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2 August 2018
One-Stop Shop Heroin Dealer Sentenced to 190 Months in Federal PrisonRead the Press Release
Memphis, TN – A local man has been sentenced to 190 months in federal prison for possession with intent to distribute heroin; being a felon in possession of a firearm; and possession of a firearm in furtherance of drug trafficking. D. Michael Dunavant U.S. Attorney for the Western District of Tennessee announced the sentence today.
According to information presented in court, in November 2016, Bartlett Police Department, Narcotics Unit, initiated an investigation into the illegal drug trafficking of Randy Martell Robertson, 35, a/k/a/ "Black." The investigation revealed Robertson was selling heroin and various other narcotics out of his apartment as well as two hotel rooms on Lamar Avenue, in Memphis.
U.S. Attorney D. Michael Dunavant said: "Armed drug traffickers present a significant risk to public safety in multiple ways. Targeted enforcement and aggressive prosecution of such dangerous offenders is crucial to combatting addiction and violent crime in our neighborhoods. Robertson was a one-stop shop drug dealer who was willing to protect his product at all costs, and this 15 year sentence brings closures to an important drug trafficking case that helps to restore the safety of the community."
Detectives in the Narcotics Unit orchestrated two controlled purchases from Robertson using a confidential source. A search warrant was later executed on November 29, 2016, at Robertson’s residence and hotel rooms, which yielded 187 grams of heroin, 31 grams of ICE, 28 grams of cocaine, 25 grams of methamphetamine, 19.6 grams of crack, 14 ounces of codeine, 82 hydrocodone pills and 74 oxycodone pills. Three loaded firearms were also found on the scene.
On July 31, 2018, U.S. District Judge Thomas L. Parker sentenced Robertson to 190 months imprisonment followed by four years of supervised release.
This case was investigated by the Bartlett Police Narcotics Unit; Drug Enforcement Agency (DEA) and Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Raney Irwin prosecuted this case on the government’s behalf.
Non-Indian Man Sentenced to Five Years for Sexually Abusing Navajo WomanRead the Press Release
ALBUQUERQUE – Mark Silva, 48, of Sundance, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 60 months of imprisonment followed by five years of supervised release for his conviction on a sexual abuse charge. Silva will also be required to register as a sex offender.
The FBI arrested Silva on April 4, 2017, on an indictment that charged him with sexually abusing an Indian woman on May 1, 2016, on the Navajo Indian Reservation in McKinley County, N.M.
On Oct. 12, 2017, Silva pled guilty to the indictment and admitted that on May 1, 2016, he sexually abused a Navajo woman. Silva admitted engaging in the sexual act while knowing that the victim was incapable of declining to participate in, or communicating the unwillingness to engage in, the sexual act.
This case was investigated by the Gallup office of the FBI and was prosecuted by Assistant U.S. Attorney Joseph M. Spindle pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
New Jersey man sentenced for alien smugglingRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that Jose Moreira de Sousa, 51, a naturalized U.S. citizen who lives in Newark, N.J., was sentenced today in United States District Court in Burlington to one-year of probation following his guilty plea to a charge that he transported two illegal aliens within the United States. U.S. District Judge Christina Reiss also fined Moreira de Sousa $1000 and ordered him to pay special assessments totaling an additional $5100.
According to court records, on the morning of October 17, 2017, a concerned citizen notified agents at the Beecher Falls Border Patrol station that a suspicious person driving an Audi with New Jersey license plates was at a cabin literally feet from the U.S. – Canadian border. Agents learned that the car was driven by Moreira de Sousa and that he had entered the United States from Canada earlier that day.
Agents surveilled Moreira de Sousa, who appeared to be alone, in the vicinity of the cabin and followed him to a local restaurant, where he bought coffee and muffins for three persons. He then returned to the cabin. Shortly thereafter, Moreira de Sousa and two other men emerged from the cabin and got into the defendant’s Audi. Agents followed the car as it drove away. When the vehicle pulled to the side of the road, agents approached, determined that Moreira de Sousa was a U.S. citizen and that the two occupants were Portuguese nationals who had walked across the border, with Moreira de Sousa’s assistance, a few hours before. Neither alien had permission to enter the United States.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Moreira De Sousa was represented by Douglas Kallen. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mora Development Sentenced to Pay A Fine of $3 Million for Violation of the Clean Water ActRead the Press Release
SAN JUAN, PR – Today United States District Judge Carmen Consuelo Cerezo sentenced MORA Development to pay a fine of $3 million, serve a five-year term of probation and make restitution to a family whose children were affected by the criminal conduct. Judge Cerezo ordered that Mr. Cleofe Rubi-Gonzalez personally guarantee payment of all financial obligations imposed on the company.
Mora Development Corporation previously pled guilty to a one-count Information charging a violation of the Clean Water Act, 33 U.S.C. Section 1311 and 1319 (c) (2) for discharging the sanitary wastewater generated from residences at Las Cascadas II Development in Toa Alta, Puerto Rico from a holding tank through a point source (a by-pass pipe) into the Toa Alta Municipal storm water system and then into Quilan Creek which flows into La Plata River, a water of the United States without a National Pollution Elimination System (NPDS) permit. La Plata River serves approximately 80,000 people in Puerto Rico.
“The U.S. Attorney’s Office will continue to enforce federal laws which protect the environment and the public,” said Rosa E. Rodríguez-Vélez, US Attorney for the District of Puerto Rico. “Today’s sentence should serve as a deterrent to those who consider discharging waste water into our creeks. Our office will continue to work with all law enforcement agencies in order to help prevent release of hazardous material into our creeks, protect workers and the local community.”
“Mora Development Corporation knowingly cut corners to save money by discharging raw sewage into the La Plata River without proper treatment in violation of the Clean Water Act,” said Tyler Amon, Special Agent-in-Charge of Criminal Investigation Division for EPA’s Region 2 Office in New York. “The scheme to hide an illegal sewage system is a short-sighted business decision that put the community’s health and environment at risk. EPA will continue to work directly with our Commonwealth partners to investigate and seek prosecution of environmental crime offenders.”
The government presented evidence that over the course of the time prior to properly connecting with PRASA, MORA discharged more than 29,000,000 gallons of sewage into the municipal stormwater system and into Quilan Creek.
The former Project Manager, Jose Merino had also pled guilty previously and was sentenced to 6 months’ probation.
The case was prosecuted by the Howard P. Stewart Senior Litigation Counsel of the Environmental Crimes Section of the Department of Justice, and Assistant United States Attorney Carmen Marquez of the United States Attorney’s Office. The case was investigated by the U.S. Environmental Protection Agency Region 2 Criminal Investigation Division.
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Minneapolis Opioid Dealer Sentenced to 80 Months in PrisonRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of JOHN HENRY EDMONDS, 35, to 80 months in prison for distribution of heroin, carfentanil, methamphetamine, and furanyl fentanyl. EDMONDS, who pleaded guilty on March 20, 2018, was sentenced today before Senior U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
United States Attorney Erica MacDonald said, “This is the first case in the District of Minnesota involving carfentanil and one of the first involving furanyl fentanyl. Sadly, highly potent and extremely lethal opioid analogues such as these are becoming more common on the illegal drug market and the devastating societal impact of these substances, even in very small quantities, cannot be overstated. I commend the work of the DEA for taking a firm stance against those who threaten our communities with deadly drugs.”
“The trafficking of fentanyl analogues represents a significant threat to public safety,” said Assistant Special Agent in Charge Kenneth Solek. “Investigations like this are vitally important to our neighborhoods and communities, and DEA is proud of the close ties we have with our state and local counterparts, who work tirelessly along with DEA to strive for a drug free community.”
According to his guilty plea and documents filed in court, on multiple dates between July 6 and August 22, 2017, EDMONDS distributed a total of 5.9 grams of mixtures and substances containing heroin, carfentanil, methamphetamine, and furanyl fentanyl to an individual, who unbeknownst to EDMONDS, was cooperating with law enforcement. EDMONDS was taken into federal custody on September 25, 2017.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Minneapolis Police Department, and the Bloomington Police Department.
This case was prosecuted by Assistant U.S. Attorney Surya Saxena.
Defendant Information:
JOHN HENRY EDMONDS, 35
Minneapolis, Minn.
Convicted:
- Distribution of heroin, carfentanil, methamphetamine, and furanyl fentanyl, 5 counts
Sentenced:
- 80 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michael J.W. Potter Sentenced to Life in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn.- On August 1, 2018, Michael J.W. Potter, 36, of Kingsport, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve the remainder of his life in federal prison. There is no parole in the federal system.
Potter was sentenced pursuant to a federal statute which provides for a mandatory sentence of life in prison for individuals convicted of a drug trafficking offense after having previously been convicted of two or more felony drug trafficking offenses in state or federal court.
Evidence presented trial revealed that an investigation into a large scale methamphetamine distribution ring in northeast Tennessee and southwest Virginia led to the execution of search warrants by agents with the Second Judicial Drug Task Force, working with the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Tennessee Bureau of Investigation (TBI). Nearly five kilograms of crystal methamphetamine were seized as a result of these searches. During the investigation, agents identified numerous members of the organization, which was supplied primarily by Nathan Hogan of Villa Rica, Georgia, who was also indicted in this case.
Potter and his co-conspirators were responsible for transporting hundreds of pounds of crystal methamphetamine, a highly addictive controlled substance, from northern Georgia into Sullivan County, Tennessee, and the surrounding area for distribution. Only Potter proceeded to trial. The other 24 individuals indicted in the conspiracy entered guilty pleas, with the exception of Shawn Dumitras, who died prior to arrest.
Law enforcement agencies participating in this joint investigation were the Second Judicial District Drug Task Force, Sullivan County Sheriff’s Office, Kingsport, Police Department, TBI, ATF and DEA. Assistant U.S. Attorney J. Gregory Bowman represented the United States in court proceedings.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Mexican National Sentenced for Smuggling 53 Aliens in Tractor TrailerRead the Press Release
CORPUS CHRISTI, Texas – A Mexican National who was on a visitor visa has been ordered to federal prison for attempting to smuggle illegal aliens behind a load of produce, announced U.S. Attorney Ryan K. Patrick. Luis Valero-Carrizales, 39, pleaded guilty April 4, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos handed Valero-Carrizales a 30-month sentence. Not a U.S. citizen, Valero-Carrizales is expected to face deportation proceedings following his release from prison.
At the time of his plea, Valero-Carrizales admitted he conspired to transport illegal aliens hidden behind a load of produce in the trailer portion of the 18-wheeler he was driving. On Dec. 16, 2017, Valero-Carrizales drove a freightliner and approached the primary inspection lane at the U.S. Border Patrol Checkpoint near Falfurrias. During a routine immigration inspection, a service canine alerted to the trailer.
During a subsequent search of the vehicle, authorities discovered 53 illegal aliens hidden inside. The temperature inside the refrigerated trailer was 54 degrees.
He was taken into custody at that time where he remains pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
Member of the Genovese Family of La Cosa Nostra Charged in 1997 Murder-For-Hire of Richard OrtizRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the City of Yonkers Police Department (“YPD”), announced the arrest of JOHN TORTORA JR., a/k/a “Johnny T,” on charges of racketeering conspiracy, murder in aid of racketeering, and murder for hire. The murder charges arise out of TORTORA’s role in the November 11, 1997, murder of Richard Ortiz, 29, in Yonkers. TORTORA was arrested this morning in Yonkers by FBI agents and Yonkers PD detectives. TORTORA will be presented later today before the U.S. Magistrate Judge Gabriel W. Gorenstein at the United States Courthouse in Manhattan. The case has been assigned to United States District Judge Sidney H. Stein. An initial pretrial conference is scheduled for August 14, 2018, at 3:00 p.m., before Judge Stein.
Manhattan U.S. Attorney Geoffrey Berman said: “As alleged in the indictment, the defendant was responsible for the stabbing death of Richard Ortiz over 20 years ago. Today, thanks to the remarkable dedication and perseverance of the FBI and the Yonkers Police Department, the defendant faces charges for his crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “The arrest of John Tortora should remind everyone that justice delayed is not justice denied. Whether a crime was allegedly committed decades ago or just days ago, the FBI will maintain the same tenacity and we will be relentless toward ensuring those who commit violent crimes be held accountable for their actions. The FBI New York Office never does these investigations alone, and we want to thank the Yonkers Police Department for their help in successfully solving a case from more than 20 years ago.”
Yonkers Police Commissioner Charles Gardner said: “This arrest for the 1997 murder of Mr. Ortiz demonstrates the resolve and commitment of law enforcement to hold those accountable for their actions and serves as a warning to all members of La Cosa Nostra engaging in violent criminal activity in our communities. We will continue to work with our federal partners to aggressively target alleged criminals and criminal enterprises operating in our City.
I would like to thank the U.S. Attorney’s Office for the Southern District of New York and the FBI for their invaluable support and efforts in this investigation.”
According to the allegations contained in the Indictment[1] and statements made in court:
From in or about 1997 up to and including in or about 2018, TORTORA, an associate and later a member of the Genovese Crime Family, along with other members and associates of La Cosa Nostra, committed a wide range of crimes, including murder, extortion, gambling, and narcotics trafficking. In particular, TORTORA hired others to kill Richard Ortiz in order to further the goals of the Genovese Family. As a result, on November 11, 1997, Ortiz was brutally stabbed multiple times, causing his death.
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TORTORA, 61, of Yonkers, New York, is charged with conspiracy to commit racketeering, murder in aid of racketeering, and murder for hire. A chart showing the charges and maximum penalties for each count of the Indictment is below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
COUNT
CHARGE
MAXIMUM PENALTY
1
Conspiracy to commit racketeering
Life in prison
2
Murder in aid of racketeering
Mandatory life in prison or the death penalty
3
Murder for hire
Mandatory life in prison or the death penalty
Mr. Berman praised the outstanding investigative work of the FBI, the Yonkers Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
Assistant U.S. Attorneys Jessica Lonergan, Jessica Fender, and Lauren Schorr are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
McKinley County Man Sentenced to Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Johtonnie Yazzie, 30, of Rocksprings, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 45 months in prison followed by ten years of supervised release for possessing child pornography. Yazzie also will be required to register as a sex offender after he completes his prison sentence.
The FBI and McKinley County Sheriff’s Office arrested Yazzie on Dec. 20, 2016, on an indictment, which was filed on Dec. 7, 2016, charging him with possessing visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Yazzie committed the crime between Jan. 2016 and May 2016, in McKinley County, N.M.
On Jan. 8, 2018, Yazzie pled guilty to the indictment. In his plea agreement, Yazzie admitted that from Jan. 2016 through May 2016, he downloaded videos and images of child pornography from the internet and saved them onto his cellular phone. Yazzie acknowledged that his cellphone contained 366 images and 61 videos of child pornography.
This case was investigated by the Gallup office of the FBI and the McKinley County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Marietta Man Sentenced to 24 Months for Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lane Edward Miller, age 26, of Marietta, Oklahoma, was sentenced to 24 months imprisonment and 1 year supervised release for Aggravated Identity Theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. The charge arose from an investigation by the Marietta Police Department, the Love County Sheriff’s Office, the United States Postal Inspection Service, and the United States Secret Service.
The Indictment alleged that on or about May 6, 2017, in the Eastern District of Oklahoma, the Defendants knowingly transferred, possessed and used, without lawful authority, a means of identification of another person, S.D., during and in relation to a felony violation described in 18 U.S.C. § 1028A(c), Conspiracy to Commit Wire Fraud pursuant to 18 U.S.C. §§ 1343 and 1349, knowing that the means of identification belonged to another actual person.
United States Attorney Brian J. Kuester said, “Identity thieves wreak havoc on the lives of their victims. Fortunately, due to diligent victims and local and federal law enforcement agencies, this identity thief was caught and is being brought to justice for his crimes. This investigation and prosecution is a great example of how watchful citizens bringing information to their local law enforcement agency can lead to a team effort between local and federal investigators and prosecutors, and ultimately lead to a successful prosecution.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Man Sentenced to Prison for Selling Drugs and Possessing a FirearmRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced yesterday to eight years in prison for possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
“Prosecuting armed drug traffickers is a top priority,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Together with our law enforcement partners we are targeting areas where firearms and the drug trade are fueling violence and endangering the safety of those communities. We are committed to our mission of public safety and will continue to aggressively pursue those who choose to endanger the safety of the communities we serve.”
According to court documents, on April 29, 2016, John Paul Alarcon, 31, was stopped by the Virginia Beach Police and law enforcement subsequently discovered a concealed, loaded firearm in his car. The police also discovered 3.4 grams of Methamphetamine and approximately $3,500 in cash. During the execution of a search warrant at Alarcon’s home in Virginia Beach, police discovered 9.6 grams of Methamphetamine, Psilocyn, Amphetamine tablets, Fentanyl tablets, a tablet containing a Heroin and Fentanyl mixture, Oxymorphone, and approximately $2,000 in cash.
“Methamphetamine destroys people and communities,” said Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Norfolk. “HSI, along with our partners at the Virginia Beach Police Department and the U.S. Postal Inspection Service, are committed to keeping this dangerous drug out of Hampton Roads.”
Over a year later and while on bond from the Virginia Beach General District Court, law enforcement encountered Alarcon at the Military Circle Mall, and seized a bag containing a loaded firearm, 2.9 grams of Methamphetamine, 7.9 grams of Cocaine, Alarcon’s wallet and $1,195 in cash.
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, Michael K. Lamonea, Assistant Special Agent in Charge of HSI Norfolk, Eric Shen, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-9.
Lee County Man Receives Ten Year Sentence in Child Pornography CaseRead the Press Release
GREENSBORO, N.C. – A Sanford man who pleaded guilty to possession of child pornography was sentenced to ten years’ imprisonment today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
SCOTT SAMUEL YOUNG, 28, of Sanford, North Carolina, pleaded guilty on March 8, 2018, to one count of possession of child pornography. He was sentenced to 120 months of imprisonment followed by 20 years of supervised release by United States District Judge N. Carlton Tilley, Jr.
YOUNG had previously been convicted of a state child pornography offense in Lee County Superior Court on January 20, 2016, under the alias Justin Presendorf. In August 2016, the N.C. State Bureau of Investigation (SBI) received a report from the National Center for Missing and Exploited Children that a certain Dropbox cloud storage account was being used to store and access child pornography. The SBI identified YOUNG as the user of that Dropbox account, based on the IP addresses and email address used, and the fact that no one had logged into the Dropbox account during the time YOUNG had been incarcerated for his state conviction. That cloud storage account contained 2,020 images and 135 videos of child pornography.
On September 9, 2016, investigators seized a phone found in YOUNG’S possession and arrested him after determining that the phone contained child pornography. Investigators found 369 images and 174 videos of child pornography on the phone.
This case was investigated by the Lee County Sheriff’s Office and North Carolina State Bureau of Investigation. Both agencies are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
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Lackawanna Man Charged with Stealing Student Incentive Gift CardsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joel Hunsicker, age 37, of Scranton, Pennsylvania was charged on July 31, 2018, in a criminal information with stealing student incentive gift cards.
According to United States Attorney David Freed, Hunsicker was in charge of counseling youths at the PA CareerLink in Lackawanna County. During the course of five years as a student counselor, Hunsicker stole more than $6,500 worth of federally funded gift cards intended for student rewards, Hunsicker used those cards for his own personal benefit.
The case was investigated by the U.S. Department of Labor, Office of the Inspector General. Assistant United States Evan Gotlob is prosecuting the case.
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 is 10 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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Kenton County Man Sentenced to 52 Months for Illegally Possessing FirearmsRead the Press Release
COVINGTON, Ky. – Kevin Sellers, 26, of Covington, was sentenced today to 52 months in federal prison, by United States District Judge David L. Bunning, for unlawful possession of firearms.
Sellers previously pleaded guilty to possessing three firearms after having been convicted of a misdemeanor crime of domestic violence. According to the guilty plea agreement, the Covington Police Department stopped the vehicle Sellers was driving, on June 20, 2017, after receiving a complaint that he had threatened an individual with a gun. When officers stopped the vehicle, Sellers and three other individuals were present. In the car, officers discovered three semi-automatic pistols, including one that was capable of accepting a large capacity magazine and another that was later determined to have been stolen from a local police department.
Another Defendant, Jack Deakins, who was in the vehicle at the time, was convicted of the same offense and sentenced to 30 months in prison, on June 28, 2018.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigations; and Robert Nader, Chief of the Covington Police Department, jointly made the announcement. The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant United States Attorney Laura Voorhees.
Justice Department Reaches Agreement with the Philadelphia Police Department to Ensure Effective Communication for Deaf and Hard of Hearing IndividualsRead the Press Release
NOTE: The settlement agreement can be found here.
The Justice Department today reached a settlement agreement with the Philadelphia Police Department (PPD) to resolve allegations that it violated Title II of the Americans with Disabilities Act (ADA) by denying deaf and hard of hearing individuals full and equal opportunities to participate in and benefit from PPD’s programs, services, and activities. Specifically, the Department alleged that PPD did not take appropriate steps to ensure that communications with deaf and hard of hearing individuals were as effective as communications with others, and did not provide auxiliary aids and services that were necessary to ensure the provision of effective communication.
The Department initiated an investigation in response to a complaint that PPD had not provided effective communication to a deaf detainee. In the course of its investigation, the Department interviewed a number of deaf individuals—ranging from detainees to crime victims—who contended that PPD denied them effective communication. The Department also interviewed PPD representatives and reviewed PPD’s policies and practices relating to the provision of auxiliary aids and services to individuals who are deaf or hard of hearing. Based on the investigation, the Department determined that PPD had not met its obligations to provide effective communication as required by the ADA.
“Deaf and hard of hearing individuals are entitled to full and equal opportunities to communicate with police officers and to benefit from police services,” said Acting Assistant Attorney General John Gore. “We commend the Philadelphia Police Department, which is taking steps to ensure that Philadelphia’s deaf and hard of hearing community members are provided effective communication and auxiliary services.”
The ADA mandates that public entities, such as PPD, take appropriate steps to ensure that communications with people with disabilities are as effective as communications with others. In meeting the effective communication obligation, public entities are not required to take any action that would result in a fundamental alteration in the nature of their service, program or activity or in undue financial and administrative burdens.
PPD represents that since the Department’s investigation, it has been steadfast in its efforts to improve its provision of effective communication. PPD has developed comprehensive ADA policies and practices, including policies that help law enforcement personnel understand how to secure appropriate auxiliary aids and services for deaf and hard of hearing individuals. PPD has also developed a comprehensive training program to educate its personnel on the ADA’s effective communication obligation. PPD further asserts that it is ensuring reliable access to American Sign Language interpreters.
Under the three-year agreement, PPD will adopt ADA policies and procedures on effective communication and appropriate auxiliary aids or services, train personnel on the ADA, provide accessible telephone equipment, and pay eight aggrieved individuals a total of $97,500.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Jury Convicts Illegal Alien of Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
A Fort Lauderdale federal jury convicted Mohammed Al-Ghool, 50, of Broward County, yesterday of possessing a firearm and ammunition while being an alien illegally and unlawfully in the United States.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
According to the court docket, including evidence introduced at trial, Al-Ghool was working at the register in a convenience store crowded with customers on the night of April 13, 2018, in Fort Lauderdale, Florida. Al-Ghool got into a verbal altercation with a co-worker that entered the store. The verbal fight escalated when Al-Ghool threw merchandise at the co-worker and then produced a firearm. Al-Ghool shot a round of ammunition from the firearm at the co-worker. The projectile hit the ceiling tile, directly above his co-worker’s head. Al-Ghool possessed the firearm and ammunition while being a citizen of a foreign country without valid U.S. identification or immigration documents.
Al-Ghool is scheduled to be sentenced on October 10, 2018, before U.S. District Court Judge William P. Dimitrouleas.
Mr. Greenberg commended the investigatory efforts of the CBP, ICE-HSI, ATF and BSO in this matter. This case is being prosecuted by Assistant United States Attorney Don Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jury Convicts Brooklyn Man of Firearm and Drug CrimesRead the Press Release
ALBANY, NEW YORK – A jury today voted to convict Emmanuel Philippe, age 23, of Brooklyn, New York, and Leominster, Massachusetts, of possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm and ammunition as a felon, and possessing and intending to distribute crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Saratoga Springs Police Chief Greg Veitch.
Evidence presented during the 4-day trial established that on March 17, 2017, at about 3 a.m., Philippe was the subject of a routine traffic stop, for speeding, on West Avenue near the YMCA in Saratoga Springs, New York. Philippe gave Officers a fake name and fake Massachusetts driver’s license, and said he was on his way to a hotel in Schenectady, New York.
A Saratoga Springs Police Officer smelled marijuana, and Philippe admitted to having marijuana in his car. Officers ordered Philippe and his passenger out of the car so they could search it. During the search, Philippe and his passenger stood on the side of the road in the presence of Officers.
Philippe became visibly nervous as an Officer searched the trunk, and attempted on several occasions to approach the trunk, falsely claiming that his jacket was inside. Officers asked him to back away from the trunk.
While searching the trunk, an Officer found a plastic bag containing a loaded rifle magazine and rounds of .223 caliber ammunition. As the Officer called her Sergeant over to see what she had found, Philippe took off running, through a snow-covered field, in the direction of the YMCA. Officers quickly and safely arrested Philippe in the YMCA parking lot, and found him in possession of 35 tie-off baggies containing crack cocaine.
In the trunk, Officers located a Windham Weaponry semi-automatic rifle, loaded with a 30-round magazine and with its safety turned off; another loaded, 30-round magazine; a total of 165 rounds of Federal .223 caliber ammunition; and 22 rounds of Federal 9 millimeter ammunition. In Philippe’s possession and in the car, Officers also located $1,610 in cash, 2 digital scales, and drug packaging materials.
Philippe, who has a prior felony conviction for attempted grand larceny, faces at least 5 years and up to 25 years in prison when he is sentenced on December 6, 2018 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Philippe, a lawful permanent resident of the United States and citizen of Haiti, may face immigration consequences as a result of his convictions.
This case was investigated by the ATF and Saratoga Springs Police Department, with the assistance of the Saratoga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Jamaican Man Pleads Guilty to Involvement in International Cocaine Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A Jamaican man pleaded guilty today to his role in a cocaine conspiracy involving the distribution and possession of 15 kilograms of cocaine on behalf of a Panamanian drug trafficking organization (DTO).
According to court documents, Oraine Lawson, 26, a citizen of Jamaica, served as a cocaine transporter for the DTO moving illegal narcotics within the United States. In February 2016, Lawson and a co-conspirator traveled from Brooklyn, New York to Charleston, South Carolina, to receive 15 kilograms of cocaine for domestic distribution on behalf of the DTO. On the same day, law enforcement intercepted 15 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the DTO. The next day, Lawson and his co-conspirator obtained a bag containing 15 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement. Upon taking possession of the cocaine, Lawson boarded a commercial bus and law enforcement later executed a drug interdiction operation on the commercial bus on which Lawson was traveling. During the stop of the bus, law enforcement surveillance observed Lawson’s co-conspirator hide the bag containing the 15 kilograms of cocaine under a seat inside the bus. Shortly thereafter, law enforcement officers seized the bag containing the 15 kilograms of cocaine.
Lawson pleaded guilty to conspiracy to possession with intent to distribute five kilograms or more of cocaine. He faces a mandatory minimum penalty of 10 years and a maximum penalty of life imprisonment when sentenced on November 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Brotehrs Grim. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorneys Erik S. Siebert and Peter S. Duffey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-108.
Jackson, Alabama Resident, Former Burglar, Sentenced to Two Years for Possessing a FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that United States District Court Senior Judge William H. Steele sentenced Avery Varkese Nash on August 2, 2018 to a term of 24 months in federal prison.
Nash, who had previously been convicted of Burglary in 2014, was a passenger in a vehicle on October 24, 2017, in Thomasville, Alabama, when Thomasville police stopped the vehicle for not having the required license plate. Neither the driver nor Nash could produce identification. The driver of the vehicle allowed police to search the trunk. It was then that Nash informed the officers that he had a pistol and a loaded magazine in the trunk. Police recovered the firearm and determined it was reported stolen.
Nash pled guilty on April 12, 2018 to the offense of felon in possession of a firearm.
The Thomasville Police Department and the Federal Bureau of Investigation, Mobile Field office investigated this case. Assistant United States Attorney Christopher Baugh prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.
Insider Bank Robbery Leads to 46 Months in PrisonRead the Press Release
OKLAHOMA CITY – CAMRY CORTEZ WILSON, 21, of Edmond, Oklahoma, was sentenced today to 46 months in prison for bank robbery, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On November 15, 2017, the government filed a criminal complaint against Wilson for robbing the JPMorgan bank branch at 13805 North May Avenue in Oklahoma City. According to an FBI agent’s affidavit in support of the complaint, a masked person forced himself into the bank at approximately 7:35 a.m. on August 31, 2017, as employees were unlocking the front door. It appeared to employees that he was familiar with layout of the bank, including the location of the vault. Without ever speaking, the person presented a note that indicated it was a robbery and that he had a gun. He left the bank with $203,000 in cash and a key to an employee’s car, which he used as a getaway vehicle.
Through surveillance video, Uber records, and other information, the FBI determined Wilson was likely the robber. The bank had fired him for misconduct on April 6, 2017, because his teller drawers were short $13,400. Although he had been in financial difficulties before the robbery, in the weeks after the robbery he made large purchases in cash. On September 7, 2017, he paid $27,074 in cash for a 2017 Dodge Challenger. And on October 9, 2017, he traded in the Challenger in Atlanta for a 2017 Mercedes-Benz C300, which involved paying a balance of $24,932.92 in cash.
A federal grand jury returned an indictment against Wilson for bank robbery on December 5, 2017. He agreed to combine his guilty plea hearing with his sentencing, which took place today before U.S. District Judge Robin J. Cauthron. After accepting his guilty plea, the court sentenced Wilson to 46 months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of $168,154.82, the amount remaining after law enforcement recovered $34,845.18 during his arrest. The sentence also includes forfeiture of the 2017 Mercedes-Benz and the contents of three bank accounts.
This case is the result of an investigation by the FBI and the Oklahoma City Police Department. Assistant U.S. Attorneys Mark Stoneman and Ashley Altshuler prosecuted the case.
Reference is made to public documents for further information.
Indictment: Defendant Left Fingerprint While Robbing a Quik TripRead the Press Release
WICHITA, KAN. – A Wichita man was indicted Wednesday on charges of robbing a Quik Trip, U.S. Attorney Stephen McAllister said.
Samuel L. Vliet, 25, Wichita, Kan., is charged with one count of committing a robbery at a commercial establishment. In court documents, investigators allege that on July 18, 2018, Vliet was wearing a red bandana over his mouth when he entered a Quik Trip at 110 S. Rock Road in Wichita. He told a store employee, “Give me all the money in the register.”
Later, police lifted fingerprints from a door that the store employee said the robber touched as he left. A forensic examination using the Automated Fingerprint Identification System (AFIS) matched the fingerprint to Vliet.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI’s Safe Streets Task Force investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
OTHER INDICTMENTS
Gregory Ojeda, 30, Kansas City, Kan., is charged with escaping custody. The crime is alleged to have occurred May 13, 2018, while Ojeda was serving home confinement at a residence in Kansas City, Kan., after being convicted of unlawful possession of a firearm by a convicted felon.
If convicted, she faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Venancio Santiago-Marcelino, 43, who is not a U.S. citizen and who has been living in Mission, Kan., is charged with unlawfully re-entering the United States after twice being deported. He was found July 12, 2018, in Johnson County Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Charges 16 Individuals with Trafficking Heroin, Fentanyl and Other Drugs in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Hartford Police Chief David Rosado announced that a federal grand jury in Hartford returned a 28-count indictment today charging the following 16 individuals with various offenses related to the distribution of heroin, fentanyl and other narcotics in the Hartford area.
JULIO OLIVERAS, a.k.a. “Cuzzo Jay,” 32, of Hartford and New Britain
VICTOR PERDOMO, a.k.a. “Domi,” 32, of Hartford
JEREMY RODRIGUEZ, 21, of Hartford
ROBERT CAMPBELL, a.k.a. “Ant” and “Anthony,” 26, of Hartford
PEDRO RIVERA, a.k.a. “Heavy,” 40, of Hartford
JONATHAN QUINONES, 28, of Hartford
ALEXIS DeJESUS, 31, of Hartford
LUIS RODRIGUEZ, 32, of Hartford
ANGEL GONZALEZ, a.k.a. “Spider” and “June,” 40, of Hartford
ANGEL ROMAN, 31, of Hartford
JOSE COTTO, a.k.a. “White Boy,” 27, of Hartford
ANTONIO JOHNSON, a.k.a. “Unk,” 41, of Hartford
MIGUEL ORTIZ, 39, of Hartford
BIANCA VELASQUEZ, 21, of Hartford
JENNIFER JONES, 39, of Hartford
MICHAEL SPERO, 34, of HartfordAs alleged in court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force targeted a narcotics trafficking organization headed by Julio Oliveras, also known as “Cuzzo Jay,” of Hartford. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Oliveras was supplying distribution quantities of heroin, fentanyl, cocaine and crack cocaine to multiple Hartford-area drug dealers, and also was selling drugs in smaller amounts to his own customers. The investigation also revealed that Victor Perdomo, also known as “Domi,” was Oliveras’s primary source of supply of heroin and fentanyl. Oliveras used multiple locations in Hartford to process, store and distribute narcotics. In addition, Oliveras stored multiple firearms within a U-Haul storage unit in Hartford.
On July 19 and July 26, 2018, investigators arrested 15 of the 16 defendants on federal criminal complaints. (Robert Campbell, also known as “Ant” and “Anthony,” has been in custody in Florida since February 2018.) On July 19, investigators executed 10 search warrants and seized approximately five to six kilograms of suspected heroin and/or fentanyl, approximately 600 grams of crack cocaine, eight firearms, and other evidence of narcotics trafficking activity.
“It is alleged that this drug trafficking organization was responsible for the distribution of a significant amount of heroin and fentanyl, as well as other narcotics, in the Hartford region,” said U.S. Attorney Durham. “As the epidemic of opioid abuse continues to ruin lives across our state, our office is committed to prosecuting heroin and fentanyl traffickers and seeking lengthy terms of incarceration. I thank the DEA Task Force members, including the Hartford Police, for their work in this investigation, which removed more than five kilos of heroin and fentanyl, as well as eight firearms, from the streets of Hartford just last month. Their ongoing efforts in this case and others have undoubtedly save lives.”
“DEA is committed to investigating and dismantling drug trafficking organizations that are responsible for distributing lethal drugs like fentanyl and heroin to the citizens of Hartford,” said DEA Special Agent in Charge Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl and heroin off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office.”
The indictment charges the 16 defendants with one count of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine and cocaine base (“crack cocaine”). If convicted of conspiracy, based on the type and quantity of narcotics charged, Oliveras, Perdomo and Quinones face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Jeremy Rodriguez, Rivera, DeJesus, Luis Rodriguez, Johnson, Ortiz, Jones and Spero face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Campbell, Gonzalez, Roman, Cotto and Velasquez face a maximum term of imprisonment of 20 years.
In addition to the conspiracy count, Oliveras, Jeremy Rodriguez, Rivera, Quinones, DeJesus, Gonzalez, Roman, Cotto, Ortiz, Velasquez, Jones and Spero are each charged with one or more counts of possession and/or distribution of various controlled substances.
The indictment also charges Jeremy Rodriguez, Quinones and DeJesus with possession of a firearm in furtherance of a drug trafficking crime. If convicted of this offense, these defendants face a mandatory consecutive five-year term of imprisonment. Oliveras and DeJesus are also charged with possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Heroin Traffickers Handed Significant Federal Prison TermsRead the Press Release
HOUSTON – Two Texas men have been ordered to federal prison following their convictions of possession with intent to distribute heroin, announced U.S. Attorney Ryan K. Patrick. Jose Jony Romero, 41, of Houston, and Ricardo Rodriguez, 31, of Laredo, pleaded guilty April 26 and 24, 2018, respectively.
Today, U.S. District Judge Keith Ellison ordered Romero to serve 188 months in federal prison based on his responsibility for 35 kilograms of seized heroin in addition to six kilograms of methamphetamine since 2015. Rodriguez received a 120-month-term of imprisonment for his participation in transporting the heroin to Houston.
The investigation began in October 2015. The investigation revealed Romero was planning to deliver methamphetamine to several individuals in Houston. After leaving Romero’s residence, authorities stopped their vehicle. Inside, law enforcement discovered a cardboard box with Tupperware containers containing approximately six kilograms of methamphetamine. Romero’s fingerprints were also found on the containers.
In March 2017, law enforcement stopped Rodriguez on interstate 10 in Fayette County. In the toolbox in the truck’s bed was were five wooden blocks which contained black tar heroin. Further investigation led authorities to discover the phone number Rodriguez called to finalize the delivery belonged to Romero. He was arrested as the heroin was delivered to him.
Agents opened the five wooden blocks and found 16 packages of narcotics, which totaled 32 kilograms of heroin and nearly one kilograms of methamphetamine. Inside Romero’s apartment, authorities also discovered an additional three kilograms of heroin and packaging material.
Romero has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Previously released on bond, Rodriguez was permitted to remain on bond.
The Drug Enforcement Administration, Houston Police Department and Fayette County Sheriff’s Office conducted the investigation with assistance from the Harris County District Attorney’s Office. Assistant U.S. Attorney Robert Stabe is prosecuting the case.
Henderson County Man Sentenced for Unlawfully Possessing RicinRead the Press Release
TYLER, Texas – A 20-year-old Athens, Texas, man has been sentenced to federal prison for the unlawful possession of ricin in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and Assistant Attorney General for National Security John C. Demers today.
Abel Keith Fulton pleaded guilty on Mar. 20, 2018 and was sentenced to 46 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Fulton was also ordered to pay restitution in the amount of $30,060.00 for costs incurred by law enforcement officials in connection with the removal of the hazardous materials and decontamination of his residence.
According to information presented in court, from August to September 2016, Fulton possessed ricin at his home in Athens, Texas. Ricin is a biological toxin that can be fatal if ingested, inhaled, or injected. There is no known antidote or cure for ricin poisoning. Fulton made the ricin using supplies that he purchased online.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Athens Police Department and prosecuted by Assistant U.S. Attorney Frank Coan and Trial Attorney Jerome Teresinski of the Department of Justice National Security Division.
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Haywood Co. Woman Sentenced to 15 Years on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Brandy Marie Grogan, 36, of Waynesville, N.C. to 15 years in prison and five years of supervised release on drug and gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Greg Christopher of the Haywood County Sheriff’s Office, Chief William Hollingsed of the Waynesville Police Department, and Chief Russell Gilliland of the Maggie Valley Police Department.
According to filed court documents and today’s sentencing hearing, in early 2017, law enforcement learned that Grogan was selling and distributing methamphetamine in and around Haywood County. On January 17, 2017, Haywood County law enforcement conducted a traffic stop of the vehicle Grogan was driving. Inside her vehicle, law enforcement located a black bag which contained a large amount of methamphetamine. Elsewhere in the vehicle, law enforcement found other narcotics, including cocaine and marijuana, and $4,376 in cash. Officers also recovered from Grogan a .22 magnum caliber handgun. Law enforcement executed a search warrant at Grogan’s residence and seized scales, drug paraphernalia, six handguns and two shotguns. A stolen handgun was later recovered from inside the glove box of Grogan’s vehicle. Grogan was charged with state criminal offenses in connection with this incident.
According to court records, on July 20, 2017, law enforcement stopped Grogan for driving above the speed limit in Haywood County. Law enforcement searched Grogan’s vehicle and located a black bag in the passenger side floorboard that contained methamphetamine and other narcotics, and a loaded Sig Sauer .40 caliber pistol. Deputies also located $2,097 in Grogan’s left front pants pocket.
In February 2018, Grogan pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The ATF, the Haywood County Sheriff’s Office, Waynesville Police Department, and the Maggie Valley Police Department investigated the case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hartford Man Pleads Guilty to Distributing Drugs Involved in 2 Enfield Overdose DeathsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER BARRETO, 29, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribution, and distribution of, controlled substances.
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, at approximately 9:52 a.m., on August 26, 2016, the Enfield Police Department and emergency medical personnel responded to a residence in Enfield and found an unresponsive 31-year-old male in the upstairs bedroom of the residence. The victim was pronounced deceased. Officers searched the immediate area and seized one empty white wax fold and six full white wax folds that contained suspected heroin. Officers also seized the victim’s iPhone. An analysis of text messages revealed that the victim had ordered heroin from an individual in the evening of August 25, 2016.
At approximately 8:23 p.m., on October 27, 2016, the Enfield Police Department and emergency personnel responded to another residence in Enfield and found an unresponsive 36-year-old man outside the house. The victim was transported to the hospital for medical attention and pronounced deceased. Officers subsequently recovered the victim’s cell phone and 20 white wax folds that contained suspected heroin. Analysis of the victim’s cell phone revealed that the victim had purchased heroin from the same individual two days before his death.
Analysis of text messages revealed that both victims purchased heroin from an individual who had purchased the heroin from BARRETO. The text messages also revealed that BARRETO was consistently dealing narcotics from April 2016 until he was arrested on August 10, 2017.
At the time of his arrest, investigators seized approximately 2,000 wax folds of heroin from BARRETO’s residence.
Judge Shea scheduled sentencing for October 31, 2018, at which time BARRETO faces a maximum term of imprisonment of 20 years. BARRETO is released on bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Harrison County man sentenced for his role in a heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Zachary Allen Queen, of Clarksburg, West Virginia, was sentenced today to 15 months incarceration for his role in a heroin distribution operation, United States Attorney Bill Powell announced.
Queen, age 26, pled guilty to one count of “Aiding and Abetting the Distribution of the Controlled Substance Analogue Cyclopropylfentanyl” in March 2018. Queen admitted to selling cyclopropylfentanyl in August 2017 in Harrison County.
Queen is facing 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. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gulfport Convicted Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Dannell Elanta Thompson, 37, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to 48 months in federal prison followed by five years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. He was also ordered to pay a $5,000 fine.
Thompson pled guilty before Judge Ozerden on April 30, 2018. The case arose when the Gulfport Police Department executed a search warrant on Thompson’s residence after Thompson sold methamphetamine to an informant. During the search, the police discovered marijuana, methamphetamine, a loaded Ruger LCP .380 pistol, and a Savage Arms Mark II .22 caliber rifle. Both of the firearms had been reported stolen to the Gulfport Police Department.
As a convicted felon, Thompson was prohibited from possessing firearms and ammunition under federal law. He was previously convicted of possession of a controlled substance, a state felony, in Harrison County Circuit Court.
The case was investigated by the Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Special Assistant United States Attorney Emily Nobile.
Green Bay Man Receives 15 Year Sentence for Methamphetamine Distribution and Firearm ChargeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on August 1, 2018, Jimmy L. Desotell (age: 26) of Green Bay, Wisconsin, appeared in federal court in Green Bay and was sentenced to 180 months in federal prison for his role in a methamphetamine distribution ring in Northeast Wisconsin and for possessing a firearm in furtherance of that distribution.
In the Spring of 2017, Desotell was involved in a conspiracy that resulted in pounds of methamphetamine acquired from a source in Phoenix, Arizona, being distributed in Brown County and elsewhere in Northeast Wisconsin. The evidence showed that Desotell possessed a firearm while distributing the methamphetamine, resulting in an additional charge.
In pronouncing sentence, Chief U.S. District Court Judge William C. Griesbach noted the serious nature of Desotell’s crimes and the negative effect that methamphetamine has had on the community. The judge told Desotell that it was past time for him to “grow up,” noting his extensive prior criminal record. He informed Desotell that his crimes called for a strong sentence. Following his release from prison, Desotell will serve 8 years on federal supervised release.
Desotell was the last of eight individuals involved in the conspiracy to be sentenced by Judge Griesbach in federal court.
The case was investigated by the U.S. Drug Enforcement Administration and the Brown County Drug Task Force. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Grand Island Man Arrested for Leaving Threatening Voicemails for Two U.S. CongressmenRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Carlos Bayon, 63, of Grand Island, NY, was arrested and charged by criminal complaint with interstate communication of a threat. The charge carries a maximum penalty of five years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the complaint, on June 30, 2018, the Louisiana office of a United States Congressman (Congressman One) received a threatening voicemail. A congressional staff member reached out to the United States Capitol Police to report the threat. The voicemail stated:
“Hey listen, this message is for you and the people that sent you there. You are taking ours, we are taking yours. Anytime, anywhere. We know where they are. We are not going to feed them sandwiches, we are going to feed them lead. Make no mistake you will pay. Ojo por ojo, diente por diente (This is Spanish for “an eye for an eye, a tooth for a tooth”). That is our law and we are the majority. Have a good day.”
The call was traced to the defendant Carlos Bayon.
Also on June 30, 2018, the Washington State office of another United States Congressman (Congressman Two) received a threatening voicemail with the same message. That call as well was traced to the defendant.
“Though the government cannot force people to respect one another, the government can force people to respect the rule of law by prosecuting those who break it,” stated U.S. Attorney Kennedy. “If someone disagrees with a law, then the Constitution specifies the means to be pursued to have that law changed. Threats to lawmakers are not an acceptable means to accomplish that objective. Our country and our democracy are founded upon the principle of self-governance. Self-governance, however, is not the same as the unrestrained pursuit of self-interest—that is simply selfishness. These days it seems that too many people are willing to ignore their obligation to obey the laws as they are written. While disrespect for the rule of law can cost individuals, such as this defendant, their liberty, the cost to society can be even greater as it robs us of both the mores and means to be able to govern ourselves.”
“The Bureau and our federal partners continue to play key roles in combating violent crime and threats of violence in big cities and local communities,” said Gary Loeffert, Special Agent-in-Charge of the FBI's Buffalo Office. “We treat every threat like it's real until we can prove otherwise. Freedom of speech does not include using words to intimidate others -- Constitutional protections do not extend to threatening phone calls.”
The complaint is the result of an investigation by the United States Capitol Police, under the direction of Chief Matthew R. Verderosa, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Gang Member Pleads Guilty to Drug DistributionRead the Press Release
BOSTON – A Heath Street gang member who was previously convicted of a felony pleaded guilty today in federal court in Boston to drug trafficking and illegal possession of a firearm.
Kendrick Tate, a/k/a “K-Roc,” 25, of Chelsea, pleaded guilty to one count of distribution of cocaine base and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 25, 2018. Tate has been serving a state sentence for unrelated drug and gun convictions.
On subsequent days in April 2017, Tate sold a cooperating witness crack cocaine and a firearm with a partially obliterated serial number. Although Tate has been identified by law enforcement as a member of the Heath Street Gang, he was living in Chelsea at the time of these sales.
According to court documents, Tate was convicted in state court in November 2017 of unrelated drug and firearm charges and is presently serving a 3 ½ - 4-year sentence. Tate was also previously convicted of assault with a dangerous weapon on two occasions, assault and battery with a dangerous weapon, resisting arrest, assault and battery on a police officer, and possession to distribute a Class B substance on two occasions.
Following a two-year investigation, Tate and eight co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development. The investigation and arrests sought to reduce violence and improve the quality of life for residents in and around the Mildred C. Hailey Apartments by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Founder and Managing Partner of Accounting Firm Pleads Guilty to Making False Filings with the U.S. Department of LaborRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General (“DOL-OIG”), and Thomas Licetti, Acting New York Regional Director of the U.S. Department of Labor-Employee Benefits Security Administration (“DOL-EBSA”), announced that SALVATORE ARMAO, the founder and managing partner of an accounting firm (the “Firm”), pled guilty today to making false filings with DOL in order to conceal an embezzlement scheme in which more than $100,000 was embezzled from a labor union (the “Union”) and its employee welfare benefit plan (the “Plan”). ARMAO pled guilty before United States District Judge Vernon S. Broderick.
U.S. Attorney Geoffrey S. Berman said: “As a professional accountant and certified fraud examiner, Salvatore Armao was supposed to serve as a check on labor fraud, not a facilitator of it. As he admitted today, Armao knowingly submitted false filings with the Department of Labor and the Internal Revenue Service in order to facilitate and conceal a long-running embezzlement scheme involving a labor union.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “Salvatore Armao, a CPA and Certified Fraud Examiner for Armao LLP, should have been the first line of defense in protecting the members of a union, and the fund serving members and their families. Instead, he abused his position by filing false documents to conceal a multi-year embezzlement scheme. We will continue to work with the Employee Benefit Security Administration, the Office of Labor-Management Standards, and our law enforcement partners to safeguard the assets of union members.”
DOL-EBSA Acting New York Regional Director Thomas Licetti said: “Accurate reporting is an essential part of maintaining employee benefit plan integrity. EBSA’s efforts in this case exemplify our commitment to protecting employee benefits and working in coordination with fellow federal agencies.”
According to the allegations in the Complaint and the Information to which ARMAO pled guilty, as well as statements made in court:
From at least in or about 2010 through in or about 2014, the president of the Union, who also served as a trustee of the Plan (the “President-Trustee”), repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical expenses, dues for an actors’ union, personal credit card charges, and ATM cash withdrawals. The President-Trustee used his Union credit card to pay for personal expenses and then “reimbursed” the Union with funds transferred from the Plan. In total, the President-Trustee embezzled more than $100,000 from the Union over approximately three years.
During the period of the embezzlement, the Firm served as the accountant and auditor for the Union and the Plan. To facilitate and conceal the President-Trustee’s embezzlement, ARMAO falsely classified as “loans” the personal expenses for which the President-Trustee paid using Union and Plan funds in accounting records and in DOL filings for the Union. In at least 2012, 2013, and 2014, ARMAO falsely classified the President-Trustee’s personal expenses as loans in DOL filings for the Union. ARMAO also provided false information on DOL filings for the Plan, concealing from DOL the President-Trustee’s prohibited transfers of tens of thousands of dollars from the Plan to the Union which, in turn, facilitated and concealed the President-Trustee’s use of Union funds to pay his personal expenses. ARMAO repeatedly caused these false filings to be made to DOL despite being a Certified Fraud Examiner.
Under the terms of his plea agreement, ARMAO has agreed to a 13-year ban, pursuant to 29 U.S.C. §§ 504 and 1111, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan.
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SALVATORE ARMAO, 64, of Howard Beach, New York, pled guilty to a one-count Information charging him with making false statements in employee benefit plan records and reports required by the Employee Retirement Income Security Act of 1974 (“ERISA”). This offense carries a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ARMAO’s sentencing is scheduled for November 8, 2018, at 2:30 p.m., before Judge Broderick.
Mr. Berman praised the DOL’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding work on this investigation. Mr. Berman also thanked the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Fort Worth Man Sentenced to Life in Prison for His Role in Sex Trafficking of ChildrenRead the Press Release
FORT WORTH, Texas —Demarcus Davis, aka “Zigg,” 26, of Fort Worth, Texas, was sentenced Monday by U.S. District Judge Reed C. O’Connor to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a four-day trial in April 2018, Davis, and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Pierre Lagrone, “P” or “Pedro,” 34, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Lagrone and Sanders were previously sentenced by Judge O’Connor to life in federal prison and 420 months, respectively.
Earlier in the case, co-defendant Bruce Davis, aka, “Wheatie,” pled guilty to obstruction of enforcement. Davis threatened to harm Jane Doe 2, members of her family and her 1-year old child. Davis believed Jane Doe 2 was cooperating with law enforcement in the prosecutions of Demarcus and Kentrell Davis. Davis was sentenced in May 2018 by Judge O’Connor to 64 months in federal prison.
According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.
This case was investigated by the Homeland Security Investigations (HSI), U.S. Immigrations and Customs Enforcement’s (ICE), and the Fort Worth, Tyler and Arlington Police Departments. Assistant U.S. Attorneys P.J. Meitl and Nicole Dana were in charge of the prosecution.
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Former Navy Sailor Heads to Prison for Distributing Animal Crush VideoRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old former Navy sailor has been ordered to federal prison for distributing a video depicting the drowning of puppies, announced U.S. Ryan K. Patrick. Former Petty Officer Third Class Daniel James O’Sullivan pleaded guilty March 28, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos handed O’Sullivan a 21-month sentence. O’Sullivan will also be required to serve a term of three years of supervised release following completion of the prison term.
In June 2016, Naval Criminal Investigative Service (NCIS) agents were notified that O’Sullivan would be in possession of disturbing videos depicting the torture and killing of animals. Authorities interviewed him at Naval Air Station Corpus Christi where he was stationed at the time. O’Sullivan admitted he distributed a video to an individual in Montana that depicted the drowning of puppies in a river. That individual admitted to receiving the video.
Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of the video depicting the drowning of puppies and other animal crush videos. In one video, a dog’s mouth is closed with duct tape as it is set on fire. In another, a dog is thrown off a high-rise building. Other videos depict mice and baby chicks being ground-up in a blender.
Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
This is the second such case prosecuted in this district. The first resulted in a 57-month federal prison sentence and was believed to be the first indicted nationwide since the statute was amended in 2010.
In September 2017, O’Sullivan received an other than honorable discharge from the Navy.
O’Sullivan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
NCIS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Former Hillsborough Resident Indicted in Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – On July 26, 2018, a federal grand jury in San Francisco indicted former Bay Area resident Michael James Frew charging him with wire fraud, mail fraud, and money laundering announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Acting Special Agent in Charge Internal Revenue Service (IRS-CI) Tara Sullivan. The indictment was unsealed today following Frew’s arrest in Beatty, Nevada, on the charges.
According to the indictment, beginning no later than 2010, Frew, 70, formerly of Hillsborough, Calif., solicited investments from numerous individuals on the premise that their money would be invested into real estate in the United States and abroad. After receiving misrepresentations in connection with Frew’s solicitations, several victim investors provided funds to Frew for the purpose of allowing him to invest funds on their behalf. In fact, Frew used these “investments” primarily to support his personal lifestyle, to speculate on the stock market using an account in his name, and/or to repay other victims a portion of their investments.
The indictment alleges that Frew convinced his victims he would make investments into real estate in the United States and foreign countries in areas under recent distress from natural disasters. The indictment describes how Frew allegedly persuaded one couple to transfer to him $380,000 in cash for the purpose of making investments in foreign real estate and a short term investment that would yield a 10% return. Nevertheless, instead of investing the money as he promised, Frew used the money to make expenditures for personal expenses, to speculate on the stock market, and to repay other victim “investors.” The indictment describes similar transactions between Frew and four other victims during the period 2010 through 2014.
In sum, the indictment charges Frew with two counts each of wire fraud, in violation of 18 U.S.C. § 1343; mail fraud, in violation of 18 U.S.C. § 1341; and money laundering, in violation of 18 U.S.C. § 1957.
After his arrest, Frew made his initial appearance in United States District Court in Las Vegas, Nevada, and was released on certain conditions, including that he give up his passport. A local initial appearance in San Francisco is scheduled for August 21, 2018, before U.S. Magistrate Judge Jacqueline Scott Corley.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each count of wire fraud and mail fraud, and 10 years’ imprisonment on each count of money laundering. In addition, Frew faces fines of $250,000 on each count in the indictment and restitution for the losses he is alleged to have caused. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robert David Rees is prosecuting the case with assistance from Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the IRS-CI.
Former Department of Juvenile Justice Lieutenant Sentenced on Civil Rights ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that United States District Judge Mary Geiger Lewis sentenced Nicole Jenice Samples, age 36, of Columbia, to one year incarceration as a result of her conviction for deprivation of civil rights, in violation of Title 18, United States Code, Sections 242.
Evidence presented in court established that that on January 1, 2017, Nicole Jenice Samples directed the use of excessive force as punishment for two juveniles housed at the South Carolina Department of Juvenile Justice (DJJ). In response to juveniles making noise, Samples, a Lieutenant at DJJ, ordered two of her subordinate correctional officers to apply mechanical restraints to the two juveniles, directing that the leg restraints be connected to the hand restraints, a practice known as “hogtying.” Samples oversaw the application of the restraints on both juveniles. At Samples’ direction, the juveniles were left in the hogtied position for over two hours as punishment and suffered pain. DJJ policy forbids the use of restraints as punishment and specifically forbids the practice of “hogtying.” A DJJ surveillance camera captured one of the two juveniles being hogtied and left alone for hours. Following the hogtying event, Samples directed her subordinates to falsify reports related to the use of force incident.
United States Attorney Sherri A. Lydon had this to say, “Being entrusted with a position of power comes with both honor and responsibility. That responsibility must not be abused. Our office is committed to addressing any willful wrongdoing taking place in our state’s prisons and detention centers. This conviction sends a message to those who choose to abuse their authority.”
This case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division (SLED) at the request of, and with the assistance of, DJJ Director Freddie Pough. Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office handled the case.
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Former Colorado Mortgage Originator, A Subsidiary of Lehman Brothers, Agrees to Pay $41 Million Related to Its Conduct in Originating and Selling Mortgage LoansRead the Press Release
DENVER – Bob Troyer, the United States Attorney for the District of Colorado, announced today a $41 million settlement with Aurora Loan Services, LLC, a subsidiary of Lehman Brothers Holdings, Inc. (“LBHI”), in connection with Aurora Loan Services’ conduct in originating and selling residential mortgage loans from 2004 through 2008. Under the resolution announced today, Aurora Loan Services will pay $41 million as a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act.
Aurora Loan Services was a mortgage company headquartered in Littleton, Colorado. It worked with correspondent lenders, which made mortgage loans to homebuyers. Aurora Loan Services arranged for the sale of these loans to its parent company, Lehman Brothers Bank. Lehman Brothers Bank sold these loans to its parent, LBHI, a major investment bank. LBHI used the loans to create residential mortgage-backed securities and sold those securities to investors.
The United States alleged the following conduct by Aurora Loan Services. Between 2004 and 2008, Aurora Loan Services represented to potential investors that the loans generally complied with its underwriting standards. It represented that before the loans were purchased from correspondent lenders, the loans had been scrutinized as part of Aurora Loan Services’ quality control review. Investors were also told that the loans went through Aurora Loan Services’ “pre-funding fraud detection” review, a review that identified potential “red flags” in loan files.
In practice, however, Aurora Loan Services knew that these representations were not true for many loans. Aurora Loan Services gave five large correspondent lenders “Platinum” status. Aurora Loan Services gave these Platinum lenders better pricing. Aurora Loan Services also allowed the Platinum lenders to underwrite their own loans, and even to make exceptions by issuing loans that failed to meet the underwriting standards. In 2005, to save time and money, Aurora Loan Services removed the pre-funding fraud detection for all of its five Platinum lenders. Aurora Loan Services also decided to exempt the Platinum lenders from the quality control standards that Aurora Loan Services otherwise imposed on other lenders before their loans were sold. Aurora Loan Services did not tell investors that these five Platinum lenders were exempt from those quality control requirements. The shortcuts and preferential treatment that Aurora Loan Services gave to the five Platinum lenders contributed, among other factors, to the deteriorating quality of some loans purchased from those lenders. Starting in late 2006, the loans purchased from the five Platinum lenders began defaulting at higher rates. Investors who bought LBHI’s residential mortgage-backed securities containing those loans suffered losses.
The settlement agreement is neither an admission of liability by Aurora Loan Services nor a concession by the United States that its claims are not well founded.
Aurora Loan Services has minimal assets and no employees, and will be winding down. As part of the settlement, Aurora Loan Services’ parent company, Aurora Commercial Corporation, has represented that it has not resumed, and will not resume, the origination, underwriting, purchase or sale of mortgage loans. Aurora Loan Services has ceased all mortgage activities.
“Aurora Loan Services’ mortgage misconduct hurt people,” said United States Attorney for the District of Colorado Bob Troyer. “When the mortgages went into foreclosure, families lost their homes and investors lost their savings. Aurora Loan Services is paying for this misconduct and will never be able to do it again.”
Assistant U.S. Attorneys Lila Bateman and Kevin Traskos of the District of Colorado investigated Aurora Loan Services’ conduct, with the support of the Federal Housing Finance Agency’s Office of the Inspector General.
“Aurora Loan Services knowingly put investors at risk, and the losses caused by its irresponsible behavior deeply affected not only financial institutions such as the Federal Home Loan Banks, but also taxpayers, and contributed significantly to the financial crisis,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Midwest Region. “This settlement illustrates the tireless efforts put forth toward bringing a resolution to this chapter of the financial crisis. FHFA-OIG will continue to work with our law enforcement partners to hold those who have engaged in misconduct accountable for their actions.”
The $41 million civil monetary penalty resolves claims under the Financial Institutions Reform, Recovery and Enforcement Act, which authorizes the federal government to impose civil penalties against financial institutions that violate various predicate offenses, including wire and mail fraud. The settlement covers not only Aurora Loan Services but two other entities related to Aurora Loan Services, Aurora Commercial Corporation, and Lehman Brothers Bancorp, Inc., the holding company of Aurora Commercial Corporation. The settlement does not provide any release from liability to Lehman Brothers Holding Inc., which is in bankruptcy. The settlement also does not release any individuals from potential criminal or civil liability.
To report fraud, go to: http://www.stopfraud.gov.
Final Defendant Sentenced for Stockton-Based Credit Card Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Thongchone Vongdeng, 38, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to time served, which was three years in custody, for his participation in a scheme that involved hundreds of fraudulent transactions on Target REDcard accounts and at least 1,000 victims across the United States, U.S. Attorney McGregor W. Scott announced.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and identity theft crimes committed against the public.”
According to the court documents, between March 2014 and September 2015, Vongdeng and eight co-conspirators stole personal information from victims and created unauthorized accounts in order to purchase merchandise. Part of the scheme involved using Target REDcard account numbers to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, northern California, and elsewhere.
In all, more than 300 counterfeit accounts were used or trafficked by members of the conspiracy, and over 1,000 victims have been identified as having had their identities compromised as a result of the conspiracy. All defendants are residents of Stockton. All of defendants pleaded guilty, and their sentences are as follows:
Boone B. Khoonsrivong, 41, was sentenced to five years and five months in prison.
Daisy Sysengrat, 32, was sentenced to two and half years in prison.
Vuthiya Tim, 33; was sentenced to three years and two months in prison.
Meghan Paradis, 34; was sentenced to two and half years in prison.
Sequoia Valverde, 35; was sentenced to three years and one month in prison.
Amber Collins, 33; was sentenced to two and half years in prison.
Somaly Siv, 32; and was sentenced to two and half years in prison
Jaffrey Brown, 34, was sentenced to three years and two months in prison.
This case was the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.
Eight People Plead Guilty to Federal Charges Following Investigation into Drug Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Eight people, all from Washington, D.C., have pled guilty to federal charges following an investigation into the trafficking of PCP, crack cocaine and heroin in Southwest Washington.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced today by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The guilty pleas followed an investigation by ATF and the MPD targeting the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District. According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
Those pleading guilty include:
-Antonio Spencer, 24. He pled guilty today to one count of conspiring to distribute and possess with intent to distribute PCP, heroin, and crack cocaine. He faces a mandatory minimum sentence of five years and a statutory maximum of 40 years in prison.
-Maurice Spencer, 19. He pled guilty on July 19, 2018 to conspiracy to distribute PCP and faces a statutory maximum of 20 years in prison. He is the younger brother of Antonio Spencer.
-Kione Banks, 20. He pled guilty on May 23, 2018, to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
-Raymond Boston 27. He pled guilty on May 16, 2018, to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
-Jerome Fuller, 33. He pled guilty on May 22, 2018, to one count of distribution of PCP and faces a statutory maximum of 20 years in prison.
-Damion Littman, 32. He pled guilty on May 21, 2018, to one count of distribution of PCP and also faces a statutory maximum of 20 years in prison.
-Davon Warren, 22. He pled guilty on July 19, 2018 to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
-Morriko Washington, 24. He pled guilty on May 22, 2018, to one count of possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory sentence of five years and a statutory maximum of life in prison.
This case is being investigated by ATF and MPD. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg and William Schurmann, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.Early Autism Project, Inc., South Carolina's Largest Provider of Behavioral Therapy for Children with Autism, Pays the United States $8.8 Million to Settle Allegations of FraudRead the Press Release
COLUMBIA, SC – The United States Attorney’s Office for the District of South Carolina announced today that Early Autism Project, Inc. (“EAP”) has paid the United States $8,833,615 to resolve a False Claims Act investigation that it submitted false claims to the TRICARE and the South Carolina Medicaid programs for therapy services for children with autism. EAP is South Carolina’s largest provider of intensive behavioral treatment to children with autism, known as Applied Behavioral Analysis (“ABA”) therapy. TRICARE is the federal health insurance program for active and retired military members and their families, while South Carolina Medicaid provides health benefits to qualifying low-income residents of South Carolina.
The settlement announced today resolves allegations that EAP billed TRICARE and South Carolina’s Medicaid program for ABA therapy services for children with autism that either misrepresented the services provided or where the services were not provided at all. As it relates to Medicaid’s PDD Waiver, EAP devised a program that required its therapists to reserve an allotment of billable time each week or month so that EAP could bill Medicaid for positions called Regional Lead and Regional Coordinator. The United States contends that these Regional Leads and Regional Coordinators were not actively working with the child from whom the hours were deducted, but rather, the EAP-devised program was designed to maximize profits by billing Medicaid for administrative and management functions of the company. Medicaid does not pay for therapy services by individuals who are not actively working with the child for whom the therapy is billed. The United States also contends that EAP allowed its therapists to regularly “pad” the hours it billed for therapy services to the TRICARE program and to South Carolina Medicaid, such that these programs regularly paid for therapy services that were not provided.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time of that child’s development, should be held accountable if they do not provide the services, but nevertheless request payment for those services,” said Barbara Bowens, Acting United States Attorney for this case and Civil Chief for the United States Attorney’s Office for the District of South Carolina. “The United States Attorney’s Office is committed to protecting the federally-funded programs that make it possible for children with special needs to receive these vital services.”
The civil investigation arose from a lawsuit filed by a former employee of EAP, Olivia Zeigler, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Ms. Zeigler will receive $435,000.
As part of the settlement announced today, EAP, and its parent company, ChanceLight, Inc. have also entered into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which seeks to ensure future corporate compliance by requiring internal compliance reforms, including hiring an independent review organization to conduct annual claims reviews.
“That the State’s largest service provider for autistic children would defraud government health programs is compounded only by their billing at the expense of taxpayers for misrepresented or nonexistent services—as alleged here,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect vulnerable patients and preserve government health programs.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (“DCIS”) and our law enforcement partners to ensuring that medical service providers are held accountable when they submit false bills and divert taxpayer funds. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affects critical programs such as TRICARE,” said Special Agent in Charge Robert Craig, DCIS Mid-Atlantic Field Office.
This case was handled by Assistant United States Attorney Beth Warren, HHS-OIG, DCIS, and the Medicaid Fraud Control Unit of the South Carolina Attorney General’s Office.
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Zeigler v. South Carolina Early Autism Project, Inc., No. 3:15-cv-2750-MBS (D.S.C., filed July 11, 2015).
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Dominican Republic Man Who Was Apprehended After Departing the St. John Car Barge Pleads Guilty to Conspiracy to Possess 55 Kilograms of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Reynaldo Lerburds, 41, of the Dominican Republic, pleaded guilty today in District Court before Judge Curtis V. Gomez, to conspiracy to possess cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for December 6, 2018.
According, to the plea agreement, Lerburds was stopped by the Drug Enforcement Administration (DEA) based upon information that Lerburds was coming from St. John on the car barge in a vehicle that contained a distribution quantity of cocaine. Lerburds was apprehended after departing the car barge, and DEA agents confiscated 50 brick-like objects of a white powdery substance. The white powdery substance tested positive for cocaine and weighed approximately 55 kilograms.
Lerburds faces a sentence of not less than 10 years or more than life and a fine of $10,000,000.00.
The case was investigated by the Drug Enforcement Administration (DEA) and the Virgin Islands Police Department (VIPD) and prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Dominican Republic Man Who Shipped Narcotics through the U.S. Mails Pleads Guilty to Possession of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Braulio Martinez, 33, of the Dominican Republic, pleaded guilty today in District Court before Judge Curtis V. Gomez to possession of cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for December 6, 2018.
According to the plea agreement, on or about July 25th, 2017, Martinez distributed two kilograms of cocaine from the U.S. Virgin Islands to the U.S. mainland by mailing the two kilograms inside electronic equipment.
Martinez faces a minimum sentence of five years and a fine of $250,000.00.
The case was investigated by the Drug Enforcement Administration (DEA) and the United States Postal Inspection Services (USPIS) and prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Eddy Espinal-Diaz, 33, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison, to be served concurrent with any future sentence that may be imposed on a pending state drug case, and three years of supervised release. Espinal-Diaz will be subject to deportation proceedings. In May 2018, Espinal-Diaz pleaded guilty to one count of unlawful reentry of a deported alien.
Law enforcement in Middleton encountered Espinal-Diaz on Nov. 9, 2017, and determined him to be illegally present in the United States. Espinal-Diaz was previously deported on Aug. 18, 2015.
United States Attorney Andrew E. Lelling and Rebecca Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Jesus Leonardo Castillo-Martinez, 45, was indicted on one count of illegal reentry of a deported alien.
According to court documents, law enforcement officers in Billerica encountered Castillo-Martinez on June 23, 2018, and determined him to be illegally present in the United States. Castillo-Martinez was previously deported on Nov. 1, 2016.
Castillo-Martinez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Rebecca Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit Area Hospital System to Pay $84.5 Million to Settle False Claims Act Allegations Arising from Improper Payments to Referring PhysiciansRead the Press Release
WASHINGTON – William Beaumont Hospital, a regional hospital system based in the Detroit, Michigan area, will pay $84.5 million to resolve allegations under the False Claims Act of improper relationships with eight referring physicians, resulting in the submission of false claims to the Medicare, Medicaid and TRICARE programs, the Justice Department announced today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent and office staff. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
“Offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Patients deserve the unfettered, independent judgment of their health care professionals.”
“We are very pleased with the outcome of this case. This result should impress on the medical community the fact that we will aggressively take action to recover monies wrongfully billed to Medicare, through the remedies provided in the federal False Claims Act,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “I would like to commend the new leadership at Beaumont Hospital for making things right once its past wrongdoing was brought to its attention by federal investigators.”
The settlement resolves allegations that between 2004 and 2012, Beaumont provided compensation substantially in excess of fair market value and free or below-fair market value office space and employees to certain physicians to secure their referrals of patients in violation of the Anti-Kickback Statute and the Stark Law, and then submitted claims for services provided to these illegally referred patients, in violation of the False Claims Act. The settlement also resolves claims that Beaumont allegedly misrepresented that a CT radiology center qualified as an outpatient department of Beaumont in claims to federal health care programs. As a result of this settlement, Beaumont will pay $82.74 million to the United States and $1.76 million to the State of Michigan.
“Health care providers that offer or accept financial incentives in exchange for patient referrals undermine both the financial integrity of federal health care programs and the public’s trust in medical institutions,” said HHS-OIG Special Agent in Charge Lamont Pugh. “Our agency will continue to protect both patients and taxpayers by holding those who engage in fraudulent kickback schemes accountable.”
The allegations resolved by the settlement were brought in four lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The four qui tam cases are captioned: United States ex rel. David Felten, M.D., Ph.D. v. William Beaumont Hospitals, et al., No. 2:10-cv-13440 (E.D. Mich.), United States ex rel. Karen Carbone v. William Beaumont Hospital, No. 11-cv-12117 (E.D. Mich.), United States ex rel. Cathryn Pawlusiak v. Beaumont Health System, et al., No. 2:11-cv-12515 (E.D. Mich.), and United States ex rel. Karen Houghton v. William Beaumont Hospital, No. 2:11- cv-14312 (E.D. Mich.). The whistleblower shares to be awarded in the cases have not yet been determined.
These matters were investigated by the U.S. Attorney’s Office for the Eastern District of Michigan, the Civil Division’s Commercial Litigation Branch, and the State of Michigan Attorney General’s Office. Investigative assistance was provided by the Office of Inspector General of the Department of Health and Human Services and the Centers for Medicare and Medicaid Services, and the Department of Defense’s Defense Criminal Investigative Service.
In addition to resolving its False Claims Act liability, Beaumont has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, an arrangements review to be conducted by an Independent Review Organization.
The government’s investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Department of Justice Opens Review of Paramount Consent DecreesRead the Press Release
As part of The Department of Justice’s review of nearly 1,300 legacy antitrust judgments, the Antitrust Division today announced that it has opened a review of the Paramount Consent Decrees, which for over seventy years have regulated how certain movie studios distribute films to movie theatres. The purpose of the review is to determine whether or not the decrees should be terminated or modified.
The Antitrust Division announced in April its initiative to terminate legacy antitrust judgments, stating that it would review all such judgments to identify those that no longer serve to protect competition. The initiative was undertaken because many of the final judgments that the Division entered into from the earliest days of the Sherman Act until the late 1970s do not include sunset provisions or express termination dates. Consequently, those judgments are perpetual, regardless of whether there have been subsequent industry or technological changes that might make those judgments either ineffective in protecting competition or even anticompetitive themselves.
In particular, the Paramount Decrees have regulated how certain movie studios distribute films to movie theatres since the Supreme Court’s decision in United States v. Paramount, 334 U.S. 131 (1948). For example, the decrees ban various motion picture distribution practices, including block booking (bundling multiple films into one theatre license), circuit dealing (entering into one license that covered all theatres in a theatre circuit), resale price maintenance (setting minimum prices on movie tickets), and granting overbroad clearances (exclusive film licenses for specific geographic areas). Given that these decrees do not have any sunset provisions or termination dates, the Division will thoroughly review them to determine whether they still serve the American public and are still effective in protecting competition in the motion picture industry.
“The Paramount Decrees have been on the books with no sunset provisions since 1949. Much has changed in the motion picture industry since that time,” said Makan Delrahim, Assistant Attorney General for the Justice Department’s Antitrust Division. “It is high time that these and other legacy judgments are examined to determine whether they still serve to protect competition. Today, we take an important step forward in the process of reviewing the Paramount Decrees.”
Since the district court entered the Paramount Decrees, the motion picture industry has undergone considerable change. None of the Paramount defendants own a significant number of movie theatres. Additionally, unlike seventy years ago, most metropolitan areas today have more than one movie theatre. The first-run movie palaces of the 1930s and 40s that had one screen and showed one movie at a time, today have been replaced by multiplex theatres that have multiple screens showing movies from many different distributors at the same time. Finally, consumers today are no longer limited to watching motion pictures in theatres. New technology has created many different distribution and viewing platforms that did not exist when the decrees were entered into. After an initial theatre run, today’s consumers can view motion pictures on cable and broadcast television, DVDs, and over the Internet through streaming services.
As a consequence of all of these changes, and the fact that the decrees have been in place for over seventy years, the Department has opened a review to determine whether the decrees should be modified or terminated.
The Antitrust Division has posted an invitation for public comment on its public website (https://www.justice.gov/atr/paramount-decree-review), inviting interested persons, including motion picture producers, distributors, and exhibitors, to provide the Division with information or comments relevant to whether the Paramount Consent Decrees still are necessary to protect competition in the motion picture industry. The period for public comment ends October 4, 2018.*
* The original version of this release stated the public comment period is 30 days, which has been extended to 60 days.
Department of Justice Announces Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce expansion of the Tribal Access Program (TAP), a program providing federally recognized Tribes the ability to access and exchange data with the national crime information databases for both civil and criminal purposes.
The department will accept applications from Aug. 1 to Oct. 1, 2018. Interested Tribes may apply by using this link: www.justice.gov/tribal/tribal-access-program-fy-2019-application. Tribes that are selected for participation will be notified by Oct. 15, 2018, and deployment activities will begin shortly thereafter; deployment to all selected Tribes will be completed by Sept. 30, 2019.
“President Trump and Attorney General Sessions are committed to reducing violent crime in Indian Country,” said Deputy Attorney General Rod Rosenstein. “Today’s announcement is another example of this commitment and the administration’s efforts to ensure Tribal police have access to the innovative tools and resources they need to ensure public safety and promote the rule of law.”
“The Tribal Access Program has been instrumental in ensuring tribal protection orders are entered into federal criminal databases. This alerts law enforcement departments throughout the nation to their existence, and prevents covered individuals from illegally purchasing firearms. TAP also provides an easy platform for entering sex offender registrations into the National Sex Offender Registry. In short, it is a critical law enforcement and public safety tool for Indian country,” noted Woodrow Star, Chairman of the Law and Order Committee and Member of the Board of Trustees, Confederated Tribes of the Umatilla Indian Reservation.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS) and for 2019, the Office for Victims of Crime (OVC). Given the funding sources, eligible tribes must have a sex offender registry authorized by the Adam Walsh Child Protection and Safety Act, a law enforcement agency that is not a Bureau of Indian Affairs direct service agency, or will utilize the TAP system to assist in providing services to victims of crime.
Under TAP, Tribes have successfully begun entering information directly into the federal databases, resulting in nearly 600 sex offender registrations and over 550 sex offender check-ins, nearly 300 instances of data entry that would prohibit someone from being able to purchase a firearm, over 1000 orders of protection entered or modified and over 4,200 finger-print based record checks for civil purposes that include employment, tribal housing placement and personnel/volunteers who have regular contact with or control over Indian children.
For FY19, the Department of Justice offers TAP services through one of the following two methods:
- TAP-LIGHT: The department provides software that provides full access (both query and entry capabilities) to national crime information databases such as National Criminal Information Center (NCIC), the Interstate Identification Index (III) and the International Justice and Public Safety Network (Nlets) for both criminal and civil purposes; and
- TAP-FULL: The department provides the same basic capabilities as TAP-LIGHT listed above, and also provides an additional hardware/software solution in the form of a kiosk-workstation that provides the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) for both criminal and civil purposes.
Criminal agencies that may participate include law enforcement agencies, prosecutors, criminal courts, jails, and probation departments. Civil agencies and programs that may participate include agencies whose staff/volunteers have contact with or control over Indian children; public housing agencies; child support enforcement agencies; Head Start programs; social service agencies that investigate allegations of abuse, neglect, and exploitation of children; civil courts that issue orders of protection, restraining orders, or other keep away orders and sex offender registration programs.
TAP supports Tribes in analyzing their needs for national crime information and provides appropriate solutions, including a state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access Criminal Justice Information Services (CJIS) systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by DOJ’s Chief Information Officer, provides specialized training and assistance for participating Tribes, including computer-based training, and on-site instruction, as well as a 24x7 Help Desk.
By September 2018, TAP will be deployed to 47 tribes (both TAP-FULL and TAP-LIGHT) with over 180 Tribal criminal justice and civil agencies participating.
For more information about TAP, click here + www.justice.gov/tribal/tribal-access-program-tap.
For a list of the 47 Tribes currently participating in tap, click here. + www.justice.gov/file/1001376/download.
Defendant sentenced for two armed bank robberiesRead the Press Release
ATLANTA - Darius Taurean Caldwell has been sentenced for committing two armed bank robberies, brandishing a firearm in connection with those robberies, and possessing a firearm after having been convicted of a felony offense.
“Caldwell terrified and endangered the lives of innocent victims during these armed robberies,” said U.S. Attorney Byung J. “BJay” Pak. “We are committed to keeping our communities safe and ensuring that justice is served for the victims of his crimes.”
“If not for the quick response by the Smyrna Police Department, this violent offender more than likely would have continued robbing and threatening innocent citizens,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “His reckless disregard for their safety could have easily turned into tragedy. Fortunately he is no longer a threat.”
According to U.S. Attorney Pak, the charges and other information presented in court: On August 24, 2016, Caldwell robbed a North of Atlanta (NOA) Bank branch in Doraville, Georgia. He walked into the bank wearing a blue facemask and an inside-out t-shirt. Caldwell stuck a black and silver handgun in a teller’s face and demanded money. Minutes later, he fled on foot with several thousand dollars. He managed to evade capture following this armed robbery.
On September 7, 2016, Caldwell robbed a Bank of America branch in Smyrna, Georgia. Again wearing a blue facemask and an inside-out t-shirt, he walked into the bank, reached past a terrified customer, stuck a black and silver handgun in a teller’s face, and demanded money. He again fled on foot with several thousand dollars. However, this time Smyrna, Georgia, Police Department officers captured Caldwell within minutes of the robbery while he hid behind a nearby residence. Investigators later linked Caldwell to the earlier NOA Bank robbery.
Darius Taurean Caldwell, 33, of Duluth, Georgia was sentenced to 32 years, one day in federal prison to be followed by five years of supervised release. He was also ordered to pay $ 14,841 in restitution. Caldwell was convicted by a federal jury on April 12, 2018, on two counts of armed bank robbery, two counts of brandishing a firearm during the commission of those robberies, and the offense of possessing a firearm after having been convicted of a felony offense.
This case was investigated by the Federal Bureau of Investigation and the Smyrna Police Department.
Assistant U.S. Attorney Bret R. Hobson and Assistant U.S. Attorney Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security Section, prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Colorado Springs Man Found Guilty of Being Felon in Possession of Firearm and Felon in Possession of AmmunitionRead the Press Release
DENVER – Daniel Lovato, age 38, of Colorado Springs, Colorado, was found guilty today of being a felon in possession of a firearm and being a felon in possession of ammunition, U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. The guilty verdicts were handed down today following a 3-day jury trial before U.S. District Court Judge Raymond P. Moore. The jury acquitted the defendant on a 3rd count. A 4th count was earlier dismissed by the government. Lovato, who appeared at the trial in custody, was remanded at the conclusion of the trial. Sentencing is scheduled for October 25, 2018.
According to facts presented at trial, as well as details included in court documents, on March 3, 2018, the Colorado Springs Police Department (CSPD) responded to a call of shots fired near North Hancock Avenue. Officers learned that a reporting party witnessed the occupants of a 2002 silver Honda shoot at a white Dodge Durango. The Honda then left the scene. A short while later CSPD officers located the Honda and attempted a traffic stop, but the Honda fled. After a brief chase, the Honda slowed to approximately 15 to 20 miles per hour, and Lovato jumped out. The Honda continued to flee. Lovato was taken into custody, and it was determined he was in possession of a loaded .22 caliber handgun and 32 rounds of .22 caliber ammunition in his front pants pocket. An ammunition can with over 200 rounds of ammunition was found within Lovato’s immediate reach. Lovato was previously convicted of a felony, namely first degree assault resulting in serious bodily injury with a deadly weapon, in Lake County, Colorado.
“Our community is safer today, thanks to the hard work of our prosecutors, the ATF and the Colorado Springs Police Department,” said U.S. Attorney Bob Troyer.
“ATF and the Colorado Springs Police Department are working together to reduce violent crime in our communities. With the successful prosecution of Lovato, we are accomplishing that goal,” said ATF Denver Field Division Special Agent in Charge Debora Livingston.
This case was investigated by the Colorado Springs Police Department and the ATF. The defendant was prosecuted by Assistant U.S. Attorneys Jason St. Julian and Beth Gibson.
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.
Colorado Man Convicted of Sex Trafficking by Force, Fraud or CoercionRead the Press Release
DES MOINES, Iowa – On August 1, 2018, following a three-day trial, a jury found Antoinne Lee Washington, 33, guilty of one count of sex trafficking of an adult by force, fraud, or coercion, and one count of transportation for prostitution. Sentencing has been scheduled for December 5, 2018, at 9:00 a.m., before United States District Court Judge Stephanie Rose.
Washington was charged with sex trafficking of an adult by force, fraud, or coercion, from May through September 2017. During trial, the government presented evidence that Washington had a relationship with the victim for several years, during which time the victim engaged in commercial sex acts for Washington’s financial benefit. Washington coerced the victim into engaging in sex acts by imposing a series of rules upon the victim, such as calling him “Daddy”. The evidence showed Washington also required the victim to turn over to him the proceeds from sex acts, and that he prohibited her from looking at African American males. Washington enforced these rules through threats of physical force and assaults on the victim, to include beating and burning the victim.
From May through September 2017, Washington transported the victim through several states so that she would engage in commercial sex acts for his benefit, ultimately arriving at a hotel in Urbandale, Iowa, on September 20, 2017. That evening, after the Defendant had physically assaulted her, the victim called the hotel desk and asked them to contact law enforcement. The Urbandale Police Department responded to the call, which initially came to them as a domestic assault complaint. After observing the victim and several items in the hotel room, including personal journals and hotel receipts, the Urbandale Police Department suspected sex trafficking, and notified the Federal Bureau of Investigation.
Sex trafficking of an adult by force, fraud, or coercion is punishable by a minimum of fifteen years’ imprisonment, and up to life imprisonment. Transportation for prostitution is punishable by up to ten years’ imprisonment.
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
The case was investigated by the Federal Bureau of Investigation and the Urbandale Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.