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7 August 2018
Boston Man Charged with Money LaunderingRead the Press Release
BOSTON – A Boston man was arrested today and charged in federal court in Boston with money laundering.
Juan Peguero, 28, was charged in an indictment with two counts of money laundering.
According to the indictment unsealed today, on two occasions in 2015, Peguero transferred almost $500,000 worth of drug proceeds - over $398,000 in April and $90,000 in June.
The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the laundered funds. 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’s New England Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
5 Defendants Charged in Manhattan Federal Court with Multimillion-Dollar Counterfeiting SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (“ICE”), Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Policy Department (“NYPD”), announced charges today against five individuals for conspiring to traffic in more than $70 million worth of counterfeit Nike Air Jordans. Defendants MIYUKI SUEN, JIAN MIN HUANG, SONGHUA QU, KIN LUI CHEN, and FANGRANG QU are charged with importing hundreds of thousands of athletic shoes from China into the United States. Once those shoes arrived, the defendants and other co-conspirators affixed counterfeit Nike-trademarked logos to those shoes in New York, and sold the now-counterfeit Air Jordans in the United States. All five defendants were arrested this morning and will be presented before U.S. Magistrate Katharine H. Parker today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The five defendants in this case allegedly counterfeited over $70 million in fake Nike shoes and sold them to buyers on the U.S. market. I commend our law enforcement partners for helping to bring today’s charges, which send a clear message to would-be counterfeiters: ‘Just don’t do it.’”
ICE HSI Special Agent-in-Charge Angel M. Melendez said: “These five individuals are alleged to have been a part of a large scale counterfeiting scheme, importing nearly a half million pairs of knock-off Nike sneakers. These counterfeiting networks can be both detrimental to our economy and threaten our national security, and HSI will continue to take every measure in investigating and dismantling these organizations.”
According to the allegations in the Complaint:
From at least in or about January 2016 up to and including in or about July 2018, SUEN, HUANG, SONGHUA QU, KIN LUI CHEN, and FANGRANG QU, the defendants, imported at least 42 shipping containers holding an estimated more than 380,000 pairs of sneakers from China. These sneakers were manufactured to resemble Nike Air Jordans. Once these shoes arrived, the defendants added trademarked logos to the shoes, rendering them counterfeit. The defendants then stored the counterfeit Nike Air Jordans in multiple storage units and warehouses in New York City and elsewhere.
On August 7, 2018, pursuant to court-authorized search warrants, federal law enforcement agents conducted searches of a warehouse, storage units, and a residence related to this scheme, and found thousands of counterfeit shoes, counterfeit trademarks, and machinery to finish counterfeit shoes. The estimated loss attributable to the defendants’ efforts amounts to more than $70 million.
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SUEN, 43, HUANG, 42, and CHEN, 53, of New York, New York, and SONGHUA QU, 54, and FANGRANG QU, 31, of Hicksville, New York, are each charged with one count of conspiring to traffic in counterfeit goods, and one count of trafficking in counterfeit goods. Each defendant faces a maximum potential sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the HSI and the NYPD. He also thanked U.S. Customs and Border Protection for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel G. Nessim is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
3 Gang Members Charged in Federal RICO IndictmentRead the Press Release
PITTSBURGH - Three members of the 11 Hunnit street gang have been indicted by a federal grand jury in Pittsburgh on a charge of Conspiracy to violate RICO (Racketeer Influence and Corrupt Organizations), United States Attorney Scott W. Brady announced today.
The indictment, returned on August 2 and unsealed yesterday, named as defendants:
Dionte Griffin, aka L Gzz, aka El Gwopo, aka Fat Boii, 22, of Pittsburgh, PA;
Sydney Pack, aka Lane, aka 018 Lane, 20, of Pittsburgh, PA; and
Richard Kelly, aka Rack Boy, aka RB, 23, of Pittsburgh, PA.
All three defendants are currently incarcerated. The initial appearances for Griffin and Pack are scheduled for August 8, 2018, at 1:30 p.m. before Magistrate Judge Robert C. Mitchell. Kelly will make his initial appearance in federal court on September 11, 2018, at 1:30 p.m., before Magistrate Judge Lisa Pupo Lenihan.
The indictment alleges that from 2015 to August, 2018, the defendants were members of the 11 Hunnit street gang who conspired to commit murder, robbery, and drug trafficking.
According to the indictment, 11 Hunnit, also known as FDT and Sneaky Gang, is a violent street gang composed primarily of individuals from the Hill District section of the City of Pittsburgh that has been functioning since approximately 2012. The 11 Hunnit gang is primarily comprised of persons from the 800 block of Memory Lane and the 300 block of Burrows Street in the Hill District section of Pittsburgh. The 800 block of Memory Lane is referred to as the “Lane,” which also encompasses the Chauncey Drive housing complex, along with the Somers Drive housing complex. The 300 block of Burrows Street is referred to as the “Rack.” Multiple 11 Hunnit gang members include “Rack” or “Lane” into their street names.
According to the indictment, 11 Hunnit members were required to commit acts of violence to maintain membership and discipline within the gang. 11 Hunnit funded their criminal enterprise from various sources, including drug trafficking and robberies. These funds were used for gang purposes, including obtaining weapons and maintaining their lifestyle. The gang spread warnings and propaganda, and bragged about its misdeeds, through rap videos. The indictment references several publicly accessible music videos published to YouTube by a YouTube user identified in the indictment as J.W. These rap videos feature appearances by 11 Hunnit gang members, including Pack and Griffin.
According to the indictment, 11 Hunnit members communicated about gang activities using mobile telephones, telephone text messages and social media.
“As alleged, these defendants are members of a violent gang whose drug trafficking and other acts of violence have terrorized law abiding residents of the City of Pittsburgh for too long: today it ends,” stated U.S. Attorney Brady. “We will use every tool, including federal RICO conspiracy, to put an end to these violent street gangs and offer justice to those harmed by 11 Hunnit and their associates.”
“This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners at the Pittsburgh Bureau of Police to impact the violent crime that has done so much damage to a number of our neighborhoods in Pittsburgh.”
Allegheny County Police Supt. Coleman McDonough said, “In 2016, the Allegheny County Police initiated two homicide investigations, one in the Borough of Greentree the other in the Borough of McKees Rocks, that involved some of the same individuals. Through the course of those investigations, we developed significant intelligence information concerning the groups involved. Using that information, we partnered with the ATF and the U.S. Attorney’s Office to facilitate a larger investigation. That investigation culminated with the indictment of the people involved with the two homicides. The collaborative effort illustrates the success that can be achieved when all levels of law-enforcement interface.”
“Our citizens have the right to live in communities free from violence,” added Commander Victor Joseph, of the Pittsburgh Bureau of Police Major Crimes. “The Pittsburgh Bureau of Police will not stand for violent gangs holding our neighborhoods hostage. When traditional investigative means are not enough to hold violent offenders accountable, we think outside the box. In this instance, a RICO investigation was appropriate. Thanks to our partnerships with the ATF, the U.S. Attorney’s Office, the Allegheny County Police and the Allegheny County District Attorney’s Office, three violent gang members are no longer on our streets.”
The law provides for maximum total sentences ranging from up to 20 years in prison for Kelly and up to life in prison for Griffin and Pack, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
U.S. Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Pittsburgh Bureau of Police, the Allegheny County Police Department, and the Allegheny County District Attorney’s Office for conducting the investigation leading to the indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
13 Men Charged with Federal Gun Offenses Through Hartford Project Safe Neighborhoods ProgramRead the Press Release
U.S. Attorney John H. Durham, joined by federal, state and local law enforcement officials, today announced that 13 men have been charged with federal offenses related to the illegal possession of firearms in Hartford. These prosecutions have been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
“Through Project Safe Neighborhoods in Hartford, the U.S. Attorney’s Office works closely with the Hartford State’s Attorney’s Office, Hartford Police Department, FBI’s Northern Connecticut Violent Crimes Gang Task Force and ATF to reduce gun violence in Hartford by identifying firearm cases that are appropriate for federal prosecution,” said U.S. Attorney Durham. “All of the individuals whose cases we’re announcing today have criminal histories that prevent them from possessing guns legally. Illegal guns and the violence they bring are a plague on our cities, and our office is committed to working with our law enforcement counterparts to remove these guns and the individuals who possess them from the community into order to reduce violent crime.”
“The Hartford State’s Attorney’s Office is committed to working with our federal partners to ensure that those who cannot lawfully possess firearms are apprehended and prosecuted – whether it be in federal or state court,” said Hartford State’s Attorney Gail P. Hardy. “We are committed to making Hartford a safe place to live, work and visit.”
“The Hartford Police Department continues to work closely with our federal and state partners to reduce crime and keep our communities safe,” said Hartford Assistant Police Chief Rafael Medina, III. “We are committed to identifying and apprehending those violent offenders who are in illegal possession of firearms so they can be prosecuted to the fullest.”
“The significance of these cases on the Hartford community cannot be overstated,” said Erin Joe, Acting Special Agent in Charge of the Federal Bureau of Investigation. “The use of our collective law enforcement resources has again proved to be imperative in the fight to reduce the dissemination of guns and gun violence in the community. The individuals charged through the Project Safe Neighborhoods initiative are alleged to have demonstrated their disregard for the rule of law and must now face the consequences in federal court.”
“ATF’s top priority is combating violent crime and keeping firearms out of the hands of violent offenders,” said Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division. “These charges are another example of the importance of law enforcement partnerships and their effectiveness in protecting our communities.”
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
RAFAEL ARROYO, 33, of Hartford, is charged by indictment with one count of possession with intent to distribute heroin and cocaine, one count of possession of a firearm by a convicted felon, and one count of possession of firearms in furtherance of a drug trafficking crime. It is alleged that, on July 26, 2018, a court-authorized search of Arroyo’s Broad Street apartment revealed distribution quantities of heroin and cocaine, a Star S.A. 9mm semiautomatic pistol, an H&R “Sportsman” .22 caliber long rifle revolver, a Group Industries 9mm firearm, and assorted ammunition. Arroyo’s criminal history includes state felony convictions for drug and firearm offenses. Arroyo has been detained since his arrest on July 26 and the indictment was returned today.
O’SHANE CROSS, 30, of Hartford, is charged by indictment with one count of possession of a firearm by a convicted felon. The indictment alleges that, on July 19, 2018, Cross possessed a loaded Hi-Point Model JCP .40 caliber pistol. The firearm was found in a search of CROSS’s bedroom after he discussed selling other guns to an informant. In January 2010, Cross was convicted in state court of a burglary offense. Cross has been detained since his arrest on July 19.
CRAIG GODWIN, 31, of Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on June 3, 2018, Hartford Police encountered Godwin in his car after a traffic accident on Main Street in Hartford. Godwin possessed a loaded .40 caliber Astra A75 handgun. The firearm had been reported stolen during a burglary in Hartford in September 2017. Godwin’s criminal history includes convictions in state court for weapons, narcotics, escape and risk of injury offenses. Godwin is currently detained in state custody.
RAKEEM GRANT, 29, of Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on April 23, 2018, Grant possessed a loaded .40 caliber Smith & Wesson SD40 VE handgun outside of nightclub that is a hotspot for shootings and violence on Main Street in Hartford. In April 2017, Grant was convicted in state court of possession of a pistol without a permit. Grant is currently detained in state custody.
CLETUS JONES, 38, of Hartford, is charged by indictment with being a felon in possession of a firearm. It is alleged that, on January 23, 2018, Jones attempted to hide a loaded Taurus model PT738 .38 caliber semi-automatic handgun in Elizabeth Park after being involved in a motor vehicle accident in Hartford’s West End. Laboratory analysis of the seized firearm revealed Jones’s DNA. Jones’s criminal history includes convictions in state court for narcotics, larceny, robbery and carjacking offenses. Jones was arrested federally on August 2 and the indictment was returned today. He is detained.
ENRIQUE LUCIANO, 31, of Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on June 4, 2018, Luciano pulled out a gun and pointed it at plainclothes Hartford Police detectives investigating drug activity on Cabot Street. After the detectives identified themselves as police officers, Luciano fled and discarded the firearm. Luciano was apprehended and the firearm, a loaded 9mm Taurus PT 908 with an obliterated serial number, was recovered. In August 2017, Luciano was convicted in state court of possession of narcotics. Luciano is currently detained in state custody.
AARON PEARSON, 27, of Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on March 28, 2018, Pearson appeared in a Facebook Live video brandishing a black semi-automatic handgun that had a Hoffman’s Gun Center tag hanging from its trigger. Investigators obtained documents from Hoffman’s that showed the firearm, a Taurus PT 738 .380 caliber handgun, had been purchased by another individual who also appeared in the Facebook Live video. Investigators recovered the firearm from Pearson’s residence on April 12, 2018. In February 2012, Pearson was convicted in state court of carrying a pistol without a permit. Pearson is currently detained in state custody.
ANTHONY PENA, 24, of Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on June 24, 2018, Pena placed a backpack containing a firearm into a vehicle in the vicinity of 862 Albany Avenue. A search of the vehicle revealed loaded Glock 21 .45 caliber firearm. The firearm had been reported stolen in North Carolina in 2012. In May 2012, Pena was convicted in state court of robbery in the first degree. Pena is currently detained in state custody.
NOEL PEREZ, 21, of Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on May 29, 2018, Hartford Police stopped a vehicle Perez was driving on Wadsworth Street. A search of the vehicle revealed a loaded Sig Sauer P2022 .40 caliber handgun. Perez’s criminal history includes convictions in state court for assault, burglary and larceny offenses. Perez is currently detained in state custody.
KELVIN PETERS, 41 of Hartford, is charged by indictment with being a felon in possession of a firearm and ammunition. It is alleged that, on May 9, 2018, Enfield Police stopped a car that was being operating erratically. A search of the car revealed two loaded firearms, a Bersa Thunder 380 handgun and a High Point Model C9 9mm pistol with an obliterated serial number. Peters’ criminal history includes multiple convictions in state court for drug offenses, and a 2004 federal conviction for possession of a firearm by a convicted felon. Peters was arrested federally on August 1 and the indictment was returned today. He is detained.
MARVIN PORTER, 26, of East Hartford, is charged by criminal complaint with being a felon in possession of a firearm. The complaint alleges that, on June 24, 2018, after officers approached a group of men in the vicinity of 862 Albany Avenue, Porter attempted to run away. After Porter was apprehended, a search of his person revealed a loaded Beretta model 21A-22LR handgun and a quantity of crack cocaine. In April 2007, Porter was convicted in state court of sexual assault in the first degree. Porter was arrested federally on August 2 and he is released on bond.
ISIAH SHIPMAN, 28, of Bloomfield, is charged by indictment with being a felon in possession of a firearm. It is alleged that, on April 14, 2018, SHIPMAN ran from Hartford Police officers that had responded to a report of a street fight in the area of Essex Street and Maple Avenue. After officers apprehended Shipman, a search of his person revealed a loaded Smith and Wesson .40 caliber handgun. The gun had been reported stolen in Hartford in August 2016. Shipman’s criminal history includes state felony convictions for narcotics and assault offenses. Shipman has been detained since his federal arrest on August 2, and the indictment was returned today.
BENICIO VASQUEZ, 32, of Hartford, is charged by indictment with one count of possession of a firearm by a convicted felon. The indictment alleges that, on July 19, 2018, Vasquez possessed a Taurus .357 caliber revolver loaded with six rounds of ammunition. Vasquez’s criminal history includes state felony convictions for drug and money laundering offenses. Vasquez has been detained since his arrest on July 19.
The charge of possession of a firearm and/or ammunition by a previously convicted felon carries a maximum term of imprisonment of 10 years. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory consecutive term of imprisonment of at least five years.
U.S. Attorney Durham stressed that charges are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
These cases are being prosecuted by Assistant U.S. Attorney Michael J. Gustafson, PSN Program Coordinator; Assistant U.S. Attorneys Douglas Morabito, Ray Miller, Anastasia King and Jennifer Laraia, and Special Assistant U.S. Attorney John F. Fahey of the Hartford State’s Attorney’s Office.
6 August 2018
Waterbury Man Sentenced to Prison for Distributing Heroin to Danbury Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRE REED, 26, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for distributing heroin to a Danbury overdose victim.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe. The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
The investigation revealed that REED supplied heroin to another individual who then sold it to the victim.
Reed was arrested on December 21, 2017. On April 4, 2018, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Torrington, Danbury and Wilton Police Departments. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
United States Settles False Claims Act Allegations Against Defense Contractor for $300,000Read the Press Release
Jacksonville, FL – United States Attorney Maria Chapa Lopez announces that the United States has settled allegations that Pentad Corporation failed to reimburse the Department of the Navy for meals consumed by its employees at Naval Station Guantanamo Bay. The allegations resolved included liability under the False Claims Act (FCA).
Pentad Corporation is a defense contractor that provides dining-related services at various locations, including at Naval Station Guantanamo Bay. Pentad’s contract with the Navy allowed Pentad employees to eat at Navy dining facilities, but required that Pentad reimburse the Navy for meals its employees consumed. From December 2013 to December 2016, Pentad failed to reimburse the Navy for these meals, causing the Navy approximately $150,000 in damages. The settlement compensates the Navy for Pentad’s reimbursement failures.
“Protecting the integrity of services provided to our armed forces is a high priority for our office,” said U.S. Attorney Chapa Lopez. “We will work vigorously to ensure that defense contractors fulfill their contractual obligations so that our military can accomplish its mission.”
“This settlement is the result of tireless efforts by the Defense Criminal Investigative Service and its law enforcement partners to ensure integrity and compliance in all Department of Defense programs,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS investigations focus on fraud, waste, and abuse of taxpayer dollars in all DoD procurements for goods and services.”
Special Agent in Charge Michael Wiest stated “Fraud is not a victimless crime. In all its forms fraud siphons time, money, and resources from America’s warfighters. NCIS is committed to working with our partner agencies to help hold accountable those who put personal greed above their responsibilities to the Navy and nation.”
This case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, the Defense Contract Audit Agency, and Assistant United States Attorney Shea Gibbons.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States Attorney Announces the Appointment of Two New Federal ProsecutorsRead the Press Release
DALLAS — United States Attorney Erin Nealy Cox announced today the appointment of Renee Hunter and Gregory Martin as Assistant United States Attorneys. Both were sworn in today before Chief Judge Barbara M. G. Lynn.
Ms. Hunter is assigned to the Economic Crimes & Public Corruption Section of the office’s Criminal Division, where she will focus on health care fraud cases. Most recently, Ms. Hunter worked as a litigation associate at the Dallas office of Thompson & Knight, focusing on white-collar criminal defense work with former U.S. Attorney Richard Roper. Before that, Ms. Hunter worked at Sidley Austin in Dallas. Ms. Hunter received her graduate degree from SMU Dedman School of Law, and received her undergraduate degree from Dallas Baptist University.
Mr. Martin is assigned to the Asset Recovery Unit within the office’s Criminal Division, where he will focus on our Financial Crimes Enforcement Network Initiative to build asset forfeiture cases from Bank Secrecy Act data. Most recently, Mr. Martin worked as a civil litigation associate at the San Diego office of Jones Day. Mr. Martin received his graduate degree from Northwestern University School of Law, and received his undergraduate degree from the University of Illinois.
“We are proud to welcome Renee Hunter and Gregory Martin as Assistant United States Attorneys in the Northern District of Texas.” said U.S. Attorney Nealy Cox. “I am confident that they will both make a significant impact in our community and work tirelessly on behalf of the citizens of the United States.”
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U.S. Attorney’s Office to Take Part in Spokane’s National Night Out Against CrimeRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that on Tuesday, August 7th, members from his office will participate in community events held as part of Spokane’s National Night Out Against Crime.
National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, more caring places to live. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Furthermore, it provides a great opportunity to bring law enforcement and the community together under positive circumstances.
Joseph H. Harrington said, “National Night Out Against Crime is an outstanding opportunity for neighbors to gather with their law enforcement and community partners. When such groups gather they demonstrate that battling crime in our communities is truly a collective responsibility. The United States Attorney’s Office for the Eastern District of Washington looks forward to joining others on Tuesday to help continue to spread the important message that we are all in this together.”
For more information visit https://www.spokanecops.org/events/ or https://www.spokanecounty.org/1439/Neighborhood-Watch
U.S. Attorney announces the appointment of eight new Assistant U.S. AttorneysRead the Press Release
ATLANTA – The U.S. Attorney for the Northern District of Georgia, Byung J. “BJay” Pak has announced the appointment of eight new Assistant U.S. Attorneys to support our mission to enforce the law and defend the interests of the citizens we serve in this district.
“The opportunity to represent the United States is one of the greatest honors for a lawyer,” said U.S. Attorney Byung J. “BJay” Pak. “I’m honored to lead these exceptionally talented and dedicated lawyers whose commitment to public service is unmatched.”
Angela Adams joins the office from the Department of Justice in Washington, where she served as a trial attorney in the Fraud Section of the Criminal Division. She is pleased to return to Atlanta, where she previously spent six years with Alston & Bird LLP, specializing in government investigations and white collar crime and serving as lead associate in a high-profile criminal RICO case involving school officials. Angela received her law degree from Howard University School of Law and graduated, magna cum laude, from Clark Atlanta University with a B.A. She has also clerked for Hon. Clarence Cooper, Senior District Court Judge in the Northern District of Georgia. Angela is a member of the Criminal Division.
Austin Hall returned to the office from the Georgia Attorney General’s Office, where he served as an Assistant Attorney General in the Medicaid Fraud Control Unit (MFCU). Before leaving for MFCU, Austin worked as a Civil Assistant U.S. Attorney on cases involving the securitization of residential mortgages and violations of the Controlled Substances Act. Prior to that, he worked as a Senior Associate at Alston & Bird LLP, focused on federal securities fraud, SEC enforcement and insider trading cases. Additionally, he has served as a Judicial Extern for Hon. Frank Mays Hull, on the Eleventh Circuit Court of Appeals. Austin earned his law degree cum laude from Georgia State University School of Law, where he served as a Board Member for the Georgia State University Law Review, and graduated with a B.A. in English from the University of the South – Sewanee. Austin is a member of the Civil Division.
Theodore Hertzberg was previously an Assistant U.S. Attorney in the Southern District of Georgia, where he served as the Asset Forfeiture Chief. He has experience in a wide variety of cases, including OCDETF and violent crimes. Prior to joining the SDGA, Teddy was an associate with Kramer Levin in New York City. He also clerked for Hon. Kristi DuBose, of the U.S. District Court for the Southern District of Alabama. He received his law degree from New York University, and his B.A., cum laude, from Amherst. Teddy is a member of the Criminal Division.
Flora Manship was previously a Senior Associate at Kilpatrick Townsend & Stockton LLP in Atlanta, where she focused on labor and employment litigation. Flora received her law degree from Emory University School of Law, where she served as the Executive Managing Editor of the Emory International Law Review. She graduated magna cum laude, Phi Beta Kappa, from Drew University in Madison, New Jersey. She served as a Summer Law Clerk for California Rural Legal Assistance in San Francisco and completed an externship with The Coca-Cola Company and a judicial internship with Hon. Allison E. Accurso, Superior Court of New Jersey. Flora is a member of the Civil Division.
Leanne Marek joined the office from Alston & Bird LLP, where she was a Senior Associate focused on white collar matters. She previously served as a summer clerk in the office and as a Third Year Practice Prosecution Clinic Intern with the U.S. Attorney’s Office in the Western District of Virginia, where she worked on a wide variety of matters, including the first “bath salts” case in that district. Leanne earned her law degree from the University of Virginia School of Law and graduated summa cum laude from Auburn University with a B.A. in Political Science. During her time at Auburn, Leanne served as a senator in the Student Government Association. Leanne is a member of the Criminal Division.
Andres Sandoval joined the office from Sequor Law, P.A. (formerly Astigarraga Davis Mullins & Grossman, P.A.) in Miami, where he was a civil litigator, specializing in asset recovery, financial fraud, bankruptcy, and other commercial actions, recovering over $70 million on behalf of fraud victims. Prior to practice, he served as Student Extern to the Hon. Robert A. Mark of the U.S. Bankruptcy Court in Miami. Andres earned his law degree, cum laude, from the University of Florida, Levin College of Law, and graduated with a B.A. in political science, cum laude, from Florida International University. Andres is a member of the Civil Division.
Prior to joining the office, Noah Schechtman worked for the DeKalb County District Attorney’s Office, where he was a Senior Assistant District Attorney in the Trial Division and tried a wide range of cases, including narcotics, trafficking, armed robbery and murder. His experience includes serving as clerk for Hon. Daniel J. Yablonsky, Judge of the Superior Court – Passaic Vicinage Criminal Division, as well as an externship with Hon. David E. Peebles, United States Magistrate Judge in the Northern District of New York. He graduated cum laude from Syracuse University College of Law, received a B.S. in Business Administration from George Washington University, and currently coaches the mock trial team at Emory Law School. Noah is a member of the Criminal Division.
Erin Spritzer joined the office from the U.S. Attorney’s Office for the Middle District of Georgia, where she prosecuted narcotics, firearms, public corruption and child pornography cases. Prior to that, she worked as an Associate with the Law Office of Arthur W. Leach, specializing in white collar criminal and civil defensive matters. She served as a Law Fellow for Hon. Paul M. Newby, Associate Justice of the Supreme Court of North Carolina. Erin earned her law degree from Emory University School of Law, where she was managing editor of the Emory International Law Review, and graduated from the University of North Carolina at Chapel Hill with a B.A. in American Studies and a minor in Spanish. Erin is a member of the Criminal Division.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tyler County man admits to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Boyd Williamson, of Middlebourne, West Virginia, has admitted to his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Williamson, age 36, pled guilty to one count of “Distribution of Methamphetamine.” Williamson admitted selling methamphetamine in December 2017 in Wetzel County.
Williamson faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Three Springfield Residents Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Three Springfield, Mo., residents were sentenced in federal court today for their roles in a conspiracy to distribute heroin in Greene and Webster counties.
Demarko Hinkle, 28, Victor Walton, 29, and Kimberly Robinson, 33, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Hinkle and Walton were each sentenced to 10 years in federal prison without parole. Robinson was sentenced to six years and five months in federal prison without parole.
Hinkle, Walton and Robinson each have pleaded guilty to participating in a conspiracy to distribute 100 grams or more of heroin in Greene and Webster counties from Jan. 1, 2012, to Feb. 25, 2016. Hinkle and Walton also have pleaded guilty to possessing firearms in furtherance of a drug-trafficking crime.
Hinkle and Walton admitted they traveled to St. Louis, Mo., at least three times during the course of the conspiracy and transported back approximately a half ounce (12-14 grams) of heroin each trip. Hinkle was directly involved in the distribution of at least 133 grams of heroin.
Hinkle and Walton also admitted they were in possession of a Dan Wesson Arms .22-caliber revolver and an Armscor of the Philippines .22-caliber rifle on April 28, 2015, during a drug transaction with an undercover law enforcement officer.
Springfield police officers executed a search warrant at Robinson’s residence on June 12, 2013, and seized approximately .7 grams of heroin. Robinson admitted that she was selling heroin. On March 28, 2014, officers executed another warrant at two apartments associated with Robinson, where they found a large amount of cash. On Dec. 28, 2014, Robinson was arrested after she was found unresponsive in a public restroom with approximately .14 grams of heroin in her purse. Robinson admitted that she directly distributed or obtained for distribution at least an additional 50 grams or more of heroin during the course of the conspiracy.
Co-defendants Laura Brown, 25, and Brittany Jones, 26, both of Springfield, also have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
This case is being prosecuted by Special Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Springfield, Mo., Police Department and the Drug Enforcement Administration.
Stockton Man Sentenced to 5 Years in Prison for Gun Trafficking CrimesRead the Press Release
SACRAMENTO, Calif. — Gary Loch, 29, of Stockton, and Eugene, Oregon, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for conspiring to traffic firearms without a license, possessing an unregistered automatic weapon, and possessing a firearm with an obliterated serial number, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January and June 2016, Loch was one of several Stockton-based conspirators who sold about 47 guns to an undercover agent. Loch personally owned and sold three of these weapons, including a machinegun with a partially obliterated serial number. Several other firearms were automatic, carried extended magazines, or had obliterated serial numbers. Agents saw Loch removing several of these serial numbers himself. In total, Loch was present as 31 firearms changed hands at 10 transactions in Stockton and Las Vegas, Nevada. During several of these meetings, the undercover agent said that he could not legally purchase weapons and that he would introduce the guns to the black market. Loch and others completed the purchases nonetheless.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Amanda Beck and Richard Bender prosecuted the case.
Loch has been in custody since October 18, 2017. Nearly all of his co-defendants have been sentenced for gun-related crimes: Jason Prom received 12 years in prison. Ronnie Dethvongsa received four years and nine months in prison. Kenny Prach received three years and six months in prison. Ariana Diaz received two and a half years in prison. Sean Chaichanhda and Hilberto Arevalos received 18 months each. Charges are still pending against co-defendant Adam Nhem, who is scheduled to appear in court on September 17, 2018. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Springfield Man Sentenced for Illegal Firearms Following Police PursuitRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for illegally possessing firearms following a high-speed police chase that ended when he drove through a back yard and crashed into a residence.
Randall Hale, 43, was sentenced by U.S. District Judge Brian C. Wimes to nine years in prison without parole.
On Jan. 9, 2018, Hale pleaded guilty to being a felon in possession of a firearm. According to court documents, Greene County sheriff’s deputies found Hale passed out behind the steering wheel of a stolen Chevrolet truck at 5092 W. Sunshine St., Springfield, on Nov. 21, 2016. Deputies parked behind the truck, got out of their vehicles and approached the truck. As one of the deputies approached the passenger window, Hale put the truck into reverse and slammed into another deputy’s patrol vehicle. Hale then drove over a sidewalk and struck a building before leaving the parking lot.
Hale fled eastbound on Sunshine Street at about 85 miles per hour with additional law enforcement officers in pursuit. The chase continued to a backyard on South Newton Street, where Hale crashed the truck into the residence. Hale ran from his vehicle and was apprehended a short distance away by Springfield police officers.
During a search of the stolen truck, officers found a loaded Springfield Arms Company .45-caliber pistol, a loaded Browning Arms Company 7mm rifle and a loaded O.F. Mossberg and Sons .243-caliber rifle, all of which had been reported stolen, as well as multiple rounds of ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Hale has prior felony convictions for vandalism, burglary, grand theft, petit theft, receiving stolen property, and sale of marijuana. He was on probation at the time of the federal offense.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Greene County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sacramento Man Sentenced to 8 Years in Prison for Trafficking MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Hector Jonathan Hernandez, 26, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to eight years and one month in prison for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, in May 2016, in a series of recorded calls, Hernandez negotiated with a DEA confidential source about selling methamphetamine. On May 25, 2016, Hernandez met with the source at a Lowe’s parking lot in Elk Grove and sold him one pound of methamphetamine for $3,500. The substance was tested later at laboratory, and it tested at 100 percent purity for methamphetamine.
This case was the product of an investigation by the Drug Enforcement Administration.
Rochester Man Pleads Guilty to Possessing A Gun A Day After Being Released from PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Erick Arroyo-Cruz, 34, of Rochester, NY, pleaded guilty to being a felon in possession of a firearm, before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that on March 8, 2018, just one day after his release from prison on another offense, the defendant possessed a .22 caliber pistol which was loaded with eight rounds of ammunition. Cruz was traveling in a vehicle on North Clinton Avenue in Rochester when Rochester Police Officers stopped the car to execute an existing arrest warrant for the driver of the vehicle. The defendant, who was a passenger in the car, was searched and officers found the loaded pistol in his jacket pocket.
Cruz was released from prison on March 7, 2018, having previously been convicted in state court of 1st degree knowingly possessing dangerous contraband in prison.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for November 14, 2018, at 3:00 p.m. before Chief Judge Geraci.
Pittsburgh Woman Pleads Guilty in Scheme to Illegally Obtain and Distribute Rx PainkillersRead the Press Release
PITTSBURGH, PA – One resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to charges of healthcare fraud and possession with the intent to distribute and distribution of opiate painkiller, oxycodone, United States Attorney Scott W. Brady announced today.
Marion Randolph, age 64, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Randolph participated in a criminal network of drug dealers who obtained opiate painkillers and then illegally distributed them to users in the Pittsburgh area. Randolph sold prescription pills that she obtained through a health benefit program to dealers in the criminal network and to other people. She obtained the pills under the false pretense that she intended to use the pills herself when, in fact, she intended to and did distribute some of the pills to others.
Judge Hornak scheduled sentencing for November 16, 2018. The law provides for a total sentence of not more than twenty years in prison, a fine not to exceed $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Randolph.
Philadelphia Man Sentenced to 35 years for Armed Robbery SpreeRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Koren Jones a/k/a “Kuron Jones,” 25, of Philadelphia, was sentenced by U.S. District Judge Robert F. Kelly to 35 years’ imprisonment, followed by 5 years of supervised release. Jones pleaded guilty earlier this year to committing two armed robberies, one attempted armed robbery, and related firearms offenses—all over the course of a two day violent crime spree in November 2016.
During the first armed robbery, which occurred at a local grocery store, Jones pointed a gun directly at the cashier, threatened to shoot her, and eventually shot a customer in both legs, causing the victim severe injuries. Jones fled from the store with $200 from the cashier.
The next day, the defendant committed a second armed robbery, this time at a different local grocery store. Jones entered the store wearing a ski mask, pointed a gun at the cashier, and demanded cash. Jones fired the gun directly at the cashier and narrowly missed striking him; the cashier gave the defendant approximately $250 before Jones fled from the store. Later that same day, Jones attempted to commit an armed robbery of a deli a few blocks away; this time, the cashier wrestled the gun away from Jones, but not before it accidentally discharged.
“Senseless acts of violence like the ones Jones committed during his two-day crime spree threaten our neighborhoods and render citizens afraid to participate in the most basic activities of daily living—like shopping at a local grocery store,” said U.S. Attorney McSwain. “No one should have to live in fear like that. By seeking and obtaining a significant prison sentence in this case, we have made the neighborhoods Jones terrorized safer today than yesterday. My Office will continue to work tirelessly with local law enforcement to combat violent crime in order to keep our citizens secure.”
“In a two-day stretch of violence, Koren Jones targeted three places of business and terrorized numerous people,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “He showed zero regard for human life—opening fire on frightened witnesses, leaving both physical and emotional scars. This lengthy sentence makes the streets of Philadelphia safer. May it also provide his victims with a measure of peace.”
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 FBI and the Philadelphia Police Department. It is being prosecuted by Assistant U.S. Attorney Katherine Driscoll.
Owner of West Tennessee Travel Agency Sentenced to 27 Months Imprisonment for Wire FraudRead the Press Release
Jackson, TN – A West Tennessee woman was sentenced to 27 months in federal prison for wire fraud. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to the charging instrument, Ronda Hopkins Richards, 55, was the owner of Ronda’s Travel Corner, in Jackson, TN. From November 2016 to July 2017, Richards defrauded approximately 100 clients/victims of funds related to their travel. In some cases, Richards enticed the victims to pay cash for a trip that was never booked. In other instances, she booked air travel for victims, but did not provide lodging at the destination for which the victim had pre-paid.
On June 19, 2017, Richards convinced a client to write a $17,172.00 check to Ronda’s Travel Corner for a family trip to Disney World. The trip was scheduled for March 24, 2018, through March 31, 2018. Richards never booked the trip, but instead deposited the check into her own personal account at First South Bank and used the funds for her personal gain.
U.S. Attorney D. Michael Dunavant said: "The defendant’s greed and selfishness has victimized countless innocent citizens who trusted her, and she is now being held accountable for her dishonest and fraudulent conduct. Hopefully, this sentence will achieve justice by deterring other similar criminal conduct, and the restitution order will recover the funds stolen from the victims."
This transaction caused a wire transmission of $17,172.00 to occur in interstate commerce, between the victims’ bank, Greenfield Banking Company, Greenfield, TN, through the Federal Reserve Check Clearing Center located in Atlanta, GA, and then to First South Bank in Jackson, TN. This interstate transmission resulted in the crime of wire fraud. Over 100 of Ronda’s Travel Corner clientele were victims of similar schemes. Because of this scheme, the victims lost a total of approximately $410,280.25.
On August 3, 2017, Richards was interviewed by the Jackson Police Department. She stated that she had fallen behind in her payments and began taking money, did not keep up with what she had taken and "everything spiraled out of control."
Richards pleaded guilty to this charge on February 26, 2018. On August 3, 2018, U.S. District Chief Judge S. Thomas Anderson sentenced Richards to 27 months imprisonment; 3 years supervised release; $100.oo special assessment and restitution in the amount of $410,280.25.
For more information, or if there are other victims who have not made their losses known, please contact the U.S. Attorney’s Office Victim/Witness Coordinator at 901-544-4231.
This case was investigated by the Jackson Police Department and the United States Secret Service.
Assistant U.S. Attorney Victor L. Ivy prosecuted this case on the government’s behalf.
Ocean Springs Woman Sentenced for Trafficking HeroinRead the Press Release
Gulfport, Miss. – Robyn Paige Kisling, 46, of Ocean Springs, was sentenced Tuesday by U.S. District Judge Sul Ozerden to 43 months in federal prison, followed by 3 years of supervised release, for possessing with intent to distribute heroin in Ocean Springs, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Kisling pled guilty on February 15, 2018, to one count of possession with intent to distribute heroin. On April 19, 2016, she sold an ounce of heroin to an individual acting in an undercover capacity in a parking lot in Ocean Springs.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie
Nurse Practitioner Sentenced for Illegally Prescribing Drugs at Substance Abuse Treatment ProgramRead the Press Release
Abingdon, VIRGINIA – An Abingdon Nurse practitioner, who illegally distributed opiates and other prescription drugs while working at a substance abuse program, was sentenced last week to serve 60 months in prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Matthew Justin Sykes, 43, pleaded guilty on May 7, 2018 to one count of conspiring to (a) misbrand a drug in interstate commerce by causing prescription drugs to be dispensed without a valid prescription and (b) illegally distribute Schedule III and IV controlled substances. In addition, he pleaded guilty to eight counts of distributing oxycodone, a Schedule II opiate, one count of distributing alprazolam, a Schedule IV benzodiazepine, and one count of using the United States Postal Service in committing, causing or facilitating a felony drug trafficking offense.
“This medical professional violated the public’s trust by unlawfully dispensing these deadly drugs,” U.S. Attorney Cullen stated. “We will continue to work with our federal, state, and local partners, including Attorney General Mark Herring, to identify and target those in the medical community who put profits before patients, and, in so doing, help fuel the opioid epidemic.”
“The opioid crisis has hit Southwest Virginia as hard as anywhere, and illegal prescription drugs have been a huge part of the problem. As part of our comprehensive approach to the opioid crisis, my team and I have pursued enforcement action against more than 300 medical professionals, like doctors, nurses, and others, who overprescribe, divert, or steal opioids. This conviction wouldn’t have been possible without the strong partnership between my office and U.S. Attorney Cullen’s, and I look forward to continuing our work to make Southwest Virginia safer.”
“Distributing addictive, opioid drugs where there is not a legitimate medical purpose poses a serious threat to the U.S. public health and will not be tolerated,” said Mark S. McCormack, Special Agent in Charge, U.S. Food and Drug Administration's Office of Criminal Investigations, Metro Washington Field Office. “The FDA is committed to bringing to justice those unscrupulous actors who use their access to these powerful drugs as a way to enrich themselves by distributing them without valid prescriptions.”
According to evidence presented at previous hearings, Sykes was employed by Watauga Recovery Center from March 2012 until April 2017, a practice that holds itself out as a substance abuse treatment program. Watauga Recovery Center has locations in Virginia, Tennessee and North Carolina. Sykes worked primarily at Watauga Recovery Center’s Duffield, Virginia, office. Sykes was also employed by E & C Counseling, another practice holding itself out as a substance abuse treatment center, located in Abingdon, Virginia. Sykes had a valid DEA registration number during this time, which was surrendered in May 2017.
Sykes admitted to conspiring with other health care providers and employees at Watauga Recovery Centers, a cash payment practice, to regularly prescribe a combination of buprenorphine, clonazepam, and gabapentin, without a legitimate medical purpose and outside the usual course of professional practice. This included issuing prescriptions to patients knowing there was no legitimate reason to do so, and prescribing three dosage units of buprenorphine per day to patients, knowing that at least one of the three doses would be diverted and sold. In addition, Sykes and his co-conspirators would cause prescriptions to be issued in the name of a prescriber who had not examined the patient.
In addition, on multiple occasions from January 2014 until April 2017, Sykes wrote prescriptions for Schedule II controlled substances in various individuals’ names. These prescriptions were not recorded in regular patient files of Watauga Recovery Center or E & C Counseling. The prescriptions were filled at various pharmacies located in the Western District of Virginia. Some of these prescriptions were filled by Sykes himself without the individual’s knowledge or consent, while others were filled by the individuals, who then gave Sykes part of the controlled substances dispensed by the pharmacies. Sykes has admitted that he wrote the prescriptions and that they were issued without a legitimate medical purpose and beyond the bounds of professional practice.
On October 30, 2017, Sykes received a package at his home in Abingdon, Virginia, delivered by the United States Postal Service, which contained alprazolam, a schedule IV controlled substance. Sykes has stated that he ordered this alprazolam from an anonymous internet source on the “dark web.” He has stated that he had been ordering and receiving controlled substances from several different anonymous sources on the dark web since 2013, including oxycodone, hydrocodone, Adderall, and alprazolam, and that he has given and sold controlled substances ordered on the dark web to other individuals.
This case is part of an investigation by the Food and Drug Administration-Office of Criminal Investigations, Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Drug Enforcement Administration, Tennessee Bureau of Investigation, Virginia State Police, and the United States Postal Inspection Service.
Special Assistant United States Attorney/Virginia Assistant Attorney General Janine Myatt and Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
New Orleans Man Pleads Guilty to Various Drug Trafficking Violations, and with Discharging a Firearm in Furtherance of a Crime of Violence and a Drug Trafficking Crime, Resulting in the Shooting of DEA Task Force Officer Stephen ArnoldRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JARVIS HARDY, age 29, pleaded guilty to Counts One, Two, Three, Four, Five, Seven, and Eight of the Superseding Indictment.
Count One charges the defendant with conspiring to distribute and to possess with the intent to distribute 280 grams or more of a mixture/substance containing a detectable amount of cocaine base in violation of 21 U.S.C. § 846, 21 U.S.C. § 841(a)(1), and 21 U.S.C. § 841(b)(1)(A); Counts Two through Five each charge the defendant with distribution of a quantity of cocaine base in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C); Count Seven charges the discharge of a firearm in furtherance of a crime of violence and a drug trafficking crime; and Count Eight charges possession with the intent to distribute twenty-eight grams or more of cocaine base in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(B).
The guilty plea followed a Drug Enforcement Administration (“DEA”) investigation that revealed beginning no later than January 2015 and continuing until his arrest, the defendant, Jarvis HARDY, distributed crack cocaine virtually every day throughout the streets of New Orleans. As a part of that investigation, DEA made four separate controlled buys of ¼ and ½ ounce quantities of crack cocaine from HARDY over an approximate ten-month timespan. Based on those controlled purchases, an arrest warrant for HARDY, along with a search warrant were obtained.
In the early morning hours of January 26, 2016, a team of law enforcement officers, led by DEA, gathered to prepare for the execution of HARDY’s arrest warrant. DEA TFO Stephen Arnold and several other agents and task force officers knocked and announced their presence and intention to execute the search warrant at 5300 Douglas Street. As TFO Arnold led the team through the house, HARDY fired his Smith and Wesson Model SW40VE, .40 caliber pistol, serial number DVB4809, three times at Stephen Arnold from a few feet away, striking Arnold twice in the neck and arm.
In his home on Douglas Street, HARDY had approximately 1 ½ ounces of crack cocaine, which later tested positive for cocaine base, and $985 in a safe in his bedroom, as well as instruments consistent with the conversion of cocaine hydrochloride to cocaine base, such as a crock pot. HARDY also had a razor blades, a grinder, a mixer, and a digital scale. HARDY additionally possessed two firearms, one of which he used to shoot TFO Arnold, and one which he kept near the safe with his cash and crack cocaine. HARDY’s firearms were a Smith and Wesson Model SW40VE, .40 caliber pistol, serial number DVB4809, and a Ruger Model P95, 9mm pistol, serial number 318-62450.
Stephen C. Arnold was a Jefferson Parish Sheriff’s Detective and was a deputized Drug Enforcement Administration Task Force Officer with the Drug Enforcement Administration New Orleans, Louisiana Field Office.
Although Stephen Arnold survived the shooting, he remains completely incapacitated and receives 24 hour care in an assisted facility.
This prosecution was the result of an intensive joint investigation conducted by Special Agents of the Drug Enforcement Administration, the Federal Bureau of Investigation, and the New Orleans Police Department.
The prosecution has been handled by Assistant U.S. Attorneys Liz Privitera, David Haller, Theodore Carter and Jay Quinlan.
Navy Officer Pleads Guilty to $2.7 Million Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach naval officer pleaded guilty today to his role in a $2.7 million procurement fraud scheme, and to lying on his federal income tax return.
According to court documents, Randolph M. Prince, 45, defrauded the Navy out of over $2.7 million through a procurement fraud scheme in which he, as a member of his Navy unit’s supply staff, steered government contracts to sham companies who were created and run by his friends. Prince had the authority to make purchase requests for military equipment on behalf of his command, and also had the ability to sign for goods when a company delivered them to his unit on the back end.
Prince took advantage of his position to direct purchases to the sham companies, which had been opened for the sole purpose of receiving government contracts from Prince. When a contract landed on the desk of one of these companies, Prince, and others, would generate fraudulent documentation to suggest the company had honored its end of the bargain. With this documentation in hand, the Navy would then pay the company. However, the sham companies never provided the Navy with anything at all. Instead, they distributed the Navy money amongst Prince and his associates.
Prince pleaded guilty to wire fraud and making a false statement in connection with his 2014 tax return. He faces a maximum of 20 years in prison when sentenced on December 3. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Special Assistant U.S. Attorney David A. Layne 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-116.
Modesto Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Everitt Aaron Jameson, 27, of Modesto, today to 15 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney McGregor W. Scott made the announcement.
“There is no place in the United States for terrorists and terrorist sympathizers who threaten innocent people, and the National Security Division will relentlessly seek to identify them and bring them to justice,” said Assistant Attorney General Demers. “Jameson put his fellow Americans at risk by supporting ISIS and planning an attack on behalf of the terrorist organization. This is unacceptable, and I am grateful for the hardworking agents and prosecutors who are responsible for this successful result.”
First Assistant U.S. Attorney Phillip A. Talbert stated: “Protecting our communities from terrorist threats is the Department of Justice’s highest priority. With the assistance of our investigative partners, we will continue to work to prevent such attacks and to vigorously prosecute those who seek to provide material support to terrorist organizations. We are grateful for the hard work of the FBI and the DOJ’s National Security Counterterrorism Division for their teamwork in bringing this case to a just conclusion.”
“This case demonstrates the FBI’s commitment to identifying and disrupting plots to harm the American public. With assistance from our state and local partners, we completed a thorough investigation while ensuring that Jameson would not be able to carry out his plans,” said Special Agent in Charge Ragan, “The public also plays an active role in ensuring the safety of our communities. We encourage members of the public to always say something if they see or hear anything that raises concerns about a possible attack.”
Jameson pleaded guilty on June 4, 2018. According to the plea agreement, between September 2017 and December 20, 2017, Jameson voiced support for ISIS knowing that the organization was engaging in terrorist activity and terrorism. Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.” Jameson also expressed support online for the October 31, 2017, terrorist attack in New York City, as well as other terrorist attacks. In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they needed done here and noted that his time in the military had trained him for combat and war. According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.
Later, Jameson met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS and offered to carry out violent acts and provide financial support for the terrorist organization.
According to court documents, on December 16, 2017, Jameson discussed what he could offer to the cause. Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack. He also noted that he could get PVC pipe, nails, and powder for explosive devices, and he asked for remote timing devices from that person. Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and that explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape. Jameson also offered to provide money to the cause.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker prosecuted the case with Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section.
Mishawaka Man Sentenced to 68 Months in PrisonRead the Press Release
SOUTH BEND – Brendan R. Eiler, 33 years old, of Mishawaka, IN, was sentenced by U.S. District Court Judge Jon E. DeGuilio after pleading guilty of Receipt of Child Pornography, announced U.S. Attorney Kirsch.
The Court imposed a sentence of 68 months imprisonment, 5 years of supervised release following his prison release, and $55,000 in restitution to victims of the crime.
According to documents in the case, between March 2016 and March 2017, Eiler downloaded child pornography from the internet using a program named “e-Mule.” He admitted to possessing approximately 35,079 images and approximately 4,170 videos that portrayed child pornography. Some of these depicted bestiality and sadistic images, and prepubescent children or children under the age of 12.
This case was investigated by the FBI and St. Joseph County Prosecutor’s Cybercrime Unit. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
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Marijuana Grower in Shasta-Trinity National Forest SentencedRead the Press Release
SACRAMENTO, Calif. — Carlos Gutierrez Gonzalez, 23, of Michoacán, Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to four years and two months in prison and ordered to pay $10,000 in restitution to the U.S. Forest Service for growing marijuana on the National Forest and for depredation of Public Lands and Resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, Gutierrez Gonzalez along with several other men, were growing marijuana in the Shasta-Trinity National Forest to the west of Weaverville, near Limedyke Mountain at an elevation of approximately 2,500 feet. On August 7, 2017, law enforcement officers executed a search of the grow. When they arrested Gutierrez Gonzalez, a loaded .45-caliber handgun was found near him and a bullet for that gun was in his pocket. Over 2,500 marijuana plants were found and eradicated. A camp site was found where the men had camped.
The environmental damage to the grow site was investigated and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems which has investigated over 100 of such public land marijuana grow sites.
The report of the investigation was filed with the court, and it found that at this grow site they found a half-full 33.8 oz. bottle of carbofuran hidden among the fertilizer bags and a bag containing an estimated 20 pounds of powder carbofuran. A food bottle found at the site had been reused and contained a mixture of refried beans and carbofuran (suspected bait for animals). Four cisterns were discovered with stopped-up mountain streams for use in the marijuana grow’s irrigation system with an estimated 4,500 feet of plastic water lines and over 1,500 pounds of soluble fertilizer. The report estimates that the operation used over 15,000 gallons of water per day. Open campsite latrines were found in proximity to waterways which would cause watershed contamination from fecal matter after the next substantial rain. About 1,000 pounds of trash and 500 pounds of plastic pipe were hauled out of the site. Tests on samples of the marijuana plants determined that carbofuran was present in the plant material.
This case was the product of an investigation by the U.S. Forest Service with the assistance of agents from the U.S. Bureau of Land Management, the California Department of Fish and Wildlife, the North State Marijuana Investigation Team and deputies of the Trinity County Sheriff’s Office. Assistant U.S. Attorney Richard Bender prosecuted the case.
Co-defendant Sebastian Martinez Arreola, who had been in the grow site approximately 11 days at the time of his arrest, pleaded guilty to marijuana cultivation charges and was sentenced to 20 months in prison on February 28, 2018. Charges are pending against Armando Mayorga Garcia. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Sentenced to 45 Years for 2009 Newport News MurderRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man was sentenced today to 45 years in prison for his leadership role in the 2009 murder of Louis Joseph Jr., in Newport News.
Mark Xavier Wallace, 37, was convicted following a jury trial on April 17, along with co-defendants Joseph James Cain Benson, of Boston, and Bryan Lamar Brown, of Newport News.
“We will remain steadfast in our fight against violent crime in Tidewater and are increasing our resources as we speak,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Wallace was the leader of a crew that brutally murdered Louis Joseph in his home in 2009. Today’s sentence reflects what happens to those commit heinous crimes of violence. This case is a quintessential example of law enforcement partnerships coming together to fight the scourge of drug violence. I want to thank the prosecutors who brought this matter to trial, the FBI, and the Newport News Police Department for their outstanding work on this difficult case.”
According to court documents, Louis Joseph was beaten and shot multiple times at his Denbigh home while he babysat a five-year-old child. Wallace organized the home invasion and recruited Benson and another individual who traveled from Boston to Williamsburg to commit the home invasion of Louis Joseph to obtain money and drugs. Brown transported the co-defendants to Joseph’s house and also supplied the two firearms to commit the murder. Benson and at least one other man entered the home of Joseph, beat him and shot him multiple times during the robbery.
Benson was sentenced to life in prison on July 24. Brown was sentenced to 45 years in prison on July 19.
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, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick 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. 4:17-cr-45.
Man Pleads Guilty to Child Pornography OffenseRead the Press Release
United States Attorney R. Trent Shores announced today that Justin Lee Boyer, 32, of Sapulpa pleaded guilty to Sexual Exploitation of a Child before District Judge Claire V. Eagan.
Boyer admitted that in October of 2017, he persuaded and enticed a 10 year old girl, living outside the state of Oklahoma, to text him sexually explicit pictures of herself. Boyer will be sentenced on November 8, 2018. He faces a mandatory minimum sentence of 25 years, up to a maximum penalty of 50 years in prison and a $250,000 fine. Following prison, he faces a term of supervised release of at least 5 years.
“We will aggressively prosecute sexual predators who victimize our children through child pornography. I am proud of our law enforcement partners who work tirelessly to stop child exploitation,” said United States Attorney Shores.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's 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.projectsafechildhood.gov.
The charges are a result of an investigation by the Federal Bureau of Investigation, the Jefferson County Sheriff’s Office in Colorado, the Creek County Sheriff’s Office, and the Sapulpa Police Department. Assistant United States Attorneys Jeffrey A. Gallant and Shannon B. Cozzoni handled the prosecution of this case.
Local Assistant United States Attorney Promoted to Lieutenant Colonel in Iowa Air National GuardRead the Press Release
On July 18, 2018, Assistant United States Attorney Tony Morfitt of the U.S. Attorney’s Office in the Northern District of Iowa, was confirmed to be promoted to the rank of Lieutenant Colonel in the Air Force and Iowa Air National Guard.
Lieutenant Colonel Morfitt currently serves as the Staff Judge Advocate for the 132d Wing, Iowa Air National Guard, in Des Moines, Iowa. The 132d Wing trains, deploys, executes, and sustains operations in missions supporting the Nation, State, and Community. The unit’s current missions include remotely piloted aircraft, cyber, and intelligence, surveillance, and reconnaissance missions.
“The Northern District of Iowa United States Attorney's Office is very proud of Lieutenant Colonel Morfitt,” United States Attorney Peter Deegan stated. “As an AUSA and a member of the military, he has served his country with honor and distinction. My office is committed to supporting not only Lieutenant Colonel Morfitt in his continuing military service, but ensuring that all members of the National Guard and Reserves in this district are supported and protected under the Uniformed Services Employment and Reemployment Rights Act.”
Prior to joining the 132d Wing, Lieutenant Colonel Morfitt was on active duty for over four years and was a member of the Air Force Reserves. During his career, he has been stationed in Illinois, Colorado, Kansas, and Iowa. He also completed a one-year remote tour of duty at Osan Air Base in South Korea.
In his civilian capacity, AUSA Morfitt has prosecuted a variety of federal criminal cases since joining the U.S. Attorney’s Office in 2010. During that time, he prosecuted two cases arising out of three murders that happened within six weeks, for which he won an Executive Office for U.S. Attorneys Director’s Award in 2007. In 2016, AUSA Morfitt successfully prosecuted Randy Metcalf, who was convicted by a jury of a racially motivated assault in Dubuque. Metcalf ultimately received the statutory maximum sentence of ten years in prison for committing a hate crime.
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Lincoln County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Lincoln County man pled guilty today to federal drug and gun crimes, announced United States Attorney Mike Stuart. Chad Anthony Wilson, 27, of West Hamlin, entered his guilty plea to possession with intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug crime. U.S. Attorney Stuart commended the investigative efforts of the Hurricane Police Department and the Drug Enforcement Administration.
“Another gun-toting drug dealer is off the streets,” said United States Attorney Mike Stuart. “We are laser-focused on prosecuting cases involving fentanyl distribution – so many West Virginians have died because of this deadly drug.”
Wilson admitted that late at night on January 8, 2018, he was sitting in his Chevy Impala, which was parked across all the dividers in the parking lot of American Inn in Hurricane. A Hurricane police officer approached the car, introduced himself, and saw a bag containing a crystal substance consistent with methamphetamine in the center console of the vehicle. When the officer asked if there were any weapons in the car, Wilson told the officer that he had a gun in the passenger seat, though he refused to hand over the weapon. A backup officer arrived shortly after and secured the gun, later identified as a Taurus, Millennium PT111, 9mm pistol.
Once the weapon was secure, officers asked Wilson if there were any more weapons or narcotics in the vehicle. Wilson told the officer about the bag in the center console. During a search of the vehicle, officers recovered that bag of suspected methamphetamine, as well as another bag containing 18.57 grams of a substance that was analyzed by a Drug Enforcement Administration laboratory and confirmed to be fentanyl.
Wilson faces up to 20 years in prison on the drug charge, followed by a consecutive term of at least five years and up to life in prison when he is sentenced on November 19, 2018.
Assistant United States Attorney Clint Carte is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. This prosecution is also part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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###Laurel Man Sentenced to over 13 Years in Federal Prison for Meth ConspiracyRead the Press Release
Gulfport, Miss. – Jack Benny Hales, 30, of Laurel, was sentenced Thursday by U.S. District Judge Sul Ozerden, Jr. to 157 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Office of Homeland Security Investigations in New Orleans. Hales was also ordered to pay a $5,000 fine.
On January 23, 2018, Hales delivered over 50 grams of 94% pure methamphetamine to a cooperating source in Gulfport, Mississippi. Prior to successfully delivering the methamphetamine, HSI agents learned of Hales’s location. Agents went to the location and blocked Hales’s car in the parking lot. While arresting Hales, agents found the methamphetamine in a bag in his car.
The case was investigated by Homeland Security Investigations and the Mississippi Bureau of Narcotics. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Last of Nine Defendants in Extensive Methamphetamine Trafficking Conspiracy Pleads GuiltyRead the Press Release
A Dubuque man who trafficked pounds of ice methamphetamine pled guilty today in federal court in Cedar Rapids. Samuel Oliver Taylor, III, age 41, of Dubuque, Iowa, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
Taylor was the last of nine defendants charged in the same criminal case convicted for their involvement in a conspiracy to distribute methamphetamine throughout Dubuque. On January 24, 2018, Melissa Marie Petesch, age 30, of Dubuque, was convicted of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. On March 8, 2018, Jose Juan Ceja, age 25, of Bell Gardens, California, and Michael Scott Boen, II, age 26, of Petosi, Wisconsin, were convicted of conspiracy to distribute methamphetamine. On May 21, 2018, Joshua Allen Carter, age 33, of Dubuque, was convicted of conspiracy to distribute methamphetamine. On May 30, 2018, Keith Richard Ellis, age 35, of Dubuque, and Martel Elliot Fountain, Sr., age 28, of Dubuque, were convicted of conspiracy to distribute methamphetamine. On August 1, 2018, Mauricio Eduardo Bayardo Chan, age 20, from Mexico, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering. On August 2, 2018, Brenda Lynn Harker, age 40, of Dubuque, was convicted of conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
The defendants’ plea agreements and evidence at previous court hearings establish that in February 2017, Taylor met Bayardo Chan in a hotel in Cedar Rapids, where Taylor purchased multiple ounces of ice methamphetamine from Bayardo Chan. After this meeting, Bayardo Chan personally delivered several more ounces of ice methamphetamine to Taylor. At the time, Taylor was living with Petesch in Petesch’s house on North Main Street in Dubuque.
Sometime in June 2017, Bayardo Chan met Taylor again and proposed that Bayardo Chan arrange for larger shipments of ice methamphetamine to be mailed to Taylor’s house. Taylor agreed and Bayardo Chan directed Taylor to pay for some of the shipments by wiring money through Western Union. Bayardo Chan instructed Taylor to wire the money to various people with addresses in Sinaloa, Mexico. Taylor had Harker, Petesch, and others wire thousands of dollars in drug proceeds on his behalf to Mexico.
From June 2017 until November 2017, Bayardo Chan mailed pounds of ice methamphetamine in several packages to Taylor’s house, where Taylor sold the methamphetamine to various dealers and users throughout Dubuque. Petesch assisted Taylor in selling the methamphetamine from her house. Taylor sold ounces of methamphetamine at a time to Boen, Carter, Ellis, Fountain, and Harker, which they would then redistribute. Periodically, Bayardo Chan and Ceja would meet Taylor at his residence to collect payments for the methamphetamine shipments.
On August 17, 2017, police investigators executed a search warrant at Carter’s house in Dubuque. Inside Carter’s residence, investigators found $4,743 in cash from his methamphetamine sales. Investigators also found approximately six ounces of ice methamphetamine that Carter was planning to sell.
On November 10, 2017, police investigators executed a search warrant on Petesch’s house. Investigators found $14,399 in cash from Taylor’s methamphetamine sales and two handguns that Taylor and Petesch were using to protect their methamphetamine proceeds. Further, investigators found Taylor standing outside of a bathroom where they discovered methamphetamine dissolving in the toilet bowl. Ultimately, investigators recovered over two ounces of ice methamphetamine from Petesch’s house.
On February 1, 2018, Ceja was arrested at the San Ysidro Port of Entry border crossing between San Diego, California, and Tijuana, Mexico. On March 20, 2018, Bayardo Chan was arrested in downtown New York City.
Taylor’s sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Taylor and all other defendants remain in custody of the United States Marshal pending sentencing. Taylor faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,750,000 fine, and at least 5 years’ supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program of the United States Department of Justice, through a cooperative effort of the Federal Bureau of Investigation, Dubuque Drug Task Force, Iowa Division of Narcotics Enforcement, Dubuque Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1002-LTS.
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Landover Man Sentenced to over 20 Years in Federal Prison for Charges Related to the Firebombing of His Girlfriend’s ApartmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Richard Butler III, age 36, of Landover, Maryland today to 243 months in prison, followed by three years of supervised release, for being a felon in possession of an explosive; malicious use of explosive materials; and transportation of explosive materials with intent to kill, injure, or intimidate, in connection with the attempted firebombing of his girlfriend’s apartment.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Prince George’s County Fire/EMS Chief Benjamin M. Barksdale; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on March 4, 2016, at 3:25 a.m., the Prince George’s County Fire Department (PGFD) were called to an apartment complex in Landover, Maryland for an automated general fire alarm, and located the remnants of a fire in the master bedroom of apartment 102. The fire had been extinguished by the fire sprinkler system prior to the arrival of the PGFD. Firefighters discovered that the master bedroom window had been broken and requested fire investigators from the Prince George’s County Fire Investigations Division to examine the apartment.
Fire investigators located a concrete brick inside the master bedroom on the floor between the bed and window and near the brick, an improvised incendiary device—specifically, a clear plastic water bottle containing an unknown liquid, and a paper towel protruding from the mouth of the bottle. A similar plastic bottle was found melted to the top of the burned bed. Outside, investigators located a blue plastic one-quart motor oil container. The ATF Forensic Science Laboratory examined the plastic bottles, which revealed the presence of gasoline.
At the time of the incident, two adults and three minors were in the apartment, which was leased by Butler’s girlfriend. She was not in the apartment at that time of the fire because she was at the Prince George’s County Police Department in connection with a complaint of sexual abuse involving Butler and her minor daughter. Butler’s girlfriend reported that she had last seen Butler at 11:28 p.m. and he was a wearing a black coat, blue jeans, and red, white, and blue sneakers.
Investigators reviewed surveillance videos from a nearby gas station which showed an individual wearing the clothing described by Butler’s girlfriend who pumped gas into three containers—two of which appeared to be clear plastic water bottles, and the third, a blue container which he retrieved from a trash can located next to the pump. The individual then entered the restroom and exited with paper towels in his hand, got a white plastic bag from the cashier and placed the containers in the plastic bag and walked away. During an interview with investigators on March 7, 2016, Butler’s girlfriend was shown a screen-capture from the gas station’s surveillance footage of the individual standing near the gas pumps, which she identified as Butler.
A subsequent review of the ATF National Firearms Registrations and Transfer Records determined that there were no destructive devices legally registered to Butler. In addition, Butler was prohibited from possessing destructive devices due to a previous felony conviction.
United States Attorney Robert K. Hur praised the ATF, the Prince George’s County Fire/EMS Department, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Jennifer R. Sykes, who prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Nation’s Second Largest Egg ProducerRead the Press Release
The Justice Department today announced that it has reached a settlement with Rose Acre Farms Inc. (Rose Acre), which is based in Indiana and is one of the largest egg producers in the United States. The settlement resolves a long-standing lawsuit filed by the Justice Department alleging that Rose Acre violated the Immigration and Nationality Act (INA) by discriminating against work-authorized non-U.S. citizens when verifying their work authorization.
The Department’s amended complaint, filed on Nov. 7, 2012, alleged that from at least June 2009 to Dec. 22, 2011, Rose Acre routinely required work-authorized non-U.S. citizens to present a Permanent Resident Card or Employment Authorization Document to prove their work authorization, but did not require specific documents from U.S. citizens. All work-authorized individuals, whether U.S. citizens or non-U.S. citizens, have the right to choose which valid documentation to present to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on employees’ citizenship or national origin.
“The INA makes clear that when employers verify the identity and work authorization of employees, they must not treat employees differently based on their citizenship or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “This case demonstrates the Department’s commitment to ensuring that employers implement the employment eligibility verification process in a manner that is non-discriminatory.”
Under the settlement, Rose Acre will pay a civil penalty of $70,000; train its employees on the INA’s anti-discrimination provision; and be subject to departmental monitoring for two years.
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the antidiscrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Jefferson County man admits to heroin and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tyler Logan Kranenberg, of Ranson, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Kranenberg, age 29, pled guilty to one count of “Possession of a Firearm During and in Relation to a Drug Crime” and one count of “Distribution of Heroin.” Kranenberg admitted to possessing a .25 caliber pistol while distributing heroin in July 2017 in Jefferson County.
Kranenberg faces up to life incarceration and a fine of $250,000 for the firearms charge, and he faces up to 20 years incarceration and a fine of up to $1,000,000 for the distribution count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jamaican National Charged in Conspiracy to Commit Mail and Wire FraudRead the Press Release
United States Attorney Duane A. Evans announced that ALEX SAUNDERS age 26, a resident of Jamaica and student athlete at Southern University in New Orleans, was charged on August 3, 2018, in a one-count Bill of Information with Conspiracy to Commit Mail and Wire Fraud.
According to the charging document, prior to August 2013, and continuing to in or around December 2015, Andre Bowyer and co-conspirators known and unknown to the United States Attorney employed false representations and promises in order to fool elderly persons and persons suffering from diminished mental capacities into sending funds via United States mail, private mail carrier, or through an electronic transfer to SAUNDERS, Debra Krom and other co-conspirators known and unknown to the United States Attorney.
After receiving victims’ funds through United States mail, private mail carrier, or through an electronic transfer, SAUNDERS, Krom, and other co-conspirators known and unknown to the United States Attorney, with knowledge that the money they received was obtained through false and fraudulent pretenses, did knowingly and intentionally transfer the stolen money to one of Bowyer’s bank accounts in Jamaica.
If convicted, SAUNDERS faces a maximum term of five years imprisonment, a fine of not more than $250,000, supervised release of three years, and a special assessment of $100.
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the United States Department of Homeland Security Investigations.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman.
Indiana Man Sentenced to 51 Months in PrisonRead the Press Release
SOUTH BEND – Peter Rink, 41 years old, of LaPaz, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after entering a plea of guilty to being a felon in possession of a firearm and to possessing a shotgun having a barrel of less than 18 inches in length, announced U.S. Attorney Kirsch.
Rink was sentenced to 51 months of imprisonment followed by 3 years of supervised release.
According to documents filed in the case, Rink was driving a vehicle with a woman who was trying to flee from police. When the vehicle was stopped by police, police found in the vehicle a loaded 12-gauge shotgun with a sawed-off barrel and a loaded 9mm pistol. Rink admitted that he possessed the two firearms despite having a prior felony conviction for aggravated assault in Arizona. The shotgun had a sawed-off barrel that had been shortened to a length in violation of the National Firearms Act. Rink admitted to sawing off the barrel himself. The shotgun and pistol were located on the rear seat of the vehicle in a backpack which also contained methamphetamine, a scale, plastic baggies, and other drug paraphernalia.
This case was investigated by ATF with the assistance of the Marshall County Sheriff’s Department and the Marshall County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorney Luke N. Reilander.
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Hayward Resident Sentenced to over Five Years in Prison for Selling Firearms and Prescription Drugs Without A License and Related ChargesRead the Press Release
OAKLAND – Marcos Anthony Hatch was sentenced Friday, August 3, 2018, to 63 months in prison for dealing in firearms and prescription medications without a license and related charges, announced United States Attorney Alex G. Tse, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder, and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Jon S. Tigar after Hatch pleaded guilty to the charges.
Hatch, 21, of Hayward, pleaded guilty on December 15, 2017. According to his plea agreement, between January and May of 2017, he operated a social media account on which he posted photographs of prescription drugs, marijuana, and guns for sale. Hatch admitted that he never obtained a license to sell firearms and never had any privileges to prescribe controlled substances. Nevertheless, Hatch acknowledged that he engaged in the repetitive purchase and resale of firearms for profit. Hatch further admitted he sold at least three guns to individuals he knew, or had reason to believe, could not lawfully possess firearms.
On May 16, 2017, federal agents searched Hatch’s home and found $59,000 in cash, marijuana, a Glock 32 .357 caliber pistol with replacement barrel, four other firearms, and 40 pills of alprazolam (commonly known as Xanax). In his plea, Hatch admitted he intended to distribute the alprazolam, that the Glock had been modified to function as a fully automatic machine gun.
On July 25, 2017, a federal grand jury returned a superseding indictment charging Hatch with one count each of conspiracy to deal in firearms without a license, in violation of 18 U.S.C. § 371; possession of an unregistered firearm, in violation of 26 U.S.C. § 5861(d); dealing firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A); possession with intent to distribute alprazolam, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(2); and advertisement of a controlled substance on the internet, in violation of 21 U.S.C. § 843(c)(2)(A). Hatch pleaded guilty to all the counts except the conspiracy and advertisement charges, which were dismissed.
In addition to the prison term, Judge Tigar sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since June 2018 and will begin serving the sentence immediately.
The prosecution is the result of a joint investigation by the DEA Tactical Diversion Squad and the ATF.
Hartford Man Sentenced to 4 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARCUS GARY, 35, of Hartford, formerly of South Windsor, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking by members and associates of the Orange Street Killas (OSK) in Hartford’s Parkville neighborhood. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the drugs on the streets of Hartford.
The investigation revealed that GARY supplied heroin to Antwane Williams-Bey, also known as “Buck,” an OSK member, for street sale.
GARY was arrested on March 8, 2017. On March 30, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
GARY, who had been released on bond, was remanded to custody at the conclusion of today’s court proceeding.
GARY’s criminal history includes convictions for firearm and drug offenses.
Sixteen individuals were charged and convicted as a result of this investigation. Williams-Bey pleaded guilty and awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Grenada Lake Medical Center to Pay More Than $1.1 Million to Resolve False Claims Act Allegations Involving Medically Unnecessary Psychotherapy ServicesRead the Press Release
The Justice Department announced today that Grenada Lakes Medical Center (GLMC), a publicly-owned hospital which at various times has been operated by the University of Mississippi Medical Center and by the Grenada Lake Medical Center Board of Trustees, has agreed to pay more than $1.1 million to resolve False Claims Act allegations that the hospital sought and received reimbursement from Medicare for services that were not medically reasonable or necessary.
The settlement resolves allegations that, beginning in January 2005 and continuing until April 2013, the hospital submitted claims for Intensive Outpatient Psychotherapy (IOP) services that did not qualify for Medicare reimbursement. The IOP services in question were performed on GLMC’s behalf by Allegiance Health Management (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by GLMC directly.
“Hospitals that participate in the Medicare program are responsible for ensuring that the services performed at their facilities or on their behalf reflect the medical needs of patients rather than the desire to maximize profit,” said Acting Assistant Attorney General Chad A. Readler for the Civil Division. “The Department of Justice will continue to hold accountable those who misspend taxpayer funds by providing medically inappropriate services.”
Today’s settlement with GLMC follows a recent settlement with Allegiance, as well as previous settlements with more than twenty other hospitals where Allegiance provided IOP services.
“We will not tolerate hospitals that place profit over legitimate patient care by billing for medically unnecessary services,” said C.J. Porter, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “In coordination with our partners, we will continue to investigate these cases and ensure taxpayer funds are used as intended.”
The settlement with GLMC resolves certain allegations in a lawsuit filed in the Eastern District of Arkansas under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The lawsuit was filed by Ryan Ladner, who formerly worked for Allegiance as a Program Manager at the Inspirations Outpatient Counseling Center located at Wesley Medical Center in Hattiesburg, Mississippi. Mr. Ladner will receive approximately $195,000 as his share of the GLMC settlement.
This, and prior settlements in this matter, were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Eastern District of Arkansas, and the Department of Health and Human Services, Office of Audit Services and Office of Inspector General.
The claims settled by the current agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned U.S. ex rel Ladner v. Allegiance Health Management, Inc., et al, No. 4:10-CV-170 (E.D. Ark.).
Georgia Man Charged with Conspiring to Launder Stolen Drug ProceedsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Thomas Oiler, age 49, of Flowery Branch, Georgia, was charged in a criminal information on August 3, 2018, with conspiring to launder stolen drug proceeds.
According to United States Attorney David J. Freed, the criminal information alleges that Oiler was part of a conspiracy that stole more than $800,000 of cash drug proceeds before turning more than $1.7 million of cash drug proceeds over to law enforcement officers. It is alleged that Oiler rented a storage unit in Baltimore and travelled to Pennsylvania at the request of an unindicted coconspirator who had stolen more than $800,000 of cash drug proceeds from a coast-to-coast marijuana trafficking organization. Oiler allegedly took the vast majority of those proceeds and stored them in the rented unit in Baltimore. It is further alleged that Oiler then laundered those funds by conducting numerous financial transactions, including sending cash to the unindicted coconspirator and a now-retired agent of the PA Attorney General’s Office Bureau of Narcotics Investigations Mobile Street Crimes Unit. That agent, Timothy B. Riley, previously pled guilty to participating in the conspiracy and awaits sentencing. Oiler netted about $400,000 of the proceeds.
The investigation began after Riley was notified on June 24, 2015, by an unindicted coconspirator about a large amount of cash from a coast-to-coast marijuana trafficking organization. Riley and other members of the Mobile Street Crimes Unit met the unindicted coconspirator at a truck stop in Carlisle, Pennsylvania to seize cash out of the truck. The amount seized was $1,770,650. The unindicted coconspirator provided information about the marijuana trafficking organization for which he was transporting the cash. An investigation of that drug trafficking organization revealed the amount of cash in that shipment was $2,590,000, and an allegation was made that Agents had stolen more than $800,000 from the shipment when it was seized. To ensure a full investigation was undertaken, the PA Attorney General referred the matter to the Federal Bureau of Investigation.
The FBI, joined by Internal Revenue Service – Criminal Investigations, conducted a full investigation, revealing more than $800,000 was stolen by the driver of the truck who turned the rest of the money in, aided by Oiler. After the seizure, Timothy B. Riley received three cash payments from the driver, totaling $48,000. Riley then deposited and conducted other financial transactions with that money, knowing it was stolen proceeds of drug trafficking. Oiler conducted financial transactions with more than $240,000 of the proceeds.
The case was investigated by the Harrisburg Offices of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation, with the full assistance of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Public Utility Employee Pleads Guilty in Theft of More Than $4 Million from Public Utility and CustomersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN FARCHIONE, a former Manager at a public utility company (the “Public Utility”), pled guilty today in Manhattan federal court to four felony counts in connection with a scheme to steal more than $4 million from the Public Utility and its customers between 2005 and 2016. During that time period, FARCHIONE obtained and kept millions of dollars in customer payments intended for the Public Utility and then manipulated the Public Utility’s computer and accounting systems to conceal the theft. FARCHIONE pled guilty before U.S. District Judge J. Paul Oetken to one count of honest services fraud, one count of mail fraud, one count of conspiracy to commit mail fraud, and one count of aggravated identity theft.
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, for more than a decade, John Farchione abused his position to steal millions of dollars from his employer, a public utility company New Yorkers rely upon. We will continue to work aggressively to protect New York’s public utilities and their customers from such brazen criminal conduct.”
According to allegations contained in the Indictment and statements made in related court filings and proceedings:
From at least in or about 2005, up to and including in or about November 2016, FARCHIONE orchestrated fraudulent schemes that allowed him to steal millions of dollars from the Public Utility.
FARCHIONE, who was employed by the Public Utility as a manager in Customer Operations during the relevant time period, devised and implemented the scheme, using his knowledge of the Public Utility’s billing and payment processes. FARCHIONE carried out the scheme with a co-conspirator, Louis Bendel, who has previously pled guilty in connection with his role in the scheme. Bendel operated a business that aggregated payments from customers of the Public Utility for the purpose of passing such payments on to the Public Utility. FARCHIONE and Bendel effected the fraud in part through conspiring to submit fraudulent checks and payments to the Public Utility, in amounts owed by customers who provided cash to Bendel believing he would submit those payments to the Public Utility on their behalf.
In fact, however, FARCHIONE and Bendel kept the customer cash for themselves and submitted fraudulent checks to the Public Utility that purported to convey aggregated payments by multiple customers of the Public Utility. FARCHIONE, by virtue of his position as an employee of the Public Utility, was able to conceal the nature of the fraudulent checks, and thereby perpetuate the fraudulent scheme, through his knowledge of and access to the Public Utility’s account payment system.
Additionally, FARCHIONE and Bendel conspired to create false and fraudulent positive balances on certain customer accounts related to the scheme, and then caused the Public Utility to issue refunds that were not actually due, the proceeds of which were obtained and shared by FARCHIONE and Bendel.
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FARCHIONE, 65, pled guilty to one count each of honest services fraud, which carries a maximum sentence of 20 years in prison; mail fraud, which carries a maximum sentence of 20 years in prison; conspiracy to commit mail fraud, which carries a maximum sentence of 20 years in prison; and aggravated identity theft in connection with the fraudulent schemes, which carries a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. In addition, FARCHIONE will be subject to financial penalties including restitution and forfeiture in amounts to be determined at sentencing.
FARCHIONE is scheduled to be sentenced by Judge Oetken on November 16, 2018.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Sidhardha Kamaraju are in charge of the prosecution.
Former Member of Barbados Parliament and Minister of Industry Indicted for Money LaunderingRead the Press Release
A three-count indictment was unsealed today in federal court in Brooklyn charging Donville Inniss, a former member of the Parliament of Barbados and the Minister of Industry, International Business, Commerce and Small Business Development of Barbados, with conspiracy to launder money and money laundering. The charges stem from Inniss’s acceptance of bribes from a Barbadian insurance company in 2015 and 2016 when he was a public official. Inniss was arrested Friday and was arraigned today before United States Magistrate Judge Julie Sneed in the Middle District of Florida at the federal courthouse in Tampa. Inniss was released on a $50,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment.
According to the indictment, between August 2015 and April 2016, Inniss engaged in a scheme to accept approximately $36,000 in bribes from high-level executives of an insurance company headquartered in Barbados (“the Barbados Company”) and launder that money through the United States. In exchange for the bribes, Inniss leveraged his position as the Minister of Industry to enable the Barbados Company to obtain two government contracts. Inniss concealed the bribes by arranging to receive them through a dental company and a bank located in Elmont, New York. Barbados Company executives transferred the funds to the dental company using an invoice falsely claiming that the payments were for consulting services. During the time of the charged conspiracy, Inniss was a legal permanent resident of the United States residing in Tampa, Florida and Barbados.
“As charged in the indictment, Inniss abused his position of trust as a government official by taking bribes from a Barbadian company, then laundered the illicit funds through a bank and a dental company located in the Eastern District of New York,” stated United States Attorney Donoghue. “The Department of Justice will continue to hold accountable corrupt government officials here or abroad who use the U.S. financial system to facilitate their criminal conduct.”
“Donville Inniss allegedly used the U.S. financial system to launder bribes he received while serving as a government official in Barbados,” said Assistant Attorney General Benczkowski. “These charges demonstrate the commitment of the Department and our law enforcement partners to hold accountable anyone who seeks to use our financial system to promote or launder the corrupt proceeds of their crimes.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Assistant United States Attorney Sylvia Shweder of the Eastern District of New York’s Business and Securities Fraud Section, and Trial Attorney Gerald M. Moody, Jr., of the Criminal Division’s Fraud Section, are in charge of the prosecution.
The Defendant:
DONVILLE INNISS
Age: 52
BarbadosE.D.N.Y. Docket No. 18-CR-134 (KAM)
Former Member of Barbados Parliament and Minister of Industry Charged with Laundering Bribes from Barbadian Insurance CompanyRead the Press Release
The former Minister of Industry of Barbados was arrested Friday and had his initial court appearance today in connection with an indictment charging him with laundering bribes that he allegedly received from a Barbadian insurance company in exchange for official actions he took to secure government contracts for the insurance company.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York and Assistant Director-in-Charge William F. Sweeney Jr. of the FBI New York Field Office made the announcement.Donville Inniss, 52, a U.S. legal permanent resident who resided in Tampa, Florida, and Barbados, was charged in an indictment with one count of conspiracy to launder money and two counts of money laundering. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on March 15.
“Donville Inniss allegedly used the U.S. financial system to launder bribes he received while serving as a government official in Barbados,” said Assistant Attorney General Benczkowski. “These charges demonstrate the commitment of the Department and our law enforcement partners to hold accountable anyone who seeks to use our financial system to promote or launder the corrupt proceeds of their crimes.”
“As charged in the indictment, Inniss abused his position of trust as a government official by taking bribes from a Barbadian company, then laundered the illicit funds through a bank and a dental company located in the Eastern District of New York,” said U.S. Attorney Donoghue. “The Department of Justice will continue to hold accountable corrupt government officials here or abroad who use the U.S. financial system to facilitate their criminal conduct.”
The indictment alleges that in 2015 and 2016, Inniss took part in a scheme to launder into the United States approximately $36,000 in bribes that he received from high-level executives of a Barbadian insurance company. At the time, Inniss was a member of the Parliament of Barbados and the Minister of Industry, International Business, Commerce, and Small Business Development of Barbados. In exchange for the bribes, Inniss leveraged his position as the Minister of Industry to enable the Barbadian insurance company to obtain two government contracts. To conceal the bribes, Inniss arranged to receive them through a U.S. bank account in the name of a dental company, which had an address in Elmont, New York.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New York Field Office is investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
Trial Attorney Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sylvia Shweder of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Florida Man Pleads Guilty to Accepting $2.5 Million in Bribes and KickbacksRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bhaskar Patel, 67, of Windermere, Florida, appeared today in federal district court in Rutland to answer to charges that, while employed by Schneider Electric Building Americas, he unlawfully solicited and accepted $2,536,119.19 in bribes and kickbacks associated with federal energy savings performance contracts (“ESPCs”) issued to Schneider Electric by various federal agencies. The Information filed in the case covers the time-period between June 6, 2011 and April 19, 2016. Chief District Court Judge Geoffrey W. Crawford accepted Patel’s guilty plea to both of the counts charged in the Information and released Patel on conditions. Judge Crawford ordered Patel to be back in U.S. District Court on December 7, 2018 for sentencing.
According to court documents, law enforcement initially received information that Patel had altered and falsified a bid document submitted to Schneider Electric by a Vermont subcontractor. That subcontractor was bidding for work on an ESPC at the United States Department of Veterans Affairs, White River Junction, Vermont Medical Center (“VA-WRJ”). Patel selected a different subcontractor to work on Schneider’s project, and – in order to cover his tracks – falsified the losing local bid. From there, investigators uncovered a wide-ranging scheme to defraud the federal government, whereby Patel received in excess of $2.5 million in illegal bribes and kickbacks in exchange for awarding a piece of Schneider Electric’s enormous federal contracts to subcontractors who agreed to pay bribes and kickbacks for the work. Patel directed the subcontractors to pay him by check, often diverting funds through his adult son and daughter, and insisting on a bogus reference notation.
For each contract named in the Information, Patel, a Senior Project Manager, was authorized and directed by Schneider Electric to obtain bids from subcontractors and recommend for selection the subcontractors that would be awarded a contract under an ESPC.
According to the Information, Patel accepted illegal kickbacks and bribes in connection with a $70 million project for the United States Coast Guard (“USCG”) in Aguadilla, Puerto Rico; a $24.7 million project for the United States Department of Agriculture (“USDA”) in Albany, California; a $12.6 million project for the United States General Services Administration (“GSA”) in St. Croix, U.S. Virgin Islands; a $21.8 million project for GSA in San Juan, Puerto Rico and St. Thomas, U.S. Virgin Islands; a proposed project of $42.4 million for work on the VA medical centers in Vermont, Massachusetts, Rhode Island, and Maine; and a $114.3 million project for the U.S. Navy for work on the Naval base in Coronado, California.
Patel pleaded guilty to one count of accepting illegal kickbacks in connection with federal contracts, a violation of 41 U.S.C. §§ 8702 and 8707, and one count of accepting bribes in connection with federal contracts, a violation of 18 U.S.C. § 666. Patel faces up to ten years of imprisonment, followed by up to three years of supervised release, on each of the counts of conviction. Patel further faces a fine of up to $5,072,238.38, or twice his ill-gotten gains. The actual sentence, however, will be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The government also filed a Notice of Forfeiture in the amount of $2,536,119.19, which Patel agreed to as part of his guilty plea. As part of his negotiated plea with the government, the government agreed to reduce the forfeiture from $2.5 million to $1.75 million if Patel pays $950,000 in forfeiture on or before his sentencing date.
United States Attorney Christina E. Nolan commended the collaborative investigative efforts of the VA Office of Inspector General, the GSA Office of Inspector General, the Naval Criminal Investigative Service, the USDA Office of Inspector General, and the Coast Guard Investigative Service, stating: “This important conviction results from a team effort by talented law enforcement officers from a cross-section of government agencies. Patel’s crime involved a sweeping fraud that harmed many federal agencies and the American citizens and government employees who depend upon them. The U.S. Attorney’s Office is committed to continuing to collaborate with our law enforcement partners in all agencies to combat large-scale financial fraud and guard against misuse, diversion, and theft of taxpayer dollars. Unmasking and combatting crimes of greed will remain a top priority of the USAO. I also commend the talented AUSAs in the district of Vermont who worked with law enforcement over the course of a lengthy investigation to achieve justice in this complex case. Our skilled prosecutors will remain focused and relentless in their pursuit of justice in complex fraud cases, in collaboration with our agency partners.”
“Federal energy savings performance contracts are intended to save VA money. Bribery and other corrupt acts by contractors instead divert and waste precious dollars intended for our nation’s veterans,” said VA-OIG Special Agent-in-Charge Sean J. Smith. “The VA Office of Inspector General will continue to work with our partners in the law enforcement community to prevent this type of fraud and hold any wrongdoers accountable.”
USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins commented, “We appreciate the commitment of the U.S. Attorney’s Office and the cooperative efforts of our law enforcement partners throughout this significant investigation. Mr. Patel’s guilty plea sends a strong message regarding the benefit of working across agency lines to protect the integrity of the procurement process throughout Government. The USDA Office of Inspector General will continue to dedicate resources to investigate those who unlawfully solicit and accept bribes and kickbacks involving USDA contracts.”
CGIS Special Agent in Charge Art Walker stated, “The Coast Guard Investigative Service is committed to protecting Coast Guard assets, personnel, and operations worldwide. CGIS Special Agents from the Major Procurement Fraud Division coordinated with federal law enforcement partners to uncover this massive scheme that defrauded the U.S. Government.”
“The GSA Office of Inspector General will continue to aggressively investigate GSA contractors who engage in bribery and kickback schemes at the expense of the government,” added Special Agent in Charge, Luis Hernandez.
NCIS Northeast Field Office Special Agent in Charge Leo S. Lamont stated, “Fraud is never a victimless crime. In this case involving bribery and kickbacks related to the mischarging of the Navy for services and construction, the victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest.”
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach, Owen Foster, and Paul van de Graaf. Bhaskar Patel is represented by David Haas, Esq., of Haas Law in Orlando, Florida; and Heather Ross, Esq., of Sheehey, Furlong & Behm PC in Burlington, Vermont.
El Departamento de Justicia Resuelve una Denuncia Relacionada con la Inmigración contra el Segundo Productor de Huevos Más Grande en el PaísRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia hoy anunció que ha alcanzado un acuerdo con Rose Acre Farms, Inc. («Rose Acre»), uno de los principales productores de huevos en los Estados Unidos cuya sede se encuentra en Indiana. El acuerdo resuelve un pleito entablado desde hace mucho tiempo por el Departamento de Justicia, en el cual este alega que Rose Acre vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a trabajadores que no eran ciudadanos de los EE. UU pero que sí disponían de permiso para trabajar a la hora de verificar su autorización para trabajar.
La denuncia enmendada del Departamento, que se presentó el 7 de noviembre del 2012, alegó que desde al menos junio del 2009 hasta el 22 de diciembre del 2011, Rose Acre, de forma rutinaria, requirió que trabajadores que no eran ciudadanos de los EE. UU. pero que sí disponían de permiso para trabajar presentaran una tarjeta de residencia permanente o documento de autorización para demostrar su autorización para trabajar, mientras que no requerían documentos específicos a ciudadanos estadounidenses. Todos aquellos individuos con autorización, ya sean ciudadanos o no, tienen el derecho a elegir cuáles documentos válidos desean presentar para demostrar que están autorizados para trabajar. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales innecesarios con base en la ciudadanía o nacionalidad de origen de los mismos.
«La INA deja claro que cuando los empleadores verifican la identidad y autorización para trabajar de sus empleados, ellos no pueden tratar a los empleados de una forma diferente por motivos de su ciudadanía o nacionalidad de origen», declaró el Fiscal General Auxiliar en funciones, John Gore, de la División de Derechos Civiles. «Este caso demuestra el compromiso del Departamento a asegurar que los empleadores implementen el proceso de verificación de la elegibilidad para trabajar de una forma que no sea discriminatoria».
Conforme el acuerdo, Rose Acre pagará sanciones civiles que ascienden a $70,000, capacitará a sus empleados en cuanto a la disposición antidiscriminatoria de la INA y se someterá a la supervisión por parte del Departamento durante dos años.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Darlington Man Sentenced to 121 Months in Federal Prison on Robbery and Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Kenneth Eric Coe, Jr. a/k/a “Junior,” age 24, of Darlington, SC, was sentenced in federal court in Florence, South Carolina, for aiding and abetting Robbery of United States Government Property and aiding and abetting the Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence. United States District Judge R. Bryan Harwell, of Florence, sentenced Coe to 121 months in federal prison with 5 years of supervised release to follow along with $400.00 in restitution to be paid to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The evidence presented at the guilty plea hearing established that on March 29, 2017, Coe along with another individual robbed a person having lawful charge, custody, and control of $400.00 belonging to the Bureau of Alcohol, Tobacco, Firearms and Explosives by use of a firearm. At the hearing, the agent presented evidence that during the robbery, a firearm was pointed at the victim in order to force the victim to give up the cash.
The case was investigated by agents of ATF, the Darlington County Sheriff’s Office, and the Hartsville Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire, which aggressively prosecutes firearm cases. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell and William Lewis of the Columbia office handled the case.
Project CeaseFire is 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.
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Criminal Defense Attorney Pleads Guilty to Conspiring to Distribute Heroin in Scheme to Get Out of A DUI Offense; Agrees to Forfeit His Law LicenseRead the Press Release
Tampa, FL – Steven Paul Burch (43, Cape Coral) has pleaded guilty to conspiring to distribute heroin. He faces a maximum penalty of 20 years in federal prison. In his plea agreement, Burch has agreed to forfeit his license to practice law, which was used to facilitate the offense. A sentencing date has not yet been set.
According to the plea agreement, in August 2015, Burch was arrested in Sarasota County for driving under the influence of alcohol and causing property damage. In an effort to reduce his charges and avoid punishment from the Florida Bar, Burch recruited co-defendant and client Herbert Battle to send packages of drugs through the mail that Burch could then report to law enforcement as a form of cooperation. Unbeknownst to Burch and Battle, Battle’s wife (Qualonda Battle) recorded one of the conversations at Burch’s law office. In the recording, Burch discusses how the packages were going to be sent, where they were going to go, and how the conspirators would get away with it.
In March 2016, Battle shipped an ounce of heroin from California to Sarasota County. Battle sent the tracking number to his wife who, using a disposable phone, texted the tracking number to Burch, who then forwarded the tracking number to law enforcement. The package was intercepted at the FedEx warehouse in Bradenton, where a search of the package revealed an ounce of heroin that had been concealed in a bag of beef jerky.
This case was investigated by the Federal Bureau of Investigation with assistance from the Sarasota County Sheriff’s Office, the Drug Enforcement Administration, the Manatee County Sheriff’s Office, the State Attorney’s Office for the 12th Judicial Circuit and, the Florida Bar Association. It is being prosecuted by Assistant United States Attorney Dan Baeza and Diego Novaes.
Columbia Man Pleads Guilty to Sex Trafficking, Illegal Sexual ActivityRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to sex trafficking a minor and illegal sexual activity.
Kenneth Ronald Jones, 26, of Columbia, pleaded guilty to one count of the sex trafficking of a minor and two counts of transportation for illegal sexual activity by coercion and enticement.
By pleading guilty today, Jones admitted that he induced three victims, including a minor, to travel across state lines to engage in prostitution and illicit sexual activity between May 1 and June 1, 2016.
On June 28, 2016, a 17-year-old victim from Wisconsin – identified in court documents as “FV1” – contacted her social worker and reported that she was being held against her will by Jones. She was located at a residence in Columbia that was known for prostitution and removed by law enforcement officers.
FV1 told investigators that she met Jones and another victim, identified as “FV2,” in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. As soon as she arrived in Columbia, she was expected to see clients. Jones, who knew she was 17 years old, instructed FV1 to tell everyone at the house she was 18 years old. Jones had her charge $120 for half an hour, or $160 for a full hour. FV1 gave $20 to the owners of the residence and the rest of the proceeds of her prostitution to Jones.
FV2 told investigators that she met Jones in March 2016 at a party in Milwaukee and accompanied him to Columbia because she believed she would be assisting Jones with selling narcotics. FV2 estimated that she earned about $2,500 for engaging in prostitution, but was not allowed to keep any of the money. After about two weeks in Columbia, FV2 and Jones returned to Milwaukee to pick up FV1, after which they returned to the same brothel in Columbia.
Jones arranged for a third victim, identified as “FV3,” to join them in Columbia. FV3, after communicating with Jones on Facebook, agreed to come to Columbia to help him with his drug business. After she arrived in Missouri, Jones told FV3 she needed to make money and threatened to kick her to the streets if she did not do what he wanted. FV3 agreed and did a prostitution “date.” FV3 stated Jones directed her to charge clients $120 per half hour and $200 per hour. FV3 gave a door fee to the owners of the brothel and the rest of the money to Jones.
Under federal statutes, Jones is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Greendale, Wis., Police Department, the Columbia, Mo., Police Department and the Sturgeon Bay, Wis., Police Department.
Chief Financial Officer of Mission Support Alliance Agrees to Pay $124,440 for Allegedly Accepting Kickbacks from Lockheed MartinRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Richard A. Olsen, the Chief Financial Officer (CFO) for Department of Energy (DOE) prime contractor Mission Support Alliance LLC (MSA), has agreed to pay $124,440 to resolve allegations that he violated the False Claims Act and the Anti-Kickback Act when he took at least $40,000 in illegal kickbacks paid to him by Lockheed Martin Corporation (Lockheed Martin).
In August 2009, MSA began performance under a multi-billion dollar services contract with DOE to provide services in support of the environmental cleanup of DOE’s Hanford Site. MSA was partly owned by Lockheed Martin and entered into a subcontract worth hundreds of millions of dollars with a subsidiary of Lockheed Martin for the performance of IT services at the Hanford Site. By operation of the prime contract and subcontract, the United States, through DOE, paid 100 percent of the IT services provided by Lockheed Martin at Hanford.
The United States alleged that Mr. Olsen, while he was an employee of Lockheed Martin on loan to MSA as MSA’s CFO, received at least $41,480 in illegal kickback payments from Lockheed Martin to improperly obtain or reward favorable treatment for Lockheed Martin in connection with the subcontract and/or prime contract. The United States’ allegations included that Mr. Olsen assisted in drafting and submitting false statements to DOE regarding the labor rates charged by Lockheed Martin as well as Lockheed Martin’s anticipated profit in providing IT services at Hanford. The United States further alleged that Mr. Olsen was involved with the resulting submission of false and inflated claims to DOE between March 1, 2010 and February 21, 2012, when he received the $41,480 illegal kickback payment from Lockheed Martin rewarding him for the impermissible profit Lockheed Martin reaped as a result of the alleged fraud.
United States Attorney Harrington said, “This settlement requires Mr. Olsen to pay back three times the amount he received from the alleged fraud and holds Mr. Olsen accountable for his actions. It also sends a strong message to those individuals who may engage in similar conduct. I commend the outstanding investigative work performed by the Department of Energy Office of Inspector General, which made this resolution possible.”
The settlement agreement requires Mr. Olsen to pay the full $124,440 settlement amount within five days of signing the agreement. The settlement agreement further requires Mr. Olsen to cooperate with the ongoing investigation of the alleged fraud scheme including submitting to an in person interview with Special Agents for the Department of Energy Office of Inspector General (OIG).
April G. Stephenson, DOE’s Acting Inspector General said, “The Department of Energy Office of Inspector General is committed to ensuring the integrity of our contractors and subcontractors by detecting and holding accountable those who choose to engage in false claim and kickback schemes. This settlement is a result of our staff’s dedicated work to ensure the government is not charged with false and inflated claims. We appreciate the efforts of the DOJ in pursuing this matter and will continue to work collaboratively with them to aggressively investigate those who seek to defraud Department programs.”
This settlement was negotiated by Assistant United States Attorneys Tyler Tornabene and Dan Fruchter, with analytical support from Affirmative Civil Enforcement Investigative Analyst Jeanne Harkleroad, and in conjunction with the Department of Justice Civil Frauds Section and the Department of Energy Office of Inspector General. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Canadian Man Sentenced to 18 Years’ Imprisonment for Multi-Million Dollar Fraud Targeting U.S. LawyersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Henry Okpalefe, age 50, currently incarcerated and formerly of Toronto, Ontario, Canada, was sentenced to 216 months’ imprisonment and three years’ supervised release by United States District Court Judge John E. Jones, III, for conspiracy to commit mail fraud, wire fraud and money laundering. Okpalefe was convicted on March 30, 2017, after a three-day bench trial before Judge Jones.
According to United States Attorney David J. Freed, between 2008 and 2010, Okpalefe and his co-conspirators stole over $23 million from hundreds of lawyers and law firms in the Middle District of Pennsylvania and nationwide. Under the guise of seeking legal representation, the conspirators contacted attorneys and law firms in the United States using fake email accounts. Once an attorney or law firm agreed to represent the purported client, the conspirators sent bank checks through the mail and instructed them to deposit the money into their IOLTA accounts. From there, the attorneys were provided with wire instructions and they wired their legitimate funds to Asian bank accounts. Before the counterfeit checks were returned as fraudulent, the money had already been withdrawn by co-conspirators in Asia and distributed to conspirators’ bank accounts in Nigeria and Canada. Okpalefe and his co-conspirators operated in Canada, Nigeria, Japan and South Korea.
Judge Jones ordered Okpalefe to pay $23 million in restitution to the victims and to forfeit $504,787.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation and the United States Postal Inspection Service. The Toronto Strategic Partnership and the Toronto Police Service provided integral assistance in the investigation and prosecution of the case. The Justice Department's Office of International Affairs provided assistance with the investigation. Assistant United States Attorneys Chelsea Schinnour and Kim Douglas Daniel prosecuted the case.
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