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Wednesday 27 June 2018
Three Men Indicted for Conspiracy to Distribute Fentanyl and HeroinRead the Press Release
ALEXANDRIA, Va. – A federal indictment was unsealed late yesterday charging three members of an alleged Washington, D.C., area drug crew with drug and firearms offenses.
According to allegations in the second superseding indictment, Donnell Leroy Williams, aka “Bubbles,” his son, Antonio Donnell Shelton, aka “Little Bubbles,” and Demetrius Antonio Johnson, aka “Bake,” worked together to distribute several types of controlled substances, including fentanyl, a highly dangerous synthetic opioid.
During the course of the drug conspiracy, Donnell Williams resided in Hyattsville, Maryland. Donnell Williams coordinated drug transactions with customers over the phone, and he drove to locations in Arlington, Maryland, and Washington, D.C. to meet customers and distribute fentanyl. When Williams was unavailable, he directed his customers to other members of his crew, including his son, Shelton, and Johnson.
According to allegations in the indictment, beginning in May 2017, an undercover Fairfax County detective conducted several deals with Williams, eventually working his way to purchasing approximately 1/2 kilogram of fentanyl from Williams for $40,000. On November 7, 2017, the FBI arrested Williams and searched his apartment in Hyattsville. Inside the apartment, FBI agents found a large quantity of fentanyl packaged in small baggies for distribution. Agents also found large quantities of crack cocaine and marijuana, as well as a loaded handgun.
Name
Age
Charges
Maximum Penalty
Donnell Leroy Williams
54
Conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of crack cocaine
Possession of a firearm in furtherance of a drug trafficking crime
Life in prison
Antonio Donnell Shelton
30
Conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of crack cocaine
Life in prison
Demetrius Antonio Johnson
37
Conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 28 grams or more of crack cocaine
Life in prison
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement. Assistant U.S. Attorney J. Tyler McGaughey and Special Assistant U.S. Attorney David A. Peters are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-30.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Three Massachusetts State Troopers ArrestedRead the Press Release
BOSTON – Three members of the Massachusetts State Police (MSP) were arrested and charged today with theft from an agency receiving government funds, as part of an ongoing investigation. Two recently retired, one recently suspended.
Former Lieutenant David Wilson, 57, of Charlton; Trooper Gary Herman, 45, of Chester; and Former Trooper Paul Cesan, 50, of Southwick, were charged in three separate criminal complaints unsealed today. All three men were assigned to Troop E, which is responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. They will appear in U.S. District Court in Boston later today.
Wilson, who served as the Officer-in-Charge of several overtime shifts, along with Troopers Herman and Cesan are alleged to have received overtime pay for hours they either did not actually work at all, or shifts in which they departed one to seven hours early.
The alleged conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. Wilson, Herman and Cesan were required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. As alleged, they concealed the fraud by submitting citations that were issued previously, altered to create the appearance that the citation was issued during the overtime shift, and/or submitted citations that were never issued and never took place.
According to court documents, investigators were able to corroborate the alleged conduct through spreadsheets compiled during MSP’s audit of Troop E’s overtime, along with data from MSP cruiser radios and other MSP records, to observe individual Trooper radio activity/inactivity patterns, as well as radio transmission location patterns.
In 2016, Lt. Wilson earned approximately $230,000, claiming to have worked approximately 170 AIRE overtime shifts – equating to about $68,000 in overtime pay. The investigation revealed that out of those overtime hours worked in 2016, Lt. Wilson earned approximately $12,450 in overtime pay that he in fact, did not work. Trooper Herman earned $227,826 in 2016, which included approximately $63,000 in overtime, of which $12,468 was attributable to AIRE and X-Team shifts for which Herman either left early or did not show up to work. Trooper Cesan earned approximately $163,500, which included approximately $50,866 in overtime pay, $29,000 of which included pay for AIRE and X-Team overtime shifts that Cesan did not work.
In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit and Neil Gallagher of Lelling’s Economic Crimes Unit are prosecuting the case.
Three Jackson Men Sentenced under Project EJECT for Business Robbery and Illegally Discharging a Firearm During RobberyRead the Press Release
Jackson, Miss. – Willie Evans, Gino Banks, and Devonta Jimmerson, all of Jackson, were sentenced yesterday before United States Chief District Judge Daniel P. Jordan III for the robbery of a local Jackson convenience store and illegal discharge of a firearm during said robbery, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge, Federal Bureau of Investigations.
Evans was sentenced to serve 40 months for the robbery and 120 months for illegally discharging a firearm to run consecutive to the robbery for a total sentence of 160 months in federal prison, followed by five years of supervised release.
Banks was sentenced to 15 months for the robbery and 120 months for discharging a firearm to run consecutive for a total sentence of 135 months in federal prison, followed by 5 years of supervised release.
Jimmerson, the getaway driver, was sentenced to 70 months for the robbery, followed by 3 years of supervised release.
On January 14, 2016, Devonta Jimmerson entered the store and conducted a surveillance of the Stop and Shop store located on Beasley Road and informed the other defendants of the store conditions and whether theywould be able to access the register and the store clerk. After receiving the report from Jimmerson, Banks and Ellis entered the Stop and Shop store dressed in dark clothing. They assaulted the clerk, demanded money, and fired several shots at the store safe in an attempt to open it. The suspects fled the store and were met by Jimmerson who drove them away from the scene.
Jackson Police Department officers stopped a vehicle matching the getaway car and upon a search of the vehicle they found several items including a .40 caliber handgun, the clerk’s stolen cell phone, U.S. currency, and the clothing that matched the description of the clothing worn by the suspects seen on the surveillance and described by the victim.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with FBI agents and Project EJECT task force members. This case was prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
The Walt Disney Company Required to Divest Twenty-Two Regional Sports Networks in Order to Complete Acquisition of Certain Assets from Twenty-First Century FoxRead the Press Release
The Department of Justice announced today that it will require The Walt Disney Company to divest 22 Regional Sports Networks (“RSNs”) as a condition of its $71.3 billion acquisition of certain assets from Twenty-First Century Fox, Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Southern District of New York to block the proposed acquisition. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The Department said that without the required divestitures, the proposed acquisition would likely result in higher prices for cable sports programming licensed to multichannel video programming distributors (“MVPDs”) in each of the local markets that the RSNs serve. To streamline agency clearance, Disney agreed to divest the 22 RSNs rather than continue with the Antitrust Division’s ongoing merger investigation.
“American consumers have benefitted from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.”
According to the Department’s complaint, Disney and Fox compete to sell cable sports programming to MVPDs in various local markets across the United States. Because of this competition, the complaint alleges that the proposed acquisition would likely result in MVPDs paying higher prices for cable sports programming in those local markets. The proposed settlement requires Disney to divest 22 RSNs, currently owned by Fox, to a buyer acceptable to the Department. The Department has determined that the divestitures would resolve antitrust concerns arising from Disney’s acquisition of certain assets from Fox.
The Walt Disney Company is incorporated in Delaware with its principal place of business in Burbank, Calif. It is a diversified worldwide entertainment company that, among other things, owns cable and broadcast television networks, television production and distribution operations, broadcast television stations and motion picture production and distribution operations. Its revenues were approximately $55 billion for its 2017 fiscal year.
Twenty-First Century Fox, Inc. is incorporated in Delaware with its principal place of business in New York, NY. It is a diversified global media and entertainment company that, among other things, owns cable and broadcast television networks, broadcast television stations and motion picture production and distribution operations. Its revenues were approximately $28.5 billion for its 2017 fiscal year. The Fox assets that Disney is acquiring, including the Fox RSNs, generated $19 billion in 2017 revenues.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen M. Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Southern District of New York may enter the proposed consent decree upon finding that it serves the public interest.
Texas Man Admits to Enticing Minors to Engage in Sexual Activity over the InternetRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, announced that TRAVIS W. MCCOY, 24, of Houston, Texas, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of enticement of a minor to engage in sexual activity.
According to court documents and statements made in court, between approximately August 2015 and March 2017, while he was attending college and living in New London, McCOY used internet-based video chatting services, including Kik and Google Hangouts, and internet-based gaming systems, such as Xbox Live, to entice four minor males between the ages of 9 and 14 to engage in sexually explicit conduct over video-chatting services, such as Skype. McCOY either took screen shots of the minors engaged in sexual activity, or requested and received from the minors digital images and videos in which the minors are depicted engaging in sexual activity. McCOY also sent sexually explicit images and videos of himself to the minor victims.
The investigation revealed that McCOY initially met one of the minor victims at a summer camp in Texas where McCOY had worked as a camp counselor.
The investigation also revealed that McCOY maintained three Dropbox accounts and gave the password to one of the accounts to a person living in Los Angeles as a way to share and receive child pornography. The Dropbox accounts contained 120 images and 158 videos of child pornography. There is no evidence that McCOY distributed any of the images or videos he received from the four minor victims he enticed.
Judge Shea scheduled sentencing for September 24, 2018, at which time McCOY faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
McCOY was arrested on a federal criminal complaint on June 28, 2017. He is detained pending sentencing.
This matter has been investigated by Homeland Security Investigations, the New London Police Department and the Houston Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Subcontractor Sentenced for Violating an OSHA Regulation Causing Death to an EmployeeRead the Press Release
DALLAS —Design Plastering West LLC, a New Mexico domestic limited liability company (LLC), was sentenced today before United States District Judge Ed Kinkeade of an Occupational Safety and Health Act (OSHA) violation causing death to an employee, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. As a part of Design Plastering West LLC’s sentencing, the company was ordered to pay a $150,000 criminal fine and $100,000 civil penalty, admit to eight willful violations of OSHA regulations, and be monitored for four years by an OSHA compliance expert.
According to court documents filed, on May 24, 2018, Design Plastering West LLC pled guilty to a one-count information.Design Plastering West LLC, a subcontractor, contracted to complete work at the Maple District Loft, a project in Dallas, Texas. Design Plastering West LLC employed Jorge Carrion Torres to complete stuccowork. On May 14, 2015, Mr. Torres died when he fell approximately 23 feet from the third floor balcony of that project. Design Plastering West LLC admitted the third floor balcony where Mr. Torres was working did not have the proper fall protections, such as guardrail systems, safety net systems, or personal fall arrest systems. Design Plastering West LLC admitted to failing to provide fall protection and that such failure caused the death of Mr. Torres.
The investigation was conducted by Department of Labor, Occupational Safety and Health Administration. Assistant U.S. Attorney Kate Rumsey is in charge of the prosecution and was assisted by attorneys from the Department of Labor, Office of the Solicitor.# # #
Statement from Solicitor General Noel Francisco on the retirement of Supreme Court Justice Anthony KennedyRead the Press Release
Today, Solicitor General Noel Francisco issued the following statement on the retirement of Supreme Court Justice Anthony Kennedy:
“As Solicitor General of the United States and on behalf of this Office, we are grateful and appreciative for Justice Kennedy’s tireless years of public service in our federal judiciary and on our Nation’s highest Court. His jurisprudence has left an indelible mark and his commitment to our cherished First Amendment freedom of speech will be a legacy for generations to come. I count it a privilege to have argued before him and wish him and his family all the best in the years ahead.”South Carolina Man Pleads Guilty to Federal Wire Fraud Charge, Admits Using Forged Deeds to Steal HomesRead the Press Release
WASHINGTON – Robert McCloud, 39, most recently of Warrenville, S.C., pled guilty today to a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
McCloud pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, McCloud faces a likely range of 27 to 33 months in prison and a fine of up to $60,000. He also has agreed to pay $200,488 in restitution to two title insurance companies, as well as a forfeiture money judgment of $57,965. The Honorable Amit P. Mehta scheduled sentencing for Oct. 19, 2018.
According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.
In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.
In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW was transferred from the true owners to a fictitious person. The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.
In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph. He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.
Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited. These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.
The harm caused to the owners, buyers, and title companies was covered by title insurance; the restitution amount of $200,488 is the amount due and owing to the title insurance companies after giving credit to the forfeited funds, which were returned to the victims.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Second Executive Pleads Guilty to Participating in Capacitors Price-Fixing ConspiracyRead the Press Release
Tokuo Tatai, an executive of Japan-based capacitor manufacturer Elna Co. Ltd., pleaded guilty for his role in a conspiracy to fix prices and rig bids for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
A December 2016 indictment, filed in the U.S. District Court of the Northern District of California, charged Tatai with participating in a conspiracy to suppress and eliminate competition of electrolytic capacitors by fixing prices and rigging bids. The charge alleges that Tatai participated in the conspiracy from January 2009 to January 2012. In addition to pleading guilty, Tatai has agreed to serve a prison term of a year and a day and to cooperate with the Antitrust Division’s ongoing investigation.
“The Antitrust Division will hold accountable foreign nationals who participate in conspiracies that harm American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This capacitors conspiracy affected millions of American consumers who use electronic devices in their everyday lives.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
Today’s charges result from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the electrolytic capacitors industry. Eight companies and 10 individuals have been charged in the division’s ongoing investigation. The investigation is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.
Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Saratoga County Man Arrested for Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Robert Gibeault, Jr., age 49, of Gansevoort, New York, appeared today in federal court on charges that he distributed child pornography over the internet.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the federal criminal complaint, Gibeault used the file-sharing program BitTorrent to distribute child pornography to other BitTorrent users from January 2017 through September 2017. His laptop computer contained approximately 390 video files and 85 image files depicting child pornography. These included files that Gibeault had previously distributed over the BitTorrent network. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Gibeault faces at least 5 years and up to 20 years in prison, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Additionally, if convicted, Gibeault would be required to register as a sex offender.
Gibeault appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending a detention hearing scheduled for June 29, 2018.
This case is being investigated by HSI, with assistance from the New York State Police and Colonie Police Department, and is being prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Emmet O’Hanlon.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Salem County, New Jersey, Woman Sentenced to 12 Months in Prison for Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Salem County, New Jersey, woman was sentenced today to one year and one day in prison for signing false tax returns for shell companies resulting in $286,742 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Marilyn Crespo, 50, of Carney’s Point, New Jersey, previously pleaded guilty before U.S. Chief District Judge Jose L. Linares to an information charging her one count of filing a false corporate tax return for tax year 2009. Judge Linares imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Crespo previously resided in Guttenberg, New Jersey. At the direction of her husband, José Crespo, she signed under penalty of perjury numerous false corporate tax returns, Forms 1120, for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false.
In signing these false tax returns, Marilyn Crespo took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing Form 4136 entitled “Credit for Federal Tax Paid on Fuels.”
Marilyn Crespo signed a federal corporate tax return for 2009 for Magnum Cleaning Service Corp. that claimed gross receipts of $115,027, a fuel excise tax credit of $20,859 and a resulting refund of $15,750. In fact, Magnum was a shell company and the gross receipts and fuel excise tax credit numbers were false. Marilyn Crespo received and cashed the $15,750 refund check at a check-cashing facility in Guttenberg. She cashed many other refund checks for similar false tax returns at this same check-cashing facility.
José Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares, to engaging in the fuel excise tax credit scheme and another tax fraud scheme and causing an anticipated loss to the IRS of nearly $1.5 million. He was sentenced Dec. 20, 2017, to three years in prison.
In addition to the prison term, Judge Linares sentenced Marilyn Crespo to one year of supervised release and ordered her to pay restitution of $286,742.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., East Hanover, New Jersey
Rockland Man Charged with Health Care Fraud and EmbezzlementRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael A. Morrison, 41, of Rockland, Maine, was charged by criminal complaint in U.S. District Court with health care fraud and embezzlement from a health care benefit program arising out of his employment at the Trade Winds Health, Swim and Tan Club (“Trade Winds”) in Rockland.
According to court documents, from 2005 until July 2016, Morrison was the Executive Director of the health club at Trade Winds, which included a physical therapy business known as Coastal Physical Therapy. Between 2014 and 2016, Morrison allegedly submitted over $177,000 worth of fraudulent claims to Medicare, MaineCare, the Veterans Administration Fee Basis health care program, and Anthem Blue Cross and Blue Shield by inflating the length of time procedures lasted, and by submitting claims for services not rendered or for services he rendered even though he was not a licensed Physical Therapist (PT) or a PT Assistant.
The complaint also alleged that from 2011 to 2016, Morrison embezzled over $70,000 from the health club by making unauthorized purchases for himself and his family using a business credit card and by stealing and cash from the business.
The defendant faces up to ten years in prison and a fine of up to $250,000 on each count.
This case originated from a referral from the Rockland Police Department and the Maine Attorney General’s Healthcare Crimes Unit (“MeHCU”) and was investigated by the U.S. Department of Health and Human Services (“HHS”), Office of Investigations, Office of Inspector General, with assistance from the MeHCU, and the U.S. Department of Veterans Affairs, Office of Inspector General.
Re-entry Simulation Will Highlight Challenges Facing Those Returning Home from PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William McSwain announced today that his Office is co-hosting an outreach event aimed at educating criminal justice professionals and the public about the obstacles and challenges ex-offenders face when returning home from prison.
On Friday, June 29 at 9:00 a.m., as part of Re-entry Awareness Month in Philadelphia, several agencies are joining forces to host a prisoner re-entry simulation at the Strawbridge Building in Philadelphia. The event is hosted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, U.S. Department of Health and Human Services Administration for Children & Families, Office of Child Support Enforcement, The MENTOR Program, and the National Workforce Opportunity Network. The simulation is intended to educate the public and criminal justice system professionals who assist with re-entry transition about the complex challenges prisoners face when they return home from prison. The simulation will provide a way for participants to stand in the shoes of individuals just released from prison, which in turn will help them better anticipate and meet their needs.
Titled Get Ready, Get Set, Get Out: A Day in the Life of a Returning Citizen, the program will ask participants to assume identities of ex-offenders and to participate in activities designed to simulate the first month of an individual’s release. Throughout the course of two hours, participants complete various tasks such as getting a driver’s license, reporting to probation, attending drug treatment and counseling, and attending to other basic life requirements to become a productive citizen and avoid re-incarceration.
The simulation is open to the public, and the details are provided below:
WHEN: Friday, June 29, 2018, from 9:00 a.m. to 12:00 p.m.
WHERE: The Strawbridge Building, Ben Franklin Conference Center, 801 Market Street, Suite 9101-9102, Philadelphia, PA 19107
Registration is required.
To register visit: https://www.eventbrite.com/e/get-ready-get-set-get-out-a-day-in-the-life-of-a-returning-citizen-tickets-46985480838.
Randolph Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
BOSTON – A Randolph man pleaded guilty today in federal court in Boston to being a previously convicted felon in possession of a firearm.
Dararong James Heang, 28, pleaded guilty to being a convicted felon in possession of a firearm and ammunition. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Oct. 3, 2018.
Shortly after midnight on June 16, 2017, law enforcement officers stopped Heang and two other individuals in the area of Shirley Avenue in Revere, which had been the scene of recent gang violence. Heang was known to officers as being previously involved with gang activity. During a subsequent search, Heang was found to be in possession of a semi-automatic firearm and seven rounds of ammunition. At the time, Heang was on state probation and had previously been convicted of multiple felonies in state court, including assault and battery and possession with intent to distribute drugs.
The charge of being a felon 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 $250,000. Sentences are imposed by a federal judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County District Attorney Daniel F. Conley; and Revere Police Chief James R. Guido made the announcement today. Assistant U.S. Attorney Kunal Pasricha of Lelling’s Organized Crime & Gang Unit is prosecuting the case.
Project Safe Neighborhoods Grant AnnouncementRead the Press Release
U.S. Attorney Duane A. Evans announced the availability of approximately $133,879 in Project Safe Neighborhoods (PSN) funds for the Eastern District of Louisiana. The U.S. Department of Justice (DOJ), Office of Justice Programs (OJP), and Bureau of Justice Assistance (BJA) is seeking applications for funding under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods (PSN). PSN furthers the Department’s mission and violent crime strategy by providing support to state, local and tribal efforts to reduce violent crime, which includes, firearm crimes and criminal gang violence.
Applicants must register in the OJP Grants Management System (GMS) prior to submitting an application. The GMS website is https://grants.ojp.usdoj.gov. All registrations and applications are due by 11:59 pm EST on July 19, 2018.
The FY 2018 PSN Grant Announcement, OMB No. 1121-0329, can be referenced at www.bja.gov/funding/PSNFormula18.pdf. Please visit www.bja.gov/programs/psn for more information on the PSN solicitation.
Plymouth Woman Sentenced to One Year and One Day Imprisonment for Conspiring to Distribute Heroin, Crack, and FentanylRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on June 26, 2018, United States District Judge Malachy E. Mannion sentenced Kristyna Shotwell, age 30, of Plymouth, Pennsylvania, to one year and one day imprisonment for conspiring to distribute heroin, crack cocaine, and fentanyl.
According to United States Attorney David J. Freed, Shotwell pleaded guilty to conspiring to distribute controlled substances in Pennsylvania between approximately July 2015 through February 2017. Shotwell admitted to serving as a courier for other members of the conspiracy, allowing members of the conspiracy to use her resident to package and sell narcotics, and selling heroin herself. Shotwell admitted that she trafficked in excess of 22.4 grams of crack cocaine and in excess of 80 grams of heroin, the latter of which is the equivalent of 3,200 potentially fatal doses of heroin.
Shotwell was charged in June 2017 with 14 other individuals. All of her co-defendants have pleaded guilty, with two others having already been sentenced:
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months’ imprisonment; and
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kingston Police Department, and by the Luzerne County Drug Task Force. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Pittsfield Businessman Pleads Guilty to $4 Million Conspiracy to Defraud a Credit UnionRead the Press Release
BOSTON – A businessman, who owned and operated five real estate development companies in Pittsfield, pleaded guilty today in federal court in Springfield to defrauding a credit union.
Jeffrey Pierce, 51, of Pittsfield, pleaded guilty to one count of conspiracy to receive money through transactions of a credit union with intent to defraud the credit union and to make false statements to a federal credit union. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 3, 2018.
Between 2005 and 2008, a former Vice President of Greylock Federal Credit Union (GFCU) authorized approximately $4 million in various loans and modifications to Pierce and his companies in violation of GFCU’s loan policies. By circumventing GFCU’s policies, the Vice President caused GFCU to provide Pierce and his companies with funds far in excess of what Pierce and his companies could reasonably receive or repay. In exchange for improperly authorizing these loans, Pierce agreed to provide - and did provide - the Vice President with $134,773 in check payments from Pierce’s companies derived from GFCU loans that were paid to a front company created by the employee; the free use of a home constructed by one of Pierce’s companies with a GFCU loan; and the free use of a BMW automobile purchased by one of Pierce’s companies with a GFCU loan. Around March 2010, at the Vice President’s direction and for the purpose of influencing the action of GFCU upon the loans, Pierce falsely stated to GFCU that the money paid by his companies to the front company were payments for design work that the Vice President’s wife provided to Pierce’s construction projects.
The conspiracy charge provides for a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division, made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Paterson Police Officer Admits Assaulting Hospital Patient, Distributing NarcoticsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer today admitted violating an individual’s civil rights by assaulting him at a hospital and repeatedly distributing narcotics, including drugs he stole from a crime scene while on duty, U.S. Attorney Craig Carpenito announced.
Ruben McAusland, 26, of Paterson, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law.
“McAusland’s conduct breached his duties as an officer of the law and violated the public trust,” U.S. Attorney Carpenito said. “He dealt drugs, stole from a crime scene, and viciously attacked an individual who contacted the Paterson Police Department rightfully expecting to receive assistance and protection from McAusland and his partner. The people of Paterson, and all of New Jersey, deserve better. This Office remains strongly committed to identifying and rooting out corrupt police officers and bringing them to justice under federal law.”
“Police Officers take a solemn oath to uphold the law and to protect the public. The few who take advantage of this public trust, at any level, will be investigated by the FBI and prosecuted to the fullest extent of the law. This officer not only violated his pledge but tarnished the reputation of all law enforcement by his grievous lawlessness,” said Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office.
According to documents filed in this and another case, and statements made in court:
Between October 2017 and April 2018, McAusland sold various types and quantities of narcotics to an individual who was cooperating with law enforcement. In October 2017, McAusland sold the individual approximately 35 grams of marijuana, 48 grams of heroin, 31 grams of cocaine, and 31 grams of crack cocaine. McAusland admitted that he stole these narcotics from a crime scene while on duty and in uniform as a police officer.
McAusland also sold the individual two pounds of marijuana between November 2017 and January 2018. In addition, on multiple occasions between February 2018 and April 2018, McAusland sold pills that were made to resemble Percocet doses but were actually made of heroin.
On March 5, 2018, McAusland and his partner, Roger Then, 29, of Paterson, were on duty and responded to a call from an attempted suicide victim. McAusland and Then first went to the victim’s house but were told the victim had been transported to St. Joseph’s Medical Center in Paterson.
McAusland first met the victim, who was in a wheelchair, in the hospital waiting room. McAusland admitted that during the encounter, he pushed the victim and punched him in the face. In addition, Then allegedly grabbed the victim by the neck and pushed him into the ground. Afterwards, the victim was taken to a hospital patient room.
McAusland and Then had another encounter with the victim in the hospital room, which Then recorded on his cellphone. McAusland admitted that, while the victim was on his back in a hospital bed, he put on a pair of hospital gloves and violently struck the victim twice across the face.
McAusland and Then filed a false police report in connection with the foregoing events. McAusland admitted that they purposely omitted from the repot the fact that McAusland violently struck the victim multiple times and that Then grabbed the victim by the neck and pushed him into the ground.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
The distribution of narcotics charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The deprivation of civil rights count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 9, 2018.
Then was arrested May 30, 2018 and charged by complaint with conspiring to violate an individual’s civil rights and with misprision of felony for concealing civil rights violations. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Defense counsel: John C. Whipple Esq., Morristown
Olathe Man Sentenced to 18 Years for Trafficking in MethamphetamineRead the Press Release
ANSAS CITY, KAN. – An Olathe man was sentenced Tuesday to 18 years in federal prison for trafficking in methamphetamine, U.S. Attorney Stephen McAllister said.
David C. True, 32, Olathe, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted he was a member of a drug trafficking organization that distributed meth in the Johnson County area. He admitted to regularly handling up to 10 pounds of methamphetamine a week, acting as both a buyer and a seller. In addition, he possessed firearms, which he was prohibited from doing because of a previous felony conviction.
McAllister commended the Miami County Sheriff’s Office, the Olathe Police Department, the Kansas City, Kan., Police Department, the Secret Service, the Kansas Bureau of Investigation, the Johnson County Sheriff’s Office, and Special Assistant U.S. Attorney James Ward for their work on the case.
Ohio Man Charged with Federal Hate Crimes Related to August 2017 Rally in CharlottesvilleRead the Press Release
James Alex Fields Jr. Indicted on 30 Counts Including Hate Crime Resulting in the Death of Heather Heyer
A federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Charlottesville today charged an Ohio man with federal hate crimes, including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville. Attorney General Jeff Sessions, FBI Director Christopher Wray, Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Thomas T. Cullen of the Western District of Virginia, and Special Agent in Charge of the FBI’s Richmond Division Adam S. Lee, made the announcement.
James Alex Fields Jr., 21, of Maumee, Ohio, was charged in an indictment returned earlier today with:
- one count of a hate crime act resulting in the death of Heather Heyer (18 U.S.C. § 249);
- 28 counts of hate crime acts causing bodily injury and involving an attempt to kill (18 U.S.C. § 249); and
- one count of racially motivated violent interference with a federally protected activity (18 U.S.C. § 245(b)(2)), resulting in the death of Heather Heyer, for driving his car into a crowd of protestors on a downtown street in Charlottesville, Virginia.
“At the Department of Justice, we remain resolute that hateful ideologies will not have the last word and that their adherents will not get away with violent crimes against those they target,” Attorney General Jeff Sessions said. “Last summer’s violence in Charlottesville cut short a promising young life and shocked the nation. Today’s indictment should send a clear message to every would-be criminal in America that we aggressively prosecute violent crimes of hate that threaten the core principles of our nation. I want to thank the FBI as well as our fabulous prosecutors Stephen Curran, Christopher Kavanaugh, and Rachel Kincaid for their hard work on this case.”
“As this case indicates, our office will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group,” U.S. Attorney Thomas T. Cullen stated. “We are grateful to the FBI and our state and local law-enforcement colleagues who conducted the parallel federal and state investigations in a cooperative fashion, enabling us to vindicate this critical federal interest.”
"Hatred and violence have no place in our communities," said FBI Director Christopher Wray. “The investigation of hate crimes is a top priority of the FBI, and we will continue to work with our partners to ensure those who perpetrate such despicable acts are held accountable.”
“The events of Aug. 12, 2017, in Charlottesville are a grim reminder of why the FBI prioritizes its investigations of civil rights violations among the top of its criminal programs. I hope today will also be a reminder to those who are motivated by hate and intent on committing violence; we are going to be there, just as we were in this case,” said FBI Special Agent in Charge Adam S. Lee of the Richmond Division, who also oversees the office in Charlottesville. “I want to thank the Civil Rights Division and the United States Attorney’s Office for their outstanding partnership, my team of FBI agents and analysts who worked tirelessly to put the case together, and the business owners and residents of Charlottesville who worked with us and provided a massive volume of evidence in this case.”
According to the indictment, on or before Aug. 8, 2017, Fields decided to attend the Unite the Right Rally in Charlottesville, Virginia. The Unite the Right rally was scheduled to occur on Aug. 12, 2017, at Emancipation Park and was widely publicized on social media and internet sites associated with white supremacist individuals and groups.
On the morning of Aug. 12, 2017, Fields arrived in and around the vicinity of Emancipation Park in Charlottesville. Multiple groups and individuals, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views. After an “unlawful assembly” was declared, rally participants, including Fields, dispersed the area. Fields returned to his vehicle and soon after drove to the vicinity of the intersection of Fourth and East Market streets in downtown Charlottesville.
As alleged in the indictment, Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At around the same time, a racially and ethnically diverse crowd of individuals was gathered at the bottom of the hill, at the intersection of Fourth and East Water streets. The indictment alleges that Fields slowly proceeded in his vehicle toward the crowd, stopped, and then observed the crowd while idling in his vehicle. Many of the individuals in the crowd were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. With no vehicle behind him, Fields slowly reversed his vehicle to the top of the hill near the intersection of Fourth and Market streets. Fields then rapidly accelerated, ran through a stop sign and across a raised pedestrian mall, and drove directly into the crowd, striking numerous individuals, killing Heather Heyer, and injuring many others. Fields’s vehicle stopped only when it struck another vehicle near the intersection of Fourth and Water streets. He then rapidly reversed his vehicle and fled the scene.
The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh and Stephen Curran and Rachel Kincaid, trial attorneys with the Civil Rights Division of the Department of Justice, are prosecuting the case for the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Ohio Man Charged with Federal Hate Crimes Related to August 2017 Rally in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – A federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Charlottesville today charged an Ohio man with federal hate crimes, including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville. Attorney General Jeff Sessions, FBI Director Christopher Wray, Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Thomas T. Cullen of the Western District of Virginia, and Special Agent in Charge of the FBI’s Richmond Division Adam S. Lee, made the announcement.
James Alex Fields Jr., 21, of Maumee, Ohio, was charged in an indictment returned earlier today with:
- one count of a hate crime act resulting in the death of Heather Heyer (18 U.S.C. § 249);
- 28 counts of hate crime acts causing bodily injury and involving an attempt to kill (18 U.S.C. § 249); and
- one count of racially motivated violent interference with a federally protected activity (18 U.S.C. § 245(b)(2)), resulting in the death of Heather Heyer, for driving his car into a crowd of protestors on a downtown street in Charlottesville, Virginia.
“At the Department of Justice, we remain resolute that hateful ideologies will not have the last word and that their adherents will not get away with violent crimes against those they target,” Attorney General Jeff Sessions said. “Last summer’s violence in Charlottesville cut short a promising young life and shocked the nation. Today’s indictment should send a clear message to every would-be criminal in America that we aggressively prosecute violent crimes of hate that threaten the core principles of our nation. I want to thank the FBI as well as our fabulous prosecutors Stephen Curran, Christopher Kavanaugh, and Rachel Kincaid for their hard work on this case.”
“As this case indicates, our office will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group,” U.S. Attorney Thomas T. Cullen stated. “We are grateful to the FBI and our state and local law-enforcement colleagues who conducted the parallel federal and state investigations in a cooperative fashion, enabling us to vindicate this critical federal interest.”
"Hatred and violence have no place in our communities," said FBI Director Christopher Wray. “The investigation of hate crimes is a top priority of the FBI, and we will continue to work with our partners to ensure those who perpetrate such despicable acts are held accountable.”
“The events of Aug. 12, 2017, in Charlottesville are a grim reminder of why the FBI prioritizes its investigations of civil rights violations among the top of its criminal programs. I hope today will also be a reminder to those who are motivated by hate and intent on committing violence; we are going to be there, just as we were in this case,” said FBI Special Agent in Charge Adam S. Lee of the Richmond Division, who also oversees the office in Charlottesville. “I want to thank the Civil Rights Division and the United States Attorney’s Office for their outstanding partnership, my team of FBI agents and analysts who worked tirelessly to put the case together, and the business owners and residents of Charlottesville who worked with us and provided a massive volume of evidence in this case.”
According to the indictment, on or before Aug. 8, 2017, Fields decided to attend the Unite the Right Rally in Charlottesville, Virginia. The Unite the Right rally was scheduled to occur on Aug. 12, 2017, at Emancipation Park and was widely publicized on social media and internet sites associated with white supremacist individuals and groups.
On the morning of Aug. 12, 2017, Fields arrived in and around the vicinity of Emancipation Park in Charlottesville. Multiple groups and individuals, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views. After an “unlawful assembly” was declared, rally participants, including Fields, dispersed the area. Fields returned to his vehicle and soon after drove to the vicinity of the intersection of Fourth and East Market streets in downtown Charlottesville.
As alleged in the indictment, Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At around the same time, a racially and ethnically diverse crowd of individuals was gathered at the bottom of the hill, at the intersection of Fourth and East Water streets. The indictment alleges that Fields slowly proceeded in his vehicle toward the crowd, stopped, and then observed the crowd while idling in his vehicle. Many of the individuals in the crowd were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. With no vehicle behind him, Fields slowly reversed his vehicle to the top of the hill near the intersection of Fourth and Market streets. Fields then rapidly accelerated, ran through a stop sign and across a raised pedestrian mall, and drove directly into the crowd, striking numerous individuals, killing Heather Heyer, and injuring many others. Fields’s vehicle stopped only when it struck another vehicle near the intersection of Fourth and Water streets. He then rapidly reversed his vehicle and fled the scene.
The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh and Stephen Curran and Rachel Kincaid, trial attorneys with the Civil Rights Division of the Department of Justice, are prosecuting the case for the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Oakdale prisoner pleads guilty to attempting to escape correctional centerRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a federal prisoner in Oakdale pleaded guilty Tuesday to attempting to escape by climbing over a razor wire perimeter fence.
Lucas Gregory Woodard, 41, an inmate at the Federal Correctional Center in Oakdale, Louisiana, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of attempted escape. The plea will become final when accepted by U.S. District Judge Robert G. James. According to the guilty plea’s factual basis, U.S. Bureau of Prison staff at the Federal Correctional Center in Oakdale discovered two inmates, Woodard and codefendant Nicholas Bickle, 40, ensnared in razor wire on the perimeter fence and ground that encompassed the correction center on October 11, 2017. Staff had to pry open and cut the coils of razor wire in several places in order to remove Woodard and Bickle.
The defendants face up to five years in prison, three years of supervised release and a $250,000 fine. Bickle pleaded guilty on June 6, 2018 to one count of attempted escape. The defendants are scheduled to be sentenced October 1, 2018
The FBI and U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
North Bay Resident Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
SAN FRANCISCO – Lara Karakasevic, aka Lara Castle, pleaded guilty in federal court yesterday to conspiring to defraud the United States, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Acting Special Agent in Charge Tara Sullivan. The plea was accepted by the Honorable Vince Chhabria, U.S. District Judge.
According to her plea agreement, Karasevic, 48, of St. Helena, Calif., admitted that between July 2008 and June of 2009, she and a coconspirator agreed to defraud the United States by obstructing the lawful function of the IRS by deceitful or dishonest means.
Karakasevic owned an internet-based consulting business called TTF Consulting, LLC, which operated out of a home in Petaluma. In exchange for a fee, TTF Consulting electronically transmitted for its clients certain forms to the IRS, including Forms 1099-OID. Form 1099-OID is a form used to report annual interest on certain types of securities. As part of the scheme, Karakasevic’s coconspirator received information from TTF Consulting clients, reviewed the information, and provided the information to Karakasevic so Karakasevic could complete the forms and submit the forms to the IRS. Between April 2009 and June 2009, Karakasevic prepared six forms for TTF Consulting clients knowing that the forms were false. Specifically, the forms reported false amounts of interest income and tax withholdings from certain financial institutions. In addition, after filing the false forms, TTF Consulting informed its clients that the clients could later file tax returns based on those forms. Karakasevic acknowledged that she was aware of a high probability that the purpose of the conspiracy was to obstruct and defeat the IRS’s efforts to collect income taxes and that, after October 2008, when she knew the purpose of the conspiracy was unlawful, she nevertheless continued with the scheme. In addition, Karakasevic submitted a 2005 federal income tax return on her own behalf requesting a $291,836 refund based on a false and fraudulent Form 1099-OID. Karakasevic admitted that, in sum, the intended tax refunds from the false and fraudulent tax returns submitted to the IRS based on her conduct amounted to $1,231,578.
On June 24, 2014, a federal grand jury handed down an indictment charging Karakasevic with one count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, and one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1). Karakasevic pleaded guilty to the first charge. The second charge will be dismissed at the time of sentencing if Karakasevic complies with the terms of the plea agreement.
Karakasevic is currently free on bond. Judge Chhabria scheduled her sentencing hearing for October 2, 2018. Karakasevic faces a maximum statutory penalty of five years in prison and a fine of $250,000 for the conspiracy charge. However, any sentence will 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. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
New York Man Charged with Illegal Possession of a FirearmRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Timothy Ortiz, a/k/a “Tyson,” 25, of New York, was charged by criminal complaint in U.S. District Court with possession of a firearm by a felon.
According to court documents, on September 26, 2016, Ortiz was involved in an argument which led to his fatal shooting of Jonathan Methot using a silver Ruger, new model Blackhawk, .357 revolver at a duplex apartment building in Biddeford. Ortiz was prohibited from possessing the firearm as the result of 2016 Maine felony convictions for aggravated sex trafficking and heroin distribution.
Ortiz faces up to ten years in prison and a fine of up to $250,000 on the charge. His initial appearance is scheduled for 2:30 today in U.S. District Court.
This case was investigated by the Biddeford Police Department; the Maine State Police; the Maine Attorney General’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the FBI; and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as 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.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
New Orleans man sentenced to 57 months in prison for viewing child pornography onlineRead the Press Release
NEW ORLEANS, La. – United States Attorney David C. Joseph announced today that a New Orleans man was sentenced to four years and nine months in prison for viewing child pornography.
Michael Calagna, 66, of New Orleans, Louisiana, was sentenced by U.S. District Judge Martin L.C. Feldman on one count of accessing or viewing child pornography. He was also sentenced to five years of supervised release. According to the guilty plea, law enforcement began investigating an online video teleconferencing service in 2015 that specialized in sharing child pornography to its viewers. The agents recorded the presentations and noted that Calagna was a viewer at his New Orleans home. During the video chats, Calagna expressed his interest in pornography showing children ages five and up.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security conducted the investigation. Assistant U.S. Attorneys John Luke Walker and David J. Ayo prosecuted the case.
New Haven Gang Member Sentenced to 15 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KEITH YOUNG, also known as “Capo,” “Bapo” and “Poncho,” 28, of Hamden, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 180 months of imprisonment, followed by five years of supervised release, for his role in a violent New Haven street gang.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. YOUNG was a member and leader of the RSGB. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms and used drug addicts as straw purchasers of firearms. Members then brought the firearms back to New Haven and distributed them to gang members.
YOUNG had a role in three gang-related murders in 2011. On June 24, 2011, Donell Allick was shot and killed as he stood in his New Haven home. The investigation revealed that, on that date, Benton, YOUNG, Luis Padilla and Kavon Rogers drove in a car searching for a rival gang leader that Benton intended to murder. Instead, Benton encountered Allick, with whom Benton was angry over a drug transaction. After Benton, Padilla and YOUNG exited the car, Benton fired multiple shots through an open kitchen window, killing Allick. Benton, Padilla and YOUNG then returned the car, where Rogers had been waiting. Rogers then drove to a location where Benton hid the gun.
In September 2011, RSGB leadership ordered Robert Short, also known as “Santana,” to murder Darrick Cooper, who was a leader of a rival gang and seen as a threat. In the early morning hours of September 19, 2011, Short lured Cooper to a location in Hamden and shot Cooper in the back of the head as Cooper walked up a staircase. The investigation revealed that YOUNG had offered to help Short kill Cooper. YOUNG was with Short and Cooper shortly before Cooper’s murder and, after the murder, YOUNG drove Short to a location to dispose of the firearm used in the murder.
In December 2011, YOUNG and Trevor Murphy, also known as “Snookie,” planned a robbery of drugs and cash from Joseph Zargo, and YOUNG provided a firearm for Murphy to use. Murphy ordered a quantity of ecstasy from Zargo and, just after midnight on December 23, 2011, Murphy met Zargo on Houston Street in New Haven. After Murphy took ecstasy pills from Zargo, he pulled out a firearm. When Zargo reached into his pocket, Murphy shot Zargo once in the chest. Zargo died later that morning. After the murder, Murphy fled the scene and met up with YOUNG, who had watched the robbery and murder unfold from a nearby location.
YOUNG has been detained since his arrest on September 30, 2015. On February 13, 2017, he pleaded guilty to one count of engaging in a pattern of racketeering activity, and one count of money laundering related to the transferring of drug proceeds from Maine to Connecticut through Western Union.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton, Padilla, Rogers, Short and Murphy pleaded guilty to various offenses stemming from this investigation. On October 4, 2017, Benton and Short were sentenced to 40 years of imprisonment and 30 years of imprisonment, respectively; on October 5, 2017, Murphy was sentenced to 30 years of imprisonment, and on April 9, 2018, Rogers was sentenced to 12 years of imprisonment. Padilla awaits sentencing.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Jocelyn Kaoutzanis and Peter Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
New Castle Man Conspired to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney Scott W. Brady announced today.
Waverly Primm, age 30, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that in 2015, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Primm conspired with others to distribute crack cocaine, which was transported from Buffalo, NY, to the New Castle area for further distribution.
Judge Fischer scheduled sentencing for November 20, 2018 at 1 p.m. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force conducted the investigation that led to the prosecution of Primm.
Multiple convictions in federal sex trafficking casesRead the Press Release
PRESS RELEASE
Indianapolis B Josh J. Minkler, the United States Attorney for the Southern District of Indiana, announced today the convictions of multiple offenders in two separate sex trafficking cases.
“Sex trafficking, particularly of children, has no place in this country,” said Minkler. “Our children should be able to grow up without being offered for sale by adults who seek to profit from their vulnerability.”
In the first case, United States v. James Young, four offenders were sentenced for their varying roles in trafficking four minors and other adults over a two-year period beginning in 2013. Young’s trafficking did not end until he was arrested in 2015. While he was on home detention and probation for promoting prostitution, Young trafficked teenagers and prostituted adults out of a motel on the Eastside of Indianapolis using online sex trafficking forums. IMPD and the FBI first focused on Young when a child was arrested for prostitution and she disclosed the ways in which Young had trafficked her. From there, investigators put together their case using social media, online sex trafficking advertisements, historical police reports, and motel records.
Young pleaded guilty to the sex trafficking of three minor girls, operating a business enterprise that prostituted adults and children, and illegal possession of a firearm. Chief Judge Jane Magnus-Stinson sentenced Young to 26 years in prison and a lifetime of supervised release. Young was also ordered to pay a total of $450,000 in restitution to five victims. Defendant Raheem Simmons pleaded guilty to interstate travel and transportation in aid of racketeering activity, specifically the sex trafficking of a minor child. He was also sentenced by Magnus-Stinson to a term of two years imprisonment, three years of supervised release and ordered to pay $2000 in restitution to an identified victim. Another defendant, in a sealed case, pleaded guilty to her role in conspiring to prostitute adults and minors.
In the second case, United States v. Nahtahna Garcia Herrera, four offenders were sentenced for their roles in trafficking two identified minor children and prostituting other adults. Using two houses on the Westside of Indianapolis, Garcia-Herrera and her co-defendants trafficked children and prostituted adults in the fall of 2016. The FBI and IMPD, working together, discovered that properties known as “the building” and “the sugar shack” were places were illegal drugs were bought and sold, and that the purchase and sale of these drugs was facilitated by prostitution. More concerning, investigators found that teenage girls were being offered up online for commercial sex acts. Their investigation led to the arrest of Garcia-Herrera and her co-defendants on varying charges stemming from the criminal enterprise.
Defendant Garcia-Herrera was sentenced to 20 years in prison for trafficking two minor girls by Judge Tanya Walton-Pratt. Defendant Vaughn Isom pleaded guilty to interstate transportation and travel in aid of racketeering for his role in promoting prostitution and the sale of illegal narcotics. Judge Walton-Pratt sentenced him to a prison term of four years and three years of supervised release. Defendant Rhonda Badger has also pleaded guilty to the same charge as Isom and is awaiting sentencing. Finally, defendant Tyrece Jones pleaded guilty to the sex trafficking of a minor child and will be sentenced on July 27, 2018, by Judge Sarah Evans Barker.
"The exploitation of vulnerable youth is, unfortunately, a very real and growing issue in our country and one the FBI simply will not tolerate,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “We will continue to work with our partners to identify and investigate those who engage in this predatory behavior in order to ensure the safety of our children.”
IMPD Chief Bryan Roach stated, "The physiological and physical damage borne by the victims of this horrific crime is truly unimaginable and heartbreaking and deserves the full attention of law enforcement." Because of the tremendous investigative efforts and collaborative spirit of both IMPD detectives and our federal partners, together we hope to help victims restore their dignity and a greater sense of hope and prosperity."
Minkler further stated, “Teenagers are some of our most vulnerable population. Caught between the innocence of childhood and on the brink of being an adult, we must assure that teens do not fall prey to adults with malicious intentions. The children in our community are not for sale, and forcing or coercing adults to engage in acts of prostitution is repugnant. These convictions should serve as a warning not only to sex traffickers, but also to adults trying to pay for sex acts. It is a federal crime and we will not stop seeking justice for these victims.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who exploit and harm children and other vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 4.1
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Moss Point Man Pleads Guilty to Illegally Possessing Methamphetamine and FirearmRead the Press Release
Gulfport, Miss. – Edward Corneilus Bridges, 37, of Moss Point, pled guilty yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute 500 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
On March 22, 2018, a state search warrant was executed at Bridges’ home in Moss Point. Upon entering the home, agents located more than 500 grams of methamphetamine, cocaine, scales, large amounts of cash, marijuana, ecstasy pills, a ledger, ammunition cases and an SKS rifle.
Later that day, Bridges met with the FBI and admitted he owned the narcotics and gun, and he further admitted to intending to distribute the methamphetamine. He said he destroyed his phone prior to meeting with the FBI by throwing it into the Escatawpa River.
Bridges will be sentenced on October 12, 2018, by Judge Ozerden, and faces a maximum penalty of life in prison and a $10 million fine for possessing the methamphetamine and five consecutive years and a $250,000 fine for possessing the SKS in furtherance of the drug trafficking crime.
The case was investigated by FBI Safe Streets Task Force and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Monroe Area Doctor Charged with Illegal Distribution of Prescription Drugs and Health Care FraudRead the Press Release
DR. POMPY WAS ACQUITTED OF THE CHARGES ALLEDGED IN THE INDICTMENT DESCRIBED IN THE PRESS RELEASE BELOW
A grand jury returned an indictment yesterday charging Dr. Lesly Pompy, 57, of Monroe, Michigan with unlawful distribution of prescription drugs and health care fraud, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration, Detroit Field Division 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 37-count Indictment charges that between 2012 and 2016, Dr. Pompy unlawfully distributed more than 4,221,892 dosage units of Schedule II controlled substances and over 6,196,642 total dosage units of all controlled substances outside the course of professional medical practice. During that time frame, he also submitted claims to Medicare, Medicaid and Blue Cross Blue Shield totaling approximately $16,856,683. The majority of these fraudulent claims were seeking reimbursement for the costs of office visits and other services that were not medically necessary and that Dr. Pompy never rendered.
“The damage that the proliferation of opioid distribution has done to our community, like many across the United States has been devastating,” stated United States Attorney Schneider. “It’s particularly disturbing when the distributor is a medical professional
DEA Special Agent in Charge Plancon stated, “This investigation was only possible because of the collaborative efforts of our federal and local law enforcement partners including but not limited to the Monroe Area Narcotics and Investigation Team. The indictment of Pompy reminds the citizens we serve that collectively we are ridding the community of crime one drug dealer at a time.”
Dr. Pompy was arraigned this afternoon in federal court and was released on bond.
This case is being prosecuted by Assistant United States Attorney Brandy R. McMillion and Health Care Fraud Chief Wayne F. Pratt. McMillion serves as the Opioid Fraud Abuse and Detection Unit Prosecutor for the Eastern District of Michigan. This Department of Justice initiative uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit.
The case was investigated by the U.S. Drug Enforcement Administration and the U.S. Department of Health and Human Services, Office of Inspector General.
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.
Milford Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
A man who received child pornography pled guilty on June 26, 2018, in federal court in Sioux City.
Joe Elliott Sinnott, 27, from Milford, Iowa, was convicted of one count of receiving child pornography.
In a plea agreement, Sinnott admitted that from January 2018 until April 27, 2018, he knowingly used KiK messenger to receive child pornography. Sinnott also admitted to receiving fully nude photographs of a 15-year-old female that he had met in person in Minnesota last year.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sinnott remains in custody of the United States Marshal pending sentencing. Sinnott faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 5 years to life of supervised release following any imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case is being prosecuted by Assistant United States Attorney Ajay J. Alexander and was investigated by the Iowa Division of Criminal Investigations and Spirit Lake Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4033.
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Mexican National Sentenced to More Than 7 Years in Prison for Trafficking Heroin into ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVID SILVA PESTANO, 33, a citizen of Mexico, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment for trafficking heroin.
According to court documents and statements made in court, SILVA PESTANO and others conspired to traffic multi-kilogram quantities of heroin from Mexico to the Bridgeport, Connecticut area. On multiple occasions between approximately April 2015 and March 2017, SILVA PESTANO personally transported more than 30 kilograms of heroin into Connecticut.
On February 14, 2017, SILVA PESTANO was arrested in Nogales, Arizona, after he crossed the border on a motorcycle carrying 11.94 kilograms of heroin in a concealed compartment.
On March 16, 2017, a grand jury in Hartford returned an indictment charging SILVA PESTANO and six other individuals with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and related offenses. SILVA PESTANO also was charged in the District of Arizona with possession with intent to distribute one kilogram or more of heroin. The Arizona case was transferred to the District of Connecticut for further prosecution.
SILVA PESTANO has been detained since his arrest. On December 22, 2017, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin, and one count of possession with intent to distribute heroin.
SILVA PESTANO will be deported to Mexico when he completes his prison term.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Member of Drug Trafficking Organization that Distributed High Grade Marijuana Throughout New Mexico Sentenced for Hashish Oil Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Daniel Nieto, 40, of Carlsbad, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 36 months in prison followed by three years of supervised release for his conviction on a hashish oil trafficking charge.
Nieto is one of ten defendants charged as the result of a two-year investigation by the FBI and IRS-Criminal Investigation into a drug trafficking organization led by Enrique Cavazos, 32, of Tijeras, N.M., that distributed high-grade marijuana throughout New Mexico and across the country. The investigation revealed that the Cavazos drug trafficking organization cultivated and purchased high-grade marijuana in California, distributed the marijuana throughout the country, and laundered its drug proceeds through a number of businesses and bank accounts in New Mexico.
Nieto, Enrique Cavazos, his wife Lindsey Cavazos, 33, his father Felix Cavazos, 59, of Albuquerque, Joaquin Alaniz, 41, of Carlsbad, Eliberto Nava, 36, of Madera, Calif., Antonio Ruelas, 32, of Rio Rancho, N.M., and Robert D. Moreno, 38, of Ukiah, Calif., were charged by indictment in Nov. 2015, with marijuana trafficking and money laundering offenses. The indictment charged the co-conspirators with participating in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere.
According to court filings, Enrique Cavazos operated a marijuana trafficking business by directing his co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. Lindsey Cavazos was responsible for keeping the books on businesses she and her husband established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The couple engaged in a money laundering conspiracy and used bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment was superseded in Aug. 2016, to add money laundering charges against three new defendants: Steven Becerra, 62, the owner of the Becerra Group Tax and Accounting Firm in Albuquerque, who previously was employed by the IRS for 18 years; Deborah Gutierrez, 55, who operated Automated Financial Technologies, which is no longer in business; and Glen F. Lucero, 66, a retired school teacher. The superseding indictment also removed Felix Cavazos, Enrique Cavazos’s father who passed away after the original indictment was filed, from the list of defendants.
On May 25, 2017, Nieto pled guilty to one count of possession of hashish oil with intent to distribute. In entering the guilty plea, Nieto admitted that as part of the investigation into his co-defendants, law enforcement officers learned that Nieto had been selling marijuana and hashish oil primarily provided to Nieto by his co-defendants for approximately seven to eight years. Nieto further admitted that during a search of his residence in May 2015, law enforcement officers located approximately two pounds of hashish oil, prescription pills and two firearms. Nieto acknowledged that the hashish oil that was found in his residence was to be distributed to other individuals.
Six of Nieto’s co-defendants have entered guilty pleas, and two have been sentenced. Enrique Cavazos pled guilty on May 24, 2017, and was sentenced on May 9, 2018, to 72 months in federal prison followed by three years of supervised release. Ruelas pled guilty on Sept. 8, 2017, and was sentenced on May 2, 2018, to 30 months in federal prison followed by three years of supervised release. Lindsey A. Cavazos pled guilty on May 24, 2017, Navia pled guilty on May 22, 2018, and Moreno pled guilty on June 12, 2018. Sentencing hearings for these three defendants have yet to be scheduled.
The remaining four defendants, who have entered not guilty pleas to the superseding indictment, are pending trial, which is currently scheduled for July 2018. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation of this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. It was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation and the Albuquerque Police Department. Assistant U.S. Attorneys Jennifer M. Rozzoni, Timothy S. Vasquez and Joel R. Meyers are prosecuting the case, and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
McHenry Man Sentenced to More Than 17 Years in Federal Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A McHenry man was sentenced today by U.S. District Judge Frederick J. Kapala to 210 months in federal prison, to be followed by five years of supervised release, on child pornography charges.
Following a four-day jury trial in federal court, MICHAEL L. CHAPARRO, 29, was found guilty on Feb. 2, 2018, of one count of transporting child pornography via the internet, and two counts of accessing child pornography that had crossed state lines, including an image of a prepubescent minor and a minor under 12 years of age, with intent to view the child pornography.
According to the indictment and the evidence at trial, on Aug. 7, 2014, Chaparro knowingly transported to Pennsylvania and Texas materials depicting one or more actual minors engaged in sexually explicit conduct. In addition, evidence at trial indicated that Chaparro accessed a smart phone on Nov. 24, 2014, and computer hard drive on July 30, 2013, with intent to view child pornography, knowing that one or more persons depicted in an image involved a prepubescent minor or a minor who had not attained 12 years of age.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation; and Bill Prim, McHenry County Sheriff. The Illinois Internet Crimes Against Children Task Force assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.
Mansfield man charged with defrauding Social SecurityRead the Press Release
A Mansfield man was charged with theft of government funds.
Timothy L. Deener, 47, who receives Social Security benefits, falsely reported to the Social Security Administration for five years that he was not married and that he lived alone. As a result, Deener unlawfully obtained more in benefits than he was entitled to receive, according to the criminal information.
Special Agent Kelly Clark from the Social Security Administration Office of the Inspector General conducted the investigation. Special Assistant U.S. Attorney Payum Doroodian is prosecuting the case.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Settles Civil Fraud Lawsuit Against Fine Jewelry Designer for Evading Customs DutiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Robert E. Perez, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that the United States filed and settled civil fraud claims brought under the False Claims Act against TEMPLE ST. CLAIR LLC (“TEMPLE ST. CLAIR”), a fine jewelry designer, manufacturer, and importer based in New York, New York, with merchandise sold in retail stores and online throughout the United States. As alleged in the Government’s complaint, TEMPLE ST. CLAIR systematically and unlawfully avoided payment of customs duties it owed on goods imported from Thailand, Sri Lanka, and Italy by falsely stating to CBP that the value of the goods was substantially less than the true value, and by senior leadership of TEMPLE ST. CLAIR hand-carrying jewelry into the United States for commercial purposes without declaring it to CBP. Additionally, TEMPLE ST. CLAIR failed to properly affix to jewelry that was manufactured in Sri Lanka and Thailand permanent markings indicating its country of origin, in violation of CBP regulations. As part of the settlement, approved yesterday in Manhattan federal court by U.S. District Judge Katherine Polk Failla, TEMPLE ST. CLAIR admitted to and accepted responsibility for underpaying customs duties and failing to properly mark its merchandise, and agreed to pay $796,000 to the United States and implement corrective measures to prevent future customs violations.
Manhattan U.S. Attorney Geoffrey S. Berman said: “This Office is committed to pursuing customs fraud and holding importers accountable for evading customs duties and disregarding CBP requirements.”
ICE HSI Special Agent-in-Charge Angel M. Melendez said: “Temple St. Clair LLC employed fraudulent schemes that resulted in the underpayment of customs duties and the significant loss of revenue to the U.S. government. Unfair trade practices hurt industries and consumers alike. HSI stands committed with CBP, to vigorously investigate those people and businesses that seek to make a larger profit by circumventing, or even disregarding, customs regulations.”
CBP Director of New York Field Operations Robert E. Perez said: “Today’s settlement is a testament to the dedication of our partners in the United States Attorney's Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and taking effective action against those who seek to defraud the government.”
As part of the settlement, TEMPLE ST. CLAIR admitted, acknowledged, and accepted responsibility for engaging in the following conduct:
- From January 2011 through July 2016, TEMPLE ST. CLAIR repeatedly understated the actual value of jewelry it imported from Italy, Sri Lanka, and Thailand in documents presented to CBP to establish the import duties owed on the jewelry.
- From January 2011 through July 2016, to obtain duty-free treatment pursuant to the Generalized System of Preferences trade-preference program, TEMPLE ST. CLAIR misrepresented to the United States that at least 35% of the value of jewelry was added in Sri Lanka or Thailand.
- In 2017, TEMPLE ST. CLAIR failed to ensure that the jewelry it was importing from Sri Lanka and Thailand was permanently marked with its country of origin at the time of entry.
- Between 2011 and 2016, TEMPLE ST. CLAIR senior management brought jewelry into the country for commercial purposes, and improperly failed to declare those items to CBP. As a result, TEMPLE ST. CLAIR improperly avoided paying import duties for those items.
The settlement also requires TEMPLE ST. CLAIR to implement procedures to properly mark its jewelry with the country of origin. TEMPLE ST. CLAIR must affix markings to the jewelry prior to the time of importation and with sufficient permanence to withstand normal shipping and handling.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act.
Mr. Berman praised the investigative work of HSI on this case. He also thanked CBP for its assistance.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorneys Kirti Vaidya Reddy and Peter Aronoff are in charge of the case.
Man on Federal Supervised Release Pleads Guilty to Making False StatementRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALAN D. ZALESKI, 57, of New Britain, pleaded guilty today in New Haven federal court to one count of making a false statement to the U.S. Probation Office and the U.S. District Court.
According to court documents and statements made in court, on February 3, 2011, ZALESKI was sentenced in New Haven federal court to 101 months of imprisonment, followed by three years of supervised release, for illegally possessing machine guns and numerous other unregistered weapons. He was released from federal prison in December 2015 and began serving this three-year term of supervised release. As part of his reporting requirements while under court supervision, ZALESKI submits online monthly reports to the U.S. Probation Office and ultimately to the U.S. District Judge responsible for his criminal case. The online reporting form states that ZALESKI must answer the questions completely and correctly, and further warns ZALESKI that making a false statement may result in federal prosecution.
On his monthly reports to the U.S. Probation Office, ZALESKI has reported that he lives in New Britain.
On March 23, 2018, the FBI interviewed the owner of a property at 863 Shuttle Meadow Avenue in Berlin and learned that ZALESKI has rented this property for years and remains as the current renter. This was the same location the FBI searched in 2006 over a period of three days in which dozens of automatic machine guns and semi-automatic firearms, multiple rifles and handguns, as well as silencers, fragmentation grenades, chemical grenades, smoke grenades and various homemade pipe bombs and IEDs were located and seized. In 2006, the property was protected by booby-traps, including tripwires connected to percussion explosives and camouflaged plywood boards on the ground with nails protruding through them.
At no time has ZALESKI reported to the U.S. Probation Office his affiliation with any storage space or rental property, or association to any property located at 863 Shuttle Meadow Avenue in Berlin, thus preventing the U.S. Probation Office’s ability to supervise ZALESKI and ensure that he was in compliance with all of the conditions of his release.
ZALESKI is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on September 20, 2018, at which time he faces a maximum term of imprisonment of five years.
ZALESKI is released on bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Man Sentenced to Gun Charge, Drug Conspiracy, and Possession with Intent to Distribute HeroinRead the Press Release
U.S. Attorney Duane A. Evans announced that KEVIN SAM, age 43, of New Orleans, was sentenced today, by the Honorable Susie Morgan, United States District Court Judge, to a 105 month term of imprisonment, to be followed a three year period of supervised release. On March 19, 2018, SAM plead guilty to a Superseding Bill of Information charging him with conspiracy to distribute and possession with the intent to distribute heroin, possession with the intent to distribute heroin, and being a felon in possession of a firearm.
According to court documents, SAM was the target of a narcotics investigation that was investigated by members of the Federal Bureau of Investigation. Members of the FBI received information that SAM was selling heroin from his residence, located in the 1300 block of Reyes Street in New Orleans, Louisiana. Agents obtained a search warrant of SAM’s residence and located multiple bags of heroin that were packaged for sale. A pistol was also located inside of the residence. SAM, a convicted felon, is prohibited by law from possessing a firearm. At the time of his arrest, agents, while conducting a pat down of SAM, located additional individually wrapped bags of heroin inside of SAM’s clothing.
In August of 2017, SAM was sentenced to serve 120 month term of imprisonment for his role in a drug conspiracy in the Eastern District of Texas (Beaumont Division). The sentence imposed today will run concurrent with the Texas sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Man Sentenced to 50 Years Imprisonment for Committing Three Drug-Related HomicidesRead the Press Release
St. Louis, MO - Jacobi Temple, 27, of Saint Louis, MO, was sentenced to 50 years imprisonment for his for his killing of James Lacey, Paige Schaefer, and Tammie Thurmond on March 27, 2015. Mr. Lacey and Ms. Schaefer were shot and killed inside a residence located in the 4400 block of Itaska in the City of Saint Louis. Ms. Thurmond was found by police in an alley behind the 4200 block of South 37th Street. She died a short time later.
Temple was sentenced on one count of conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted. United States District Court Judge John A. Ross imposed the sentence.
According to court documents, Temple, along with his two co-defendants, Demante Syms and Samuel Spires, traveled in a vehicle to the area of 4467 Itaska Street. Temple went there to obtain payment for heroin previously distributed by him that had not been paid for. Temple learned of the 4467 Itaska location from Tammie Thurmond who was the mother of Paige Schaefer. While inside 4467 Itaska demanding payment, Temple shot and killed James Lacey and Paige Schaefer. A third occupant, Brittney Brown, was shot in the head and severely injured. Shortly after, Temple, Syms and Spires located Ms. Thurmond. Temple took Ms. Thurmond to an alley, then shot and killed her.
After being shot in the head inside the Itaska residence, Brittney Brown struggled to, but successfully contacted 911. Ms. Brown survived but was hospitalized for a significant period of time. While hospitalized (and continuing after her release), Ms. Brown provided invaluable support and assistance to law enforcement officials. Ms. Brown provided a powerful, moving victim impact statement during today’s sentencing for the court’s consideration in fashioning an appropriate sentence:
“After 21 years of being uncertain of who I was, [Temple’s] actions changed that for me. I was stripped down to my core; you took away my worth, privacy, energy, time, safety and my confidence. Do you know how that feels? I do because of [Temple]. The one thing [Temple] did not take away was my voice, and with that, I found my wounds led me to my purpose, and I was able to change this tragic event into something positive. There were many bumps along the way, but I refuse to let them, [Temple] or my circumstances define me. Today, I love myself for who I am -- scars and imperfections. I have learned to be a better person. I have learned to show compassion because you never know how you might influence someone’s life. I believe in miracles, because I am one…I have somehow managed to piece together all of the broken pieces that [Temple] left for me…
One of the happiest moments in life is when you find the courage to let go of what you can’t change. I was brave, strong, and broken all at once, and I pulled through…The fact that I am standing here today, sober, walking, talking and living my life, is proof that I am not what happened to me. I am what I choose to become. Today I choose to be a survivor, not a victim.
I am a woman of substance; don’t define me by the way I look. I am way more than meets the eye. Define me by the tough battles that I fight each and every day. Define me by the courage that I have found to face [Temple] no matter how difficult. I will survive despite any struggle because I am strong through and through.”
Temple’s sentencing is the last of the three named defendants. It concludes a three-plus year investigation and federal prosecution resulting in the convictions of all three charged participants. Syms and Spires were previously sentenced to terms of life and 20 years imprisonment, respectively. Likewise, the investigation resulted in the separate prosecution and convictions of Syms and his mother, Tabitha Hunt, for witness tampering in connection with the underlying homicide investigation. Tabitha Hunt was previously sentenced to a period of supervised release.
United States Attorney Jeff Jensen again applauded the courage of Ms. Brown and the commitment of the investigative team, “it is impossible to understate the importance of strong people like Ms. Brown who courageously stand up to violent offenders like Jacobi Temple. She epitomizes the good people of St. Louis that our violent crime initiative seeks to help.”
This case was investigated as part of the on-going effort between the United States Attorney’s Office, the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the violent crime within the City of Saint Louis.
Luzerne County Woman Charged in Money Laundering SchemeRead the Press Release
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that Joy Dykes, age 36, of Edwardsville, Pennsylvania was charged on June 26, 2018, in a criminal information for her participation in a money laundering scheme.
According to United States Attorney David J. Freed, the criminal information alleges that between November 2011 and February 2016, Dykes’ was involved in an on-line scheme to defraud an unsuspecting victim of money by creating multiple identities, luring the victim into a romantic relationship, and then soliciting money from the victim via threats and coercion, including the creation of a fraudulent identity of an FBI agent. The criminal information also alleges that Dykes unlawfully received approximately $124,000 from the victim of the fraud.
The case was investigated by the Internal Revenue Service, Criminal Investigation - Scranton. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the charge under the federal statutes is imprisonment for 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lonsdale Man Sentenced to over 6 Years in Federal Prison for Felon in Possession of A Firearm ViolationRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Steven Nelson a.k.a Steven Varnes, age 40, of Lonsdale, was sentenced yesterday to 78 months in federal prison followed by three years of supervised release on one count of Receiving and Possessing an Unregistered Firearm. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November 2016, officers with the Glenwood Police Department were dispatched to the scene of a two vehicle accident. One of the drivers was attempting to identify himself using a false name and birthdate with an expired identification card. Officers became suspicious and confronted the individual with this information, and the individual was identified as Nelson. Further investigation revealed that Nelson’s driver’s license was suspended and that he was a convicted felon. Nelson was then placed under arrest.
A search of Nelson revealed a live 12-gauge shotgun shell in his pocket and a search of the vehicle he operated revealed twenty-one (21) 12-gauge shotgun shells, and a short-barreled, 12-gauge shotgun. A subsequent search of the National Firearm Registration and Transfer record revealed that Nelson’s short-barreled shotgun was not registered to Nelson in violation of federal law.
Nelson was indicted by a federal grand jury in January 2017 and entered a guilty plea in September 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Glenwood Police Department. Assistant United States Attorney Amanda Donat prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Longtime Federal Prosecutor Among Inaugural North Carolina Lawyers Weekly Hall of Fame InducteesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Gill Paul Beck, Sr., a longtime federal prosecutor with the U.S. Attorney’s Office for the Western District of North Carolina, was among the 23 North Carolina lawyers inducted into the North Carolina Lawyers Weekly Hall of Fame. The ceremony for the Class of 2018 was held on June 26th at the City Club in downtown Raleigh.
Mr. Beck is an Assistant United States Attorney (AUSA) in Asheville, and currently serves as the Civil Chief of the Office’s Civil Division. Prior to joining the Western District, Mr. Beck served as the Civil Chief for the U.S. Attorney’s Office in the Middle District of North Carolina. A 26-year federal prosecutor, Mr. Beck guides the handling of the Office’s civil caseload, including representing the United States and federal agencies in federal and state courts. AUSA Beck is a past recipient of the Attorney General’s Distinguished Service Award, the NC Lawyers Weekly Lawyer of the Year (2016), and the NC Bar Association’s Citizen-Lawyer Award. He was born and raised in Lenoir, North Carolina.
Mr. Beck served as the first Army Judge Advocate to command a two-star U.S. Army Reserve unit, and also commanded the Army Reserve Legal Command. Over the course of his military career, Major General Beck has served the United States overseas, including in 2005 in Iraq, where he led a joint legal team prosecuting terrorists. During 2007, as an Associate Deputy General Counsel in the Office of General Counsel, Department of Defense, in the Pentagon, he provided legal advice on Iraq and Afghanistan issues in support of the surge in Iraq, and in 2008, he served as Executive Officer to the Army General Counsel, who was responsible for supervising Army attorneys throughout the world. From 2009-2011, he served as the Chief Judge (Individual Mobilization Augmentee) to the Army Court of Criminal Appeals. For his service, Major General Beck has been awarded the Bronze Star, the Legion of Merit, and numerous other awards.
Mr. Beck received his Bachelor’s Degree from Appalachian State University (Summa Cum Laude), his J.D. from Duke University School of Law (High Honors), and his Master’s Degree from the U.S. Army War College.
Livermore Resident Sentenced to 10 Years for Distributing Heroin in Afghanistan Bound for the United StatesRead the Press Release
SAN FRANCISCO – Shamsuddin Dost was sentenced today to 10 years in prison for distributing heroin in Afghanistan that was bound for the United States, announced Acting United States Attorney Alex G. Tse and Drug Enforcement Administration Special Agent in Charge Chris D. Nielsen. The sentence was handed down by the Honorable James Donato, United States District Judge.
On January 22, 2018, after a four-day trial, a jury convicted Dost, 23, of Livermore. During the trial, evidence showed that Dost contacted a confidential source to ask him to bring heroin from Afghanistan to the United States. Dost connected the confidential source with a heroin supplier in Jalalabad, Afghanistan, who provided two kilograms of heroin, for the purpose of bringing the drugs to the United States. Dost also sold another five kilograms in Afghanistan, again bound for the United States. When Dost was arrested, he was planning the sale of another one hundred kilograms of heroin in Afghanistan, destined for the same customer in the United States. In recorded conversations, Dost described his family’s ability to provide trailer trucks of heroin from laboratories in Kandahar and Khogyani, in Afghanistan, and discussed other schemes to send heroin to Moscow and Pakistan.
In other recorded conversations, Dost also described his willingness to use violence and his “close ties” to the Taliban in Pakistan, which he asserted controlled the drug trade on the Afghan-Pakistan border. Dost stated that if someone betrayed him, he would not hesitate to pay a thousand dollars to “slice him like ground beef,” and that he had previously had a Taliban governor threaten to “cut [a man’s] throat and hang him in public.”
On July 6, 2017, a federal grand jury returned a superseding indictment charging Dost with one count of conspiracy to distribute one kilogram or more of heroin for the purpose of unlawful importation, in violation of 21 U.S.C. § 963, and two counts of distribution of one kilogram or more of heroin for the purpose of unlawful importation, in violation of 21 U.S.C. § 959(a). The jury found Dost guilty of all three counts.
In addition to the prison term, Judge Donato sentenced the defendant to a five-year period of supervised release. Dost has been in custody since his arrest on November 18, 2016, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Rita Lin and Nikhil Bhagat prosecuted the case with the assistance of Rawaty Yim and Linda Love. The prosecution is the result of an investigation by the Drug Enforcement Administration and the Federal Bureau of Investigation in Afghanistan and the Bay Area, with assistance from the Sensitive Investigations Unit of the Afghan National Police. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Lewiston Residents Arrested and Charged with Crack TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Sylas Way, 44, Elijah Blake, 26, Keon Baptiste-Harris, 35, Jamie Perry, 46, and Davontae Perrybrooks, 26, all currently residing in Lewiston, were arrested and charged today by criminal complaint in U.S. District Court with distribution of cocaine base, commonly known as “crack.”
According to the complaints, the charges arose from an investigation into crack trafficking in Lewiston.
If convicted, the defendants face up to 20 years in prison and a $1,000,000 fine.
Baptise-Harris made an initial appearance in U.S. District Court today at 10:30 a.m. The other defendants are expected to make initial appearances in U.S. District Court later today starting at 2:00 p.m.
The investigation is being conducted by the FBI’s Southern Maine Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Maine Drug Enforcement Agency; the Maine State Police; and the Lewiston Police Department.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Leakesville Man Sentenced to Almost 12 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Marcus Ladelle Moody, 44, of Leakesville, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 143 months in federal prison followed by 3 years of supervised release for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
Moody pled guilty on November 29, 2017 to one count of possession with intent to distribute methamphetamine. He was identified as a distributor of methamphetamine in Greene County. On July 14, 2017 a package intended for Moody was discovered by the U.S. Postal Service and Moody was arrested after a controlled delivery was made to his residence. It was later determined that the methamphetamine was in excess of 4 kilograms with a purity level of 90%.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Leader of Notorious Newark Heroin Distribution Ring Sentenced to 14 Years in Prison on Drug Conspiracy ChargesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 168 months in prison for his leadership role in a massive drug distribution ring responsible for selling millions of dollars’ worth of heroin out of a residential building near a high school in Newark, U.S. Attorney Craig Carpenito announced.
Quawee Jones, a/k/a “Hatman,” 34, of Newark, previously pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with conspiracy to distribute heroin. Judge Linares imposed the sentence today in Newark federal court
According to documents filed in the case and statements made in court:
Jones and his co-defendants operated a heroin distribution marketplace out of the first floor hallway of a residential building at 25 Johnson Avenue in Newark. The building is just a few doors away from the Malcolm X. Shabazz High School and the Terrell James Park playground. The conspiracy was led by Quawee Jones and Almalik Anderson, who, along with other heroin dealers that worked with them, took advantage of the building’s location on a dead-end street, making it difficult for law enforcement to infiltrate the distribution network despite a constant stream of buyers entering the building at all hours of the day.
“Lookouts” were paid by the defendants to alert them to any police activity coming onto the block from the only access point on Clinton Avenue. Police could not infiltrate the building without lookouts detecting their presence and signaling the sellers. Members of the drug trafficking organization also set up an escape route whereby residents were paid to keep their doors unlocked. The dealers in the hallways would run through the building and exit via fire escapes at the rear of the building or simply hide within the apartments before police could apprehend them.
The drug conspiracy operated nearly 24 hours a day and was well-known among heroin users, who came from several different counties across New Jersey. The defendants allegedly worked in carefully planned “shifts” in order to handle the constant flow of heroin buyers. The heroin was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred.
The defendants sold on average one to two kilograms of heroin per week between January 2013 and November 2015. Based upon the quantities sold, information from court-authorized wiretaps, and other evidence, the profit from the heroin distribution was estimated to be between $4 million and $7 million a year.In addition to the prison term, Judge Linares sentenced Jones to five years of supervised release.
All 16 defendants indicted for their roles in the heroin distribution conspiracy, including Anderson, have been convicted.
U.S. Attorney Carpenito credited special agents of the FBI and task force officers assigned to the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, the Essex County Sheriff’s Office under the direction of Armando B. Fontoura; the N.J. State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the Orange Police Department, under Director Todd Warren, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and David E. Malagold, and Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy Ann Biancamano Esq. and Dan Holzapfel Esq., Cranford, New Jersey
Lawrence Man Sentenced for Opioid Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced in federal court in Boston today for his role in an opioid trafficking conspiracy involving the distribution of fentanyl, heroin, and oxycodone across Massachusetts and Florida.
Juan Reyes, 29, was sentenced by U.S. District Court Judge Denise J. Casper to 55 months in prison and three years of supervised release. In March 2018, Reyes pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
Reyes and several co-conspirators were arrested in March 2017 for their roles in a widespread conspiracy involving opioid trafficking and money laundering offenses in Massachusetts and Florida. Their arrests were the result of a three-year federal investigation into opioid-trafficking in New England.
From at least 2014, Reyes and co-conspirator Craig Drummond, of Sunny Isles Beach, Fla., transported sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the illicit oxycodone sales were then transported back to Florida and laundered in various ways.
Drummond pleaded guilty and is scheduled to be sentenced on Oct. 12, 2018.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton, and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Lakeside Pharmacy Pays $75,000 for Failing to Keep Accurate Records of OpioidsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – June 26, 2018
SAN DIEGO – A pharmacy in Lakeside, California and its owners have paid $75,000 to resolve allegations that they failed to properly account for highly addictive and frequently abused opioids, including fentanyl.
The settlement is with Archana Corporation and its owners Rajeshbhai Zalavadiya and Ramesh Rakholia. The Archana Corporation, Zalavadiya, and Rakholia do business as Leo’s Lakeside Pharmacy.
This settlement arises from a Drug Enforcement Administration (DEA) investigation into Leo’s Lakeside Pharmacy’s opioid dispensing practices. In response to the Justice Department’s focus on combatting the opioid epidemic, the DEA has continued to conduct inspections and audits at pharmacies throughout the Southern District of California. Leo’s Lakeside Pharmacy was one of those pharmacies. Based on the DEA’s inventory audits, inspections, and other investigative activities, the United States asserts that Leo’s Lakeside Pharmacy violated the Controlled Substances Act (CSA).
The CSA applies to all registered controlled substances handlers, including pharmacies. The CSA also subjects registered pharmacies to strict requirements regarding inventory control and recordkeeping. These requirements ensure that pharmacies account for controlled substances from the time of purchase until they are dispensed to patients. The alleged violations include failure to keep accurate records associated with pharmaceutical fentanyl, oxycodone, and hydrocodone
“This settlement illustrates the United States Attorney’s Office’s continued commitment to combatting the opioid epidemic on all fronts,” said U.S. Attorney Adam Braverman. “Part of our strategy is making sure that registered opioid handlers keep accurate records of these highly addictive and extremely dangerous drugs. All pharmacies, whether large or small, will be held accountable.”
In addition to paying $75,000 in settlement to the government, Leo’s Lakeside Pharmacy has committed to implementing new inventory control procedures to assure full accountability of all controlled substances. .
“This investigation is a reminder to the pharmacy community that lax recordkeeping opens the door to the diversion of highly addictive pharmaceuticals,” states Drug Enforcement Administration San Diego Field Division Special Agent in Charge Karen Flowers. “These pills can and do make their way into the illegal distribution stream of narcotics which continue to fuel the opioid epidemic.”
Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877-792-2873).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California and the Drug Enforcement Administration.
KC Woman Sentenced for False Tax Return Related to $466,000 EmbezzlementRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman who embezzled from her family’s company was sentenced in federal court today for failing to pay taxes on at least $466,000.
Tammera Goodman, 56, was sentenced by U.S. District Judge Roseann Ketchmark to two years in federal prison without parole. The court also ordered Goodman to pay $144,631 in restitution to the Internal Revenue Service and the state of Missouri.
On Oct. 16, 2017, Goodman pleaded guilty to making false statements on a tax return.
Goodman worked as office manager for a business owned by her family, Restoration Remediation Resources Corporation d/b/a Rainbow International of Kansas City (Re-Corp). From 2011 to 2015, Goodman unlawfully used Re-Corp funds to pay at least seven personal credit cards, which she used exclusively for personal spending. She also wrote at least 26 fraudulent unauthorized Re-Corp checks to herself, and used unauthorized Re-Corp funds to pay her personal mortgage.
From 2011 to 2015, Goodman embezzled at least $466,274 from Re-Corp. Goodman stole money from re-Corp on hundreds of occasions, according to court documents, and on dozens of occasions forged her brother’s name. She spent the money she embezzled on retail purchases, restaurants, cash, and vehicles, among other items. She did not declare the embezzled income on her federal or state income tax returns. Re-Corp did not want to prosecute her for her embezzlement and allowed her to continue to work at the company.
Goodman pleaded guilty to a specific charge of claiming $33,164 in income on her federal income tax return for tax year 2015. In reality, Goodman’s income for 2015 (including stolen money) was $151,236.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue Criminal Investigation Bureau.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Shane E. Jones, 31, was sentenced by U.S. District Judge Stephen R. Bough to 15 years and 10 months in federal prison without parole. The court sentenced Jones as an armed career criminal due to his prior felony convictions. The court ordered the federal sentenced be served consecutively to Jones’s sentence in two unrelated state cases.
On Feb. 8, 2018, Jones pleaded guilty to being a felon in possession of a firearm. He was arrested following a traffic stop by Independence, Mo., police officers for having different license plates on the front and rear of his vehicle. Officers found a loaded Hi-Point .380-caliber semi-automatic pistol and a box of ammunition under the front driver’s seat.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jones has 17 adult felony convictions, including five prior felony convictions for sale of a controlled substance. He had been out of prison, and on probation, for approximately four months prior to his arrest.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.