investigated by the Internal Revenue Service, Criminal Investigation Division and was prosecuted by Assistant United States Attorney Diane Berkowitz.
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Nebraska Woman Sentenced for Making a False StatementRead the Press Release
United States Attorney Ron Parsons announced that a Walthill, Nebraska, woman convicted of False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wehnona Stabler, age 60, was sentenced on June 29, 2018, to12 months of unsupervised probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Stabler was charged on June 20, 2017. The conviction stems from Stabler making a false statement in January 2014 on a Confidential Financial Disclosure Report, while an employee of Indian Health Service at Pine Ridge, related to a $5,000 payment she received from Dr. Stanley Patrick Weber. Weber is currently under indictment for multiple counts of sex abuse with minors arising when he was a pediatrician at IHS Pine Ridge.
The investigation is being conducted by the Office of Inspector General, Health and Human Services. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Methamphetamine Dealer Sentenced to 25 Years in PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Michael Gordon Watson (41, Melbourne) to 25 years in federal prison for possessing with the intent to distribute more than 1 kilogram of methamphetamine, more than 3 kilograms of marijuana, and a large quantity of MDMA. Watson also possessed two loaded firearms at the time of his arrest, which the court ordered him to forfeit. Watson pleaded guilty on March 13, 2018.
On September 25, 2017, an officer with the Palm Bay Police Department conducted a traffic stop on a vehicle being driven by Watson and confirmed that Watson had a suspended driver’s license. During an interview with the officer, Watson admitted that he had been previously arrested for drugs and trafficking in methamphetamine. A police canine unit was dispatched to the scene and alerted positively to the presence of drugs in Watson’s vehicle. During a subsequent search of the vehicle, officers located two loaded firearms, methamphetamine, marijuana, MMDA, and $13,180 in cash.
This case was investigated by the U.S. Drug Enforcement Administration and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Mesa County Man Sentenced to 5 Years in Federal Prison for Growing Marijuana on an Island in the Colorado RiverRead the Press Release
DENVER – Santos Ramirez-Carrillo, age 33, of Mesa County, was sentenced yesterday by Chief U.S. District Court Judge Marcia S. Krieger to serve 60 months (5 years) in federal prison for conspiracy to manufacture and possess with intent to distribute 50 or more marijuana plants, announced U.S. Attorney Bob Troyer, Bureau of Land Management (BLM) Special Agent in Charge Gary Mannino and Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge William T. McDermott.
Ramirez-Carrillo appeared at the sentencing hearing in custody and was remanded at its conclusion. Co-defendant Santos Ramirez-Alvarez earlier pled guilty to similar charges, and is pending sentencing on August 6, 2018.
According to court documents, including the defendant’s plea agreement, in May 2017, Ramirez-Carrillo and Ramirez-Alvarez began living and working on an island in the Colorado River near DeBeque, Colorado. The island is partly comprised of federal land, administered by BLM. Over the course of the next four months, the defendant and his co-conspirators worked together on this and another nearby island to cultivate thousands of marijuana plants. On September 7, 2017, agents from several federal, local and state agencies executed a search warrant on the island. While doing so, officers approached a suspected campsite. Agents and officers gave loud commands announcing their presence. Three men tried to run away and both Ramirez-Carrillo and Ramirez-Alvarez were captured. A third man escaped. During the search of the islands, agents and officers discovered 9,156 plants.
"Federal lands belong to all of us,” said U.S. Attorney Bob Troyer. “We will continue to pursue and punish people who abuse those lands and exploit them for criminal purposes.”
"Illegal marijuana cultivation poses environmental and safety hazards to the public," said Gary Mannino, BLM Colorado Special Agent in Charge. "Our goal is to provide a safe, healthy environment for the public when they come out to enjoy their public lands."
“This case highlights the success of DEA’s relationships with our Federal, State and Local law enforcement counterparts to combat large-scale organized crime groups cultivating marijuana on public lands for distribution on the black market,” said DEA Denver Division Special Agent in Charge William T. McDermott. “Since the legalization of marijuana in Colorado, law enforcement has discovered a significant increase in the cultivation of marijuana on public lands. These marijuana cultivations routinely consist of thousands of plants, which has a severe impact on the environment and wildlife and threatens the safety of anyone who comes upon them.”
This case was investigated by the BLM and the DEA, with support from the DEA Air Wing assets. Assisting with the search warrant execution was the FBI, U.S. Marshals Service, Mesa County Sheriff’s Office, Grand Junction Police Department, Western Colorado Drug Task Force, Colorado State Patrol, and the Colorado National Guard. The defendants are being prosecuted by Assistant U.S. Attorney Jeremy Chaffin of the Grand Junction Branch Office.
Medicaid Provider Agrees to Lifetime Exclusion from MedicaidRead the Press Release
RICHMOND, Va. – The owner of several Richmond area medical support service companies has agreed to settle a civil fraud case alleging her companies defrauded the Virginia Medicaid program of over $1 million.
The allegations involved Dawn Sykes, 43, of Glen Allen, and her companies: Open Arms Family Support Services, LLC; Open Arms Family Day Treatment Support Services, LLC; and Open Arms Mental Health Support Services, LLC. Sykes owned and operated all three companies from 2010 to 2017, which covers the time the Government alleged multiple fraudulent schemes, including: 1) Submission of claims to Medicaid for reimbursement of services not provided; 2) Sykes’ payment of kickbacks to an individual to induce client referrals; and 3) Submission of claims to Medicaid for reimbursement for services provided to ineligible recipients.
Sykes reached a settlement agreement providing for an initial payment of $50,000 and a consent judgment of $1,061,613 to resolve an action commenced under the False Claims Act and the Virginia Fraud Against Taxpayers Act. Sykes also agreed to lifetime exclusion from the Virginia Medicaid Program. Sykes may satisfy the consent judgment through periodic payments totaling a lesser amount.
Sykes and the above mentioned companies were named defendants in a lawsuit filed under the “whistleblower” provisions of the federal False Claims Act and the state Virginia Fraud Against Taxpayers Act. The federal and state false claims acts permit the Government to investigate the whistleblower’s allegations and to intervene or to join the litigation. Following a joint investigation, the Government intervened.
The False Claims Act and Virginia Fraud Against Taxpayers Act also permit whistleblowers to receive a share of any recovery. The whistleblower in this case will receive 18 percent of the monies paid by the Defendants. The case is captioned United States ex rel. Susana Mulcahey v. Open Arms Family Support Services, LLC, Civil No. 3:14 cv 316.
The resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Office of the Attorney General for the Commonwealth of Virginia Medicaid Fraud Control Unit. The matter was investigated by Assistant Attorneys General Ray Bowman, Airen Adamonis, Jessica Mackenzie, Candice Deisher, Adele Neiburg, and Assistant U.S. Attorney Robert McIntosh.
The Virginia Department of Medical Assistance Services assisted in the investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Maryland man admits to counterfeit chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Barry Eugene Dragovich, of Cumberland, Maryland, has admitted to a counterfeit charge, United States Attorney Bill Powell announced.
Dragovich, age 40, pled guilty to one count of “Uttering Counterfeit Obligations and Securities.” Dragovich admitted to passing counterfeit bills in May 2017 in Harrison County.
Dragovich faces up to 20 years incarceration and a fine of up to $250,000. 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 Sarah E. Wagner is prosecuting the cases on behalf of the government. The United States Secret Service and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Pleads Guilty to Two Virginia Beach Bank RobberiesRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to armed robbery of a credit union.
According to court documents, in August 2017, Marquis Larosa Buckley, 41, conducted an armed robbery of a SPE Federal Credit Union in State College, Pennsylvania. A few months later, in October 2017, Buckley conducted an armed robbery of a Fulton Bank and a PNC bank in Virginia Beach. Upon his arrest, Buckley admitted to the Virginia Beach police that he committed the armed robberies of the two banks in Virginia Beach and also told them about the robbery of the credit union in Pennsylvania. Buckley previously pleaded guilty to the two armed bank robberies in Virginia Beach and then testified against his co-conspirator at trial resulting in the conviction of the co-conspirator.
Buckley pleaded guilty to armed robbery and faces a maximum penalty of 20 years in prison when sentenced on October 3. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney William D. Muhr is prosecuting 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. 2:18-cr-2.
Local Amateur Radio Operator Agrees to Pay $7,000.00 to Settle Federal Complaint for Violations of the Federal Communications ActRead the Press Release
PITTSBURGH – An experienced and well-known local amateur radio operator agreed to pay the United States $7,000.00 to resolve allegations that he intentionally disrupted the communications of other amateur operators without their consent or permission, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations in a Complaint filed in Federal Court in Pittsburgh, Pennsylvania, against Brian Crow, a resident of Westmoreland County. The settled claims contend that on March 14, 2014, Crow intentionally and unlawfully engaged in one-way communications, which interfered with the licensed communications of other amateur operators and also failed to use his ‘call sign’ as required by Federal law and enforced by the Federal Communications Commission (FCC). Licensed amateur radio operators can only communicate with other operators who agree to participate. To allow otherwise would not only disrupt consensual communications among radio operators but would lead to a chaotic situation. Besides paying the above amount, Crow agreed that his license operating class will be reduced to Technician class for the next six months and agreed to discontinue contact with the individuals involved in this case. Crow has held an amateur radio operator license at the most advanced class since 1997, and obtained his first license in 1976.
"Allowing licensed amateur radio operators the freedom to converse with others in an orderly fashion and without unwanted disruption is one of the missions of the FCC," said U.S. Attorney Brady. "This complaint identifies one such individual who intentionally interfered with other law-abiding amateur radio operators."
This matter was investigated by the Enforcement Bureau of the Federal Communications Commission. Assistant United States Attorney Paul E. Skirtich handled the investigation that led to the filing of the Complaint and settlement on behalf of the United States.
The case is captioned as United States of America v. Brian Crow (No. 17-595).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Liberian War Criminal Living in Delaware County Convicted of Immigration Fraud and PerjuryRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Jucontee Thomas Woewiyu, 72, of Collingdale, Pennsylvania, was found guilty by a federal jury today of immigration fraud and perjury charges. Woewiyu lied on his application for U.S. citizenship by denying that he advocated the overthrow of any government by force or violence and by denying that he ever persecuted any person because of membership in a social group or their political opinion.
Woewiyu is a founder and the former Minister of Defense, chief spokesperson, and negotiator for the National Patriotic Front of Liberia (NPFL), which was an armed rebel group led by Charles Taylor and committed to removing the Samuel Doe government forcibly from power in Liberia in the late 1980s and 1990s. On numerous occasions over the years, Woewiyu publicly confirmed his prominent position in the NPFL and advocated the overthrow of the Doe government by force or violence.
During the defendant’s tenure, the NPFL conducted a particularly heinous and brutal military campaign, characterized by torture, rape, forced sexual slavery, conscription of child soldiers, and murder. The jury heard evidence from almost twenty Liberians who lived through Liberia’s notoriously brutal first civil war, from 1989 through 1995. At trial, multiple individuals testified about being forced to become child soldiers under Woewiyu and the NPFL. Additionally, the jury heard testimony about NPFL soldiers cutting off victims’ body parts in front of Woewiyu, while others described checkpoints with skulls and severed heads on stakes (some still dripping with blood) and intestines for ropes, as well as the ethnically based massacre of a village at the hands of the NPFL.
“The defendant’s tenure as Minister of Defense for the NPFL was marked by almost unimaginable violence and brutality,” said U.S. Attorney McSwain. “He attempted to evade all accountability for his gruesome and horrific crimes by fraudulently obtaining U.S. citizenship. Due to the hard work and perseverance of our prosecutors and law enforcement partners, he has nowhere left to hide. Finally, this defendant has been brought to justice. I hope the conviction today can provide some comfort, however belated, to all of his victims and their families.”
Since approximately January 13, 1972, Woewiyu has had Legal Permanent Resident status in the United States. On January 23, 2006, Woewiyu applied for U.S. citizenship by submitting a Form N-400. On that form, and in his immigration in-person interview, Woewiyu swore and certified under the penalty of perjury that, among other things, he had never advocated (either directly or indirectly) the overthrow of any government by force or violence, and that he had never persecuted (either directly or indirectly) any person because of race, religion, national origin, membership in a particular social group, or political opinion.
After a three week trial, the jury began its deliberations on Monday, July 2. The jury returned a verdict today, finding the defendant guilty of two counts of fraudulently attempting to obtain citizenship, two counts of fraud in immigration documents, two counts of false statements in relation to naturalization, and five counts of perjury.
"Today’s verdict clearly demonstrates that this nation will never be a safe haven for human rights violators and war criminals," said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “HSI will not allow our country to be a place where individuals seeking to distance themselves from their pasts can hide or evade detection.”
The case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Linwood C. Wright, Jr. and Nelson S. T. Thayer, Jr.
Las Vegas Man Sentenced to over Five Years in Prison for Possession of over 15,500 Images and Videos of Child Pornography Including Infants and ToddlersRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who possessed more than 15,500 photos and videos of child pornography, including the sexual abuse of infants and toddlers, was sentenced today to 68 months in federal prison to be followed by lifetime supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Ryan Austin Rother, 43, was sentenced by U.S. District Judge Jennifer A. Dorsey. He previously pleaded guilty without the benefit of a plea agreement to one count of possession of child pornography.
According to court documents, on October 13, 2016, Rother’s wife contacted the Las Vegas Metropolitan Police Department to report child pornography she found on her husband’s computer. An officer visited the residence and spoke with Rother’s wife. She showed the officer an image on her husband’s computer of a minor girl being sexually assaulted by a man. During the execution of a search warrant, a total of 39 devices belonging to Rother were seized from the residence. A forensic evaluation revealed 15,676 images and 40 videos of child pornography on four different devices. Of these child pornography files, more than 300 images depicted bondage and violence and more than 3,000 images depicted infants and toddlers.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) by calling the 24-hour hotline at 1-800-THE-LOST (1-800-843-5678) or by making a CyberTipline report at www.cybertipline.com.
The 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. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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LaPorte Indiana Man Sentenced to 88 Months in PrisonRead the Press Release
SOUTH BEND - Christopher M. Bangs, age 25, of LaPorte, Indiana was sentenced before District Court Judge Robert L. Miller, Jr. for transporting child pornography, announced U.S. Attorney Kirsch.
Bangs was sentenced to 88 months in prison followed by 5 years of supervised release. He was ordered to pay restitution in the amount of $27,500 total to six victims depicted in his child pornography collection.
According to documents in this case, from on or about April 17, 2017 to about May 17, 2017, Bangs uploaded and downloaded images and videos depicting child pornography using the internet. Bangs admitted that he possessed about 1,000 child pornography images and about 50 videos, some of which depicted sadistic images involving children and prepubescent children under the age of 12.
This case was investigated by the Department of Homeland Security with assistance from the Indiana State Police and the Saskatchewan, Canada Police Service. The case was handled by Assistant U.S. Attorney John Maciejczyk.
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Justice Department Files Denaturalization Lawsuit Against Chicago Man Convicted of Providing Material Support to TerroristsRead the Press Release
The Justice Department today filed a lawsuit seeking to revoke the naturalized U.S. citizenship of an individual convicted of providing material support to terrorists by, among other means, traveling abroad with the intent to murder or maim U.S. military forces in Iraq or Afghanistan. According to the civil complaint filed in federal court in the Northern District of Illinois, the individual allegedly concealed this conduct and other actions during his naturalization proceedings.
“The United States will use every available law enforcement tool to combat terrorism,” said Acting Associate Attorney General Jesse Panuccio. “Those who are naturalized in the United States swear to support and defend our Constitution and laws against all enemies. Those who have actively supported terrorism and concealed that fact cannot take that oath in good faith and should not have the benefit of continued citizenship. Civil denaturalization is thus one important tool in our anti-terrorism efforts. We will continue to zealously seek out and prosecute individuals like Mr. Ahmed.”
Khaleel Ahmed, 37, a native of India, was convicted pursuant to a guilty plea in 2009 of providing material support to terrorists through his efforts to travel abroad in order to murder or maim U.S. military forces in Iraq or Afghanistan, in violation of 18 U.S.C. § 2339A. As admitted in his criminal proceedings, between 2004 and 2007, Ahmed and his cousin, Zubair Ahmed, made preparations to travel abroad, and did in fact travel to Cairo, Egypt, with the intent of engaging in acts that would result in the murder or maiming of U.S. military forces. Upon returning from Cairo, the cousins discussed, sought, and received instruction on the use of firearms, including sniper rifles, and in counter-surveillance techniques. They also collected and distributed videos of attacks on U.S. military forces overseas, manuals on military tactics, and military manuals on weaponry. In 2009, the U.S. District Court for the Northern District of Ohio accepted the cousins’ guilty pleas, and in 2010 sentenced Khaleel Ahmed to eight years and four months in prison and three years of supervised release.
Although Ahmed’s crimes began while he was a permanent resident of the United States, he was not arrested and his criminal proceedings did not occur until after he naturalized in 2004. The civil denaturalization complaint alleges that Ahmed concealed and affirmatively misrepresented his criminal conduct throughout his naturalization proceedings, and that his application would have been denied had immigration authorities known about his provision of material support to terrorists.
"The United States will never be a safe haven for those seeking to support terrorists,” said Special Agent in Charge James M. Gibbons, HSI Chicago. “When individuals lie to obtain immigration benefits, the system is severely undermined and the security of our nation is put at risk.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by OIL-DCS’s National Security and Affirmative Litigation Unit, with support from ICE’s Chicago Office of the Chief Counsel and ICE-HSI Chicago.
The claims made in the complaint are allegations only, and there has been no determination of liability.
Fort Dodge Man Sentenced to Federal PrisonRead the Press Release
A man who possessed firearms while distributing cocaine was sentenced July 3, 2018, to 10 years in federal prison.
Jovon Naylor, 27, from Fort Dodge, Iowa, received the prison term after a January 25, 2018, guilty plea to conspiring to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and illegal possession of a firearm.
At the plea hearing, Naylor admitted to conspiring to distribute cocaine in the Fort Dodge area from 2016 through September 2016. Naylor was involved in a number of controlled purchases of cocaine with law enforcement. Naylor also admitted that when he distributed cocaine he possessed firearms during the drug deals. Drug dealers typically carry firearms for protection of their drugs and drug proceeds. Naylor further admitted to previously being convicted of possession of a firearm or offense weapon by a felon in the Iowa District Court for Webster County on April 13, 2012. Federal law prohibits persons previously convicted of a felony from possessing firearms.
Naylor was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Naylor was sentenced to 120 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Naylor is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. The case was prosecuted by Assistant United States Attorney Mikala M. Steenholdt and investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Dodge Police Department, DCI Criminalistics Laboratory, and the Webster County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3049. Follow us on Twitter @USAO_NDIA.
Former Massachusetts State Trooper Pleads Guilty to Overtime FraudRead the Press Release
BOSTON – A former Massachusetts State Trooper pleaded guilty yesterday in federal court in Boston in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Per an agreement unsealed today, Gregory Raftery, 47, of Westwood, pleaded guilty to one count of embezzling funds from a state agency receiving federal funds. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 25, 2018. On June 26, 2018, Raftery was charged by Information which was unsealed today.
At the plea hearing, Raftery admitted that in 2015 and 2016, he was not present and did not work for hundreds of hours of overtime shifts for which he had been paid by the Massachusetts State Police. Raftery admitted that he frequently left overtime shifts early, and, on occasion, did not work overtime shifts at all. To hide this conduct, Raftery submitted bogus motor vehicle citations that were never issued to operators, and then claimed on the citations and internal MSP paperwork that they had been written during overtime shifts that, in reality, Raftery did not work.
Raftery acknowledged that in 2015 he was paid over $24,000, and in 2016, he was paid over $30,000 for overtime hours that he did not work.
On Wednesday, June 27, 2018, three members of the MSP – two recently retired and one recently suspended – were arrested and charged in criminal complaints with embezzling funds from a state agency receiving federal funds. Former Lieutenant David Wilson, 57, of Charlton; Trooper Gary Herman, 45, of Chester; and Former Trooper Paul Cesan, 50, of Southwick, pleaded not guilty during an initial appearance in federal court in Boston and are scheduled to appear for a detention/probable cause hearing on Tuesday, July 10, 2018.
The charge of embezzling funds from a state agency receiving federal 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. 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.
Former Glenbeulah, WI, Man Sentenced to 133 Months in Federal Prison for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger announced that on July 2, 2018, Richard L. Kraemer (age: 47) formerly of Glenbeulah, Wisconsin, was sentenced to 133 months in federal prison for possession of child pornography, to be followed by 8 years of supervised release.
Kraemer was charged with five counts of distribution of child pornography and one count of possession of child pornography. The charges stemmed from an investigation led by the Federal Bureau of Investigation’s Milwaukee Division. An FBI Task Force Officer was conducting an online investigation on the BitTorrent network for offenders sharing child pornography. On five separate dates, the FBI Task Force Officer was able to download child pornography that Kraemer made available. A search warrant was obtained by the FBI Task Force Officer for Kraemer’s residence to search for child pornography. Forensic examination of the devices seized from Kramer’s residence revealed that he possessed numerous the images of children, including children as young as 6 months old.
According to United States Attorney Krueger, “Protecting our nation’s children is a top priority for the U.S. Department of Justice. This lengthy sentence should serve as a warning to other predators.” Krueger also commended the work of the FBI Task Force and the Sheboygan County Sheriff’s Office to support this prosecution.
The sentence in this case was imposed by the Honorable Pamela Pepper, United States District Judge. Kramer was previously convicted of first degree and second degree sexual assault by the State of Wisconsin.
This case was prosecuted in federal court as part of “Project Safe Childhood,” the Department of Justice’s nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children using the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Penelope L. Coblentz.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Former Attorney Sentenced for Fraud Involving Ponzi SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that a James A. MacCallum, 46, of Bemus Point, NY, who was convicted of mail fraud, was sentenced to serve 84 months in federal prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay $2,036,397 in restitution.Assistant U.S. Attorney Michael DiGiacomo, who handled the prosecution of the case, stated between January 2008 and December 2010, the defendant, a practicing attorney at the time, devised a scheme to defraud investors out of over $2,000,000. As part of the scheme, MacCallum encouraged some victims to liquidate other investments in order to benefit from his false and fraudulent higher rates of return. The defendant claimed that his investments were secured by real estate and life insurance policies. However, the Government’s evidence demonstrated that the defendant was using victim investments to pay back earlier investors and to pay personal and other expenses such as personal travel and office expenses. MacCallum received over $2,000,000 from victim investors.
The sentencing is the result of investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs, and More Than $23.6 MillionRead the Press Release
SIOUX FALLS, SD – United States Attorney Ron Parsons announced that John Edward Monette, 49, of Sioux Falls, South Dakota, has been indicted as part of a national undercover operation targeting Darknet vendors. Monette was indicted on May 8, 2018, for Conspiracy to Distribute a Controlled Substance.
The Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
John Edward Monette was identified by HSI New York during an undercover operation as having exchanged Bitcoin for cash on numerous occasions. Between May 31, 2017, and October 24, 2017, HSI New York conducted 11 undercover Bitcoin for U.S. currency transactions with Monette that totaled $19,000. Monette was also identified as the intended recipient of numerous international mail seizures containing MDMA.
MDMA (3, 4-methylenedioxymethamphetimine, also known as ecstasy) is an illegal synthetic drug that causes both hallucinogenic and stimulant effects. Most MDMA users are teenagers or young adults. MDMA is a Schedule I substance under the Controlled Substances Act. Schedule I substances, which include heroin and LSD, have a high potential for abuse and serve no legitimate medical purpose.
“Criminals believing that their illicit activities on the so-called Darknet will elude the attention of law enforcement had better think again,” said U.S. Attorney Parsons. “This operation is just the beginning.”
This extensive Darknet operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
- Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
In addition to Monette, others who have been charged federally, include:
- Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
- Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
- Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
- Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
- In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.
The charges and allegations contained in an indictment are merely accusations and defendants are considered innocent unless and until proven guilty.
Family Practice Doctor Pays $360,000 to Settle False Claims Act AllegationsRead the Press Release
PITTSBURGH – Brent E. Clark, M.D., a former family practice doctor in Pittsburgh, agreed to pay $360,000 to the United States to settle claims that he violated the False Claims Act by submitting or causing to be submitted false claims to Medicare and Medicaid for medically unnecessary and unreasonable services, United States Attorney Scott W. Brady announced today.
Between February 2015 and February 2017, Clark billed Medicare and Medicaid for medically unreasonable and unnecessary office visits and procedures and falsified records to support the billings. The settlement follows Clark’s earlier guilty plea and sentencing on related criminal charges.
Assistant United States Attorney Rachael L. Mamula handled the investigation that led to this civil settlement on behalf of the United States.
United States Attorney Brady commended the Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation for conducting the investigation.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault by Strangulation and Suffocation, Child Abuse, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Carl Iron Hawk, age 38, was indicted on June 19, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 27, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 24, 2018, Iron Hawk assaulted his intimate partner by strangulation, suffocation, and with a dangerous weapon, which caused serious bodily injury to the victim. The Indictment further alleges that Iron Hawk abused two victims who had not attained the age of seven (7) years old.
The charges are merely accusations and Iron Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Iron Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set.
Disbarred Attorney Admits Defrauding Former Clients and Law Firm InvestorsRead the Press Release
NEWS RELEASE SUMMARY – July 3, 2018
SAN DIEGO – Clayton Marlow Anderson, Jr., a former attorney based in La Mesa, California before his disbarment in 2015, pled guilty today to defrauding investors and clients of over a million dollars. Anderson also admitted to money laundering in connection with his fraud scheme, known alternatively as the “Clayton M. Anderson Monthly Income Plan”, “Anderson Plan”, or “A-Plan.”
During a hearing this afternoon before U.S. Magistrate Judge Karen S. Crawford, Anderson acknowledged that he created “A-Plan” to solicit loans to finance the costs and fees related to construction defect lawsuits brought by his law firm. Anderson acknowledged that from 2005 until 2014, he solicited unsecured loans from six individuals and paid them high rates of interest between 8% and 13% each year.
As part of his plea, Anderson admitted that in 2010, owners of the Jefferson Pointe Professional Corporation (“JPPC”) hired Anderson to represent them in a construction defect lawsuit against the builders of their office park in Murrieta, California. Anderson eventually negotiated a $1.82 million settlement for JPPC in October 2012. Instead of paying his clients their rightful share of the legal settlement, however, Anderson sent them a letter on behalf of “A-Plan Investment Services, Inc.” promising JPPC a 13% annual return on their “investment.” At today’s hearing, Anderson admitted that his letter contained multiple false claims, including that A-Plan had over $1 million under management and that A-Plan was the beneficiary of a $4.4 million insurance policy on his life. Anderson admitted his clients invested $800,000 of their legal settlement into “A-Plan” in reliance on his false claims, and that he engaged in other fraudulent conduct toward his clients.
Anderson specifically admitted that on February 19, 2013, he made a $182,549.69 bank transfer to conceal that he had already taken his client’s settlement money out of his client trust account without his client’s knowledge or consent, and to hide from his clients the precarious financial situation of both his law firm and “A-Plan.” Anderson also admitted that he engaged in a money laundering transaction on January 2, 2013, when he transferred over $30,000 in money derived from his fraud scheme into a retirement account under his control.
In addition to these specific transactions alleged in the Information filed against him, Anderson admitted that his fraud caused his clients to lose over $600,000, and that the six other A-Plan participants lost over $700,000 in money loaned to him. Anderson also admitted misrepresenting and concealing a variety of information from the six other A-Plan participants, including his law firm’s bankruptcy, his decision to forfeit all outstanding legal settlement money to the bankruptcy trustee, and his suspension and eventual disbarment by the California State Bar in January 2015. Anderson admitted that if A-Plan’s participants had been aware of those facts, they would not have continued to participate in A-Plan, and that his misrepresentations and omissions prevented them from recouping their investments or at the very least mitigating their losses – totaling $1,362,257.50.
“Clayton Anderson put his own financial interests above those of his clients, to whom he owed both legal and ethical duties,” said U.S. Attorney Adam L. Braverman. “This prosecution demonstrates the commitment of the United States Attorney’s Office to protecting the rights of investors – especially those investing with their own attorney – to candid, truthful information.”
“The FBI will investigate and bring those to justice who breach the attorney-client trust relationship by committing fraud and deceit,” commented FBI Special Agent in Charge John Brown. “Today, the Defendant Clayton Anderson, Jr., a former attorney, admitted to his A-Plan fraud scheme and will face justice for those actions.”
“As an attorney, Anderson had a fiduciary responsibility to safeguard his client’s money. Anderson violated his ethical duty by treating his clients’ trust account as a piggy bank,” said R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation. “IRS Criminal Investigation will continue to protect the integrity of attorney client trust accounts, and ensure that attorneys who do not follow the duties imposed on them by law are held accountable.”
As a part of his plea agreement, Anderson agreed to pay over $1.5 million in restitution to the victims of his crimes. Anderson faces up to 30 years in federal prison and a fine of up to $2,974,515.00 at his sentencing hearing before the Hon. Cathy Ann Bencivengo on September 28, 2018.
DEFENDANT Case Number 18-cr-3075-CAB
Clayton Marlow Anderson, Jr. Mira Loma, CA.
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment, $2,724,515 fine, restitution
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
Deadwood Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Deadwood, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Mamola, age 41, was sentenced on June 29, 2018, to 96 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mamola was charged on January 24, 2017. The conviction stems from Mamola conspiring with another person to distribute more than 50 grams of methamphetamine near Deadwood.
This case was investigated by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Mamola was immediately turned over to the custody of the U.S. Marshals Service.
Columbus Man Sentenced to 170 Years for Convictions on Federal Child Pornography and Alien Transporting ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, New Mexico State Police Chief Pete Kassetas, and Deputy Chief Justin Dunivan of the Las Cruces Police Department announced that a resident of Columbus, N.M., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M., to 170 years of imprisonment for convictions on child pornography and alien transporting charges in two separate cases.
U.S. District Judge Robert C. Brack sentenced Samuel Elliott, 34, to 170 years of imprisonment in the first case for his conviction on three counts of production of child pornography and four counts of possession of child pornography. Elliott also was ordered to pay $210,012 in restitution to each of the three children victimized by Elliott’s child pornography production scheme. Judge Brack sentenced Elliott to 15 months of imprisonment in the second case for his conviction on an alien transporting charge, to be served concurrent to the sentence imposed on the child pornography charges.
In announcing the sentence, U.S. Attorney John C. Anderson commended the exemplary collaborative investigative efforts of HSI, the New Mexico State Police and the Las Cruces Police Department for the investigation leading to Elliott’s conviction and for rescuing his victims. The U.S. Attorney added, “The victims in cases like this one are children who cannot protect themselves from harm. As the result of the sentence imposed, this sexual predator will never again exploit another child. His sentence should send a forceful message that law enforcement in New Mexico is committed to the protection of our children and will vigorously investigate and prosecute predators who exploit and abuse them.”
“Yesterday’s 170-year sentencing is an example of the U.S. government’s assurance that individuals will be held accountable for heinous acts committed against children,” said Jack P. Staton, Special Agent in Charge of HSI El Paso. “HSI and our law enforcement partners stand firm in our commitment to investigate and prosecute criminals whose heinous acts victimize and scar children for life.”
“I’m proud of the men and women of the New Mexico State Police and their dedication to keeping the children of New Mexico safe,” said New Mexico State Police Chief Pete Kassetas. “I’m pleased that justice was served and this predator can no longer harm our kids.”
“The Las Cruces Police Department is honored to work alongside our counterparts, from local and federal agencies, to help protect our children from offenders that are poisoning our communities,” said Las Cruces Police Deputy Chief Justin Dunivan. “We believe our actions will have a significant impact and ensure that the defendant never harms another child.”
In the alien transporting case, Elliott and his brother Robert Steven Elliott, II, 35, also a resident of Columbus, were charged by criminal complaint on Sept. 4, 2013, with conspiring to transport illegal aliens on Aug. 28, 2013, in Luna County, N.M. The two were indicted on the same charge on Dec. 11, 2013. Robert Steven Elliott pled guilty to the indictment charging him with conspiring to transport illegal aliens on Jan. 22, 2014, and was sentenced on Oct. 1, 2014, to time served followed by three years of supervised release. Elliott pled guilty to the same charges on March 20, 2014.
In the child pornography case, Elliott was charged in an eight-count indictment with production and possession of child pornography. Counts 1 through 3 of the indictment alleged that between Dec. 2012 and July 2013, Elliott used three young children to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. According to the indictment, two of the children were between one and five years of age and the third child was over the age of five years. The remaining five counts alleged that Elliott possessed child pornography in July 2013. The indictment asserted that Elliott committed all eight crimes in Luna County, N.M. A superseding indictment alleging the same charges was filed in July 2015.
On June 26, 2018, Elliott pled guilty to three counts of producing visual depictions of minors engaged in sexually explicit conduct and four counts of possessing material containing images of child pornography. In his plea agreement, Elliott admitted using a video camera to record a video of himself engaging in sexually explicit conduct with a child between one and five years of age. Elliott also admitted using a video camera to produce sexually explicit visual depictions of a sleeping child between five and eleven years of age. Elliott admitted committing these two crimes between Dec. 2012 and July 2013. Elliott also admitted that on Dec. 10, 2012, he used his iPhone to produce sexually explicit depictions of a third child who was between one and five years of age.
In his plea agreement, Elliott also acknowledged that in July 2013, the New Mexico State Police executed a search warrant at his residence and seized his iPhone, a desktop computer and a hard-drive. He also acknowledged that HSI executed a search warrant on his Dropbox online storage account. Elliott acknowledged that forensic examinations recovered thousands of images of child pornography from his iPhone; 48 images of child pornography from his hard-drive, approximately 300 images of child pornography from his desktop computer, and 72 videos of child pornography from his Dropbox online storage account.
The case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Las Cruces Police Department, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case was prosecuted by Assistant U.S. Attorneys Alexander B. Shapiro and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Canton man indicted on fentanyl and firearms chargesRead the Press Release
A Canton man was indicted on fentanyl and firearms charges.
Michael J. Meadows, 48, was indicted on one count of possession with intent to distribute fentanyl, one count of possession of a firearm in furtherance of drug trafficking and one count of being a felon in possession of firearms and ammunition.
Meadows on Jan. 18 possessed at least 40 grams of fentanyl, a Springfield .45-caliber pistol and ammunition. Meadows was prohibited from having firearms or ammunition because of prior convictions, including cocaine possession, having a weapon under disability and aiding and abetting distribution of crack cocaine, according to the indictment.
This case was investigated by the Food and Drug Administration’s Office of Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.
If convicted, the defendant’s sentence will be determined by the Court after review of 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 violations. 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 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.
Bank Manager Charged with Embezzling $850KRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced a federal grand jury in New Haven returned an indictment yesterday alleging that STEPHEN CARBONELLA, 59, of Hamden, embezzled funds from his employer, Webster Bank Corporation, where he served as bank manager of the Orange branch office.
CARBONELLA was arrested this morning. He appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty and was released on a $200,000 bond.
According to the indictment and statements made in court, between approximately 2003 and 2017, CARBONELLA withdrew more than $850,000 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, and used the embezzled funds for his own purposes. He also took steps to conceal his misconduct, including by forging signatures and falsifying documents.
The indictment charges CARBONELLA with one count of embezzlement by a bank officer or employee, an offense that carries a maximum term of imprisonment of 30 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Attorney General Jeff Sessions Rescinds 24 Guidance DocumentsRead the Press Release
Attorney General Jeff Sessions today announced that, consistent with his November 2017 memorandum prohibiting the Department from making rules without following the procedures required by Congress, he is rescinding 24 guidance documents that were unnecessary, outdated, inconsistent with existing law, or otherwise improper.
“The American people deserve to have their voices heard and a government that is accountable to them. When issuing regulations, federal agencies must abide by constitutional principles and follow the rules set forth by Congress and the President. In previous administrations, however, agencies often tried to impose new rules on the American people without any public notice or comment period, simply by sending a letter or posting a guidance document on a website. That’s wrong, and it’s not good government.
“In the Trump administration, we are restoring the rule of law. That’s why in November I banned this practice at the Department and we began rescinding guidance documents that were issued improperly or that were simply inconsistent with current law.
“Today we are rescinding 24 more and continuing to put an end to unnecessary or improper rulemaking.”
In February 2017, President Donald Trump issued Executive Order 13777, which calls for agencies to establish Regulatory Reform Task Forces, chaired by a Regulatory Reform Officer, to identify existing regulations for potential repeal, replacement, or modification. The Department of Justice Task Force is chaired by Acting Associate Attorney General Jesse Panuccio.
In November 2017, the Attorney General issued a memorandum prohibiting Department of Justice (DOJ) components from using guidance documents to circumvent the rulemaking process and directed components to identify guidance documents that should be repealed, replaced, or modified.
The Task Force identified 25 guidance documents for repeal in December 2017 and has identified 24 more documents to repeal this month. The Task Force is continuing its review of existing guidance documents to repeal, replace, or modify.
The list of 24 guidance documents that DOJ has withdrawn in 2018 is as follows:
- March 17, 2011, OJJDP Memorandum re Status Offenders and the JJDPA.
- October 20, 2010 OJJDP Memorandum re Status Offenders and the JDDPA.
- June 17, 2014, Revised Guidance on Jail Removal and Separation Core Requirements.
- Disaggregating MIP Data from DSO and/or Jail Removal Violations: OJJDP Guidance for States, 2011.
- OJJDP Policy Guidance for Nonsecure Custody of Juveniles in Adult Jails and Lockups; Notice of Final Policy.
- OJJDP Guidance Manual: Audit of Compliance Monitoring Systems.
- OJJDP Disproportionate Minority Contact Technical Assistance Manual, Fourth Edition, 2009.
- BJA State Criminal Alien Assistance Program Guidelines, 2016.
- NIJ April 6, 2016, Dear Colleague Letter regarding additional topics and research questions of high priority and particular interest to the NIJ as part of its Comprehensive School Safety Initiative.
- Looking for the Best Mortgage, December 14, 2010.
- FRB: Putting Your Home on the Loan Line is Risky Business, August 6, 2015.
- Federal Protections Against National Origin Discrimination, April 30, 2006.
- Look at the Facts, Not at the Faces: Your Guide to Fair Employment, Approx. July 2009.
- Refugees and Asylees Have the Right to Work, May 2011.
- Language Assistance Self-Assessment and Planning Tool for Recipients of Federal Financial Assistance, on or before February 12, 2003.
- FAQs About the Protection of Limited English Proficiency (LEP) Individuals under Title VI of the Civil Rights Act of 1964 and Title VI Regulations, March 1, 2011.
- Draft Language Access Planning and Technical Assistance Tool for Courts, December 18, 2012.
- December 2, 2011 Dear Colleague Letter Regarding the Use of Race by Educational Institutions.
- 2011 Guidance on the Voluntary Use of Race to Achieve Diversity in Postsecondary Education dated December 2, 2011.
- 2011 Guidance on the Voluntary Use of Race to Achieve Diversity and Avoid Racial Isolation in Elementary and Secondary Schools dated December 2, 2011.
- September 27, 2013 Dear Colleague Letter on the Voluntary Use of Race to Achieve Diversity in Higher Education After Fisher v. University of Texas at Austin [Fisher I].
- September 27, 2013 Questions and Answers About Fisher v. University of Texas at Austin [Fisher I].
- May 6, 2014 Dear Colleague Letter on the Supreme Court Ruling in Schuette v. Coalition to Defend Affirmative Action.
- September 30, 2016 Question and Answers About Fisher v. University of Texas at Austin [Fisher II].
Attorney General Jeff Sessions Announces Bradley Weinsheimer to Replace Departing Associate Deputy Attorney General Scott SchoolsRead the Press Release
Today, Attorney General Jeff Sessions announced that he will be appointing Bradley Weinsheimer as Acting Associate Deputy Attorney General for the U.S. Department of Justice. Weinsheimer will replace Scott Schools, who is leaving on July 6th to take a position in the private sector after close to two decades of service in the Department of Justice.
Weinsheimer will began serving as Acting Associate Deputy Attorney General upon Schools’ departure. In this position he will have no role in overseeing the Special Counsel.
“Scott Schools has been a fabulous lawyer for the Department of Justice for close to twenty years, rising through the ranks at the Department to become our most senior career attorney,” said Attorney General Sessions. “He has served with distinction in several positions in the Department, including as an Assistant U.S. Attorney, the U.S. Attorney for South Carolina and the Northern District of California, and as an Associate Deputy Attorney General. Scott has provided invaluable leadership and counsel in his years at the Department, and his service is an example to all. He will be greatly missed, and I wish him the best in his future endeavors.”
Weinsheimer has been at the Department of Justice for 27 years, having been appointed as an Assistant U.S. Attorney in DC in 1991, where he held that position for 20 years. At the United States Attorney’s Office, he tried dozens of cases, including homicides, drug and violent crime conspiracies, and public corruption and bank fraud cases. He held numerous supervisory positions, including twice serving as the Chief of the Superior Court Division.
From June 2011 until March 2016, he served as the Deputy Counsel in Office of Professional Responsibility (OPR), and since March 2016 have worked in the National Security Division, where he has served as the Chief of Staff and Director of Risk Management and Senior Counsel, his current position.
Weinsheimer has received numerous awards, including two Executive Office for United States Attorneys’ Director’s awards for superior management and administration, as well as the Attorney General’s Claudia Flynn Award for Professional Responsibility.
Since 2006, he has been on the adjunct faculty of George Washington University Law School, where he teaches trial advocacy and criminal practice.
He is a 1985 graduate of Marquette University and a 1989 graduate of the University of Virginia law school.Alabama Woman Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
COLUMBUS: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that a guilty plea was entered on July 3, 2018, in front of United States District Judge Clay D. Land by 64 year old Darlene Corbett of Phenix City, Alabama, to one count of Conspiracy to Commit Wire Fraud.
Beginning on April 30, 2015, and continuing to September 21, 2016, Darlene Corbett embezzled over $950,000 from her employer while working as the Chief Financial Officer (CFO) of The Grand Reserve Columbus, an entity owned by her stepson. Of this amount, it was discovered that over $53,000 in unauthorized checks and almost $700,000 in unauthorized wire transfers went directly to a third party. These disbursements were sometimes disguised as payments for work performed for the third party though this person had no affiliation with the Grand Reserve Columbus.
Initially, Ms. Corbett maintained that the transactions were simply repayments of cash loans that the third party had given to Ms. Corbett to help finance construction projects of The Grand Reserve Columbus. Both Ms. Corbett and the third party maintained that the source of these loans were casino winnings of the third party.
In her signed, written plea agreement filed with the court, Ms. Corbett admitted that this story was not true and she had been induced to steal from her employer by the third party, who promised a future financial windfall to Ms. Corbett stemming from a pending medical malpractice settlement, a pending estate settlement, and other schemes. She also admitted to giving the third party a considerable amount of her personal savings during the pendency of the conspiracy.
Darlene Corbett is facing up to 20 years imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. She is also jointly and severally liable for $956,918.50 in restitution.
“One of the missions of the United States Attorney’s Office is to bring to justice those who choose to defraud the citizens of the Middle District of Georgia. I want to thank the Federal Bureau of Investigation for their fine work on this matter,” said United States Attorney Peeler.
Sentencing in the case is scheduled for October 30, 2018 at 9:30 am.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
A Message from the Attorney General on Independence DayRead the Press Release
July 4, 2018
Colleagues—
Two-hundred forty-two years ago today, the Second Continental Congress declared independence from Great Britain. Thirteen colonies became “one people” with “separate and equal station” to the nations of the world.
It was a bold experiment whose outcome was uncertain. But today we see that it has proven the most successful political experiment in world history.
That success has been due in no small measure to the dedicated and principled men and women who have served in our legal system over the centuries.
Our Founding document states clearly the purposes of government and it gives us a standard by which to measure our success. “Governments are instituted” to secure and protect the God-given, inalienable rights of their citizens in order to enable their “safety and happiness.”
That is our work every day. We are servants of the people.
And so—whether you’re a litigator in court fighting for civil rights, an investigator finding evidence of crime, law enforcement officers protecting your community, or you provide support to the women and men performing these crucial functions—you play a valuable role in this noble mission. Indeed, I believe it is the highest secular calling that there is.
I am grateful for your contribution to the mission of the Department of Justice, and I want to wish you all a very Happy Independence Day.
Jeff Sessions
Attorney General
Monday 2 July 2018
Wheeling woman sentenced for lying to the US MarshalsRead the Press Release
WHEELING, WEST VIRGINIA – Melinda Ray McCardle, of Wheeling, West Virginia, was sentenced today to three years probation for making a false statement, United States Attorney Bill Powell announced.
McCardle, age 29, pled guilty to one count of “False Statement to a Federal Agent” in April 2018. McCardle admitted to lying to a Deputy U.S. Marshal about the whereabouts of Deandre Davis, a fugitive wanted for murder. The crime occurred in August 2017 in Brooke County, West Virginia.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service, the Mountain State Fugitive Task Force, and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Upshur County man sentenced for his role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Moriarty, of Buckhannon, West Virginia, was sentenced today to 18 months incarceration for distributing oxycodone, United States Attorney Bill Powell announced.
Moriarty, age 25, pled guilty to “Distribution of Oxycodone” in January 2018. Moriarty admitted to selling oxycodone in June 2015 in Upshur County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation, which was initiated as an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The Task Force consists of the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
Senior U.S. District Judge Irene M. Keeley presided.United States Files Civil Complaint against Two Companies for Environmental Cleanup Cost of Nassau County Superfund SiteRead the Press Release
The United States filed a civil complaint today in federal court in Brooklyn against IMC Eastern Corporation (“IMC”) and Island Transportation Corporation (“ITC”), seeking to recover the costs associated with the investigation and cleanup of groundwater contamination at the New Cassel/Hicksville Groundwater Contamination Superfund Site (“the Site”) in the towns of Hempstead, North Hempstead and Oyster Bay, in Nassau County, New York. The Site is approximately 6.5 square miles and includes residential, commercial and industrial areas.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator, United States Environmental Protection Agency, Region 2 (EPA), announced the filing.
“Maintaining the safety of public water supply wells is essential to the health and well-being of our communities,” stated United States Attorney Donoghue. “Today’s filing serves as a warning to those who pollute our environment but refuse to take financial responsibility for their actions. This Office will seek the recovery of costs, and civil monetary penalties where appropriate, from those who cause or contribute to environmental contamination.”
“Superfund is a cornerstone of EPA’s core mission. This action is necessary to advance cleanup efforts and protect public health,” stated EPA Regional Administrator Lopez. “The Superfund program is intended to make sure that those who contributed to contamination help pay for its cleanup. Simply stated, the complaint will help EPA seek reimbursement from the responsible parties for the taxpayer money it spent investigating the site.”
According to the complaint, IMC and ITC operated facilities within the New Cassel Industrial Area, an approximately 170-acre industrial and commercial area located north (hydrologically upgradient) of the part of the Site designated by EPA as Operable Unit 1 (OU1). Specifically, IMC was a tenant at 570 Main Street, and ITC was a tenant at 299 Main Street, both located in Westbury, New York.
As alleged, IMC and ITC used hazardous substances called volatile organic compounds (VOCs) in connection with their businesses. These hazardous substances, which include tetrachloroethylene (PCE), trichloroethylene (TCE), and 1,1,1-trichloroethane (1,1,1-TCA), were released at IMC’s and ITC’s facilities and have migrated south (hydrologically downgradient) of these facilities, impacting Long Island’s sole source drinking water aquifer. Exposure to high levels of VOCs such as PCE, TCE, and 1,1,1-TCA can cause a variety of adverse human health effects, such as damage to the nervous system, liver, kidneys, and reproductive system. VOCs may also be harmful to unborn children and are considered possible carcinogens. Consistent with the Safe Drinking Water Act that protects public drinking water supplies throughout the nation, the public water suppliers in the area of the Site monitor water quality regularly and have previously installed treatment systems to remove VOCs from groundwater prior to distribution to the public.
From 1953 through March 1992, IMC manufactured and sold motors and air movers, and used PCE, TCE, and 1,1,1-TCA in its manufacturing processes. Soil and sediment sampling conducted in 1993, and groundwater sampling conducted in 1998 and 1999, each revealed VOC contamination, including PCE, TCE, and 1,1,1-TCA, at the 570 Main Street property. From at least 1971 to 1979, ITC used its facility to wash and repair its trucks and to refuel them with gasoline. ITC used TCE as part of its truck maintenance activities. Groundwater sampling conducted in 2000, and soil sampling conducted in 2001, each revealed TCE contamination at the 299 Main Street property.
According to the complaint, contamination from defendants’ respective properties contributed to the groundwater contamination at the OU1 portion of the Site.
The complaint asserts claims under the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as the Superfund statute. The Superfund statute protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s high-priority hazardous sites and has responded to environmental emergencies, oil spills and natural disasters.
The government’s case is being handled by the Office’s Civil Division. Assistant United States Attorney Alex S. Weinberg is in charge of the litigation with assistance from Sharon Kivowitz, Assistant Regional Counsel, EPA Region 2.
E.D.N.Y. Docket No. 18-CV-3818
U.S Attorney thanks law students for summer internshipsRead the Press Release
WHEELING, WEST VIRGINIA – The United States Attorney’s office had the opportunity to employ four interns this summer. The law students assisted in the Wheeling, Clarksburg, and Martinsburg offices in the criminal and civil divisions.
“Our district greatly benefited from the work of our student interns this summer. It is always great to have smart young law students work with us. They provide valuable research, written products and fresh insights. They also have the opportunity to see the judicial process and our lawyers in action. We all benefit from such experiences,” said United States Attorney, Bill Powell.
Samantha Berry is from Moundsville, West Virginia. She graduated from West Virginia University in 2017 with a Bachelor of Arts in Criminology and a minor in Law & Legal Studies. Samantha is a rising second year law student at West Virginia University College of Law. She assisted in the Wheeling office.
Lakyn Cecil is from New Martinsville, West Virginia. She graduated from WVU in the spring of 2017 as Cum Laude with her Bachelors of Arts in Criminology and a double minor in Forensic and Investigative Science and Biology. Cecil went on to attend WVU College of Law in the fall of 2017. She also assisted in the Wheeling office.
Tim Dudley is from Utah where he earned a Bachelor’s degree from Brigham Young University. He is currently studying law at Pepperdine University. Tim is assisting in the Martinsburg office.
Jeremy Bumgardner is from Bridgeport, West Virginia. He holds a Bachelor of Science degree in Recording Industry Management and Commercial Songwriting from Middle Tennessee State. He is currently a rising 3L at WVU College of Law. Jeremy is assisting in the Clarksburg office.
The internships included an inside look at the federal judicial system and the federal and state corrections system.
State Department Employee Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to production of child pornography.
According to court documents, over at least a two year period, Skydance MacMahon, 44, conspired with an adult in Canada to produce over a thousand sexually explicit images and videos of minor children in Canada. These images and videos were produced at the direction of MacMahon using Skype and hidden cameras. MacMahon distributed these image and video files to other users and consumers of child pornography by providing access to the files on his cloud storage services and also by directly sending the files to other users. In addition to the child pornography images and videos MacMahon himself created, he also received and possessed thousands of images and videos of child pornography.
During the time he committed these offenses, MacMahon was a Digital Media Administrator at the Foreign Services Institute of the U.S. Department of State in Arlington.
MacMahon pleaded guilty to conspiring to produce child pornography and producing child pornography. He faces a mandatory minimum of 15 years and a maximum penalty of 60 years in prison when sentenced on October 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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. Attorneys’ 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.
Significant assistance was provided by the FBI’s Cincinnati Field Office, the U.S. Department of State Office of Inspector General’s Cyber Forensic Division, the Royal Canadian Mounted Police, the Halifax Regional Police, Crown Prosecution Service, Special Prosecution Section, the Nova Scotia Public Prosecution Service, the Arlington County Police Department, and the Arlington County Commonwealth’s Attorney’s Office.
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-261.
St. Louis Man Sentenced to 17 Years for Sex TraffickingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a St. Louis, Mo., man was sentenced in federal court today to his role in a sex trafficking conspiracy.
Calvin Anthony Miller, also known as “Cerius Blacc,” 35, was sentenced by U.S. District Judge Stephen R. Bough to 17 years and 6 months in federal prison without parole. In addition to the conspiracy, Miller was sentenced to two counts of transporting an individual across state lines for prostitution.
Miller admitted that he engaged in the conspiracy from approximately March 2016, to Oct. 15, 2016, which victimized two women whom he forced to engage in prostitution.
This case is the result of Operation Cross Country X, an international FBI investigation of sex trafficking in partnership with local law enforcement agencies.
According to court documents, a federal undercover agent assisted the Independence, Mo., Police Department, posing as a customer attempting to hire a prostitute for sex. On Oct. 14, 2016, the undercover agent located an online listing that included provocative and partially nude photos along with a description and some possible acts that she was willing to do. The agent contacted her and she agreed to meet him at a hotel.
This witness provided law enforcement officers with information on Miller, who she said was a violent pimp, and his cousin, co-defendant Henry Dailey, 37, also of St. Louis. Dailey pleaded guilty on June 26, 2017, to transporting an individual across state lines for prostitution.
The witness led law enforcement to a hotel in Independence where they encountered Victim 1 and Victim 2. Victim 2 told law enforcement officers that Miller was violent and abusive. She said she met Miller in March 2016 and had never been allowed to go back home. Victim 2, who said Miller broke her hip during one violent encounter, told officers, “If I tell you anything he will kill me” and started crying. She stated that she did not believe the police could provide enough security to protect her from “these guys.”
Victim 1 told the detective that she wanted away from the group and just wanted to go home.
While at the hotel, agents determined that Miller had rented two rooms on the third floor. Agents made contact with Miller on the third floor. Miller was noncompliant with law enforcement requests, was directed to the ground, and cuffed.
Each of the victims told law enforcement officers that Miller required them to work in a prostitution ring based in St. Louis, threatening them with violence and death if they tried to leave, and took all of their money. They also said that Miller forced them to use drugs to keep them addicted and dependent on them.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Independence, Mo., Police Department. v