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8 August 2018
Federal Inmate Sentenced on Weapon ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that a federal inmate was sentenced to 24 months in prison for possessing a weapon at the Federal Correctional Institution at Beckley. Stuart praised the investigation conducted by the Federal Bureau of Prisons.
“Well, it’s not another shank,” said United States Attorney Mike Stuart,” but Guerrero is the latest inmate that lengthened his prison stay by possessing a weapon.”
Richard Ray Guerrero, 33, pled guilty in April, admitting that on June 30, 2017, he possessed a weapon he had made consisting of two combination locks attached to a belt. Staff members at the prison recovered the weapon from Guerrero following an altercation he had with another inmate. Guerrero’s sentence will run consecutively to the sentence he is now serving.
The case was prosecuted by Assistant United States Attorney John File. The sentence was imposed by United States District Judge Irene C. Berger.
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Federal Indictment Charges Two MS-13 Gang Members with Murder in Aid of Racketeering and Other ChargesRead the Press Release
A federal grand jury sitting in Nashville, Tennessee today, returned a five count indictment, charging two members of the MS-13 gang with murder in aid of racketeering, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Oscar Degaldo Flores, aka Flaco, 24, of El Salvador, and Luis Colindres, aka Listo and Joe, 21, of Honduras, were also charged with conspiracy; witness tampering; using, carrying and discharging a firearm during and in relation to a crime of violence; and causing death through the use of a firearm.
The indictment alleges that on September 24, 2017, Flores and Colindres shot and killed an individual identified as “H.Z.” and also shot and killed another individual identified as “Y.H.,” in order to prevent that individual from communicating with law enforcement about the commission of their crimes, including the murder of “H.Z.”
If convicted, the defendants face up to life in prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Ahmed Safeeullah and Sunny A.M. Koshy of the Middle District of Tennessee and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
An indictment in merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
Father and Son Plead Guilty to Selling Fentanyl and Oxycodone on the Dark WebRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL LUCIANO and PHILIP LUCIANO, a father and son, pled guilty today to selling fentanyl and oxycodone over the “dark web,” including on AlphaBay. Fentanyl is a synthetic opioid that is significantly more potent than heroin, and is a major contributor to overdose fatalities. The defendants also admitted to selling fentanyl that substantially contributed to a victim’s non-fatal overdose in 2015. MICHAEL LUCIANO and PHILIP LUCIANO pled guilty before United States Magistrate Judge Katharine H. Parker, and were remanded into federal custody.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants’ fentanyl contributed to a victim’s overdose, which fortunately, the victim survived. Subsequently, the defendants used the dark web – a place where some criminals think they can hide – to sell fentanyl and oxycodone, two highly addictive and potentially lethal opioids. I commend our partners at HSI for bringing this father-son duo’s misconduct out of the dark.”
According to the allegations in the Complaint and the Indictment to which the defendants pled guilty, as well as statements made in court:
From at least in or about January 2015 through July 2017, MICHAEL LUCIANO and PHILIP LUCIANO conspired to distribute fentanyl, butyryl fentanyl (a fentanyl analogue), and oxycodone. They sold these narcotics both in person and – from at least February 2016 through July 2017 – over the dark web. In March 2015, the LUCIANOs sold fentanyl to a repeat customer who overdosed, was administered naloxone, taken to the hospital, and survived. The overdose victim sent text messages to PHILIP LUCIANO from the hospital, stating, “I called you / Your dad at the house and saw him / I got back home and shot some. I thought it might have been too much, especially considering my last dose of sub was Saturday. I became unresponsive and my friend called an ambulance. They gave me narcan and I’m at the hospital now / Can I settle up and get 60 more tomorrow?” PHILIP LUCIANO replied, “Give me a call when u can.”
Despite this overdose in 2015, the LUCIANOs continued to sell drugs, including over the darkweb in 2016 and 2017. On AlphaBay, they sold narcotics using the vendor name “Zane61.” AlphaBay customers repeatedly provided positive feedback on fentanyl and oxycodone they purchased from Zane61. One of the LUCIANOs’ AlphaBay customers wrote, for example: “Great stealth, fast shipping, legit product. Perfect 10/10.” During a confession in July 2017, MICHAEL LUCIANO told HSI agents, among other things, that PHILIP LUCIANO had handled the technological aspects of their drug transactions over the darkweb, PHILIP had reported to MICHAEL drug orders they had received online, and MICHAEL had shipped the narcotics, via the United States Postal Service, to the LUCIANOs’ customers.
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MICHAEL LUCIANO, 59, and PHILIP LUCIANO, 30, both of Staten Island, each pled guilty to one count of conspiracy to distribute and possess with intent to distribute three controlled substances – fentanyl, butyryl fentanyl (a fentanyl analogue), and oxycodone. This charge carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the defendants’ sentences will be determined by the judge. Sentencing has been scheduled for November 8, 2018, before United States District Judge Lewis A. Kaplan.
Mr. Berman praised HSI for its outstanding work on the investigation. Mr. Berman also thanked the U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the New York City Police Department for their valuable assistance in this investigation.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
FBI Agents Arrest Tucson Lawyer and his Assistant on Federal Obstruction of Justice Related ChargesRead the Press Release
This morning in Tucson, AZ, FBI agents arrested a local attorney and his assistant for allegedly obstructing justice, tampering with a witness and assisting an offender in avoiding apprehension in a criminal case, announced United States Attorney John F. Bash of the Western District of Texas and FBI Special Agent in Charge Michael DeLeon, Phoenix Field Office.
A federal grand jury indictment unsealed today charges 59-year-old Rafael F. Gallego and his 39-year-old assistant, Ricardo Gallego, with one count of conspiracy to obstruct justice; one count of conspiracy to commit false statements; one substantive count of obstruction of justice; one count of accessory after the fact; and, one count of conspiracy to tamper with a witness.
The indictment alleges that from January 2017 to October 2017, the defendants conspired to corruptly effect the administration of justice in a criminal matter pending in the United States District Court for the District of Arizona. The indictment alleges that the defendants provided false information to Homeland Security Investigations (HSI) agents, U.S. Customs and Border Protection (CBP) agents and an Assistant U.S. Attorney in the District of Arizona. The indictment further alleges that the defendants, having knowledge of the commission of a drug trafficking offense, provided assistance to the offender in order to hinder and prevent the offender’s apprehension, trial and punishment. The indictment also alleges that the defendants conspired to corruptly persuade an individual to provide false information to law enforcement investigators.
Upon conviction, the defendants face up to 20 years in federal prison for witness tampering; up to ten years in federal prison for obstruction of justice; and, up to five years in federal prison for the remaining conspiracy charges.
The FBI Phoenix Field Office’s Tucson Resident Agency is investigating this case with the assistance of HSI and CBP. The Pima County Sheriff’s Department assisted with today’s operation. Assistant U.S. Attorney Daphne Newaz of the Western District of Texas is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Eleven Defendants Charged in Conspiracy to Distribute Pure Methamphetamine and Heroin Resulting in the Seizure of over 20 Kilograms of Drugs and More Than $1 MillionRead the Press Release
Ocala, Florida – A federal indictment has been unsealed charging Charlie Wayne Harrison, Jr. (32, Leesburg), Trini Thomas, Jr. (34, Wildwood), Allison Nicole Valdez (32, St. Petersburg), James Edward Moss (34, LaGrange, Georgia), Dwayne Edward Moss (32, LaGrange, Georgia), Jasmine Janay Patterson (24, Wildwood), Georgiana Armenakis (40, Paisley), Derick Latrelle Woods (28, Belleview), Brian Adolph McLaren, Jr. (30, Ocala), Christopher Valsechi (28, Weirsdale), and Chantal Monique Harrison (28, Leesburg) with conspiracy to distribute 50 grams or more of methamphetamine. If convicted on all counts, each faces a maximum penalty of life imprisonment. The indictment also notifies Charlie Wayne Harrison, Jr. that the United States intends to forfeit his 2016 Porsche Panamera, 2014 Chevrolet Corvette, and 2008 Hummer H3, which are alleged to be traceable to proceeds of the offenses.
According to court records, Charlie Wayne Harrison, Jr. was the leader of a large-scale drug operation spanning Marion, Sumter, Lake, and Pinellas Counties. He and his co-conspirators are charged with distributing multi-kilogram quantities of pure crystal methamphetamine and heroin. During the investigation, the Drug Enforcement Administration seized 14.5 kilograms of pure crystal methamphetamine (96-100% pure), 5.5 kilograms of heroin, 19 firearms, and approximately 6 pounds of gold jewelry valued at approximately $95,000. In addition, law enforcement seized $1,171,353 in cash, alleged to be profits of Harrison’s drug organization.
“This investigation is evident of the law enforcement community’s ability to work together throughout various counties to fully investigate and bring to justice those involved in drug trafficking” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division.
“As subject-matter experts in violent crime, firearms and explosives,” said ATF Special Agent in Charge Daryl McCrary, “We will continue to work with our law enforcement partners to keep illegal firearms out of our communities.”
“FDLE is pleased to participate with our partners in the successful effort to stop a massive, multi-county drug operation,” said John Burke, Special Agent in Charge – FDLE, Jacksonville Regional Operations Center. “Florida families in this region are now safer and more secure thanks to the combined work of law enforcement and the U.S. Attorney’s Office.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration (Gainesville Resident Office) in partnership with the Unified Drug Enforcement Strike Team in Marion County, as well as the Marion, Lake, and Sumter County Sheriffs’ Offices, the Florida Department of Law Enforcement, the St. Petersburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tysen Duva.
Dubuque Woman Pleads Guilty to Distributing HeroinRead the Press Release
A woman who distributed a fatal dose of methadone pled guilty on August 6, 2018, in federal court in Cedar Rapids.
Brianna Marie Martin, age 24, from Dubuque, Iowa, was convicted of one count of distribution of heroin.
Prior court documents reflect that on July 19, 2016, the Dubuque Drug Task Force investigated the death of an individual who had obtained heroin by using Martin as a connection to a heroin dealer. At the plea hearing, Martin admitted she had facilitated the heroin transaction. An autopsy determined that this individual died as a result of mixed drug toxicity involving methamphetamine and heroin. On July 28, 2016, the Dubuque Drug Task Force utilized a confidential source to arrange a controlled buy of heroin through Martin from the same drug dealer. At the plea hearing, Martin admitted that, during the July 28 controlled buy, she distributed heroin to the confidential source.
Martin also admitted that in July 2015, she was participating in a drug treatment program in Galena, Illinois. As a part of that program, she obtained a “take home” dose of methadone on a Saturday, for use on Sunday when the methadone clinic was closed. Martin admitted she would sometimes sell her “take home” dose of methadone to others. She admitted that on July 12, 2015, she distributed her “take home” dose to other individuals. On July 13, 2015, one of those individuals was found unresponsive and later pronounced dead. An autopsy determined that this individual died of complications of acute methadone intoxication.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Martin was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Martin faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and up to a lifetime term of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1021-LTS.
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Drug Company Manager Admits Role in Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEFFREY PEARLMAN, 51, of Edgewood, N.J., pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to engaging in a kickback scheme that defrauded federal healthcare programs.
According to court documents and statements made in court, from approximately September 2012 until November 2015, PEARLMAN was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. The company first hired PEARLMAN as a sales representative and subsequently promoted him to the position of District Sales Manager. As a District Sales Manager, PEARLMAN was responsible for managing the company’s sales representatives who called on licensed healthcare providers in Connecticut, New York, New Jersey and Rhode Island.
In pleading guilty, PEARLMAN admitted that he and the sales representatives he managed induced certain physicians, advanced practice registered nurses (APRNs) and physicians’ assistants to prescribe Subsys by paying them to participate in numerous sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants in Connecticut and elsewhere, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners.
In 2013, PEARLMAN attended a dinner at a New Haven restaurant where a Connecticut healthcare provider was paid a speaker fee even though no other healthcare professionals were present, and no presentation of Subsys took place.
In a meeting that occurred with the same Connecticut healthcare provider in the spring of 2013, PEARLMAN told the provider that the more prescriptions of Subsys that the provider wrote, the more Speaker Programs PEARLMAN could provide. In June 2013, when these prescriptions were not initially being written as planned, PEARLMAN emailed the Insys sales representative who was responsible for calling on the provider and reiterated that per the “verbal agreement” PEARLMAN had made with the provider, the provider needed to write more Subsys prescriptions or he was “going to have tremendous difficulty in justifying more [speaker] programs.”
As a result of this scheme, Medicare Part D plans authorized payment for nearly 400 Subsys prescriptions made by the Connecticut healthcare provider, causing millions of dollars of losses. PEARLMAN personally profited from this scheme through inflated quarterly bonuses he received that were based in large part on the sales results of the sales representatives he managed.
PEARLMAN pleaded guilty to one count of conspiracy to violate the anti-kickback law, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000. Judge Arterton scheduled sentencing for October 31, 2018.
PEARLMAN was arrested on September 29, 2016. He is released on a $200,000 bond pending sentencing.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito, Sarah P. Karwan and Richard M. Molot.
Several other individuals affiliated with Insys Therapeutics, and medical practitioners involved in this kickback scheme, have been charged in the District of Connecticut and in other Districts across the United States.
U.S. Attorney Durham encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
District Men Indicted on Federal Charges in Heroin and Crack Cocaine ConspiracyRead the Press Release
WASHINGTON – Saint Vincent Harris, 22, and Anthony Dickey, 24, both of Washington, D.C., have been indicted on federal charges stemming from an alleged conspiracy to deal heroin and crack cocaine in Northwest and Southwest Washington. Harris also has been indicted on related federal firearms charges.
The indictment was announced by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Edwin C. Roessler Jr., Chief of the Fairfax County, Va. Police Department.
The indictment was returned on Aug. 7, 2018, by a grand jury in the U.S. District Court for the District of Columbia. Both men were arrested on the night of Aug. 7 during the execution of search warrants by law enforcement. Harris and Dickey were each indicted on one count of conspiring to distribute and possess with intent to distribute heroin and cocaine base. Harris also was indicted on four counts of unlawful distribution of heroin; four counts of unlawful distribution of cocaine base, and two related firearms offenses. The indictment includes a forfeiture allegation seeking all proceeds that can be attributed to the crimes.
Both men were arraigned this afternoon at a hearing before the Honorable G. Michael Harvey. They pled not guilty and were ordered held pending a hearing set for Aug. 13, 2018.
According to the government’s evidence, the drug conspiracy began in October 2017 and was still taking place. Harris and Dickey allegedly utilized a “stash house” in Northwest Washington, out of which crack cocaine and heroin were sold to members of the community. Drug customers from the District of Columbia and Virginia traveled to the location to purchase narcotics. During the course of the conspiracy, according to the evidence, multi-ounce quantities of both crack cocaine and heroin were sold. During one of the transactions, Harris also allegedly sold a firearm to a customer.
Harris faces a mandatory minimum of 10 years and a maximum of life in prison if convicted of the charges. Dickey faces a mandatory minimum of five years and up to 40 years in prison if convicted of the charge against him. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, and the Fairfax County Police Department. It is being investigated and prosecuted by the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
District Man Sentenced to 13 Years in Prison for Sexually Assaulting Teenage DaughterRead the Press Release
WASHINGTON – A 43-year-old man, formerly of Northwest Washington, D.C., was sentenced today to 13 years in prison for repeatedly sexually abusing his teenage daughter, U.S. Attorney Jessie K. Liu announced.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in March 2018, in the Superior Court of the District of Columbia, to charges of first-degree child sexual abuse and attempted second-degree sexual abuse of a minor. He was sentenced by the Honorable Danya A. Dayson. Upon completion of his prison term, the defendant will be placed on 10 years of supervised release. He also will be required to register as a sex offender for the remainder of his life.
According to the government’s evidence, the defendant sexually abused his daughter from age 12 to 16. On Sept. 25, 2017, he pressured his daughter into drinking so much alcohol that she became seriously ill and passed out. The next morning, he performed a sexual act on her. The victim reported the abuse shortly after this incident. On a call recorded by law enforcement between the defendant and the victim, the defendant admitted to surreptitiously giving the victim “Plan B” birth control medicine and instructed his daughter to lie to law enforcement about his actions.
The defendant was arrested on Sept. 29, 2017, and has been in custody ever since. At the time of this conduct, he was on supervised release after serving more than 11 years in prison on narcotics charges. He now will face revocation proceedings before the U.S. Parole Commission.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division. She also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocates Juanita Harris and Lezlie Richardson, Paralegal Specialist Tiffany Jones, and Assistant U.S. Attorneys Julianne Johnston and J. Matt Williams, who prosecuted the case.
Defendant Charged with Importation of More than 20,000 Fentanyl Pills at the San Ysidro Port of EntryRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – August 9, 2018
SAN DIEGO – Fernando Jesus Peraza, a U.S. citizen living in Tijuana, was arraigned in federal court today on charges of importing over 20,000 fentanyl pills in what is believed to be the largest seizure of fentanyl in pill form along the U.S.-Mexico border.
Peraza, who works in San Diego County, was arrested at the San Ysidro Port of Entry today at 2:30 a.m. According to court records, Peraza was the driver, registered owner and sole occupant of the vehicle. U.S. Custom Border & Protection officers initially contacted Peraza in preprimary inspection area but was then referred to secondary inspection, where officers found four packages concealed in the passenger side rear quarter panel. The pills tested positive for fentanyl but were designed to resemble M30s, or oxycodone.
At Peraza’s initial appearance today before U.S. Magistrate Judge Jill Burkhardt, the United States requested detention based on risk of flight. Judge Burkhardt scheduled a detention hearing for August 10, 2018 at 10:00 a.m. and a preliminary hearing for August 21, 2018 at 9 a.m.
Earlier this month, Cristian Araujo Aguirre, 19 of Tijuana, was charged with importing 11,490 fentanyl pills, 61 pounds of methamphetamine and 14 pounds of heroin. Aguirre was arrested at the San Ysidro Port of Entry on August 1, 2018. Aguirre is currently detained. His next court appearance is on August 31, 2018.
“This is the biggest fentanyl pill seizure we’ve seen along the Southwest Border, and it’s likely a national record,” said U.S. Attorney Adam Braverman. “I’m relieved that these pills are off the streets because of the vigilant work of law enforcement. But that relief is tempered by the fact that people are overdosing every day because they took fentanyl-laced pills just like these, oblivious to the deadly consequences.”
DEFENDANT Case Number 18MJ4376
Fernando Jesus Peraza Age: 38 Tijuana, Mexico
SUMMARY OF CHARGES
Importation of Controlled Substances
Maximum penalty: Ten years minimum to life; $1 million fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Customs & Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Convicted Sex Offender Pleads Guilty to Child Pornography ChargeRead the Press Release
ALEXANDRIA, Va. – A Fairfax man who is a registered sex offender pleaded guilty today to downloading images of child sexual abuse.
According to court documents, Christopher James Tator, 31, was discovered by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force making child pornography files available over an Internet file-sharing network. A computer forensic examination of devices seized from Tator’s residence during a search warrant revealed that he had used a computer to download child pornography videos from a Dropbox cloud storage account. Tator’s devices also contained hundreds of thumbnail images of children being sexually abused, many of which depicted the sexual abuse of infants. Tator is a registered sex offender as a result of a 2010 Prince William County conviction of attempting to take indecent liberties with children.
Tator pleaded guilty to receipt of child pornography by person with a prior conviction relating to aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor. He faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 40 years when sentenced on November 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Special Assistant U.S. Attorney Kyle P. Reynolds is prosecuting the case.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-294.
Convicted Felon Sentenced to Forty-Six Months of Imprisonment for Possessing A Firearm and AmmunitionRead the Press Release
SAN FRANCISCO –Kevin Mitchell was sentenced to 46 months in prison for possessing a firearm and ammunition after being previously convicted of a felony, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Edward M. Chen, United States District Judge.
Mitchell pleaded guilty to the charge on May 16, 2018. According to his plea agreement, Mitchell admitted that he was carrying a loaded firearm inside his vehicle in San Francisco on December 15, 2017. At the time, he was a convicted felon and was not eligible to possess a firearm. The firearm was a .45 caliber handgun with a large capacity magazine attached to it. In additions, the magazine contained twenty-six rounds of ammunition. On March 1, 2018, a federal grand jury indicted Mitchell charging him with one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
In addition to the prison term, Judge Chen also ordered Mitchell to serve a three-year term of supervised release to begin at the conclusion of his prison term.
Assistant United States Attorney Neal C. Hong is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the San Francisco Police Department.
Congressman Christopher Collins and Others Charged in Manhattan Federal Court with Insider Trading and Lying to Federal Law Enforcement AgentsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of CHRISTOPHER COLLINS, a Congressman representing the 27th District of New York, CAMERON COLLINS, the son of CHRISTOPHER COLLINS, and STEPHEN ZARSKY, the father of CAMERON COLLINS’s fiancée, on charges of participating in a scheme to commit insider trading relating to securities of Innate Immunotherapeutics (“Innate”), an Australian biotechnology company on whose Board of Directors CHRISTOPHER COLLINS served. As alleged in the Indictment, in June 2017, CHRISTOPHER COLLINS, who possessed material, nonpublic information through his service on Innate’s board of directors, betrayed his duties of trust and confidence to Innate by providing inside information to his son, CAMERON COLLINS, about confidential drug trial results so that his son and others, including ZARSKY, could trade before the drug trial results were publicly announced. As a result of CHRISTOPHER COLLINS’s illegal tips, CAMERON COLLINS, ZARSKY, and others who received the inside information avoided a total of approximately $768,000 in losses. When later interviewed by the FBI, CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY each made false statements to cover up their participation in the insider trading scheme.
CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY are each charged with conspiracy, securities fraud, wire fraud, and making false statements to the FBI. All three defendants surrendered this morning and will be presented and arraigned at 2:30 p.m. today before United States District Judge Vernon S. Broderick in federal court in the Southern District of New York.
In a separate action, the United States Securities and Exchange Commission (“SEC”) filed a civil action against CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY.
U.S. Attorney Geoffrey S. Berman said: “Congressman Christopher Collins is charged with insider trading and lying to the FBI, as are his son, Cameron Collins, and Stephen Zarsky, the father of Cameron’s fiancée. As alleged, Christopher Collins tipped confidential corporate information to his son, who traded on the inside information and passed it on to others, including Zarsky. Zarsky allegedly also traded on the information and tipped others. Representative Collins, who, by virtue of his office, helps write the laws of this country, acted as if the law did not apply to him. These charges are a reminder that this is a nation of laws, and everyone stands equal before the bar of justice. The charges demonstrate again that no matter what the alleged crime, or who allegedly committed it, we stand dedicated to the pursuit of justice, without fear or favor.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Congressman Christopher Collins sat on Innate Immunotherapeutics’ Board of Directors for a period of more than three years, spanning the run-up to the company’s clinical drug trial announcement in 2017. When he received confidential information that the drug had failed its trial, he tipped off investors with whom he shared a personal relationship, as we allege. Congressman Collins thought giving his family and friends a heads-up about material, nonpublic information would benefit them in the long run, but here's a better inside tip for those who think they can play by different rules: Access to this kind of information carries with it a significant responsibility, especially for those who hold a position of trust in our society. Act honorably and in accordance with the law, and do not lie to a special agent of the FBI.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
The Insider Trading Scheme
The Scheme
In or about June 2017, CHRISTOPHER COLLINS, who, in addition to serving on Innate’s board of directors, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, CHRISTOPHER COLLINS learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”). The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, CHRISTOPHER COLLINS tipped his son, CAMERON COLLINS, who was also a substantial Innate shareholder, so that CAMERON COLLINS could make timely trades and tip others before Innate publicly released the Drug Trial results. CAMERON COLLINS traded on the inside information and passed it to ZARSKY, as well as to three conspirators not named in the Indictment (“CC-1,” “CC-2,” and “CC-6”), so that they could utilize the information for the same purpose. ZARSKY, in turn, traded on the information and used it to tip three more conspirators not named in the Indictment (“CC-3,” “CC-4,” and “CC-5,”) so that they too could engage in timely trades in Innate stock. All of the trades preceded the public release of the negative Drug Trial results.
In total, these trades allowed CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY, as well as CC-1 through CC-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public.
The Drug Trial Results
In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416. Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416. Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.
The Drug Trial was widely expected to be completed around the summer of 2017. For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including CHRISTOPHER COLLINS, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.” As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive. The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017. These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis. The results were not publicly released at that time. Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”). Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement.
Dissemination of the Drug Trial Results
On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s board of directors, including CHRISTOPHER COLLINS. The email explained to Innate’s board of directors for the first time that the Drug Trial had been a failure. The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’” The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news. . . .”
At the time CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., CHRISTOPHER COLLINS replied to the email, stating, in part, “Wow. Makes no sense. How are these results even possible???” After responding to the Innate CEO’s email, CHRISTOPHER COLLINS called his son, CAMERON COLLINS. They traded six missed calls between 7:11 p.m. and 7:15 p.m.. At 7:16 p.m., CHRISTOPHER COLLINS and CAMERON COLLINS spoke for more than six minutes. During that six-minute phone call, CHRISTOPHER COLLINS told CAMERON COLLINS, in sum and substance, that MIS416 had failed the Drug Trial.
CHRISTOPHER COLLINS did not trade himself, and his Innate stock ultimately declined by millions of dollars in value when the Drug Trial results were made public on June 26, 2017. As CHRISTOPHER COLLINS well knew, however, he was virtually precluded from trading his own shares for practical and technical reasons. For example, CHRISTOPHER COLLINS was already under investigation by the Office of Congressional Ethics (“OCE”) in connection with his holdings in, and promotion of, Innate. Indeed, he had been interviewed by OCE personnel on or about June 5, 2017, just 17 days earlier. Accordingly, he did not trade his own stock and instead tipped CAMERON COLLINS.
Trading and Tipping by CAMERON COLLINS and ZARSKY
CAMERON COLLINS began placing orders to sell his Innate shares the morning after he received inside information from CHRISTOPHER COLLINS. Between the morning of Friday, June 23, 2017, and the close of the market on Monday, June 26, 2017, CAMERON COLLINS sold approximately 1,391,500 shares of Innate stock. These sales allowed CAMERON COLLINS to avoid approximately $570,900 in losses.
Furthermore, after learning the Drug Trial results from CHRISTOPHER COLLINS, on or about the night of June 22, 2017, CAMERON COLLINS provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement: (1) his now fiancée, CC-1; (2) ZARSKY and ZARSKY’s wife, CC-2; and (3) CAMERON COLLINS’s friend, CC-6. Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information.
On or about the morning of June 23, 2017, ZARSKY provided the negative Drug Trial results that he had learned from CAMERON COLLINS and CC-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, CC-3; (2) his sister, CC-4; and (3) his longstanding friend, CC-5. Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.
Concealment of Trading
After the Public Announcement, CHRISTOPHER COLLINS took steps to prevent the public from learning that CAMERON COLLINS had sold significant portions of his Innate stock on or about June 23, 2017, and June 26, 2017, before the Public Announcement. For example, on or about June 28, 2017, one of CHRISTOPHER COLLINS’s staff members issued a statement to a local reporter. This statement stated that “Neither Christopher Collins, [nor] his daughter . . . have sold shares prior, during or after Innate’s recent stock halt,” and that “Cameron Collins has liquidated all his shares after the stock halt was lifted, suffering a substantial financial loss.” This statement was written in a manner designed to mislead the public into believing that CAMERON COLLINS had not sold any Innate shares prior to the Public Announcement. As CHRISTOPHER COLLINS explained in an email about press coverage surrounding Innate, “We want this to go away.”
False Statements to the FBI
On or about April 25, 2018, Special Agents from the FBI separately interviewed CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY. During these interviews, and as detailed in the Indictment, CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARSKY made false statements to the FBI to cover up their participation in the insider trading scheme.
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A chart identifying the charges and the maximum penalties applicable to CHRISTOPHER COLLINS, CAMERON COLLINS, and ZARKSY is below.
Count
Charge
Defendants
Maximum Penalty
1
Conspiracy to commit securities fraud (18 U.S.C. § 371)
All
5 years in prison
2
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
CHRISTOPHER COLLINS; CAMERON COLLINS
20 years in prison
3
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
All
20 years in prison
4
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
CHRISTOPHER COLLINS; CAMERON COLLINS
20 years in prison
5-7
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
All
20 years in prison
8
Securities fraud (15 U.S.C. §§ 78j(b) & 78ff; Title 18 U.S.C. § 2)
CHRISTOPHER COLLINS; CAMERON COLLINS
20 years in prison
9
Conspiracy to commit wire fraud (18 U.S.C. §§ 1349)
All
20 years in prison
10
Wire fraud (18 U.S.C. §§ 1343 & 2)
All
20 years in prison
11
False Statements (18 U.S.C. §§ 1001 & 2)
CHRISTOPHER COLLINS
5 years in prison
12
False Statements (18 U.S.C. §§ 1001 & 2)
CAMERON COLLINS
5 years in prison
13
False Statements (18 U.S.C. §§ 1001 & 2)
STEPHEN ZARSKY
5 years in prison
Defendants’ Ages and Residences
Defendant
Residence
Age
Christopher Collins
Clarence, New York
68
Cameron Collins
Morristown, New Jersey
25
Stephen Zarsky
Summit, New Jersey
66
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the work of the FBI and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Scott Hartman, Robert W. Allen, Max Nicholas, and Damian Williams are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Colorado Business Owner Pleads Guilty to $7 Million Biodiesel Tax Credit Fraud SchemeRead the Press Release
A Colorado business owner pleaded guilty today to conspiracy to impair and impede the Internal Revenue Service (IRS) for his role in a $7.2 million renewable fuel tax credit scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Calvin Glover of Parker, Colorado, owned Colorado-based renewable fuel company, Shintan, Inc. Glover conspired with others to file more than $7 million in false claims for refundable fuel tax credits with the IRS. Glover signed at least 23 false tax returns that claimed over $7.2 million in bogus refundable biodiesel mixture tax credits. Based on these false claims, the IRS issued over $7 million in refunds to Shintan Inc. After receiving the refunds checks, Glover deposited the checks into a bank account that he controlled and then transferred the proceeds to his co-conspirators.
In response to two grand jury subpoenas issued during the investigation, Glover provided false documents and information to investigators and met with co-conspirators to concoct a false story, all intended to obstruct the IRS’ ongoing criminal investigation.
Glover faces a maximum sentence of 5 years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation and Environmental Protection Agency Criminal Investigation Division, who investigated the case, and Tax Division Trial Attorneys Leslie A. Goemaat and Arthur J. Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website: www.justice.gov/tax.
Butts County Convicted Felon Sentenced for Possessing A Firearm Under Project Safe NeighborhoodsRead the Press Release
ATHENS: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that today, Benjamin Blackburn, aged 50, of Jackson, Georgia, was sentenced to 43 months imprisonment for Possession of a Firearm by a Convicted Felon by United States District Judge C. Ashley Royal in Athens.
At his plea hearing, Mr. Blackburn admitted that on June 29, 2017, officers with the Athens-Clarke County Police Department and Federal Bureau of Investigation executed a search warrant at his residence. The warrant authorized a search for a revolver, bullet holes inside the house, ammunition, and any other firearms owned by Mr. Blackburn. Mr. Blackburn also had an active arrest warrant in Athens-Clarke County for Aggravated Assault-Strangulation, Battery, and Possession of a Firearm by a Convicted Felon, all arising from an alleged June 10, 2017 assault. Mr. Blackburn refused to exit the residence, ultimately leading to law enforcement deploying multiple CS gas rounds into the home before a SWAT team was able to apprehend Mr. Blackburn. A subsequent search revealed an FN Herstal Police Shotgun and a Taurus, .38 caliber revolver.
Mr. Blackburn was prohibited from possessing a firearm due to convictions for Felony Possession of a Controlled Substance in Williamson County, Texas in 1986; Felony Possession of Methamphetamine in Williamson County, Texas in 1989; and Aggravated Assault with a Deadly Weapon in Travis County, Texas in 2000.
“Mr. Blackburn has a demonstrated history of violence, and as a felon, he never should have picked up a gun,” said U.S. Attorney Charles E. Peeler. “Now he is headed to federal prison, from which there is no parole. I thank our local and federal law enforcement partners who worked together to bring Mr. Blackburn safely to justice.”
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Athens-Clarke County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Peter D. Leary prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Buffalo Man Convicted on State Murder Charge Sentenced on Federal Heroin ChargeRead 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 Jeffrey Brown, 43, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and distribute, 100 grams or more of heroin, was sentenced to serve 120 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on November 17, 2016, law enforcement officers conducting a drug investigation arrested the defendant when he arrived at a pre-arraigned location to conduct a drug transaction. As Brown was being taken into custody, he dropped a bag of heroin. Subsequent investigation determined that the defendant had previously purchased 700 grams of heroin.
In January 2018, Brown pleaded guilty to Manslaughter in the 1st Degree in New York State Court and is awaiting sentencing on that conviction.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Biotechnology Executive Convicted of Defrauding Investors and Making False Statements to Federal Law EnforcementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the conviction in Manhattan federal court of PATRICK MURACA for wire fraud and making false statements. The jury found MURACA guilty on both counts of the Superseding Indictment following a trial before United States District Judge Ronnie Abrams.
U.S. Attorney Geoffrey S. Berman stated: “Patrick Muraca, who promised investors their money would be used to expand his businesses, instead used those funds for personal expenses, including rent, payments on two mortgages, and expenses related to his fiancée’s restaurant. Thanks to the investigative work of the FBI, Muraca has been convicted of his fraudulent scheme.”
According to the allegations contained in the Complaint, the Superseding Indictment, and the evidence presented in Court during the trial:
In 2016, MURACA, the former President of Nuclea Biotechnologies, Inc., founded two new businesses: NanoMolecularDX LLC (“NMDX”) and MetaboRx LLC (“Metabo”). Between 2016 and July 2017, MURACA solicited and obtained more than approximately $1 million from investors by making false and misleading representations that the investors’ money would be used to expand the business of NMDX and Metabo. MURACA then misappropriated hundreds of thousands of dollars of investors’ funds and used the misappropriated money for personal expenses. For example, MURACA spent tens of thousands of dollars of investor funds on rent, utilities, and food distributor expenses related to the operation of a restaurant owned by his fiancée. In addition, MURACA wrote more than approximately $175,000 in checks to himself from the bank accounts associated with NMDX and Metabo. MURACA also used investor funds to make payments on his mortgage and the mortgage on a home belonging to his mother and for hundreds of dollars in purchases at a cigar store and a tattoo and piercing establishment, among other businesses.
MURACA was arrested by the Federal Bureau of Investigation (“FBI”) in July 2017. On November 17, 2017, MURACA met with a Special Agent with the FBI and an Assistant United States Attorney. In the course of the November 17, 2017 meeting, Muraca made a material false statement about his use of investor funds.
* * *
MURACA, 49, of Pittsfield, Massachusetts, was found guilty of one count of wire fraud, which carries a maximum term of 20 years in prison, and one count of making false statements to federal law enforcement, which carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. A sentencing date has not yet been set.
Mr. Berman praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys David Abramowicz, Katherine Reilly, and Christopher DiMase are in charge of the prosecution.
Bay Area Resident Sentenced to More Than Nine Years in Prison for Engaging in Illicit Sexual Conduct with A Minor in Foreign CountryRead the Press Release
SAN FRANCISCO – Douglas Peacock was sentenced today to 115 months in prison for traveling to a foreign country and engaging in illicit sexual conduct with a minor, announced United States Attorney Alex G. Tse and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Special Agent in Charge in Northern California and Northern Nevada Ryan L. Spradlin. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.
“Today, the Court imposed a sentence commensurate with the egregiousness of the crime committed,” said U.S. Attorney Tse. “This case demonstrates the borderless nature of crimes against children and this Office’s dedication to prosecute those crimes, protect the community, and bring justice to child victims and their families.”
“Homeland Security Investigations has one of the largest cadres of criminal investigators and allies globally that are highly trained and uniquely equipped to identify and arrest those who are involved in the exploitation of our most vulnerable citizens,” said Special Agent in Charge Spradlin. “Thanks to our work with our attaché in Jamaica, we were able to ensure this child molester was not only held accountable in a foreign country, but that he was prosecuted, will serve time, and be registered as sex offender here in the U.S. to help keep others safe from potential threat.”
Peacock, 44, of Foster City, pleaded guilty to the charge on April 25, 2018. In pleading guilty, Peacock admitted that he traveled from the United States to Jamaica on June 20, 2017, and on the following day engaged in illicit sexual conduct with a minor. Specifically, Peacock, while in the pool of a family-friendly resort in Jamaica, molested a six-year-old U.S. citizen. A federal grand jury indicted Peacock on November 2, 2017, charging him with one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c).
In addition to the prison term, Judge Breyer also ordered Peacock to serve a 10-year period of supervised release, which will begin after his prison term is over, and to register as a sex offender.
Peacock has been in federal custody since being returned to the United States on November 10, 2017, and will begin serving his sentence immediately.
The case is being prosecuted by Assistant U.S. Attorney Shiao Lee with the assistance of Kimberly Richardson and Marina Ponomarchuk. The case was investigated by HSI in San Francisco and Ohio with assistance from the HSI attaché in Kingston, Jamaica.
Albuquerque Man and Mexican National Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ruben Acosta, 48, of Albuquerque, N.M., and Juventino Villapando-Torrez, 40, a Mexican national, pled guilty in federal court to methamphetamine trafficking charges. Acosta entered his guilty plea yesterday and Villapando-Torrez entered his plea today. Both entered their guilty pleas without the benefit of plea agreements.
HIDTA Region III Narcotics Task Force officers arrested Acosta and Villapando-Torrez on Nov. 28, 2017, after the two men distributed approximately 2,422.6 grams (5.34 pounds) of methamphetamine to undercover law enforcement officers at the San Felipe Travel Center in Sandoval County, N.M.
Acosta and Villapando-Torrez were indicted on Dec. 20, 2017, and were charged with conspiracy to distribute methamphetamine in Bernalillo and Sandoval Counties, N.M., and distribution of methamphetamine in Sandoval County. According to the indictment, the defendants committed the offenses on Nov. 28, 2017.
At sentencing, the defendants each face a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Villapando-Torrez will be deported after completing his prison sentence. Both men remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Alexander Uballez.
The HIDTA – High Intensity Drug Trafficking Area – Program is a program of the White House Office National Drug Control Policy (ONDCP) that facilitates cooperation among federal, state, local and tribal law enforcement to foster intelligence sharing and to support the execution of effective enforcement operations aimed at dismantling drug trafficking organization in critical drug trafficking regions of the United States. The HIDTA Region III Narcotics Task Force is comprised of the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department.
2018 Indian Country Conference: Offering Hope to Victims in the Spirit of JusticeRead the Press Release
United States Attorney Ron Parsons announced that the 2018 Indian Country Conference: Offering Hope to Victims in the Spirit of Justice, was recently held in Bismarck, ND, on July 19-20, 2018, at the North Dakota Heritage Center.
U.S. Attorney Parsons provided opening remarks, along with officials from the District of North Dakota. The conference offered several speakers on a variety of topics. The range included presentations on Native Sexual Violence Victimology; Communication & Intervention - Knowing What to Say and How to Say It Matters; Building Effective Partnerships in Assisting Victims of Mass Casualty Incidents; and a session on how to avoid burn-out “I’ve Run Out of Fuel…Now What?” There were also several break-out sessions for the participants to choose from and attend.
The case presented for the mass casualty incident was that of Dylan Roof, the mass shooter in the Charleston, SC, church shooting of June 2015. Presenting were an FBI agent and Victim Witness Specialist from Charleston, and Victim Witness Coordinator Marlys Big Eagle from the District of South Dakota, who assisted with the victims during the Roof trial.
The conference was geared towards law enforcement officers, victim service providers, prosecutors, social workers, judges, physicians and other medical professionals, mental health therapists, counselors, educators, court service officers, corrections officers, child care providers, parents, community leaders, and other concerned individuals from the two-state region of North Dakota and South Dakota—especially those dealing with family violence issues in American Indian Communities.
One of the most important goals anyone in criminal justice can strive for is to ensure the victims are heard and respected, and the most important thing that any government does is protect the rights of its citizens.
To that end, the District of South Dakota is breathing new life into initiatives designed to help all communities, including those in Indian country, prosper:
- Emphasis on combatting violent crime harming Indian country;
- Reinvigoration of Project Safe Neighborhood to target the illegal use of firearms;
- Project Safe Childhood, to target sexual predators that would target or harm our children, including those who try to use the Internet to commit their crimes;
- Targeting the drug traffickers who plague our communities, whether in Indian country or elsewhere;
- New efforts to curb the spread of Opioids and related overdoses and deaths;
- Addition of two brand new prosecutor positions, one in Rapid City and one in Pierre, to focus on violent crime and drug trafficking in Indian country;
- Hosting an Indian Country Fellow from the DOJ Honors program, who will devote three years to prosecuting crime both in federal court and in Tribal Court on the Pine Ridge Indian Reservation;
- Suicide prevention – the U.S. Attorney’s office is partnering with Avera Health to hold a conference in Sioux Falls on September 6, 2018, on Addiction and Suicide: Communities in Crisis. The keynote speaker will be former NFL quarterback Ryan Leaf and it will include a panel on the alarming problem of suicide in Tribal communities, with Yvonne “Tiny” DeCory, Patricia Iron Shell-Hill, MD, and J.R. LaPlante.
Conference attendees were provided new tools and resources to continue the commitment and dedication to work for justice for victims of crime.
7 August 2018
Wood County Man Guilty of Federal ViolationsRead the Press Release
TYLER, Texas – A 65-year-old Mineola, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Travis E. Grindle pleaded guilty to theft of government funds today before U.S. Magistrate Judge John D. Love.
According to information presented in court, Grindle retired as a brakeman from Union Pacific Railroad and since 1994, he has been receiving federal disability payments from the Railroad Retirement Board. Recipients of such government benefits are obligated to report certain events that may affect continued eligibility, including the performance of any work or improvement of condition. For the years 2011-2015, Grindle failed to report that income from his truck leasing business exceeded annual earning limits for receipt of his disability benefits.
Under federal statutes, Grindle faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Railroad Retirement Board Office of Inspector General and prosecuted by Assistant U.S. Attorney Frank Coan.
####
Wichita Woman Pleads Guilty to Gun Store TheftRead the Press Release
WICHITA, KAN. - A Wichita woman pleaded guilty today to prying open a display case and stealing guns from a local store, U.S. Attorney Stephen McAllister said.
Chaelyn Nichole Aaron, 28, Wichita, Kan., pleaded guilty of one count of theft of firearms. In her plea, she admitted the crime occurred March 28, 2018, at an Atwoods store at 6235 N. Broadway. Aaron went into the store and used a small red crowbar to pry open a display case. She took seven handguns from the case and left the store.
Sentencing is set for Oct. 24. She faces a penalty of up to 10 years in federal prison and a fine up to $250,000. McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case.
Wichita Man Pleads Guilty to Buying Two Tiger PeltsRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty in federal court today to making a deal to buy two tiger pelts in violation of the federal Lacey Act, U.S. Attorney Stephen McAllister said.
Ret Thach, 38, Wichita, Kan., pleaded guilty to one count of violating the Lacey Act, which prohibits interstate sale or purchase of animals that are covered by the Endangered Species Act.
In his plea, Thach admitted he made an agreement to pay $8,000 for two tiger pelts to be delivered to him in Wichita. Thach also agreed to pay traveling expenses for a seller from Wisconsin to drive to Wichita to deliver the pelts. Thach did not know that the seller was an agent of the U.S. Fish and Wildlife Service working undercover.
According to court records, the agent informed Thach that selling the pelts across state lines was “absolutely illegal.” Thach told the agent he already owned “a lion and a lot of bears” and wanted to go ahead with the deal to buy the tiger pelts. Thach said he wanted the pelts for his home office.
Sentencing is set for Oct. 26. Thach faces a penalty of up to five years in federal prison and a fine up to $250,000. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Warren man charged in federal court with distributing heroin and crack cocaine, maintaining a drug houseRead the Press Release
A Warren man was charged in federal court with distributing heroin and crack cocaine and maintaining a drug house.
Robert J. Lang, Jr., 24, was arrested Tuesday.
Lang sold gram quantities of heroin and cocaine between February and June. He also used 1030 Mason Street in Warren as a place to sell and store drugs, according to an affidavit filed in the case.
Law enforcement agents from the DEA, TAG Law Enforcement Task Force and ATF searched the Mason Street house in March and found approximately one ounce of heroin and one ounce of crack cocaine, as well as surveillance equipment, syringes, Narcan, a money counter and an assault rifle magazine, according to the affidavit.
This case was investigated by the Drug Enforcement Administration, the TAG Law Enforcement Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant. U.S. Attorney David M. Toepfer.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Virginia Beach Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 10 years in prison for his role in dealing heroin at his recording studio while armed.
According to court documents, Michael David Smith, 38, was the target of a five-month-long investigation by Virginia Beach Police Department’s Special Investigations Detectives and DEA Agents. Smith was part of a large heroin conspiracy that included sources of supply Steven Nichols, Darien Everette, and Everette’s lookout Duane Jones. Nichols supplied heroin to Everette, who in turn supplied it to Smith at Smith’s Newtown Road studio while assisted by Jones. Smith then distributed the heroin to a confidential source via controlled purchases at least five times in September and October 2017.
At a controlled purchase in October 2017, the Virginia Beach SWAT team was waiting for Everette and Jones to deliver the heroin to Smith at the studio. They arrested the three of them, searched their bags, and executed a search warrant for the studio. Police recovered from Smith’s bag marijuana, several other illegal drugs, packaging material, and a Glock 19 handgun. In the studio they also found methamphetamine, cocaine, marijuana, several prescription medications, and $2631 in cash that included $1650 of DEA and Virginia Beach buy money used to purchase heroin from Smith. All four defendants later pleaded guilty. Nichols, Everette, and Jones await sentencing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorneys Kevin M. Comstock and William B. Jackson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-30, 2:18-CR-63 (Nichols), and 2:18-CR-23 (Everette).
Vancleave Man Sentenced to over 17 Years in Prison for Methamphetamine DistributionRead the Press Release
Gulfport, Miss. – Marcus Shanord Reddix, 35, of Vancleave, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 210 months in federal prison, followed by 3 years of supervised release, for possessing with intent to distribute methamphetamine in Vancleave, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze of the Federal Bureau of Investigation.
On January 11, 2017, Reddix sold methamphetamine to a confidential source from his home on the "Hill" in Van Cleave, Mississippi. Reddix had been distributing methamphetamine and cocaine from that locale for several years and law enforcement was able to make several purchases of methamphetamine from him. His sentence was reflective of his prior criminal history and his position in the organization.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
United States Attorney D. Michael Dunavant Announces Beth C. Boswell as Chief of the Criminal Division for the Western District of TennesseeRead the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant is pleased to announce the appointment of Beth C. Boswell as Chief of the Criminal Division for the Western District of Tennessee. This position was vacated when Joseph "Joe" Murphy was appointed as First Assistant United States Attorney.
Beth Boswell is a graduate of Cumberland University, Middle Tennessee State University, and South Texas College of Law. She started her path as a career prosecutor immediately after law school by working for the Harris County District Attorney’s office in Houston, Texas, one of the largest DA offices in the country. During her time there, Beth served as the Deputy Chief of the Misdemeanor Division, supervising and training over 50 Assistant District Attorneys.
Prior to joining the Department of Justice, Boswell served as the Deputy Chief Assistant District Attorney General for the 24th Judicial District Attorneys General Office in Paris, Tennessee for 16 years. During her service there, she was the Senior Trial Prosecutor covering a five-county district for all violent crimes and major drug cases.
U.S. Attorney D. Michael Dunavant said, "Beth Boswell is a talented and dedicated career prosecutor who has extensive experience in all types of cases across West Tennessee. She has demonstrated outstanding leadership in the supervision and training of prosecutors and law enforcement, and I am confident that she will manage the Criminal Division of our office with effectiveness and integrity. I have had the pleasure to serve with Beth as both a state and federal prosecutor, and I am proud to have her lead our Criminal Division to aggressively and fairly carry out the priorities of the Department of Justice in the Western District of Tennessee."
In 2011, she served as a Special Assistant U.S. Attorney for the Western District of Tennessee, responsible for federal criminal narcotics, firearm and Organized Crime and Drug Enforcement Task Force (OCDETF) prosecutions. From 2014 to 2016, Beth was hired as an Assistant United States Attorney in the Organized Crime and Drug Enforcement Task Force unit responsible for prosecuting large-scale, complex narcotics conspiracy cases, including cases connected to drug cartels and criminal street gangs.
Appointed in 2016 as OCDETF Chief/Assistant United States Attorney, Boswell currently supervises five AUSAs. Her responsibilities include managing the OCDETF program by working closely with regional and national counterparts. She also approves indictments, prosecution memoranda, plea agreements, cooperation agreements, and Title III applications and affidavits for the unit. In addition, she handles her own caseload, including violations of the Racketeer Influenced and Corrupt Organizations Act, Violent Crimes in Aid of Racketeering, and long-term investigations into drug trafficking organizations. In November 2017, Beth was designated as the Opioid Coordinator for the Western District of Tennessee.
In 2016, Beth was the recipient of the United States Attorney Award, for outstanding performance and distinguished service to the Western District of Tennessee. Beth has been a regular speaker and instructor in various areas of public safety, and has provided training to prosecutors, law enforcement, correctional officers, medical professionals, and the public.
During her career as a prosecutor, Beth Boswell has tried well over 300 felony cases to verdict, including large narcotics prosecutions, firearms violations, murders, rapes, robberies, and other violent crimes.
U.S. Attorney’s Office to Take Part in National Night OutRead the Press Release
Roanoke, VIRGINIA – The United States Attorney’s Office will join law enforcement and community leaders throughout the Western District of Virginia on Tuesday for events as part of the country’s National Night Out initiative.
National Night Out is an annual community-building campaign that promotes police-citizen partnerships and neighborhood camaraderie. The event provides an opportunity to develop and strengthen relationships between the community and law enforcement by bringing police and neighbors together under positive circumstances, to provide information about drug and crime prevention programs, and to make sure neighborhoods get to know the law enforcement officers who are dedicated to keeping them safe.
U.S. Attorney Thomas Cullen, as well as other management and prosecutors from the United States Attorney’s Office will participate in events at IX Park in Charlottesville and at Stonefield in Albemarle County. They will also ride on patrol with local police departments and participate in National Night Out events in Roanoke City, Roanoke County, Danville, and Bristol.
More than 16,000 communities and over 38 million community members are expected to take part in National Night Out events on Tuesday across the country.
U.S. Attorney's Office among numerous community partners to host daylong conference next month on the opioid epidemicRead the Press Release
The United States Attorney’s Office and Cleveland Clinic, together with numerous community partners, will be hosting a daylong conference on Sept. 6 focused on solutions to the opioid and narcotics epidemic.
The conference will take place at the Intercontinental Hotel, 9801 Carnegie Ave. It will mark five years since many of the partners first joined together to raise awareness about the growing heroin and opioid problem that had surfaced in Northeast Ohio and throughout the country. That conference resulted in a Community Action Plan which focused on solutions in four different areas: education and prevention, treatment, healthcare policy and law enforcement.
The 2013 conference and Community Action Plan led to the formation of the U.S. Attorney’s Office Heroin and Opioid Task Force, which was hailed as a national model and replicated across the country. Members of the group contributed to numerous achievements in the intervening years, including increasing access to Narcan, developing new protocols to how police handle drug overdose scenes, increased training for physicians about the potential side effects of prescription opioids, public awareness campaigns, and the formation of a consortium to coordinate the response from the various medical systems in Greater Cleveland, among others.
The conference on Sept. 6 will focus on how the crisis has changed in the past five years, and fashioning responses that incorporate best practices and lessons learned. The emphasis will be on refining the Community Action Plan and coordinating comprehensive responses to what is both a public health and law enforcement crisis.
“The scope and nature of the problem has changed, in part because of the introduction of fentanyl and carfentanil, so our responses need to evolve as well,” U.S. Attorney Justin Herdman said. “The hope is this conference will help coordinate the efforts to turn the tide on an epidemic that has caused a staggering amount of pain and loss in our community.”
“Conferences like this are so critical to our community. We need so many parts of our society to take action to have an impact on this terrible problem,” said David Streem, M.D., Section Head of the Alcohol and Drug Recovery Center at Cleveland Clinic. “First responders, treatment programs, the courts, hospitals, schools, the recovery community—these and so many more have important roles to play.”
The agenda for the Sept. 6 conference is still being finalized, but topics expected to be covered include the need to develop a common set of data that can be shared, expanding programs that have been shown to work, such as quick response teams, recovery coaches and medically assisted treatment, efforts to reduce the number of pain pills prescribed, and others.
Among the groups and organizations that have participated in the planning and/or are expected to present at the conference include: the U.S. Attorney’s Office, Cleveland Clinic, MetroHealth System, University Hospitals, St. Vincent Charity Hospital, Cuyahoga County, City of Cleveland, Cuyahoga County Medical Examiner’s Office, the ADAMHS Board of Cuyahoga County, Cuyahoga County Department of Health, Circle Health, Cleveland Division of Police, Drug Enforcement Administration, Federal Bureau of Investigation and others.
Use the link below to register:
http://survey.clevelandclinic.org/TakeSurvey.aspx?SurveyID=m6L0m8mLK
U.S. Attorney OpEd--Prosecutors Serve a Vital Role in Combatting the Opioid EpidemicRead the Press Release
http://bangordailynews.com/2018/08/07/opinion/contributors/prosecutors-serve-a-vital-role-in-combating-the-opioid-epidemic/
Two Marine Maintenance Companies Pay $2.8 Million to Settle False Claims Act InvestigationRead the Press Release
A marine maintenance company based in Alabama, and a rental company owned by the marine maintenance company executives, will pay the government more than $2.8 million to settle claims they improperly billed the Navy for rental equipment, announced U.S. Attorney Annette L. Hayes. International Marine and Industrial Applicators, LLC (IMIA) and Marine Equipment Supply, LLC (MES) were involved in maintenance work on the USS Reagan at the Puget Sound Naval Shipyard in Bremerton, Washington.
According to the settlement agreement, between February 2012 and October 2012, IMIA billed the government for equipment rented from MES, through a subcontractor that was used for hull preservation work on the USS Reagan. Under the Federal Acquisition Regulations (FARs), companies like IMIA and MES that are under “common control” are not allowed to bill the government for rental costs, except under limited circumstances that the government contends were not present here. Rather, the FARs treat such equipment as if it were owned directly by IMIA and thus limit compensation to the costs of ownership. IMIA did not disclose its relationship with MES to the Navy while it was presenting invoices for the USS Reagan project, which the government contends resulted in overbillings to the Navy in excess of $1.4 million. The government further contends that IMIA, with MES, knowingly presented such claims for unallowable costs to the Navy in violation of the False Claims Act.
“Government contracting regulations ensure a level playing field and the wise expenditure of taxpayer funds,” said U.S. Attorney Annette L. Hayes. “When we learn of evidence that a company has not been operating consistent with those requirements, we will investigate and prosecute as the facts require. I commend the military investigative agencies who put this case together and worked with my office to resolve it.”
The settlement agreement calls for the two companies to pay $2,860,948 to the government. Of that amount $1,430.474, or half the payment, represents restitution to the Navy for improperly billed costs. The claims resolved by this agreement are allegations only, and there has been no determination or admission of liability.
The matter was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the Defense Contract Audit Agency.
The settlement agreement is being handled by Assistant United States Attorney David East.
Topeka Man Sentenced for Possession of Child PornRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to 10 years in federal prison for possessing thousands of images of child pornography, U.S. Attorney Stephen McAllister said.
Ryan J. Singleton, 36, Topeka, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted emailing child pornography to a user who lived in Nashville. Investigators followed an electronic trail back to Singleton’s home in Topeka. They found more than 2,000 images and more than 6,000 videos of child pornography Singleton had stored on electronic devices.
McAllister commended Homeland Security Investigations and Assistant U.S. Attorney Christine Kenney for their work on the case.
Three Men Arraigned on Federal Theft Charges Arising Out of Scheme to Defraud Bureau of Indian EducationRead the Press Release
ALBUQUERQUE – Three men were arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging them with conspiring to defraud the United States by using credit cards issued by their employer, the Bureau of Indian Education (BIE), to purchase thousands of dollars of goods and services for their personal use between Aug. 2013 and Dec. 2016. Albuquerque residents Simon Nunez, Jr., 67, and David M. Parrish, 63, and Leland Martinez, 56, of Los Lunas, N.M., entered not guilty pleas during this morning’s proceedings, and were released under pretrial supervision pending trial, which has yet to be scheduled.
The nine-count indictment, which was filed on July 27, 2018, charges the defendants with conspiracy and theft from the United States. It also charges Nunez with making false statements to federal investigators. It alleges that the defendants committed the offenses between Aug. 2013 and Dec. 2016, in New Mexico. Parrish and Nunez voluntarily retired from BIE in Dec. 2016 when the investigation into the case was initiated, and Martinez was placed on administrative leave.
According to the indictment, BIE is a sub-department of the U.S. Department of the Interior (DOI). Parrish and Martinez were BIE employees authorized to make purchases for BIE using government-issued credit cards, who were supervised by Nunez, a BIE supervisory employee with the authority to approve or deny purchases made by Parrish and Martinez and who maintained records listing the justifications for the use of the government funds to make purchases.
Count 1 of the indictment, the conspiracy count, alleges that Nunez, Parrish and Martinez engaged in a scheme to misuse their government-issued credit cards for their personal use and the use of family members, and to misrepresent those purchases as authorized government purchases. Counts 2 through 8 of the indictment allege that from Aug. 2013 through Oct. 2016, the defendants embezzled more than $1000 from the United States. During that period, the defendants allegedly used government funds to purchase storage sheds, tarps, a chainsaw, hot water heaters, a brush mower, two laptops, clothing and shoes, tools, earphones, and other personal items and allegedly created false BIE records to justify the use of government funds to make those purchases. Count 9 of the indictment charges Nunez with making false statements to federal investigators of the DOI Office of Inspector General on Dec. 22, 2016.
If convicted of the charges in the indictment, the defendants each face a maximum statutory penalty of five years of imprisonment and a $250,000 fine on the conspiracy charge, and a maximum statutory penalty of ten years of imprisonment and a $250,000 fine on the theft of government funds charges. Nunez faces a maximum statutory penalty of five years of imprisonment and a $250,000 fine on the false statement charge. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Department of the Interior’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Nunez et al. IndictmentSpringfield Man Charged with Distributing HeroinRead the Press Release
BOSTON – A Springfield man was arrested today and charged in federal court in Springfield with distributing heroin.
Javier Vazquez, 29, was charged with two counts of distribution and possession with intent to distribute heroin.
According to the indictment that was unsealed today, Vazquez distributed heroin in Hampden County on June 21 and July 10, 2018.
The charge provides for a sentence of up to 30 years in prison, up to a lifetime of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southeast Texans Arrested in Methamphetamine ConspiracyRead the Press Release
BEAUMONT, Texas - U.S. Attorney Joseph D. Brown announced today that five individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.
On Aug. 7, 2018, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Beaumont, Port Neches, and Silsbee, Texas as the result of a joint investigation by the U.S. Drug Enforcement Administration and the Jefferson County Sheriff’s Office Joint Narcotics Task Force.
The operation resulted in the arrest of five defendants named in an indictment returned by a federal grand jury on July 12, 2018. According to the indictment, from March 2017 through December 2017, the defendants were involved in a drug trafficking organization that conspired to distribute methamphetamine in Jefferson, Hardin and Orange counties. Those arrested and named in the indictment are:
Brandon Robinson, 33, of Beaumont; Gedrick Morrissey, 27, of Beaumont; Roshawn Butler, 35, of Silsbee; Rudy Polanco, 44, of Groves; and
Jeremy Ross, 35, of Port Neches, Texas.The defendants are charged with conspiracy to possess with the intent to distribute methamphetamine. They are scheduled to make initial appearances before U.S. Magistrate Judge Keith F. Giblin on those charges today. If convicted, they face from 10 years to life in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration, the Jefferson County Sheriff’s Office Joint Narcotics Task Force, and the Beaumont Police Department and is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Slippery Rock Firearms Dealer Charged with Violating Federal Gun LawsRead the Press Release
PITTSBURGH, PA - A resident of Slippery Rock, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating firearm laws, United States Attorney Scott W. Brady announced today.
The two-count indictment named William Patrick Midberry, aka William Patrick Schmidt, age 37, of Slippery Rock, Pennsylvania, as the sole defendant.
According to the indictment, on September 8, 2017 and April 15, 2018, Midberry, a Federal Firearms Licensed dealer who operated the Slippery Rock Outfitters gun dealership, made false entries onto federal firearms purchase forms and sold firearms without performing background checks.
The law provides for a maximum sentence of not more than two years in prison, a fine of not more than $200,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) 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.
Sioux Falls Woman Sentenced for Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 6, 2018, by U.S. District Judge Roberto A. Lange.
Buffy Marie Clairmont, a/k/a Buffy Marie Clifford age 44, was sentenced to 28 months in federal prison, followed by 3 years of supervised release, a $500 fine, forfeiture of $227 in U.S. currency, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Clairmont was indicted by a federal grand jury on October 17, 2017. She pled guilty on May 23, 2018.
Beginning in at least January of 2012 and continuing through May of 2017, Clairmont received distributable quantities of methamphetamine from individuals that knew she intended to engage in further distribution of the methamphetamine. Some of the methamphetamine Clairmont received was distributed in and around the Rosebud Sioux Tribe Reservation and elsewhere in South Dakota. Clairmont admitted that it was reasonably foreseeable that over 50 grams of methamphetamine would be distributed during the course of the conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Clairmont was immediately turned over to the custody of the U.S. Marshals Service.
Saint Paul Man Charged with Illegal Export of Box Turtles to Hong KongRead the Press Release
United States Attorney Erica H. MacDonald announced a federal indictment charging RENE PATRICK VARGAS, 32, with illegally exporting box turtles to Hong Kong. VARGAS will make his initial appearance at a later date.
North American box turtle (genus terrapene) populations, native to the United States and Mexico, are in decline due to loss of habitat and illegal trade, including export to Hong Kong and China for use in food, traditional medicine, and to be kept as pets. Although box turtles are not currently threatened with extinction, they are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”) treaty, implemented as part of the Endangered Species Act, to prevent their further decline. It is illegal to export wildlife without prior approval and inspection by the U.S. Fish and Wildlife Service, as well as valid export licenses and permits.
As alleged in the indictment, from approximately June 1, 2017 through June 14, 2017, VARGAS completed forms for international shipment of three packages containing a total of 38 box turtles. The packages were falsely labeled as “toys” or “components” and were intended to be transported in interstate and foreign commerce in violation of the Lacey Act.
This case is the result of an investigation conducted by the United States Fish and Wildlife Service.
This case is being prosecuted by Assistant U.S. Attorney Miranda E. Dugi.
Defendant Information:
RENE PATRICK VARGAS, 32
Saint Paul, Minn.
Charges:
- Lacey Act false labeling, 3 counts
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The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Roanoke Valley Regional Drug Initiative Honored by Washington/Baltimore HIDTARead the Press Release
Roanoke, VIRGINIA – The Roanoke Valley Regional Drug Initiative was honored for its work during the Washington/Baltimore HIDTA Awards luncheon in Fairfax earlier today with the award for Outstanding Investigative Effort, United States Attorney Thomas T. Cullen and Roanoke County Police Chief Howard Hall announced.
The award, presented during HIDTA’s annual luncheon, was awarded to detectives and agents assigned to the Roanoke Valley Regional Drug Initiative [RVRDI] for their work on the investigation of a drug trafficking organization allegedly led by Monta Jordan. Members of the RVRDI worked with dozens of federal, state and local agencies to target members of the organization and bring charges against Jordan and others.
“We are extremely proud of the officers and agents who comprise the RVRDI,” U.S. Attorney Cullen stated today. “This federal, state, and local law-enforcement partnership is on the frontlines of the Roanoke Valley’s opioid epidemic, and we are hopeful that it will continue to take out major distributors and interdict these deadly drugs before they hit the streets.”
“We are extremely pleased with the cooperative efforts of our local, state and federal agencies in this investigation. The resources made possible through the Roanoke Valley Regional Drug Initiative continue to help us combat narcotics not only in Roanoke County, but also across our neighboring jurisdictions and throughout the entire Commonwealth of Virginia,” Roanoke County Police Chief Howard Hall said today.
What began as an investigation into a local drug trafficking operation later revealed alleged connections throughout the United States. According to filed court documents, in August of 2017, investigators intercepted a package sent from Arizona addressed to Jordan containing more than one-half kilogram of heroin and one-half kilogram of cocaine. Based upon further investigation conducted by the Roanoke Valley Regional Drug Initiative, a member of the Mid-Atlantic High Intensity Drug Trafficking Area, Jordan is now charged with conspiring to distribute more than 1000 grams of heroin, 400 grams of Fentanyl, 500 grams of methamphetamine, and 500 grams of cocaine. Jordan is also charged with firearms offenses related to his drug trafficking. All of these actions led to the dismantling of the organization and pending federal charges. Jordan’s trial is currently set for February 2019.
The Roanoke Valley Regional Drug Initiative is comprised of the Roanoke County Police Department, Roanoke City Police Department, Vinton Police Department, Salem Police Department, Virginia State Police, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, US Marshall's Service, Department of Homeland Security, US Postal Inspector, FBI, as well as the commonwealth attorneys from Roanoke City, Roanoke County, and Salem and the U.S. Attorney’s Office for the Western District of Virginia.
Real Estate Broker Sentenced for Role in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen real estate broker was sentenced today in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley.
Greisy Jimenez, 50, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to three years in prison, four years of supervised release, and ordered to pay a fine of $12,500. The court will determine issues of restitution and forfeiture on Aug. 29, 2018. In January 2018, Jimenez pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud.
Three co-conspirators involved in the scheme have been sentenced after pleading guilty to conspiracy to commit bank fraud. In June 2018, Jasmin Polanco, 37, a real estate closing attorney, was sentenced to 15 months in prison, three years of supervised release and ordered to pay $1,224,489 in restitution. In May 2018, Vanessa Ricci, 41, of Methuen, a mortgage loan officer, was sentenced to six months in prison, three years of supervised release and ordered to pay restitution of $963,730. In March 2017, Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced to time served and one year of supervised release to be served in home detention.
The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit, prosecuted the cases.
Rapid City Man Sentenced for Illegally Possessing a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Matthew Dubray, age 36, was sentenced on August 6, 2018, to 14 months in federal prison, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dubray was charged on January 24, 2017. The charge related to Dubray, who is prohibited from possessing firearms as he is a previously convicted felon, illegally possessing a Hi-Point, model C9, 9 mm pistol in July 2016 at Rapid City.
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 the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Dubray was immediately turned over to the custody of the U.S. Marshals Service.
Queens Man Charged in Superseding Indictment with Distributing Fentanyl Causing the Deaths of Two PersonsRead the Press Release
A 10-count superseding indictment was unsealed today in federal court in Brooklyn charging David Wickham with distributing fentanyl thereby causing the deaths of a man and a woman, distributing heroin and fentanyl thereby causing serious bodily injury to a man, and being a felon in possession of a firearm. The indictment charges Katelyn Trampler with possessing with intent to distribute, conspiring to distribute and distributing fentanyl and heroin. Wickham and newly added defendant Crystal Roberts are also charged with money laundering conspiracy. Roberts was arrested today and was ordered detained. Wickham and Trampler were previously arrested and are currently in custody. The defendants were arraigned this afternoon before United States District Judge Allyne R. Ross.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, Wickham’s distribution of dangerous opioids resulted in the deaths of a man and a woman and the near-death of a second man,” stated United States Attorney Donoghue. “The defendants sought to profit from other people’s addictions and put their own greed ahead of the public’s health and safety. This Office and our law enforcement partners will not rest until drug dealers and their associates are stopped and brought to justice for their crimes.” Mr. Donoghue expressed his grateful appreciation to the United States Bureau of Alcohol, Tobacco, Firearms and Explosives for its assistance in the investigation.
“These alleged criminals operated out of greed with no regard for the safety, or even life, of those they dealt fentanyl,” stated HSI Special Agent-in-Charge Melendez. “HSI understands the seriousness of the opioid epidemic and will continue to work with our partners to investigate and arrests those dealing this highly addictive and deadly drug within our communities.”
“The NYPD’s efforts to combat the opioid crisis took a step forward today with this indictment,” stated NYPD Commissioner O’Neill. “Our detectives, along with the professionals at HSI and the Eastern District of New York, will stop at nothing to keep New Yorkers safe by identifying, aggressively investigating and arresting anyone who traffics in illegal narcotics and the violence so often associated with such criminal behavior.”
As alleged in the superseding indictment and other court filings, between January 2017 and February 2018, Wickham and Trampler distributed fentanyl and heroin. On several occasions, Wickham represented the narcotics to be heroin—a much less potent narcotic—when he was actually distributing fentanyl. On or about July 30, 2017, Wickham distributed fentanyl which resulted in the overdose deaths of a man and a woman. Later, on December 13, 2017, Wickham distributed heroin and fentanyl, which resulted in the overdose of a man, who was seriously injured but revived with Narcan. At the time of his arrest on February 27, 2018, Wickham, a convicted felon, possessed a Cobra Enterprises FS380 semi-automatic pistol. Between approximately October 2017 and February 2018, Wickham and Roberts conspired to wire money from the United States to Panama to further their narcotics trafficking and conceal the true nature and ownership of the drug money.
As part of the government’s investigation, agents recovered cellular telephones from the defendants, including Roberts’ telephone which contained several videos. In one video dated February 20, 2018, after speaking with a customer Roberts and Wickham engaged in the following conversation:
ROBERTS: He’s gonna end up dying. He’s gonna kill himself.
WICKHAM: Yeah, you see it in his face?
ROBERTS: Yup. You ever known, you ever seen death in the face?
Later in the conversation, Roberts stated: “I’m saying before he tries to kill himself, he’s going to give me some bread. I don’t have time for that. You can kill yourself if you want to, I don’t want you to, but this is the game we play, and you’re going to have to give me some bread cause you took too much and your man’s took too much.”
According to the Centers for Disease Control and Prevention (CDC) and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. The increase in overdose deaths has been driven in large part by fentanyl—a drug that has been described as 50 to 100 times more potent than morphine. In New York, from 2014 to 2015, fentanyl overdose deaths rose 135 percent, while heroin overdose deaths rose 28 percent. According to the CDC’s latest report analyzing overdose deaths nationally, in 2016 synthetic opioid deaths—which includes fentanyl—more than doubled from 9,580 in 2015 to 19,413 in 2016.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Wickham faces a mandatory minimum sentence of 20 years’ imprisonment for both the death-resulting and the serious bodily injury-resulting charges and up to life imprisonment. Roberts faces up to 20 years’ imprisonment and Trampler up to 40 years’ imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution.
The Defendants:
DAVID WICKHAM (also known as “Wick” and “Dogg”)
Age: 35
Queens, New YorkKATELYN TRAMPLER
Age: 27
Queens, New YorkCRYSTAL ROBERTS (also known as “Crystal Wickham”)
Age: 28
Queens, New YorkE.D.N.Y. Docket No. 18-CR-72 (S-1) (ARR)
Prisoner Pleads Guilty to Intentionally Assaulting Two Victims with a Deadly WeaponRead the Press Release
Jackson, Miss. – Valentino Gonzalez, 31, pled guilty today before United States District Judge Daniel P. Jordan III to two counts of intentional assault with a deadly weapon, announced U.S. Attorney Mike Hurst.
In 2005, Valentino Gonzalez was sentenced to more than 24 years in federal prison after being convicted of conspiracy to murder. He is presently serving that sentence at the United States Penitentiary in Yazoo City, Mississippi.
In September 2017, Gonzalez lured another inmate into his prison cell. Gonzalez intended to physically harm the other inmate. Moments later, the lured inmate—and intended victim—fled, running away from Gonzalez’s cell. Armed with a shank, Gonzalez pursued his intended victim. Ultimately, he caught the victim and stabbed him repeatedly with the long, metal shank. When a correctional officer attempted to intervene, Gonzalez stabbed the officer in the hand. Both victims sustained serious injuries.
Gonzalez will be sentenced in Jackson by Judge Daniel P. Jordan III on November 9, 2018, and faces a maximum penalty of 30 years in prison, followed by up to 3 years of supervised release, and a $500,000 fine.
The case was investigated by the Federal Bureau of Prisons, Special Investigative Section.
Previously Convicted Felon Pleads Guilty to Heroin and Gun CrimesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to trafficking heroin while armed.
According to court documents, Vernon Lewis Petway, 39, a convicted felon, was caught in possession of roughly 97 grams of heroin and a firearm after transporting the heroin by bus from New York City into Norfolk.
The case is part of Operation Sand Dragon, a joint operation run by the Norfolk Police Department with assistance from the DEA, ATF, Homeland Security Investigations, and the Chesapeake Police Department. After an eight-month-long investigation, law enforcement arrested 44 suspects for their roles in distributing drugs. Twelve of the suspects were involved in gang activity, which was a major focus of the investigation. During the investigation, law enforcement recovered roughly 11 ounces of heroin, three pounds of cocaine, three pounds of marijuana, 24 ecstasy pills, and nine grams of methamphetamine. The total street value of the drugs was over $190,000. Law enforcement also recovered 12 firearms and over $85,000 in cash.
Petway pleaded guilty to possession with intent to distribute heroin, and possession of a firearm in furtherance of drug-trafficking crime. He faces a mandatory minimum of five years in prison and a maximum sentence of life when sentenced on November 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Larry D. Boone, Chief of Norfolk Police Department, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-34.
Pittsburgh Man Indicted on Social Security Fraud Related ChargesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
The five-count indictment names Gerald Edward Black, age 48, as the sole defendant.
According to the indictment, Black received and converted approximately $19,743.00 in Supplemental Security Income benefits to which he knew he was not entitled. Additionally, Black is charged with concealing and failing to disclose changes to his minor child’s living arrangements with the intent to deceive the Social Security Administration as well as knowingly and willfully making a false statement material to his minor child’s right to receive Supplemental Security Income benefits.
The law provides for a maximum total sentence of no more than 20 years in prison, a fine of no more than $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegally Possessing a RevolverRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named Robert Tippett, age 21.
According to the indictment, on or about May 4, 2018, Tippett possessed a loaded .357 caliber Smith & Wesson revolver. It is unlawful for Tippett, who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm.
The law provides for a maximum total sentence of ten years in prison, a fine of $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 of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierre Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 6, 2018, by U.S. District Judge Roberto A. Lange.
William Rivers, age 61, was sentenced to 14 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rivers was indicted by a federal grand jury on February 14, 2018. He pled guilty on May 23, 2018.
Rivers was convicted of Sexual Abuse in June 1992. As a result of this conviction, he is required to register as a sex offender. On December 30, 2017, the Pierre Police Department responded to a report of an assault at the Econo Lodge Motel in Pierre. The responding officers made contact with Rivers, determined he was out of compliance with the Sex Offender Registration and Notification Act, and subsequently arrested him for failure to register as a sex offender.
On January 13, 2018, Rivers was released on bond from the Hughes County Jail in Pierre. On January 22, 2018, Rivers registered as a sex offender with Cheyenne River Sioux Tribe Law Enforcement Services in Eagle Butte, South Dakota. Between January 13, 2018, and January 22, 2018, Rivers was aware that he was required to update his sex offender registration within three business days after each change of residence, employment or student status and, he failed to do so during that time period.
This case was investigated by the U.S. Marshals Service and the Pierre Police Department. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
Rivers was immediately turned over to the custody of the U.S. Marshals Service.
Pacifica Resident Sentenced to Two Years in Prison for Wire Fraud SchemeRead the Press Release
SAN FRANCISCO– Bitty Yu was sentenced to 24 months in prison for wire fraud, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Richard Seeborg, United States District Judge.
Yu, 69, of Pacifica, Calif., pleaded guilty to the wire fraud charge on March 20, 2018. According to her plea agreement, from about January 2013 through April 2017, Yu, along with others, engaged in a scheme to defraud an elderly married couple living in San Mateo of millions of dollars. Specifically, in 2013, Yu convinced the couple that she and others were involved in a real estate project and that the couple’s funds would be used to purchase10 acres of land in London, England, for the project. Yu and others claimed a deal was being brokered that would result in a $195 million return in commissions when the project was completed. Yu acknowledged that she and others made false statements to the couple on various occasions, ultimately lulling the couple into wiring funds on multiple occasions.
In total, the couple invested more than $4,000,000 in the bogus real estate project. Yu received over $1,000,000 for her role in the scheme. Yu admitted that she used the money she received from the couple for personal expenses including mortgage payments, personal credit account payments, automobile purchases, and federal and state income tax payments.
Yu was charged by information on January 31, 2018, with a single count of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to her plea agreement, she pleaded guilty to the charge.
In addition to the prison term, Judge Seeborg also sentenced the defendant to a three-year period of supervised release and ordered her to pay $1,000,000 in restitution. Yu will begin serving her sentence on October 9, 2018.
Assistant U.S. Attorney Chinhayi Cadet is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI.
Ongoing Federal Investigation Leads to Charges Against Three Former Top Buncombe County OfficialsRead the Press Release
ASHEVILLE, N.C. – Today, a federal grand jury in Asheville returned a criminal bill of indictment, charging three former top Buncombe County officials, Wanda Skillington Greene, 67, Jon Eugene Creighton, 66, and Amanda (Mandy) Louise Stone, 59, all of Buncombe County, with wire fraud and aiding and abetting; conspiracy to commit an offense against the United States; receipt of bribes and kickbacks and aiding and abetting; and federal program fraud and aiding and abetting, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
“Rooting out public corruption at all levels of government is one of my Office’s most critical responsibilities,” said U.S. Attorney Murray. “I want to thank the FBI, IRS-Criminal Investigation Division, and the North Carolina State Bureau of Investigation for their incredible diligence and commitment to conducting a thorough and objective investigation, which has led to today’s indictment.”
“When public officials put aside the best interest of the American public and choose to line their own pockets, we are all impacted. These type of crimes are at the center of the fight against public corruption. The FBI is dedicated to working with our law enforcement partners in the Western District of North Carolina to root out public corruption at any level of office,” said John Strong, Special Agent in Charge of the FBI Charlotte Field Office.
“The SBI considers investigations involving violations of the public trust to be among our highest priority cases. We were privileged to work with the FBI, IRS-CI and the U.S. Attorney’s Office of the Western District of North Carolina to hold these defendants accountable for their actions,” said Director Robert L. Schurmeier of the North Carolina State Bureau of Investigation (SBI).
According to allegations contained in the 32-count criminal bill of indictment:
Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017. As County Manager, Greene had the authority to approve the awarding of certain contracts between the County and private contractors, including contracts for engineering and consulting services.
Creighton began working for Buncombe County in March 1982. From 1985 until he retired in December 2017, Creighton was the Director of the County’s Department of Planning and Development. As part of his duties, Creighton negotiated contracts between the County and private contractors, and was responsible for signing such contracts on behalf of the County. From 1997 until his retirement, Creighton also had a dual appointment as Assistant County Manager.
Stone began working for Buncombe County in the 1980s. In 1994, she became the Assistant Director of County’s Department of Social Services, and later became Department’s Director in 2001. Beginning 2005, Stone also had a dual appointment, along with Creighton, as Assistant County Manager. She held both positions until she became County Manager upon Greene’s retirement. Stone retired from the County in June 2018.
An unnamed individual, identified in the indictment as “the Contractor,” was a licensed Professional Engineer. From the mid-1980s through 2018, the Contractor was the agent and contractor for three businesses (Company A until 2014, Company B during 2014 through 2016, and his own company, Company C, from 2014 through 2018). During the relevant time period, the Contractor obtained a combined total of more than $15 million in contracts with Buncombe County for consulting and engineering services.
During the relevant time period, Greene, Creighton and Stone used their official positions to enrich and benefit themselves, and, in doing so, they deprived Buncombe County citizens of their right to the honest services of the defendants. The kickback and bribery scheme the defendants engaged in involved, among other things, multiple, all-expense paid trips, meals, tickets to sporting events, and spa treatments paid for by the Contractor. The defendants solicited and accepted these gifts, payments, and other things of value from the Contractor, in exchange for awarding County contracts to the Contractor and the businesses he was affiliated with at the time.
Prior to 2014, Greene, Creighton, Stone, and other County personnel, went on trips that were in some way connected to legitimate County business. During these trips, the Contractor provided them with such things of value as expensive meals, wine, and other excursions. By 2014, Greene, Creighton, and Stone began to solicit and accept trips, valuable gifts, and other things of value from the Contractor that were entirely unrelated to any legitimate County business. The all-expense paid pleasure trips were to destinations within the U.S. such as Key West, Boston, Martha’s Vineyard, Napa Valley, and the Grand Canyon, and to international cities, including Vienna, Budapest, Cartagena, and Vancouver. At some time in 2015, Greene prepared a written list of specific places and dates she wanted to travel, and instructed Creighton to pass the list to the Contractor, which Creighton did. On June 6, 2016, during a text message exchange with Creighton and Stone about future trips to be paid by the Contractor, Greene wrote: “Agent needs to know we love and want pool and dinner on island . . . . We should think Gulf Coast or Bahamas for January trip and celebrate Mandy’s birthday at a new place.”
On some occasions, the defendants charged the County directly for airfare for trips that coincided with official meetings happening in the vicinity. However, the majority of the travel arrangements were made using the Contractor’s credit card information, which the defendants had access to, or, in Creighton’s case, using the Contractor’s actual credit card. During these trips, the Contractor would generally charge the additional expenses to his credit cards when he accompanied the County employees. For the trips during which the Contractor did not accompany the County employees, the defendants used a copy of the Contractor’s credit card to pay for any travel expenses they incurred.
At other times, in order to earn extra rewards points, Creighton used his own credit card to pay for lodging and other expenses, for which he was later reimbursed by the Contractor. As another way to help Creighton earn more rewards points, during some of the trips, the Contractor stayed at separate hotels, paid for the rooms using Creighton’s credit card, and then reimbursed Creighton for those charges. In order for the Contractor and Creighton to be able to use each other’s credit cards, Greene and Creighton caused personnel in the County’s Human Resources Department to create false official Buncombe County employee identification cards, one with the Contractor’s photograph but with Creighton’s name and title, and the other with Creighton’s photograph but with the Contractor’s name and a false title as a County employee.
In addition to receiving these all-expense paid vacations from the Contractor, the defendants also took advantage of these trips to defraud the County in at least two other ways: First, the defendants did not use annual leave for these trips, but rather falsely claimed that they traveled on official County business, and claimed to have worked for the duration of the trip. This enabled them to preserve their hours of annual leave, which they later “sold” to the County, thereby receiving monetary payments to which they were not legally entitled.
Specifically, at various times between 2011 and 2017, the County paid Greene more than $360,000 for approximately a total of 3,216 hours of her unused leave, some of which was related to these trips. Similarly, Stone received more than $130,000 from the County for unused leave between 2007 and her retirement in 2018, and Creighton received more than $89,000 for unused leave between 2011 and his retirement in 2017. A portion of their unused hours for which they were paid was related to these trips.
The second way in which the defendants used their trips to defraud the County was by submitting reimbursement requests for the cost of meals and incidental expenses they supposedly incurred during their travel, even though their meals and expenses were actually being paid for by the Contractor.
Furthermore, Buncombe County often unwittingly funded the briberies and kickbacks of its own officials. The Contractor kept detailed internal records of the costs of the tickets, lodging, meals, and other benefits that he provided to the defendants on each trip. The Contractor then tied these expenses to the various projects for which he had obtained contracts with the County on behalf of Companies A, B, and C. The Contractor often sent invoices to, and was reimbursed by, the County, in amounts approximate of those travel expenses, claiming that the invoices were for the completion of specific portions of the relevant contract, instead of the improper expenditures. Thus, by paying these invoices, which often required Creighton’s approval, the County was essentially reimbursing the Contractor for the cost of the kickbacks to its County officials.
In addition to the criminal charges, the indictment contains a notice of forfeiture and probable cause, seeking a forfeiture money judgment against the defendants in the amount of at least $400,000, which is the amount constituting the proceeds of the violations alleged in the indictment.
Greene, Creighton, and Stone have been ordered to appear on a summons. Each wire fraud and aiding and abetting charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The conspiracy charge carries a maximum prison term of five years and a $250,000 fine. The receipt of bribes and kickbacks and aiding and abetting charge and the federal program fraud charge each carry a maximum prison term of 10 years and a $250,000 fine.
Additional Charges Brought Against Wanda Greene
A separate superseding indictment also charges Greene with six counts of tax fraud, in addition to the pending wire fraud, federal program fraud, and money laundering charges filed against her on June 5, 2018, in connection with a $2.3 million scheme involving the purchase of whole life insurance policies for herself and other county employees using misappropriated Buncombe County funds.
The superseding indictment alleges that Wanda Greene filed with the IRS false federal tax returns for years 2012 through 2017. Specifically, the indictment alleges that, for each corresponding year, Greene filed false Individual Income Tax Returns, Forms 1040, which misstated her taxable income, and failed to report to the IRS additional income she received through her embezzlement and whole life insurance policies schemes.
Also pending, are the federal charges filed against Greene in April 2018, for misusing government credit cards to make approximately $200,000 worth of improper purchases.
All charges contained in the indictments are allegations. The defendants are innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended the work of the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into corruption within the Buncombe County Government is ongoing.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
One More Man Sentenced to 87 Months in Prison for His Role in the Gems and Gold Corner Jewelry Store Armed RobberyRead the Press Release
St. Thomas, USVI – Wahilli Nasco James, 23, of St. Croix, was sentenced today for his role in the armed robbery of the Gems and Gold Corner jewelry store, located on the St. Thomas waterfront, United States Attorney Gretchen C.F. Shappert announced. "The flagrant actions of gun-toting robbers will not be tolerated in the Territory," said U.S. Attorney Shappert. "In the United States Attorney’s Office, our primary focus is public safety. We intend to target violent criminals for federal prosecution. Today’s sentence is the result of constructive relationships between law-abiding citizens, hard-working law enforcement officers, and dedicated federal prosecutors."
District Court Judge Curtis V. Gomez sentenced James to 87 months in prison for possession of a firearm during a crime of violence, and five years of supervised release. Judge Gomez ordered James to pay a $100 special assessment, and perform 400 hours of community service. Judge Gomez also ordered James to pay restitution in the amount of $31,027.81 to Gems and Gold Corner and $130,322.12 to Dorchester Insurance.
On January 19, 2018, James pleaded guilty to possessing a firearm during the September 16, 2013, Hobbs Act robbery of Gems and Gold Corner Jewelry Store on St. Thomas. As a part of his plea agreement, James admitted that he and others committed a Hobbs Act robbery of the jewelry store and brandished weapons to threaten and intimidate store employees.
This case is a result of an investigation conducted by the Federal Bureau of Investigation and the Virgin Islands Police Department and was prosecuted by Assistant U.S. Attorney Kim L. Chisholm.