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Monday 2 July 2018
Sex Offender Who Lived in Nine States over Three Years Sentenced to Federal Prison TimeRead the Press Release
Abingdon, VIRGINIA – A Raven, Virginia man, who was previously convicted of criminal sexual misconduct in Michigan and therefore subject to the requirements of the Sex Offender Registration and Notification Act [SORNA], was sentenced last week for failing to register as a previously convicted sex offender when he moved to Virginia. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring made the announcement.
Nelson Jose Gonzalez, 50, a.k.a. “Gerald Perez” was sentenced last week to 21 months of federal incarceration. Gonzalez previously pleaded guilty to one count of failing to register as a previously convicted sex offender and one count of fraudulently using a social security number belonging to another person.
“As this case indicates, our office will aggressively prosecute individuals who violate the Sex Offender Registration Act,” U.S. Attorney Cullen stated. “We are grateful to our partners at the United States Marshals Service for their commitment to this critical public-safety initiative.”
According to information presented at previous hearings by Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen, Gonzalez was convicted of third-degree criminal sexual conduct while living in Michigan in 1993 and served 15 years in prison. Gonzalez registered as a sex offender in Michigan every three months from the time of his release from prison until sometime in 2012 or 2013.
Gonzalez admitted to purchasing identification documents in 2013, including a social security number of another person for $50 in order to avoid detection by law enforcement and the registration requirements of SORNA. The defendant admitted he left Michigan to pursue work with a traveling carnival and worked in Pennsylvania, Virginia, Maryland, Vermont, Connecticut, New Jersey, Florida and North Carolina without ever registering as a convicted sex offender in those states as a required by SORNA, despite knowing of his responsibility to do so.
After receiving information that Gonzalez was living and working in Raven, Virginia and had failed to register as a sex offender, the United States Marshals Service began an investigation in January 2018. During the course of that investigation, U.S. Marshal’s Service investigators discovered that Gonzalez was working at a local McDonald’s and using the name “Gerald Perez” to avoid detection by law enforcement.
The investigation of the case was conducted by the United States Marshals Service. Suzanne Kerney-Quillen, an Assistant Attorney General assigned to the Major Crimes Section of the Virginia Attorney General’s Office and cross designated as a Special Assistant United States Attorney, prosecuted the case for the United States.
Rochester Contractor Pleads Guilty to Falsifying Osha DocumentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Margaret M. Tobin, 46, of Rochester, NY, pleaded guilty before U.S. Magistrate Judge Jonathan W. Feldman to possession of an unlawful identification document of the United States. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that in September 2016, the defendant, owner of M Design, was hired as a subcontractor for a state funded construction project in Rochester. In order for the City of Rochester to obtain state funding for the project, each employee working on the project was required to complete an Occupational and Safety Health Administration (OSHA) training course before performing any work on the contract. Between September 2016 and November 2016, Tobin provided her employees working on the project with fraudulent OSHA training certification cards. The fraudulent cards contained the employees’ names and registration numbers as if they had been lawfully issued by OSHA. The cards were then submitted to the City of Rochester in order for the defendant and her employees to receive payment for their services. However, the employees never actually received the OSHA training as represented on the fraudulent cards.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Peter Nozka, Acting Special Agent-in-Charge of the New York Region.
Sentencing is scheduled for September 6, 2018, at 10:30 a.m. before Judge Feldman.
Professional Body Builder and His Steroid Supplier Sentenced to PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Donald McCloud Long (51, Jacksonville) to 18 months in federal prison for conspiracy to illegally distribute anabolic steroids. Judge Davis also sentenced Long’s steroid supply source, Gregory Allen Baker (30, Jacksonville), to 3 years in federal prison for the same offense and for money laundering. In addition, Long’s wife, Sarah Long (35, Jacksonville), was sentenced to a term of 42 months’ probation, which includes a 1-year term of home confinement.
The court also ordered Don and Sarah Long to forfeit $250,000, which are traceable as proceeds of the offense. Baker was ordered to forfeit a 2015 Land Rover Range Rover Sport, a 2008 Cadillac Escalade Luxury, a 2011 Yamaha Drive Electric Golf Cart, a 2013 Kia Soul Sport, a 2007 Yamaha Motorcycle, jewelry, and proceeds in the amount of $124,418. Baker also consented to the forfeiture $37,800 in additional proceeds.
Don and Sarah Long both pleaded guilty on January 22, 2018. Baker pleaded guilty on February 14, 2017. Eight others have been convicted as part of the conspiracy.
According to court documents, from January 2013 through September 27, 2016, Don and Sarah Long supplied many of their clients with anabolic steroids and human grown hormone (HGH) as part of their “Team Long” training regimen. The Longs provided instruction, dosage, and direction to Team Long athletes on how to consume steroids and HGH to prepare for bodybuilding competitions and other athletic endeavors.
Baker was the Longs’ primary source of supply for steroids and HGH and imported raw anabolic steroids and HGH from China. Baker manufactured the steroids into consumable form, then branded the product “AxioLabs” and distributed it for the Longs and others. After the federal investigation became known, Baker rebranded his anabolic steroid and HGH as “Razors Edge.”
These cases were part of “Operation Total Package,” led by the Drug Enforcement Administration (DEA). It was a collaboration among the DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, U.S. Customs and Border Patrol, the Jacksonville Sheriff’s Office, the Jacksonville Beach Police Department, the Green Cove Springs Police Department, the Internal Revenue Service – Criminal Investigation, and the U.S. Anti-Doping Agency. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Operation Hopscotch Results in Arrests of Sixty Two Violent Offenders in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that the United States Marshals Service coordinated a federal, state and local law enforcement operation, called “Operation Hopscotch,” that resulted in the arrests of sixty-two violent offenders in Grant, Chelan and Douglas Counties over the course of ten days. The Pacific Northwest Violent Offender Task Force, U.S. Marshals Service, U.S. Border Patrol, Homeland Security Investigations, Grant County Sheriff’s Office, Chelan County Sheriff’s Office, Douglas County Sheriff’s Office, Moses Lake Police Department, Wenatchee Police Department and East Wenatchee Police Department partnered in Operation Hopscotch to locate and arrest sex offenders and other violent offenders with outstanding active arrest warrants. Operation Hopscotch also led to the apprehension of fugitives based on arrest warrants issued from California and Idaho, as well as the arrests of offenders located in Arizona and Texas. During the operation, law enforcement officers seized approximately 180 grams of methamphetamine and $2,000 in counterfeit U.S. currency.
Craig Thayer, United States Marshal for the Eastern District of Washington, said, “The United States Marshals Service is very appreciative of the partnerships we have with the city, county, state, and other federal law enforcement agencies that worked diligently to make this warrant operation a tremendous success. “Sixty -Two” violent offenders with active warrants were arrested and taken to jail. Our communities are safer as a result of these cooperative efforts that help to hold these violent offenders accountable to the justice system.”
Harrington stated, “On behalf of the citizens of the Eastern District of Washington: Well Done!”
The U.S. Marshals Service led-Pacific Northwest Violent Offender Task Force (“PNVOTF”) is comprised of federal, state, and local law enforcement officers from Washington, Oregon, and Alaska. The PNVOTF in Eastern Washington is comprised of full-time members from the Yakima County Sheriff’s Office, Benton County Sheriff’s Office, Kennewick Police Department, Washington State Department of Corrections, and U.S. Border Patrol with part-time officers from agencies throughout the district. The mission of the PNVOTF is to locate, arrest and bring to justice the most egregious federal, state, and local violent offenders.
Ohio Man Arrested for Attempting to Assist a Foreign Terrorist Organization with Homeland Attack PlotRead the Press Release
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 48, of Maple Heights, Ohio, was charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization. Pitts was arrested Sunday by members of the FBI’s Joint Terrorism Task Force.
The arrest and charges were announced by Attorney General Jeff Sessions, FBI Director Christopher Wray, Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“Terrorists reject the ideals this nation was founded upon—the ideals we celebrate on July Fourth and which our law enforcement officers lay down their lives for every day,” said Attorney General Sessions. “Each one of us owes a debt of gratitude to the agents, analysts, and prosecutors who work day and night to identify those who would do this nation harm, including those committed to supporting violence in the name of foreign terrorist organizations. At the Department of Justice, we will continue to take every lawful step we can to disrupt terrorist plots and to protect our nation from foreign and domestic threats, including the dangerous threat posed by radical Islamic terrorism.”
“Together with our law enforcement partners on FBI Cleveland's Joint Terrorism Task Force, the FBI disrupted plans to attack innocent citizens – including on July 4th, a day our citizens should be able to celebrate our freedom without fear of violence," said Director Wray. "This arrest shows the determination of the men and women of the FBI and our partner agencies to protect our communities from harm. I extend my thanks not just to those who worked on this case, but to all those who safeguard our nation every day.”
“Protecting our citizens and our nation remains the Justice Department’s top priority,” U.S. Attorney Herdman said. “This defendant plotted and scouted locations in downtown Cleveland for an attack on July 4th, when he knew it would be packed with people celebrating our nation’s birthday. We will continue to do all we can to identify, arrest and prosecute those threats while working to keep our communities safe and secure.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and was planning to conduct an attack in Cleveland on Independence Day, the very day we celebrate the freedoms we have in this country,” said Special Agent in Charge Anthony. “The FBI commends the public for reporting individuals that espouse their radical beliefs and/or engage in behavior that threaten the lives of our military personnel and community.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts, a U.S. citizen, and the UCE met on June 22, in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
The defendant faces a statutory maximum sentence of 20 years in prison. A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
O.C. Psychiatrist Arrested on Federal Charges Alleging Illegal Prescriptions for Opioids Without Medical NeedRead the Press Release
SANTA ANA, California – A psychiatrist who practices at a Santa Ana clinic has been arrested on federal charges that allege he issued prescriptions for dangerous and addictive narcotics, such as the opioid oxycodone, without a medical purpose.
Dr. Robert Tinoco Perez, 56, of Westminster, was arrested Friday by special agents with the Drug Enforcement Administration.
Perez was named in a 14-count indictment returned by a federal grand jury on June 27. The indictment charges Perez with selling prescriptions to drug customers, as well as to brokers who sold the drugs obtained from filling the prescriptions and split the profits with Perez.
Perez wrote prescriptions for “patients” he had never met or examined, including an undercover officer, according to the indictment. Perez and his co-conspirators allegedly created fictitious medical records for drug customers to provide justification for their prescriptions.
The drugs alleged to have been prescribed illegally by Perez included oxycodone and hydrocodone (both opioid pain medications), amphetamine salts (sold primarily under the brand name Adderall), and alprazolam (sold primarily under the brand name Xanax).
Perez is also charged with possession with intent to distribute nearly one ounce of methamphetamine.
At his arraignment on Friday, Perez pleaded not guilty and was ordered to stand trial on August 21.
A second defendant charged in the indictment – William Jason Plumley, 40, of Huntington Beach – is alleged to have sold both prescriptions written by Perez and the drugs filled from his prescriptions. Plumley already is in federal custody on a previous indictment alleging that he sold methamphetamine.
The indictment charging Perez and Plumley alleges one count of conspiracy to distribute controlled substances, 12 counts of illegal distribution of oxycodone without a legitimate medical purpose, and one count of possession with intent to distribute methamphetamine. Each of the defendants is charged in multiple, but not all, illegal distribution counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted of the charges in the indictment, Perez and Plumley each would face potential sentences of over 100 years in federal prison.
This case is the result of an investigation by the Drug Enforcement Administration and the Costa Mesa Police Department.
The case is being prosecuted by Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office.
New Mexico State Police Officer Arrested on Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Acting Special Agent in Charge Maxwell D. Marker of the FBI’s Albuquerque Division, New Mexico State Police (NMSP) Chief Pete Kassetas, San Juan County Sheriff Ken Christesen, and Director Kevin Burns of the HIDTA Region II Narcotics Task Force announced today that a NMSP officer has been arrested and is charged with violating the federal drug laws.
NMSP Officer Daniel Capehart, 33, of Bloomfield, N.M., was arrested by the FBI, NMSP, San Juan County Sheriff’s Office (SJCSO), and HIDTA Region II Narcotics Task Force on June 29, 2018. At the time of his arrest, Capehart was assigned to patrol duty in Farmington and San Juan County, N.M. Upon arrest, Capehart was placed on administrative leave.
Capehart made his initial appearance in federal court in Farmington, N.M., this morning before U.S. Magistrate Judge B. Paul Briones on a criminal complaint charging him with distribution of marijuana and methamphetamine. Capehart remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for July 5, 2018, in federal court in Albuquerque, N.M.
The criminal complaint generally alleges that Capehart abused his position as a law enforcement officer by stealing quantities of drugs seized during arrests and giving the drugs to females with whom he was interested in pursuing romantic or sexual relationships. To this end, the complaint alleges that on June 15, 2018, Capehart initiated a “flirtatious” “texting” relationship with a 16-year-old female who was a passenger in a friend’s vehicle, which was the subject of a traffic stop. After Capehart allegedly agreed to dismiss the friend’s citations, Capehart allegedly sent a number of text messages to set up two clandestine deliveries of marijuana to the minor on June 21 and 23, 2018.
The complaint alleges that unbeknownst to Capehart, the minor had turned her cellphone over to a SJCSO Detective on June 19, 2018, and Capehart allegedly had been communicating with the SJCSO Detective instead of the minor. According to the complaint, investigators conducted surveillance as Capehart allegedly left the marijuana at the designated drop locations as discussed in the text messages, and collected the marijuana after Capehart departed from the areas.
According to the complaint, a confidential source (Source), known to Capehart as a methamphetamine user, informed the investigators that Capehart had been texting her for approximately nine months and that Capehart had contacted her by text as recently as June 5, 2018. The Source reported that the texting relationship with Capehart also began with a traffic stop and was sexual in nature. The Source permitted an FBI Special Agent to take control of her cellphone and pose as the Source beginning on June 27, 2018.
The complaint alleges that during text messaging on June 28, 2018, between the FBI Special Agent posing as the Source and Capehart, the FBI Special Agent asked Capehart if he could “make me happy or vice versa,” and Capehart allegedly responded “if you know someone I can bust tomorrow then it makes my job easy. Whatever I get I just split it.” After the FBI Special Agent sent text messages to Capehart setting up a sting, the investigators put a plan into place to have an undercover officer, posing as a methamphetamine dealer and carrying 24 grams of methamphetamine, accompany the Source to the SunRay Casino in Farmington.
According to the complaint, on the night of June 28, 2018, while the undercover officer and the Source were driving to the casino, Capehart allegedly executed a traffic stop on the undercover officer’s vehicle, arrested the undercover officer, and seized the methamphetamine. In subsequent text messaging, Capehart allegedly told the FBI Special Agent, whom he believed to be the Source, that he would arrange for her to get her share of the methamphetamine after he booked the drug dealer.
In the early hours of June 29, 2018, investigators conducted surveillance as Capehart allegedly drove from the San Juan County Detention Center to a park in Bloomfield, and walked into and out of the bathroom area in the park. After Capehart departed the area, investigators went into the bathroom area and found a plastic container containing approximately 5.7 grams of methamphetamine. The description and location of the container were consistent with information Capehart allegedly previously sent to the FBI Special Agent, whom he believed to be the Source, by text message. Investigators arrested Capehart shortly thereafter at the Farmington office of the NMSP.
“As guardians of our communities, police officers have a solemn trust and responsibility to uphold the law. Any suggestion that an officer has breached that trust demands prompt action,” said U.S. Attorney John C. Anderson. “My office will work closely with FBI, NMSP, SJCSO, and HIDTA Region II Narcotics Task Force to ensure that any violation of the public trust is addressed swiftly, thoroughly and in accordance with law.”
“The majority of law enforcement officers perform their duty with dedication and integrity, putting their lives on the line every day to keep our communities safe,” said Acting Special Agent in Charge Maxwell D. Marker of the FBI’s Albuquerque Division. “It is a sad day when the FBI and our partners investigate someone accused of betraying their solemn oath to uphold the law, but it is a task we perform thoroughly and vigorously because the public must be able to trust their protectors. We hope this arrest sends a clear message that misconduct by any law enforcement officer or any public official will not be tolerated.”
“The State Police is fully cooperating with the FBI in their investigation and we look forward to justice being served,” said New Mexico State Police Chief Pete Kassetas. “Police officers take an oath to uphold the law and any violations of that oath are unacceptable.”
“The vast majority of law enforcement officers fulfill their duty with integrity and honor,” said San Juan County Sheriff Ken Christesen, “The small fraction that does not will not be tolerated in San Juan County or the State of New Mexico.”
“Police officers are entrusted by the citizens of New Mexico to uphold their oath with limited supervision. It is always unfortunate when law enforcement officers have to investigate one of their own,” said Director Kevin Burns of the HIDTA Region II Narcotics Task Force. “We are pleased with the hard work of our task force officers and our collaboration with the FBI on an investigation to uphold the integrity of our profession.”
If convicted on the marijuana distribution offenses, Capehart faces a statutory maximum penalty of five years of imprisonment. If convicted on the methamphetamine distribution offense, Capehart faces a statutory maximum penalty of 20 years of imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The investigation of his case, which is ongoing, is a collaborative effort by the Farmington office of the FBI, the New Mexico State Police, the San Juan County Sheriff’s Office, and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorneys Peter J. Eicker and Shaheen P. Torgoley are prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Capehart ComplaintNew Haven Man Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ANTHONY DUNCAN, also known as “Heavy D,” 31, of New Haven, with one count of possession of a firearm by a convicted felon.
As alleged in the indictment, on November 24, 2017, in New Haven, DUNCAN possessed a loaded Smith and Wesson M&P Shield .40 caliber handgun. Prior to that date, DUNCAN had been convicted in state court of felony drug, robbery and weapon offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, DUNCAN faces a maximum term of imprisonment of 10 years.
DUNCAN has been detained since June 26, 2018, when he was arrested on a federal criminal complaint.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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.
Milwaukee Man Arrested for Attempted Arson of Milwaukee Police StationRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on July 2, 2018, Van L. Mayes (a/k/a Vaun L. Mayes) (age 31) of Milwaukee was arrested and charged by a criminal complaint with attempted arson, possession of a firearm by a felon, and possession of a destructive device in relation to a crime of violence, in violation of Title 18, United States Code, Sections 844(i), 922(g), and 924(c)(1)(B)(ii).
The complaint alleges that Mayes and others planned to firebomb the Milwaukee Police Department’s District Seven Police Station during the Sherman Park rioting in August 2016. According to the complaint, Mayes and others pursued the plan by manufacturing Molotov cocktails in glass bottles that contained gasoline with a fabric wick inserted into the opening. The firebombing of the District Station ultimately did not occur.
“Today’s charges are the result of ongoing efforts to hold accountable those who engaged in criminal conduct during the Sherman Park riots,” explained U.S. Attorney Krueger.
“ATF is pursuing multiple investigations related to the 2016 Sherman Park riots,” said U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Assistant Special Agent in Charge Joel Lee of the St. Paul Field Division. “This particular arrest is related to the attempted firebombing of the Milwaukee Police Department’s seventh District station. We’re hoping this arrest will bring us one step closer in holding individuals responsible for the violence and disorder back in 2016. The citizens and business community of Milwaukee deserve the peace of mind.”
ATF led the investigation of this case in cooperation with the Wisconsin Department of Justice Division of Criminal Investigation and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorneys Gregory Haanstad and Christopher Ladwig.
The public is cautioned that a criminal charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Criminal_ComplaintMesa, Arizona, Man Sentenced to 120 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carlos Daniel Chavez-Lozano, age 27, of Mesa, Arizona was sentenced to 120 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about March 9, 2017, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “There are few communities across the country that have not felt the horrific impacts of methamphetamine. Without regard for the tragedy that will ensue, drug dealers deliver their poison for profit. In this case the agents from the Oklahoma Highway Patrol and Drug Enforcement Administration worked together and prevented thousands of dosage units of methamphetamine from being delivered, and members of this office were able to successfully prosecute the defendant.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Meridian Men Indicted for Killing a Witness and Drug TraffickingRead the Press Release
Jackson, Miss. – Aubrey Maurice Jordan, 26, Monroe L. Hughes, III a/k/a "Roe," 39, and Cortez Lakeith Byrd a/k/a Byrd, 26, all of Meridian, were recently indicted and charged with witness tampering resulting in death, drug trafficking and conspiracy, announced U.S. Attorney Mike Hurst, Drug Enforcement Administration (DEA) Assistant Special Agent in Charge, J. Derryle Smith, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Dana Nichols.
Aubrey Maurice Jordan and Cortez Lakeith Byrd had their initial appearance and arraignments Friday before U.S. Magistrate Linda R. Anderson. Monroe L. Hughes, III, is scheduled to have his initial appearance and arraignment before U.S. Magistrate Linda R. Anderson on Tuesday, July 3, 2018.
On or about March 10, 2018, a confidential source for the East Mississippi Drug Task Force was shot in the back of the neck. The confidential source had previously participated in controlled buys on or about September 21, 2017, and on or about October 9, 2017, involving Monroe L. Hughes, III and Cortez Lakeith Byrd.
In Count 1, Monroe Hughes and Cortez Byrd are charged with conspiracy to possess 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, which carries a maximum penalty of 40 years in prison and a $5,000,000 fine. In Count 2, Hughes is charged with possession with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, which carries a maximum penalty 40 years in prison and a $5,000,000 fine. In Count 3, Hughes and Byrd are charged with possession with the intent to distribute methamphetamine, which carries a maximum penalty of 20 years in prison. In Counts 5 and 7, Aubrey Jordan is charged with tampering with and retaliating against witness by killing, which carries a maximum penalty of death or life in prison or imprisonment for any term of years. All men are charged in Counts 4 and 6 with conspiracy to tamper with and retaliate against a witness, which carries a maximum penalty of death or life in prison or imprisonment for any term of years.
This case is set for trial on September 4, 2018, before U.S. District Judge Carlton W. Reeves.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
The case is the result of an investigation by the East Mississippi Drug Task Force, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Meridian Police Department. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
Memphis, Tennessee, Man Sentenced to 30 Months for Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Chad Scates Tidwell, age 32, of Memphis, Tennessee was sentenced to 30 months imprisonment and 3 years supervised release for Possession With Intent To Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about December 4, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 kilograms or more of a mixture or substance containing a detectable amount of marijuana, a Schedule I controlled substance.
United States Attorney Brian J. Kuester said, “This office is fortunate to work with law enforcement agencies from local, state, tribal and federal jurisdictions that work very well together and understand that we serve best when we serve together. The defendant in this case is being held accountable for his violation of federal law because of the cooperative efforts of OHP and DEA.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Maple Heights man arrested and charged in federal court after plotting terror attack in downtown Cleveland on Independence DayRead the Press Release
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 48, of Maple Heights, Ohio, was charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization. Pitts was arrested Sunday by members of the FBI’s Joint Terrorism Task Force.
The arrest and charges were announced by Attorney General Jeff Sessions, FBI Director Christopher Wray, Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“Terrorists reject the ideals this nation was founded upon—the ideals we celebrate on July Fourth and which our law enforcement officers lay down their lives for every day,” said Attorney General Sessions. “Each one of us owes a debt of gratitude to the agents, analysts, and prosecutors who work day and night to identify those who would do this nation harm, including those committed to supporting violence in the name of foreign terrorist organizations. At the Department of Justice, we will continue to take every lawful step we can to disrupt terrorist plots and to protect our nation from foreign and domestic threats, including the dangerous threat posed by radical Islamic terrorism.”
“Together with our law enforcement partners on FBI Cleveland's Joint Terrorism Task Force, the FBI disrupted plans to attack innocent citizens – including on July 4th, a day our citizens should be able to celebrate our freedom without fear of violence," said Director Wray. "This arrest shows the determination of the men and women of the FBI and our partner agencies to protect our communities from harm. I extend my thanks not just to those who worked on this case, but to all those who safeguard our nation every day.”
“Protecting our citizens and our nation remains the Justice Department’s top priority,” U.S. Attorney Herdman said. “This defendant plotted and scouted locations in downtown Cleveland for an attack on July 4th, when he knew it would be packed with people celebrating our nation’s birthday. We will continue to do all we can to identify, arrest and prosecute those threats while working to keep our communities safe and secure.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and was planning to conduct an attack in Cleveland on Independence Day, the very day we celebrate the freedoms we have in this country,” said Special Agent in Charge Anthony. “The FBI commends the public for reporting individuals that espouse their radical beliefs and/or engage in behavior that threaten the lives of our military personnel and community.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts, a U.S. citizen, and the UCE met on June 22, in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
The defendant faces a statutory maximum sentence of 20 years in prison. A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Las Vegas man sentenced to 15 years in federal prison for distributing over 100,000 oxycodone pillsRead the Press Release
Memphis, TN – Gabriel Rounds, 36, of Las Vegas, Nevada, was sentenced to 188 months imprisonment for his role in distributing more than 100,000 oxycodone pills in the Memphis area and conspiracy to knowingly conduct financial transactions affecting interstate commerce, known as money laundering. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on or about May 9, 2013, Las Vegas Postal Inspectors began an investigation into mailings of illegal narcotics destined for the Memphis area. During the course of the investigation, several U.S. mail parcels containing oxycodone pills were seized.
U.S. Attorney D. Michael Dunavant said: "This office continues our fight against the supply and flow of dangerous prescription opioids into the Western District of Tennessee. This disturbing case demonstrates the lengths to which drug dealers will go to profit from addiction and suffering, and this significant sentence demonstrates our resolve to punish and deter such brazen interstate criminal conduct."
Postal Inspectors were able to identify phone numbers, surveillance images, vehicle registrations and other information that identified Gabriel Rounds and Magan Hall sending the packages to various addresses and recipients residing in Memphis. Based upon USPIS findings a search warrant was issued for the residence of Rounds and Hall. Hall admitted to helping Rounds package the pills in Express Mail envelopes.
On April 26, 2016, Las Vegas Postal Inspectors were advised by a postal employee that an unidentified female was attempting to mail USPS Express Mail packages. The USPS employees advised the female came in weekly and sent express parcels to Memphis. A package was examined by the Postal Inspectors and appeared to have characteristics of parcels containing controlled substances and/or proceeds. Due to the nature of the subject parcel, it was removed from the mail stream for examination.
On April 27, 2016, the package was further examined by a narcotics detective K-9 who alerted to the odor of narcotics inside the parcel. On May 2, 2016, a search warrant was executed on the parcel and revealed 456 oxycodone pills being concealed inside M&M’s candy bags.
On June 15, 2018, U.S. District Judge Sheryl H. Lipman sentenced Rounds to 188 imprisonment, to be followed by six years of supervised release.
This case was investigated by the United States Postal Inspectors Office, Las Vegas Postal Inspectors Office, Shelby County Sheriff’s Office and the Tennessee National Guard Counter Narcotics Team.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
Las Vegas Real Estate Broker Arrested on Money Laundering ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and David J. Downing, Special Agent in Charge of the Los Angeles Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that LUIS EDUARDO RODRIGUEZ has been charged for his role in laundering hundreds of thousands of dollars in narcotics proceeds through Las Vegas real estate, and through multiple Nevada shell corporations, in order to send those proceeds to narcotics traffickers and money launderers based in Mexico. RODRIGUEZ was arrested this morning in Las Vegas, and will be presented in federal court today in the District of Nevada.
The criminal complaint, which was filed under seal on June 28, 2018, alleges that RODRIGUEZ worked at the direction of Jesus Rodriguez-Jimenez, the leader of an international money laundering and narcotics trafficking organization (the “Organization”). In June 2017, Rodriguez-Jimenez pled guilty to laundering in excess of $250 million in drug proceeds on behalf of drug cartels in Mexico and Central America through a variety of methods, including through seemingly “legitimate” corporations, shell bank accounts, and money couriers based in the United States and Europe. RODRIGUEZ served as one conduit through which the Organization laundered drug money.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Luis Eduardo Rodriguez assisted a major international drug trafficking organization in laundering the proceeds of its illegal operations. Rodriguez allegedly laundered drug proceeds through Las Vegas real estate transactions, and assisted in recruiting people to act as straw-man ‘managers’ of shell companies for the trafficking organization. Now, thanks to the DEA, Rodriguez is in custody and facing prosecution.”
DEA SAC David J. Downing said: “The actions of the accused illustrate the methods drug trafficking organizations utilize to infiltrate our communities and attempt to legitimize their criminal enterprise, but this arrest exemplifies the tremendous steps taken by law enforcement to uproot and remove them.”
According to the allegations in the criminal complaint [1], and statements made in Court:
The Investigation
Since July 2013, the DEA has been investigating the Organization and its cartel clients, which together have been involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering narcotics proceeds through a variety of methods. The Organization has ties to Panama, Mexico, Italy, Spain, and the United States, among other locations, and its members are believed to include the defendant. Eight members of the Organization have previously been charged in the Southern District of New York, including in the indictment captioned United States v. Rodriguez-Jimenez et al., 16 Cr. 644 (KBF) filed on September 22, 2016.
In furtherance of the money laundering activities of the Organization, RODRIGUEZ, through his real estate business, purchased, renovated, and sold residential properties in Las Vegas at the direction of Jesus Rodriguez-Jimenez. Jesus Rodriguez-Jimenez funded these transactions with drug dollars, and held his interest through a shell corporation, Innova Properties LLC (“Innova”). During the first half of 2016, RODRIGUEZ “flipped” at least three properties in this way for Jesus Rodriguez-Jimenez; the last of these was purchased by Innova for approximately $220,000 and then sold two months later for approximately $226,000.
In or about October 2015, RODRIGUEZ assisted Jesus Rodriguez-Jimenez in recruiting individuals to allow their identities to be used by the Organization: these individuals were listed with the State of Nevada as “managers” of various Organization-controlled shell corporations, and appeared as signatories on domestic bank accounts affiliated with those shell corporations. In exchange for the use of their identities, these individuals each received $1,000 per month in cash. These accounts were then utilized by the Organization for the movement of hundreds of thousands of dollars in narcotics proceeds.
In July 2016, after the raid of an Organization stash house by law enforcement in Philadelphia, which resulted in the seizure of $500,000 in narcotics proceeds, Jesus Rodriguez-Jimenez traveled from Monterrey, Mexico, to Las Vegas to meet with a purported associate to discuss the seizure. In fact, that associate was an undercover DEA agent, and Jesus Rodriguez-Jimenez was arrested when he arrived for the meeting. RODRIGUEZ accompanied Jesus Rodriguez-Jimenez to the meeting to discuss the seizure.
* * *
RODRIGUEZ faces up to 20 years in prison on the charges contained in the criminal complaint. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the DEA for its work in the investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Noah Falk and Jonathan E. Rebold are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Justice Department, EPA Reach Settlement with MFA Incorporated and MFA Enterprises Incorporated to Address Alleged Chemical Accident Prevention ViolationsRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) have entered into a consent decree with MFA Incorporated, headquartered in Columbia, Missouri, and its wholly owned subsidiary MFA Enterprises, Incorporated (collectively, “MFA”), to address alleged chemical accident prevention and preparedness violations under the Risk Management Program of the Clean Air Act. The alleged violations relate to the companies’ management of anhydrous ammonia at nine Missouri facilities, which have a combined inventory of more than 4.3 million pounds of the chemical. Under the settlement agreement, MFA will assure that its accident prevention program complies with all applicable Clean Air Act requirements, will install emergency shutoff equipment at 53 facilities, and will pay a civil monetary penalty of $850,000.
“This settlement will protect the communities surrounding MFA facilities by helping to prevent releases of harmful chemicals,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “By bringing MFA facilities into compliance with the Clean Air Act, this agreement will also substantially improve the maintenance and emergency systems that keep MFA workers safe.”
“Accidental releases of anhydrous ammonia fertilizers can be extremely dangerous. When it is used and stored properly, it helps the local agriculture industry meet the needs of our communities, and be competitive in the marketplace,” said EPA Region 7 Administrator Jim Gulliford. “This settlement ensures the rule of law is being followed by MFA, and that it is working responsibly to protect the communities and its workers where each of these facilities is located.”
In 2007, MFA pleaded guilty to one criminal misdemeanor violation of the Clean Air Act’s accident prevention provision, and admitted that it was negligent in failing to inspect, detect wear, and replace a valve on an ammonia storage tank where a release from that valve had hospitalized a worker. As part of the 2007 plea agreement, MFA agreed to come into compliance with applicable industry standards and safety requirements for the storage and handling of anhydrous ammonia. Beginning in 2012, EPA Region 7 conducted inspections and evaluated MFA’s compliance at facilities in Missouri and found that, despite the 2007 plea, numerous facilities did not conform to applicable industry standards. EPA also discovered several unreported ammonia releases that had injured workers.
The Complaint alleges numerous violations of the Clean Air Act’s Risk Management Program requirements at nine MFA facilities. Among MFA’s most common alleged violations, it failed to: (1) implement procedures to maintain its equipment; (2) properly conduct hazard reviews and address any hazards found in a timely manner; (3) develop and implement written operating procedures that provide clear instructions for safely conducting activities; and (4) disclose in its Risk Management Program submissions all incidents of accidental chemical releases that injured MFA employees.
Under the proposed settlement, MFA must create and implement corporate policies and engineering specifications for the storage and handling of anhydrous ammonia and a corporate-wide inventory maintenance system. It must also inspect and remedy any problems found within certain parts of its process equipment. Additionally, MFA must update the information it provides to EPA on accidental releases, and it must create and maintain a publicly available portion of its website listing accidents and releases that occur after the Consent Decree is lodged with the court. Finally, the Consent Decree requires MFA to hire an independent third-party auditor to conduct Risk Management Program audits at twenty facilities to identify and correct any potential violations of its risk management program under the Clean Air Act.
Also, as a part of today’s agreement, MFA will install emergency electronic shutoff systems at no fewer than 53 of its facilities. The electronic shutoff systems must include emergency stop buttons and a remote stop transmitter, which can be worn by an employee to reduce response time to a potential release. The systems are designed to close all shutoff valves and shut down liquid and vapor pumps facility-wide. The estimated cost to implement these systems is about $400,000.
The consent decree is subject to a 30-day public comment period and approval by the federal court.
Jackson Man Indicted for Distributing and Illegally Possessing MethamphetamineRead the Press Release
Jackson, Miss. – Kelvin Roy Thompson a/k/a "HOT" a/k/a "OLD SCHOOL," 59, of Jackson, was recently indicted and had his initial appearance and arraignment today before U.S. Magistrate Linda R. Anderson for distributing and illegally possessing methamphetamine, announced U.S. Attorney Mike Hurst, Mississippi Bureau of Narcotics Director John Dowdy, Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Dana Nichols.
Thompson is being charged with two counts of distributing at least 5 grams or more of actual methamphetamine, a Schedule II controlled substance, which carries a maximum penalty of 40 years in prison and a $5,000,000 fine. Thompson is also charged with one count of possession with the intent to distribute at least 5 grams or more of actual methamphetamine, a Schedule II controlled substance, which also carries a maximum penalty 40 years in prison and a $5,000,000 fine.
Thompson will make his initial appearance in court this afternoon for his arraignment at 1:30 p.m. before U.S. Magistrite Judge Linda R. Anderson. His case is set for trial before the Honorable District Judge David C. Bramlette III.
The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty.
The case is the result of an investigation by the Mississippi Bureau of Narcotics, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Jackson Police Department and Ridgeland Police Department. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
Individual Sentenced to 147 Months ImprisonmentRead the Press Release
FORT WAYNE –Israel Bonilla, age 32, of Michoacan, Mexico, was sentenced before Chief Judge Theresa L. Springmann, for possessing methamphetamine and heroin with the intent to distribute and for possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Bonilla was sentenced to a total of 147 months of imprisonment on these counts.
According to documents in this case, Bonilla and two codefendants were distributing large amounts of heroin and methamphetamine, and Bonilla possessed a loaded rifle and two loaded pistols in furtherance of his drug dealing.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Postal Inspection Service; the Allen County Drug Task Force; and the Allen County Police Department. This case was handled by Assistant U.S. Attorney Anthony W. Geller.
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Healthcare Provider Agrees to $3 Million False Claims SettlementRead the Press Release
RICHMOND, Va. – Hope In-Home Care, LLC (Hope), a Newport News based provider of Medicaid in-home healthcare services, agreed to settle allegations that it submitted false claims to the Virginia Medicaid Program. Under the terms of the settlement Hope will pay a total of $3,345,065.35 to the United States and Virginia.
The U.S. Attorney’s Office and the Virginia Attorney General’s Office alleged multiple fraudulent schemes by Hope covering almost a three-year period from January 2011 thru September 2013, including: 1) Hope employed and submitted claims for uncertified “personal care aides” who were ineligible to provide services; 2) Hope falsified documents and statements in order to qualify ineligible beneficiaries for services; 3) Hope made false statements in prior authorization requests in order to obtain approval and reimbursement for non-reimbursable “respite services;” 4) Hope engaged in “phantom billing,” by billing for services that were not performed; and 5) Hope hired family members of Medicaid beneficiaries as “personal care aides” and submitted ineligible claims for compensation for care provided by those family members. Hope operates facilities in the Newport News – Williamsburg I-64 corridor, Virginia Beach, Warrenton, as well as Gloucester, King William, King and Queen, and Culpeper Counties.
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, with support from the Virginia Department of Medical Assistance Services. The matter was investigated by Assistant Attorney General Kimberly Bolton and Assistant U.S. Attorney Robert McIntosh.
The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability. The related criminal case information can be found on the website on PACER by searching for case no. 3:16-cr-110.
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.
Four Bakersfield Men Arrested Today for Conspiring to Distribute Synthetic NarcoticsRead the Press Release
FRESNO, Calif. — On June 28, 2018, a federal grand jury returned an indictment against Mubarek Alnajar, 28; Yousef Nazem Alnajar, 24; Nazem Ahmed Alnajar, 46; and Bandar Gamal Saleh Alnaggar, 39, all of Bakersfield, charging them with conspiring to distribute synthetic narcotics, U.S. Attorney McGregor W. Scott announced.
According to court documents, from August 2016 through March 2018, the defendants conspired to distribute synthetic narcotics, including FUB-AMB, ADB-PINACA, AB‑FUBINACA, all Schedule I controlled substances. They distributed narcotics through several minimarts and smoke shops they owned and managed in Bakersfield.
This case is the product of an investigation by the Drug Enforcement Administration, California Highway Patrol, and Bakersfield Police Department. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Fort Wayne Man Sentenced to 135 Months ImprisonmentRead the Press Release
FORT WAYNE –Latwon Ford, age 25, of Fort Wayne, Indiana, was sentenced before Chief Judge Theresa L. Springmann, for two counts of obstructing and interfering with interstate commerce by robbery and for brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Kirsch.
Ford was sentenced to a total of 135 months of imprisonment followed by 2 years of supervised release.
According to documents in the case, Ford robbed the Dollar General store in Leo, Indiana, in June of 2015 and then again in January of 2016. In January of 2016, officers caught Ford after he exited the store, and Ford was armed with a loaded handgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation, the Allen County Police Department, the Indiana State Police, and the Fort Wayne Police Department. This case was handled by Assistant U.S. Attorney Anthony W. Geller.
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Former Mayor of Crystal City, TX, Sentenced to Federal Prison for Bribery and Kickback SchemeRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced Ricardo Lopez, the former Mayor of Crystal City, TX, to 97 months in federal prison followed by three years of supervised release and to pay $24,003.95___ restitution, announced United States Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
“Today Mr. Lopez received a fair sentence for his betrayal of the public trust. This case is just one example of our office’s unyielding fight against public corruption in Central and West Texas,” stated U.S. Attorney Bash.
“Citizens deserve honest and faithful service from their public officials. Greed and self-interest have no place in public service. Officials who betray the public and violate their oath of office will be thoroughly investigated and held accountable,” said FBI SAC Combs.
On June 26, 2017, a federal jury convicted Lopez of one count of conspiracy to commit bribery involving federal programs, one substantive count of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services and four substantive counts of wire fraud and theft of honest services. Jurors also convicted William James Jonas, III, the former City Manager and City Attorney for Crystal City, of one count of conspiracy to commit bribery involving federal programs, three substantive counts of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services, five substantive counts of wire fraud and theft of honest services, and four counts of wire fraud.
Testimony provided during trial revealed that between May 2012 and February 2016, Jonas, Lopez, and other city officials used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. Jonas and Lopez also used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.
On May 16, 2018, Judge Moses sentenced Jonas to 420 months in federal prison followed by three years of supervised release. Judge Moses also ordered that Jonas pay $1,047,814.05 restitution to Crystal City. Three other individuals—former Mayor Pro-Tem Rogelio Mata, former City Councilman Roel Mata and former City Councilman Gilbert Urrabazo—have pleaded guilty to a federal programs bribery charge and face up to ten years in federal prison and up to a $250,000 fine. Sentencing for all three former city officials is scheduled for September 6, 2018, in Del Rio before Judge Moses.
The FBI conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division, the Texas Rangers and the San Antonio Police Department. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Former Federal Inspector Arrested for Attempted Child EnticementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent in Charge of the New York Field Office of Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of JESSE RODRIGUEZ on charges of attempted enticement of a minor to engage in sexual activity. The Complaint charges that RODRIGUEZ communicated with an individual he believed to be the mother of two minor girls via email and chat messages, and made plans to meet the mother at a coffee shop in Manhattan and then go to her apartment to engage in sexual activity with her minor daughters. RODRIGUEZ was arrested Sunday after he arrived at the designated meeting place, and was presented today in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang, where he was ordered detained pending trial.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Jesse Rodriguez traveled to New York yesterday in the evil yet erroneous belief that he would engage in sex with two children. He allegedly possessed condoms and restraints for that purpose. Thanks to HSI and the NYPD, he was the one who was handcuffed, and now faces prosecution.”
Special Agent in Charge Angel M. Melendez said: “Rodriguez allegedly sought out the mother of two young daughters in order to perform sex acts with the girls. It is incomprehensible that a former public servant, employed to protect, would allegedly seek to take advantage on the vulnerability of a child. Law enforcement continuously targets child predators to ensure a child does not become a victim, and now, in this case, this man is behind bars and will need to face justice for his alleged actions.”
Police Commissioner James P. O’Neill said: “Jesse Rodriguez’s alleged shameful attempt to pay for sex with two underage girls displays a disgusting, utter disregard for the rule of law in civilized society. The NYPD and our federal partners at Homeland Security Investigations and the Southern District will stop at nothing to identify, arrest, and prosecute anyone who engages in such alleged depraved behavior.”
According to the allegations in the Complaint sworn out today in Manhattan federal court and statements made during court proceedings:[1]
Between April 4, 2018, through July 1, 2018, RODRIGUEZ, a former federal inspector with the Federal Protective Service of the Department of Homeland Security, exchanged chat messages with a law enforcement officer operating in an undercover capacity, posing as the mother of a 13-year-old and an eight-year-old girl. During the course of these conversations, RODRIGUEZ told the undercover officer that he was interested in engaging in sexual activities with the minor girls. RODRIGUEZ described the explicit sexual activity that he intended to engage in with the purported minor daughters of the undercover officer and made a plan to travel from Minnesota to meet at a coffee shop in Manhattan to then go to a nearby apartment for purposes of engaging in sexual activity with the minor girls. RODRIGUEZ was arrested outside the coffee shop while in possession of condoms, lubricant, and restraints.
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RODRIGUEZ, 62, of St. Paul, Minnesota, is charged with one count of attempted enticement of a minor to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah Mortazavi is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Chief and President of Briarcliff Manor Fire Department Pleads Guilty to Embezzling More Than $120,000Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Thomas P. DiNapoli, New York State Comptroller, and George P. Beach II, Superintendent of the New York State Police, announced today that ROBERT M. GARCIA, the former president and chief of the Briarcliff Manor Fire Department in Briarcliff Manor, New York (“BMFD”), pled guilty to embezzlement of more than $120,000 from the BMFD. GARCIA pled guilty today in White Plains federal court before U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Robert Garcia abused his positions of trust with the Briarcliff Manor Fire Department and Fire Council to engage in flagrant self-dealing. He lined his pockets with Fire Department and Fire Council money to pay personal expenses, and then lied about it to cover his tracks. Now Garcia may be facing prison time for his crime.”
FBI Assistant Director William F. Sweeney Jr. said: “As a fire department official, Garcia was expected to be trustworthy and reliable, but, as he admitted today, he proved himself unprincipled by his deceitful actions. For approximately four years, Garcia abused his elected position to channel over $120,000 into his personal accounts. Instead of tending to the needs of the community, Garcia tended to his own needs. Corruption may be a deep-rooted plant in parts of our society, but as today’s plea demonstrates, we are committed to rooting out corruption in all of its forms.”
Comptroller Thomas P. DiNapoli said: “Mr. Garcia has admitted brazenly writing checks to himself for $122,000 from the Briarcliff Manor Fire Department. Thanks to my ongoing partnership with United States Attorney Geoffrey S. Berman, the FBI and the State Police, he will now be held accountable. This is a reminder to employ strong checks and balances and internal controls to guard public funds.”
According to the Information and statements made in related court filings and proceedings:
GARCIA was elected to the position of second assistant chief of the BMFD in or about April 2013. His election to that position also made him an officer of the Briarcliff Manor Fire Council, which oversees the BMFD. GARCIA was thereafter elected to different administrative and operational positions within the BMFD, including first assistant chief, chief, treasurer, and president. As a result, GARCIA was also an officer of the Fire Council from in or about April 2013 through in or about April 2017. GARCIA was given signatory authority over bank accounts held by the Fire Council and the BMFD starting in April 2013.
From in or about May 2013 to in or about March 2017, GARCIA embezzled money from the BMFD and the Fire Council by writing checks drawn on the BMFD’s and Fire Council’s bank accounts that he made payable to himself. GARCIA then deposited these checks into his personal bank accounts. He used the embezzled proceeds to pay personal expenses. GARCIA covered up his thefts by making material misstatements regarding the purposes and payees of the checks he had written to himself on written reports he gave to the Fire Council when he acted as the BMFD’s treasurer from in or about 2014 through in or about April 2017. GARCIA embezzled more than $120,000 from the BMFD and the Fire Council by writing approximately 150 checks to himself.
GARCIA, 51, of Ossining, New York, pled guilty to one count of embezzlement theft concerning a program receiving federal funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
GARCIA is scheduled to be sentenced before Judge Seibel on November 15, 2018, at 3:30 p.m.
Mr. Berman praised the outstanding investigative work of the FBI, New York State Comptroller and New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal PrisonRead the Press Release
A Brentwood, Tennessee man was sentenced today in U.S. District Court to 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Timothy Thomas, 55, was also ordered to forfeit $1.5 million dollars and to pay more than $2.5 million in restitution to the victims of the fraud scheme. In March 2018, Timothy Thomas pleaded guilty to committing mail fraud. He was initially indicted in October 2014 for fraudulently marketing limited benefit health plans as major medical health insurance to consumers. Thomas also pleaded guilty to criminal contempt, charges that resulted from a lawsuit filed by the Federal Trade Commission (FTC) and the State of Tennessee in August 2010, wherein a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account.
According to admissions made as part of his guilty plea, Thomas operated and controlled United Benefits of America (UBA) LLC, which was also known at as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
Thomas’s 66-month sentence consists of 36 months for mail fraud, to be followed by 30 months for criminal contempt.
“Timothy Thomas exploited innocent consumers who were simply looking for decent health insurance,” said Acting Assistant Attorney General Cronan. “Rather than honestly describing the insurance products his company was selling, Thomas had his salespeople misrepresent the products to thousands of unsuspecting people over the phone. The sentence of imprisonment and order of restitution in this case will hopefully provide some consolation to all those who were victimized by Thomas’ scheme.”
“Tim Thomas used misleading, high-pressure sales tactics to dupe thousands of victims into buying a product that they mistakenly believed was just as good as major medical health insurance,” said U.S. Attorney Cochran. “Then, when a federal court stepped in to shut Thomas’s company down and freeze his assets, Thomas violated that court order by depositing hundreds of thousands of dollars into a friend’s bank account. These crimes implicate not only the public’s trust but the integrity of the judicial system, and the sentence imposed today reflects their seriousness.”
Thomas’s ex-wife, Kennan Dozier Thomas, 60, of Franklin, Tennessee, was also charged with criminal contempt, arising from the violation of the asset freeze. She pleaded guilty in September 2016 and was sentenced last week to time served and placed on two years of supervised release, the first 90 days of which will be spent in a halfway house.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC, Tennessee Attorney General’s Office, and Tennessee Division of Insurance provided substantial assistance. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee prosecuted the case.
Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal PrisonRead the Press Release
Timothy Thomas, 55, of Brentwood, Tennessee, was sentenced today in U.S. District Court to 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division. Thomas was also ordered to forfeit $1.5 million dollars and to pay more than $2.5 million in restitution to the victims of the fraud scheme.
U.S. Attorney Don Cochran said, “Tim Thomas used misleading, high-pressure sales tactics to dupe thousands of victims into buying a product that they mistakenly believed was just as good as major medical health insurance. Then, when a federal court stepped in to shut Thomas’s company down and freeze his assets, Thomas violated that court order by depositing hundreds of thousands of dollars into a friend’s bank account. These crimes implicate not only the public’s trust but the integrity of the judicial system, and the sentence imposed today reflects their seriousness.”
In March 2018, Timothy Thomas pleaded guilty to committing mail fraud. He was initially indicted in October 2014 for fraudulently marketing limited benefit health plans as major medical health insurance to consumers. Thomas also pleaded guilty to criminal contempt, charges that resulted from a lawsuit filed by the Federal Trade Commission (FTC) and the State of Tennessee in August 2010, wherein a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account.
Thomas operated and controlled United Benefits of America (UBA) LLC, which was also known at as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
“Timothy Thomas exploited innocent consumers who were simply looking for decent health insurance,” said Acting Assistant Attorney General Cronan. “Rather than honestly describing the insurance products his company was selling, Thomas had his salespeople misrepresent the products to thousands of unsuspecting people over the phone. The sentence of imprisonment and order of restitution in this case will hopefully provide some consolation to all those who were victimized by Thomas’ scheme.”
At sentencing today, Judge David M. Lawson observed that Thomas “sought to profit from misrepresentations to people in a particularly vulnerable state,” noting that this sentence “sends the message that this type of conduct will not be tolerated. Thomas’s 66-month sentence consists of 36 months for mail fraud, to be followed by 30 months for criminal contempt.
Thomas’s ex-wife, Kennan Dozier Thomas, 60, of Franklin, Tennessee, was also charged with criminal contempt, arising from the violation of the asset freeze. She pleaded guilty in September, 2016 and was sentenced last week to time served and placed on 2 years of supervised release, the first 90 days of which will be spent in a half-way house.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC, Tennessee Attorney General’s Office, and Tennessee Division of Insurance provided substantial assistance. Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section prosecuted the case.
Federal and Local Law Enforcement Working Together as Cleveland Terrorist Suspect Identified Philadelphia as Next “Big Target”Read the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his Office is working together with the Federal Bureau of Investigation’s Philadelphia Field Office and the Philadelphia Police Department in connection with a criminal complaint filed today in Cleveland, Ohio, against Demetrius N. Pitts, aka Abdur Raheem Rahfeeq, aka Salahadeen Osama Waleed, 48, of Maple Heights, Ohio. Pitts was arrested Sunday by members of FBI’s Joint Terrorism Task Force and charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization.
The complaint and supporting affidavit filed today in federal court in Cleveland, Ohio allege that Pitts spoke to an undercover FBI agent about planning an attack in downtown Cleveland on July 4 on behalf of al Qaeda. The supporting affidavit, also part of the public record, further alleged that Pitts told the same undercover FBI agent—in text message exchanges and during secretly recorded meetings—that he intended to travel to Philadelphia to conduct reconnaissance in furtherance of the next al Qaeda terrorist attack.
According to the supporting affidavit, Pitts told the undercover FBI agent that he knows Philadelphia best because it is his hometown; that Philadelphia would be the “big target”; and that the attack “will be done” on Labor Day. In a meeting on July 1, 2018, Pitts allegedly showed the FBI agent a map of Philadelphia; pointed out multiple landmarks as worthy targets, including the Federal Building and City Hall; and stated a truck bomb like the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage. When the undercover FBI agent commented to Pitts that people would die and body parts would be flying around, Pitts signaled no remorse, stating “I don’t care,” and “would be able to go to sleep.”
The U.S. Attorney’s Office in Philadelphia has been coordinating with both the FBI, Philadelphia Field Office and the Philadelphia Police Department to share all available information and assess any imminent threats. All law enforcement partners remain in constant communication about the case and will work together to determine what next steps will be taken in connection with the information gathered.
“Protecting this country from terror attacks is the first priority of the Department of Justice and the U.S. Attorney’s Office,” said U.S. Attorney McSwain. “This case is another stellar example of different agencies and prosecutors working together to keep our citizens safe. Our Office has been in constant communication with authorities in Cleveland, as well as the FBI and the Philadelphia Police Department. I want to particularly commend the FBI for its fast-paced and thorough investigation of this matter. The public can rest assured that authorities across this great country work every day, around the clock, to protect America and her residents from terrorism.”
“All across the country, each and every day, the FBI’s Joint Terrorism Task Forces are working fervently to detect and deter disturbing plots like this. Our Cleveland JTTF is to be highly commended for this important investigation and arrest,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The details of Pitts’ alleged plan of attack here are chilling. He saw this city, his hometown, as an attractive symbol—and the perfect target—because of Philadelphia’s central role in this nation’s founding. Philadelphia stands for freedom, for life, liberty, and the pursuit of happiness; ideals that are anathema to extremists like al Qaeda, and, it appears, Demetrius Pitts.”
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Felon Who Escaped from Federal Custody and Shot up Grand Prairie Apartment ComplexRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted Alvin Christopher Penn, 28, for escaping from federal custody in Hutchins, Texas and being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Penn is scheduled to be sentenced on December 3, 2018. He faces a maximum penalty of 10 years’ imprisonment for the felon-in-possession charge and five years’ imprisonment for the escape charge.
During the course of the trial, the jury heard evidence that Penn was serving a sentence for a federal conviction for being a felon in possession of a firearm. As a part of his federal sentence, Penn was assigned by the Bureau of Prisons to serve out the end of his sentence at a residential reentry center in Hutchins, Texas.
On July 6, 2017, Penn was permitted to leave the residential reentry center to go to work in Fort Worth, Texas. However, instead of going to work, Penn went to an apartment complex in Grand Prairie. Penn accepted a loaded firearm from a family member and shot several rounds at two men, which started a shootout throughout the apartment complex. Penn took the firearm with him as he drove away from the apartment complex.
A police officer observed Penn driving a vehicle in Grand Prairie that matched the description of the suspected shooter’s vehicle and began following Penn. Penn attempted to evade the officer and engaged in a high-speed chase through a residential neighborhood, achieving speeds of 70-80 miles per hour. Penn lost control of the vehicle, drove through a fence of another apartment complex, and crashed into a building. After crashing the vehicle, Penn took the gun with him, brandished it at a bystander, and threw the firearm over the fence before fleeing from police. He did not return to his residential reentry center and was apprehended approximately a month later.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the Grand Prairie Police Department investigated. Assistant U.S. Attorneys Jamie L. Hoxie and Marcus Busch are prosecuting the case.
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Federal Jury Convicts El Paso Man on Drug Trafficking ChargesRead the Press Release
LUBBOCK, Texas — Following a one-day trial today before Senior U.S. District Judge Sam R. Cummings, a federal jury has convicted Enrique Rodriguez, 37, of El Paso, Texas, for his role in smuggling heroin and cocaine into the United States, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Rodriguez was convicted on one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of possession with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute 500 grams or more of cocaine. Judge Cummings ordered a presentence report prepared and will set a sentencing date once the presentence report is filed. Rodriguez has been in federal custody since his arrest on April 25, 2018.
According to evidence presented at trial, on April 25, 2018, an Investigator with the 32nd Judicial District Attorney’s Office conducted a traffic stop of a 2007 Ford Escape for an expired vehicle registration sticker. After noticing numerous indicators of suspicious activity, the Investigator had a narcotics detection canine do an open-air sniff around the Ford Escape. The canine alerted to the odor of narcotics coming from the vehicle.
A later search of the 2007 Ford Escape yielded two kilograms of heroin and one kilogram of cocaine. Law enforcement later recovered two more kilograms of cocaine hidden inside the center console of the vehicle.
During the trial, the United States presented evidence that Rodriguez was a Lieutenant in the Barrio Azteca criminal street gang. It also presented evidence that Rodriguez had smuggled the drugs from Mexico into the United States on April 24, 2018, for the Juarez Cartel and its enforcement arm, La Linea. In total, Rodriguez had smuggled approximately 1,000 pounds of heroin and 1,000 pounds of cocaine into the United States.
The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The 32nd Judicial District Attorney’s Office, the Texas Department of Public Safety, and Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Juanita Fielden, Anderson Hatfield, and Jeffrey Haag are prosecuting the case.
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FWC Urogynecology, LLC Agrees to Pay $1.7 Million to Settle False Claims Act Liability for Misuse of Medicare Billing CodesRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that FWC Urogynecology, LLC, a network of urogynecology practitioners throughout Florida, has agreed to pay the United States $1,700,000.00 to resolve allegations that it violated the False Claims Act by knowingly billing the government for services that were inflated or that it did not provide.
The settlement relates to FWC Urogynecology’s use of Medicare billing codes with modifier 25. A provider’s use of a modifier on healthcare claims can allow additional payment from government programs. Here, FWC Urogynecology knowingly billed modifier 25 for services that were not billable or that it did not provide.
According to the settlement agreement, from February 1, 2012, through January 12, 2017, FWC Urogynecology knowingly billed modifier 25 to receive additional payment from the United States. For example, FWC Urogynecology’s physicians performed and billed for lavage treatments and pelvic floor therapies and then billed modifier 25 as if they provided another service, although no additional medical care was provided.
“A primary mission of the United States Attorney’s Office is protecting Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Maria Chapa Lopez. “Our Civil Division works tirelessly in the pursuit of providers who bill for services they do not provide to patients.”
“I applaud the Department of Justice and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The Department of Justice’s efforts safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“Misrepresenting alleged services to inflate costs is just plain and simple greed,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in schemes to defraud the American taxpayer.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee of an FWC Urogynecology provider, Holly Loebl. Mrs. Loebl sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Mrs. Loebl will receive $306,000 of the proceeds from the settlement with FWC Urogynecology.
This settlement resulted from an investigation coordinated by Assistant U.S. Attorney Jeremy R. Bloor, with assistance from the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services, Office of Inspector General.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is captioned United States ex rel. Holly Loebl v. Urogynecology Specialists of Florida, LLC and Florida Woman Care, LLC, Docket Number 6:16-cv-1722-Orl-37KRS. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Crips Gang Member Sentenced to Seven Years in Prison for Racketeering Conspiracy in NebraskaRead the Press Release
A violent member of the Omaha, Nebraska area Crips Gang was sentenced today to seven years in prison at the federal courthouse in Omaha, following his Feb. 22 jury trial conviction for participating in a racketeering conspiracy involving acts of violence, including attempted murder and assaults, witness tampering, and drug distribution.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly for the District of Nebraska made the announcement.
Jerell Haynie aka “Bootie,” 35, of Omaha, was sentenced by U.S. Senior District Judge Joseph F. Bataillon, who also ordered him to serve a three year term of supervised release following his prison sentence.
According to evidence presented at trial, from 2008 to 2016, Haynie conspired to conduct and participate in the affairs of the Omaha-area chapter of the Crips, known as the “40th Avenue and 44th Avenue Crips,” through a pattern of racketeering activity. As a long-standing gang member, Haynie engaged in cocaine trafficking and personally committed acts of violence for the gang in furtherance of the racketeering conspiracy. The evidence presented at trial revealed that Haynie attempted to kill a fellow Crips member suspected of cooperating with the police by shooting a gun at him multiple times. According to trial evidence, in another incident of violence, Haynie and other gang members participated in a shooting in which they attempted to kill a police informant who made controlled drug purchases from Crips members.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Commodity Pool Operator Indicted for Defrauding Investors and Attempting to Obstruct JusticeRead the Press Release
A four-count indictment was unsealed today in federal court in Brooklyn, New York, charging commodity pool operator Harris Landgarten with commodities fraud, wire fraud and attempting to obstruct an official proceeding by the Commodity Futures Trading Commission (the “CFTC”) into his fraudulent conduct. Landgarten was arrested on Saturday and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara. If convicted of these charges, Landgarten faces a maximum sentence of 25 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter R. Rendina, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and James McDonald, Director, Division of Enforcement, Commodity Futures Trading Commission (CFTC), announced the charges.
“As alleged in the indictment, Landgarten defrauded commodities investors by using their money to pay personal bills, and then compounded his crime by pressuring a victim investor to lie in an attempt to make the investigation go away,” stated United States Attorney Donoghue. “Our message is clear, those who engage in such crimes will be prosecuted to the fullest extent of the law.”
“Mr. Landgarten devised an audacious scheme to swindle his clients who placed their trust in him, then further victimized an investor by allegedly only returning funds if a complaint against him was withdrawn, a classic case of greed to fund his own personal lifestyle,” stated USPIS Inspector-in-Charge Rendina. “Postal Inspectors will never tolerate abuse of the public trust, and will bring those to justice who violate the laws that protect the investing public.”
“As this case shows, the CFTC will work vigilantly to root out fraud from our markets, and we will not be deterred by those who attempt to obstruct our investigations,” stated CFTC Director of Enforcement McDonald. “To ensure both that our markets are protected from fraud and that wrongdoers are held accountable, we will continue to work in parallel with our law enforcement partners, and I am grateful for the work of the United States Attorney’s Office in this case.”
According to court papers, Landgarten operated a commodity pool known as Tradeanedge Members Fund, L.P. The fund’s three investors invested a total of approximately $150,000. From approximately July 2014 to March 2017, Landgarten prepared and sent the investors balance statements that hid the fact that he had spent more than $100,000 of the investors’ money, including on personal expenses such as a home security alarm, cable television and internet service, cell phone, online book subscription and $1,250 monthly payments to himself. After the CFTC initiated an investigation, Landgarten pressured a defrauded investor to submit a false statement to the CFTC and to withdraw the complaint the investor filed with the agency. Landgarten conditioned the return of what remained of the investor’s money upon the investor’s withdrawal of his complaint.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud section. Assistant United States Attorney Hiral Mehta is in charge of the prosecution.
The Defendant:
HARRIS LANDGARTEN
Age: 66
Glen Head, New YorkE.D.N.Y. Docket No. 18-CR-328 (NGG)
Carbondale Man Charged with Making a False Threat to Blow up a U.S. Military Recruiting CenterRead the Press Release
On July 2, 2018, George Rita II, 42, of Carbondale, Illinois, appeared in United States District Court on a Complaint charging him with falsely making a threat to blow up a Carbondale, Illinois Military Recruiting Center, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Rita was arrested and charged on June 29, 2018, for posting a threatening anonymous message to a Federal Bureau of Investigation (FBI) tip line located in Clarksburg, West Virginia. The message claimed that the sender planned to go to a recruitment center and blow it up and that no one could stop him. No location was given for the threatened recruitment center.
Agents of the FBI were able to determine that the threat received in West Virginia originated in Southern Illinois and ultimately tracked the internet connection that was the source of the threat back to Rita’s Carbondale apartment. Agents also determined that the threat was against a U.S. Military Recruiting Center in Carbondale, close to Rita’s apartment.
The complaint charges Rita with Maliciously Conveying False Information Regarding a Bomb Threat in violation to Title 18, United States Code, Section 844(e). This violation carries possible penalties of up to 10 years imprisonment and a fine of up to $250,000. Rita was ordered detained in federal custody by a United States Magistrate Judge pending further court proceedings.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the FBI, with assistance from the Carbondale, Illinois Police Department and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Border Patrol Agent Arrested for Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Keith E. Hook, age 54, of Oswego, New York, appeared in federal court today on a charge that he distributed child pornography over the internet, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Hook, a United States Border Patrol Agent, used the Kik Messenger application to distribute child pornography to other Kik users from April 30, 2018 through May 4, 2018. As alleged in the complaint, an initial forensic review of his personally owned iPod revealed that it contained approximately 34 image files and 2 video files depicting child pornography. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Hook appeared today before United States Magistrate Judge Andrew T. Baxter, who ordered him detained pending a hearing scheduled for July 6, 2018.
If convicted, Hook faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Hook would be required to register as a sex offender.
This case is being investigated by HSI Syracuse with assistance from the U.S. Department of Homeland Security, Office of Inspector General (DHS/OIG); U.S. Customs and Border Protection, Office of Professional Responsibility; the New York State Police Computer Crimes Unit; and the New York State Police (Fulton station). The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Bolivian Man Pleads Guilty to Obtaining U.S. Citizenship by FraudRead the Press Release
ALEXANDRIA, Va. – A Bolivian national pleaded guilty today to obtaining his naturalized citizenship through fraud by failing to disclose his arrest and other criminal conduct committed prior to becoming a United States citizen.
According to court documents, Pablo Marin Llanos Martinez, 36, appeared for a naturalization ceremony in November 2008 at the federal courthouse in Alexandria. As part of his application process, Llanos Martinez was required to disclose to the government any criminal conduct or arrests. Llanos Martinez falsely responded that he had no such criminal activity. He then took an Oath of Allegiance to become a United States citizen.
According to the statement of facts filed with the plea agreement, nearly two months prior to the ceremony, in September 2008, Llanos Martinez committed destruction of property and grand larceny offenses in Arlington. In late September 2008, Llanos Martinez had also been arrested in Arlington for a separate incident involving attempted grand larceny, grand larceny, and possession of burglary tools. He was later convicted in July 2009 of these felony offenses. Had Llanos Martinez admitted the truth concerning his criminal conduct and arrest, he would not have been allowed to become a United States citizen just two months later.
Llanos Martinez pleaded guilty to unlawful procurement of naturalization and faces a maximum penalty of 10 years in prison as well as automatic revocation of his U.S. citizenship when sentenced on September 21. 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 Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Special Assistant U.S. Attorney Raizza Ty and Assistant U.S. Attorney Ronald L. Walutes, Jr. are 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. 1:18-cr-216.
Blood Gang Member Sentenced to More Than 17 Years After Conviction for Felon in Possession ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today, Senior United States District Judge W. Earl Britt sentenced BAKARI MAURICE TEACHEY aka “Double R”, 27 a Rocky Mount resident, to 210 months imprisonment followed by 3 years of supervised release. On February 9, 2018, TEACHEY was convicted in a three-day jury trial of 3-counts of Possession of a Firearm and/or Ammunition by a Convicted Felon.
The evidence at trial showed that TEACHEY pistol-whipped a man on May 9, 2017, and the victim received medical treatment. Two days later, TEACHEY was found in possession of a stolen Ruger 9mm pistol during a traffic stop by the Rocky Mount Police Department. On August 4, 2017, Rocky Mount Police Officers executed a search warrant on the home that TEACHEY shared with his fiancée after a reported shooting on South Vyne Street in Rocky Mount. The officers located numerous firearms and ammunition including a Smith and Wesson M&P AR 15 rifle, a Century Arms 7.62x39 AK 47 rifle, a Glock 9mm pistol with an extended magazine, a .357 Taurus revolver, and assorted ammunition including ammunition for the caliber of firearms recovered and other ammunition. The officers also located drug paraphernalia, marijuana, and counterfeit U.S. currency.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Rocky Mount Police Department, the Cumberland County Sheriff’s Office, the North Carolina State Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette represented the government in this case.
Beckley Woman Sentenced to Federal Prison for Her Role in Drug Trafficking ConspiracyRead the Press Release
Defendant is latest to be sentenced out of nearly two dozen defendants after long-term narcotics investigation
BECKLEY, W.Va. – A Beckley woman was sentenced to federal prison on drug charges, announced United States Attorney Mike Stuart. Detria Carter, 33, of Beckley, previously entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Carter was sentenced to 151 months, or 12 years and 7 months, in federal prison. U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“Instead of learning a lesson from her brother who was locked up on unrelated drug charges, Detria Carter decides to maintain his drug business,” said United States Mike Stuart. “Now she’ll be spending almost 13 years in federal prison.”
Carter previously admitted that between October 2016 and June 28, 2017, she took part in a drug trafficking conspiracy with multiple participants. During this time period, she was assisting her brother in maintaining a drug trafficking organization while he was incarcerated on unrelated drug charges. The drug trafficking organization was responsible for distributing cocaine, crack cocaine, and heroin in and around Raleigh County. During the course of the conspiracy, Carter admitted to having other participants in the conspiracy cook cocaine into cocaine base or “crack” at her house and to distributing the controlled substances in and around Southern West Virginia.
Additionally, Carter admitted that on May 25, 2017, she was stopped by an officer with the Beckley Police Department. At this time, Carter possessed 996 grams of cocaine, approximately 454 grams of cocaine base, or “crack,” and a quantity of fentanyl. Carter admitted that it was her intent, and the intent of the drug trafficking organization, to distribute these controlled substances in Raleigh County. Police officers also found two firearms within the same bag the controlled substances were found.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Six defendants have been sentenced for their involvement in the drug conspiracy. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, have been sentenced by United States District Judge Irene C. Berger. Cheyenne Fragale received a sentence of 12 years in federal prison while Macon Fragale will serve 16 years and 8 months. Judge Berger also sentenced Rory White of Montgomery to 125 months in federal prison. Tiffany Ramsey, also from Boomer, was sentenced to 46 months in federal prison by Judge Berger. Dominic Copney of Beckley, has been sentenced to two years in federal prison by Senior United States District Judge David A. Faber. Donald Scalise, of Montgomery, was sentenced to three years in federal prison for conspiring to distribute oxycodone. He was also sentenced by United States District Judge Irene C. Berger. Others still awaiting sentencing include Velarian Carter, of Beckley, who faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on July 10, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on July 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on July 11, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on July 10, 2018.
Shaun Jones has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on July 11, 2018.
Corey Larkin previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on July 11, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on July 10, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on July 10, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. Charles Hill, aka “Unc,” of Beckley, entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, and a quantity of cocaine. They both face at least five years and up to 40 years in federal prison when they are sentenced on July 11, 2018.
Jonathan O. Brockman of Kimberly, Fayette County, previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of fentanyl, a quantity of oxycodone, and a quantity of marijuana for remuneration. David Shaun Coleman of Fayette County entered his plea to conspiracy to distribute more than 100 grams of heroin and a quantity of oxycodone. Rashaun Carter, aka “Show,” of Raleigh County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, and a quantity of cocaine, and a quantity of fentanyl. Each of these defendants face at least five years and up to 40 years in federal prison when they are sentenced on July 24, 2018.
Derrick L. Staples, of Charleston, entered a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin and faces a minimum of 10 years and up to life in federal prison when he is sentenced on July 24, 2018. Shaun L. Givens, of Beckley, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and faces at least five years and up to 40 years in federal prison when he is sentenced on July 25, 2018.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentence.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Bailey Boys Associate Member Pleads Guilty to MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Raymel Weeden, 25, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to discharge of a firearm causing death. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life, and a $250,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on February 9, 2012, the defendant, a Bailey Boys Gang associate, along with Bailey Boys Gang member Rayshod Washington, attempted to rob Fred Rozier of drugs and money. During the course of the attempted robbery, when Fred Rozier resisted the robbery attempt, Weeden shot and killed Rozier.
The Bailey Boys Gang is a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
Rayshod Washington was previously convicted.
Today’s plea is the result of an ongoing investigation on the part of the U.S. Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Buffalo Police Department, under direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for October 10, 2018 at 9:00 a.m. before Judge Skretny.
Attorney General Jeff Sessions Announces Uttam Dhillon as New Acting Administrator of Drug Enforcement AdministrationRead the Press Release
Today, Attorney General Jeff Sessions announced the appointment of Uttam Dhillon as Acting Administrator of the Drug Enforcement Administration. Dhillon will replace Robert Patterson, who has retired after 30 years of service.
"With one American dying of a drug overdose every nine minutes, there can be no doubt that we are facing the deadliest drug epidemic in our history," Attorney General Sessions said. "The work of the Drug Enforcement Administration is critical to fighting this crisis, and President Trump and I are committed to continuing to give it the strong leadership it deserves. That is why I am pleased to appoint Uttam Dhillon as Acting Administrator. Uttam is a dedicated public servant who has served with distinction in the White House, the Department of Justice, the Department of Homeland Security, Congress, and as a career federal prosecutor taking on drug traffickers at the highest levels. I would also like to thank my good friend Robert Patterson for his exemplary service throughout his 30 years with the Drug Enforcement Administration, most recently as Acting Administrator."
Dhillon began serving in the role of Acting Administrator today.
Dhillon has had a long career battling drug traffickers and violent crime. In 2006, Dhillon was confirmed by the Senate as the first Director of the Office of Counternarcotics Enforcement at the Department of Homeland Security. In that role, Dhillon served as the primary policy advisor on counternarcotics issues, focused on combating the connections between illegal drug trafficking and terrorism and developed regional counternarcotics strategies for DHS.
Prior to DHS, Dhillon served as an Associate Deputy Attorney General in the Department of Justice, where he chaired the Attorney General’s Anti-Gang Coordination Committee, and led efforts to formulate and implement Department of Justice policies and programs to combat violent crime and criminal gangs. Earlier in his career, Dhillon worked as an Assistant United States Attorney in the Central District of California for 6 ½ years. During that period, Dhillon was appointed to the Department of Justice’s Organized Crime Drug Enforcement Task Force, and worked with federal and local law enforcement agencies to direct complex investigations of violent gangs and major narcotics trafficking organizations.
More recently, Dhillon has served as Deputy Counsel and Deputy Assistant to the President. Dhillon also has significant experience in the Legislative Branch, holding several senior roles including Chief Oversight Counsel for the House Financial Services Committee, Chief Counsel and Deputy Staff Director for the House Select Committee on Homeland Security, and Senior Investigative Counsel for the House Committee on Oversight and Government Reform. Both prior to and subsequent to his public service, Dhillon worked for several large law firms.
Dhillon received his law degree from Boalt Hall School of Law at the University of California, Berkeley, an M.A. from the University of California, San Diego, and a B.A. from California State University, Sacramento.Arizona Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Jackson, Miss. – Marco Antonio Munguia, Jr., 43, of Arizona, pled guilty today before U.S. District Judge Carlton W. Reeves to possession with the intent to distribute 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On May 25, 2017, Meridian Police Department conducted a traffic stop of a vehicle. Munguia was the registered owner of the vehicle and seated in the passenger seat. The officer noticed that the passenger airbag comportment had been modified. A consensual search of the vehicle resulted in the seizure of approximately 1.5 pounds of heroin and 1.25 pounds of methamphetamine from the hidden compartment. Munguia’s fingerprints were confirmed on that package containing the methamphetamine and heroin.
Munguia will be sentenced by Judge Reeves on September 24, 2018, at 1:30 p.m. and faces a maximum penalty of life in prison followed by a $10 million fine.
The case was a joint investigation by the Meridian Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Arizona Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Todd Sinclair, 50, of Cape Creek, AZ, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to being an unlawful user of a controlled substance in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case stated that between November 1, 2015, and January 8, 2016, the defendant was unlawfully using heroin. During that time, Sinclair possessed a Glock handgun.
The plea is the result of an investigation by the Department of Justice Office of the Inspector General, under the direction of Special Agent-in-Charge Guido Modano, New York Field Office.
Sentencing is scheduled for October 12, 2018, at 11:00 a.m.
Allentown Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. – A Lehigh County resident pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Clayton D. Dudley, 31 of Allentown, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 30, 2017, Dudley distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Oct. 31, 2018, at 1:00 p.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Dudley.
Acoma Pueblo Man Sentenced to 15 Years for Federal Voluntary Manslaughter and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Darius L. James, 41, an enrolled member and resident of Acoma Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 15 years in prison for his conviction on voluntary manslaughter and firearms charges. James will be on supervised release for three years after completing his prison sentence.
James was arrested on Aug. 24, 2017, on a criminal complaint charging him with killing an Acoma Pueblo man by shooting him on the Acoma Pueblo Indian Reservation in Cibola County, N.M. According to the complaint, James found the victim hidden in a bedroom closet in his [James’] residence. As the victim fled the scene, James followed him into a nearby field and fired several shots, hitting the victim three times and killing him. At the time, James was prohibited from possessing firearms or ammunition because he was a convicted felon.
On Jan. 11, 2018, James pled guilty to a felony information charging him with voluntary manslaughter and brandishing a firearm during a crime of violence. In entering the guilty plea, James admitted that on July 24, 2017, he shot the victim with a rifle. James acknowledged that he was prohibited from possessing firearms because he was a convicted felon, and agreed to forfeit his firearms and ammunition.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA Office of Justice Services and the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Nicholas J. Marshall prosecuted the case.
Saturday 30 June 2018
High school assistant track coach faces federal child sexual exploitation and pornography chargesRead the Press Release
Defendant is alleged to have had hundreds of videos and other images on his cell phone
PRESS RELEASE
Indianapolis-Josh J. Minkler, the United States Attorney for the Southern District of Indiana, announced today that an Attica Indiana High School assistant boys and girls track coach was arrested on child exploitation charges. Jeremy Kelley, 39, from the town of Attica, was arrested yesterday and faces charges of sexual exploitation of a child, receipt of child pornography and possession of child pornography.
“Protecting and advocating for our most vulnerable has always been a top priority of my office,” said Minkler. “Those who take advantage of this district’s children can expect the full hammer of federal prosecution.”
In January 2018, law enforcement officials from the Montgomery County Sheriff’s Office received a tip from the National Center for Missing and Exploited Children. The follow-up investigation lead officials to a social media account owned by Kelley. Montgomery County deputies obtained search warrants for Kelley’s accounts and found over 16,000 images, most of which contained child pornography and over 500 video files.
On June 29, 2018, federal and local law enforcement served a search warrant at Kelley’s residence and found 451 videos and 27,000 images, most of which contained child pornography on his telephone.
Kelley was arrested and remains in the custody of the U.S. Marshal’s Service. He will have an initial hearing in Indianapolis on Monday, July 2, 2018.
The public is encouraged to call law enforcement officials if they have any reason to believe Kelley may have had inappropriate contact with their children or other youth in the community. The toll-free number is 800-CALLFBI (225-5324) or www.fbi.gov/tips
This case was investigated by the FBI, Indianapolis Metropolitan Police Department and the Montgomery County Sheriff’s Office.
According to Assistant United States Attorney Tiffany J. Preston, Kelley could face decades in prison if convicted.
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent until proved otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit children through the use of social media and to work closely with Project Safe Childhood. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1 and 4.2
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Friday 29 June 2018
York Gang Member Sentenced to 30 Years in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Court Judge Yvette Kane sentenced Anthony Sistrunk, a/k/a “Kanye,” age 30, a member of a gang that has operated for a decade or more in the City of York, to 30 years’ imprisonment for racketeering and drug distribution conspiracies.
According to United States Attorney David J. Freed, Sistrunk was identified as a member of the “Southside” street gang and the “Bloods.” The United States presented evidence at the sentencing hearing on Sistrunk’s involvement in the violent gang activity that was the subject of the two-month long trial. Judge Kane was reminded that in November 2012, Sistrunk and his fellow gang members were involved in the assault and killing of a patron at a local restaurant.
In addition, Sistrunk was involved in the July 8, 2007, murder of Michael Concepcion in the City of York. While evidence of this murder was not presented at Sistrunk’s federal racketeering trial, the United States introduced evidence of this event at his sentencing. The evidence presented showed that on that Sunday morning Sistrunk and a fellow gang member drove through back alleys of a rival’s neighborhood. Sistrunk’s companion shot an assault rifle at rivals, killing one and injuring a four-year old girl who was sitting in her home. Juan Henriquez, who was the shooter, is currently serving a 20-40 year sentence in state prison for third degree murder.
Judge Kane noted that the violence associated with the gang was some of the worst the city had ever scene. Even with the prospect of a life sentence pending before him in this federal case, Sistrunk continued with his associations and activities. While facing sentencing, prison guards searched Sistrunk’s cell and found him in possession of a cellular telephone that had been smuggled into the prison. They also found marijuana under his bed. Judge Kane noted that while Sistrunk fully deserved a life sentence, she was concerned about sentencing disparity with other defendants. The judge found that 30 years in prison was enough time in prison to reform Sistrunk and protect the public.
In November 2015, a jury convicted Sistrunk of racketeering conspiracy, drug trafficking conspiracy, and drug trafficking after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury also convicted the other 11 men who went to trial with Atkinson.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges. The individual defendants and the charges on which they were sentenced:
Rolando Cruz, Jr., “Mico,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 3, 2017, to life in prison.
Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) was sentenced on October 25, 2017, to life in prison.
Douglas Kelly, a/k/a “Killer,” age 39, racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on December 12, 2017, to life in prison.
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced on February 12, 2018, to life in prison.
Roscoe Villega, a/k/a “P Shawn,” age 44; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 25 years in prison.
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 200 months in jail on December 7, 2017,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver was sentenced to 165 months in jail on December 21, 2017,
Richard Nolden, age 28; racketeering conspiracy was sentenced to 25 years in prison on December 21, 2017,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
The individual defendants and the charges on which they are awaiting sentencing:
Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Southside gang members who pleaded guilty to racketeering conspiracy prior to the trial are and who are awaiting sentencing are:
James Abney, a/k/a “Doocs,” age 31.
Malik Sturdivant, a/k/a “Base,” age 25.
Jahkeem Abney, a/k/a “Foo,” age 27.
Ronald Payton, a/k/a “Ron Ron,” age 25.
Cordaress Rogers, a/k/a “Tank,” age 31.
Marquis Williams, a/k/a “Quis,” age 29.
Jerrod Brown, a/k/a “Boogie,” age 28.
Quintez Hall, a/k/a “Q,” age 25.
The case included the participation and assistance of the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted 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.
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Wisconsin Man Indicted in 30 Million Dollar Fraud SchemeRead the Press Release
United States Attorney Matthew D. Krueger announced that on June 26, 2018, a federal grand jury in Milwaukee returned an indictment charging Albert Golant, aka Alex Golant, (age: 37) of Wales, Wisconsin with twelve counts of wire fraud and bank fraud. Golant is charged with seven counts of wire fraud, in violation of Title 18, United States Code, Section 1341 and five counts of bank fraud in violation of Title 18, United States Code, Section 1344. Each of the wire fraud charges contained in the indictment carries a maximum penalty of up to twenty years in prison and a fine of up to $250,000, or both. Each of the bank fraud charges contained in the indictment carries a maximum penalty of thirty years in prison and a fine of up to $1 million, or both.
The indictment alleges that Golant has been involved in the business of purchasing luxury vehicles in the United States using straw buyers and shipping them overseas to individual foreign buyers both directly and through vehicle brokers. Golant, and others, knowingly devised and participated in a scheme to defraud. The indictment alleges that it was part of the scheme that Golant obtained funds from third parties, including vehicle brokers, investors, and lenders, by representing that the funds would be used to purchase specific luxury vehicles. Instead, Golant diverted tens of millions of dollars to his own personal use. Golant used the funds to gamble at casinos, to pay off gambling debts, to provide funds to professional gamblers to gamble on his behalf, to pay off prior loans, and to satisfy obligations to other clients.
It was further part of the scheme that Golant fraudulently sold luxury vehicles, which he knew had previously been sold and exported to China, to dealerships in Wisconsin and Illinois. After the vehicle was fraudulently sold to the dealership, Golant represented that he had a customer who would buy the vehicle back from the dealership using financing. Golant submitted false and fraudulent financing applications on behalf of his customers to obtain the financing for the vehicles.
Through his scheme, Golant fraudulently obtained at least $30 million from at least 40 different victims. This matter was investigated by the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Laura S. Kwaterski for prosecution.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Wine Lover Developed a Taste for Embezzlement - Sentenced to 63 Months on Fraud and Money Laundering ConvictionsRead the Press Release
St. Louis, MO – Jason Arnold was sentenced to 63 months imprisonment and five years supervised release for his bank fraud and money laundering convictions related to a scheme to defraud a financial institution and the company he worked for as a controller out of more than $7.6 million. He was also ordered to pay restitution in excess of $6.4 million.
According to court documents, Arnold created a company that had the same name as his employer. He then opened a sham bank account for that company. Between October 2009 and November 2017, Arnold fraudulently deposited into the sham bank account more than 50 checks totaling more than $7.6 million. Arnold then used the proceeds from his scheme to defraud for his personal gain, including to purchase artwork and nearly one million dollars’ worth of rare wine.
Arnold appeared before U.S. District Judge Catherine D. Perry, who noted that “greed” appeared to be the sole motivator for Arnold’s malfeasance.
In addition to the criminal prosecution, extensive forfeiture activities have been undertaken to facilitate the payment of restitution. More than $2.8 million dollars in property including financial accounts has been forfeited by the government. The victim company recovered more than $1.2 million directly from Arnold in the form of wine, watches, coins and firearms.
“This sentence combines incarceration, forfeiture and post-prison supervision. It is a comprehensive response to this significant economic crime,” said U.S. Attorney Jeff Jensen.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Wife of Big Island Capital Fraudster Sentenced to 24 Months in Prison for Her Role in Million Dollar Ponzi SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ALEX REAVES LUNDIN, 26, to 24 months in prison for her role in a $1.1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin. LUNDIN, who pleaded guilty on February 15, 2018, was sentenced yesterday before Judge Wilhelmina M. Wright in U.S. District Court in Saint Paul, Minnesota. When announcing the sentence, the Honorable Judge Wright told LUNDIN, “You assisted your husband in a lengthy and complex fraud scheme at the expense of others. Your victims worked hard for their money; for some it was their life savings. You spent victims’ money on yourself, motivated by selfishness and greed to live a lavish lifestyle that you could not afford.”
U.S. Attorney Erica MacDonald said, “Jeremy Lundin swindled hundreds of thousands of dollars from his friends and associates so that he and Alex Lundin could buy luxury cars and take expensive trips. When Alex Lundin found out about her husband’s fraud, rather than taking steps to stop him or make things right, she helped him keep it going for several more months. The Lundins lied to and stole from honest, hard-working individuals who trusted them. Today’s sentence was another step towards justice for those victims.”
“Alex Lundin used investor money for her personal, financial gain. The Lundin’s spent their client’s investment money to enjoy an extravagant and luxurious lifestyle,” stated Special Agent in Charge Gabe Grchan. “Today’s sentencing illustrates that there are consequences for those who use deceit to enrich themselves at the expense of others. IRS Criminal Investigators will continue to pursue individuals who engage in this type of criminal behavior.”
“Today’s sentencing of Ms. Lundin serves as a reminder of the potential penalty for violating the public’s trust in the U.S. mail”, said Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers the Twin Cities.
“Alex Lundin and her husband defrauded friends and neighbors who trusted them with their life savings,” said Minnesota Commerce Commissioner Jessica Looman. “Investment fraud is a serious crime and this case shows that if you commit fraud in Minnesota, you will be prosecuted.”
According to the defendant’s guilty plea and documents filed in court, from approximately December 2014 through May 2017, Jeremy Lundin claimed that he conducted “options trading” through his business Big Island Capital. He worked through a network of the couple’s associates and friends to solicit investors by promising to generate exponential growth through options trading, and obtained $1.1 million from 51 investors over a roughly two-year period. Between May 2015 and May 2017, at least $992,000 in investor funds was deposited into Jeremy Lundin’s “Big Island Capital” bank account. During roughly the same time period, however, Jeremy Lundin transferred $933,950 from the business account directly into his and LUNDIN’s personal checking account. The couple then used the majority of those investor funds on their personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
According to LUNDIN’s guilty plea and documents filed in court, LUNDIN admitted that by October 2016, she became aware that her husband was not conducting options trading as he promised investors, and that she and Jeremy Lundin had spent all of the investor funds on personal expenses. However, LUNDIN continued to assist her husband in carrying out the scheme for another eight months by soliciting new investors and drafting text messages and emails intended to lull current victim-investors into believing their money was safe. During those final eight months when LUNDIN knowingly participated in the scheme, investors gave Jeremy Lundin another $315,000.
Jeremy Lundin pleaded guilty to one count of mail fraud and one count of money laundering. On February 22, 2018, he was sentenced to 110 months in prison.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant Information:
ALEX REAVES LUNDIN, 26
Mound, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
Sentenced:
- 24 months in prison
- 3 years of supervised release
- $315,000 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Statement Regarding Conclusion of Investigation into Incident Involving Former Asheville Police OfficerRead the Press Release
The U.S. Attorney’s Office for the Western District of North Carolina announced today that federal charges will not be filed against former Asheville Police Department Officer Christopher Hickman, following an investigation into the August 25, 2017, arrest incident involving Officer Hickman and Mr. Johnnie Rush.
In making today’s announcement, U.S. Attorney Andrew Murray stated, “The U.S. Attorney’s Office for the Western District of North Carolina, the Justice Department’s Civil Rights Division, and the Federal Bureau of Investigation conducted a thorough and independent review of all evidence related to this case. After careful examination, the U.S. Attorney’s Office has determined that the evidence does not give rise to a prosecutable violation of the federal criminal civil rights laws.”
The U.S. Attorney’s Office takes allegations of civil rights violations involving law enforcement officers very seriously and we ensure such allegations are investigated fully and completely.
Two Stockton Men Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two indictments this week charging Stockton residents Somnang Chea, 34, with being a felon in possession of ammunition and Phirum Phin, 30, with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Stockton Police officers arrested Chea and Phin after they ran following an attempted a traffic stop. Court documents allege that Chea possessed a fully automatic handgun with a laser sight and a high-capacity magazine with 22 rounds of ammunition, and that Phin possessed a stolen Glock handgun with a laser sight and high-capacity magazine.
Chea and Phin have previously been convicted of felonies and are prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
If convicted, Chea and Phin each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants arepresumed innocent until and unless proven guilty beyond a reasonable doubt.
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.