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13 August 2018
Maryland MS-13 Member Ordered to Serve Two Consecutive Life Sentences for Federal Racketeering Conspiracy, Murder, and Other Violent CrimesRead the Press Release
Raul Ernesto Landaverde-Giron, aka “Humilde,” and “Decente,” 28, of Silver Spring, Maryland, was sentenced today by U.S. District Judge Peter J. Messitte to two consecutive sentences of life in prison for conspiracy to participate in a racketeering enterprise in connection with his gang activity as a member of La Mara Salvatrucha, or MS-13, and other violent crimes, namely murder in aid of racketeering; conspiracy to commit murder in aid of racketeering; using, carrying and discharging a firearm during a crime of violence; and murder resulting from the use, carrying and discharging of a firearm during a crime of violence. A federal jury convicted Landaverde-Giron of those charges on March 14, after a three-week trial.
The conviction was announced by Attorney General Jeff Sessions; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur for the District of Maryland; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Captain Amal Awad, Interim Chief of the Hyattsville City Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Evidence presented at trial showed that branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. Landaverde-Giron was a member of the MS-13 Normandie Locos Salvatrucha Clique.
According to evidence presented at the trial, from at least 2012 through at least 2016, MS-13 members planned and committed numerous crimes, including murders and attempted murders in Prince George’s County and Frederick County. Gang members also extorted owners of illegal businesses, among other crimes. Witnesses testified that MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Serious violations of MS-13 rules, such as cooperating with law enforcement, could result in the issuance of a “greenlight,” or order to be killed. Participation in violent acts directed at rival gangs, or as directed by gang leadership, increased the respect accorded to that member.
Trial evidence showed that on Nov. 30, 2013, Landaverde-Giron, along with two other Normandie Clique members, murdered an individual in Frederick, Maryland, who had fled El Salvador to escape a greenlight imposed by MS-13 members in El Salvador. After a co-conspirator recognized the victim in Frederick, Normandie Clique members called an MS-13 leader in prison in El Salvador to confirm the greenlight was still in effect. A co-conspirator then lured the victim to a wooded area in Frederick, where he shot the victim in the head and Landaverde-Giron and another co-conspirator stabbed the victim in the face and neck. Landaverde-Giron was promoted within the Normandie Clique for his participation in this murder.
Landaverde-Giron pleaded guilty today to illegally reentering the United States after having been deported, and was sentenced to six months in prison. Landaverde-Giron has been detained since his arrest.
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.
The investigation was conducted by HSI Baltimore, Frederick Police Department, Prince George’s County Police Department, Hyattsville City Police Department, and Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office. The case was prosecuted by Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland.
Manhattan U.S. Attorney Announces Criminal Charges Against Zürcher Kantonalbank of Switzerland, with Deferred Prosecution Agreement Requiring Payment of $98.5 Million, as Well as Guilty Pleas of Two Zürcher Kantonalbank BankersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, and Don Fort, Chief, Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced the filing of criminal charges against ZÜRCHER KANTONALBANK (“ZKB”), a financial institution headquartered in Zurich, Switzerland. ZKB is charged with conspiring to help U.S. taxpayer-clients evade their U.S. tax obligations, file false federal tax returns, and otherwise hide hundreds of millions of dollars in offshore bank accounts held at ZKB.
Mr. Berman also announced a deferred prosecution agreement with ZKB (the “Agreement”), under which ZKB admitted to its unlawful conduct in assisting U.S. taxpayer-clients in violating their legal duties. The admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires ZKB to pay a total of $98.5 million. The $98.5 million figure reflects, in part, a credit given to ZKB because of its cooperation in this case. However, the amount of ZKB’s cooperation credit was reduced by the Government due to ZKB’s actions, as described in the Statement of Facts, in dissuading two indicted ZKB bankers from cooperating with U.S. authorities for years after their indictment. Those indicted bankers, STEPHAN FELLMANN and CHRISTOF REIST, also pled guilty today.
The criminal charge against ZKB is contained in an Information (the “Information”) alleging one count of conspiracy to willfully and knowingly (1) defraud the IRS, (2) file false federal income tax returns, and (3) evade federal income taxes. If ZKB abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charges.
ZKB has also agreed to provide ongoing assistance to the Department of Justice, including providing detailed information about accounts in which U.S. taxpayers have a direct or indirect interest, including detailed information as to other banks that transferred funds into those accounts or that accepted funds when the ZKB accounts were closed. In addition, ZKB has agreed to cooperate with prosecutors in making treaty requests to Switzerland or other countries for account information.
Manhattan U.S. Attorney Geoffrey S. Berman said: “ZKB and two of its bankers have admitted to conspiring to assist U.S. taxpayers in evading their tax obligations. The bank enabled taxpayers to hide accounts from the IRS and actively sought to win the business of Americans looking to evade taxes. After doing so, ZKB dissuaded the two bankers from cooperating with U.S. authorities, which has today resulted in a reduction in the bank’s cooperation credit. The substantial financial penalties imposed on the bank, and the two bankers’ pleas, should make clear that helping U.S. taxpayers to be tax evaders will not be tolerated.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “ZKB and the other defendants in this case knew that U.S. taxpayers were maintaining undisclosed ‘black money’ accounts at ZKB in order to avoid their tax obligations and did nothing to prevent it. Today’s agreement and guilty pleas send a clear message that this type of conduct will not be tolerated. The Department will continue to work with our partners at IRS-CI to prosecute financial institutions and individuals that conspire to defraud the United States.”
IRS-CI Chief Don Fort said: “Today’s resolution with ZKB and the guilty pleas of two bank employees send a strong message of enforcement and commitment to the international banking community as well as U.S. taxpayers. When individuals and entities hide behind shell corporations and anonymous bank accounts, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”
According to the Information, statements made during the proceedings today, and other documents filed in Manhattan federal court, including the Statement of Facts to the Agreement:
The Offense Conduct
From at least in or about 2002 through in or about 2009, ZKB helped certain U.S. taxpayers with accounts at ZKB evade their U.S. tax obligations, file false federal tax returns with the IRS, and otherwise hide accounts held at ZKB from the IRS (hereinafter, “undeclared accounts”). ZKB did so by opening and maintaining undeclared accounts for U.S. taxpayers at ZKB, and by allowing third-party asset managers to open undeclared accounts for U.S. taxpayers at ZKB. ZKB held approximately 2,000 undeclared accounts on behalf of U.S. taxpayer-clients, who collectively evaded over $39 million in U.S. taxes, between 2002 and 2013.
In furtherance of a scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, ZKB undertook, among other actions, the following:
- ZKB entered into approximately 349 “code word agreements” with U.S. taxpayer-clients under which the bank agreed not to identify the U.S. taxpayers by name on bank documents, but rather to identify the U.S. taxpayers by code name, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers. ZKB understood that a primary reason why U.S. taxpayers sought these “code word” accounts was to evade detection by U.S. tax authorities.
- ZKB opened and maintained accounts for many U.S. taxpayer-clients held in the name of non-U.S. corporations, foundations, trusts, or other legal entities (collectively, “structures”), thereby helping those U.S. taxpayers conceal their beneficial ownership of the accounts. Some of the structures had no business purpose (“sham structures”), but rather, existed solely for the purpose of helping ZKB’s U.S. taxpayer-clients hide their offshore assets.
- ZKB agreed to hold bank statements and other mail relating to approximately 750 accounts of U.S. domiciled taxpayer-clients at ZKB’s offices in Switzerland, rather than send them to U.S. taxpayer-clients in the United States, which helped ensure that documents reflecting the existence of the accounts remained outside the United States and beyond the reach of U.S. tax authorities.
- ZKB solicited new business through the website www.swiss-bank-accounts.com, which was operated by a third party, and which resulted in the opening of accounts at ZKB for U.S. taxpayer-clients whose accounts were undeclared.
ZKB knew that certain U.S. taxpayer-clients were maintaining undeclared accounts at ZKB in order to evade their U.S. tax obligations, in violation of U.S. law. ZKB understood the legal prohibitions regarding tax evasion to be distinct from ZKB’s obligations under its Qualified Intermediary Agreement. Certain ZKB bankers commonly used the term “Schwarzgeld” – German for “black money” – internally to refer to undeclared accounts, including those held by U.S. citizens. Until the middle of 2008, ZKB did not prevent any U.S. persons from opening an account if they refused to fill out a Form W-9, even though ZKB knew that such accounts were, or were highly likely to be, undeclared. Indeed, in May 2006, internal ZKB documents explicitly discussed the profitability of “[n]on-disclosed U.S. persons.”
At its high-water mark in 2008, ZKB had approximately $794 million in assets under management relating to undeclared accounts held by U.S. taxpayer-clients. From 2002 through 2013, ZKB earned approximately $21 million in profits on approximately $24 million gross revenues from its undeclared U.S. taxpayer accounts, including accounts held through structures.
In early 2008, U.S. enforcement actions against the Swiss banking institution UBS became public. In or about July 2008, UBS announced that it would cease providing cross-border private banking services to U.S.-domiciled clients. Rather than immediately closing down its own U.S. taxpayer undeclared accounts as a result of the UBS investigation, ZKB, through its external asset manager (“EAM”) desk, instead treated UBS’s decision to stop accepting U.S. taxpayer-clients as a business opportunity, and actively sought to increase its U.S. taxpayer-client base. ZKB gained many U.S. taxpayer-clients through EAMs working with the bank.
However, in 2008 and 2009, at the same time as ZKB’s EAM Desk proactively sought to increase its U.S. taxpayer-client base, ZKB also began implementing a number of measures that gradually limited securities accounts held by U.S. taxpayer-clients. At first the restrictions applied only to former UBS clients, but ZKB expanded its restrictions over time. By June of 2009, ZKB decided to close its business with all U.S. domiciled clients holding securities accounts, and in 2011, ZKB decided to exit its business with all remaining U.S.-domiciled customers. By 2012, ZKB had closed virtually all accounts held by U.S. domiciled taxpayers, and for those U.S. clients domiciled outside of the U.S., ZKB sought a Form W-9 and proof of U.S. tax compliance. ZKB has now terminated all U.S. cross-border business.
Indictment of ZKB Employees and ZKB’s Response to the Indictment
Despite ZKB’s cooperation with the Government in this case, the Government views the actions of ZKB with respect to indicted bankers FELLMANN and REIST, described in the Statement of Facts, as inconsistent with a policy of full cooperation. Those actions, accordingly, have reduced the amount of cooperation credit afforded by the Government to ZKB.
In December 2012, three ZKB bankers – FELLMANN, REIST, and Otto Hüppi – were charged in the Southern District of New York with conspiracy to defraud the United States and the IRS for their role in ZKB’s offense. Although ZKB retained independent U.S. counsel for the bankers, beginning in 2013 and continuing through 2015, ZKB’s in-house counsel and, at times, ZKB employees from the Human Resources department and other departments, regularly met with FELLMANN and REIST. At those meetings, which were not attended by FELLMANN and REIST’s independent U.S. counsel, ZKB, among other things, made statements that caused FELLMANN and REIST to feel dissuaded from reaching out to the U.S. Attorney’s Office in order to explore the possibility of cooperating. In addition, ZKB’s in-house counsel suggested to FELLMANN that he did not have any information of value to contribute to the U.S. Attorney’s Office’s ongoing investigation. Furthermore, based on conversations with ZKB, FELLMANN and REIST felt that their continued employment at ZKB and ZKB’s ongoing payment of their legal fees would be threatened should they take steps that were viewed by ZKB as inconsistent with the bank’s own interests. Due in part to these discussions with ZKB, FELLMANN and REIST did not seek to cooperate with the investigation until the summer of 2015, approximately two and a half years after being indicted.
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FELLMANN, 53, a Swiss citizen, and REIST, 60, a Swiss citizen, each pled guilty to one count of conspiracy to willfully fail to file returns, supply information, or pay tax. FELLMANN and REIST each face a maximum sentence of one year in prison. The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentences imposed on the defendants will be determined by the judge.
FELLMANN and REIST are each scheduled to be sentenced before U.S. District Judge J. Paul Oetken on November 30, 2018.
Hüppi remains a fugitive.
Mr. Berman praised the outstanding investigative work of IRS-CI, and thanked the Justice Department’s Tax Division for its assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul, Noah Solowiejczyk, and Andrew D. Beaty are in charge of the prosecution.
- ZKB entered into approximately 349 “code word agreements” with U.S. taxpayer-clients under which the bank agreed not to identify the U.S. taxpayers by name on bank documents, but rather to identify the U.S. taxpayers by code name, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers. ZKB understood that a primary reason why U.S. taxpayers sought these “code word” accounts was to evade detection by U.S. tax authorities.
Manchester Resident Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Debra Kerouac, 28, of Manchester, New Hampshire, pleaded guilty to one count of producing child pornography.
A sentencing hearing is scheduled for November 20, 2018. Under the terms of a plea agreement, which is subject to review and approval by the court, Kerouac will serve 25 years in prison and remain under supervised release for 20 years after she is released from prison.
According to documents filed in the case and statements made at the change of plea hearing, sometime before May 24, 2017, Kerouac produced visual depictions of a minor female engaging in sexually explicit conduct. Kerouac used a cellular phone to produce the images. Kerouac’s activities were discovered based on a lead from a case investigated by the FBI in Duluth, Minnesota. A Duluth FBI agent notified the Bedford office of the FBI and an arrest warrant and search warrant were executed on May 24, 2017 in Manchester.
“Few crimes are as reprehensible as the sexual exploitation of a child,” said U.S. Attorney Murray. “The impact of such acts on the child, family members, and those close to them may be severe and long-lasting. The U.S. Attorney’s Office is committed to protecting our children and making our community safer by prosecuting those who produce child pornography.”
“The production of child pornography is an assault against the most vulnerable members of our society, and with today's plea, Ms. Kerouac is accepting responsibility for preying on and exploiting her young victim,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI is committed to working with our law enforcement partners to identify and apprehend predators like her who carry out these heinous crimes.”
The FBI and the Manchester Police Department participated in the investigation of this case. Staff from the Hillsborough County Child Advocacy Center assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon prosecuted the case.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Man Sentenced to Federal Prison for Concealing Assets During His BankruptcyRead the Press Release
MISSOULA - Randall Alan Franz, a 59-year-old resident of Sandpoint, Idaho, was sentenced on Thursday to 8 months in prison followed by three years of supervised release, and ordered to pay $205,084.79 in restitution after pleading guilty to concealing assets in bankruptcy. Chief U.S. District Judge Dana Christensen announced the sentence.
Franz’s mother passed away in 2009. Franz was appointed as personal representative of her estate in October, 2010, a responsibility he held until he was removed in September of 2015. Franz was to split his mother’s estate, ultimately valued at almost $600,000, equally between himself and his two brothers. While one brother received approximately $120,000, Franz made no distribution to his other brother.
In the meantime, Franz filed a chapter 11 bankruptcy in July 2010, which was converted to a chapter 7 bankruptcy in January 2013. During his bankruptcy, Franz liquidated assets from his mother’s estate and hid his share of the proceeds from his Chapter 7 Trustee. Though Franz withdrew more than $270,000 of probate estate funds between April and October of 2013, Franz’s bankruptcy trustee received none of it. Based on this deception, the United States Bankruptcy Court revoked Franz’s discharge on November 5, 2015, and Franz was referred for criminal prosecution.
“The bankruptcy system is an important safety net for all Americans. People like the defendant who misuse it for their own personal gain threaten its integrity and will be prosecuted, ” said Kurt Alme, U.S. Attorney for the District of Montana.
The case was prosecuted by Assistant United States Attorneys Chad C. Spraker and Keith A. Jones, and investigated by the Federal Bureau of Investigation and the United States Trustee’s Office.
Lower Brule Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Thaddeus James Grant, age 26, was indicted on July 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 10, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 4, 2018, Grant assaulted a female victim and said assault resulted in serious bodily injury.
The charge is merely an accusation and Grant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Grant was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Laveen Man Sentenced to 30 Months in Prison for Strangling GirlfriendRead the Press Release
PHOENIX – Today, Colin Lee Juan, 33, of Laveen, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 30 months in prison followed by three years of supervised release. Juan had previously pleaded guilty to assault by strangulation of an intimate partner.
Juan admitted to strangling the victim, his then-girlfriend, impeding her airflow. The incident occurred on the Gila River Indian Community, and both Juan and the victim are members of that tribe.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-1134-PHX-DJH
RELEASE NUMBER: 2018-106_Juan
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Kansas Man Sentenced for Federal Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Kansas man who was caught with crystal methamphetamine and a firearm in Hurricane in November of 2017 was sentenced today to 132 months, or 11 years, in federal prison, announced United States Attorney Mike Stuart. Bunthia Can Thach, 39, previously pled guilty to possession with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. U.S. Attorney Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hurricane Police Department.
“Patrolling our highways is inherently dangerous, because law enforcement officers never know what they are going to face when they approach a car,” said United States Attorney Mike Stuart. “I’m so grateful for the brave men and women that do this work. They take dangerous drug dealers like Thach off our streets.”
Around midnight on November 10, 2017, an officer with the Hurricane Police Department observed a vehicle parked just off the Interstate 64 exit ramp at Hurricane. The officer noted the vehicle had Kansas registration plates, was not running, and approached the vehicle to see if it contained a stranded motorist. The officer located Thach and another individual in vehicle. The officer also observed that Thach was wearing a gun holster and saw a loose bullet in the floorboard of the vehicle. Thach subsequently told the officer he hid a handgun under the passenger seat when the officer was approaching the vehicle. Officers then recovered a loaded Glock .45 caliber handgun with a 30-round extended magazine from under the seat. Officers also located approximately 54 grams of methamphetamine from a bag in the rear of vehicle.
Thach admitted that he traveled from Kansas to purchase a large quantity of marijuana which he was going to transport to North Carolina. Thach further admitted that he intended to sell the methamphetamine and that he brought the handgun from Kansas for protection during the trip. Officers also discovered that Thach had previously been convicted of multiple felony offenses and was prohibited from possessing a firearm.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Kansas City, Kan., Man Pleads Guilty to Meth TraffickingRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man pleaded guilty Monday and admitted he was arrested with almost 1.5 pounds of methamphetamine found in both his car and residence, U.S. Attorney Stephen McAllister said.
Edgar Martinez-Quintana, 36, Kansas City, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted the Kansas City Kan., Police Department stopped his car on Aug. 25, 2017. They found methamphetamine hidden in a roof console and more than $1,900 in cash. A later search of Martinez-Quintana’s residence by officers uncovered more methamphetamine.
Sentencing is set for Oct. 29. Both parties have agreed to recommend 10 years in federal prison. McAllister commended the Kansas City, Kan., Police Department, the Drug Enforcement Administration and Assistant U.S. Attorney Jared Maag for their work on the case.
Justice Department Settles Race Discrimination Lawsuit Against Mississippi Delta Community CollegeRead the Press Release
The Justice Department today announced that it has reached a settlement with Mississippi Delta Community College (MDCC) to resolve allegations that MDCC discriminated against Pamela Venton on the basis of race in violation of Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin, and religion.
According to the United States’ complaint, filed today in the United States District Court for the Northern District of Mississippi, MDCC did not have a legitimate, nondiscriminatory reason for paying Pamela Venton, who is black, a significantly lower annual salary than four of her white coworkers working in the same position with the same duties and responsibilities. Ms. Venton complained internally about the wage disparities and, while MDCC agreed to adjust her salary beginning with the next academic school year, it did not compensate Ms. Venton for her lost wages.
“This settlement agreement reflects the Civil Rights Division’s continued commitment to vigorous enforcement of Title VII’s prohibition against race-based pay decisions,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
Under the terms of the settlement agreement, MDCC has agreed to pay $75,000 in back pay and compensatory damages to Ms. Venton. In addition, MDCC has agreed to implement appropriate training on identifying and correcting unlawful wage discrimination.
Ms. Venton originally filed a charge of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Jackson, Mississippi, office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States is represented in this case by Trial Attorney Torie Atkinson of the Civil Rights Division’s Employment Litigation Section.
More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at http://www.justice.gov/crt.
Justice Department Secures the Denaturalization of Individual Convicted of Sexual Abuse by a Substitute Parent/CustodianRead the Press Release
RALEIGH – United States Attorney Robert, J. Higdon, Jr., the U.S. Department of Justice, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS) jointly announced that on August 8, 2018, Chief Judge James C. Dever III of the U.S. District Court for the Eastern District of North Carolina entered an order that revoked the naturalized U.S. citizenship of a child sex offender, restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities. The court found that prior to naturalizing, Agyemang engaged in sexual abuse of his minor stepchild, for which he was later convicted after pleading guilty. This prior conduct rendered Agyemang ineligible U.S. citizenship because he did not show the moral conduct necessary for naturalization. Additionally, throughout his naturalization proceedings Agyemang misrepresented and hid his unlawful activity.
Mr. Higdon commented: “Under our laws, United States citizenship is conferred on those who demonstrate honesty and integrity, who respect our laws, and who can demonstrate the moral character necessary to be a positive and cultivating member of American society. The defendant fell short of that mark in every regard and we are satisfied that this Court saw fit to revoke his naturalized citizenship. As part of the Justice Department’s mission to enforce the nation’s immigration laws, we will seek denaturalizations in cases where individuals are dishonest and where criminal activity demonstrated the lack of moral character necessary for American citizenship.”
“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications or lie during the naturalization interview, especially in a circumstance like this one, which involved an alien who repeatedly sexually abused the minor victim on almost a daily basis.”
Prempeh Ernest Agyemang, a native of Ghana, was admitted to the United States in 1989. Agyemang then married a United States citizen who had a young child. When the child was in fourth grade, Agyemang began sexually abusing her starting in late 1999 or early 2000. Notably, after the sexual abuse began, while under oath during his naturalization interview, Agyemang stated that he had never committed a crime or offense for which he was not arrested. Relying on this answer, USCIS granted his naturalization application and Agyemang became a U.S. citizen later that year. On November 5, 2003, Mr. Agyemang pleaded guilty to sexually assaulting his minor stepchild on April 1, 2000. Specifically, Mr. Agyemang pleaded guilty to Sexual Activity by a Substitute Parent or Custodian.
“This order sends a clear message to individuals who commit any type of sexual offense, particularly those involving children, during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said Acting ICE Director Ronald D. Vitiello. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for sexual offenses, especially those involving child victims.”
“Mr. Agyemang repeatedly sexually abused a minor child and then lied about the sexual abuse to obtain naturalization," said USCIS Director L. Francis Cissna. "By doing so, he threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see him held accountable and applauds our partners at the Justice Department for helping bring him to justice.”
This case was investigated by ICE Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was litigated by John Inkeles of OIL-DCS, with support from ICE Assistant Chief Counsel Cori White, Gaston County District Attorney Locke Bell, and the United States Attorney’s Office for the Eastern District of North Carolina.
Justice Department Secures Denaturalization of Guardian Convicted of Sexual Abuse of A MinorRead the Press Release
On Aug. 8, Chief Judge James C. Dever III of the U.S. District Court for the Eastern District of North Carolina entered an order that revoked the naturalized U.S. citizenship of a child sex offender; restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship; and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications or lie during the naturalization interview, especially in a circumstance like this one, which involved an alien who repeatedly sexually abused the minor victim on almost a daily basis.”
“Under our laws, United States citizenship is conferred on those who demonstrate honesty and integrity, who respect our laws, and who can demonstrate the moral character necessary to be a positive and cultivating member of American society,” said U.S. Attorney Robert J. Higdon. “The defendant fell short of that mark in every regard and we are satisfied that this Court saw fit to revoke his naturalized citizenship. As part of the Justice Department’s mission to enforce the nation’s immigration laws, we will seek denaturalization in cases where individuals are dishonest and where criminal activity demonstrated the lack of moral character necessary for American citizenship.”
Prempeh Ernest Agyemang, a native of Ghana, was admitted to the United States in 1989. Agyemang then married a United States citizen who had a young child. When the child was in fourth grade, Agyemang began sexually abusing her starting in late 1999 or early 2000. Notably, after the sexual abuse began, while under oath during his naturalization interview, Agyemang stated that he had never committed a crime or offense for which he had not been arrested. Relying on this answer, U.S. Citizenship and Immigration Services (USCIS) granted his naturalization application and Agyemang became a U.S. citizen later that year. On Nov. 5, 2003, Mr. Agyemang pleaded guilty to sexually assaulting his minor stepchild on April 1, 2000. Specifically, Agyemang pleaded guilty to sexual activity by a Substitute Parent or Custodian.
“This order sends a clear message to individuals who commit any type of sexual offense, particularly those involving children, during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said U.S. Immigration and Customs Enforcement (ICE) Acting Director Ronald D. Vitiello. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for sexual offenses, especially those involving child victims.”
"Mr. Agyemang repeatedly sexually abused a minor child and then lied about the sexual abuse to obtain naturalization," said USCIS Director L. Francis Cissna. "By doing so, he threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see him held accountable and applauds our partners at the Justice Department for helping bring him to justice.”
This case was investigated by ICE Homeland Security Investigations and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was litigated by John Inkeles of OIL-DCS, with support from ICE Assistant Chief Counsel Cori White, Gaston County District Attorney Locke Bell, and the United States Attorney’s Office for the Eastern District of North Carolina.
Justice Department Reaches Settlement Agreement with Native American Community Health Center Resolving the USERRA Claims of United States Navy ReservistRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Native American Community Health Center (Native Health), a private corporation located in Phoenix, Arizona. The settlement agreement resolves allegations that Native Health violated the employment rights of Commander Mario L. Islas, a Navy Reservist, under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). USERRA safeguards the rights of uniformed servicemembers, including Reservists, to all benefits of employment following periods of absence due to military service obligations.
Commander Islas was a Family Practice Physician for Native Health before being promoted to Medical Director in September 2014. According to the complaint that Commander Islas filed with the Department of Labor (DOL), his military service and status as a Navy Reservist were motivating factors in Native Health’s decision not to renew his employment contract in 2016. The DOL complaint alleged that on Oct. 30, 2015, Commander Islas notified Native Health that he would be attending pre-mobilization training in December 2015 and January 2016; would be deployed overseas starting in March 2016; and would return to his position as Medical Director in early 2017. In a letter dated Jan. 25, 2016, Native Health notified Commander Islas that it would not be renewing his employment contract.
Under the terms of the settlement, Native Health has agreed to pay Commander Islas $25,000 in monetary relief for lost wages and benefits. In addition, Native Health will provide training on servicemembers’ rights to its managers, supervisors and administrative staff, and will review and revise, if necessary, its employee handbook to ensure that current and future employees are aware of their USERRA rights.
“Members of our Navy Reserve, like Commander Islas, make many sacrifices in defense of our country, including spending months or years away from their jobs and families,” said Acting Assistant Attorney General John Gore. “The Department of Justice is committed to ensuring that our servicemembers’ employment rights are protected while they are away defending our country.”
Commander Islas initially filed his complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS), which investigated the matter and attempted to reach a resolution between the parties. VETS referred the complaint to the Justice Department’s Civil Rights Division, Employment Litigation Section, after resolution efforts failed.
The Justice Department’s Civil Rights Division gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s website at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Jury convicts cybercriminal for hacking universitiesRead the Press Release
ATLANTA – Olayinka Olaniyi, a citizen of Nigeria, was convicted by a federal jury on August 9, 2018, after a three-day trial, on charges of conspiracy to commit wire fraud, computer fraud and aggravated identity theft. Co-defendant, Damilola Solomon Ibiwoye, pleaded guilty to similar charges and was sentenced on January 31, 2018.
“These defendants used trickery to lure and exploit their unsuspecting victims, but they will now face the consequences of their scheme in federal prison,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for the collaborative work by our national and international law enforcement partners in this case, and we will continue to vigorously prosecute cybercriminals who hide behind the anonymity of the internet to commit these types of crimes.”
“The FBI is determined to arrest criminals who believe they can hide out on the internet, protected by geographic boundaries, and prey on the American people and our institutions,” said J. C. “Chris” Hacker, Special Agent in Charge of the FBI Atlanta Division. “This case clearly shows the benefits of global cooperation between the United States and international law enforcement.”
“We were proud to support our federal partners in bringing down this criminal enterprise,” said Georgia Attorney General Chris Carr. “We will remain vigilant in investigating and prosecuting all who attempt to defraud honest, hard-working Georgians.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Olaniyi and Ibiwoye were behind several “phishing scams” that targeted colleges and universities in the United States, including the Georgia Institute of Technology (“Georgia Tech”) and the University of Virginia. While both are Nigerian citizens, they committed their crimes while living in Kuala Lumpur, Malaysia, and were extradited to the United States to face these charges.
A “phishing scam” is the act of sending fraudulent emails that appear to come from legitimate enterprises for the purpose of tricking the recipients into providing personal information, including usernames and passwords. Olaniyi and Ibiwoye directed phishing emails to college and university employees. Once they had possession of employee logins and passwords, they were able to steal payroll deposits by changing the bank account into which the payroll was deposited. Also, while logged into the university system through the stolen logins and passwords, these defendants were able to gain access to employee W2 forms, which they used to file fraudulent tax returns. The attempted theft was over $6 million.
The stolen funds were routed into U.S. bank accounts, and the evidence showed that access to these bank accounts was acquired through the use of romance scams, where fraudsters pose on dating sites and apps as potential partners to gain the trust of their victim. At some point, the fraudster will make a request to deposit money into their victim’s account and claim to need all of the account information, including their account number, routing number, passwords, and answers to security questions. In this case, all of that information was then used to funnel the proceeds of theft through those accounts and out of the country.
Olayinka Olaniyi, 34, of Nigeria is scheduled to be sentenced on October 22, 2018, at 10:00 a.m., before U.S. District Judge Steve C. Jones.
Damilola Solomon Ibiwoye, 29, of Nigeria was sentenced to three years, three months in prison to be followed by three years of supervised release on January 31, 2018.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey A. Brown, Deputy Chief of the Complex Frauds Section, and Special Assistant U.S. Attorney Laura D. Pfister prosecuted the case.
Joplin Woman Sentenced for Meth Conspiracy, Package Shipped via UPSRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine that was shipped via UPS from Arizona.
Jennifer M. Conant, 38, of Joplin, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole.
On March 28, 2018, Conant pleaded guilty to participating in a conspiracy to distribute methamphetamine. Conant admitted that she had a package shipped via UPS, which contained approximately one pound of methamphetamine, to a residence in Seneca, Mo. On May 6, 2017, law enforcement officers tracked the suspicious package from its origin in Arizona and upon its arrival at the Joplin UPS conducted a search to confirm the package contained methamphetamine.
A federal agent conducted a controlled delivery of the package to its Seneca destination on May 7, 2017. Shortly after the package was delivered, officers executed a search warrant and located the package in a bedroom of the residence. An occupant of the residence told investigators that Conant had the package shipped to his address and that she had inquired about the package just prior to law enforcement executing the search warrant. He then contacted Conant, who arrived at the residence approximately 45 minutes later to pick up the package and was arrested.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Newton County, Mo., Sheriff’s Department and the Ozark Drug Enforcement Team.
Jefferson County, Ohio man sentenced for counterfeit chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Travis Knight, of Mingo Junction, Ohio, was sentenced today to 37 months incarceration for counterfeit currency charges, United States Attorney Bill Powell announced.
Knight, age 33, pled guilty to one count of “Uttering Counterfeit Currency,” and one count of “Attempted Uttering of Counterfeit Currency” in April 2018. Knight admitted to passing counterfeit $50 bills and attempting to pass counterfeit $50 bills in Marion and Monongalia Counties in October and November 2017.
Knight was also ordered to pay $12,450 in restitution for the crimes.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Secret Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.Jamaican Woman Sentenced for Lottery Scam Targeting Elderly VictimsRead the Press Release
ALEXANDRIA, Va. – A Jamaican citizen was sentenced today to six years in prison for orchestrating a lottery fraud that scammed elderly victims out of approximately $385,000.
“The financial and emotional harm these scams cause elderly victims and their family members can be devastating,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This office will continue to aggressively prosecute crimes involving elder fraud, and we are firmly committed to bringing the offenders to justice, no matter where they reside.”
According to court documents, Tessicar Karelle Jumpp, 34, conspired with several of her family members and associates to scam elderly victims out of their savings. From her home in Jamaica, Jumpp contacted victims in the United States and used an alias to pretend to be a representative of Publishers Clearing House. Jumpp falsely informed her victims that they had won a lottery prize of millions of dollars, but that in order to collect their winnings, they would need to pay taxes and advance fees. Jumpp then instructed her victims to send funds through wire transfers and in packages of cash mailed to her co-conspirators in the United States. Those co-conspirators would keep a portion of the funds and then send the remainder to Jumpp and others in Jamaica. Jumpp’s victims included an 85-year-old woman from Great Falls who was scammed out of over $335,000, and an 85-year-old Massachusetts man who was defrauded out of almost $50,000.
“The U.S. Postal Inspection Service is grateful for the strong working relationships that led to the successful resolution of this case,” said Eric Shen, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “Postal Inspectors will continue to work together with our other federal law enforcement partners to ensure that criminals who target elderly and vulnerable victims in the United States cannot hide behind international borders.”
Earlier this year, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
“This case is an excellent example of the interagency cooperation required to dismantle an international scheme designed to target elderly U.S. citizens,” said Brian A. Michael, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark Field Office. “HSI’s financial expertise coupled with our international footprint demonstrates even those criminals operating outside of the United States will be pursued vigorously.”
“This investigation exemplifies the positive outcomes that the FBI and our partner law enforcement agencies are bringing about in a continued effort to protect all American citizens, but particularly our senior citizens, from scams,” said Matthew J. DeSarno, Special Agent in Charge of the Criminal Division, FBI Washington Field Office. “In addition to the Special Agents, Intelligence Analysts, and Inspectors, I want to thank our foreign partners in Jamaica for their coordination, which led to today’s sentencing.”
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, Eric Shen, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Brian A. Michael, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Samantha Bateman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-416.
Inmate Sentenced for Mailing Threats, Powder to Federal OfficialsRead the Press Release
CINCINNATI – Rodney D. Cydrus, 48, formerly of Chillicothe, was sentenced in U.S. District Court to 36 months in federal prison for mailing threatening letters to federal officials. Cydrus was an inmate at Lebanon Correctional Institution at the time of the offense.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Michael R. Barrett.
According to court documents, on five separate occasions in January 2017, Cydrus mailed letters threatening to injure numerous government officials, including the President of the United States, federal judges, the FBI and the Federal Public Defender’s Office. Four of the letters were addressed to the FBI and one letter was addressed to the Federal Public Defender’s Office.
For example, one letter to the FBI states “You are one dead motherfucker…As soon as I get out I’m going to get everybody I can in your office…Die Die Die…I promise my word I’ll get at least 30 of you before you kill me.” Cydrus further stated he wanted to “go out with a bang” by killing or kidnapping a federal agent.
As part of the threats, Cydrus included a powdered substance (namely his own medication) in the at least one letter.
“Cydrus caused a HAZMAT team to respond twice, requiring the employees who opened the letters to be quarantined,” U.S. Attorney Glassman said. “The federal officials whom Cydrus targeted have hard enough jobs as it is. Disrupting operations and creating an atmosphere of fear is a serious offense, and it’s important to deter this kind of intimidation campaign.”
Cydrus was indicted by a federal grand jury in February 2017 and pleaded guilty on January 18 to one count of mailing threatening communications.
U.S. Attorney Glassman commended the investigation of this case by the FBI and U.S. Secret Service, as well as Assistant United States Attorney Timothy S. Mangan, who represented the United States in the case.
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Illegal Alien Pleads Guilty to Unlawful Re-entry After RemovalRead the Press Release
Gulfport, Miss. – Joaquin Luna-Cijeros, age 27, a citizen of Mexico, pleaded guilty today before U.S. District Judge Sul Ozerden, to the crime of unlawful re-entry by an alien after removal, announced U.S. Attorney Mike Hurst, and Jere T. Miles, Special Agent in Charge of Homeland Security Investigations in New Orleans.
In May, 2018, a Homeland Security Investigations (HSI) confidential informant identified Luna-Cijeros as an alien who was illegally present in the United States and who had been previously removed. The confidential informant told officials that Luna-Cijeros was working as a kitchen worker at Juan Tequila’s Restaurant in Saucier, Mississippi. Based on this information, HSI began an investigation which revealed that Luna-Cijeros was living in Long Beach, Mississippi, and working in Saucier.
Immigration databases revealed that on or about February 3, 2015, the U.S. Border Patrol had encountered, apprehended, and processed Luna-Cijeros for removal near Rio Grande Valley, Texas. Luna-Cijeros was lawfully ordered removed and, on or about February 4, 2015, Luna-Cijeros was verified by federal officials as having been physically removed from the United States pursuant to his removal order. At that time, he was given notice that he could not lawfully re-enter the United States for a minimum of five years, and that an unlawful re-entry could subject him to criminal prosecution.
Luna-Cijeros will be sentenced by Judge Ozerden on November 13, 2018. He faces a maximum penalty of 2 years in prison and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
The case was investigated by Homeland Security Investigations and U.S. Customs & Border Protection. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Idaho Man in Custody on Terrorism Charges Sentenced to an Additional 20 Years for Attacking Federal Prison WardenRead the Press Release
LOS ANGELES – A man who was already serving a 25-year sentence for providing material support to a foreign terrorist organization was sentenced today to serve an additional 20-year prison term for trying to kill the warden of the federal prison where he was housed.
Fazliddin Kurbanov, 36, was sentenced today by United States District Judge Virginia A. Phillips.
Kurbanov pleaded guilty on March 13 to one count of attempted murder of a federal officer. As part of his plea, Kurbanov admitted making and using a prison-made knife to attack the warden at the Federal Correctional Institute-II in Victorville on May 31, 2016, and attempting to slit his throat. The warden suffered serious injuries in the attack but has since recovered and now serves at another United States Bureau of Prisons facility.
At today’s hearing, Kurbanov, speaking through an interpreter, told the court he was not sorry for his actions and that the victim was supposed to die. Kurbanov also expressed extreme animosity toward the United States.
In handing down the maximum possible sentence for the attempted murder offense, Judge Phillips noted the impact to the victim and his family, and she concluded Kurbanov remains an extreme danger. Judge Phillips ordered that today’s 20-year sentence run consecutively to the 25-year sentence imposed in the previous case and that he be on lifetime supervised release once he completes the prison terms.
The investigation into the attack on the warden was conducted by the Federal Bureau of Investigation.
This case is being prosecuted by the National Security Division of the United States Attorney’s Office.
Grand Rapids Man Sentenced for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Byerly Birge announced today that Kahwahnas Nucumbhi Potts, age 39, of Grand Rapids, Michigan, was sentenced in U.S. District Court to 9 years’ imprisonment for his aggravated identity theft and credit card fraud. The court also ordered Potts to pay restitution to the victims of his offense in the amount of $17,955.50. In sentencing Potts, U.S. District Judge Janet T. Neff remarked that Potts’ brazen conduct "was among the most serious stolen mail conduct she has seen in eleven years, but that his act of breaking into the home of one of his victims and then impersonating that victim while talking to his credit card company was outrageous." The judge also noted that Potts previously appeared before her on federal charges of identity theft and that she sentenced Potts to two years’ imprisonment for his prior offense.
From at least March 2015, until April 2016, Potts stole mail belonging to West Michigan residents from their mailboxes. In December 2015, Potts stole a credit card after breaking into the home of a victim in Grand Rapids who was vacationing out of state. Potts used the means of identification of the victim and pretended to be the victim when calling the credit card company from the victim’s home phone to activate the card. Potts used that credit card without authorization to withdraw over $16,000.00 at automated teller machines (ATM) in December 2015 and January 2016. Potts disguised himself with a mask, a stolen license plate on his vehicle, and gloves, when making the ATM withdrawals. Potts again used the means of identification of the victim and pretended to be the victim on several occasions to persuade the credit card company to remove a block on the credit card when it suspected fraudulent activity.
Using the means of identification of many other individuals obtained from the stolen mail, Potts applied for and obtained credit cards in their names. Potts completed credit card applications over the internet and used the names, dates of birth and social security account numbers of such individuals to make it appear to the credit card companies that he truly was those individuals. In an effort to avoid detection, Potts accessed the wireless internet service of an area business to apply for the credit cards using his cellular phone and directed the credit card companies to mail the credit cards to a fictitious address that he created on Division Avenue in Grand Rapids.
"Today, Mr. Potts learned what it means when I say my office will not tolerate anyone stealing the identity of a resident of this district," commented U.S. Attorney Birge. "The significant sentence handed down by the court justifiably recognizes that identity theft is a serious crime with real consequences and that those consequences are even more significant for a repeat offender who commits this crime after breaking into the victim’s home."
The Grand Rapids Office of the U.S. Postal Inspection Service, in conjunction with the Grand Rapids Police Department Metropolitan Fraud and Identity Theft Team, conducted the investigation of the case. Assistant U.S. Attorney Ronald M. Stella prosecuted the case.
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Gilbert Man Sentenced to Seven Years in Prison for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
PHOENIX – On Aug. 10, 2018, Cory Ryan Williams, 40, of Gilbert, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to seven years in prison. A restitution hearing has been scheduled for September, where Williams will be ordered to pay restitution up to $13.5 million. Williams had previously pleaded guilty to one count of transactional money laundering.
For over two years, Williams lied to his family, friends, and fellow church members about the profitability of his investment scheme. He solicited and obtained more than $13 million from over 50 victims. To entice potential victims, Williams told them he consistently earned a five percent return each week and all investments were safe and would not lose money. In reality, he lost more than $8 million by attempting to trade stock market futures. He also concealed his fraudulent scheme by making Ponzi payments to investors - Williams paid earlier investors by using new capital from later investors. He also diverted more than $800,000 of the victims’ funds to his own personal use.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Andrew C. Stone and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01279-PHX-DLR
RELEASE NUMBER: 2018-105_ Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
French National Charged with Parental KidnappingRead the Press Release
BOSTON – A French national who previously resided in East Boston was charged today in federal court in Boston in connection with kidnapping his three-year-old child in violation of court orders.
Malik Benhamza, 33, was charged in a criminal complaint with one count of international parental kidnapping. Benhamza is currently a fugitive and believed to be in Algiers, Algeria.
As alleged in charging documents, on Feb. 2018, Essex County Family and Probate Court granted Jerusha Hall sole legal custody of her and Benhamza’s three-year-old child, and granted Benhamza visitation rights during specific days and times. The judgement also stated that neither parent could travel outside of Massachusetts with the child without written notice/consent to the other parent. On July 1, 2018, Benhamza did not return the child to Hall following a scheduled visit. Hall contacted law enforcement who traced Benhamza’s cell phone the following day to John F. Kennedy International Airport in New York. Law enforcement reviewed records of flights originating from JFK Airport and discovered that on July 1, 2018, Benhamza departed aboard Royal Air Moroc Flight 201 with the child and disembarked in Houari Boumediene Airport in Algiers, Algeria. According to court documents, Hall did not give permission to Benhamza to take the child out of the United States, and has neither seen, nor heard from the child since July 1, 2018.
The charge of international parental kidnapping provides for a sentence of no greater than three years in prison, three years of supervised release and a fine of $250,000. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Salem Police Department provided assistance with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Fourth Defendant Sentenced to 18 Months in Prison for Defrauding Clifton-Based Trucking Company of More Than $900,000Read the Press Release
NEWARK, N.J. – A Clifton, New Jersey, woman was sentenced today to 18 months in prison for her role in a scheme to defraud a New Jersey-based trucking company of more than $900,000, U.S. Attorney Craig Carpenito announced.
Lisa Popewiny, 56, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging her with wire fraud. Brothers Miguel Vidal, Angel D. Vidal, and Angel Gabriel Vidal previously pleaded guilty to wire fraud charges for their roles in the scheme. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in Court:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, and the Vidals, including Miguel Vidal – a former truck driver for the Company – engaged in a scheme to defraud the company of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the fraudulent paychecks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could falsely add them to the payroll. Popewiny input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
In addition to the prison term, Judge Arleo sentenced Popewiny to three years of supervised release and ordered to pay $920,379 in restitution and $735,591 in forfeiture.
U.S. Attorney Carpenito credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Cari Fais, of the Special Prosecution Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Four people indicted for immigration-related offensesRead the Press Release
Four people were indicted for immigration-related offenses.
Anita Marin-Arres, 61, of Mexico, was indicted on charges of making a false statement of citizenship to obtain to fraudulently obtain a valid Ohio driver’s license and fraud and misuse of visas and other documents related to her use of a forged Lawfully Admitted Permanent Resident (LAPR) card to obtain employment.
Misael Vargas-Samano, 34, of Mexico, was indicted on charges of making a false statement of citizenship to obtain employment and fraud and misuse of visas or other documents related to his use of a forged Social Security card to obtain employment.
David Delgado-Salazar, 34, of El Salvador, was indicted on charges of making a false statement of citizenship to obtain employment and fraud and misuse of visas or other documents related to his use of a forged Social Security card to obtain employment.
Nora R. Galvez-Roblero, 44, of Mexico, was indicted on charges of fraud and misuse of visas and other documents related to her use of forged LAPR cards to obtain employment.
These cases are being prosecuted by Assistant U.S. Attorney Noah P. Hood and Michael Freeman following investigations by Department of Homeland Security, Customs and Border Protection,and Department of Homeland Security, Homeland Security Investigations.
Each of these defendants was administratively detained following an enforcement action in the Sandusky area in June 2018.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former attorney indicted for using dozens of his clients’ identities to obtain fraudulent litigation advancesRead the Press Release
ATLANTA - Chalmer “Chuck” Detling, II has been arraigned on seven counts of wire fraud and eight counts of aggravated identity theft. Detling was indicted by a federal grand jury on August 8, 2018, for using the identities of 36 former clients without their knowledge or authorization in order to apply for and obtain 50 fraudulent litigation advances, totaling hundreds of thousands dollars.
“Lawyers are supposed to assist their clients, not use their identities to commit fraud.” said U.S. Attorney Byung J. “BJay” Pak. “Detling allegedly violated his ethical and fiduciary duties by using his clients’ personal information to apply for litigation advances in their names. He then kept the money for himself.”
“Detling’s alleged actions displayed a complete disregard for his clients by stealing their identities to enrich himself,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will continue to hold those accountable who choose to exploit their trusted positions for their own personal financial gain.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Detling was admitted to the State Bar of Georgia in 2004. In May 2012 through December 2016, Detling was the owner and operator of the Detling Law Group, a law firm based in Marietta, Georgia. Detling primarily engaged in personal injury law. On October 31, 2016, the Supreme Court of Georgia accepted Detling’s petition for voluntary surrender of his license. He is no longer licensed to practice law in the State of Georgia.
Various financing companies offer “litigation advances” to cover non-litigation related expenses (e.g., living and medical expenses) for plaintiffs who typically have a pending personal injury or worker’s compensation lawsuit. Typically, a plaintiff applies for litigation advance financing by submitting a signed financing agreement that includes, among other things, the amount of money being advanced to the plaintiff and a repayment schedule. Although the financing agreement contemplates that a plaintiff will repay the litigation advances with interest, the litigation financing entities do not consider such financing to be “loans.” Instead, they characterize the financing as “investments” or “advances” because a plaintiff who has no recovery would not be obligated to repay the litigation financing entity. The litigation advances typically range from several hundred to several thousand dollars.
From October 2014 through April 2016, Detling allegedly devised a scheme to defraud several litigation financing entities by obtaining fraudulent litigation advances in the names of his law firm’s clients without the clients’ knowledge or authorization. During this period, Detling allegedly obtained 50 fraudulent litigation advances totaling more than $383,000 in the names of 36 clients. Detling applied for the fraudulent litigation advances using personal identifying information of his clients, including their names and Social Security numbers. He allegedly submitted applications that were purportedly signed and executed by his respective clients, but Detling knew when he submitted the agreement paperwork that the clients had not actually executed the agreements. Detling was able to secure these fraudulent litigation advances without his clients’ knowledge in part because the litigation financing entities did not require the clients to be present when applying for the litigation advances or receiving the disbursements.
In order to further conceal that he applied for and received the fraudulent litigation advances, Detling allegedly had the loan proceeds wired directly to his law firm’s Interest on Lawyer Trust Account (“IOLTA”) or he personally picked up checks from the lending entity and deposited the funds into the IOLTA account. The fraudulently obtained litigation advances would then be transferred from the IOLTA account to Detling Law Group’s operating accounts or other Detling Law Group accounts. Detling allegedly further concealed that he applied for and received the fraudulent litigation advances in his clients’ names without their knowledge or authorization by often providing inaccurate contact information to the litigation financing entities for the clients who were purportedly seeking the litigation advances. This included providing fake phone numbers and/or email addresses in the financing applications.
Chalmer “Chuck” Detling, II, 42, of Marietta, Georgia was arraigned before U.S. Magistrate Judge Catherine M. Salinas on seven counts of wire fraud and eight counts of aggravated identity theft on August 10, 2018. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with assistance from the State Bar of Georgia.
Assistant U.S. Attorneys Alex R. Sistla and John S. Ghose are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former L.A. County Deputy Sheriff Pleads Guilty in Scheme to Escort Interstate Narcotics Shipments in Exchange for more than $250,000Read the Press Release
LOS ANGELES – A former Los Angeles County deputy sheriff pleaded guilty today to conspiring to distribute methamphetamine, cocaine and marijuana as part of an interstate drug trafficking scheme in which the deputy agreed to use his position as a law enforcement officer to ensure the successful transport of narcotics.
Deputy Sheriff Kenneth Collins, 50, of Chino, who separated from the LASD in late February, admitted that he conspired with at least two other individuals to accept cash payments in exchange for distributing large quantities of controlled substances and actively thwarting the enforcement of state and local law – in exchange for cash payments as high as $250,000.
According to a plea agreement filed in federal court, during an FBI undercover operation, Collins agreed that he and his team would provide an armed escort for the narcotics and take calculated steps to prevent legitimate law enforcement from intercepting the shipments.
Collins pleaded guilty before United States District Judge Otis D. Wright, II, who scheduled a sentencing hearing for November 19, 2018. As a result of today’s guilty plea, Collins faces a mandatory minimum sentence of 10 years in federal prison, and he could be sentenced to as much as life without parole.
“Law enforcement officers are sworn to uphold the law, which is why we hold them to a higher standard of conduct,” said United States Attorney Nick Hanna. “Deputy Collins didn’t just break the law, he trampled his oath by agreeing to sell his badge to assist drug traffickers.”
"Former Deputy Collins broke the law he swore to uphold by misusing his badge as a guarantee that crimes would go undetected, while enriching himself in the process," said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The cooperation with the Los Angeles County Sheriff's Department during this investigation was instrumental to the resolution of this case."
In January, special agents with the FBI arrested Collins and two co-defendants – David Easter, 52, of the Hyde Park District of Los Angeles, and Grant Valencia, 34, of Pomona – after they arrived in Pasadena to provide security for the transport of nearly 45 pounds of cocaine and more than 13 pounds of methamphetamine to Las Vegas, Nevada. Unbeknownst to Collins and his co-defendants, the narcotics transport was part of an FBI sting operation. Collins had previously negotiated a cash payment of $250,000 for this transport with an undercover FBI agent posing as the partner of a wealthy investor financing a drug trafficking operation.
Collins had met Valencia through a life-skills class called the Emerging Leaders Academy where Collins was an instructor, according to court documents. The purpose of the academy was for LASD deputies to teach and mentor adult ex-offenders, like Valencia, in order to help those ex-offenders successfully reintegrate into society.
Collins admitted in court that he and his two co-defendants previously provided security in November 2017 for a shipment of what Collins believed to be six kilograms of methamphetamine, as well as marijuana and counterfeit cigarettes, from Pasadena to Las Vegas. In exchange for his team’s security services that day, Collins received $25,000 in cash.
In justifying the high fees for his services, Collins told the undercover agent “we’re cops” and “all of our transports make it through.” During a recorded meeting with the undercover agent, Collins displayed his Los Angeles County Sheriff’s Department badge and firearm to prove that he was, in fact, a law enforcement officer, thereby rendering his services more valuable to a drug trafficking organization.
In October 2017, Collins sold two pounds of marijuana to the undercover agent for $6,000 as a “test run” to entice the undercover agent to purchase larger quantities of marijuana in the future. Collins also offered to facilitate the sale of up to $4 million of marijuana to the undercover agent every month, according to court documents. Collins claimed to have a “connection” through which he could secure up to 2,000 pounds of marijuana every month.
In his plea agreement, Collins further admitted that, while on duty in May 2014, he conducted an unlawful traffic stop of a vehicle and illegally seized approximately $160,000 in cash from the vehicle. Prior to the traffic stop, Collins was aware that there would be a large sum of cash in the vehicle. Collins conducted the bogus traffic stop to illegally seize the cash, which was never reported to the LASD.
Easter and Valencia are scheduled to be tried in this case before Judge Wright on October 23.
The case against Collins and his co-defendants is the result of an investigation by the Federal Bureau of Investigation. The Los Angeles County Sheriff’s Department cooperated in the federal investigation.
This case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former C.E.O. of Cocoa Trading Company Sentenced to 36 Months in Prison for $350 Million FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PETER G. JOHNSON was sentenced to 36 months in prison for leading a scheme to defraud a group of lenders (the “Banks”) by submitting false “borrowing base” reports designed to secure and maintain a $400 million line of credit for his cocoa trading company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”). JOHNSON pled guilty on March 9, 2018, to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution. The sentence was imposed by United States District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “Peter G. Johnson, CEO of Transmar, a commodities trading company specializing in cocoa trading, previously admitted to his role in a scheme to defraud the banks which extended high lines of credit to Transmar. Johnson and his co-defendants fudged the company’s required reports, which banks used to gauge the amount they extended Transmar, to make the company seem financially healthier, thus receiving higher credit than deserved. All told, Johnson’s scheme led to the bankruptcy of Transmar, unpaid debt of over $350 million, and now he has been sentenced to 36 months in prison time.”
According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Transmar was a closely-held, family-run cocoa commodity trading company. PETER G. JOHNSON was Transmar’s founder, President, and chief executive officer.
From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million. To secure and maintain these hundreds of millions of dollars in credit, PETER G. JOHNSON, his son, Peter B. Johnson, Transmar’s Vice President of Finance, Thomas Reich, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.
The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension. The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks.
Beginning no later than 2014, Transmar employees, acting with JOHNSON’s knowledge and at his direction, manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending. The manipulation involved, among other devices, counting inventory that Transmar had already sold or was otherwise ineligible for inclusion, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions through which amenable third-party intermediaries agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar Commodities GMBH, Transmar’s affiliate.
Following the discovery of the fraud, Transmar filed for bankruptcy in December 2016. At that time, the Company owed the Banks approximately $360 million.
* * *
In addition to the prison term, JOHNSON, 69, of Harding Township, New Jersey, was sentenced to two years of supervised release.
Peter B. Johnson, 39, of Morristown, New Jersey, and Thomas Reich, 60, of Montvale, New Jersey, each pled guilty to the same offenses for their participation in the scheme to defraud the Banks. They are scheduled to be sentenced on September 17 and 21, 2018, respectively.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Benet J. Kearney and Daniel M. Tracer are in charge of the prosecution.
Federal Law Enforcement Targets Marijuana Grown on Federal LandRead the Press Release
DENVER – Federal authorities today announce prosecution results from marijuana grows on federal public land last year, as they prepare for this year’s marijuana harvest season. U.S. Attorney Bob Troyer, U.S. Forest Service Special Agent in Charge Kent Delbon, and Bureau of Land Management (BLM) Special Agent in Charge Gary Mannino announced all three agencies are working together with local law enforcement to make public lands safer, to prevent environmental damage, and to combat illegal marijuana trafficking. Homeland Security Investigations (HSI) provided substantial assistance.
During 2017, Forest Service agents and BLM officers, in concert with local law enforcement, dismantled marijuana operations on public land throughout the state, with several defendants receiving sentences of up to five years in prison. In Colorado, the marijuana growing season typically runs from early summer through the fall, which is when the cases listed below were brought last year:
United States v. Santos Ramirez-Alvarez and Santos Ramirez-Carrillo, Case No. 17-cr-338: On two islands in the Colorado River near DeBeque, Colorado, approximately 9,100 marijuana plants were found growing on BLM land. Water from the Colorado river was diverted to irrigate the grow, while money derived from the grow went to individuals in Sinaloa, Mexico. Two defendants were arrested, charged, and pled guilty to a conspiracy to manufacture and distribute marijuana. They were sentenced to 57 months and 60 months in prison, respectively.
United States v. Fernando Esquivel Herrera, No. 17-cr-402: In the White River National Forest, near Placita, Colorado, approximately 2,700 marijuana plants were found growing on about 8 acres of public land, with another 3,000 plants already harvested. Multiple bottles of WD-40 were found at the site. The defendant was charged with conspiracy to manufacture and distribute marijuana plants, along with other crimes. He was sentenced to 60 months in prison.
United States v. Neil Andrew McKay, No. 17-cr-403: On BLM land near Whitewater, Colorado, approximately 100 marijuana plants were located. The defendant – who was homeless -- was found with a loaded handgun in his possession. He was sentenced to 12 months and 1 day in prison.
United States v. Vincente Medrano Duque, No. 17-cr-320: In the San Isabel National Forest near Rye, Colorado, approximately 7,500 plants were located on a grow affecting approximately four acres. The defendant was charged and pled guilty to conspiracy and possession with intent to distribute marijuana plants, land depredation, and illegal reentry. Sentencing is scheduled for the end of August.
United States v. Danilo Jemenez-Lopez and Margarito Yepez-Sanchez., No. 17-cr-372: In the San Isabel National Forest near Rye, Colorado, approximately 14,000 marijuana plants were located on a grow affecting approximately twelve acres. Two defendants were charged, and one pled guilty to conspiracy to manufacture, distribute, and possess marijuana, as well as land depredation. The case against defendant Jemenez-Lopez is still pending.
United States v. Cutberto Reyes-Martinez, Gildardo Mendez-Arizmendi, Martin Sandoval-Arizmendi, and Pedro Fernando Segovia Rosales., No. 17-cr-375: In the San Isabel National Forest near Salida, Colorado, approximately 4,000 marijuana plants were located on a grow affecting approximately seven acres. Four defendants were charged and pled guilty to conspiracy and possession with intent to distribute marijuana plants. Two defendants were also charged and pled guilty to illegal reentry. The defendants were sentenced individually to 20, 24, 60 and 24 months in prison.
United States v. Virgilio Alain Reyes Cervantes and Erik Pimental Magana Plata, No. 17-cr-431: In the San Isabel National Forest near Rye, Colorado, approximately 9,000 marijuana plants were found on a grow affecting approximately seven acres. Two defendants were charged with conspiracy and possession with intent to distribute marijuana. They were sentenced to 15 and 21 months in prison, respectively.
In addition to the U.S. Forest Service and the Bureau of Land Management, Homeland Security Investigations assisted with a number of the investigations mentioned above.
More than 71,000 marijuana plants were removed from approximately 38 acres of Colorado public lands (not including the islands on the Colorado river) during last year’s growing season. The environmental impact was significant. From marijuana grows in the San Isabel National Forest, for example, the Forest Service estimates that approximately 5,000 pounds of trash and infrastructure were found at each grow site. Man-made reservoirs and numerous structures were built from cut pine timber. Pesticides and other chemicals were also found and removed. It took hundreds of hours to clean up each site to mitigate the environmental harm to the public lands.
“Public lands are just that – they’re public and belong to all of us,” said U.S. Attorney Troyer. “These black marketers abuse our land, our water, our animals and plants. With these prosecutions we motivate black marketers to make less harmful occupational choices.”
“We appreciate the continued support and commitment from the US Attorney’s Office working with the USDA Forest Service along with our state and local partners to dismantle and disrupt illegal marijuana cultivation on public lands,” said Forest Service Special Agent in Charge Kent Delbon. “The continued success of these eradications and prosecutions protects forest visitors, employees, nature, and wildlife from the harmful effects of illegal marijuana cultivation on national forests.”
“Illegal marijuana grows on public lands pose safety and environmental risks to all of us," said Gary Mannino, BLM Colorado Special Agent in Charge. "We will continue to work with local, state and federal agencies to ensure that the public is safe when they recreate on their lands, and that we protect the natural resources in our care.”
“Our special agents from Homeland Security Investigations — along with our law enforcement partners — pooled our unique experience and expertise to effectively investigate each of these marijuana-grow cases,” said Steven W. Cagen, special agent in charge of HSI Denver. “Allowing such criminal activity to exist without aggressive law enforcement invites more crime into our state and into our communities.”
These cases are handled by Assistant U.S. Attorneys who specialize in prosecuting those responsible for illegally growing marijuana, polluting our public lands and selling the marijuana to the black market.
Euclid, Ohio, Man Pleads Guilty to Distribution of Fentanyl that He Ordered from China and Sold Domestically, Including in Western PARead the Press Release
PITTSBURGH, PA - A Euclid, Ohio, man pleaded guilty to distribution of fentanyl that he ordered from China and sold domestically, including to an undercover FBI agent in Pittsburgh, U.S. Attorney Justin Herdman of the Northern District of Ohio and U.S. Attorney Scott W. Brady of the Western District of Pennsylvania announced today.
Antoin Austin, 28, is scheduled be sentenced Nov. 5.
Austin used the online moniker "DARKKING22" on the dark web. DARKKING22 advertised some of the following items for sale this year: "Fentanyl Pure HCL, Methozymethylfentanyl ‘30490’, molly, pure lofentanil, and MMAF New Product." Methozymethylfentanyl, pure lofentanil, and MMAF New Product are known to be various types of fentanyl analogues, according to court documents.
Undercover law enforcement agents made multiple purchases of opioids from DARKKING22 on the Dark Web in 2018. The purchases were made using bitcoins and the shipments indicated the letters carrying the drugs originated in the Cleveland area. The initial undercover purchase from Austin occurred in March of 2018 when undercover FBI special agents based in the Western District of Pennsylvania purchased and received cyclopropyl fentanyl, a Schedule I controlled substance, from Austin.
According to court documents, the FBI and U.S. Postal Inspectors tracked the March shipment of fentanyl from DARKKING22 to the U.S. Post Office in Wickliffe, Ohio. They observed Austin travel from his home in Euclid to the Wickliffe Post Office, where he attempted to mail packages using false return addresses. These packages were intercepted by agents and were found to contain fentanyl consistent with the undercover purchases. In October 2017, law enforcement also seized a package shipped from a known Chinese fentanyl distributor to Austin which contained 10 grams of fentanyl.
The U.S. Attorney’s Office in the Western District of Pennsylvania charged Austin by Information with distribution of fentanyl in July 2018 and that case was transferred to the Northern District of Ohio and consolidated with the Ohio distribution case for purposes of Austin’s guilty plea and upcoming sentencing.
"This defendant ordered thousands of deadly doses of fentanyl from China, brought it to a residential neighborhood in Euclid and then mailed the dangerous drugs all over Ohio and across the country," U.S. Attorney Justin Herdman said. "Drug traffickers like this have enriched themselves while causing so much pain in our community."
"DARKKING22 is one of the first defendants in the country to be investigated, charged and convicted since Attorney General Jeff Sessions announced the creation of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative in Pittsburgh earlier this year," said U.S. Attorney Brady. "Through our office’s expertise in opioids and cybercrime, we are disrupting illegal opioid sales on the Darknet by dismantling these marketplaces and criminal enterprises."
"Online drug trafficking takes the risk out of dealing drugs face to face," said FBI-Pittsburgh Special Agent in Charge Robert Jones. "But we want to send a clear message to those buying and selling drugs on the Darknet. You are not anonymous and we will find you. Shutting down this on-line illegal activity is a coordinated effort and all of our law enforcement partners are committed to stopping the opioid epidemic."
This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service as part of the Joint Criminal Opioid Darknet Enforcement (JCODE) initiative aimed at targeting drug trafficking of fentanyl and other opioids on the Darknet. It is being prosecuted by Assistant U.S. Attorney Matthew Cronin of the Northern District of Ohio and Assistant U.S. Attorney Jessica Lieber Smolar in the Western District of Pennsylvania.
Euclid man pleaded guilty to distribution of fentanyl that he ordered from China and sold domesticallyRead the Press Release
A Euclid man pleaded guilty to distribution of fentanyl that he ordered from China and sold domestically, including to an undercover FBI agent in Pittsburgh, U.S. Attorney Justin Herdman of the Northern District of Ohio and U.S. Attorney Scott W. Brady of the Western District of Pennsylvania announced today.
Antoin Austin, 28, is scheduled be sentenced Nov. 5.
Austin used the online moniker “DARKKING22” on the dark web. DARKKING22 advertised some of the following items for sale this year: “Fentanyl Pure HCL, Methozymethylfentanyl ‘30490’, molly, pure lofentanil, and MMAF New Product.” Methozymethylfentanyl, pure lofentanil, and MMAF New Product are known to be various types of fentanyl analogues, according to court documents.
Undercover law enforcement agents made multiple purchases of opioids from DARKKING22 on the Dark Web in 2018. The purchases were made using bitcoins and the shipments indicated the letters carrying the drugs originated in the Cleveland area. The initial undercover purchase from Austin occurred in March of 2018 when undercover FBI special agents based in the Western District of Pennsylvania purchased and received cyclopropyl fentanyl, a Schedule I controlled substance, from Austin.
According to court documents, the FBI and U.S. Postal Inspectors tracked the March shipment of fentanyl from DARKKING22 to the U.S. Post Office in Wickliffe. They observed Austin travel from his home in Euclid to the Wickliffe Post Office, where he attempted to mail packages using false return addresses. These packages were intercepted by agents and were found to contain fentanyl consistent with the undercover purchases. In October 2017, law enforcement also seized a package shipped from a known Chinese fentanyl distributor to Austin which contained 10 grams of fentanyl.
The U.S. Attorney’s Office in the Western District of Pennsylvania charged Austin by information with distribution of fentanyl in July 2018 and that case was transferred to the Northern District of Ohio and consolidated with the Ohio distribution case for purposes of Austin’s guilty plea and upcoming sentencing.
“This defendant ordered thousands of deadly doses of fentanyl from China, brought it to a residential neighborhood in Euclid and then mailed the dangerous drugs all over Ohio and across the country,” U.S. Attorney Justin Herdman said. “Drug traffickers like this have enriched themselves while causing so much pain in our community.”
“DARKKING22 is one of the first defendants in the country to be investigated, charged and convicted since Attorney General Jeff Sessions announced the creation of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative in Pittsburgh earlier this year,” said U.S. Attorney Brady. “Through our office’s expertise in opioids and cybercrime, we are disrupting illegal opioid sales on the Darknet by dismantling these marketplaces and criminal enterprises.”
"Online drug trafficking takes the risk out of dealing drugs face to face," said FBI-Pittsburgh Special Agent in Charge Robert Jones. "But we want to send a clear message to those buying and selling drugs on the Darknet. You are not anonymous and we will find you. Shutting down this on-line illegal activity is a coordinated effort and all of our law enforcement partners are committed to stopping the opioid epidemic."
This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service as part of the Joint Criminal Opioid Darknet Enforcement (JCODE) initiative aimed at targeting drug trafficking of fentanyl and other opioids on the Darknet. It is being prosecuted by Assistant U.S. Attorney Matthew Cronin of the Northern District of Ohio and Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania.
Duquesne Men Indicted on Firearms and False Statements ChargesRead the Press Release
PITTSBURGH, PA – Two Duquesne, Pa., residents have been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms laws and making false statements to federal law enforcement United States Attorney Scott W. Brady announced today.
The five-count indictment, returned on March 21 and unsealed on August 9, 2018, named Khalil Armstrong, 26, and Melvin Bowles, 24, as the defendants.
According to the indictment, in February 2018, Armstrong and Bowles conspired to make false statements in the acquisition of a firearm. On February 7, 2018, Armstrong made false statements to a licensed firearm dealer in the acquisition of a firearm. On February 12, 2018, Armstrong made false statements to federal law enforcement. On February 15, 2018, Bowles allegedly possessed a firearm as a convicted felon.
The defendants face a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Distribution Conspirator Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced DARWIN A. ELPHAGE a/k/a “Zero,” age 40, of Gonzales, Louisiana, to 120 months in federal prison following his conviction for conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; distribution of heroin, in violation of 21 U.S.C. § 841(a)(1); possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1); and unlawful use of communication facilities, in violation of 21 U.S.C. § 843(b).
ELPHAGE was charged in an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas. The indictment charges significant drug trafficking, racketeering, firearm, and conspiracy charges. To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone. Authorities have also seized seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer.
From September 22, 2015 to April of 2016, ELPHAGE conspired with eleven additional members of the drug trafficking organization to distribute in excess of one kilogram of heroin, in the Middle District of Louisiana, as set forth in the Indictment.
As part of the conspiracy, Jason Muse purchased kilogram quantities of heroin from Morito Tobar, Aron Winter Mosquera-Castro, Santos Mosquera-Candelo, and Fabio Zuniga-Caicedo. ELPHAGE, working under the direction of Jason Muse, distributed the heroin to Jason Muse’s customers and his own customers for further distribution in Baton Rouge, Ascension Parish, and elsewhere.
U.S. Attorney Fremin stated, “There is no room for this kind behavior in our communities…none. Fortunately, when it comes to kilo-level drug dealers like this defendant, there is room in the federal penitentiary. This is yet another reminder that bad behavior by dangerous felons results in significant sentences in federal court. Removing deadly drugs like heroin, oxycodone, crack, and meth from the streets of Ascension Parish makes our communities safer. I am extremely proud of the efforts of the many law enforcement partners on the local, state and federal levels who joined forces in an effort to dismantle this operation.”
“The sentencing today of DARWIN A. ELPHAGE a/k/a “Zero, sends a clear message to all who engage in the distribution of illegal drugs and to those who plague our neighborhoods with violence that we will work together to see that you are brought to justice. Federal and local law enforcement successfully collaborated in order to put ELPHAGE in federal prison for 120 months as a result of his involvement with a violent drug trafficking organization in the Baton Rouge Metropolitan Area,”said Drug Enforcement Administration (DEA) Assistant Special Agent-in-Charge Brad L. Byerley.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Defendant sentenced to federal prison for using stolen identities to file fraudulent tax returnsRead the Press Release
ATLANTA - Abdulrahman Tijani has been sentenced for his role in a scheme to file fraudulent tax returns, using the stolen personally identifiable information (PII), such as dates of birth and Social Security numbers of taxpayers. Tijani then used some of the funds to pay fees for his immigration application, in which he made false representations concerning prior crimes.
“Tijani victimized numerous taxpayers by filing fraudulent tax returns with their stolen identities,” said U.S. Attorney Byung J. “BJay” Pak. “He then used some of the stolen funds to pay for his immigration application fees, on which he denied committing any crimes. Tijani is now headed to federal prison for his role in this scheme, and he will be turned over to the Department of Homeland Security for potential deportation proceedings.”
“The Treasury Inspector General for Tax Administration remains committed to investigating and pursuing all criminal abuses of the federal system of tax administration, including the digital tax administration system,” said J. Russell George, Treasury Inspector General for Tax Administration. “Let this case serve as a warning to others who are interested in exploiting the Internal Revenue Service’s computer systems to commit identity theft and other forms of criminal activity. I wish to thank my investigators for their excellent work on this case and the U.S. Attorney’s office for helping bring this individual to justice.”
According to U.S. Attorney Pak, the charges and other information presented in court: Tijani was a member of a group which used stolen PII to file fraudulent tax returns with the IRS. He then directed the refunds into fraudulently obtained bank accounts or debit cards. Between February 16, 2015 and April 6, 2015, 47 fraudulent returns were filed, which totaled $265,960 in attempted tax refunds. The IRS flagged 35 of these returns as being potentially fraudulent.
An email account linked to Tijani was used in connection with obtaining a fraudulent refund in the amount of $6,063.10 from a victim in Gretna, Louisiana. The refund was deposited into a bank account on March 13, 2015. On the same day, Tijani withdrew $791.65 from this account to pay for his federal immigration application fees. He then falsely answered “no” on the application to the question asking whether he had committed a crime of moral turpitude for which he had not been arrested.
Another email account linked to Tijani was used to open a separate bank account where another fraudulent refund was directed. Two telephone numbers associated with Tijani were then used to conduct balance checks on the account. The investigation also revealed that Tijani downloaded stolen files containing victims’ PII from a New York tax firm.
Abdulrahman Tijani, 41, of Lawrenceville, Georgia was sentenced by U.S. District Judge Mark H. Cohen to four years in prison, to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $50,221. Tijani pleaded guilty on March 30, 2018 to theft of public money, aggravated identity theft, and making a false statement on his immigration application.
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Michael Herskowitz, Deputy Chief of the Organized Crime and Gang Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Council Bluffs Man Sentenced for Felon in Possession of a Firearm ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – On August 10, 2018, Terry Hannan, age 39, of Council Bluffs was sentenced by United States District Court Senior Judge Robert W. Pratt to 63 months in prison for a felon in possession of a firearm charge announced United States Attorney Marc Krickbaum. Hannan was ordered to serve three years of supervised release to follow his prison term.
Hannan pleaded guilty to the offense on March 13, 2018. On December 29, 2017, the Council Bluffs Police and Fire Departments responded to a fire at Hannan’s home. Officers entered the house and observed ammunition and a gun safe, but did not locate anyone in the residence. As the fire inspector investigated the cause of the fire, Hannan was seen in a car near the home. The car left abruptly when the fire inspector approached Hannan, and a short pursuit ensued. When the vehicle was stopped, Hannan was found in possession of a loaded Taurus Titanium .38 revolver.
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 was investigated by Council Bluffs Police Department, Council Bluffs Fire Department, and The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Congress can help us keep career criminals in prisonRead the Press Release
D. Michael Dunavant, U.S. Attorney Western District Tennessee
Guest columnist (The Commercial Appeal)From 1964 to 1980, the violent crime rate tripled in this country. So did robbery. The murder rate doubled. Aggravated assault nearly tripled.
This was an alarming time for communities across this country. In 1984, Congress passed the Armed Career Criminal Act (ACCA), which gave federal prosecutors a powerful new tool to fight the rise in crime. This law helped prosecutors put away the most violent criminals by requiring a minimum 15-year sentence for felons who were caught with a firearm after their third robbery or burglary conviction.
United States Attorneys put this new tool to use, going after violent offenders and putting them in jail. By 1992, violent crime had begun a historic decline. From 1991 to 2014, violent crime fell by half; murder fell by half; aggravated assault fell by 47 percent and robbery by nearly two thirds.
I have no doubt that much of this decline was due to keeping the most violent criminals off the streets for a longer time. Here in West Tennessee, the ACCA has long been a key tool used by prosecutors in our Project Safe Neighborhoods unit, which aggressively targets repeat violent offenders and removes them from our streets.
But in 2015—after 30 years on the books—one line of the ACCA was struck down by the Supreme Court as being too vague. Because of this significant ruling in Johnson v. United States, every federal prosecutor lost one of our most valuable tools.
Now is the time for Congress to fix the ACCA and restore this tool to our toolbox.
More than 1,400 criminals—each convicted of at least three prior felonies—have been let out of jail since the ruling in Johnson. So far, more than 600 have been arrested again. On average, these 600 criminals have reoffended or been arrested three times since 2015. A majority of those who have been out of prison for two years have already been arrested again.
Federal courts in West Tennessee released numerous prisoners due to the Supreme Court’s ruling. Many of these releasees, who were initially prosecuted under the ACCA, have reoffended and violated terms of their supervised release.
For example, one defendant—about a year after being released—was charged with murder and firearm offenses in Shelby County Criminal Court. Another was sentenced to almost two additional years in federal prison after he (again) illegally possessed a firearm. And a third released defendant had his supervised release revoked twice for drug crimes, before being sent back to prison.
These statistics and examples of recidivism are shocking, but they are likely an underrepresentation of these criminals’ illegal activity. Any prosecutor will tell you that criminals rarely get caught on their first offense and that they often make plea bargains in which they admit to one of their lesser crimes rather than to their most serious crime.
Those plea bargains are a big reason why prosecutors need to have ACCA in our toolbox again. When we’re negotiating with a serious, repeat offender, we have a lot more leverage when they’re facing a 15-year sentence than when they’re facing, for example, a 5-year sentence.
I’ve seen time and again that members of violent criminal conspiracies are more likely to cooperate with us and hand over their ringleaders and kingpins when they’re facing long sentences than when they have hope of getting off early. They might serve two years for their bosses, but they won’t serve 30.
Earlier this month, U.S. Attorney General Jeff Sessions spoke in Little Rock and called for Congress to fix ACCA. As he correctly stated, keeping violent career criminals off of our streets “shouldn’t be controversial.” It has been approximately three years since the Supreme Court’s ruling and hundreds of Americans have already been needlessly victimized by released violent felons. How many more will be victimized this year? Or the next? Or the next?
With every day that passes, the likelihood goes up that these repeat-felons will commit more crimes. So this is urgent, and time is of the essence. Congress needs to fix ACCA so that we prosecutors can keep the most violent offenders behind bars and get more criminals to hand over their leaders. One more victim is too many.
Central Iowa Insurance Agent Convicted of Defrauding ClientsRead the Press Release
DES MOINES, IA – On August 9, 2018, following a four-day trial, a jury found Roger Duane Goodwin, age 59, of Windsor Heights, guilty of seven counts of mail fraud announced United States Attorney Marc Krickbaum. The jury also determined Goodwin’s residence in Windsor Heights and two Harley Davidson motorcycles are subject to forfeiture
During trial, the government presented evidence Goodwin owned and operated “Goodwin Network of Advisors, Inc.” which was also referred to as “Goodwin Network”, “GN of A”, and “GNA Corp.” and sold life insurance and annuities to individuals in the Des Moines and Houston, Texas areas. From February 2013 through August 2016, Goodwin advised several of his clients to surrender or cash out existing investments—totaling over $1 million—in order to use those funds to purchase insurance products from him. Instead of purchasing insurance policies or annuity contracts for the clients as promised, Goodwin deposited the clients’ checks into a bank account associated with Goodwin Network of Advisors – which only Goodwin and his spouse could access.
“The evidence showed the defendant preyed on older and vulnerable victims, and he used their hard-earned savings to line his own pockets and fund his lavish lifestyle,” said United States Attorney Krickbaum. “Those like Goodwin who prey upon older individuals should know that we will hold them accountable.”
Goodwin kept all or large portions of the funds and used the money for unauthorized purposes that were not for the benefit of the affected clients. Goodwin used his clients’ money, unbeknownst to them, for his personal expenses including paying his mortgage, making vehicle payments, remodeling his residence, and other lavish personal expenditures. He also used client funds to repay other clients of Goodwin’s and to make payments to the insurance companies for the benefit of clients whose money Goodwin had failed to earlier send to the insurance company.
Mail fraud is punishable by a maximum prison term of twenty years and a maximum fine of $250,000 for each count. Sentencing is scheduled for December 19, 2018, at 11:00 a.m., before United States District Court Judge Rebecca Goodgame Ebinger.
This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
California Man Sentenced to Prison for Wire Fraud and Money LaunderingRead the Press Release
MISSOULA - Joseph Brent Loftis, 63, of Corona Del Mar, California, was sentenced on Friday, August 10, for multiple counts of wire fraud and money laundering. Chief U.S. District Judge Dana L. Christensen sentenced Loftis to 97 months in prison on all counts of conviction, to run concurrently, three years of supervised release and a $700 special assessment. Loftis stipulated to a forfeiture order of $1,662,749.10. Chief Judge Christensen further ordered Loftis to pay $7,831,666.55 in restitution to the victims of his crimes.
Loftis was convicted by a Montana jury in April of 2018 of five counts of wire fraud and two counts of money laundering following an eight-day trial with testimony from thirty-two government witnesses. Evidence presented at trial showed that from 2009 through 2013 Loftis solicited approximately $3 million from investors based upon false representations that he owned leases on the Blackfeet Indian Reservation. Loftis also made misrepresentations regarding the amounts of oil produced from these oil wells. Loftis also falsely represented to investors that he owned oil and gas leases in Oklahoma and Texas though Loftis had defaulted on purchase agreements for the leases.
As part of his scheme, after receiving investor funds, Loftis typically provided investors with a few checks totaling about $1000 and then stopped payments altogether. Once investors complained, Loftis provided excuses regarding disputes about ownership or issues with drilling. In some instances, Loftis offered to return the investors’ money and entered a rescission agreement for the investment. Loftis, however, failed to return the investors’ money or issued a check cancelled through a stop payment.
In 2011, Loftis took steps to complete a transaction known as reverse merger in which his shell company, Prism, would become a subsidiary of a publically traded company. Based upon Loftis’s representations that he needed capital to continue Prism’s operations until his company could receive equity in the public markets, Loftis obtained a $1.9 million bridge loan from investor funds. After Loftis received the loan proceeds, he failed to carry out the steps needed to complete the merger and kept the bridge loan proceeds while spending $190,000 of the funds on a luxury RV and other personal expenses.
Also in 2011, Loftis relocated to Texas and began soliciting funds from investors in a newly formed company Great Northern Energy. Loftis continued to misrepresent his education and denied having a criminal record despite a 1995 felony conviction for bank fraud and false statements to a financial institution.
This case was investigated by the FBI and IRS and prosecuted by Assistant United States Attorneys Chad Spraker and Adam Duerk.
California Man Pleads Guilty to Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that JEFFREY ROGIERS pled guilty today before United States District Judge Alison J. Nathan to conspiracy to commit securities fraud and fraud in connection with a tender offer for his role in an insider trading scheme relating to material nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In August 2017, ROGIERS, as well as Michael Siva, Roberto Rodriguez, Rodolfo Sablon, and Jhonatan Zoquier, were arrested and charged in a 54-count Indictment for their involvement in three overlapping insider trading chains, all stemming from information misappropriated by Rivas. Prior to the unsealing of the Indictment last year, Rivas and another participant in the scheme, James Moodhe, pled guilty and both have been cooperating with the Government in this investigation. Since the unsealing of the Indictment, Sablon and Zoquier, in addition to ROGIERS, have pled guilty and will be sentenced by Judge Nathan.[1]
U.S. Attorney Geoffrey S. Berman said: “Jeffrey Rogiers traded on stolen confidential corporate information that he received, through a friend, from an insider at an investment bank in order to generate illicit profits. Our Office and our law enforcement partners remain committed to identifying and prosecuting those who engage in such abuses of our nation’s securities markets.”
According to the allegations contained in the Indictment filed against ROGIERS and his co-conspirators, and statements made in related court filings and proceedings:
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of the Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on the misappropriated Inside Information by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rogiers Tipping Chain
With respect to ROGIERS, Rivas passed inside information to his close friend Zoquier, who passed inside information to his close friend ROGIERS.
From at least 2013 through August 2017, Rivas and Zoquier, who lives and works in New Jersey, had a close relationship. ROGIERS lived and worked in California as a computer and network security analyst and had a close relationship with Zoquier. In or about 2013, Zoquier introduced Rivas to ROGIERS. In or about 2015, at Zoquier’s request, Rivas and ROGIERS met in person and Rivas explained to ROGIERS the nature of the Inside Information to which he had access. Between at least in or about March 2016 and in or about April 2017, Rivas repeatedly provided Zoquier with Inside Information misappropriated from the Investment Bank so that Zoquier could execute profitable trades. Beginning in approximately March 2016, Zoquier began sharing the Inside Information he received from Rivas with ROGIERS so that ROGIERS could execute profitable trades for himself. Throughout the time that ROGIERS was obtaining Inside Information from Zoquier, ROGIERS understood that Rivas was the source of the Inside Information. In addition to trading himself, ROGIERS also caused at least one other individual to execute profitable trades based on the Inside Information.
In total, Zoquier and ROGIERS caused trades generating more than $200,000 in illicit profits based on Rivas’s Inside Information.
* * *
ROGIERS, 34, of Oakland, California, pled guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer (Count Thirty-Nine of the Indictment), which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ROGIERS will be sentenced before United States District Alison J. Nathan later this year.
Sablon and Zoquier, two of the co-defendants named in the Indictment along with ROGIERS, have also pled guilty and will be sentenced by Judge Nathan. Any trial of the remaining co-defendants, Siva and Rodriguez, will occur next year before Judge Nathan, on charges of conspiracy to commit securities fraud and fraud in connection with a tender offer, conspiracy to commit wire fraud, multiple counts of securities fraud, and tender offer fraud. The allegations contained in the Indictment as to those defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
[1] As for the defendants who have not pled guilty (Michael Siva and Roberto Rodriguez), the charges described herein constitute only allegations.
Assistant Attorney General Benczkowski Announces Newark/Philadelphia Regional Medicare Fraud Strike ForceRead the Press Release
NEWARK, N.J. – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force (Regional Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Justice Department’s Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA).
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Craig Carpenito for the District of New Jersey; U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General Gary Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John Martin of the DEA.
“The devastation the opioid epidemic is inflicting on communities across the country and here in the Mid-Atlantic region is staggering—and health care fraud has played a role in feeding that epidemic,” said Assistant Attorney General Benczkowski. “It is estimated that each year tens of billions of dollars in American taxpayer money are lost to fraud, waste, abuse and improper payments. According to the CDC, in 2016, more than 40 percent of all U.S. opioid overdose deaths involved a prescription opioid. Our Medicare Fraud Strike Forces, which we have now expanded into Newark and Philadelphia, constitute one of our most important and effective means for containing these threats to the American people.”“New Jersey is home to some of the best healthcare facilities and most successful pharmaceutical companies in the country,” U.S. Attorney Carpenito said. “Unfortunately, that also means that we offer substantial targets for those who would try to defraud the health care system or try to profit from the misery of people battling addiction to opioids. We’ve already developed one robust unit to go after these criminals, the Healthcare & Government Fraud Unit, and I added another, the Opioids Unit, in February upon rejoining the office as U.S. Attorney. The arrival of the Medicare Fraud Strike Force in our District will serve as an additional force-multiplier and enable us to do even more of these cases, further protecting the citizens of New Jersey from this kind of fraud and abuse.”
“Medicare fraud costs our government billions of dollars,” Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office said. “The Medicare Strike Force will aggressively target waste, fraud and abuse in federal health care programs ameliorating the intolerable burden on the taxpayer and Health Care System.”
“The proven-effective Strike Force model combining specialized investigators and prosecutors will no doubt be highly successful in the ongoing fight against health care fraud in the District of New Jersey,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We look forward to working closely with the U.S. Attorney’s Office, Justice Department’s Criminal Division, FBI, DEA, and other law enforcement partners to protect taxpayer-funded federal health care programs and the millions who rely on those benefits.”
“The Newark/Philadelphia Regional Medicare Fraud Strike Force is a great opportunity for collaboration with our partners to share vital information,” Valerie A. Nickerson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division said. “This Strike Force can be an effective tool to combat these crimes by combining the resources of the agencies that are responsible for detecting, enforcing and prosecuting violations of these regulations and laws.”
Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 10 cities across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.
The Regional Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the District of New Jersey and Eastern District of Pennsylvania, and special agents with the FBI, HHS-OIG and DEA. In addition, the Regional Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In June, Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the prosecutors in the 10 Medicare Fraud Strike Force locations have charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Assistant Attorney General Benczkowski Announces Newark/Philadelphia Medicare Fraud Strike Force to Focus on Health Care Fraud and Illegal Opioid PrescriptionsRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force (Regional Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA).
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Craig Carpenito for the District of New Jersey; U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General Gary Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John Martin of the DEA.
“The devastation the opioid epidemic is inflicting on communities across the country and here in the Mid-Atlantic region is staggering—and health care fraud has played a role in feeding that epidemic,” said Assistant Attorney General Benczkowski. “It is estimated that each year tens of billions of dollars in American taxpayer money are lost to fraud, waste, abuse and improper payments. According to the CDC, in 2016, more than 40 percent of all U.S. opioid overdose deaths involved a prescription opioid. Our Medicare Fraud Strike Forces, which we have now expanded into Newark and Philadelphia, constitute one of our most important and effective means for containing these threats to the American people.”
“New Jersey is home to some of the best healthcare facilities and most successful pharmaceutical companies in the country,” said U.S. Attorney Carpenito. “Unfortunately, that also means that we offer substantial targets for those who would try to defraud the health care system or try to profit from the misery of people battling addiction to opioids. We’ve already developed one robust unit to go after these criminals (the Healthcare & Government Fraud Unit), and I added another (the Opioids Unit) in February upon rejoining the office as U.S. Attorney. The arrival of the Medicare Fraud Strike Force in our District will serve as an additional force-multiplier and enable us to do even more of these cases, further protecting the citizens of New Jersey from this kind of fraud and abuse.”
“Combatting the opioid epidemic and healthcare fraud abuses are major priorities of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said U.S. Attorney McSwain. “Healthcare fraud schemes are driven by greed, and all American taxpayers pay the price for criminals who prey on providers and beneficiaries alike. My Office is honored and proud to welcome the DOJ Medicare Fraud Strike Force to our District in order to attack these problems with our law enforcement partners.”
“Healthcare fraud touches every corner of the United States and not only costs taxpayers money but can have deadly consequences; it is not a victimless crime,” said FBI Assistant Director Johnson. “Through investigations, outreach, partnerships, and education, the FBI is committed to combating health care fraud and the growing opioid epidemic that faces the United States. We look forward to the addition of the Newark/Philadelphia Regional Medicare Fraud Strike Force and continuing our work with our partners to positively impact the fight against fraud and abuse.”
“Fraudulent activity remains a significant threat to federal health care programs’ stability and the millions of beneficiaries who rely on such programs,” said HHS-OIG Deputy Inspector General Cantrell. “This joint initiative enables us to marshal resources with other law enforcement agencies, resulting in even more impressive investigative outcomes against health care fraud. As members of the Strike Force, OIG will continue to play a vital role in fighting health care fraud and holding criminals accountable.”
“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator Martin. “Together with our law enforcement partners, we will work to bring down those medical professionals who seek to do harm while ensuring that patients have adequate access to critical medications.”
Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 10 cities across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.
The Regional Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the District of New Jersey and Eastern District of Pennsylvania, and special agents with the FBI, HHS-OIG and DEA. In addition, the Regional Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In June, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the prosecutors in the 10 Medicare Fraud Strike Force locations have charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
10 August 2018
Wilmington Gang Member Sentenced to More Than 8 Years for Heroin Distribution and Weapon ViolationsRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that, Chief United States District Judge James C. Dever III sentenced DIQUELLE SWEET, 22, of Wilmington to 105 months of imprisonment followed by 3 years of supervised release.
On May 1, 2018, SWEET entered a plea of guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heroin, five counts of Distribution of a Quantity of Heroin, and to Possession of a Firearm by a Felon.
Between April 2015 and October 2017, DIQUELLE SWEET, Deandre Sweet, Kyeric Sweet and others were responsible for the distribution of significant amounts of heroin in the Wilmington, NC area. Law enforcement responded by targeting SWEET, a validated gang member, and his co-conspirators for investigation and prosecution.
From June of 2017 through August of 2017, officers of the Wilmington Police Department Gang Unit made five undercover purchases of heroin from SWEET.
SWEET was also the subject of other criminal investigations. On June 27, 2017, witnesses reported that SWEET was involved in a shootout with another individual who SWEET shot in the chest.
On October 10, 2017, Bladen County Sheriff’s deputies and Elizabethtown police officers conducting a license checkpoint encountered a car occupied by SWEET. The driver failed to stop the car at the checkpoint. Once stopped by law enforcement the car was searched and two loaded firearms were found. SWEET had previously been convicted of a felony and was prohibited from possessing a firearm.
On October 11, 2017, New Hanover County Detectives observed a hand-to-hand exchange of drugs between SWEET and another individual. When detectives attempted to conduct a traffic stop on the vehicle driven by SWEET, SWEET drove over a curb, onto the sidewalk and crashed into another vehicle before coming to a stop. SWEET then fled on foot before being apprehended in possession of $2,945 in U.S. currency. The driver of the second vehicle was injured and transported to Cape Fear Memorial Hospital for treatment.
This case is part of the Take Back North Carolina Initiative, which was newly implemented by United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This investigation was conducted by the Wilmington Police Department Gang Unit and the Federal Bureau of Investigation’s Safe Street’s Task Force, New Hanover and Bladen County Sheriffs’ Offices and the Elizabethtown Police Department. Assistant United States Attorney Timothy M. Severo handled the prosecution of this case for the government.
Violent Felon Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
BATON ROUGE, LA - United States Attorney Brandon J. Fremin announced today that BRYAN COMEAUX, age 26, of Baton Rouge, was sentenced by Chief U.S. District Judge Shelly Dick to 42 months in federal prison as a result of his conviction for possessing a firearm while a convicted felon. The Court further sentenced COMEAUX to three years of supervised release following his term of imprisonment.
On November 11, 2017, in Baton Rouge, deputies with the East Baton Rouge Sheriff’s Office stopped a black Dodge Challenger after it swerved across the center lane. For the safety of both the deputies and the driver, deputies asked COMEAUX who was the Challenger’s sole occupant, to exit the vehicle. Deputies saw in plain view a black semi-automatic pistol protruding from beneath the driver’s seat. Deputies took possession of the pistol, a Smith & Wesson, 9 millimeter.
In 2015, COMEAUX was convicted of both conspiracy to commit second degree murder and conspiracy to commit armed robbery and is prohibited from possessing a firearm.
U.S. Attorney Fremin stated, “We must enforce our nation’s gun laws to keep our law abiding citizens safe from those who present the greatest dangers. Armed convicted felons certainly fall into that category. I thank the hard working professionals who quickly resolved this important matter.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the East Baton Rouge Sheriff’s Office. It was prosecuted by Assistant United States Attorney Lyman E. Thornton III.
United States Settles False Claims Act Allegations Against Trinity Medical Pharmacy and Principals for More Than $2.2 MillionRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Trinity Medical Pharmacy, LLC, (TMP) and several of its principals have agreed to pay the United States $2,244,270.14 to resolve allegations that TMP violated the False Claims Act by knowingly billing TRICARE and other government programs for claims generated by illegal kickbacks and by knowingly omitting material information from TMP’s application to become a certified Express Scripts provider.
The settlement relates to TMP’s marketing and sale of compounded medicine that should be uniquely tailored to an individual patient’s need and is often extremely expensive. Between 2013 and 2015, TMP, formerly located in New Port Richey, billed TRICARE seeking millions of dollars in reimbursement for compounded medicine. At the time, Krutika Patel was TMP’s president and chief executive officer, Devan Patel was the company’s chief operating officer, Jay Martinez was TMP’s national sales director, and Nicholas Petrillo was the national account director and top sales representative.
The United States alleges that TMP and these individuals knowingly sought reimbursement for compounded medicine claims generated through illegal kickbacks to patients and providers. The United States also alleges that TMP knowingly failed to disclose a material fact—COO Devan Patel’s previous felony conviction—when seeking to become an authorized provider with Express Scripts. Express Scripts is the pharmacy benefit manager for TRICARE and several carriers associated with the Federal Employees Health Benefits Program (FEHBP).
“Protecting TRICARE and other federal health care programs from fraud is a priority of the U.S. Attorney’s Office,” said U.S. Attorney Chapa Lopez. “Those who defraud TRICARE misappropriate money intended to provide quality health care to members of our military and their families. We will continue to protect those who serve our country.”
“This settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that precious taxpayer dollars are not used for unjust enrichment by fraudulent providers. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse which negatively impacts critical programs such as TRICARE,” said Special Agent in Charge John F. Khin, Southeast Field Office.
“I would like to commend the work of our criminal investigators, their law enforcement partners, and the U.S. Attorney’s Office for their tireless efforts on this case,” said U.S. Office of Personnel Management Acting Inspector General Norbert E. Vint. “Their excellent work safeguards the integrity of the FEHBP and serves to protect the millions of Federal employees, retirees, and dependents who benefit from the program.”
“The improper CHAMPVA billings made by Trinity Medical Pharmacy diverted funds intended for the care of Veterans who honorably served in the Armed Forces of the United States,” stated David Spilker, Special Agent in Charge, VA Office of Inspector General. “The continued oversight of the companies that do business with VA, as shown in this investigation, safeguard the integrity of VA programs and funding.”
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida; the Defense Criminal Investigative Service; the U.S. Office of Personnel Management, Office of the Inspector General; and the Department of Veterans Affairs, Office of the Inspector General. Assistant United States Attorney Lindsay Saxe Griffin led the investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
U.S. Attorney Dunavant meets with Choctaw Indian Tribal Chief and the Native American Issues Subcommittee to Reduce Crime in Indian CountryRead the Press Release
Memphis, TN – Fighting violent crime and combating the drug epidemic are two of Attorney General Jeff Sessions’s top priorities. The Department is actively addressing violence against women and children in Indian country through partnerships with federal, tribal, state, and local law enforcement, investigating and prosecuting crimes, grant programs, training and technical assistance, and information sharing with tribes. Approximately 85 percent of the Department’s pending Indian country investigations relate to violate crime. The Department’s Office on Violence Against Women (OVW) has funded Tribal Special Assistant U.S. Attorneys (SAUSAs) to enhance prosecution of Indian country cases and strengthen relations and cooperation between federal and tribal law enforcement.
In April of 2018, U.S. Attorney Dunavant was selected to serve on three subcommittees of the Attorney General’s Advisory Committee (AGAC), including the Native American Issues Subcommittee. The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys.
The Native American Issues Subcommittee (NAIS) is the oldest subcommittee of the Attorney General’s Advisory Committee and is vital to the Department’s mission in Indian Country to build and sustain safe and secure communities for future generations. The NAIS is made up of U.S. Attorneys from across the United States whose districts contain Indian country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues that affect tribal communities. In the Western District of Tennessee, the Mississippi Band of Choctaw Indians maintains a tribal reservation and population in Lauderdale County, just outside of Henning, Tennessee.
"On July 5, 2018, I was honored to meet with U.S. Attorney Mike Hurst, Southern District of Mississippi, and the Mississippi Band of Choctaw Indians Tribal Chief Phyliss Anderson. I look forward to working with Chief Anderson to promote public safety in our Choctaw tribal community in West Tennessee. I also look forward to meeting with my U.S. Attorney colleagues from across the country in Tulsa, Oklahoma next week to discuss crime reduction strategies in Indian Country."
U.S. Attorney Attends OCDETF Conference in Kansas CityRead the Press Release
KANSAS CITY, MO – United States Attorney Ron Parsons attended the Organized Crime Drug Enforcement Task Forces (OCDETF) West Central Regional Conference in Kansas City, Missouri, on August 7-8, 2018. Also in attendance was Assistant U.S. Attorney and Deputy Criminal Chief John E. Haak, who is the OCDETF Coordinator for the District of South Dakota.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the U.S. Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.
The Program operates nationwide and combines the resources and unique expertise of numerous federal agencies in a coordinated attack against major drug trafficking and money laundering organizations. The OCDETF strategy, under the direction of the Deputy Attorney General, aims to focus federal drug resources on reducing the flow of illicit drugs and drug proceeds by identifying and targeting the major trafficking organizations, eliminating the financial infrastructure of drug organizations by emphasizing financial investigations and asset forfeiture, redirecting federal drug enforcement resources to align them with existing and emerging drug threats, and conducting expanded, nationwide investigations against all the related parts of the targeted organizations.
Two Garrard County Men Indicted for $14.6 Million Tax Fraud SchemeRead the Press Release
LEXINGTON, Ky. – According to court records unsealed yesterday, two Garrard County, Ky. men have been charged with engaging in a massive tax fraud scheme, involving more than $14 million.
As alleged in the indictment, 47-year-old Clarence Michel Jr. and 49-year-old Warren Griffin II failed to pay $14,671,184 in payroll taxes, owed by various staffing companies that they operated between 2012 and 2016. Specifically, the indictment alleges Michel and Griffin withheld payroll taxes from their employees’ paychecks; but instead of paying that money over to the Internal Revenue Service, they instructed an employee to write checks to them. The indictment further alleges that, to hide this scheme, Michel and Griffin changed the names of their companies and started new companies under the names of various nominee owners. Similarly, the indictment charges Michel and Griffin with aiding and assisting in the preparation of false personal tax returns, for tax years 2012 through 2015.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, jointly announced the indictment.
The investigation preceding the indictment was conducted by the Internal Revenue Service-Criminal Investigation. The indictment was presented to the grand jury by Assistant U.S. Attorney Dmitriy Slavin.
Michel is scheduled to appear in court at 1:30PM, today. Griffin previously appeared in the Southern District of Illinois, where he was arrested. His appearance in Kentucky has not yet been set. For the conspiracy charge and the charges of failing to pay over payroll taxes, each defendant faces up to 5 years in prison and a fine of $250,000. For the false statements on their personal taxes, each faces 3 years in prison and a $250,000 fine. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two District Men Sentenced to 8 1/2-Year Prison Terms for Armed Home Invasion on Capitol HillRead the Press Release
WASHINGTON – Barrett Harrington, 31, and Germar Fox, 35, both of Washington D.C., were sentenced today to 8 ½-year prison terms on charges stemming from an armed home invasion that took place in July 2016 near Capitol Hill, U.S. Attorney Jessie K. Liu announced.
Harrington and Fox pled guilty in June 2018, in the Superior Court of the District of Columbia, to the charge of first-degree burglary while armed. The pleas, which were contingent upon the Court’s approval, called for each defendant to be sentenced to 102 months of incarceration. The Honorable Kimberly S. Knowles accepted the pleas and sentenced the defendants accordingly. Following their prison terms, both men will be placed on five years of supervised release.
According to the government’s evidence, the burglary took place at about 5:30 p.m. on July 15, 2016, with both Harrington and Fox conspiring to take items of personal property from the victim while he was present in his apartment in the 1000 block of New Jersey Avenue SE. Fox was armed with a firearm during the crime. According to the evidence, Harrington, Fox, and a third man conspired to commit the crime. The third man previously befriended the victim, but that was actually a ruse. On the day of the home invasion, the third man and the victim were together. The third man stepped out and informed Harrington and Fox that he was alone with the victim in the apartment. Harrington and Fox then barged into the apartment, bound the victim with duct tape, placed a pillow case over his head, assaulted him with the gun, and robbed him of his safe with thousands of dollars in cash and other items.
As they made their escape, a passerby noted the license plate of the getaway car, and provided it to police. Further investigation by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office, including fingerprint and DNA evidence, led to the arrests of the defendants. Harrington was arrested on June 24, 2017 and Fox was arrested on July 11, 2017. Both have been in custody ever since. The case against the third man remains pending.
In announcing the sentences, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance of the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Veronica Sanchez, Denise Cheung, and Stephen Rickard; Paralegal Specialists Tiffany Fogle and Donice Adams; Victim/Witness Advocate James Brennan; Litigation Technology Specialist Anisha Bhatia, and Criminal Investigator John Marsh.
Finally, she commended the work of Assistant U.S. Attorneys Kamil Shields, Alyse Constantinide and Louis Manzo, who investigated, indicted and prosecuted the matter.
Tucson Refugees Arrested for Immigration FraudRead the Press Release
TUCSON, Ariz. - On August 8, 2018, a federal grand jury in Tucson returned an eleven-count indictment against Mohamed Abdirahman Osman, 28, and Zeinab Abdirahman Mohamed, 25, both living in Tucson, Ariz., for violations of false swearing in an immigration matter and false statements to a government agency.
The indictment alleges that Osman and Mohamed, while living in China, applied for and were granted refugee status in 2014. The husband and wife entered the United States and have been living in Tucson since the time of their entry. In June 2015, Osman and Mohamed submitted applications for Legal Permanent Residence Status to U.S. Citizenship and Immigration Services. The indictment further alleges that material submitted in support of their refugee applications and their applications for Legal Permanent Residence Status contained false, fictitious, and fraudulent statements. The alleged fraudulent statements included Osman’s true name and nationality and denial of his association with members of a designated terrorist organization. Both defendants were arrested on Aug. 10, 2018.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation in this case was conducted jointly by the Federal Bureau of Investigation and the Department of Homeland Security through the Joint Terrorism Task Force.
The prosecution is being handled by Beverly K. Anderson, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR 17-01145-TUC-RCC (DTF)
RELEASE NUMBER: 2018-102_ Osman_ Mohamed
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tonawanda Man Sentenced for Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dakkar Young, 23, of Tonawanda, NY, who was convicted of distribution of child pornography, was sentenced to serve 168 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in May 2017, the defendant uploaded eight pictures containing child pornography onto a social networking site. In December 2017, a search warrant was executed at the Young’s home and various electronics were seized. A forensic examination of the defendant’s cell phone revealed images of child pornography as well as videos of Young sexually abusing a child under the age of 16. As part of the plea, the defendant admitted to producing child pornography of the child.
The sentencing is the result of an investigation by the New York State Police ICAC Task Force, under the direction of Major Edward Kennedy, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Three Men Indicted on Identity Theft ChargesRead the Press Release
BOSTON – Three men were indicted yesterday in federal court in Boston with aggravated identity theft and false representation of a Social Security number. All three individuals were arrested and charged by criminal complaint on July 26, 2018, in a federal document and benefit fraud sweep.
Jose Lopez Rosado, 54, of Worcester; John Doe, whose true identity remains unknown, but who was residing in Lynn; and James Alfred Pena Guerrero, 30, a Dominican national residing in Dorchester, were each indicted on one count of aggravated identity theft and one count of false representation of a Social Security number. All three defendants are currently in custody.
According to court documents, Lopez Rosado escaped from prison in Puerto Rico in 1994 while serving a 40-year sentence for second degree murder. His true identity was discovered during the federal investigation into document and benefit fraud. He is currently in state custody on unrelated charges. The indictment alleges that Lopez Rosado falsely represented a number to be the Social Security number assigned to him on an application submitted to the Massachusetts Registry of Motor Vehicles (RMV) when the Social Security number was not his. By submitting the Social Security number of another individual on his application, he committed identity theft.
John Doe and Pena Guerrero were charged in separate indictments with falsely representing a number to be the Social Security number assigned to them on applications they submitted to the Massachusetts RMV when the Social Security numbers were not theirs; by doing so, they also committed identity theft.
The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. False representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement today. Valuable assistance was provided by the U.S. Marshals Service Puerto Rico Violent Offender Task Force. Special Assistant U.S. Attorney Karen Burzycki is prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.