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16 August 2018
Jefferson Hills Man Convicted of 3rd Federal Drug Trafficking OffenseRead the Press Release
PITTSBURGH, PA. – One former resident of Jefferson Hills, Pennsylvania, pleaded guilty in federal court on one count of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Deon Webb, age 44, pleaded guilty before United States District Court Judge David Cercone.
In connection with the guilty plea, the court was advised that on October 4, 2017, investigators from the DEA and the Allegheny County District Attorney’s office coordinated a controlled purchase to buy cocaine from Deon Webb. Investigators recorded the phone call in which a DEA confidential source contacted Webb and made arrangements to buy cocaine. The confidential source then travelled to a shopping plaza in North Versailles, PA. Webb arrived to the location in his Black Infinity QX60, exited the Infinity, and got into the sources’ car. Webb then gave the source 4.5 ounces of cocaine in exchange for $4,750. Webb then departed from the area. The source then turned over the cocaine to investigators. The Allegheny County Crime Lab tested the substance and the test revealed that it was approximately 120 grams of cocaine.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Due to Webb’s two prior federal drug trafficking convictions, he will face sentencing as a career offender. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense, and the prior criminal history of the defendant. Judge Cercone set sentencing for Thursday, January 17, 2019. Webb will continue to be detained pending sentencing.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Allegheny County District Attorney’s Office – DANET conducted the investigation leading to the guilty plea in this case.
Jamaican man sentenced for scamming Americans with lottery scamRead the Press Release
CLARKSBURG, WEST VIRGINIA – Zicko Peterkin, of Montego Bay, Jamaica, was sentenced today to 38 months incarceration for operating a lottery scam to defraud American citizens, United States Attorney Bill Powell announced.
Peterkin, age 34, pled guilty to one count of “Conspiracy to Commit Wire Fraud” in April 2018. As a part of that conspiracy, Peterkin and others made unsolicited phone calls and emails to hundreds of residents in the United States, making false claims that the recipients had won a multi-million dollar lottery prize and a Mercedes Benz vehicle. Peterkin and co-conspirators told victims that, to receive these prizes, they had to send money to cover “processing fees.” Peterkin also sent images of forged cashier’s checks to the recipients, showing the intended target as the payee of the check. In response, victims wired at least $250,000 to Peterkin and his co-conspirators. The crime occurred from September 2008 to July 2011 in the Northern District of West Virginia and other locations across the country.
Peterkin was also ordered to pay $257,978 in restitution.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The case was investigated by the Treasury Inspector General for the Tax Administration.
Senior U.S. District Judge Irene M. Keeley presided.Jamaican Man Charged with Visa FraudRead 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 Roger Garfield Campbell, of Kingston, Jamaica, was arrested and charged by criminal complaint with visa fraud. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, in October 2015, Campbell applied for a visa to enter the United States as a non-immigrant visitor. The defendant submitted the application to the United States Department of State under the penalty of perjury, and was subsequently interviewed by members of the United States Consulate in Kingston as part of the application process. The complaint states that Campbell provided false information to the Department of State concerning his criminal history in order to obtain the visa. Based on his false representations, the defendant was granted a non-immigrant visa, and entered the United States via the Atlanta Georgia Port of Entry in 2016.
In 2018, members of the Department of Homeland Security received information that Campbell had falsified his visa application and remained in the United States illegally in Rochester, NY. Subsequent investigation conducted by DHS and the Department of State, with cooperation from authorities in the United Kingdom, revealed that the defendant had been convicted of multiple drug trafficking charges in 2002 and 2007 in the United Kingdom, for which he served significant prison sentences. The convictions would have precluded Campbell from receiving a visa to enter the United States.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and remains in custody without bail.
The criminal complaint is the result of an investigation by the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the U.S. Department of State, under the direction of Resident Agent-in-Charge Kenneth Haynes.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that the Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Aggregate Production Quota for Opioids (grams)
2016
2017
2018
2019
(proposed)
Overall
Fentanyl
2,300,000
1,350,000
-41%
1,342,320
-1%
1,185,000
-12%
-48%
Hydrocodone (for sale)
86,000,000
51,900,000
-40%
50,348,280
-3%
44,710,000
-11%
-48%
Hydromorphone
7,000,000
5,140,800
-27%
4,547,720
-12%
4,071,000
-10%
-42%
Morphine (for sale)
62,500,000
35,000,000
-44%
33,958,440
-3%
31,450,000
-7%
-50%
Oxycodone (for sale)
139,150,000
101,500,000
-27%
95,692,000
-6%
85,578,000
-11%
-38%
Oxymorphone (for sale)
6,250,000
3,600,000
-42%
3,395,280
-6%
2,880,000
-15%
-54%
Overall Decline:
303,200,000
198,490,800
-35%
189,284,040
-5%
169,874,000
-10%
-44%
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
“In 2016, Maine implemented regulations limiting the amount of opioid pain medication that doctors could prescribe and requiring prescribing doctors to check an online database to ensure that patients were not doctor shopping,” said U.S. Attorney Frank. “The Department of Justice and DEA are helping in that effort by limiting the amount of opioids produced. It is yet another component of the collective effort required to combat the opioid crisis.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
Justice Department, DEA Propose Significant Opioid Manufacturing Reduction in 2019Read the Press Release
FARGO – The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s "Safe Prescribing Plan" that seeks to "cut nationwide opioid prescription fills by one-third within three years," the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action."
"We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day," said DEA Acting Administrator Uttam Dhillon. "This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine."
U.S. Attorney Chris Myers added "In North Dakota we fully embrace the global approach to reduce the availability of opioids. This fits squarely with the local efforts of the Mayor’s Blue Ribbon Commission and the multi-faceted approach by our partners to fight this battle state-wide. Only by working together and using every available tool will we reduce deaths and prevent the cycle of addiction from starting."
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from "legitimate channels of trade" by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
# # #
Israeli-Moroccan Man Sentenced to 43 Months in Prison in International Business E-Mail Compromise SchemeRead the Press Release
WASHINGTON – Harry Meir Mimoun Amar, a resident and citizen of Israel and Morocco, was sentenced today to 43 months in prison for taking part in an international conspiracy to trick mid-level corporate employees into wiring millions of dollars to bank accounts under the control of those in the criminal enterprise.
The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
In April 2018, Amar, 40, pled guilty in the U.S. District Court for the District of Columbia, to conspiracy to commit wire fraud. Today, he was sentenced by the Honorable Colleen Kollar-Kotelly. Following his prison term, Amar will be placed on 36 months of supervised release. He also must pay $273,321 in restitution and $49,503 in a forfeiture money judgment. Additionally, Amar will be subject to deportation proceedings.
Amar was among 17 people arrested in early 2017 following a multi-year investigative effort by federal and international law enforcement agencies to target multimillion-dollar fraud and money laundering schemes perpetrated by a transnational organized crime network. Amar was arrested in Israel and consented to his extradition to the United States. He has remained in custody since his arrest.
Amar was charged along with others last year with participating in one particular fraud scheme, known as a business e-mail compromise, or “BEC” scheme. One defendant was arrested and prosecuted in Germany for the BEC scheme. Cases against others remain pending.
According to a statement of offense submitted at the plea hearing, Amar and others used the Internet and primarily U.S.-based electronic communications to target mid-sized and large companies and impersonate executive-level employees in e-mail communications with mid-level employees. These mid-level employees were led to believe they were being entrusted to handle a large financial transaction, such as a “secret” corporate acquisition. The employees were instructed to initiate wire transfers from the company’s corporate bank accounts to bank accounts controlled by members of the criminal enterprise. Once the funds were transferred, the money was quickly wire transferred out of the reach of the target corporation into accounts located in the People’s Republic of China and elsewhere, with the funds ultimately being delivered to co-conspirators located in Europe and elsewhere.
In his guilty plea, Amar admitted taking part in the scheme from approximately January 2014 until August 2014, working with co-conspirators who were operating in other countries, including Turkey and Bulgaria. The statement of offense ties Amar to false representations made to four companies from Germany, Spain, Finland and Portugal. According to the statement of offense, the scheme generated $1,093,557 in U.S. dollars. Amar personally received $49,503 of the proceeds.
In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who are investigating the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Israeli National Police, German LKA Baden-Wurttemberg, the Bulgarian Ministry of the Interior, Main Directorate Border Police, and Sofia Interpol.
They acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Brittany Phillips and Elizabeth Swienc, former Paralegal Specialist Christopher Toms, and Litigation Technology Specialist Jeanie Latimore-Brown.
Finally, they commended the work of former Assistant U.S. Attorneys Michael Atkinson and David Last, Assistant U.S. Attorney Diane Lucas, of the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorneys Michael J. Marando and David Kent, of the Fraud and Public Corruption Section, of the U.S. Attorney’s Office for the District of Columbia.
Indianapolis, Indiana Man SentencedRead the Press Release
SOUTH BEND - Shauntel Chambers, age 33, of Indianapolis, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio on his guilty plea to distribution of cocaine, announced U.S. Attorney Kirsch.
Chambers was sentenced to 120 months imprisonment followed by 3 years of supervised release.
According to documents in this case, Chambers pled guilty to distributing cocaine on September 15, 2017. Chambers has three prior felony convictions and has violated probation or conditions of release on four occasions.
This case was investigated by the DEA with assistance from the Mishawaka Police Department. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Indianapolis Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joseph Jay Johnson, age 40, of Indianapolis, Indiana, pled guilty to Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleged that on or about January 30, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Henry County Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
Jackson, TN – Tony Boyd, of Paris, Tennessee was indicted on July 16, 2018, by a federal grand jury for distributing drugs, while being a convicted felon. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
According to the indictment, Boyd is charged with the distributing crack cocaine in the Paris, Tennessee area on six separate occasions. Two transactions occurred within 1,000 feet of the Porter Court Park Playground.
Because of his significant criminal history, if convicted on Counts 1, 3, 4, and 6, Boyd faces up to 20 years imprisonment; $1,000,000 fine and 3 years supervised release. On Counts 2 and 5 he faces up to 30 years imprisonment, $2,000,000 fine and 6 years supervised release. Boyd made his initial appearance in federal court before U.S. Magistrate Judge Edward G. Bryant on August 8, 2018. During a detention hearing on August 14, 2018, the Court ordered the defendant remanded to custody.
U.S. Attorney Dunavant said, "Recidivist drug traffickers create havoc and jeopardize public safety, especially in small rural communities and school zones. Drug dealers can no longer hide in any part of the Western District of Tennessee, and this indictment demonstrates our commitment to remove career drug dealers from our streets."
The case is being investigated by the Metro Crime Unit of Henry County Sheriff’s Office and the Tennessee Bureau of Investigation.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Gulfport Man Sentenced to Prison for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – Fabeon Ah’Keem Minor, 19, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to 8 months in federal prison followed by three years of supervised release for possession of a firearm with an obliterated serial number, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Minor was ordered to spend 8 months in a halfway house following release from the Bureau of Prisons. He was also ordered to pay a $5,000 fine.
The case began with the Gulfport Police Department searching a home where Minor was residing, finding two firearms and a stack of cash in the closet of Minor’s room. A loaded revolver with the serial number obliterated was found under Minor’s mattress. In another bedroom, police found distribution amounts of marijuana and five more firearms, including a loaded MK-99 7.62 caliber rifle under the mattress.
U.S. Attorney Hurst commended the work conducted by agents of the ATF and officers of the Gulfport Police Department. The case was prosecuted by Assistant United States Attorney Annette Williams.
Genovese Crime Family Associate Sentenced to 25 Years in Prison for Murder Conspiracy and Other Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SALVATORE DELLIGATTI was sentenced today in Manhattan federal court to 25 years in prison for conspiring to participate in the Genovese Organized Crime Family of La Cosa Nostra through a pattern of racketeering activity, conspiring and attempting to commit murder in aid of racketeering, conspiring to commit murder-for-hire, and other related offenses. DELLIGATTI, 42, was previously convicted by a jury following a three-week trial, and was sentenced in Manhattan federal court by the U.S. District Judge Katherine B. Forrest.
U.S. Attorney Geoffrey S. Berman said: “Salvatore Delligatti, an associate of the Genovese Crime Family, recruited individuals to ambush and kill his intended victim, even providing them with a gun and getaway car. Now, thanks to the outstanding work of our law enforcement partners, Delligatti will spend 25 years in prison.”
According to court papers filed in Manhattan federal court, other public filings, and the evidence presented in court during the trial:
From at least in or about 2010 through in or about 2015, DELLIGATTI was an associate of the Genovese Organized Crime Family of La Cosa Nostra. During this period, DELLIGATTI conspired with others to participate in and conduct the affairs of the Genovese Family through a pattern of racketeering activity that included a murder conspiracy, an extortion conspiracy, and the operation of an illegal sports betting business. In particular, in May and June 2014, DELLIGATTI hired several individuals from the Bronx to ambush DELLIGATTI’s intended victim outside the victim’s home in Queens. DELLIGATTI offered to pay the individuals several thousand dollars for the murder, and provided them with, among other things, a loaded .38 caliber revolver and a getaway vehicle. As a result of wiretap surveillance of DELLIGATTI by the Nassau County Police Department and the Nassau County District Attorney’s Office, the individuals hired by DELLIGATTI were apprehended just a few blocks from the intended victim’s residence on June 8, 2014.
* * *
Mr. Berman praised the outstanding investigative work of the Nassau County Police Department and the Federal Bureau of Investigation. He also thanked the Nassau County District Attorney’s Office, the Diplomatic Security Service of the United States Department of State, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Jordan Estes, and Jason Swergold are in charge of the prosecution.
Genesee County Physician and Two Others Charged with Health Care FraudRead the Press Release
A grand jury indictment was unsealed today charging Patrick Wittbrodt, Dr. April Tyler and Jeffrey Fillmore of Genesee County with health care fraud and Patrick Wittbrodt with money laundering, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by William P. Conway, Special Agent in Charge, FDA Office of Criminal Investigations’ Chicago Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
The Indictment charges the defendants with a conspiracy to commit health care fraud and 17 counts of health care fraud. The Indictment specifically charges that between 2014 and 2017, the defendants would attend meetings of the United Auto Workers (“UAW”) union. At those meetings, the defendants touted unnecessary prescription pain cream, scar cream, pain patches and vitamins to UAW members. The prescriptions were unnecessary because Dr. April Tyler did not establish a valid doctor-patient relationship with any of the UAW members and/or did not determine medical necessity for the prescriptions she wrote for the UAW members. Many of the compounded pain and scar creams were billed to the insurance company at over $15,000 per prescription.
Over the course of the conspiracy, the defendants caused fraudulent claims to be submitted to Blue Cross/Blue Shield of Michigan and/or Express Scripts totaling approximately $9,500,000. Over the same period, Medicare paid over $800,000 in fraudulent prescription claims.
Defendant Patrick Wittbrodt is also charged with seven counts of money laundering in connection with the illegal proceeds of the health care fraud conspiracy.
“Health care fraud involving medically necessary prescriptions not only is dangerous to those patients receiving the drugs, but also drives up the cost of health care for everyone,” stated United States Attorney Matthew Schneider. “This indictment demonstrates that our office is committed to stamping out health care fraud in the Eastern District of Michigan.”
“When medical professionals and others scheme to illegally provide unneeded drugs to consumers, they violate the public trust,” said William P. Conway, Special Agent in Charge, FDA Office of Criminal Investigations’ Chicago Field Office. “Our office will continue to pursue and bring to justice those who are criminally involved in the distribution of medicines.”
“Writing medically unnecessary prescriptions for health care items and products and thus causing them to be billed to federal and private health insurance programs is wrong and illegal” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General. “Fraudulent acts such as this threaten vitally important programs such as Medicare and the beneficiaries they serve. The OIG will continue to work with our law enforcement and prosecutorial partners to ensure that individuals that perpetuate these types of fraudulent schemes are held accountable.”
Health care fraud, conspiracy to commit health care fraud and money laundering are each punishable by up to 10 years imprisonment and/or a $250,000 fine on each count.
This case is being prosecuted by Assistant United States Attorney Michael Heesters and Health Care Fraud Chief Wayne F. Pratt.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the U.S. Food and Drug Administration.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fulton County Deputy Jailer Indicted for Assaulting InmateRead the Press Release
WASHINGTON – A federal grand jury in Paducah, Kentucky, returned a one-count indictment today charging James Eakes, a deputy jailer at the Fulton County Detention Center, with violating the civil rights of an inmate by assaulting him with a dangerous weapon.
The indictment alleges that on Aug. 14, 2016, Eakes willfully deprived an inmate of the right to be free from cruel and unusual punishment. Specifically, the indictment alleges that Eakes assaulted the inmate with a dangerous weapon, resulting in bodily injury to the inmate.
If convicted of the civil rights charge, Eakes faces a maximum term of imprisonment of 10 years.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Madison Sewell of the Western District of Kentucky and Trial Attorneys Sanjay Patel and Zachary Dembo of the Civil Rights Division are prosecuting the case.
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Former Virgin Islands Senator Convicted of Wire Fraud and Theft of Federal Program FundsRead the Press Release
A former senator for the U.S. Virgin Islands has been convicted for wire fraud and theft of federal program funds for taking money ostensibly being used to fund a historical research project, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Gretchen C. F. Shappert for the District of the U.S. Virgin Islands.
Wayne A.G. James, 56, of St. Croix, U.S. Virgin Islands, was convicted of two counts of wire fraud and one count of theft of federal program funds. Sentencing has been set for Dec. 20.
“Wayne James abused his trusted position as a senator for the people of the U.S. Virgin Islands by stealing tens of thousands of taxpayer dollars to pay his own campaign and personal expenses,” said Assistant Attorney General Benczkowski. “Public corruption undermines confidence in our government institutions and the rule of law. Wayne James’s conviction is a testament to the commitment of the Criminal Division and our law enforcement partners to hold accountable those who breach the public’s trust for their personal gain.”
James was indicted in October 2015. From January 2009 through January 2011, James served as a senator for the U.S. Virgin Islands. According to the evidence admitted at trial, in or about April 2009, James began submitting requests to the Legislature of the U.S. Virgin Islands for funds, ostensibly to pay for research, copying, and translation of historical documents housed at the Danish National Archives related to the Fireburn, a revolt against slave labor that took place in the Virgin Islands in the 1800s. Though James initially did use some of the requested funds to pay for the research project, he soon began to take money for himself. By 2010, James fabricated entire invoices and simply stole the money. James caused the Legislature of the Virgin Islands to pay him over $90,000, approximately $70,000 of which he took for himself. James used the misappropriated government funds to pay his re-election campaign expenses and other personal expenses after his legislative salary was garnished from a tax levy of more than $197,000.
“The U.S. Attorney’s Office for the U.S. Virgin Islands is committed to rooting out fraud and corruption in our government,” said U.S. Attorney Shappert. “The defendant’s betrayal of the people and his elected office is intolerable and we will continue to pursue such abuses of the public trust. Here, the defendant exploited a precious piece of Virgin Islands history for his own purposes. And a Virgin Islands jury held him accountable. ”
The FBI and the Office of the Virgin Islands Inspector General investigated this case. Trial Attorneys Amanda R.Vaughn and Luke Cass of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Delia Smith prosecuted the case.
Former U.S. Border Patrol Supervisor Pleads Guilty, Admits to Violating Civil Rights of Legal Border CrosserRead the Press Release
Assistant U.S. Attorney Colin McDonald (619) 546-9144
NEWS RELEASE SUMMARY – August 16, 2018
SAN DIEGO – Former U.S. Border Patrol Supervisory Agent Martin Rene Duran pleaded guilty in federal court today, admitting that he used his official position to create bogus alerts in a border-security law enforcement database to have an innocent man detained by Customs and Border Protection officers at the San Ysidro Port of Entry.
According to the complaint, the target of Duran’s false alerts was R.C., a man who had accused Duran’s brother-in-law, Raymundo Estrada Figueroa, of sexually abusing R.C.’s child in Mexico. Within one week of those allegations, as admitted during the plea proceedings, Duran directed a subordinate Border Patrol officer to create a law enforcement alert for R.C. which falsely claimed R.C. was frequently armed with a .45 caliber handgun. As Duran admitted today, over the next several months, Duran then entered several false alerts for R.C. into a system known as TECS, the principal database used by officers at the border to assist with screening individuals seeking entry into the United States. In one TECS alert, Duran falsely claimed R.C. was “known to carry firearms” and was linked to a narcotics organization. In another, Duran falsely claimed R.C. had made recent threats to law enforcement.
According to the complaint, R.C.—who is identified only by his initials to protect his son’s identity—is a lawful permanent resident of the United States with no known criminal history. He was detained on multiple occasions at the San Ysidro border crossing in 2013 based on the false alerts entered by Duran. According to the complaint, every time R.C. was detained, no weapons or contraband were found and he was released. On one occasion, R.C. and his wife were removed from their vehicle, handcuffed, separated from their minor children, escorted to the security office and put in a holding cell for almost two hours before they were released. According to the complaint, R.C. believed Duran was trying to pressure him into dropping the charges against Estrada, the brother-in-law. And today, Duran admitted he had R.C. detained at the Port of Entry so he could question him about the matter involving Estrada.
In a separate case earlier this year, Duran was convicted by a federal jury of seven counts of illegal transportation of firearms and one count of possession of a short-barreled rifle. Duran is scheduled to appear before U.S. District Judge Marilyn L. Huff on September 17, 2018 at 9:00 a.m. for sentencing on both matters.
“This agent used his significant power against someone he was sworn to protect,” said U.S. Attorney Adam Braverman. “He targeted a law-abiding citizen because of a personal vendetta, and for that he will pay a price.”
DEFENDANT
Martin Rene Duran Age: 49 Chula Vista
SUMMARY OF CHARGES
Case Number: 15CR2818
Deprivation of Rights Under Color of Law, in violation of Title 18, U.S.C., Sec. 242
Maximum Penalty: 12 months’ custody, a fine of $100,000, one year of supervised release.
Case Number: 15CR2817
Title 18, United States Code, Section 922(a)(3) – Illegal Transportation of Firearms
Maximum Penalties: 5 years’ incarceration, a fine of $250,000, three years of supervised release.
Title 26, United States Code, Sections 5861 and 5871 – Possession of Unregistered Firearm: Maximum Penalties: 10 years’ incarceration, a fine of $250,000, three years of supervised release.
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Immigration and Customs Enforcement – Office of Professional Responsibility
Department of Homeland Security – Office of Inspector General
U.S. Customs and Border Protection - Office of Professional Responsibility
Former Superintendent of Rockbridge County Regional Jail Indicted on Federal Civil Rights ChargesRead the Press Release
Lynchburg, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke has returned an indictment charging two former Rockbridge County Regional Jail officials with federal charges related to federal civil rights violations and falsifying documents to obstruct justice. First Assistant United States Attorney Daniel P. Bubar and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
An indictment returned under seal August 14, 2018 and made public today following the arrest of both defendants charged as follows:
John Marshall Higgins, 61, of Lexington, Va., is charged with four counts of deprivation of rights under color of law, specifically denying a detainee medical care of his serious medical needs, resulting in bodily injury.
Gary Andrew Hassler, 58, of Lexington, Va., is charged with two counts of falsifying documents in order to obstruct a federal investigation.
According to the indictment, during his tenure as superintendent of the jail, Higgins, acting under the color of law, failed to protect the rights of inmates at the Rockbridge County Regional Jail from physical abuse, which resulted in serious bodily injury to the inmates.
In addition, the indictment alleges that Higgins, acting under the color of law, failed to protect the rights of inmates at the regional jail by failing to provide inmates with medical treatment, resulting in bodily injury.
The indictment also accuses Hassler, the former head nurse at Rockbridge County Regional Jail, with falsifying medical documents to impede a federal investigation. Specifically, on or about March 5, 2017, the indictment claims that Hassler falsified a jail medical log for an inmate by falsely claiming that on February 28, 2017, the inmate refused his medication.
Additionally, Hassler is accused of falsifying a Rockbridge Regional Jail Incident Report dated March 5, 2017 by falsely reporting an inmate refused medical care on March 1, 2017.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. The Commonwealth Attorney’s Office for Rockbridge County assisted with the investigation. Assistant United States Attorneys Zachary T. Lee and Matthew Miller will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Senator Wayne James Found Guilty on Wire Fraud and Embezzlement of Government FundsRead the Press Release
"Here, the defendant exploited a precious piece of Virgin Islands history for his own purposes. And a Virgin Islands jury held him accountable."
St. Thomas, USVI –Wayne James, 56, formerly elected to the 28th Virgin Islands Legislature, was found guilty by a federal jury of wire fraud and theft of federal program funds, United States Attorney Gretchen Shappert announced today. District Judge Curtis Gomez remanded James into the custody of the U.S. Marshals after setting his sentencing for December 20, 2018.
In 2008, James was elected by the people of St. Croix to serve in the 28th Legislature of the Virgin Islands. The evidence at trial showed that shortly after taking office, James received approval from the Legislature to conduct research on the 1878 Fireburn, an historic, post-slavery uprising that occurred while the Territory was under Danish rule. The "Fireburn" was a workers’ rebellion where four women, led by Queen Mary, set ablaze 50 sugarcane plantations to bring an end to poor working and living conditions of the plantation workers. In April 2009, then-Senator James began submitting requests to the Virgin Islands Legislature for funds, ostensibly to pay for research, copying, and translation of Fireburn documents housed at the Danish National Archives.
Though James initially used the funds to pay for the research project, he soon thereafter began to defraud the people of this Territory using an elaborate scheme of submitting fake invoices to secure funds. The trial evidence further established that James’ fraudulent scheme was precipitated by his serious financial hardship, including garnishment of his Legislative salary. As a result of a $197,000.00 tax levy, the Internal Revenue Bureau began garnishing James’ wages thereby reducing his bi-weekly $2,057.00 take-home pay to $509.00. During the course of James’ fraudulent scheme, he caused the Legislature to pay him over $90,000, approximately $70,000 of which he kept for himself. The evidence at trial also showed that James diverted the misappropriated funds to pay $20,000.00 for his re-election campaign expenses, and other personal expenses.
Though James received over 1,600 pages of Fireburn documents from the Danish National Archives, trial testimony demonstrated that he never delivered the documents to the Legislature of this Territory. Instead, James kept the historical documents in order to further his future plans of becoming a screenwriter of the Fireburn movie.
"The United States Attorney’s Office for the Virgin Islands is committed to rooting out fraud and corruption in our government," said United States Attorney Shappert. "The defendant’s betrayal of the people and his elected office is intolerable, and we will continue to pursue such abuses of the public trust. Here, the defendant exploited a precious piece of Virgin Islands history for his own purposes. And a Virgin Islands jury held him accountable. "
This case was investigated the Federal Bureau of Investigations and the Virgin Islands Office of Inspector General, and was prosecuted by Assistant United States Attorneys Delia Smith, and Trial Attorneys Amanda Vaughn and Luke Cass of the Criminal Division’s Public Integrity Section.
Former Office Manager for Lincoln Family Wellness Sentenced for Wire FraudRead the Press Release
United States Attorney Joe Kelly announced that Valerie M. Stevens, 36, formerly of Lincoln, Nebraska, was sentenced Tuesday in Lincoln, Nebraska, to 15 months in prison by United States Senior District Judge Richard G. Kopf, for wire fraud. In addition to the prison sentence, Ms. Stevens will also be required to pay restitution in the amount of $222,322.43 and serve three years on supervised release.
From January, 2011, until October, 2016, Valerie M. Stevens served as the office manager for Lincoln Family Wellness, P.C. During this period of time Stevens was given use of a Pinnacle Bank Visa card, in the name of Lincoln Family Wellness. The credit card was billed to Lincoln Family Wellness and Stevens at their business address in Lincoln, Nebraska. Stevens was provided the credit card for the exclusive purpose of paying for office expenditures and was aware that she was not authorized to use the Visa credit card for the purchase of personal items.
During this period of her employment, Stevens made numerous unauthorized charges to the Visa card, to pay for personal expenses for herself and others. Once the Visa card bills were received in the office, Stevens would then pay for these unauthorized personal credit card charges by using the proceeds of Lincoln Family Wellness, P.C. In total, Stevens charged over $130,000 in personal expenses on the Visa credit card.
This case was investigated by the Federal Bureau of Investigation.
Former New York City Police Department Official Pleads Guilty to Conspiring to Bribe Police Officers in Connection with Gun License Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of PAUL DEAN, to his role in a scheme to obtain approval of gun licenses by the New York City Police Department (“NYPD”) License Division in exchange for cash payments and non-monetary bribes. DEAN, once second-in-command of the License Division, pled guilty to one count of conspiracy to commit bribery before U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Paul Dean betrayed his duty as a former leader within the New York City Police Department to protect and serve the public. Instead of assuring the integrity of the License Division he oversaw – a division charged with protecting the public safety by restricting access to firearms – he sought to corrupt it by bribing the very officers once under his command. This Office will continue to stop such corruption which undermines the public’s confidence in the law enforcement officers and institutions sworn to serve us all.”
According to the Indictment and Complaint filed in this case, other public filings, and statements made during the plea proceeding:
DEAN was a member of the NYPD from 1994 through 2016, and was assigned to the License Division from 2008 through 2016. DEAN, a lieutenant, was one of the highest-ranking members of the License Division and, from approximately November 2014 through November 2015, regularly ran the day-to-day operations of the License Division. Robert Espinel was a member of the NYPD from 1995 through his retirement in 2016, and was assigned to the License Division from 2011 through 2016.
From at least 2013 through 2016, multiple NYPD officers in the License Division serving under DEAN’s command, including David Villanueva and Richard Ochetal, solicited and accepted bribes from gun license expediters in exchange for providing assistance to the expediters’ clients in obtaining gun licenses quickly and often with little to no diligence. They obtained bribes from at least three expediters: Gaetano Valastro, a/k/a “Guy,” Frank Soohoo, and Alex Lichtenstein, a/k/a “Shaya.” Valastro was a former NYPD detective who retired in 1999, and who operated a gun store out of which he sold guns, gun paraphernalia, and gun safety courses.
The bribes included cash payments, paid vacations, food and liquor, the services of prostitutes, and free guns, among other things. In exchange, Villanueva, Ochetal, and the other officers approved, expedited, and upgraded licenses for clients of Valastro, Lichtenstein, and Soohoo. They did so by foregoing standard License Division diligence, including by failing to interview the applicants and failing to investigate the business-based need for applicants to carry guns. They approved licenses for individuals with substantial criminal histories, including arrests and convictions for crimes involving weapons or violence, and for individuals with histories of domestic violence.
In 2015, dissatisfied with the fact that private gun expediters were profiting thousands of dollars per gun license applicant when DEAN and others did the work to approve those applications, DEAN and Espinel decided to retire and go into the expediting business themselves. In order to ensure the success of their business, DEAN and Espinel planned to bribe Villanueva and Ochetal, who were still in the License Division, to enable their clients to get special treatment. They also agreed with Valastro to run their expediting and bribery scheme out of Valastro’s gun store. According to the plan, Valastro would benefit from the scheme because DEAN and Espinel would steer successful applicants to Valastro’s store to buy guns. They also tried to corner the expediting market by forcing other expediters to work through them. DEAN and Espinel attempted to coerce Frank Soohoo, another gun license expediter, into sharing his expediting clients with them by threatening to use their influence in the License Division to shut down Soohoo’s expediting business if Soohoo refused to work with, and make payments to, DEAN and Espinel.
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DEAN, 44, of Wantagh, New York, pled guilty to one count of conspiracy to commit bribery. The charge carries a maximum term of five years in prison. DEAN is scheduled to be sentenced by Judge Ramos on November 15, 2018. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department, Internal Affairs Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Russell Capone and Kimberly Ravener are in charge of the prosecution.
Former Employee Sentenced for Wire FraudRead the Press Release
HOUSTON – A 28-year-old former employee of BP America Inc. has been ordered to federal prison for attempting to extort money from the company, announced U.S. Attorney Ryan K. Patrick. George Koutsostamatis pleaded guilty to one count of wire fraud April 16, 2018.
Today, U.S. District Judge Sim Lake ordered Koutsostamatis to serve 27 months in federal prison and furter ordered he pay $552,651.00 in restitution. Koutsostamatis will also serve three years of supervised release following completion of his prison term.
Koutsostamatis admitted that in June 2017 he sent an email to BP falsely claiming that he had infiltrated the company’s computer network system and obtained the personal information of BP employees and their families. He threatened to release internal documents and the personal identifying information if BP did not pay him 125 bitcoins. In truth, Koutsostamatis obtained BP documents while employed there.
Koutsostamatis is on bond pending his reporting date to the bureau of prisons.
The FBI Houston Cyber Task Force investigated this case. The FBI Houston Cyber Task Force is a multi-agency task force responsible for investigating, pursuing and defeating cyber criminals who seek to exploit our nation’s most significant computer systems, networks and critical infrastructure. The Houston field office of the FBI led the investigation with assistance from U.S. Attorney’s Offices in Houston and Chicago, FBI – Chicago field office and the National Crime Agency in the United Kingdom. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Five Men Sentenced on Federal Charges Following Investigation of Drug Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Five people, all from Washington, D.C., have been sentenced this week following guilty pleas to federal charges following an investigation into the trafficking of PCP, crack cocaine and heroin in Southwest Washington.
The sentences, in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The sentences followed an investigation by ATF and MPD targeting the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began in early 2017 after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District. According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
The drug trafficking activity admitted to by the defendants took place within a one-block radius of the corner of Half Street SW and Q Street SW, one block west of Nationals Stadium.
All five defendants were indicted in March 2018 and pled guilty in May 2018 in the U.S. District Court for the District of Columbia. They were sentenced by the Honorable Senior Judge Thomas F. Hogan.
The most recent sentencing took place today. Jerome Fuller, 33, was sentenced to 63 months in prison after earlier pleading guilty to distribution of PCP.
Others sentenced this week include:
-Kione Banks, 21. He was sentenced on Aug. 13 to a 33-month prison term following his guilty plea to conspiring to distribute and possess with the intent to distribute PCP. Banks also is awaiting sentencing in the U.S. District Court for the District of Maryland after pleading guilty to the use of a firearm in furtherance of a violent crime in connection with a string of armed robberies at convenience stores in Prince George’s County.
-Raymond Boston, 27. He was sentenced on Aug. 14 to two years in prison following his guilty plea to conspiracy to distribute and possess with the intent to distribute PCP.
-Damion Littman, 32. He was sentenced on Aug. 14 to 37 months of incarceration following his guilty plea to distribution of PCP.
-Morriko Washington, 24. He was sentenced on Aug. 15 to five years in prison following his guilty plea to possession of a firearm in furtherance of a drug trafficking offense.
Three additional defendants pled guilty to charges and are awaiting sentencing.
In announcing the sentences, U.S. Attorney Liu, Special Agent in Charge Chittum, and Chief Newsham commended the work of those who investigated the case from the ATF and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Legal Assistant Katie Cowley. Finally, they commended the work of Assistant U.S. Attorneys Kevin L. Rosenberg and William Schurmann, of the Violent Crime and Narcotics Trafficking Section, who are investigating and prosecuting the matter.
Felon in Prison Pleads Guilty to Possessing HeroinRead the Press Release
St. Louis, MO – Lywayne Marquis Scott, 35, of St. Louis, pled guilty to two counts – one count of felon in possession of a firearm and one count of possession with intent to distribute heroin. He appeared in federal court on Wednesday afternoon before U.S. District Judge Henry Autrey.
According to court documents, prior to October 20, 1016, members of the St. Louis Metropolitan Police Department were informed that Scott was in possession of an AK-47 type firearm while occupying a vacant house on Bacon. After officers executed a search warrant, Scott was present in the house and found on the table was a loaded ROMARM SA/Cugir, WASR-10 semi-automatic firearm (a AK-47 type) and other firearms. He admitted possessing that firearm.
On September 25, 2017, Scott was incarcerated in the Jennings jail for the above conduct. During the guards’ investigation of an inmate using a contraband cell phone in the yard of the facility, a search of Scott’s pants revealed a golf ball size amount of white powder which fell to the ground. The white powder was analyzed and found to be 20 grams of heroin.
Scott faces up to 10 years’ imprisonment, a $250,000 fine or both on the felon in possession of a firearm count and faces not more than 20 years’ imprisonment, a $250,000 fine or both on possession with intent to distribute heroin. Sentencing has been set for November 14, 2018. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department. United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Federal charges filed in Carmel synagogue hate incidentRead the Press Release
Cloverdale man spray-painted Nazi flags and started fire on Synagogue property
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler, FBI Indianapolis Special Agent in Charge Grant Mendenhall and Carmel Police Chief Jim Barlow announced today an arrest in the recent Carmel Jewish Synagogue graffiti and fire incident. Nolan Brewer, 20, Cloverdale, was charged today in federal court on criminal complaint with conspiracy to violate civil rights.
“Federal civil rights laws protect our rights to worship freely without threats or intimidation,” said Minkler. “Those who choose to deny anyone those rights by spreading hate and bigotry will be prosecuted to the fullest extent of federal law.”
In the early morning hours of July 28, 2018, anti-Semitic symbols – namely two Nazi flags and two Iron Crosses – were spray-painted on a brick structure of the Congregation Shaarey Tefilla, a Jewish Synagogue in Carmel. The images measured over a foot in height and were painted on two sides of the structure. In addition to the graffiti, several areas of the grass and ground around the structure were burned, leaving visible black burn residue on one side of the structure. The Congregation Shaarey Tefilla immediately contacted law enforcement.
Carmel Police received information linking Brewer to the graffiti and fire at Congregation Shaarey Tefilla, which they shared with the FBI. The FBI and Carmel Police investigated and discovered evidence linking Brewer and a co-conspirator to the Synagogue incident, including surveillance video showing Brewer and his co-conspirator, the day before the incident, purchasing red and black spray paint and bandanas from Wal-Mart.
On August 15, 2018, the FBI and Carmel Police executed search warrants at Brewer’s residence and vehicle and found additional evidence of the crime, including the cans of spray paint and items consistent with the burned areas around the structure. Brewer was arrested at that time on federal charges of conspiracy to violate civil rights. His co-conspirator has also been arrested by Carmel Police.
This case is being investigated by the FBI and the Carmel Police Department.
"The FBI takes allegations of potential hate crimes very seriously and will not tolerate this type of criminal activity and intimidation directed towards members of our Jewish community," stated Greg Massa, Assistant Special Agent in Charge, FBI Indianapolis. "This office, with the assistance of our law enforcement and community partners, will aggressively prosecute those who commit hate crimes of any kind."
“The Carmel Police Department is proud to have been a part of such a dedicated team that was focused on finding out who vandalized the Congregation Shaarey Tefilla in Carmel. We hope the apprehension of these suspects sends a clear message that hate has no place in Carmel and that anyone who tries to desecrate property or send a hate message in our community will be found and prosecuted to the full extent of the law,” said Carmel Police Chief Jim Barlow.
“We put all available resources on this investigation because we do not take these actions lightly. I am very proud of our police department and the other law enforcement agencies that worked together for this successful conclusion. As difficult as this incident was, it was gratifying to see the public show of support for the Congregation Shaarey Tefilla, that was targeted by this hate crime,” said Mayor Jim Brainard.
A criminal complaint is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove their guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant United States Attorneys Nick Linder and Matthew Rinka. The charge of conspiracy to violate civil rights carries a maximum sentence of 10 years in prison.
Brewer had his initial appearance hearing today and remains in the custody of the United States Marshal Service. His detention hearing is set for August 21, 2018, at 3:00 p.m., before a magistrate judge.
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 criminal violations of civil rights laws and partnering with state and local law enforcement to do so. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 7.1–7.2.
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Federal Grand Jury Returns Superseding Indictment Charging Former Pasco County Schools Transportation Manager with Child Enticement and Production of Child PornographyRead the Press Release
Tampa, Florida – A federal grand jury has returned a
superseding indictment charging William Matthew Napolitano (35, New Port Richey) with enticement of a minor and with producing, distributing, and possessing child pornography. If convicted on all counts, Napolitano faces a maximum penalty of life in federal prison.According to the indictment, between 2015 and January 2017, Napolitano enticed and coerced a minor to engage in sexual activity. In June 2015, Napolitano also persuaded a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Any person who was a victim, or has knowledge of someone who may have been a victim, is urged to contact U.S. Immigration and Customs Enforcement’s Homeland Security Investigations at 1-866-DHS-2ICE (347-2423) or at http://www.ice.gov/webform/hsi-tip-form.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Executive Office for Immigration Review Announces Largest Immigration Judge Investiture Since at Least 2010, Hiring Times Reduced by More Than 50%Read the Press Release
The Executive Office for Immigration Review (EOIR) on Friday held the investiture of 23 new immigration judges, which increases the total number of immigration judges to 351. Since the end of January 2017, 82 immigration judges have been sworn in, and EOIR anticipates three additional hiring classes this fall that will total at least 75 more immigration judges.
As part of a series of common-sense reforms to the immigration court system, Attorney General Jeff Sessions last year introduced a “streamlined hiring plan” emphasizing clear deadlines for ensuring immigration judge candidates move efficiently through the hiring process. Due to this effort, some of the immigration judges sworn-in on Friday were hired in approximately 266 days, down from an average of 742 days just one year ago.
The investiture was announced by EOIR Director James McHenry, and Principal Deputy Chief Immigration Judge Christopher A. Santoro presided over the investiture during a ceremony held Aug. 10, 2018, at the Department of Justice’s Great Hall in Washington, D.C.
“Hiring more immigration judges and reducing the time it takes to hire a judge are two key elements reducing the pending caseload of immigration court cases,” said Attorney General Jeff Sessions. “EOIR Director James McHenry should be commended for making tremendous progress on both fronts since he became Acting Director in May 2017. Under his leadership, we are making great strides toward having an immigration court system that serves the national interest.”
After a thorough application process, Attorney General Jeff Sessions appointed Stuart D. Alcorn, Robert A. Fellrath, Kathleen French, Daniel B. Gilbert, Lena Golovnin, Cynthia Gordon, Nathan L. Herbert, Howard C. Hom, Natalie B. Huddleston, David C. Koelsch, W. Scott Laragy, Zakia Mahasa, Michael G. McFarland, Patrick M. McKenna, Nancy E. Miller, Angela Munson, Jonathan W. Owens, Kaarina Salovaara, Eric J. Tijerina, Nelson A. Vargas-Padilla, Michael G. Walleisa, George J. Ward Jr., and Jason R. Waterloo to their new positions.
Biographical information about each new judge is found in a notice issued by EOIR.East Texas U.S. Attorney Supports Justice Department’s Opioid Reduction PlanRead the Press Release
SHERMAN, Texas- Eastern District of Texas U.S. Attorney Joseph D. Brown touted today’s announcement from the Department of Justice and U.S. Drug Enforcement Administration (DEA) proposing a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.
“To address the opioid crisis in America, we have to attack not only those who illegally distribute drugs, but we also have to address the flood of narcotics from manufacturers and pharmacies that make it so easy for addicted people to get access,” said U.S. Attorney Joseph D. Brown. “I am glad to see some movement on reducing the number of pills that have contributed to so many deaths.”
On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.
In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.
The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl:
Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.
"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs. These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.”
“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”
Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls.
When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.
The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually.
In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.
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Durable Medical Equipment Provider Lincare Pays $5.25 Million to Resolve False Claims Act AllegationsRead the Press Release
Lincare, Inc., has paid $5.25 million to resolve allegations that it violated the federal False Claims Act and the Anti-Kickback Statute by offering illegal price reductions to Medicare beneficiaries, U.S. Attorney Steven D. Weinhoeft announced today. Headquartered in Clearwater, Florida, Lincare is one of the nation’s largest providers of oxygen and other respiratory therapy services to patients in the home, with approximately 1,000 locations across the United States.
The government alleged that, from 2011 to 2017, Lincare attempted to gain a competitive advantage in the marketplace by unlawfully waiving or reducing co-insurance, co-payments, and deductibles for beneficiaries who participated in a Medicare Advantage Plan operated through a private insurer. Lincare’s practices violated the Anti-Kickback Statute, and further caused the submission of false claims for payments to Medicare.
"Medicare is a promise to protect the elderly and disabled by providing health insurance to those who need it most. This office will aggressively defend Medicare to ensure that entities participating in government sponsored healthcare programs do so lawfully," said U.S. Attorney Weinhoeft. "This settlement reflects our commitment to maintain the integrity of the Medicare program."
"The Office of Inspector General will continue to aggressively investigate and pursue those who defraud public health care programs," said Steven Hanson, Special Agent in Charge Kansas City Regional Office, U.S. Department of Health and Human Services. "Greed at the expense of our most vulnerable citizens will not be tolerated."
The allegations were first brought to light in a 2015 whistleblower lawsuit filed by Brian Thomas, a former billing supervisor at Lincare. The False Claims Act permits private individuals to sue on behalf of the government for false claims and to share in any recovery. The civil lawsuit was filed in the Southern District of Illinois and is captioned United States ex rel. Brian Thomas v. Lincare Inc., Case No. 15-cv-00730-DRH. Mr. Thomas will receive $918,750 from the settlement proceeds.
This matter was handled by the U.S. Attorney’s Office for the Southern District of Illinois, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of the Inspector General.
Deputy Leader of Violent Grape Street Crips Gang Sentenced to 45 Years in Prison for Murder, Attempted Murders, Plot to Kill Witness, as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – The second-in-command of the New Jersey set of the Grape Street Crips street gang was sentenced today to 540 months in prison for his role in committing a murder, participating in numerous attempted murders, plots to kill a state witness and to kidnap a heroin trafficker, and conspiring to distribute heroin, all as part of a racketeering conspiracy, U.S. Attorney Craig Carpenito announced.
Kwasi Mack, a/k/a “Welches,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to eight counts of the sixth superseding indictment, which charged him with murder and attempted murders as part of a RICO conspiracy, assaults with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon, and conspiracy to distribute one kilogram or more of heroin.
According to documents filed in this case and statements made in court:
Mack admitted that as the second-in-command of the NJ Grape Street Crips he committed the following violent acts in furtherance of the RICO conspiracy:
- In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.
- On Oct. 10, 2011, during an outdoor cookout, Mack used an assault rifle to attempt to kill a gang-member who had previously cooperated in a murder investigation and whose loyalty to the gang was in question. Mack shot eight individuals, at least two of whom suffered permanent or life-threatening injuries.
- After being charged by the Essex County Prosecutor’s Office with the Oct. 10, 2011, attempted murder, Mack was provided during the discovery process with the identity of the only witness against him. Mack ordered fellow gang-members to kill that witness. Gang-members took substantial steps to carry out Mack’s orders, but the murder never took place.
- In 2013, Mack and others planned to kidnap a major heroin-trafficker in order to rob him.
- On Oct. 5, 2013, Mack ordered the murder of a person identified in the indictment as “Victim-1.” On Oct. 27, 2013, following Mack’s orders, several gang-members repeatedly shot Victim-1 and Victim-4.
- On Oct. 7, 2013, Mack and others participated in the attempted murder of rival gang-members in retaliation for the murder of a fellow gang-member.
Mack also admitted to participating in a conspiracy to distribute one kilogram or more of heroin, possessing firearms in furtherance of the RICO and narcotics conspiracies, using minors to commit these offenses, and engaging in these offenses as a pattern of criminal conduct engaged in as a livelihood.
In addition to the prison term, Judge Arleo sentenced Mack to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Criminal Division, and Richard J. Ramsay of the Office’s Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Department of Justice Acting Associate Attorney General Jesse Panuccio and Ovw Acting Director Katharine Sullivan to Deliver Keynote Remarks at Two-Day Conference on Violence Against Women Tribal ConsultationRead the Press Release
****** MEDIA ADVISORY ******
WASHINGTON - U.S. Department of Justice's Acting Associate Attorney General Jesse Panuccio and Office on Violence Against Women’s (OVW) Acting Director Katharine Sullivan will join federal and tribal officials, including U.S. Attorney Ron Parsons for the District of South Dakota, at the 13th annual Government-to-Government conference to solicit recommendations from tribal leaders on enhancing safety and strengthening federal law enforcement efforts to the crimes of domestic violence, dating violence, sexual assault, stalking and sex trafficking of American Indian and Alaskan Native women, and administering funds and programs for tribal governments established by the Violence Against Women Act (VAWA) and subsequent legislation.
The conference will take place Tuesday and Wednesday, AUGUST 21 and 22, 2018 in Sioux Falls, South Dakota. The U.S. Departments of Justice, Health and Human Services and the Interior, and tribal leaders of federally-recognized Indian Tribes will participate in the two-day event focused on federal administration of tribal funds and programs established under VAWA.Opening remarks, keynote address and traditional ceremony on Tuesday are OPEN PRESS.
WHO:Acting Associate Attorney General Jesse Panuccio, U.S. Department of Justice
Katharine Sullivan, Acting Director, OVW
Ron Parsons, U.S. Attorney, District of South Dakota
Kenya Fairley, Acting Director, Division of Family Violence Prevention and Services, U.S. Department of Health and Human Services
Cmdr. Angela Fallon, Deputy Director, Office of Clinical and Preventive Services, Indian Health Service, U.S. Department of Health and Human Services
Cmdr. Nancy Mautone-Smith, Deputy Director, Health Resources and Services Administration, Office of Women’s Health, U.S. Department of Health and Human Services
WHAT:
Opening Prayer and Traditional Ceremony: Sherriann Moore, Deputy Director, Tribal Affairs, OVW
Roxanne Sazue, Former Chairwoman, Crow Creek Sioux TribeShawl Ceremony: Carmen O’Leary, Director, Native Women’s Society of the Great Plains
Opening Remarks and Federal Agency Introductions and Keynote address: Darla Black, Vice-President, Oglala Sioux Tribe
Katharine Sullivan, Acting Director, OVW
Acting Associate Attorney General Jesse Panuccio, U.S. Department of JusticeWHEN: Tuesday, August 21, 2018, 8:30 a.m. – 10:00 a.m. CDT
WHERE:
Sioux Falls Convention Center
Exhibit Hall 1
1201 Northwest Avenue
Sioux Falls, SD 57104OPEN PRESS
(Camera Preset: 7:30 a.m. CDT // Final access time for print media without gear: 8:15 a.m. CDT // The program begins at 8:30 a.m. CDT)
NOTE: All media must RSVP and present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials. Media representatives may begin to arrive at 7:00 a.m. RSVPs, and request for one-on-one interviews with speakers should be directed to DOJ spokesperson Nicole Navas Oxman at [email protected] and Jeremy Edwards at [email protected]. Inquiries regarding logistics should be directed to Aleah Parker, Tribal Event Coordinator, Chenega Logistics LLC at (703) 888-6063 or [email protected] and Nikia Johnson, Sr. Communication Specialist, OVW, at [email protected].
Convicted Felon with Gun Sentenced to 15 Years in Prison as Armed Career CriminalRead the Press Release
HUNTSVILLE – A federal judge on Wednesday sentenced a Jackson County man to 15 years in prison for illegal gun possession after determining the man was an armed career criminal based on prior convictions, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Abdul K. Kallon sentenced RICHARD GRADY ROMANS, 52, of Flat Rock, for being a convicted felon in possession of a firearm on Jan. 13, 2016, in Jackson County. Romans pleaded guilty to the charge in May, acknowledging that he had possessed a Remington .22-caliber rifle, a Marlin Firearms 30-30 caliber rifle, and a Savage 93R17 rifle. The judge upheld the government’s argument that Romans should be sentenced under the Armed Career Criminal Act because he has three prior federal felony drug convictions.
“The Armed Career Criminal Act is designed for defendants like Mr. Romans who, after spending significant time behind bars, continue their criminal activity once released back into society,” said Assistant U.S. Attorney Robert J. Becher Sr., who prosecuted the case. “Now, because of Mr. Romans’ ongoing criminal behavior, he will spend the next 15 years in a federal prison.”
“ATF’s Crime Gun Intelligence focuses on reducing the violent crime and disrupting the shooting cycle that negatively impact our neighborhoods,” Watson said.
Court records show that Romans was convicted in federal court in Tennessee in 2005 for conspiracy to distribute cocaine from 1994 through 1999, for distributing cocaine on Jan. 15, 1999, and for distributing cocaine on Feb. 26, 1999.
ATF investigated the case.
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Convicted Felon Sentenced for Heroin and Fentanyl DistributionRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 15 years in prison for distributing heroin mixed with fentanyl and being a felon in possession of a firearm.
“Walker had enough fentanyl for a lethal dose for about 13,620 people,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Distributing this deadly narcotic into the community would have placed many lives in extreme grave danger if they came in contact with this dangerous substance. Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic. I want to thank our investigative partners at ATF for their terrific work on this important case.”
According to court documents, Taron D. Walker, trafficked heroin and fentanyl throughout Portsmouth. Overall, Walker distributed 1.5 kilograms of heroin, over 13.5 kilograms of marijuana, 500 grams of cocaine, 27 grams of fentanyl, and about two grams of amphetamine.
Walker also conspired to straw-purchase firearms. As a felon prohibited from purchasing guns himself, Walker used his brother to buy guns for him. Walker’s decision to involve his brother in a criminal conspiracy exposed his brother to federal gun charges as well.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Kevin M. Comstock and William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-22.
Chicago, Illinois, Man SentencedRead the Press Release
SOUTH BEND - Gregory Brown, age 37, of Chicago, Illinois, was sentenced before South Bend District Court Judge Jon E. DeGuilio for his role in a heroin distribution conspiracy and wire fraud, announced U.S. Attorney Kirsch
Brown was sentenced to 235 months imprisonment followed by 4 years of supervised release.
According to documents in this case, between January and April 2016, Brown and others distributed heroin in the Michigan City area. Combined, these conspirators distributed between one and three kilograms of heroin. Also in April, Brown and others posted bond for a person who was housed at the LaPorte County Jail using a stolen credit card number. Brown has previously been convicted of murder, aggravated battery, unlawful use of a weapon by a felon, and possession of a controlled substance all in Illinois.
This case was investigated by ATF with assistance from the LaPorte County Sheriff’s Office and the Michigan City Police Department. The case was handled by Assistant U.S. Attorneys Molly Donnelly and Frank Schaffer.
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Charleston Man Pleads Guilty to Federal Gun Charge and Possession of Counterfeit U.S. CurrencyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Joshua Hicks, 35, of Charleston, pled guilty today to being a felon in possession of a firearm and possession of counterfeit U.S. currency. Stuart praised the investigation conducted by the St. Albans Police Department, the United States Secret Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“On a daily basis, federal investigative agencies work in partnership with our state and local law enforcement personnel to protect the citizens of West Virginia,” said United States Attorney Mike Stuart. “Their tireless efforts remove repeat offenders like Hicks from our communities and put them behind bars.”
Hicks admits that he possessed a Glock, .40 caliber pistol on January 29, 2018 in St. Albans. He had previously purchased the gun from an acquaintance and had it in his vehicle when he was stopped by an officer with the St. Albans Police Department. Hicks further admitted to possessing an assault rifle and a derringer pistol. Hicks has several prior felony convictions. Law enforcement officers searched his bedroom and found counterfeit currency he had purchased on the internet and then washed and manipulated to make it look more real so he could pass it off as genuine currency.
Hicks faces up to ten years in prison on the gun charge and up to 20 years in prison for possession of counterfeit U.S. currency when sentenced on November 29, 2018.
Assistant United States Attorney Steve Loew is handling the prosecution. United States District Judge Irene Berger presided over the plea hearing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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California Woman Pleads Guilty to Heroin Trafficking Charge Arising Out of Nearly 11-Pound Heroin Seizure in New MexicoRead the Press Release
ALBUQUERQUE – Angelica Denise De La O, 26, of Lake Elsinore, Calif., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge. De La O entered the guilty plea without the benefit of a plea agreement.
The DEA arrested De La O in Aug. 2017, after seizing approximately 4.9 kilograms (10.8 pounds) of heroin from her luggage during an interdiction investigation on Aug. 10, 2017, in Albuquerque. De La O was indicted on Sept. 6, 2017, and was charged with possession of heroin with intent to distribute on Aug. 10, 2017, in Bernalillo County, N.M.
At sentencing, De La O faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. She remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Eva Fontanez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Businessman, Former State Senator Charged with Bank Fraud, Tax CrimesRead the Press Release
PROVIDENCE, RI – The owner of two Rhode Island durable medical equipment companies has been charged in federal court in Providence with allegedly executing a “check-kiting” scheme which defrauded three banks, and with tax evasion.
Businessman and former State Senator James E. Doyle, II, 46, of Pawtucket, was charged by way of an information with thirty-one counts of bank fraud and one count each of filing a false tax return and failing to file a tax return.
Mr. Doyle resigned as a Rhode Island State Senator in January 2018.
The filing of an information and plea agreement in this matter is announced by United States Attorney Stephen G. Dambruch, Kristina O'Connell, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
According to court documents, it is alleged that beginning in as early as 2013, and lasting until February 2016, Doyle, as owner of Doyle Respiratory, LLC and Doyle Sleep Solutions, LLC, executed a check-kiting scheme that defrauded three banks.
“Check-kiting” consists of drawing checks on an account in one bank and depositing them in an account in a second bank when neither account has sufficient funds to cover the amounts drawn. Just before the checks are returned for payment to the first bank, the kiter covers them by depositing checks drawn on the account in the second bank. Due to the delay created by the collection of funds by one bank from the other, known as the “float” time, an artificial balance is created.
It is alleged that over three years Doyle created inflated balances in checking accounts at three banks by writing tens of thousands of checks in order to obtain funds which otherwise would not have been available to him. It is alleged that on a single day in February 2016, Doyle deposited thirty-one worthless checks totaling approximately $300,000 into one bank drawn from a checking account at a different bank. There were insufficient funds in the accounts to cover the checks.
According to court documents, Doyle defrauded the banks of between $250,000 and $550,000.
It is also alleged in court documents that in tax year 2015, Doyle and his spouse failed to report to the IRS $326,862 in income received from the check-kiting scheme and his businesses, and that he failed to file a tax return for tax year 2016 in which he received gross income of $255,812.
According to court documents, the tax loss to the IRS for tax years 2013 thru 2016 amounts to $305,426. In total, Doyle and his wife failed to report more than $1 million dollars in income.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bank fraud is punishable by statutory penalties of up to thirty years in federal prison, a term of supervised release of up to five years, and a fine of up to $1,000,000. Filing a false tax return is punishable by statutory penalties of up to three years in federal prison, a term of supervised release of up to one year, and a fine of up to $250,000 or twice the pecuniary gain or loss. Failure to file a tax return is punishable by statutory penalties of up to one year in federal prison, a term of supervised release of up to one year and a fine of up to $100,000.
The matter was investigated by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Buncombe Co. Man Sentenced to More Than 11 Years on Drug ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Timothy Lane Plemmons, 35, of Fairview, N.C. was sentenced to 138 months in prison for possession with intent to distribute methamphetamine. U.S. District Judge Martin Reidinger also sentenced Plemmons to five years of supervised release upon completion of his prison term. Plemmons’ previous convictions in North Carolina, including numerous assault convictions, contributed to his sentence.
“After multiple encounters with our justice system, the Court determined that Plemmons’ drug dealing and repeated criminal conduct pose a danger to our community, and handed down a lengthy prison term. My Office is committed to increasing public safety by identifying repeat offenders for federal prosecution, and removing them from our streets by securing lengthy prison terms,” said U.S. Attorney Murray.
According to today’s sentencing hearing and documents filed with the Court, on October 26, 2016, during a probation search at Plemmons’ residence, law enforcement discovered methamphetamine and digital scales. An analysis of the seized methamphetamine by the Drug Enforcement Administration (DEA) determined that it weighted more than 290 grams and had a purity level of over 99%. Plemmons pleaded guilty to the drug charge on February 28, 2018.
Plemmons is currently in custody and will be transferred to the custody of the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanks the DEA, the Buncombe County Sheriff’s Office, and the North Carolina Division of Adult Correction and Juvenile Justice for their investigation of this case.
Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Brockton Man Sentenced for KidnappingRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for the armed kidnapping of a Quincy man and two children.
Diego Pires, 23, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 201 months in prison and five years of supervised release. In February 2018, Pires pleaded guilty to kidnapping.
In January 2018, co-defendant Malik Bangura, 20, was sentenced to 17 years in prison and two years of supervised release. In March 2018, co-defendant Sedrick Oliveira, 26, of Stoughton, pleaded guilty and is scheduled to be sentenced on Aug. 23, 2018. In December 2017, co-defendant Yesenia Diaz, 23, of Brockton, pleaded guilty and is scheduled to be sentenced on Sept. 14, 2018.
On Oct. 8, 2016, at approximately 10:25 p.m., a 30-year-old man was kidnapped from the driveway of his Quincy home after being struck in the head with a revolver as he got out of his truck, and dragged into a nearby sedan. The victim had two children strapped into car seats in his truck, as well as approximately 30 pounds of marijuana, at the time he was assaulted.
Once the victim was in the sedan, two masked perpetrators, later identified as Pires and Bangura, drove the victim’s truck, with the children still inside, to a secluded location where they unloaded the marijuana and $20,000 from the victim’s truck, into the sedan. The victim, who was face-down in the backseat of the sedan at gunpoint, begged for his life and the life of the two children who were still in their car seats in the back of his truck.
Pires, Bangura, Diaz, and Oliveira then drove the sedan with the drugs, cash and the victim, from Quincy to Brockton and called the victim’s wife demanding $100,000. Law enforcement officers spotted the sedan as it drove through Brockton, recognized the vehicle from a drive-by shooting that occurred in August 2016, and began to follow it. After the defendants recognized the police, they attempted to flee, but ultimately abandoned the sedan in a Brockton driveway. The victim escaped, flagged down law enforcement officers, and described to them the secluded location where the truck had been deserted. Law enforcement located the truck with the children inside, who were unharmed.
Diaz was subsequently found standing by the sedan and arrested. Oliveira was arrested in October 2017 in Stoughton; Bangura was arrested in April 2017; and Pires was a fugitive until he was apprehended in October 2017.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; and Quincy Police Chief Paul Keenan, made the announcement today. Assistant U.S. Attorney Emily O. Cannon of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Bridgeport Grocery Store Owner Sentenced to Prison for Failing to Pay Taxes on Embezzled IncomeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SAMIR FATTAH, 55, of Oxford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three months of imprisonment, three months of home confinement and one year of supervised release for filing false tax returns.
According to court documents and statements made in court, FATTAH and his father jointly own Abu-Goush Market, doing business as International Farmers Market (“AGM”), a grocery store in Bridgeport. FATTAH was responsible for AGM’s day-to-day operations, including making cash deposits to AGM’s business bank accounts. During 2011, 2012 and 2014, without his father’s knowledge and approval, FATTAH deposited hundreds of thousands of dollars of AGM’s net cash receipts into his personal bank accounts. FATTAH used some of the funds to pay AGM’s business expenses, but embezzled a total of $213,086 through this scheme.
FATTAH failed to pay federal income taxes on the embezzled income for the 2011, 2012 and 2014 tax years resulting in a total tax loss of $54,067.
As part of his sentence, FATTAH has paid $54,067 in back taxes, plus penalties and interest.
On May 24, 2018, FATTAH pleaded guilty to one count of filing a false tax return.
FATTAH, who is released on bond, was ordered to report to prison on November 15, 2018.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Boulder Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – Robert Dean Mason, age 46, of Boulder, Colorado, was sentenced by U.S. District Court Judge Christine M. Arguello to serve 97 months (over 8 years) in federal prison for possession of child pornography, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. Following his prison sentence, Mason was ordered to serve 10 years on supervised release. The defendant, who appeared at the hearing on bond, was ordered to voluntarily surrender to a facility designated by the U.S. Bureau of Prisons.
Mason was first charged by Information on January 29, 2018. He pled guilty before Judge Arguello on March 21, 2018. He was sentenced on August 14, 2018.
According to court documents, including the stipulated facts in the plea agreement as well as the government’s sentencing statement, in March of 2015, a FBI-Dallas Child Exploitation Task Force Officer, utilizing an undercover internet connection, operated software capable of receiving files of child pornography from BitTorrent network. BitTorrent is a type of peer-to-peer program that allows individuals to download files from other servers. In October 2016, FBI agents in Denver learned that Mason was known through other investigations as a person who was sharing files of child exploitation material using BitTorrent. From March 21, 2016 through October 8, 2016, ten separate investigators had downloaded 94 “files of interest” from a device utilizing Mason’s home IP address.
On November 3, 2016, FBI agents received a flash drive from a Larimer County Sheriff’s Deputy who had received downloads from Mason while acting in a covert online capacity. The flash drive contained video files and log reports of files received from the defendant’s home IP address, downloaded on July 23, 2016 and September 26, 2016. On November 10, 2016, FBI agents executed a search warrant at Mason’s home. A forensic review of the digital items seized pursuant to the search warrant revealed an encrypted folder containing thousands of images of child pornography, including 4,800 video files.
“The internet can be a playground for child predators,” said U.S. Attorney Bob Troyer. “Our prosecutors, our partners at the FBI, and local law enforcement work tirelessly – with incredible technologic expertise – to find these predators and bring them to justice.”
"Combating the exploitation and victimization of children is one of the FBI's top priorities," said FBI Denver Special Agent in Charge Calvin Shivers. “This sentence demonstrates our commitment to ensuring those responsible for exploiting innocent children are vigorously investigated and brought to justice.”
This case was investigated by the FBI, with assistance from multiple law enforcement agencies, including the Boulder Police Department, the Larimer County Sheriff’s Office, and multiple divisions of the FBI. The defendant was prosecuted by Assistant U.S. Attorneys Valeria Spencer and Alecia Riewerts.
Biloxi Man Sentenced to over Nine Years in Federal Prison for Possession of Child PornographyRead the Press Release
Gulfport, Miss. – Christopher Bryan Smith, 45, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to serve 109 months in federal prison, followed by 10 years of supervised release, for possession of child pornography, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with U. S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans. Smith was also ordered to pay restitution to a known victim in the amount of $5,000, a fine in the amount of $5,000, and an additional assessment of $5,000 under the Justice for Victims of Trafficking Act of 2015.
An investigation conducted by HSI, the Wiggins Police Department, and the Gulf Coast Cyber Crime Task Force resulted in the identification of an internet protocol address belonging to Smith and his use of a computer file sharing program. Thereafter, a federal search warrant was executed in July 2017 at Smith’s Biloxi home. Smith’s electronic devices were seized and forensic examinations were conducted. The examination reports, as well as the submissions of the visual depictions found and submitted to the National Center for Missing and Exploited Children, resulted in a finding that Smith knowingly possessed visual depictions of minors engaging in sexually explicit conduct, to include visual depictions of a minor who had not attained 12 years of age.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Gulf Coast Cyber Crime Task Force, and the Wiggins Police Department, and prosecuted by Assistant U.S. Attorney Andrea Jones.
Baltimore Felon Pleads Guilty to Possession with Intent to Distribute HeroinRead the Press Release
Baltimore, Maryland – Demetrius William Harris, a/k/a “Demetrius Diggs,” age 34, of Baltimore, pleaded guilty on August 15, 2018, to possession with intent to distribute a controlled substance. Diggs had five previous convictions for drug distribution or violent crimes.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; and Interim Police Commissioner Gary Tuggle of the Baltimore Police Department.
According to his plea agreement, at 11 p.m. on September 11, 2017, Baltimore Police officers in an unmarked vehicle saw Diggs driving a car with temporary Texas tags traveling at an extremely high rate of speed. The officers activated their vehicle’s emergency lights and sirens to initiate a traffic stop but Diggs sped away in an attempt to flee from police. Officers followed, but terminated their pursuit after Diggs drove his car across the median into a lane of oncoming traffic. Shortly thereafter, Diggs crashed his car head-on into another vehicle, then attempted to back up. Diggs’s car became stuck when he reversed it onto a grassy median between the lanes of traffic. As officers arrived on the scene, a man exited from the passenger side of Diggs’s car and ran away. Officers removed Diggs from the driver’s seat and took him into custody. Officers recovered two cell phones from Diggs. A search of Diggs’s vehicle recovered a black hat, black ski mask, and black trench coat on the floor next to the front passenger seat; two additional cell phones from the center console, as well as two clear plastic sandwich bags that held 49 clear gel capsules containing heroin. On the grass just outside the passenger side of Diggs’s vehicle, officers found two loaded firearms: a 9mm semi-automatic pistol and a 12-gauge shotgun. The pistol had been reported stolen from a home in Fayetteville, North Carolina on June 27, 2017.
According to court documents, the man who fled from Diggs’s car was located by police in a nearby neighborhood and subsequently identified as Percy Eugene Johnson, age 29, of Baltimore. Johnson pleaded guilty on July 24, 2018 to being a felon in possession of firearms and ammunition. U.S. District Judge Richard D. Bennett has scheduled Johnson’s sentencing on October 23, 2018, at 3:00 p.m.
Diggs and the government have agreed that if the Court accepts the plea agreement, Diggs will be sentenced to between eight and 10 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for November 26, 2018 at 3:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Patricia C. McLane, who are prosecuting the case.
Allegan Online Child Predator Sentenced to over 20 YearsRead the Press Release
GRAND RAPIDS, MICHIGAN - United States Attorney Andrew Birge announced that James Theodore Pyle, 27, of Allegan, was sentenced in U.S. District Court to 245 months’ imprisonment for sexual exploitation of a minor. The Court also ordered that he spend ten years on supervised release and pay a fine of $2,500.
In 2014, Pyle posed as "Roman Kalhart" on Facebook, claiming he was 15 years old. He befriended numerous young teens and persuaded them to send him sexually explicit photographs. In sentencing Pyle, Chief U.S. District Judge Robert Jonker commented on the sheer number of victims, noting that the investigation showed Pyle had obtained photographs from as many as 50 to 70 minors, at least 20 of whom were outlined in the presentence investigation report. At the time of the offense, Pyle was on probation for accosting a child for immoral purposes. His probation was revoked and on January 25, 2015, he was sentenced in Allegan County Circuit Court to 33 to 48 months in prison. Chief Judge Jonker ordered that his federal sentence be served consecutively to his state sentence, which will be completed on November 20, 2018.
"The U.S. Attorney’s Office takes very seriously cases involving child predators," said U.S. Attorney Birge. "Those people who would use the internet to hide their true identity to befriend and exploit children deserve the fullest punishment the law provides."
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force, and federal, state, and local law enforcement agencies are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate communities about the dangers of online child exploitation and to teach children how to protect themselves. More information is available at www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorney Alexis Sanford and investigated by Homeland Security Investigations, with assistance from the Michigan Department of Corrections and the Kalamazoo Department of Public Safety.
END
Additional Charges Filed Against Three Indiana Men for Armed Pharmacy RobberyRead the Press Release
JEFFERSON CITY, Mo. – Additional charges were filed against three Indiana men who were indicted by a federal grand jury today for the armed robbery of a Walgreens pharmacy in Jefferson City, Mo.
Jerome Scott King, 19, of Speedway, Indiana, and Raymond Allen Craig, 20, and Daijahn Antwan Reed,19, both of Indianapolis, Indiana, were charged in a seven-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a criminal complaint that was filed against the three men on Aug. 16, 2018, and contains additional charges.
Today’s indictment alleges that King, Craig and Reed committed an armed robbery on July 25, 2018. The indictment alleges they pointed a loaded firearm at two store employees and tied one employee’s hands behind his back with zip-ties. They allegedly stole $9,264 worth of drugs, including more than 3,000 oxycodone/acetaminophen tablets.
In addition to the robbery, King, Craig and Reed are each charged with one count of using a firearm during a crime of violence for allegedly brandishing a Smith & Wesson 9mm handgun.
King, Craig and Reed are charged together in one count of committing an armed robbery that involved the theft of a controlled substance. They are charged together in one count of conspiracy to distribute oxycodone and one count of possessing oxycodone with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, Jefferson City police officers responded to Walgreens, located at 2002 Missouri Blvd., Jefferson City, in reference to a robbery in progress on July 25, 2018. Craig, Reed and an unidentified man allegedly had entered the store wearing medical masks over the faces and medical style gloves on their hands.
Officers arrived as King, Craig, Reed, and another person ran out of the business. Three of the four men fled the scene in a vehicle. Officers attempted to conduct a traffic stop on the vehicle, the affidavit says, but King, the driver, led officers on a pursuit eastbound on U.S. Highway 54. Missouri State Highway Patrol troopers deployed spike strips, which caused the vehicle to slow, leave the highway, cross the outer road and crash near Jazel Lane in Holts Summit, Mo. King and Craig ran from the vehicle but were apprehended. The third man, who remains unidentified, was not apprehended.
A witness called the police later that afternoon to report that Reed had knocked on his door and asked to use the telephone. Officers located Reed on the roof of O’Reilly Auto Parts, 1010 Missouri Blvd. in Jefferson City, and arrested him.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Jefferson City, Mo., Police Department.
6 Defendants Charged in White Plains Federal Court with Cellphone Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and David E. Beach, Special Agent in Charge of the New York Field Office of the United States Secret Service (“USSS”), announced charges today against six individuals in a fraud conspiracy from December 2017 through July 2018. BRIAN CAPELLAN, NELSON ALBA DEJESUS, JEAN MEDINA, JONTHAN MORA, JESUS ALBERTO REMOND, EMMANOL DIONIS BAEZ RODRIGUEZ, and their associates allegedly engaged in a scheme to fraudulently obtain cellular phones from a cellular phone provider by accessing victim accounts online and adding names as authorized users of the accounts. Five defendants were arrested in the Southern District of New York and will be presented today before United States Magistrate Judge Paul E. Davison. DEJESUS remains at large.
U.S. Attorney Geoffrey S. Berman said: “The defendants allegedly accessed cellphone user accounts to fraudulently obtain cellphones worth more than $750,000. Thanks to the Secret Service, the defendants’ mobile phone scam has been immobilized.”
According to the allegations in the Complaint unsealed today:[1]
From at least in or about December 2017 through and including July 2018, BRIAN CAPELLAN, NELSON ALBA DEJESUS, JEAN MEDINA, JONTHAN MORA, JESUS ALBERTO REMOND, and EMMANOL DIONIS BAEZ RODRIGUEZ, together and with others, perpetrated a scheme to fraudulently obtain cellular phones. During the scheme, the defendants added their names as authorized users on existing accounts with a telecommunications company that provides cellular telephone services (the “Victim Accounts”). The registered owners of these Victim Accounts did not know or authorize these additions. Once the names were added as authorized users, the defendants purchased cellular phones in person as part of a handset upgrade and charged the cost of the cellular phones to the Victim Accounts. The six defendants alone are responsible for over $750,000 in losses for their roles in the scheme.
* * *
CAPELLAN, 22, of the Bronx, New York, DEJESUS, 25, of Yonkers, New York, MEDINA, 19, of the Bronx, New York, MORA, 27, of the Bronx, New York, REMOND, 27, of the Bronx, New York, and BAEZ RODRIGUEZ, 31, of Hollywood, Florida, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of New York Field Office Electronic Crimes Task Force of the United States Secret Service and the Special Agents of the U.S. Attorney’s Office, as well as the DEA New York Drug Enforcement Task Force, for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jamie Bagliebter is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are 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.
2nd Lightfoot/Mendoza DTO Member Pleads Guilty: Acknowledges Responsibility for Trafficking up to 50 Kilograms of CocaineRead the Press Release
PITTSBURGH, Pa. – A former resident of Pittsburgh, PA pleaded guilty in federal court to narcotics and firearm charges, United States Attorney Scott W. Brady announced today.
Monty Grinage, age 39, pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute five kilograms or more of cocaine and one count of possession of a firearm by a convicted felon before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that Grinage was a co-conspirator in one of the largest drug trafficking conspiracies in Western Pennsylvania history. Grinage conspired with multiple members of the indictment to import multiple kilograms of cocaine into Southwestern Pennsylvania. Grinage would then personally receive large kilogram amounts of cocaine and redistribute them by selling them to other co-conspirators. In total, Grinage acknowledged that he was responsible for up to 50 kilograms of cocaine. Additionally, Grinage pled guilty to possessing a 9mm handgun when investigators from the Drug Enforcement Agency executed a search warrant at his home on December 12, 2017.
Judge Hornak scheduled sentencing for December 14, 2018. The law provides for a mandatory minimum sentence of 20 years in prison up to a maximum of life, a fine of $10,000,000 or both. Due to his prior record for drug trafficking offenses, Grinage will face increased penalties and be sentenced as a career offender. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation - The Monongahela Valley Residential Agency, the Drug Enforcement Agency – Pittsburgh Division and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the guilty plea in this case.
28 Arrested in Killeen and Waco on Federal Drug Trafficking ChargesRead the Press Release
This morning, federal and state authorities arrested 22 individuals for their alleged roles in a narcotics distribution activities in the Waco and Killeen areas, announced United States Attorney John F. Bash; Drug Enforcement Administration Special Agent in Charge Will Glaspy, Houston Division; FBI Special Agent in Charge Christopher Combs; Waco Police Chief Ryan Holt; Killeen Police Chief Charles Kimble; McLennan County Sheriff Parnell McNamara; and Texas Department of Public Safety Director Steven McCraw.
Those arrested today, along with six others who were already in custody, are charged in two separate federal grand jury indictments unsealed today in Waco.
GABRIEL LUNA, et al. INDICTMENT – W18cr259
This indictment charges nine defendants with conspiracy to possess with intent to distribute controlled substances including cocaine, “crack” cocaine or methamphetamine. Individuals charged in this indictment include:
Name Age Residence Statutory Maximum Penalty
Gabriel Luna 30 Katy, TX 10 years to life imprisonment
Samuel Earl Smith 44 Killeen 10 years to life imprisonment
Jomar Kenyatta Bush 44 Killeen 10 years to life imprisonment
Jeffrey Ellis 33 Killeen 5-40 years imprisonment
Donovan Lafurd Ray Jacobs 25 Killeen 5-40 years imprisonment
Joshua Deanthony Bailey 29 Killeen up to 20 years imprisonment
Derrick L. Jacques (aka “Flexx”) 41 Killeen 5-40 years imprisonment
Terrell Jefferson 32 Killeen 5-40 years imprisonment
**Leonta Odell Gladden 30 Killeen 5-40 years imprisonmentThe defendants are all Gangster Disciples members, led by Derrick Jacques, or their associates. The indictment alleges that these defendants distributed narcotics in Killeen and the surrounding areas since October 2015. Defendants Luna, Smith, Bush, Ellis and Jacobs allegedly conspired to distribute methamphetamine. Defendants Luna, Smith, Jacobs and Bailey allegedly conspired to distribute cocaine. Defendants Smith, Jacques, Jefferson, and Gladden allegedly conspired to distribute “crack” cocaine.
DANIEL LOUIS LOPEZ, et al. INDICTMENT – W18cr257
This indictment charges 19 defendants with conspiracy to possess with intent to distribute methamphetamine. Individuals charged in this indictment include:
Name Age Residence Statutory Maximum Penalty
**Daniel Louis Lopez 38 Waco 10 years to life imprisonment
Ruben Ceja-Sanchez 31 Dallas 10 years to life imprisonment
Gary Keith Mahan, Jr. 37 McGregor, TX 10 years to life imprisonment
Michael Trinidad Carbajal 38 Waco 10 years to life imprisonment
**Amy Michelle Tedder 32 Waco 10 years to life imprisonment
Joe Victor Monzon 35 Waco 10 years to life imprisonment
**Ruben Arnold Mondragon 32 Waco 10 years to life imprisonment
Patricia Ann Navarro-Eaton 46 Waco 5 to 40 years imprisonment
Michael Martinez 47 Waco 5 to 40 years imprisonment
**Cory Allen Kussmaul 28 Waco 5 to 40 years imprisonment
Darnell O’Shea McCoy 35 Waco 5 to 40 years imprisonment
Charlotte Nicole O’Neal 33 Waco 5 to 40 years imprisonment
Augustin Ariel Camacho 36 Waco 5 to 40 years imprisonment
Daniel Alan Tummins 35 Waco 5 to 40 years imprisonment
Francisco Farias, III 55 Waco 5 to 40 years imprisonment
Magan Danielle Shuemake 29 Waco 5 to 40 years imprisonment
Polly Estes 42 Waco up to 20 years imprisonment
Stephanie Nicole Davis 31 Midlothian, TX up to 20 years imprisonment
**Trey Allen Cartwright 36 Waco up to 20 years imprisonment** Already in custody prior to today
Authorities allege that since May 2017, these defendants were responsible for the distribution of large amounts of methamphetamine throughout the Waco and Central Texas areas.
In addition to the arrests, these investigations have resulted in the seizure of approximately $16,000 in U.S. Currency, over five pounds of methamphetamine and 22 firearms.
All of the defendants remain in federal custody pending detention hearings expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
The DEA, FBI, U.S. Marshals Service, Texas Department of Public Safety, Waco Police Department, Killeen Police Department and the McLennan County Sheriff’s Office investigated these cases. Assistant U.S. Attorneys Mark Frazier, Christopher Blanton and Stephanie Smith-Burris are prosecuting these cases on behalf of the Government.
The principal mission of the Organized Crime Drug Enforcement Task Force (OCDETF) program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
22 Charged with Smuggling Millions of Dollars of Counterfeit Luxury Goods from China into the United StatesRead the Press Release
Earlier today, in federal court in Brooklyn, six indictments and one criminal complaint were unsealed charging a total of 22 defendants with illegally bringing into the United States millions of dollars of Chinese-manufactured goods by smuggling them through ports of entry on the East and West Coasts. The defendants were arrested this morning, and their initial appearances and arraignments are scheduled this afternoon before United States Magistrate Judge Lois Bloom.
The charges include conspiracy to traffic, and trafficking, in counterfeit goods; conspiracy to smuggle, and smuggling, counterfeit goods into the United States; money laundering conspiracy; immigration fraud and unlawful procurement of naturalization. In addition, the government restrained nine real properties in Queens, Staten Island and Brooklyn, New York, belonging to the defendants.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General for the U.S. Department of Justice’s Criminal Division, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendants used many forms of deception to smuggle large quantities of counterfeit luxury brand goods from China into the United States, and then profited by distributing and selling the fake merchandise,” stated United States Attorney Donoghue. “This Office, working with our law enforcement partners, is committed to securing our country’s ports of entry, as well as to protecting the integrity of intellectual property upon which free and fair international trade and markets depend.” Mr. Donoghue extended his grateful appreciation to the HSI Intellectual Property Group and the HSI Border Enforcement Security Task Force and the NYPD. Mr. Donoghue also extended his thanks to U.S. Customs and Border Protection, the New York State Police and the Brooklyn District Attorney’s Office for their assistance.
“The defendants allegedly smuggled millions of dollars of counterfeit luxury goods into our country, depriving companies of their valuable and hard-earned intellectual property,” stated Assistant Attorney General Benczkowski. “The illegal smuggling of counterfeit goods poses a real threat to honest businesses, and I commend our federal prosecutors and partners at HSI and the NYPD for their outstanding work on this important investigation. The Department of Justice is committed to holding accountable those who seek to exploit our borders by smuggling counterfeit goods for sale on the black market.”
“This investigation exposed the global nature of intellectual property crimes, allegedly being executed by those arrested today. Counterfeit goods manufactured and smuggled from China with a suggested value north of half a billion dollars, were intended to make its way into U.S. markets and into the hands of unsuspecting consumers,” said HSI Special Agent-in-Charge Melendez. “This investigation should be a crystal clear message that counterfeiting and intellectual property rights violations is anything but a victimless crime as it harms legitimate businesses, consumers and governments.”
“Today’s indictments demonstrate our resolve to ensure a level playing field for all, and serve as a reminder that selling fake goods is never a victimless crime,” stated NYPD Commissioner O’Neill. “Everything about these activities undermines public trust. And the NYPD, in close collaboration with all of our local, state, and federal law enforcement partners, will continue to aggressively combat and prosecute the evasive practices of the individuals and companies who attempt to operate outside our laws and regulations.”
According to the court filings, the defendants played various roles in the trafficking of counterfeit goods manufactured in China, brought by ocean-going ships to the United States in 40-foot shipping containers, smuggled through ports of entry disguised as legitimate imports and distributed throughout the country. The counterfeit goods included items such as fake Louis Vuitton and Tory Burch handbags, Michael Kors wallets, Hermes belts and Chanel perfume. The defendants’ roles included:
Importers
Qi Feng Liang, Wo Qi Liu, Zhi Ming Zhang and Yu Ming Wong served as shipping container importers. They arranged to smuggle counterfeit goods into the United States through the Port of New York/New Jersey and elsewhere. They fraudulently used the names, addresses and other identifying information of legitimate import companies and falsified the descriptions of the containers’ contents on U.S. customs paperwork associated with the containers of counterfeit goods. They used “burner” phone numbers and “burner” email accounts—obtained by using false or incomplete information—in order to conceal their true identities. The counterfeit goods were transported by trucks to self-storage facilities in Brooklyn, Queens and Long Island, New York, where the goods were unloaded and stored. Qi Feng Liang, Wo Qi Liu, Zhi Ming Zhang and Yu Ming Wong smuggled or attempted to smuggle 23 40-foot shipping containers into the country loaded with counterfeit items. The estimated Manufacturers’ Suggested Retail Price of these items, had they been genuine, would have been more than $450 million.
Wholesale Distributors
Josstina Lin, Xue Wei Qu, Xi Quan Huang, Yun Lei Huang, Yun Wu Huang, Si Lung Chung, Le Wei Zheng, Xiao Ying Huang, Qiong Chan Mu, Ren Zhong Zhu, Cheng Xu Yu, Jin Hua Zhang, Jian Hua Zhu, Yong Lin Dong and Cai Ying Lin managed the receipt, storage and distribution of counterfeit goods smuggled into the United States by the importers. They resold the counterfeit items to other wholesale and retail sellers in New York, California and elsewhere in the United States.
Domestic Shippers
Wei Mei Gao, Sheng Miao Xia and Jie Mei Chen used private shipping businesses they controlled to distribute the counterfeit goods smuggled into the United States by the importers and handled by the wholesale distributors. The domestic shippers also facilitated payments by the wholesale and retail counterfeit goods sellers to the wholesale distributors.
As alleged in the indictments, some defendants additionally conspired to launder the proceeds from the sale of counterfeit goods, and others illegally concealed their involvement in the trafficking of counterfeit goods when applying for immigration benefits.
The charges in the indictments and criminal complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s cases are being prosecuted by Assistant United States Attorneys William P. Campos and Temidayo Aganga-Williams of the Eastern District of New York, Special Assistant United States Attorney Robert Kaftal of the Brooklyn District Attorney’s Office and Senior Counsel James S. Yoon of the U.S. Department of Justice, Criminal Division Computer Crime and Intellectual Property Section (CCIPS). Assistant United States Attorney Claire S. Kedeshian is handling the forfeiture aspect of this case. The investigation was previously led by Senior Counsel Evan Williams of CCIPS.
The Department of Justice’s Task Force on Intellectual Property (IP Task Force) contributed to this case. The IP Task Force is led by the Deputy Attorney General to combat the growing number of domestic and intellectual property crimes, to protect the health and safety of American consumers and to safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. To learn more about the IP Task Force, go to https://www.justice.gov/iptf. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
The Defendants:
QI FENG LIANG (also known as “Alex” and “Mike Sotire”)
Age: 34
Brooklyn, New YorkWO QI LIU (also known as “Louis,” “Qi,” “Woqi” and “Big Elephant”)
Age: 43
Brooklyn, New YorkZHI MING ZHANG (also known as “Jordan” and “Four B”)
Age: 43
Staten Island, New YorkJOSSTINA LIN (also known as “Tina”)
Age: 42
Brooklyn, New YorkXUE WEI QU
Age: 51
Queens, New YorkE.D.N.Y. Docket No. 18-CR-419 (WFK)
XI QUAN HUANG
Age: 58
Queens, New YorkYUN LEI HUANG
Age: 32
Queens, New YorkYUN WU HUANG
Age: 34
Queens, New YorkWEI MEI GAO
Age: 35
Queens, New YorkSHENG MIAO XIA
Age: 44
Queens, New YorkE.D.N.Y. Docket No. 18-CR-408
SI LUNG CHUNG (also known as “Allan”)
Age: 42
New York, New YorkLE WEI ZHENG
Age: 42
New York, New YorkE.D.N.Y. Docket No. 18-CR-407 (CBA)
XIAO YING HUANG (also known as “Linda”)
Age: 53
Nassau County, New YorkQIONG CHAN MU (also known as “Rosanna”)
Age: 26
Nassau County, New YorkREN ZHONG ZHU
Age: 31
Nassau County, New YorkE.D.N.Y. Docket No. 18-CR-423 (DLI)
YONG LIN DONG
Age: 43
Queens, New YorkCAI YING LIN
Age: 43
Queens, New YorkCHENG XU YU (also known as “Vic”)
Age: 29
Queens, New YorkJIAN HUA ZHU
Age: 52
Queens, New YorkJIN HUA ZHANG
Age: 55
Queens, New YorkE.D.N.Y. Docket No. 18-CR-396 (JBW)
JIE MEI CHEN (also known as “Jenny”)
Age: 33
Queens, New YorkE.D.N.Y. Docket No. 18-CR-409 (BMC)
YU MING WONG
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 18-MJ-752
22 Charged with Smuggling Millions of Dollars of Counterfeit Luxury Goods from China into the United StatesRead the Press Release
Earlier today, six indictments and one criminal complaint were unsealed in federal court in Brooklyn, New York, charging a total of 22 defendants with illegally bringing into the United States millions of dollars of Chinese-manufactured goods by smuggling them through ports of entry on the East and West Coasts. One defendant is also charged with unlawful procurement of naturalization. Twenty-one defendants were arrested this morning, and their initial court appearances and arraignments are scheduled before U.S. Magistrate Judge Lois Bloom.
The charges include conspiracy to traffic, and trafficking, in counterfeit goods; conspiracy to smuggle, and smuggling, counterfeit goods into the United States; money laundering conspiracy; immigration fraud and unlawful procurement of naturalization. In addition, the government restrained nine real properties in Queens, Staten Island and Brooklyn, New York belonging to the defendants.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York and Commissioner James P. O’Neill of the New York City Police Department (NYPD), announced the charges.
“The defendants allegedly smuggled millions of dollars of counterfeit luxury goods into our country, depriving companies of their valuable and hard-earned intellectual property,” said Assistant Attorney General Benczkowski. “The illegal smuggling of counterfeit goods poses a real threat to honest businesses, and I commend our federal prosecutors and partners at HSI and the NYPD for their outstanding work on this important investigation. The Department of Justice is committed to holding accountable those who seek to exploit our borders by smuggling counterfeit goods for sale on the black market.”
“As alleged, the defendants used many forms of deception to smuggle large quantities of counterfeit luxury brand goods from China into the United States, and then profited by distributing and selling the fake merchandise,” said U.S. Attorney Donoghue. “This Office, working with our law enforcement partners, is committed to securing our country’s ports of entry, as well as to protecting the integrity of intellectual property upon which free and fair international trade and markets depend.”
“This investigation exposed the global nature of intellectual property crimes, allegedly being executed by those arrested today. Counterfeit goods manufactured and smuggled from China with a suggested value close to half a billion dollars, were intended to make its way into U.S. markets and into the hands of unsuspecting consumers,” said HSI Special Agent-in-Charge Melendez. “This investigation should be a crystal clear message that counterfeiting and intellectual property rights violations is anything but a victimless crime as it harms legitimate businesses, consumers and governments.”
According to the court filings, the defendants played various roles in the trafficking of counterfeit goods manufactured in China, brought by ocean-going ships to the United States in 40-foot shipping containers, smuggled through ports of entry disguised as legitimate imports and distributed throughout the country. The counterfeit goods included items such as fake Louis Vuitton and Tory Burch handbags, Michael Kors wallets, Hermes belts and Chanel perfume. The defendants’ roles included:
Importers
Qi Feng Liang, Wo Qi Liu, Zhi Ming Zhang and Yu Ming Wong served as shipping container importers. They arranged to smuggle counterfeit goods into the United States through the Port of New York/New Jersey and elsewhere. They fraudulently used the names, addresses and other identifying information of legitimate import companies and falsified the descriptions of the containers’ contents on U.S. customs paperwork associated with the containers of counterfeit goods. They used “burner” phone numbers and “burner” email accounts—obtained by using false or incomplete information—in order to conceal their true identities. The counterfeit goods were transported by trucks to self-storage facilities in Brooklyn, Queens and Long Island, New York, where the goods were unloaded and stored. Qi Feng Liang, Wo Qi Liu, Zhi Ming Zhang and Yu Ming Wong smuggled or attempted to smuggle 23 40-foot shipping containers into the country loaded with counterfeit items. The estimated Manufacturers’ Suggested Retail Price of these items, had they been genuine, would have been more than $450 million.
Wholesale Distributors
Josstina Lin, Xue Wei Qu, Xi Quan Huang, Yun Lei Huang, Yun Wu Huang, Si Lung Chung, Le Wei Zheng, Xiao Ying Huang, Qiong Chan Mu, Ren Zhong Zhu, Cheng Xu Yu, Jin Hua Zhang, Jian Hua Zhu, Yong Lin Dong and Cai Ying Lin managed the receipt, storage and distribution of counterfeit goods smuggled into the United States by the importers. They resold the counterfeit items to other wholesale and retail sellers in New York, California and elsewhere in the United States.
Domestic Shippers
Wei Mei Gao, Sheng Miao Xia and Jie Mei Chen used private shipping businesses they controlled to distribute the counterfeit goods smuggled into the United States by the importers and handled by the wholesale distributors. The domestic shippers also facilitated payments by the wholesale and retail counterfeit goods sellers to the wholesale distributors. Jie Mei Chen is also charged with unlawful procurement of naturalization.
As alleged in the indictments, some defendants additionally conspired to launder the proceeds from the sale of counterfeit goods, and others illegally concealed their involvement in the trafficking of counterfeit goods when applying for immigration benefits.
The charges in the indictments and criminal complaint are allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Intellectual Property Group and HSI Border Enforcement Security Task Force and the NYPD Border Security Enforcement Task Force. Assistance was provided by U.S. Customs and Border Protection, the New York State Police and the Brooklyn District Attorney’s Office. The government’s cases are being prosecuted by Senior Counsel James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Assistant U.S. Attorneys William P. Campos and Temidayo Aganga-Williams of the Eastern District of New York and Special Assistant U.S. Attorney Robert Kaftal of the Brooklyn District Attorney’s Office. Assistant U.S. Attorney Claire S. Kedeshian is handling the forfeiture aspect of this case. The investigation was previously led by Senior Counsel Evan Williams of CCIPS.
The Department of Justice’s Task Force on Intellectual Property (IP Task Force) contributed to this case. The IP Task Force is led by the Deputy Attorney General to combat the growing number of domestic and intellectual property crimes, to protect the health and safety of American consumers and to safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. To learn more about the IP Task Force, go to https://www.justice.gov/iptf.
The Defendants:
QI FENG LIANG (aka “Alex” and “Mike Sotire”)
Age: 34
Brooklyn, New YorkWO QI LIU (aka “Louis,” “Qi,” “Woqi” and “Big Elephant”)
Age: 43
Brooklyn, New YorkZHI MING ZHANG (aka “Jordan” and “Four B”)
Age: 43
Staten Island, New YorkJOSSTINA LIN (aka “Tina”)
Age: 42
Brooklyn, New YorkXUE WEI QU
Age: 51
Queens, New YorkE.D.N.Y. Docket No. 18-CR-419 (WFK)
XI QUAN HUANG
Age: 58
Queens, New YorkYUN LEI HUANG
Age: 32
Queens, New YorkYUN WU HUANG
Age: 34
Queens, New YorkWEI MEI GAO
Age: 35
Queens, New YorkSHENG MIAO XIA
Age: 44
Queens, New YorkE.D.N.Y. Docket No. 18-CR-408
SI LUNG CHUNG (aka “Allan”)
Age: 42
New York, New YorkLE WEI ZHENG
Age: 42
New York, New YorkE.D.N.Y. Docket No. 18-CR-407 (CBA)
XIAO YING HUANG (aka “Linda”)
Age: 53
Nassau County, New YorkQIONG CHAN MU (aka “Rosanna”)
Age: 26
Nassau County, New YorkREN ZHONG ZHU
Age: 31
Nassau County, New YorkE.D.N.Y. Docket No. 18-CR-423 (JBW)
YONG LIN DONG
Age: 43
Queens, New YorkCAI YING LIN
Age: 43
Queens, New YorkCHENG XU YU (aka “Vic”)
Age: 29
Queens, New YorkJIAN HUA ZHU
Age: 52
Queens, New YorkJIN HUA ZHANG
Age: 55
Queens, New YorkE.D.N.Y. Docket No. 18-CR-396 (JBW)
JIE MEI CHEN (aka “Jenny”)
Age: 33
Queens, New YorkE.D.N.Y. Docket No. 18-CR-409 (BMC)
YU MING WONG
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 18-MJ-752
12 Dominican Nationals Indicted on Identity Theft ChargesRead the Press Release
BOSTON – 12 Dominican nationals were indicted today in federal court in Boston with various charges of aggravated identity theft and false representation of a Social Security number. All 12 defendants were previously charged by criminal complaints on July 26, 2018, in a federal document and benefit fraud sweep and are currently in custody.
The following defendants were each indicted on one count of aggravated identity theft and one count of false representation of a Social Security number:
Alejandra Eulalia Baez Arias, 40, of Lawrence;
Saddan Rafael Bautista Diaz, 27, of Dorchester;
Robert Crisologo Bobadilla Baez, 43, of Mattapan;
Fernando Cedeno Carpio, 34, residing in Houston, Texas, with legal permanent resident status;
Ramon Lara Martinez, 45, of Hyde Park, was also indicted on one count of being an illegal alien in possession of a firearm;
Viterbo Enrique Minaya Melo, 30, of Lawrence;
Ulises Francisco Mota Carmona, 35, of Lawrence;
Yhoan Alexis Nivar Rodriguez, 29, residing in Mattapan with legal permanent resident status, was also indicted on one count of possession with intent to distribute cocaine and fentanyl;
Randy Manuel Percel Arias, 23, of Lawrence;
Jose Mercedes Polanco Guerrero, 47, of Dorchester; and
Carmen Sanchez Garcia De Martinez, 64, a dual Dominican and Venezuelan national residing in Springfield.
Erika Bautista Diaz, 30, was indicted on one count of false representation of a Social Security number.
The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. False representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of being an alien in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of possession with intent to distribute cocaine and fentanyl provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement today. Valuable assistance was provided by the U.S. Marshals Service Puerto Rico Violent Offender Task Force. Assistant U.S. Attorneys Christine Wichers, Karen Burzycki, Rachel Hemani and Patrick Callahan are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
12 Alleged Members of MS-13 in Santa Cruz Charged Federally with Racketeering Conspiracy, Murder, Arson, Extortion, and Other CrimesRead the Press Release
SAN JOSE- A federal grand jury indicted twelve South Bay residents for a broad range of racketeering crimes including murder, arson, extortion by force, and drug trafficking, announced United States Attorney Alex G. Tse and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The Second Superseding Indictment handed down today amends the charges previously brought against the defendant in April of this year. The defendant all are alleged to be MS-13 gang members and the new charges now specifically include allegations that certain defendants conspired to commit, attempted to commit, and ultimately succeeded in committing murder.
“MS-13 has presented a violent threat in the Santa Cruz area for years,” said U.S. Attorney Tse. “The gang targeted many, including other immigrants from El Salvador, and they instilled fear in everyone who experienced or witnessed their brutality.”
The indictment alleges the following defendants conspired to engage in racketeering activities:
Velarmino Escobar-Ayala (aka Meduza)
Tomas Rivera (aka Profugo, aka Caballo)
Ismael Alvarenga-Rivera (aka Casper)
Willfredo Ayala-Garcia (aka Chino)
Jose David Abrego-Galdamez (aka Largo)
Melvin Lopez (aka Sharky)
Alexander Martinez-Flores (aka Pocar)
Gerber Morales (aka Choco, aka Chuki)
Emilio Escobar-Albarnga (aka Diablo)
Josue Alcedis Escobar-Cerritos (aka Penguino, aka Chui)
Erick Escalante-Torres (aka Deceptico, aka Problematico)
Jose Noe Ramirez-Avelar (aka Chepito, aka Sparky)
According to the indictment, the defendants all engaged in racketeering for the purpose of preserving the power, territory, reputation, and profits of the MS-13 gang. The indictment describes how members of MS-13 met regularly to discuss issues such as disciplining members and planning crimes. The indictment provides a list of dates on which the defendants allegedly met and conspired to commit a broad array of crimes, including murder, to further the purposes of the gang.
According to the indictment, differing members of the enterprise met at times to discuss targeting rival gang members for murder and deciding which gang members had an interest in murdering the targets. For example, the indictment alleges Escobar-Ayala, Rivera, Lopez, Martinez-Flores, Escalante-Torres, and Ramirez-Avelar conspired to commit a murder, and that all these defendants, except Lopez, actually committed the murder. Similarly, the indictment alleges Escalante-Torres attempted to commit the murder of a separate victim. In addition, the indictment describes how some members met to create plans to commit murder while other members actually attempted or succeeded in committing murder, and how still others attempted to destroy proof of the gang’s crimes by burning evidence.
The indictment also describes how certain defendants conspired to extort property from drug dealers in Santa Cruz by threatening violence against the dealers and other persons close to them. According to the indictment, from February 2013 through at least February of 2017, Escobar-Ayala, Rivera, Alvarenga-Rivera, Ayala-Garcia, Abrego-Galdamez, Lopez, and Martinez-Flores engaged in the extortion and threatened force, violence, and fear to obtain money that was demanded.
Also, the indictment alleges all the defendants were engaged in a conspiracy engage in drug trafficking. According to the indictment, from April 2012 until the present, the defendants conspired to possess with intent to distribute 50 grams of more of a mixture of substance containing methamphetamine.
According to additional court papers filed by the government, the current charges in this case stem from a multi-year investigation into the activities of a violent Santa Cruz street gang known as Santa Cruz Salvatrucha Locos 13 (SCSL13). The government’s papers state that “SCSL13 is a subset of the larger Mara Salvatrucha 13 (MS-13) gang organization.” According to the government, the defendants all are alleged to be either active members or recruits performing criminal tasks on behalf of SCSL13.
In sum, the charges pending against each defendant are as follows:
Defendant
Age
Charges
Maximum Statutory Penalty
All Defendants
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
5 years of supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Velarmino Escobar-Ayala (aka Meduza)
38
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Tomas Rivera (aka Profugo, aka Caballo)
25
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Ismael Alvarenga-Rivera (aka Casper)
39
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Willfredo Ayala-Garcia (aka Chino)
33
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Jose David Abrego-Galdamez (aka Largo)
38
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Melvin Lopez (aka Sharky)
26
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Alexander Martinez-Flores (aka Pocar)
29
Conspiracy to Commit Extortion by Force
18 U.S.C. § 1951(a)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Murder in Aid of Racketeering (18 U.S.C. § 1959(a)(1))
Death penalty eligible
Mandatory life in prison
5 years of supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use/Possess/Brandish/Discharge of Firearm in Furtherance of Crime of Violence
18 U.S.C. § 924(c)(1)(A)
Life in prison
5 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use of Firearm in Furtherance of Crime of Violence Resulting in Death 18 U.S.C. § 924(j)(1)
Death penalty eligible
Life in prison
5 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Gerber Morales (aka Choco, aka Chuki)
30
Conspiracy to Possess With Intent to Distribute 50 Grams or More of Methamphetamine (21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii)
Life in prison
(minimum 10 years)
Lifetime of supervised release
(minimum 5 years)
Fine of $10,000,000
Emilio Escobar-Albarnga (aka Diablo)
37
Conspiracy to Possess With Intent to Distribute 50 Grams or More of Methamphetamine (21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii)
Life in prison
(minimum 10 years)
Lifetime of supervised release
(minimum 5 years)
Fine of $10,000,000
Josue Alcedis Escobar-Cerritos (aka Penguino, aka Chui)
30
Conspiracy to Possess With Intent to Distribute 50 Grams or More of Methamphetamine (21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii)
Life in prison
(minimum 10 years)
Lifetime of supervised release
(minimum 5 years)
Fine of $10,000,000
Erick Escalante-Torres (aka Deceptico, aka Problematico)
23
Accessory After the Fact to Murder in Aid of Racketeering
18 U.S.C. § 3
(2 counts)
15 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use of Fire in Commission of Felony 18 U.S.C. § 844(h)
(2 counts)
10 years in prison
(mandatory and consecutive to any other term of imprisonment)
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Attempted Murder in Aid of Racketeering
18 U.S.C. §1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. § 1959(a)(3)
20 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use/Possess/Brandish/Discharge of Firearm in Furtherance of Crime of Violence
18 U.S.C. § 924(c)(1)(A)
(2 counts)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Murder in Aid of Racketeering (18 U.S.C. § 1959(a)(1))
Death penalty eligible
Mandatory life in prison
5 years of supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use of Firearm in Furtherance of Crime of Violence Resulting in Death 18 U.S.C. § 924(j)(1)
Death penalty eligible
5 years of supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Jose Noe Ramirez-Avelar (aka Chepito, aka Sparky)
28
Conspiracy to Commit Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5)
10 years in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Murder in Aid of Racketeering (18 U.S.C. § 1959(a)(1))
Death penalty eligible
Mandatory life in prison
5 years of supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use/Possess/Brandish/Discharge of Firearm in Furtherance of Crime of Violence
18 U.S.C. § 924(c)(1)(A)
Life in prison
3 years supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
Use of Firearm in Furtherance of Crime of Violence Resulting in Death 18 U.S.C. § 924(j)(1)
Death penalty eligible
5 years of supervised release
Fine of the greater of $250,000, twice the gain to the defendant, or twice the loss inflicted on another
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
In addition, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Joseph Alioto and Jeffrey Backhus are prosecuting the case. The prosecution is the result of an investigation by the HSI.