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1 August 2018
New Jersey Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Newell Mowry, 66, of Paterson, New Jersey, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 10 years in prison and 10 years of supervised release for possessing child pornography. He was also ordered to pay $32,500 in restitution to four victims and a $5,000 special assessment to the Domestic Trafficking Victims’ Fund. Mowry pleaded guilty on March 21, 2018.
According to court records, in October 2017, as he reentered the United States from Canada, Mowry possessed a laptop computer containing numerous child pornography files that he downloaded from the internet including files that depicted children under the age of 12.
Mowry faced a mandatory minimum sentence of 10 years because of a 1999 conviction in New York for possessing child pornography.
The investigation was conducted by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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.
New York Man Sentenced to Prison for Trafficking in Endangered Lion and Tiger PartsRead the Press Release
https://www.justice.gov/opa/pr/new-york-man-sentenced-prison-trafficking-endangered-lion-and-tiger-parts
WASHINGTON – Arongkron “Paul” Malasukum, 42, a resident of Woodside, New York, was sentenced today by U.S. District Judge Amos L. Mazzant, III, in Sherman, Texas, to nine months in prison to be followed by one year of supervised release for illegally trafficking parts from endangered African lions and tigers.
Malasukum previously pleaded guilty before U.S. Magistrate Judge Kimberly C. Priest Johnson to a one count information charging him with wildlife trafficking in violation of the Lacey Act.
In papers filed in federal court, Malasukum admitted to meeting with undercover agents who were working for the U.S. Fish and Wildlife Service, and purchasing a tiger skull from the agents. Malasukum also admitted to purchasing lion skulls from an auction house in Texas through the undercover agents, who were acting as “straw buyers” for Malasukum. Malasukum provided the undercover agents with cash and directed them on which items to bid and ultimately win. After the purchases, Malasukum shipped the tiger and lion skulls from Texas to his home in Woodside, New York. From New York, Malasukum shipped the skulls to Thailand for sale to a wholesale buyer.
As part of his plea, Malasukum admitted that between April 9, 2015 and June 29, 2016, he purchased and exported from the United States to Thailand approximately 68 packages containing skulls, claws, and parts from endangered and protected species, with a total fair market value in excess of $150,000.
The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Joseph D. Brown for the Eastern District of Texas, and Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service Edward Grace.
“Today’s sentencing is another positive result from the Justice Department’s continued partnership with the U.S. Fish and Wildlife Service in fighting the menace of illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “Those who scheme and plot to criminally profit from the exploitation of these creatures will be brought to justice, as the defendant in this case has now learned”
“The defendant in this case profited from the endangered status of African lions and tigers by illegally buying and selling their parts on the black market,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “We will continue to enforce our endangered species laws to protect our beautiful animal resources.”
“We are committed to bringing to justice those who would profit from the illegal international and interstate trafficking of wildlife,” said Acting Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service, Edward Grace. “We thank our state and federal partners for their help in investigating and prosecuting cases on behalf of imperiled species."
There are two sub-species of lions that are listed as threatened and/or endangered under the Endangered Species Act (ESA). Panthera leo melanachaita, found in eastern and southern Africa, is listed as threatened, and Panthera leo leo, found in India and western and central Africa, is listed as endangered. There are only about 1,400 members of the Panthera leo leo species remaining; 900 in 14 African populations and 523 in India. The size and distribution of these populations, population trends, and the severity of the threats to those populations are factors leading to Panthera leo leo being listed as endangered under the ESA. The sub-species Panthera leo melanachaita is believed to number between 17,000 -19,000 and is found across southern and eastern Africa. Although Panthera leo melanachaita populations are increasing overall, research has indicated there are population groups that are in decline due to ongoing threats; as a result, the sub-species Panthera leo melanachaita is listed as threatened under the ESA.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement with assistance from the New York State Department of Environmental Conservation, the U. S. Attorney’s Office for the Eastern District of Texas, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney James Noble and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
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Mount Pleasant Speech Therapist Convicted of Health Care Fraud and Aggravated Identity TheftRead the Press Release
Charleston, South Carolina---- Following a four-day trial before U.S. District Judge Richard Gergel, a federal jury convicted Gena Randolph, 44, of Mount Pleasant, of committing a $2 million health care fraud scheme, announced United States Attorney Sherri A. Lydon.
Randolph was convicted of one count of Health Care Fraud, one count of Aggravated Identity Theft, and four counts of Making False Statements Relating to Health Care Matters. Randolph could be sentenced up to 10 years in federal prison on the Health Care Fraud count and up to five years on the False Statement counts, which will be in addition to a mandatory sentence of two years for the count of Aggravated Identity Fraud.
According to evidence presented at trial, Randolph was excluded from Medicaid and Medicare after her 2012 conviction for Filing False Claims with the South Carolina Medicaid Program. As an excluded person, she was prohibited from working for any provider to perform services paid for, in whole or in part, by Medicare and Medicaid.
Over the course of the trial, the Government presented evidence showing that Randolph disguised her ownership and control over Palmetto Speech and Language Associates and Per Diem Healthcare Services, both of which were submitting claims to Medicare and Medicaid. As part of the health care fraud scheme, Randolph submitted claims both for speech therapy services that either were provided by other speech therapists and for services that were never rendered at all. In addition to hearing from the speech therapists in whose names Randolph submitted fraudulent claims, the jury was presented with evidence showing that Randolph submitted claims for services to beneficiaries who were dead.
U.S. Attorney Lydon stated, “This case is a great example of the coordinated efforts of the South Carolina Attorney General’s office and the U.S. Attorney’s office to combat health care fraud. Cases like this send the message to all health care providers that we are committed to stamping out fraud in our state.”
"It is reprehensible that one would steal from federal health care programs intended to serve our country’s most vulnerable population,” said Derrick Jackson, Special Agent in Charge for the Department of Health and Human Services Office of Inspector General. “We will continue to work with our law enforcement partners to bring these criminals to justice.”
The case was investigated by Special Investigator Chris Radcliff of the Medicaid Fraud Control Unit of the South Carolina Attorney General’s office and Special Agent Chris Lott with the United States Department of Health and Human Services – Office of Inspector General. The case was prosecuted by Nancy Cote, Senior Assistant Deputy Attorney General and Director of the Medicaid Fraud Control Unit, and Assistant United States Attorney Matt Austin of the Charleston office.
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Mission Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Aggravated Sexual Abuse, and Abusive Sexual Contact.
Iran Small Bear, a/k/a Ivan Small Bear, age 37, was indicted on June 12, 2018. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 30, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 27, 2016, and April 19, 2018, Small Bear knowingly engaged in, and attempted to engage in, a sexual act and sexual contact with a minor female.
The charges are merely accusations and Small Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Small Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Michigan Physician Pleads Guilty to Conspiracy to Distribute Controlled SubstancesRead the Press Release
A Detroit-area physician pleaded guilty today to conspiracy to distribute controlled substances for his participation in a scheme to unlawfully distribute more than 23,000 pills of Oxycodone.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Field Office made the announcement.
Alex Kafi, M.D., 70, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Judge Victoria A. Roberts of the Eastern District of Michigan. Sentencing has been scheduled for Jan. 9, 2019 before Judge Roberts.
As part of his guilty plea, Kafi admitted that from 2013 through May 2017, he engaged in a scheme where he wrote medically unnecessary prescriptions for Oxycodone in exchange for cash. Kafi wrote these fraudulent prescriptions often without ever meeting or communicating with the patient. Instead, Kafi conspired with patient marketers, who provided lists of patients to Kafi, along with $300 per prescription of Oxycodone. Kafi admitted the scheme involved approximately 693,000 mg of Oxycodone and he agreed to forfeit $617,208.00, which were proceeds of his criminal activity.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Steven Scott of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Michigan City Man Charged in the Robbery of Three BanksRead the Press Release
HAMMOND – Jason Jay Cheek, 41 years old, of Michigan City, Indiana, was charged in U.S. District Court in a Criminal Complaint with Bank Robbery, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “Bank robbers put the lives of bank employees and customers at risk. I will continue to work with state and local law enforcement to ensure that bank robbers and other violent offenders in the Northern District of Indiana are brought to justice.”
According to the documents in this case, Cheek was charged by Criminal Complaint with three bank robberies; one in Michigan City on June 5, 2018, another bank in Michigan City on July 31, 2018, and a third bank in Portage on July 31, 2018. The Criminal Complaint alleges that Cheek approached the tellers and demanded money, while implying he had a gun.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI GRIT Task Force with the assistance of the Michigan City and Portage Police Departments. This case will be prosecuted by Assistant United States Attorney Jill R. Koster.
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Mexican National Man Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
Defendant had four prior removals for illegally entering the United States
BECKLEY, W.Va. – Alonso Tapia-Gomez entered a guilty plea to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Tapia-Gomez, 36, of Michoacan, Mexico, faces up to 2 years of incarceration, a 250,000 dollar fine, supervised release for one year, and a special assessment of 100 dollars when he is scheduled to be sentenced on November 8, 2018. Tapia-Gomez also faces removal proceedings at the conclusion of any sentence of incarceration. United States Attorney Mike Stuart praised the work of the West Virginia State Police and Immigration and Customs Enforcement (ICE).
“Four prior removals,” said United States Attorney Mike Stuart. “One would think that Tapia-Gomez would have gotten the message by now. Enter this country legally or face prosecution and deportation. We prosecute 100% of illegal reentry cases and we will continue until those entering illegally go back home, get back in line, and enter our great nation pursuant to our laws.”
On May 15, 2018, Tapia-Gomez was driving a car on Interstate 64 near Beckley, Raleigh County, West Virginia when he was stopped by the West Virginia State Police for speeding. Once stopped, Tapia-Gomez offered to the Trooper a Mexican Consular Identification document instead of a driver’s license. The Trooper immediately contacted ICE agents to confirm alienage. ICE spoke to Tapia-Gomez and confirmed that he was not legally present in the United States. ICE agents drove to the area and placed Tapia-Gomez under arrest. ICE agents further submitted Tapia-Gomez’s fingerprints for a forensic examination. The results of the examination matched him to four prior removals from the United States. One prior removal was in 2009 and three prior removals were in 2010. After being deported on four separate occasions, Tapia-Gomez then illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Tapia-Gomez is a citizen of Mexico.
Assistant United States Attorney Erik S. Goes handled the prosecutions. Judge Irene C. Berger presided over the plea hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mercer County Man Charged with Possessing Crack CocaineRead the Press Release
PITTSBURGH, PA – A Mercer County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on July 31, named Henry A. Bruce, age 38, of Farrell, Pennsylvania, as the sole defendant.
According to the indictment, on or about June 28, 2018, Bruce possessed with the intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rebecca L. Silinski and Troy Rivetti are prosecuting this case on behalf of the government.
The Pennsylvania Office of Attorney General, the Mercer County Drug Task Force, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Meat Processor, 2 Company Officials Plead Guilty to Selling Beef, Pork and Poultry They Falsely Claimed Had Been InspectedRead the Press Release
LOS ANGELES – A meat processor that supplied Southern California grocery chains, the company’s owner and a plant manager have pleaded guilty to federal charges related to the sale of “misbranded” beef, pork and poultry products that illegally bore the official USDA mark and falsely indicated the meats had been inspected by federal authorities.
As a result of the illegal conduct related to a facility operated by AA Meat Products in the City of Commerce, investigators with the United States Department of Agriculture seized approximately 568,000 pounds of meat and poultry products, and the USDA issued a Class I recall led to the recovery of another nearly one-half million pounds of meat – all of which had to be destroyed. A Class I recall, according to court documents, is based on a “health hazard situation where there is a reasonable probability that the use of the product will cause serious, adverse health consequences, or death.” AA Meat voluntarily participated in the massive Class I recall to protect public safety.
AA Meat operated a processing facility in Maywood, which was operating under a USDA grant of inspection, where the meat and poultry food products were properly federally inspected, as well as a second facility in Commerce, which was not. The illegal conduct in this case occurred in 2012 when AA Meat misbranded its meat and poultry food products and intended to defraud its customers by falsely claiming that meat processed at its Commerce facility had been federally inspected.
The three defendants who pleaded guilty Tuesday in United States District Court are:
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Golden Key Food, Inc., operating under the business name of AA Meat Products Corp., which pleaded guilty to a felony offense of offering to sell misbranded meat, specifically beef tripe, with the intent to defraud;
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Bai Zhi Yan, who is also known as Pat Yan, 47, of Temple City, the owner of AA Meat, who pleaded guilty to two misdemeanor counts of offering to sell misbranded meat (pork uteri) and poultry products (duck feet); and
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Yan’s wife, Lianjie Kitty Jiang, 44, also of Temple City, the plant manager at AA Meat’s Maywood facility, who pleaded guilty to the same counts as her husband.
The defendants admitted in court documents that the Commerce facility was not operating under a USDA grant of inspection, and they were preparing and selling millions of pounds of misbranded and uninspected meat and poultry food products.
All three defendants pleaded guilty before United States District Judge R. Gary Klausner, who ordered the defendants to appear for sentencing on September 17.
Prosecutors have agreed to recommend that AA Meat be sentenced to five years of probation and ordered to pay a $1 million fine. The company has agreed to be subject to a food safety compliance plan. As for Yan and Jiang, prosecutors will recommend a sentence of two years of probation and 100 hours of community service, as well as a $20,000 fine for Jiang and a $5,000 fine for Yan.
This case is the product of an investigation by the United States Department of Agriculture’s Office of the Inspector General (USDA-OIG) and the USDA Food Safety and Inspection Service (FSIS).
This case is being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
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McKeesport Woman Scammed Social SecurityRead the Press Release
PITTSBURGH, PA – An Allegheny County resident pleaded guilty in federal court to a charge relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
Kristin Lucas, also known as Kristin Hope Iarrusso, age 45, of McKeesport pleaded guilty to one count of theft of government funds before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that, between November 2012 and October 2014, Lucas received and converted approximately $19,289.00 in Supplemental Security Income benefits to which she knew she was not entitled. Additionally, on or about April 10, 2013, Lucas knowingly made a false statement material to her right to receive Supplemental Security Income benefits, by falsely stating that she had used $8,400 in Supplemental Security Income benefits paid to her from March 1, 2012 to February 28, 2013 for the care and support of a minor child.
Judge Conti scheduled sentencing for November 28, 2018. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Kristin Lucas.
Man Sentenced to Prison for Attempting to Illegally Smuggle Ammunition and Guns from the U.S. to TaiwanRead the Press Release
PHOENIX - On July 30, 2018, Fu Sheng Yang, 39, of Taipei City, Taiwan, was sentenced by U.S. District Judge G. Murray Snow to 33 months’ imprisonment, to be followed by three years of supervised release. Yang had previously pleaded guilty to one count of attempting to smuggle goods from the United States.
On June 20, 2017, Yang legally entered the United States. During the next two days, he purchased 10,000 rounds of ammunition and took possession of 40 upper receivers with the intention of illegally exporting these items from the United States to Taiwan. He also attempted to arrange for the purchase of an additional 100 firearms. On June 22, 2017, Yang was stopped by the Arizona Department of Public Safety for speeding and was found in possession of the aforementioned ammunition and upper receivers.
The investigation in this case was conducted by Homeland Security Investigations, Arizona Department of Public Safety, and the Phoenix Police Department. The prosecution was handled by Lisa E. Jennis and Kristen Brook, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR 17-00981-PHX-GMS
RELEASE NUMBER: 2018-097_ Yang
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Sentenced to Four Years in Prison for Transportation Resulting in the Death of a 16 Year OldRead the Press Release
PHOENIX - On July 30, 2018, Omar Heriberto Robles-Hernandez, 24, of Mazatlán, Sinaloa, Mexico, was sentenced by U.S. District Judge Steven Paul Logan to 48 months’ imprisonment, to be followed by three years of supervised release. Robles-Hernandez had previously pleaded guilty to one count of transportation of illegal aliens resulting in death.
On approximately May 13, 2017, Robles-Hernandez guided eight males (two of whom were juveniles) across the desert from Mexico into Arizona in order to enter the United States illegally. The males were citizens of Mexico and Honduras and were forced to carry backpacks of marijuana, weighing approximately 50 pounds each, during the trip. On May 23, 2017, after ten days of walking in the desert, Robles-Hernandez and the people he was guiding were located by agents of U.S. Customs and Border Protection. Three of them were taken to the hospital where a 16 year old boy died from heat exposure and dehydration caused by the arduous trip through the desert.
The investigation in this case was conducted by Homeland Security Investigations and U.S. Customs and Border Protection. The prosecution was handled by Lisa E. Jennis and Todd M. Allison, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR 17-00980-PHX-SPL
RELEASE NUMBER: 2018-096_ Robles-Hernandez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Sentenced for Craigslist Classic Car Fraud SchemeRead the Press Release
NORFOLK, Va. – A Los Angeles man was sentenced today to 63 months in prison for engaging in a fraud conspiracy to defraud purchasers of classic cars and muscle cars on Craigslist and other Internet websites.
According to court documents, Shakir McNeal, 45, and his co-conspirators Anthony V. Newton, Shaquana K. Taylor, Dewrel L. Burleson, and others, would post for sale listings on various Internet websites such as Craigslist, offering to sell 1960s and 1970s classic cars and muscle cars that they never intended to deliver to the buyers. The conspirators posted on Craigslist websites for Minneapolis, Albuquerque, Chattanooga, Los Angeles, Omaha, Peoria, and Atlanta. They would also use multiple telephones, telephone numbers, and email accounts to communicate with interested buyers, and would later abandon such telephone numbers and email accounts after successfully obtaining buyers’ monies.
The conspirators performed various roles, such as communicating with interested buyers, recruiting other conspirators to receive deposits and wire transfers from persons seeking to buy the vehicles, and opening new bank accounts or allowing their existing accounts to be used to receive deposits and transfers for the vehicles. These monies were then shared among the conspirators. McNeal and his co-conspirators stole $143,675 from 14 of his victims.
McNeal pleaded guilty in November 2017 and was originally scheduled to be sentenced in February 2018. After being placed on bond so that he could to return to Los Angeles to be with his ailing mother, McNeal failed appear for his sentencing, and the court issued an arrest warrant for McNeal.
On June 12, law enforcement again arrested McNeal and returned him to Norfolk for sentencing.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Stephen W. Haynie 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. 2:16-cr-55.
Lincoln Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Joe Kelly announced that on August 1, 2018, Rodney P. Mazzulla, 58, of Lincoln, Nebraska, was sentenced to 26 years (312 months) in federal prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of actual (pure) methamphetamine and two counts of possession with intent to distribute actual (pure) methamphetamine. Sentences for all three charges will run concurrent (at the same time) with each other. Following the prison term, Mazzulla will serve five years on supervised release.
A Lincoln jury convicted Mazzulla of the three charges in April of 2018.
During April of 2017, two search warrants were executed at a large storage garage in southwest Lincoln. Mazzulla was living in a camper inside the garage. On April 2, 2017, officers found 49 grams of pure methamphetamine, and on April 22, 2017, an additional 210 grams of pure methamphetamine were found. Witnesses testified that Mazzulla had been involved in the distribution of large amounts of methamphetamine since as early as sometime in 2015. In addition, in July of 2015, Mazzulla was found in possession of a small amount of methamphetamine and told officers he had been obtaining ounce quantities of methamphetamine once or twice a week for about a year, much of which he sold to his employees at a tree service business in Cheney, Nebraska.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lilbourn Man Sentenced to 147 Months for Attempted Carjacking and Firearm ChargesRead the Press Release
The United States Attorney's Office announced that JUSTIN D. PERRY, age 34, of Lilbourn, Missouri, was sentenced to 147 months on one felony count of Felon in Possession of a Firearm, one felony count of Attempted Carjacking and one felony count of Brandishing a Firearm in Furtherance of a Crime of Violence. He appeared before United States District Judge Stephen N. Limbaugh, Jr.
At his plea on March 21, 2018, Perry admitted that on December 4, 2015, he entered a 2004 Ford pickup truck that was owned by another person, while it was parked outside the owner’s residence and unlocked. Perry found a Ruger, 9mm caliber pistol in the truck, took it inside the residence and approached the owner. Perry pointed the pistol at the owner and demanded the keys to his Ford truck. The victim looked at the pistol and recognized it as his own pistol. The victim spoke to Perry and convinced Perry to allow the victim to drive Perry to Lilbourn, Missouri. The victim went into his bedroom by himself to get dressed. While there, the victim called police officers and told them of the situation. Perry and the victim got in the truck, with the victim driving Perry toward Lilbourn. A Missouri State Highway Patrol officer had been alerted as to the crime and was looking for the victim’s truck. The officer got behind the victim’s truck and turned on his emergency lights. The victim pulled the truck to the side of the road. Perry attempted to flee on foot, but was soon captured.
Perry has previous convictions for Stealing a Motor Vehicle, Possession of a Controlled Substance, and Driving While Intoxicated. He had been sentenced to serve a term of state imprisonment of 15 years. The federal sentence was ordered to be served consecutively to the state sentence.
This case was investigated by the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Keith D. Sorrell handled the prosecution for the Government.
Lebanon Doctor Convicted of Federal Drug Distribution Charges Following Two Week Jury TrialRead the Press Release
Abingdon, VIRGINIA – A medical doctor who operated two rural healthcare practices in Lebanon, Virginia was convicted today of federal drug and healthcare fraud charges. First Assistant United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring made the announcement.
Following more than two weeks of trial in U.S. District Court in Abingdon, Dr. Dwight L. Bailey, 65, of Lebanon, Va., was convicted of all 63 counts charged against him. Bailey, who operated Family Healthcare Associates of Southwest VA and Ridgewood Health Care Clinic, was convicted of illegally prescribing drugs to his patients. Evidence at trial established that Dr. Bailey and the other providers in his office continually wrote prescriptions for opiates, benzodiazepines, and sleeping pills to patients who were clearly misusing, abusing, and diverting those controlled substances. Most of the patients at Bailey’s clinic were receiving an opiate and/or a benzodiazepine. Bailey’s income from his clinic and work at the emergency room topped $750,000 in a single year.
Specifically, Dr. Bailey was convicted of one count of conspiracy to distribute schedule II controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule III controlled substances without a legitimate medical purpose, one count of conspiracy to distribute schedule IV controlled substances without a legitimate medical purpose, one count of conspiracy to distribute suboxone, one count of conspiracy to commit health care fraud, 24 counts of distribution of schedule II controlled substances without a legitimate medical purpose, three count of distribution of schedule III controlled substances without a legitimate medical purpose, 32 counts of distribution of a schedule IV controlled substances without a legitimate medical purpose, and one count of maintaining a place for the purpose of distributing controlled substances.
“This conviction underscores our office’s commitment to holding healthcare providers, who put greed above the safety of their community and patients, accountable for their role in the opioid crisis,” said First Assistant United States Attorney Bubar. “As a top priority, we will continue to vigorously prosecute those responsible for causing opioids to devastate our communities.”
“Prescription drugs have played a major role in the ongoing opioid crisis in Virginia and medical professionals who illegally distribute these highly addictive drugs need to be brought to justice,” said Attorney General Mark Herring. “My team and I have worked hard to bring enforcement action against hundreds of medical professionals who have overprescribed, distributed or stolen prescription drugs as part of our approach to combating the opioid crisis. I want to thank the U.S. Attorney’s office for their partnership in this case.”
Sentencing is scheduled for January 3, 2019, at 1:30 p.m. before United States District Judge James P. Jones in Abingdon.
The investigation of the case was conducted by the Virginia Medicaid Fraud Control Unit and the Virginia State Police. The case was prosecuted by Special Assistant United States Attorneys/Virginia Attorneys General Janine Myatt and Nicole S. Terry and Assistant United States Attorney Randy Ramseyer.
Lawrence Man Sentenced to 37 Months in Federal Prison for Oxycodone TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that John Jacome, 35, of Lawrence, Massachusetts, was sentenced to serve 37 months in federal prison for oxycodone trafficking.
Court documents and statements in court showed that on four separate occasions from January to May of 2017, Jacome sold quantities of oxycodone pills to undercover DEA agents at a location in Kingston. On June 19, 2017, Jacome was arrested by the New Hampshire State Police during a traffic stop after Jacome was found to be in possession of 500 oxycodone pills. In total, Jacome distributed or possessed with the intent to distribute over 1,500 oxycodone pills.
Jacome pleaded guilty on March 20, 2018, to four counts of distributing oxycodone and one count of possession of oxycodone with the intent to distribute. After serving prison sentence, he will be on supervised release for three years.
“The illegal distribution of oxycodone and other opioids presents a serious hazard to public health and safety,” said U.S. Attorney Murray. “Many of those who struggle with addiction to heroin or fentanyl began by using oxycodone. We will continue to work in conjunction with our law enforcement partners to identify and prosecute those who unlawfully distribute these deadly substances.”
“The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge Brian D. Boyle. “Opiate abuse is a major problem in New Hampshire and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin and fentanyl addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in the Granite State to aggressively pursue any group or individual that traffics these drugs.”
This investigation was conducted by the DEA and the New Hampshire State Police. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Jury Finds Quitman Convicted Sex Offender Guilty of Possession of Child PornographyRead the Press Release
MACON: The United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that Ferrell Walker, Jr., a/k/a “Sonny,” age 49, of Quitman, Georgia, was found guilty by a jury of possession of child pornography in the Valdosta Division of the Middle District of Georgia on July 31, 2018, after two days of trial. Mr. Walker is facing a minimum mandatory term of imprisonment of 10 years and a maximum term of imprisonment of 20 years without parole. Sentencing in this case is set for November 7, 2018.
Mr. Walker was previously convicted of possession of child pornography in the Valdosta Division of the Middle District of Georgia in 2007 and sentenced to 84 months in prison. Following his release from prison, Mr. Walker was under the supervision of the United States Probation Office. During a search of his home, U.S. Probation Officers recovered a Samsung cellular telephone hidden in a pillowcase in Mr. Walker’s bedroom. The phone contained approximately 1,000 images of child pornography. Many of the images were of pre-pubescent children as young as two years of age, and depicted sadomasochistic conduct, such as rape.
“Mr. Walker’s conviction demonstrates that child pornography is not a victimless crime, but rather the horrific depiction of the sexual abuse of children,” said United States Attorney Charles E. Peeler. “To those who choose to view child pornography take note: federal and state law enforcement officials are teaming up to take you down. Providing the citizens of Middle Georgia with the safe neighborhoods they deserve is the top priority of this office, and I thank law enforcement for their hard work in this matter.”
“Each time a sexual predator like Mr. Walker views the unconscionable images of innocent young children being abused, the children are re-victimized. Since he did not learn the first time he was convicted of the same crime, hopefully the sentencing for this conviction will give him even more time when he cannot victimize any more children,” said Ricardo Grave de Peralta, Acting Special Agent in Charge (A/SAC) of FBI Atlanta.
This case was investigated by the United States Probation Office and the Federal Bureau of Investigation with assistance from the Tift and Lowndes County Sheriff’s Offices. Assistant U.S. Attorneys Julia C. Bowen and Jim Crane are prosecuting the case for the Government.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected].
Jury Convicts Man Who Hacked Boston Children's Hospital and Wayside Youth & Family Support NetworkRead the Press Release
BOSTON – A Somerville man was convicted today by a federal jury of orchestrating disruptive computer attacks on Boston Children’s Hospital and Wayside Youth and Family Support Network.
Martin Gottesfeld, 32, was convicted of one count of conspiracy to damage protected computers and one count of damaging protected computers. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for Nov. 14, 2018. Gottesfeld was charged in February 2016.
On March 25, 2014, Gottesfeld conducted a distributed denial of service – or DDOS – attack against Wayside Youth and Family Support Network, a nonprofit, Framingham-based residential treatment facility that provides a range of mental health counseling and family support services to children, young adults, and families in Massachusetts. The attack crippled Wayside’s network for more than a week and caused the facility to spend $18,000 on response and mitigation efforts.
Following the attack on Wayside’s computer network, Gottesfeld launched a massive DDOS attack against the computer network of the Boston Children’s Hospital. He customized malicious software that he installed on 40,000 network routers that he was then able to control from his home computer. After spending more than a week preparing his methods, on April 19, 2014, he unleashed a DDOS attack that directed so much hostile traffic at the Children’s Hospital computer network that he not only knocked Boston Children’s Hospital off the internet, but knocked several other hospitals in the Longwood Medical Area off the internet as well.
Gottesfeld identified himself as a member of the hacking group Anonymous, and launched the attacks on behalf of Anonymous, demanding change in the way the Boston Children’s Hospital was handling a teenage patient (discharged months earlier), who was the subject of a custody battle between her parents and the Commonwealth of Massachusetts.
The attack flooded 65,000 IP addresses used by Boston Children’s Hospital and several other area hospitals with junk data intended to make those computers unavailable for legitimate communications. The attack disrupted the Children’s Hospital network for at least two weeks, interrupting access to internet services used by Boston Children’s Hospital staff to treat patients. The attack disrupted the hospital’s day-to-day operations, as well as its research capabilities. The attack cost the hospital more than $300,000 and caused an additional estimated $300,000 loss in donations, as the attack disabled the hospital’s fundraising portal.
In October 2014, federal law enforcement searched Gottesfeld’s home and recovered a number of computers, servers, and hard drives. Gottesfeld, however, was not formally charged with a crime at the time the search warrant was executed.
In February 2016, local police conducted a wellness check at Gottesfeld’s apartment after relatives and his employer grew concerned about his whereabouts. When police arrived at his home, no one was there.
On Feb. 16, 2016, Gottesfeld and his wife made a distress call from a small boat off the coast of Cuba. A nearby Disney Cruise Ship responded and rescued the couple. The ship returned to Miami and Gottesfeld was arrested.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of damaging protected computers provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew E. Lelling and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Seth Kosto of Lelling’s Cybercrime Unit are prosecuting the case.
Jefferson County, Ohio man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shaheim Price, of Wintersville, Ohio, was sentenced today to 30 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Price, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2018. Price, having previously been convicted of a felony, admitted to possessing a 9mm pistol. The crime occurred in Ohio County in October 2017.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Jackson Man Pleads Guilty to Cocaine and Crack ConspiracyRead the Press Release
Jackson, Miss. – L.C. Hatfield, Jr., 43, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to his role in a conspiracy to possess with the intent to distribute more than 280 grams of cocaine base ("crack") and more than 500 grams of a detectible amount of cocaine hydrochloride, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
In October and November 2015, Hatfield was responsible for distributing cocaine and crack to individuals out of a residence located in Jackson. The case is the result of an extensive investigation, dubbed "Rock Bottom", which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of cocaine, crack and methamphetamine.
Hatfield will be sentenced by Judge Jordan on October 26, 2018 at 9:00 a.m., and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from: Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, U.S. Marshals Service, Federal Bureau of Investigation, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, Flowood Police Department, Customs and Border Patrol, and the DEA Houston Field Division. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Hoboken Man Charged with Secretly Photographing Minor on A Cruise ShipRead the Press Release
NEWARK, N.J. – A Hoboken man was arrested for allegedly using his cell phone to take a picture underneath a girl’s dress, U.S. Attorney Craig Carpenito announced.
Jeffrey Goldstein, 31, was arrested July 31, 2018 and charged by complaint with one count of violating a voyeurism statute that prohibits photographing a minor’s private area without consent when that individual has a reasonable expectation of privacy. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $25,000 unsecured bond.
According to the complaint:
On July 8, 2018, a cruise ship left Bayonne for Bermuda. Goldstein was a passenger. That evening, a thirteen-year old girl was standing on the deck of the cruise ship facing outward toward the water.
Goldstein allegedly approached the victim and, without her permission, placed his iPhone underneath the skirt of her dress, pointed the camera upward towards the victim’s genitalia and buttocks and took a picture. The victim felt something touch her leg. Goldstein moved to the side of the victim and soon walked away.
A nearby adult saw Goldstein take a photo up the victim’s dress. Cruise ship personnel reviewed surveillance footage of the incident, which confirmed the witness’s account and identified Goldstein as the man in the footage.
Pursuant to a search warrant, the FBI later downloaded the contents of Goldstein’s iPhone and found the photo of the girl, along with several other “up-skirt” images.
Goldstein faces a maximum potential penalty of one year in prison and a $100,000 fine.
The federal government has special maritime jurisdiction. U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Matt Feldman of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Donald M. Lomurro Esq., Freehold, New Jersey.
Guatemalan National Detained on Child Pornography ChargesRead the Press Release
PROVIDENCE, RI –A Guatemalan national who was prevented from entering the United States illegally as he attempted to cross the U.S. border from Mexico in 2002 has been arrested in Rhode Island and ordered detained in federal custody on child pornography charges.
Samuel Mendez-Garcia, 42, of Providence, was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond today on a criminal complaint charging him with one count each of possession of child pornography and distribution of child pornography.
An immigration detainer has also been lodged against Mendez-Garcia by U.S. Immigration and Customs Enforcement.
Mendez-Garcia’s arrest and detention are announced by United States Attorney Stephen G. Dambruch, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Rhode Island State Police Superintendent Colonel Ann C. Assumpico.
According to court documents, it is alleged that in late March the National Center for Missing and Exploited Children received information from security personnel at Facebook that a user of their services, with an IP address in Rhode Island, uploaded child pornography. The Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force reviewed the information and the postings, determining that the images and videos did in fact depict child pornography. Through their investigation, ICAC investigators determined that the IP address and the Facebook account belonged to Mendez-Garcia.
On July 19, 2018, members of the ICAC task force executed a court-authorized search of Mendez-Garcia’s residence, and seized a laptop computer and cell phone owned by Mendez-Garcia. Law enforcement officers also responded to Mendez-Garcia’s place of employment, and while speaking with him seized a cell phone that was in his possession.
On July 20, 2018, Facebook security personnel reported to the ICAC task force that additional images of alleged child pornography had been discovered on Mendez-Garcia’s Facebook account. A forensic analysis of one of Mendez-Garcia’s cell phones by a member of the ICAC task force allegedly revealed more than 50 videos and images depicting child pornography.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Groton Man Who Sold Drugs to Overdose Victim is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ULPIANO LUGO, 38, of Groton, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by three years of supervised release, for distributing narcotics to an individual who overdosed shortly thereafter.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 22, 2017, at approximately 7:37 p.m., Groton City Police and emergency medical personnel responded to a residence in Groton and found an unresponsive 37-year-old male in the bedroom of the residence. The victim was pronounced deceased at the scene. Officers collected from the bedroom one used syringe that was one-third full of an unknown liquid, a bent metal spoon with an off-white residue on the surface, one plastic bag with powder residue, and the victim’s cellphone.
Subsequent analysis of the powder residue revealed the presence of heroin and cocaine, and text messages from the victim’s cellphone confirmed that the victim had ordered narcotics from LUGO in the days before the victim’s death.
On May 8, 2018, LUGO pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and/or cocaine.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Groton City Police Department. The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Grand Jury Returns Superseding Indictment Charging Former Pittsburgh-area Doctor with Unlawfully Distributing Opioids, Health Care Fraud and Money LaunderingRead the Press Release
PITTSBURGH - A former suburban Pittsburgh physician has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully distributing controlled substances, conspiracy to unlawfully distribute controlled substances, health care fraud and money laundering, United States Attorney Scott W. Brady announced today.
The 121-count superseding indictment, returned on July 31, named Andrzej Kazimierz Zielke, 63, of Allison Park, Pennsylvania, (Hampton) as the sole defendant.
According to the superseding indictment, Zielke owned and operated Medical Frontiers, a holistic practice, located in Gibsonia, Pennsylvania. The indictment alleges that Zielke conspired to create and submit unlawful prescriptions for oxycodone, hydrocodone, morphine sulfate and methadone. The recipients of the unlawfully issued prescriptions then filled them at pharmacies. In addition, the indictment alleges Zielke committed health care fraud by causing fraudulent claims to be submitted to Medicare, Medicaid, Highmark, and workers’ compensation carriers for payments to cover the costs of the unlawfully prescribed drugs. Finally, the indictment alleges that Zielke violated federal money laundering statutes when he used proceeds obtained through his illegal drug distribution to purchase gold and silver coins.
"Western Pennsylvania is experiencing some of the highest opioid overdose death rates in the nation, rates driven not only by drug traffickers who distribute on our streets but also by those who peddle drugs out their medical offices," stated U.S. Attorney Brady. "We will continue our relentless pursuit of both, and today’s charges demonstrate that medical professionals who exploit their prescribing privileges for personal financial gain will be prosecuted to the fullest extent of the law."
On October 5, 2017, Zielke was arrested on a criminal complaint. He was charged in a 13-count indictment in November 2017. Zielke was the first medical provider indicted following Attorney General Jeff Sessions’ formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis. Since its formation, the Western District of Pennsylvania’s OFADU has charged 17 physicians or medical professionals.
The law provides for a maximum per count sentence of 10 years in prison, a fine of $500,000, or both, for the controlled substances offenses. Zielke faces an additional maximum per count sentence of 10 years and fine of $250,000 for the health care fraud charges; and a maximum per count sentence of 10 years and a fine of $250,000 for the money laundering offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar and Special Assistant U.S. Attorney Summer Carroll of the Pennsylvania Attorney General’s Office are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gaffney Man Sentenced to Five Years in Federal Prison for Theft of Government FundsRead the Press Release
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that James Littlejohn, age 66, of Gaffney, South Carolina, was sentenced for two counts of theft of United States government funds in violation of Title 18, United States Code, Section 641. Senior United States District Judge Henry M. Herlong, Jr., sentenced Littlejohn to serve five years in prison to be followed by three years of supervised release. Additionally, Littlejohn was ordered to pay restitution in the amount of $220,958.00.
At the guilty plea hearing on April 24, 2018, Assistant United States Attorney David C. Stephens advised the Court of the following facts. In February 2013 the Internal Revenue Service (IRS) received two Form 1040 Individual Income Tax Returns bearing Mr. Littlejohn’s name, address and Social Security Number. Each showed a large income with various deductions entitling Mr. Littlejohn to a refund for tax year 2011 of $98,261.44 and a refund for tax year 2012 of $122,696.56. Two checks in these amounts were sent to Mr. Littlejohn who cashed same and converted the funds to his own use. It was later learned that the Form 1040s were bogus and that Mr. Littlejohn was not entitled to the claimed refunds.
United States Attorney Lydon stated that the case had been investigated and prosecuted by Assistant United States Attorney Jaime Raich of the Southern District of Florida and Assistant United States Attorney David C. Stephens of the District of South Carolina, Greenville office.
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Franklinton Man Charged with Theft of Funds from the Department of Veterans AffairsRead the Press Release
U.S. Attorney Duane A. Evans announced that EVERETT J. ALLEMAN, JR., age 71, of Franklinton, Louisiana, was charged by way of a Bill of Information with one count of theft of government funds.
According to the charging document, ALLEMAN knowingly stole money of the United States Department of Veterans Affairs that did not belong to him in excess of $1,000.00. As a result, ALLEMAN faces a sentence of up to ten (10) years in prison, up to $250,000 in fines, and up to three (3) years of supervised release. The matter has been allotted to U.S. District Judge Africk.
U. S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Veterans Affairs Office of Inspector General for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
Former Suffolk County Legislator Fred Towle, Jr., Pleads Guilty to Making a False Tax ReturnRead the Press Release
Earlier today, in federal court in Central Islip, Fred Towle, Jr., pleaded guilty to making and subscribing a false tax return for the calendar year 2012 that underreported business income in order to avoid paying the proper tax owed. The guilty plea was entered before United States Magistrate Judge A. Kathleen Tomlinson. When sentenced, Towle faces a statutory maximum of three years in prison and a fine of up to $250,000. As part of his plea, Towle has agreed to pay $307,427 in restitution, the full amount of his tax liabilities.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Justin Campbell, Assistant Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“By his guilty plea, Fred Towle, Jr., has admitted cheating the United States out of hundreds of thousands of dollars owed in taxes by filing a false tax return that concealed a considerable amount of income he had earned from his businesses,” stated United States Attorney Donoghue. “This Office, together with our partners at the FBI and the IRS, recognizes that tax evasion victimizes every law-abiding, taxpaying American and we will vigorously prosecute those like the defendant who believe they’re above the law.”
“Despite his attempt to evade tax payments, Towle could not evade the inevitable repercussions of his actions, as he will now have to repay everything he owes,” stated FBI Assistant Director-in-Charge Sweeney. “For anyone under the misguided notion that our government can be successfully manipulated, today’s guilty plea evidently says otherwise. While maintaining a consistent partnership with the IRS, the FBI will not cease to investigate such manipulative individuals.”
“Federal income tax compliance should be equally shared among all Americans, especially those who have held a public trust position,” stated IRS-CI Assistant Special Agent-in-Charge Campbell. “Mr. Towle’s plea today, serves as an important reminder that IRS-CI is committed along with the United States Attorney’s Office and our law enforcement partners in bringing to justice those who skirt their tax responsibilities.”
During the relevant time period, Towle was the sole owner of a company called East Coast Marketing, which was utilized by Towle to, among other things, consult with political candidates and assist homeowners in expediting approvals for permits made to various governmental entities in Suffolk County. According to court documents filed in connection with the case, in 2012, Towle falsely reported no taxable income from businesses controlled by him, including East Coast Marketing, despite earning approximately $246,000 in taxable corporate income for that year. In total, between tax years 2012 and 2014, Towle failed to declare approximately $1.2 million in income, resulting in a tax loss to the United States of approximately $307,427.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney and Catherine M. Mirabile are in charge of the prosecution.
The Defendant:FRED TOWLE, Jr.
Age: 52
Shirley, New YorkE.D.N.Y. Docket No. 18-CR-368 (JMA)
Former Puerto Rico Police Officer Found Guilty of Making False StatementsRead the Press Release
SAN JUAN, PR – Yesterday evening, after a seven-day jury trial, a jury found POPR Agent Iris Rivera Figueroa guilty of making false statements to federal authorities during a civil rights investigation, announced U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico. The trial was presided by U.S. District Court Judge Pedro A. Delgado.
On June 30, 2016, a 12-count indictment was unsealed charging four former Police of Puerto Rico (POPR) Caguas Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted in Caguas, Puerto Rico, on August 15, 2015. The indictment alleged that during the police operation, the officers used excessive force against two arrestees and that they unlawfully seized, concealed and destroyed evidence of their misconduct.
According to the indictment, while acting under color of law, POPR Sergeant Maximo Cano Diaz physically struck an individual identified only as A.C.N., resulting in bodily injury. While acting under color of law, POPR Agent Antonio Rodríguez Ortiz assaulted an individual, identified only as G.A.H., by deploying a taser onto G.A.H.’s body, which resulted in bodily injury. Cano, Rodríguez and former POPR Agent Javier Ortiz González then commanded an individual, identified only as X.R.C., to stop recording video and surrender her cell phone while pointing a taser at her. The defendants allegedly then pursued X.R.C. to the gate of her home; seized her cell phone, which was used, in part, to record police conduct on or about August 15, 2015; and erased the contents of the cell phone by resetting the phone to its factory settings. On the same day, Cano allegedly seized and kept a cell phone belonging to another individual, identified only as J.R.D., which was also used to record police conduct. According to the allegations, Cano, Ortiz and POPR Agent Iris Rivera Figueroa then made false statements to cover up the conduct.
Cano plead guilty to one count of obstruction of justice on May 21, 2018 and his sentencing is scheduled for September 21, 2018. Javier Ortiz González plead guilty to one count of deprivation of rights under color of law on May 21, 2018, and his sentencing is scheduled for September 21, 2018. Antonio Rodríguez Ortiz went to trial in June of 2018 and was found not guilty of one count of obstruction of justice.
Iris Rivera Figueroa is facing a maximum sentence of five years in prison. The sentencing was scheduled for November 9, 2018, at 10:00 AM. This case was investigated by the FBI’s San Juan Division and prosecuted by Assistant U.S. Attorney José Contreras.
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Former Pima County Justice Court Employee Found Guilty of Child Pornography OffenseRead the Press Release
TUCSON, Ariz. – Yesterday, after a two-day trial, the Honorable Cindy K. Jorgenson found Daniel Courville, 42, of Tucson, Ariz., guilty of knowing access with intent to view child pornography depicting pre-pubescent minors. Courville faces a sentence of up to 20 years’ imprisonment, followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
Courville, who formerly worked as computer programmer and specialist for Pima County Justice Court, was indicted by a federal grand jury after an investigation revealed that Courville had searched for, downloaded, and accessed child pornography images and videos over the internet. Sentencing is scheduled for Oct. 23, 2018.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the 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 www.projectsafechildhood.gov.
The investigation in this case was conducted by agents from Homeland Security Investigations in Tucson. The prosecution was handled by Carin C. Duryee and Nathaniel J. Walters, District of Arizona, Tucson.
CASE NUMBER: CR-17-482-TUC-CKJ
RELEASE NUMBER: 2018-095_Courville
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Law Firm Office Manager Sentenced to Prison, Ordered to Pay Restitution for Bank Fraud SchemeRead the Press Release
PITTSBURGH, Pa – A former law firm office manager has been sentenced in federal court to 21 months imprisonment, three years of supervised release, and ordered to pay $827,020.39 in restitution on his conviction of one count of bank fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Anthony Calaiaro, 34, of 5072 Grove Road, Pittsburgh, Pennsylvania (Whitehall).
According to information presented to the court, from June 2014 through approximately April 2016, Calaiaro, who was employed as an Office Manager for a law firm, wrote checks to himself and forged a partner’s signature on the checks. Calaiaro then cashed the forged checks at various locations and used the funds for his own personal use. The total loss is approximately $827,020.39.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Calaiaro.
Former Frederick Business Owner Convicted in Federal Court for over $49 Million Bank FraudRead the Press Release
Baltimore, Maryland – A federal jury has convicted Mark Ian Gaver, age 56, of Bonita Springs, Florida and previously of Middletown, Maryland of eight counts of bank fraud and two counts of money laundering arising from a scheme in which he obtained over $49 million in bank financing for his company Gaver Technologies, Inc. (GTI) using false and fraudulent financial statements, balance sheets, and certifications of outstanding accounts receivable. Gaver has been in custody since his arrest on November 15, 2017, when he entered the United States from Canada.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation (FBI), Baltimore Field Office; and Special Agent in Charge Mark Higgins, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Northeast Region.
According to the evidence presented at his 7-day trial, in 1998 Gaver formed GTI, an information technology company based in Frederick, Maryland. Between November 2008 and December 2016, Gaver submitted materially false financial documents to a federally insured bank, including fraudulent audit reports and contract status reports, in order to establish and to obtain successive increases in the line of credit from the lender for GTI. Based upon the false documentation submitted by Gaver, the lender ultimately extended $50 million in financing to GTI. The evidence showed that Gaver diverted a large portion of these fraudulently obtained funds to his own personal use.
According to the evidence presented at trial, the bank initially approved an $18.5 million line of credit for GTI in August 2009, when it took over the line of credit from another bank that had previously extended a $16.5 million line of credit to GTI. This line of credit was subsequently increased eight separate times between March 2010 and March 2016, growing from $18.5 million to a total of $50 million. On an ongoing monthly, quarterly, and annual basis, and in connection with each request by Gaver for an increase in GTI’s credit line, the bank required GTI to submit specific documentation disclosing the company’s financial performance and condition. The required documentation included audited annual financial statements, quarterly balance sheets, monthly borrowing base certificates, and monthly accounts receivable aging reports. The monthly borrowing base certificates required Gaver to certify the amount of GTI’s outstanding accounts receivable, and were used by the bank to establish a maximum borrowing amount for GTI. Under the terms of GTI’s line of credit agreement with the lender, GTI was only allowed to borrow up to 75% to 80% of the total amount of GTI’s outstanding accounts receivable, and the funds loaned by the bank were only to be used by GTI for business purposes.
According to testimony at trial, between August 2009 and December 2016, Gaver also submitted Quarterly Contract Status Reports to the bank, which falsely represented that GTI had secured contracts with federal government agencies, such as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the National Aeronautics and Space Administration (NASA), or that overstated the amount of GTI’s ongoing contracts with federal government agencies.
The evidence showed that some of the funds obtained from the lender were used by Gaver to cover regular business expenses and thereby keep GTI open, but Gaver also diverted half of the post-2009 loan proceeds – approximately $15 million – to his own personal use. For example, Gaver used loan proceeds to pay $779,000 for the rental of private planes that he used for non-business purposes, as well as to pay for personal pleasure trips to the Bahamas, France, Germany, Mexico, Jamaica, and the Bahamas. Gaver also used the funds to purchase vacation homes, including a 4,000 square foot condominium with a view of the Gulf of Mexico in Bonita Springs, Florida, that cost $2.275 million. Gaver also used loan proceeds to purchase a 2012 Maserati Gran Turismo; a 2011 Mercedes Benz SL Roadster; and a private membership at an exclusive golf club located in Naples, Florida that cost $285,000.
Gaver faces a maximum sentence of 30 years in prison for each of the eight bank fraud counts, as well as 10 years in prison for each of the two money laundering charges. U.S. District Judge Richard D. Bennett has scheduled sentencing for Gaver on November 1, 2018 at 10 a.m.
United States Attorney Robert Hur commended the FBI and the FHFA-OIG for their work on the investigation. Mr. Hur also thanked Assistant U.S. Attorneys Jefferson M. Gray and Jeffrey J. Izant, who are prosecuting the case.
Former Financial Advisor Charged with Fraud in Alleged Ponzi Scheme Targeting Elderly InvestorsRead the Press Release
NEWARK, N.J. – A former registered investment advisor was arrested today on charges stemming from an investment fraud targeting elderly investors, U.S. Attorney Craig Carpenito announced.
Daniel Rivera, 48, of Hillsborough, New Jersey, was indicted by a federal grand jury on July 31, 2018, on three counts of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the indictment:
From 2008 through 2017, Rivera allegedly engaged in an investment fraud where he solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera told investors the company was staffed by experienced real estate professionals who used investor funds to invest in real estate ventures. Rivera allegedly told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera allegedly also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.
The counts of wire fraud with which Rivera is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
Former Director of Marketing and Merchandising for Pa-Liquor Control Board Sentenced to Two Years’ Probation and Six Months’ House Arrest for Honest Services Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James H. Short, Jr., age 53, of Harrisburg, Pennsylvania, the former Director of Marketing and Merchandising for the Pennsylvania Liquor Control Board (PA-LCB) was sentenced on July 31, 2018, to two years’ probation and six months of house arrest by U.S. District Court Judge Sylvia H. Rambo, for a scheme to defraud the state, its citizens and the PA-LCB of their right to his honest services as a public official through bribes, kick-backs and concealing information.
According to United States Attorney David J. Freed, Short served as the Director of Marketing and Merchandising from approximately 2003 to 2012, and supervised the process through which alcoholic beverages are selected and acquired for sale in Pennsylvania’s state-run liquor stores. Between 2002 and 2012, Short received benefits from a distributor and a manufacturer of alcoholic beverages sold in Pennsylvania’s stores. These benefits included all-expense paid golf trips, cash, gift cards, meals, and other benefits. As Director of Marketing and Merchandising for the PA-LCB, Short supervised the process of recommending to the PA-LCB which new products should be sold and which products should no longer be sold in Pennsylvania’s 500 state-run liquor stores.
Short pled guilty to the charge of Honest Services Mail Fraud in September 2015.
The case was investigated by the Harrisburg Office of the FBI. Assistant United States Attorney Michael A. Consiglio prosecuted the case. The case initially was brought by the Pennsylvania Ethics Commission which found that Short violated the Pennsylvania Ethics act when he accepted certain things of value charged in the present federal case.
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Former Auburn, Georgia police officer sentenced for extortion and robberyRead the Press Release
ATLANTA - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme.
“Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.”
“The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.”
“The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.”
According to U. S. Attorney Pak, the indictment, and other information presented in court: From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers. After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin. The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split. That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard. Hubbard agreed to participate in the robbery and extortion plan.
On April 4, 2016, DEA agents gave the confidential source $40,000. The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money. Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed. DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle. Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine. When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby. Hubbard was found with $20,000 in his vehicle.Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018. Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2016.
The other defendants pleaded guilty as follows:
●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016. Rosendary is scheduled to be sentenced on August 15, 2018.
●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on February 12, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on July 10, 2018.
●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018. Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018.
●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018. Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018.
●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016. Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018.
●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017. Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018.
This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation.
Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon from Ohkay Owingeh Pueblo Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Ronald J. Martinez, 44, an enrolled member and resident of Ohkay Owingeh Pueblo, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm and ammunition.
Martinez was arrested in April 2017, on a criminal complaint charging him with assaulting an officer of the Ohkay Owingeh Tribal Police Department (Police Department) with a dangerous weapon and being a felon in possession of a firearm. According to the complaint, the offenses occurred when the officer responded to a call reporting that Martinez was threatening to shoot himself. When the officer arrived at the scene, Martinez assaulted the officer by threatening him with a large wooden stick. A shotgun was seized from the residence after Martinez was subdued and taken into custody.
Martinez was indicted on May 24, 2017, and was charged with assault with a dangerous weapon and with being a felon in possession of a firearm and ammunition. The indictment alleged that Martinez committed the crimes in April 2017, on Ohkay Owingeh Pueblo in Rio Arriba County, N.M. At the time, Martinez was prohibited from possessing firearms or ammunition because of his prior felony convictions for shooting at a dwelling, unlawful use of a firearm, assault resulting in serious bodily injury, and discharging of a firearm during a crime of violence.
During today’s change of plea hearing, Martinez pled guilty to being a felon in possession of a firearm and ammunition. In entering the guilty plea, Martinez admitted that on April 20, 2017, he unlawfully possessed a loaded firearm on Ohkay Owingeh Pueblo. Martinez acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Martinez faces a maximum penalty of ten years in federal prison. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s, Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.
Federal jury finds Breaux Bridge man guilty of distributing heroin in AcadianaRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that a federal jury found a Breaux Bridge man guilty of conspiring with three Lafayette residents to sell heroin.
Joshua Edwards, 32, of Breaux Bridge, Louisiana, was found guilty of one count of conspiracy to distribute and possess with intent to distribute controlled substances. United States District Judge Dee D. Drell presided over the trial, which started Monday and ended today. Evidence admitted at trial revealed that Edwards, along with Jacobe Arceneaux, 34; Terrence T. Woods, 33; and Robert Jenkins, 35, all of Lafayette, conspired to distribute heroin in the Acadiana area in 2016 and 2017. Law enforcement agents identified Arceneaux as a heroin supplier who used a relative’s home on Simcoe Street in Lafayette as a stash house and used the relative as an intermediary to sell drugs.
Edwards faces a minimum of 10 years to life in prison, eight years of supervised release and a $5 million fine. Sentencing has been set for October 31, 2018. Arceneaux pleaded guilty to the distribution count on July 13, 2017, and is scheduled to be sentenced on October 9, 2018. Woods pleaded guilty to the distribution count on September 20, 2017, and the sentencing date has not been set. Jenkins pleaded guilty to the distribution count on January 11, 2018, and he was sentenced on May 8, 2018 to 90 months in prison and four years of supervised release.
The FBI, DEA, Lafayette Metro Narcotics and other law enforcement agencies conducted the investigation. Assistant U.S. Attorneys Robert C. Abendroth and Daniel J. McCoy are prosecuting the case.
Federal Inmate Pleads to Weapon ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a federal inmate pled guilty to a weapon charge. Sterling Cleggett, 35, an inmate at the Federal Correctional Institution at McDowell, pled guilty to possessing a weapon inside the prison. Stuart praised the investigative work of the Federal Bureau of Prisons.
“Yet another inmate found in possession of shank,” said United States Attorney Mike Stuart. “Another inmate that will receive an extended stay at the FCI.”
Cleggett admitted that on May 3, 2018, he possessed a handcrafted weapon commonly known as a “shank.” A prison staff member found the weapon inside Cleggett’s pants. Cleggett faces up to five years in prison when he is sentenced on December 11, 2018.
Assistant United States Attorney John File is prosecuting the case. Senior United States District Judge David A. Faber presided at the plea hearing.
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###Federal Drug and Violent Crime Enforcement Operation Nets 13 Defendants Wanted for Drugs, Guns, and Other ChargesRead the Press Release
ELIZABETH CITY – United States Attorney Robert J. Higdon, Jr. announced that “Operation Nor’easter,” a heroin and opioid centered Organized Crime and Drug Enforcement Task Force (OCDETF) Operation headed up by the Federal Bureau of Investigation resulted in the indictment of twelve (12) defendants for outstanding federal charges in a coordinated warrant enforcement operation. In addition, several defendants related to this operation were found to be in the custody of the State of North Carolina. Federal detainers have been filed against those subjects.
This operation was conducted as part of the Eastern District’s Take Back North Carolina Initiative designed to focus federal resources on the alarming level of opioid use and the deaths associated with it. This initiative is bringing the full weight of the federal court system in the fight against crime in Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, Tyrell, and Gates Counties in partnership with District Attorneys’ Offices and federal, state, and local law enforcement.
The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant are contained in the parenthesis following the personal information.
• Rasheen Jerome Arnold 24, of Edenton, NC (Felon in Possession of Firearm; Possession of Stolen Firearm)
• Alvin Johnson, 41, Pasquotank County, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)
• Samuel Rawlins, 39, Elizabeth City, NC, (Possession of Firearm by Felon)
• Devon Lee, 36, Perquimans County, NC, (Conspiracy to distribute cocaine and possession with the intent to distribute cocaine)
• Willie Person, 54, Grandy, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)
• Glenn Mitchell, 49, Edenton, NC, (Possession with the intent to distribute cocaine and heroin)
• Clarence Chestnutt, 40, Hertford, NC, (Possession with the intent to distribute cocaine)
• John James Taylor, 37, Elizabeth City, NC, (Possession with the intent to distribute a quantity of cocaine and heroin; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by felon)
• Nathan Lamonte Silver, 44, Elizabeth City, NC, (Hobbs Act robbery)
• Mykel Levant Davis, 37, Elizabeth City, NC, (Possession of firearm by felon)
• Marvin Johnson, 41, Elizabeth City, NC, (Possession with the intent to distribute heroin)
• Ross Domina Spruill, 33, Dare county, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)
The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Federal Bureau of Investigation along the Bureau of Alcohol, Tobacco, Firearms, & Explosives, (ATF), the United States Marshal Service, Internal Revenue Service Criminal Investigations, the North Carolina State Bureau of Investigations, Pasquotank County Sheriff’s Office, Chowan County Sheriff’s Office, Elizabeth City Police Department, Edenton Police Department, Perquimans County Sheriff’s Office, Camden County Sheriff’s Office, Currituck County Sheriff’s Office, Dare County Sheriff’s Office, Tyrell County Sheriff’s Office, Gates County Sheriff’s Office, Manteo Police Department, North Carolina First Judicial District Attorney’s Office, and the United States Probation Office.
Fayetteville Man Sentenced for Felon in Possession ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, STERLIN KOREN WHITTED, 40, of Fayetteville, North Carolina, was sentenced by Chief United States District Judge James C. Dever, III to 66 months imprisonment followed by 3 years of supervised release.
WHITTED was named in an Indictment on September 12, 2017 charging him with Possession of a Firearm by a Felon. On November 13, 2017, WHITTED pled guilty to the charge.
On April 14, 2017, an officer from the Fayetteville Police Department initiated a traffic stop on a vehicle driven by WHITTED. Upon approach, the officer observed an open container of alcohol in the vehicle. A search conducted of the vehicle resulted in the seizure of a .40 caliber handgun, loaded with 13 rounds of ammunition, and one round of 9mm ammunition.
Further investigation determined the handgun had been reported stolen. WHITTED admitted to owning the gun for a few months.
On September 14, 2017, law enforcement officers were conducting surveillance on WHITTED’s residence in Fayetteville in an attempt to arrest WHITTED for an outstanding felony warrant in the above-referenced incident. Whitted exited the passenger side of a vehicle and approached the residence. He was apprehended shortly thereafter. A search of WHITTED revealed he was wearing a firearm holster. WHITTED then admitted that a handgun was located in the living room of his apartment. A subsequent search of the residence resulted in the seizure of a .40 caliber handgun, loaded with 14 rounds of ammunition; six rounds of 9mm ammunition; a box of .40 caliber ammunition. The investigation determined that the handgun seized fit the holster WHITTED was wearing. Based on the investigation, WHITTED is accountable for the unlawful possession of two firearms, one of which was stolen.
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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Fayette County Man Sentenced on Federal Gun ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that Jordan Goard, 27, of Fayette County, was sentenced to 100 months in federal prison for being a felon in possession of a firearm. Goard’s sentence will run concurrently with a state sentence of over 60 years. Stuart commended the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service CUFFED Task Force.
“It’s so unfortunate that as a result of Goard’s criminal actions, he will be spending the majority of his life behind bars,” said United States Attorney Mike Stuart. “But my team is working tirelessly to prevent violence in communities throughout the Southern District by locking up prohibited persons that violate federal gun laws.”
Goard pled guilty in April, admitting that on February 2, 2017, he possessed a .40 caliber pistol in Beckley. Law enforcement agents seized the firearm from him when they apprehended him on another matter.
Assistant United States Attorney John File handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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.
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Doctor Sentenced to 18 Months in Prison for Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that physician MUSTAK Y. VAID was sentenced today by U.S. District Judge Lorna G. Schofield to 18 months in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. VAID falsely posed as the owner of a medical clinic, when that clinic was in fact owned by a corrupt businessman, and falsely claimed that he had examined and treated hundreds of patients whom he had not in fact seen. VAID pled guilty on November 13, 2017, to health care fraud and conspiracy to commit health care fraud, mail fraud, and wire fraud before U.S. Magistrate Judge Henry B. Pitman.
U.S. Attorney Geoffrey S. Berman said: “The Medicare and Medicaid programs are designed to provide essential medical care to the elderly and the needy, not to enrich corrupt doctors and other fraudsters. The real victims of Mustak Vaid and his co-conspirators are U.S. taxpayers and needy patients with legitimate medical needs. Today’s sentence sends a strong message that those who cheat Medicare and Medicaid, including physicians and other health care providers who abuse their positions of trust, will be held accountable and will face serious penalties.”
According to the Indictment and other documents filed in federal court, as well as statements made during VAID’s plea proceeding and sentencing:
Between 2007 and 2013, Aleksandr Burman owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed. Under New York State law, medical clinics must be owned and operated by a medical professional. To circumvent this requirement, Burman, who was not a medical professional, hired doctors to pose as the nominal owners of each of the Clinics. VAID was one of those doctors, agreeing to sign a variety of fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that VAID was the sole owner of Ocean Side Medical of Brooklyn, P.C., one of the six Clinics. VAID and his co-conspirators also helped prepare false medical records to support fraudulent reimbursement claims provided to Medicare and Medicaid. VAID signed medical charts falsely stating that he had examined patients, and wrote prescriptions and referrals for medically unnecessary and/or non-existent tests and supplies.
VAID is the seventh defendant, and the first physician, who has been sentenced after pleading guilty in this case and a related case. The other defendants include:
- Aleksandr Burman, the leader of the scheme, who was sentenced in a related case on May 8, 2017, to 10 years in prison;
- Marina Burman, the former wife of Aleksandr Burman and the owner of a related medical supply company, was sentenced on May 17, 2018, to three years in prison;
- Asher Oleg Kataev, a Burman business partner, was sentenced on May 31, 2018, to three years in prison;
- Alla Tsirlin, a Clinic office manager, was sentenced on June 5, 2018, to a year and a day in prison;
- Edward Miselevich and Ivan Voychak, Burman’s partners who jointly ran a related ambulette company, were sentenced on June 12 and July 19, 2018, respectively, to three years in prison each.
In addition, physician Ewald J. Antoine has pled guilty and is scheduled to be sentenced on August 21, 2018. Three additional defendants – a doctor (Paul J. Mathieu), a physical therapist (Hatem Behiry), and an occupational therapist (Lina Zhitnik) – are scheduled to go to trial before Judge Schofield on November 26, 2018. These three remaining defendants are presumed innocent unless and until proven guilty.
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In addition to the prison term, VAID, 45, of Roundtown, Michigan, was sentenced to three years of supervised release. Judge Schofield also ordered VAID to pay restitution of $2,669,231 and to forfeit $103,843 in ill-gotten gains.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Won S. Shin are in charge of the prosecution.
District Man Pleads Guilty to Charges in Fraud and Theft Schemes Targeting BusinessesRead the Press Release
WASHINGTON – Kevin Cole, 26, of Washington, D.C., has pled guilty to charges stemming from a pair of schemes in which he stole nearly $80,000 in checks intended for local businesses, U.S. Attorney Jessie K. Liu announced today.
Cole pled guilty on July 31, 2018, in the Superior Court of the District of Columbia, to two counts of first-degree theft, including one with an enhancement for violating terms of his pretrial release, and one count each of first-degree fraud and violating the Bail Reform Act. Cole is in custody pending his sentencing on Oct. 19, 2018, by the Honorable Kimberley S. Knowles.
According to a proffer of facts submitted at the plea hearing, from September through December of 2014, Cole targeted a privately owned swimming pool business in a fraud scheme. He stole checks that were being mailed to a mailbox the company kept at a copy and print shop in Northwest Washington. He also created a bank account in a name that mimicked that of the company’s. In total, he stole at least 21 checks from the company, totaling $64,794. In addition, he obtained access to checkbooks belonging to two other people, and attempted to deposit checks into accounts he had created. The pool company discovered the fraud and the Metropolitan Police Department (MPD) began an investigation that led to Cole’s arrest in June 2016.
In 2017, while on pretrial release for the earlier fraud, Cole carried out essentially the same scheme again: this time, he got access to business mailboxes by signing up for an account at a virtual office space in Northwest Washington. Once there, he stole a number of checks from different companies, including a check in the amount of about $15,000 that was paid from a church to a musician for a Christmastime concert and recording. Again, Cole created a fraudulent bank account in the name of the musician’s company and tried to pass the check off as his own; however, the scheme was detected and the church stopped payment on the stolen check.
Cole was once again arrested in May 2017. He failed to appear for a court hearing on July 13, 2018, leading to the Bail Reform Act charge against him.
In announcing the plea, U.S. Attorney Liu commended the work of the detectives who investigated the crimes from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the U.S. Marshals Service and the Arlington County, Va. Police Department. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Stephanie Miller and Michael Christin; former Assistant U.S. Attorney Teresa A. Howie; Paralegal Specialists Aisha Keys and Angelia Slagle; Litigation Technology Specialist Anisha Bhatia, and Intern David Seidman and former Intern Tessa Tilton. Finally, she commended the work of Assistant U.S. Attorneys Michael J. Romano and Jason Feldman, who investigated and prosecuted the case.
Coralville Attorney Pleads Guilty to Mail Fraud and False ClaimsRead the Press Release
DAVENPORT, IA-- On July 30, 2018, Soo Hyun Jung, also known as Jay Jung, age 46, from Coralville, Iowa, pled guilty to two counts of Mail Fraud and one count of False Claims to a Government Agency, announced United States Attorney Marc Krickbaum. Each mail fraud count carries a maximum potential penalty of not more than (20) twenty years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. The false claims charge carries a potential penalty of up to (5) five years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. Jung also agreed to forfeit a 2014 BMW M6 Gran Coupe, and pay restitution in the amount of $618,021.51. Sentencing is scheduled for December 12, 2018.
During a time period including 2014-2016, Jung represented clients as an attorney and tax preparer. As part of his plea, Jung admitted that in 2014, he agreed to represent a client to prepare tax returns. Jung filed tax returns and requested refunds. In July 2015, Jung contacted IRS to check on the status of these returns. During this contact, Jung updated the client’s home address on file with the IRS to Jung’s business address in Coralville. As a result, in October 2015, three United States Treasury refund checks totaling $202,179 were received by Jung. Jung forged an endorsement on these checks and, in a series of transfers, caused these funds to be deposited into his personal bank account. Jung used $83,200 of these funds in November 2015 to purchase a 2014 BMW M6 Gran Coupe.
In August 2015, Jung filed additional tax returns without the consent of the client. These additional returns contained information that was not accurate and requested refunds. These returns included a 2013 return submitted to the United States Department of Treasury on August 22, 2015, that falsely claimed a refund of $15,252.
In May 2016, in relation to a different client, Jung caused an investment fund to be cashed out and a $200,000 check mailed to Jung in Coralville, Iowa. Jung later caused these funds to be deposited into his personal bank account.
This case was being prosecuted by the United States Attorney’s Office for the Southern District of Iowa, and the Internal Revenue Service-Criminal Investigation Division.
Columbia Man Pleads to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Corey F. Kitt, age 38, of Columbia, plead guilty in federal court to knowingly using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Chief United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on December 4, 2017, deputies with the Richland County Sheriff’s Department responded to Old Hopkins Road and Garners Ferry Road in reference to a subject sleeping behind the wheel of a truck while it was running and in drive on the roadway. Deputies found the driver to be Kitt, detected the odor of alcohol, and determined that Kitt, who did not have a driver’s license in his possession, was actually under suspension. Deputies also located a passenger asleep in the truck and upon speaking with her, they learned that there was possibly a shotgun in the back of the truck. Deputies searched the truck and found a loaded Glock handgun and a loaded 12 gauge shotgun. Further investigation revealed Kitt’s DNA on the handgun. Deputies also found methamphetamine and heroin inside the truck. Kitt admitted possession of the handgun and the drug.
Kitt faces a statutory mandatory 5 years imprisonment and a maximum of life, a fine of $250,000, and 5 years of supervised release. Kitt has prior convictions in state court, which prohibit him from possessing firearms and ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney William K. Witherspoon of the Columbia office handled the case.
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Camden Man Sentenced on Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that James Darren Norris, 52, of Camden, Alabama, was sentenced this morning to 37 months’ imprisonment on gun charges. Court documents show that Norris was driving a truck pulling a trailer with no lights and no tag in June of 2017. The officers noticed paraphernalia in the vehicle in plain view associated with drug use. Officers also observed that Norris was wearing a gun holster on his belt, which was empty, and his belt was unbuckled. They conducted a search of his vehicle and found other drug paraphernalia, two grams of methamphetamine and a loaded .45 caliber pistol. Norris admitted that he was a convicted felon. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that Norris had a prior felony conviction in federal court in Mobile for being a prohibited person (a drug user) in possession of a firearm.
Norris was indicted in January of 2018 by a federal grand jury in Mobile, charged with felon in possession of a firearm. In March of 2018, ATF agents and agents from the 4th Judicial Circuit Drug Task Force traveled to Norris’ residence in Camden to execute an arrest warrant for the federal indictment. When they arrived, they found drug paraphernalia in plain view in the shop near the house, and shotgun shells around the desk in the shop. They obtained a search warrant to determine whether there was additional drug evidence or a gun in the residence or the shop. They found a 12 gauge shotgun in the house. Norris was advised of his rights, and he admitted that he was a user of methamphetamine and he used it whenever he had it, as often as a couple of times a day. In late March, the grand jury in Mobile returned a superseding indictment charging Norris with being a drug user in possession of the shotgun recovered from his residence in March. In April of 2018, Norris pled guilty to the federal charges of felon in possession of a firearm and drug user in possession of a firearm.
United States District Court Judge Callie V. S. Granade sentenced Norris to 37 months’ imprisonment concurrent on the two counts. The judge also ordered that Norris undergo drug and alcohol treatment and counseling while serving his sentence. The judge further ordered that Norris serve a three-year term of supervised release when he is discharged from his custody sentence, during which he will undergo further drug and alcohol abuse treatment. Norris was ordered to pay $200 in mandatory special assessments, but no fine was imposed.
The case was investigated by the Camden Police Department, 4th Judicial Circuit Drug Task Force, and ATF. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
Business Executive Arrested on Foreign Bribery Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A dual U.S.-Venezuelan citizen who controlled multiple companies was arrested yesterday on foreign bribery charges for conspiring to make, and making, corrupt payments to an official of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), in exchange for favorable business treatment with PDVSA.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston Field Office made the announcement.
Jose Manuel Gonzalez Testino (Gonzalez), 48, was arrested at Miami International Airport, on an arrest warrant based on a criminal complaint filed in the Southern District of Texas that was unsealed yesterday. He made his initial appearance today before U.S. Magistrate Judge Lauren F. Louis of the Southern District of Florida. Gonzalez is charged with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and paying bribes to a foreign official in violation of the FCPA.
According to the criminal complaint, Gonzalez and a co-conspirator paid at least $629,000 in bribes to a former PDVSA official in exchange for the official taking steps to (1) direct PDVSA contracts to Gonzalez’s companies, (2) give Gonzalez’s companies priority over other vendors to receive payments, and (3) award Gonzalez’s companies PDVSA contracts in U.S. dollars instead of Venezuelan bolivars.
The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the arrest of Gonzalez, the Justice Department has announced charges against 17 individuals, 12 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Trial Attorneys Sarah E. Edwards and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case. The Criminal Division’s Office of International Affairs also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Bridgeport Heroin Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYEVHON KING, also known as “Twin,” 31, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 121 months of imprisonment, followed by 10 years of supervised release, for trafficking heroin.
According to court documents and statements made in court, KING was a member of a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico, and then distributed the drug in the Bridgeport area. The investigation, which included multiple controlled purchases of heroin from KING, revealed that KING received and distributed at least three kilograms of heroin.
During the investigation, investigators seized vehicles owned by KING that contained “traps,” typically used to conceal narcotics and other contraband.
On March 16, 2017, a grand jury in Hartford returned an indictment charging KING and six other individuals with heroin trafficking and related offenses.
KING has been detained since his arrest on March 24, 2017. On February 13, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Boston Gang Member Charged with Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man affiliated with the Vine/Forest Street and Orchard Park gangs was charged today in federal court in Boston with illegally possessing a firearm and ammunition.
Quantae Elmore, 21, was indicted on one count of being a felon in possession of a firearm and ammunition. Elmore was arrested on July 6, 2018, and charged; he has been in custody since his arrest.
According to court documents, around 9:40pm on May 4, 2018, multiple people were shot inside the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development, in Jamaica Plain. A small white car was seen speeding away. Approximately 20 minutes later, aware of an ongoing feud between the Heath Street gang and the Orchard Park gang, police officers went to the Orchard Gardens Development to investigate possible links between the Jamaica Plain shooting and Orchard Gardens. There, on Ziegler Street, officers encountered Elmore standing outside a white car with other Vine/Forest Street and Orchard Park gang affiliates.
It is alleged that Elmore grew alarmed upon seeing the officers, grabbed the front of his waistband with both hands, and began walking away from the officers. Officers followed Elmore, who ultimately stopped, still grabbing his waistband. Officers saw a bulge at the front of Elmore’s waist, consistent with a firearm, and pat-frisked him. They found inside his waistband a Smith & Wesson .38 caliber handgun loaded with five rounds of .38 caliber ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Evans made the announcement today.
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.
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.
Bitcoin Trader Sentenced to 41 MonthsRead the Press Release
PHOENIX – On July 30, 2018, Thomas Mario Costanzo, a.k.a. Morpheus Titania, 54, of Mesa, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 41 months’ imprisonment, with credit for time served since his arrest in April 2017. Costanzo was found guilty by a federal jury on March 28, 2018, of money laundering.
The evidence at trial showed that federal agents initiated an investigation of Costanzo in 2014, after identifying an advertisement he posted on a peer-to-peer bitcoin exchange website. In the advertisement, Costanzo advertised that he was willing to engage in cash transactions up to $50,000. When undercover federal agents approached Costanzo and told him that they were drug dealers, Costanzo provided them with bitcoin and told them it was a great way to limit their exposure to law enforcement. The jury found that over a two-year period, Costanzo took $164,700 in cash-including a final $107,000 transaction in April 2017-from the agents (whom he believed to be heroin and cocaine traffickers) and exchanged it for bitcoin in order to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds. The evidence at trial also showed that Costanzo used bitcoin to purchase drugs from others and that he provided bitcoin to individuals who were buying drugs via the internet.
At the sentencing hearing Judge Snow also ruled on the forfeiture of the 80.94512167 bitcoins provided by Costanzo to the undercover agent as part of the final $107,000 money laundering transaction. The current value of the forfeited bitcoins is more than $600,000. Costanzo had previously claimed an interest in 49.99363132 of the seized bitcoins, and his interest was forfeited at the sentencing hearing. Separately, the government has also reached a resolution with a third party to the forfeiture proceedings who had supplied Costanzo with the remaining bitcoins and who had been under investigation for engaging in an unlicensed bitcoin trading business. In particular, Dr. Peter Steinmetz has agreed to forfeit the remaining 30.95149035 bitcoins, and to also forfeit an additional $54,000 in U.S. currency; the government has agreed not to prosecute Dr. Steinmetz for his prior bitcoin trading activity; and Dr. Steinmetz agrees that going forward, and for the next two years, he will only purchase or sell virtual currency on exchanges registered with the Financial Crimes Enforcement Network, also known as FinCEN.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Scottsdale Police Department, with assistance from the Maricopa County Sheriff’s Office and the United States Postal Inspection Service, under the Department of Justice’s Organized Crime Drug Enforcement Task Force.
The prosecution was handled by Matthew Binford, Carolina Escalante, and Gary Restaino, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-585-PHX-GMS
RELEASE NUMBER: 2018-094_Costanzo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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