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Monday 11 June 2018
Exective Director of RARES Pleads Guilty to Filing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Brian Mount, 60, of Pittsford, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci to filing a false tax return. The charge carries a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Mount was the executive director of Regional Area Recreation and Employee Services (RARES), a non-profit business located at 312 West Commercial Street in East Rochester. The non-profit provides discounted tickets and services to subscribing companies. The defendant received salary and commissions from RARES that he failed to report on his 2010 through 22103 federal tax returns. In total, Mount failed to report approximately $227,835.77 in additional income on his tax returns, which resulted in the defendant failing to pay $60,977 in taxes to the Internal Revenue Service.
Today’s plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Mount’s sentencing is scheduled for September 19, 2018, at 3:00 p.m. before Judge Geraci.
Erica MacDonald Takes Oath of Office as United States Attorney for the District of MinnesotaRead the Press Release
Erica H. MacDonald has taken the oath of office to become the United States Attorney for the District of Minnesota. U.S. Attorney MacDonald was nominated by President Donald Trump on April 10, 2018, and confirmed by the U.S. Senate on May 24, 2018. She took the oath of office from U.S. District Court Chief Judge John R. Tunheim this morning. She succeeds Gregory Brooker who has served as the United States Attorney since March 2017.
“It is truly an honor to return to this office and serve as United States Attorney,” said U.S. Attorney MacDonald. “I am looking forward to leading a team of dedicated professionals and working alongside our law enforcement partners in the pursuit of justice on behalf of all Minnesotans.”
As United States Attorney, Ms. MacDonald is the top-ranking federal law enforcement official in the District of Minnesota. She will oversee a staff of 99 employees, including 52 attorneys and 47 support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, firearms, narcotics, child exploitation, human trafficking, financial fraud, healthcare fraud, and public corruption. The office is also responsible for representing the United States in affirmative and defensive civil cases, as well as assisting communities throughout Minnesota in appropriate community-building efforts designed to enhance public safety.
Before taking office, U.S. Attorney MacDonald was a judge in Dakota County since 2009. Prior to her judgeship, from 2000-2009, U.S. Attorney MacDonald served as an Assistant U.S. Attorney for the Northern District of Illinois and for the District of Minnesota. She began her legal career in 1997 as a judicial clerk to Judge James Henry Alesia of the U.S. District Court in Chicago. She then joined the firm of Kirkland and Ellis in 1999.
U.S. Attorney MacDonald received her J.D. degree, with honors, from DePaul University College of Law, and her B.A. degree from the University of Notre Dame.
Upon taking office, U.S. Attorney MacDonald thanked Mr. Brooker for his continued and dedicated service to the office and to the Department of Justice.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Epsom Woman Sentenced to Eight Years in Prison on Fentanyl Trafficking and Firearm ChargesRead the Press Release
CONCORD – Nicole Roskos, 30, of Epsom, was sentenced to eight years in federal prison for conspiracy to possess with intent to distribute controlled substances and using and carrying a firearm during and in relation to a drug trafficking crime, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, the investigation began when the defendant sold fentanyl to a cooperating individual. In September of 2017, police executed a search warrant at the defendant’s residence and found four firearms, ammunition, over 511 grams of fentanyl, and approximately $24,000.
Roskos previously pleaded guilty to the charges on March 2, 2018. After she is released from prison, the defendant will serve a three-year term of supervised release.
“The deadly combination of fentanyl trafficking and firearms pose a substantial threat to public safety,” said U.S. Attorney Murray. “We will continue to work with all of our law enforcement partners to identify and prosecute those who distribute deadly drugs such as fentanyl. It should be noted, that drug dealers who choose to use guns to further their unlawful activities subject themselves to longer prison terms when convicted.”
This matter was investigated by the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
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Dorchester Landlords and Property Manager Agree to Settle False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today a $57,000 settlement with two landlords and a property manager of three Dorchester apartments to resolve allegations they submitted false claims to the federal government after receiving impermissible excess rent payments from two low income tenants while participating in a federal housing subsidy program.
The Department of Housing and Urban Development provides federal funding through the Federal Housing Choice Voucher program, commonly referred to as “Section 8,” to assist low income individuals in securing safe housing. The funding is provided through vouchers that are administered by local public housing agencies. The housing subsidy, which may cover all or a portion of a tenant’s monthly rent, is paid directly to the landlord. As a condition for receiving the housing subsidy, the landlord contractually agrees not to charge the tenant rent in excess of the amount set by the public housing agency.
Despite this restriction, the landlords, Latchmin Nannan and David Nannan, and the property manager, Rhea Nannan, allegedly collected excess rent from two Section 8 tenants each month at various times between September 2006 and December 2015. Kafer Nevins, one of the two Section 8 tenants, first raised this allegation in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act.
“The Section 8 program provides precious funding for low income individuals to afford safe housing,” said United States Attorney Andrew E. Lelling. “We will hold landlords to their obligations under the program to ensure that Section 8 tenants will not be taken advantage of.”
“This office places a high priority on investigating allegations of waste, fraud and abuse related to HUD’s Public Housing Program,” said Christina Scaringi, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development. “Today’s settlement should serve as a warning to those willing to commit fraud involving HUD funded programs that we will pursue such cases to the fullest extent of the law,” she concluded.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The settlement agreement requires the defendants to pay $57,000 to the United States. Mr. Nevins will receive approximately $11,400 of the recovery in this case.
U.S. Attorney Lelling and HUD OIG SAC Scaringi made the announcement today. This case was handled by Assistant U.S. Attorneys Steven Sharobem and Elianna Nuzum of Lelling’s Office with the assistance of the United States Department of Housing and Urban Development’s Office of Inspector General.
District Man Sentenced to 15 ½ Years in Prison for Stabbing Two People in Southeast WashingtonRead the Press Release
WASHINGTON - Ulysses Goodine, 39, of Washington, D.C., was sentenced today to a 15 ½-year prison term for stabbing a man in Southeast Washington and then stabbing a woman who tried to stop the attack, U.S. Attorney Jessie K. Liu announced.
Goodine was found guilty by a jury in March 2018 of one count each of aggravated assault while armed and assault with significant bodily injury while armed, and two counts of assault with a dangerous weapon. The verdict followed a trial in the Superior Court of the District of Columbia. Goodine was sentenced by the Honorable Juliet McKenna. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 18, 2016, at approximately 10:45 p.m., Goodine got into an altercation with a 19-year-old man in in the 5000 block of D Street SE. The altercation followed a series of interactions between the two men that evening that had ranged from verbal exchanges to a friendly handshake. The chain of events ended with Goodine calling the victim over to him and stabbing him several times in the arm, shoulder, and back. The most severe wound – which penetrated the victim’s chest cavity and collapsed his lung – was delivered to the back, as the victim was attempting to run away. In addition to stabbing this victim, Goodine attacked a woman who tried to intervene by stabbing her in the hand.
Goodine was arrested on Oct. 21, 2016, and has been in custody ever since. At sentencing, the government noted that Goodine now has 15 convictions as an adult, including for offenses such as distribution of drugs and assaults.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the United States Park Police. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kathryn Rakoczy, Jennifer Kerkhoff, and Laura A. Bach; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialists Antoinette Sakamsa and Tierra Nanches; Litigation Technology Specialist Claudia Gutierrez, and Victim/Witness Security Specialists Debra Cannon and Lesley Slade.
Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Ellen D’Angelo and Maryam Adeyola, who investigated and prosecuted the case.
District Court Enters Permanent Injunction Against Mississippi Compounding Pharmacy and Two of its Officers to Prevent Distribution of Adulterated DrugsRead the Press Release
WASHINGTON – The U.S. District Court for the Northern District of Mississippi entered a consent decree of permanent injunction against defendants Delta Pharma, Inc. (Delta Pharma), its President, Dr. Tommy T. Simpson, and its Vice President and Pharmacist in Charge, Charles Michael Harrison, to prevent the distribution of adulterated drugs in violation of federal law, the Department of Justice announced today.
The entered permanent injunction stems from a complaint the Department filed in the U.S. District Court for the Northern District of Mississippi on June 4, 2018, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged, among other things, that the defendants distributed adulterated drugs in interstate commerce.
As part of the permanent injunction, defendants are enjoined from manufacturing, holding, or distributing any drugs manufactured from their facility unless they comply with specific remedial measures. Those measures include submitting a plan to FDA, which will provide for an independent expert to conduct inspection(s) of defendants’ facility and ensuring that defendants implement all recommended corrective actions. In addition, the defendants must report to FDA the actions they have taken to correct all insanitary conditions and deviations from current good manufacturing practice brought to their attention by the FDA or defendants’ expert. The permanent injunction provides that defendants cannot resume manufacturing, holding, and distributing such drugs until FDA notifies them in writing that they appear to be in compliance with the ordered remedial measures.
“Compounding pharmacies have a responsibility to ensure that they process and label drugs in a manner that ensures the safety and quality of such drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to ensure that doctors and patients can rely on the drug safety protections in federal law.”
“The Food, Drug, and Cosmetic Act is designed to protect the American people,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “This civil action demonstrates our commitment to enforce laws designed to protect the health and safety of the American public.”
According to the complaint filed by the Department, defendants’ drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. The complaint also alleged that defendants’ drugs were adulterated because defendants failed to comply with current good manufacturing practice requirements.
FDA conducted an inspection of Delta Pharma in February 2017. According to the complaint, FDA investigators observed and documented numerous insanitary conditions, including the use of fifty-foot-long tubing to process purportedly sterile drugs, without determining whether the procedures for sterilizing the tubing are effective or assessing the tubing’s compatibility with the drug products to ensure that chemicals or particulates from the tubing do not leach, interact, or otherwise contaminate such drug products.
In addition, the complaint alleges that during the 2017 inspection, FDA documented numerous deviations from current good manufacturing practice requirements for drugs, including defendants’ failure to establish and follow appropriate written procedures that are designed to prevent microbiological contamination of drug products purporting to be sterile. According to the complaint, the FDA also documented that defendants failed to thoroughly review and investigate any unexplained discrepancy or the failure of a batch or any of its components to meet any of its specifications; and failed to establish an adequate quality control unit that has the responsibility and authority to approve or reject all components, drug product containers, closures, in-process materials, packaging material, labeling, and drug products, and has the authority to investigate any errors that may have occurred.
The consent decree of permanent injunction also resolved allegations in the complaint filed by the Department that the defendants distributed misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The government is represented by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney John Gough of the U.S. Attorney’s Office for the Northern District of Mississippi, with the assistance of Associate Chief Counsel Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Mississippi, visit its website at https://www.justice.gov/usao-ndms.
Delevan Man Sentenced to More Than 20 Years in Prison on A Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John P. Cutler, 35, of Delevan, NY, who was convicted receipt of child pornography following a prior conviction, was sentenced to serve 262 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between July 2016 and September 26, 2016, the defendant searched for and downloaded images and videos of child pornography online. Cutler saved the child pornography on a laptop computer. A forensic examination of the computer revealed approximately 1875 images and 199 videos of child pornography. Some of the images and videos depicted prepubescent minors as well as depictions of violence against the minors.
The defendant was previously convicted in New York State Court of committing a Criminal Sexual Act in the Second Degree.
Today’s sentencing is the result of an investigation by agents of the Federal Bureau of Investigation, under the direction of Gary Loeffert, Special Agent-in-Charge, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
Delaware Businessman Sentenced to Prison for Tax CrimesRead the Press Release
Wilmington, Del. – David C. Weiss, United States Attorney for the District of Delaware announced today that Jeffrey Minner, age 55, was sentenced to 18 months in prison by U.S. District Court Judge Gregory Sleet. In addition, Minner was ordered to pay $1,223,660 in restitution to the IRS.
According to statements made at the sentencing hearing and documents filed in court, Minner owned and operated Advanced Enterprises Incorporated, a commercial cleaning company that employed between 140 and 185 employees at any given time. Minner pled guilty to withholding taxes from his employees but failing to pay those monies over to the Internal Revenue Service (“IRS”).
Over the course of five years between 2011 and 2016, Minner collected in excess of $1.2 million in employee Medicare, Social Security, and income taxes that he did not pay over to the IRS. Instead, Minner used a portion of those monies to fund his lifestyle and pay off other debts.
In sentencing Minner to prison, U.S. District Court Judge Gregory Sleet said, “I hope this sentence will promote a greater respect for the law.”
U.S. Attorney Weiss added, “The U.S. Tax Code operates on a system of voluntary compliance. Not only will this sentence deter others who might consider diverting employee tax obligations to line their own pockets, but it represents justice for every tax-paying citizen.”
The case was prosecuted by Assistant U.S. Attorneys Whitney C. Cloud and Alexander P. Ibrahim and investigated by special agents from IRS Criminal Investigation.
DOJ Reaches Settlement with Washington Health Care Authority to Improve Services to Patients Who are Deaf or Hard of HearingRead the Press Release
The U.S. Department of Justice, working through the U.S. Attorney’s Office, and the Washington Health Care Authority (HCA) today entered into a settlement designed to improve important interpreter services for low income patients with hearing disabilities, announced U.S. Attorney Annette L. Hayes. The settlement calls for HCA to vastly increase the number of sign language interpreters it has available to attend Apple Health Plan (Medicaid) medical appointments and interpret for patients who are hearing impaired and/or their companions. Under the terms of the settlement, the number of interpreters under contract statewide will be increased from fewer than ten to more than 100.
“The ability of people with hearing disabilities to fully understand and thus participate in their medical care is a fundamental right protected by federal law,” said U.S. Attorney Annette L. Hayes. “Healthcare providers, and state agencies involved in healthcare, must ensure that their services are provided in a manner that does not exclude people with disabilities.”
An investigation by the U.S. Department of Justice, led by the U.S. Attorney’s Office for the Western District of Washington, revealed that since 2012, HCA’s Interpreter Services Program has contracted with CTS LanguageLink to provide interpreter services for medical appointments. However, during the term of that five year contract, CTS LanguageLink only had between zero and eight sign language interpreters available for Apple Health appointments state-wide, with no sign language interpreters available in most counties. This resulted in fewer than 30% of all requests for interpreter services being fulfilled. As a result, appointments with medical professionals were often cancelled or rescheduled when no interpreter was available. In some instances the appointments went forward with inferior means of communicating with the patient or their caregiver. The investigation concluded that HCA was violating the Americans with Disabilities Act because it failed to ensure that the Medicaid benefits of the Apple Health program were being provided equally to qualified individuals with disabilities.
Under the terms of the settlement, by July 1, 2018, HCA will contract with an interpreter service provider that has at least 100 sign language interpreters statewide. By April 2019, HCA will need to show an appointment fulfillment rate of at least 90 percent. If any region of the state falls short of that requirement, the settlement calls for HCA to take specific steps to recruit additional sign language interpreters.
The settlement also calls for immediate relief for the interpreter shortfalls by requiring HCA to permit healthcare providers to immediately obtain their own ASL interpreter for healthcare appointments outside of the HCA system and receive reimbursement by HCA for those services. The settlement also calls for HCA to use the Apple Health website and other communications tools to inform patients of their rights to interpreter services along with a grievance procedure if they believe their rights have been violated.
The agreement will be in force for three years and during that time the HCA will collect data on requests and fulfillment for sign language interpreting. The data will be provided to the U.S. Attorney’s Office, Western District of Washington on a quarterly basis so that the Department of Justice can ensure services are being provided as required.
Assistant United States Attorney Christina Fogg led the investigation and negotiated the settlement.
Convicted Felon Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Lucas, aka B-Wise, 39, of Buffalo, NY, who was convicted of being a felon-in- possession of a firearm, was sentenced to serve 48 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on October 25, 2015, a New York State search warrant was executed at the defendant’s Busti Avenue residence in Buffalo. Officers recovered a .22 caliber semi-automatic rifle.
Lucas was convicted in 2003 of a felony charge in state court and as a result was prohibited from legally possessing a firearm.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Claims Specialist at Social Security Administration Arrested on Fraud and Identity Theft Charges for Allegedly Misappropriating at Least $680,000 in Fraudulent BenefitsRead the Press Release
CHICAGO — A claims specialist for the U.S. Social Security Administration has been indicted on federal fraud and identity theft charges for allegedly approving and pocketing at least $680,000 in fraudulent benefits.
ANNE AROSTE, also known as “Ann Aroste,” worked as a claims specialist at the SSA’s field office in Aurora. Aroste was responsible for processing applications for Social Security benefits via the agency’s electronic records system. According to the indictment, Aroste created fraudulent applications for benefits on the Social Security earnings records of deceased workers. She then used her employee credentials to approve the applications and to route the payments to bank accounts she controlled, the indictment states.
From 2013 to last month, Aroste caused the U.S. Treasury Department to issue at least $680,962, in fraudulent payments, the indictment states.
The indictment charges Aroste, 42, of Montgomery, with five counts of wire fraud and five counts of aggravated identity theft. She was arrested this morning and pleaded not guilty at an afternoon arraignment before U.S. Magistrate Judge Daniel G. Martin. A detention hearing is set for June 13, 2018, at 11:00 a.m., before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tracey Thanos, Special Agent-in-Charge of the Social Security Administration’s Office of Inspector General in Chicago; and Benjamin Sides, Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
The indictment describes five instances in which Aroste allegedly caused an application for Social Security benefits to be submitted in the names of individuals whom Aroste falsely claimed had been married to deceased workers. Aroste used her employee credentials to approve the fraudulent applications for survivor’s benefits based on the Social Security earnings of the deceased workers, the indictment states. The Treasury then transmitted the benefit payments into Aroste’s bank accounts.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison, while each count of aggravated identity theft carries a mandatory, consecutive prison sentence of two years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Special Assistant U.S. Attorney Jared C. Jodrey.
Bangor Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that David Jack, 44, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 10 years in prison and 15 years of supervised release for possessing child pornography. Jack pleaded guilty on January 26, 2018.
According to court records, in the summer of 2016, the defendant, while living in Bangor, used his cellular telephone to show images of children engaged in sexual activity to a 9-year-old girl. Shortly thereafter, detectives with the Bangor Police Department obtained a search warrant for the defendant’s home and seized two laptop computers and a cellular telephone. A forensic examination of those devices revealed over two thousand images of children, many of them prepubescent, engaged in sexually explicit conduct.
The case was investigated by the Bangor Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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.
Albany Man Sentenced to 210 Months for Producing Child PornographyRead the Press Release
ALBANY, NEW YORK – Brennan McNeil, age 26, of Albany, was sentenced today to 210 months in prison for sexually exploiting a child for the purpose of producing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea on March 5, McNeil admitted that, in early 2017, he produced a video of a 10-year-old child being subjected to sexually explicit conduct. McNeil produced the video in North Carolina, where he lived at the time, and saved it on a thumb drive that he brought with him when he moved, in May 2017, from North Carolina to New York
Senior United States District Judge Thomas J. McAvoy also sentenced McNeil to a life term of post-imprisonment supervised release. McNeil must also register as a sex offender upon his release from prison.
This case was investigated by the FBI, the Colonie Police Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Katherine Kopita.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Albany Attorney Admits to Stealing from Elderly Clients in $11.8 Million Estate FraudRead the Press Release
ALBANY, NEW YORK – Richard J. Sherwood, age 58, of Guilderland, New York, pled guilty today to money laundering and tax crimes, and admitted his role in stealing approximately $11.8 million from estates for which he served as an attorney and fiduciary.
The announcement was made by United States Attorney Grant C. Jaquith; New York Attorney General Barbara D. Underwood; Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
Sherwood also pled guilty today, in Albany County Court, to grand larceny in the second degree, in a case brought by the New York Attorney General’s Office.
United States Attorney Grant C. Jaquith stated: “Richard Sherwood betrayed his clients and his profession when he stole $11.8 million from their estates. His elderly clients, including one who suffered from dementia, planned to continue their philanthropy after their deaths by using their estates to support churches, charities, and civil organizations. Instead of carrying out their wishes, as he was required to do by both legal and ethical obligations, Sherwood used his legal skills to divert and steal their money. Any lawyer preying on elders should take notice that criminal conduct by attorneys will be aggressively investigated and prosecuted to the fullest extent of the law.”
New York Attorney General Barbara D. Underwood said: “New Yorkers should be able to trust that their financial advisors will make sound decisions – not scheme to line their own pockets. We will continue to hold accountable those that try to game the system and violate the public trust.”
Sherwood, an attorney since 1988, practiced primarily in the area of trusts and estates. Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.
Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.
In pleading guilty, Sherwood admitted that after Pauline Bruggeman’s death, he and another person conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013. Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.
FBI Acting Special Agent in Charge Janelle M. Miller stated: “Richard Sherwood abused his position and defrauded clients who trusted him with their life savings. This is a case about greed and abuse of trust. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and prosecuted. Mr. Sherwood will now face serious consequences for his fraudulent actions.”
IRS-CI Special Agent in Charge James D. Robnett stated: “Richard Sherwood was entrusted to ensure the financial security of these innocent victims but instead chose to utilize his profession to unjustly enrich himself. Attorneys who abuse their fiduciary responsibilities and commit their own financial crimes must be held responsible.”
Sherwood admitted that he and a co-conspirator stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and the conspirator controlled. Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake in Galway, New York.
Sherwood’s co-conspirator is presumed innocent unless and until proven guilty.
Sherwood admitted that he and the co-conspirator induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and the co-conspirator to transfer Bruggeman/Urban assets to themselves. Sherwood and his co-conspirator also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.
Sherwood also pled guilty to filing false federal tax returns in 2013 and 2015. These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme.
Sherwood faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced by Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Sherwood has agreed to forfeit $3,742,211.65 that the United States Attorney’s Office and FBI have already seized from him, as well as the residence on Galway Lake that had previously belonged to the Bruggemans.
Sherwood served as Guilderland Town Justice from 2014 until his arrest, on state charges, on February 23, 2018. He resigned his position on March 5.
The federal case is being investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Assistant U.S. Attorney Tamara B. Thompson is prosecuting the forfeiture aspects of this case.
The state case is being prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Daniel G. Cort and Deputy Bureau Chief Stacy Aronowitz. The Criminal Justice Division is led by Executive Deputy Attorney General Margaret Garnett.
The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam. The Investigations Bureau is led by Chief Dominick Zarrella. Meaghan Scovello, Associate Forensic Auditor, provided the financial analysis. The Forensic Audit Section is supervised by Edward Keegan. Senior Analyst Sara Pogorzelski assisted in the investigation.
Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
SIOUX FALLS, SD – Attorney General Jeff Sessions and U.S. Attorney for the District of South Dakota Ron Parsons announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis. The official announcement was made on June 4, 2018, the 500th day of the Trump Administration.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
In the District of South Dakota, one of these additional AUSAs will focus on violent crime and one on civil enforcement of laws regulating the use and distribution of prescription opioids. In addition to these newly created positions, the District of South Dakota has already added two AUSAs to its Pierre office this year who will focus on prosecuting crimes committed in Indian Country, and is in the process of hiring an AUSA for its Rapid City office to prosecute drug crime.
“We are grateful to the Administration for this demonstrated commitment to reducing violence, drug trafficking, and overdose deaths,” said U.S. Attorney Parsons. “Under the leadership of Attorney General Sessions, we are working as hard as we can every day to help make every community in South Dakota a safer place to live.”
74 Arrested in Coordinated International Enforcment Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Memphis, TN – Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:
• Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
• Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
• Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
• Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
The BEC scam is related to other forms of fraud such as:
• “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
• “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
• “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
• “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
• “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit:www.ic3.gov/media/2018/180611.aspx
74 Arrested in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
- Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
- Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
- Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
The BEC scam is related to other forms of fraud such as:- “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
- “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
- “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
- “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
- “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx74 Arrested in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“The deceptive and illicit practices that drive cyber fraud schemes have no place in our South Florida community,” stated U.S. Attorney Benjamin Greenberg for the Southern District of Florida. “Shell companies, money mules, email account takeovers and wire fraud disrupt legitimate businesses and have devastating financial consequences for the victims. A lifetime of savings can disappear with a keystroke. We remind everyone to be vigilant, to protect your personal identifying information and to be extremely cautious of cyber-scams.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell, U.S. Postal Inspection Service. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm. The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
- Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
- Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
- Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
- The BEC scam is related to other forms of fraud such as:
- “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
- “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
- “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
- “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
- “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx
An indictment, criminal complaint, and information sets forth a formal charge against a defendant. Under the law, that charge is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm. The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
Saturday 9 June 2018
Arizona Man Arrested for Threatening Harvard Black Commencement Attendees in 2017Read the Press Release
BOSTON – An Arizona man was arrested last night in connection with posting threats to bomb Harvard and shoot attendees at the Black Commencement event held on May 2017.
Nicholas Zuckerman, 24, was indicted on two counts of transmitting in interstate and foreign commerce a threat to injure the person of another. Zuckerman was arrested last night and will appear in federal court in Boston at a later date.
On or about May 13, 2017, Zuckerman allegedly commented on a post published to Harvard University’s Instagram account, saying: “If the blacks only ceremony happens, then I encourage violence and death at it. I’m thinking two automatics with extendo clips. Just so no nigger gets away.” It is further alleged that on that same date, Zuckerman posted a comment to another Harvard Instagram post, saying: “#bombharvard and end their pro-black agenda.” Several minutes later, Zuckerman allegedly commented “#bombharvard” on other users’ posts approximately 11 times over a span of four minutes.
A concerned citizen who saw the posts reported them to the Harvard University Police who ultimately referred the case to federal authorities.
The charge of transmitting in interstate and foreign commerce a threat to injure the person of another of provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling, Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division, and Harvard University Chief of Police Francis D. Riley made the announcement today. Assistant U.S. Attorneys Anne Paruti of Lelling’s Major Crimes Unit and Scott Garland of Lelling’s National Security Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Friday 8 June 2018
White River Man Indicted for Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Roy Brushbreaker, III, age 24, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 28, 2017, Brushbreaker knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charge is merely an accusation and Brushbreaker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brushbreaker was released on bond pending trial. A trial date has not been set.
Wellpinit Man Sentenced to 60 Months for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Bazil N. Peone, age 31, of Wellpinit, Washington, was sentenced after having pleaded guilty on February 15, 2018, to possession with intent to distribute five grams or more of pure methamphetamine. United States District Judge Stanley A. Bastian sentenced Peone to a 60-month term of imprisonment, to be followed by a five-year term of court supervision after he is released from Federal prison.
According to information disclosed during court proceedings, Kalispel Tribal Police officers received information that someone was residing without permission at an apartment in Airway Heights, Washington. On October 26, 2017, the officers entered the apartment with a key, encountered the lone occupant, Peone, and arrested him. After obtaining a warrant to search the apartment, officers seized 74 grams of heroin, 44.5 grams of pure methamphetamine, 4.8 grams of cocaine, psilocybin mushrooms, scales, distribution supplies, drug paraphernalia, drug ledgers, several firearms and rounds of ammunition, and two ballistic vests.
Joseph H. Harrington said, “Prosecuting drug crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. Individuals who engage in the illegal distribution of controlled substances should be aware that there are serious criminal penalties connected with drug distribution and that this Office is committed to prosecuting aggressively drug and firearm-related cases in the Eastern District of Washington.”
This case was investigated by the Kalispel Tribal Police, the Bureau of Indian Affairs, and the Spokane Resident Office of the United States Drug Enforcement Agency. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
U.S. Attorney and District Attorney General Announce Federal and State Charges Related to Death of Dickson County Sheriff's DeputyRead the Press Release
In a joint announcement, Attorney General Jeff Sessions and U.S. Attorney Don Cochran announced federal charges against Steven J. Wiggins, 31, of Dickson, Tennessee, following an announcement by District Attorney General Ray Crouch that Wiggins, along with Erika Castro-Miles, 38, also of Dickson, had been indicted for the murder of Dickson County Sheriff’s Sergeant Daniel Baker.
Wiggins was charged in a criminal complaint yesterday afternoon with violations of four federal statutes, including carjacking resulting in the death of Sergeant Baker. The criminal complaint also charges Wiggins with using, carrying and discharging a firearm during the commission of a crime of violence; being a convicted felon in possession of a firearm; and using, carrying and discharging a firearm during a crime of violence, which resulted in the death of another person.
“At the Department of Justice, we back the women and men in blue. Violence against law enforcement officers – federal, state, local or tribal – will not be tolerated,” said Attorney General Sessions. “Sergeant Daniel Baker served our country and the people of Tennessee faithfully and honorably, first as a Marine and then as a member of the Dickson County Sheriff’s Office, before he was killed in the line of duty. The Department of Justice will hold those responsible for his murder accountable to the fullest extent of the law.”
U.S. Attorney Don Cochran, joined by District Attorney General Ray Crouch; Dickson County Sheriff Jeff Bledsoe; and the leadership of local, state and federal law enforcement, made a joint announcement of state and federal charges at a morning news conference in Dickson, Tennessee.
“We stand here in absolute solidarity to say to anyone who commits an act of violence against a law enforcement officer, particularly if you kill or seriously injure one of our men and women in blue, you will face the full force and effect of our justice system and we will be unrelenting in our unified efforts to bring you to justice – just as we have done here,” said U.S. Attorney Cochran.
District Attorney General Ray Crouch announced that a grand jury in Dickson, Tennessee had returned indictments on Wednesday, charging Steven Wiggins and Erika Castro-Miles with the murder of Sergeant Daniel Baker. U.S. Attorney Don Cochran then announced the federal charges brought yesterday against Steven Wiggins.
“Yesterday, a Dickson County grand jury, sitting in special session, returned indictments charging Steven Wiggins and Erika Castro-Miles with the willful and premeditated murder of Sergeant Daniel Baker,” said District Attorney General Ray Crouch. “I look forward to seeking justice on behalf of his family and this community.” I am grateful for the support of the United States Attorney and will work with all of our partners at every level until justice is achieved.”
The complaint alleges that on May 30, 2018, Sergeant Daniel Baker responded to a suspicious vehicle call in Dickson County, Tennessee. Upon arrival, Sergeant Baker encountered two individuals in a vehicle, later identified as Steven J. Wiggins, the driver, and Erika Castro-Miles, the front passenger. The vehicle had a flat tire and was not drivable. Sergeant Baker subsequently determined that the vehicle had been stolen and ordered both occupants out of the car. Wiggins then claimed his door would not open and Sergeant Baker ordered him to exit from the passenger side. According to the body cam video recovered from Sergeant Baker, he then walked around the rear of the vehicle to the passenger side, at which time Wiggins initially fired approximately five rounds from a .45 caliber pistol, Sergeant Baker was struck by at least one of those rounds and attempted to take cover before collapsing several yards away. While Sergeant Baker was lying wounded on the ground, Wiggins fired five additional rounds, the last three appearing to have been fired at close range. Initial autopsy findings showed that Sergeant Baker suffered six gunshot wounds; two to his torso; one to his hand and three to the left side of his head.
The complaint also alleges that after shooting Sergeant Baker, Wiggins re-positioned Baker’s patrol car and dragged Sergeant Baker’s body to the car and placed it in the rear seat and drove away. Wiggins then drove the patrol vehicle three to four miles away and into a field near the intersection of Bear Creek Valley Road and Byrd Road, in Dickson County, where he set a fire inside the vehicle and left the scene.
The complaint further alleges that at the time Wiggins was captured by the Tennessee Highway Patrol on June 1, 2018, his backpack contained a .45 caliber pistol and a Glock pistol.
Subsequent investigation by the Tennessee Bureau of Investigation and the ATF determined that shell casings found at the scene where Sergeant Baker was shot matched the .45 caliber weapon and that the Glock recovered from Wiggins’ backpack had been previously purchased by Sergeant Baker’s wife.
Finally, the complaint alleges that Wiggins had previously been convicted of aggravated assault, a Class C felony, in December 2017 in Williamson County, Tennessee, and had previously been convicted of domestic violence in Dickson County, Tennessee, in 2009. Each of these convictions prohibits Wiggins from possessing a firearm.
U.S. Attorney Cochran praised the work of the Dickson County Sheriff’s Department, District Attorney General Ray Crouch; the Tennessee Bureau of Investigation; the ATF; the Tennessee Highway Patrol; the FBI; and the numerous local, state and federal agencies who participated in the investigation, search and ultimate capture of Wiggins. U.S. Attorney Cochran and Assistant U.S. Attorney Robert McGuire are prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Two Members of “Central Divisadero Players” Gang Sentenced to Multiple Life Sentences for Murder and PimpingRead the Press Release
SAN FRANCISCO – Charles Heard (aka “Cheese”), and Jaquain Young (aka “Loc”), were sentenced today to multiple terms of life in prison, announced Acting United States Attorney Alex Tse and FBI Special Agent in Charge John F. Bennett. The sentences were handed down by the Honorable William Orrick, U.S. District Judge.
Heard, 33, and Young, 44, as well as co-defendants Adrian Gordon (aka “Tit”), 29, Esau Ferdinand (aka “Sauce”), 35, and Monzell Harding, Jr., 26, were each convicted of racketeering charges by a federal jury on March 5, 2018. The verdict followed a 14-week trial in which the jury heard evidence about the San Francisco gang referred to as Central Divisadero Players, often referred to as Central Divis Playas or CDP.
“The multiple life sentences handed down today is the just punishment under the law for the proven heinous crimes of violence,” said Acting U.S. Attorney Tse. “This office will zealously advocate for the strongest sentences in these gang related crimes to vindicate the rights of victims and protect our community against crimes of violence.”
Heard was convicted of murdering Andre Helton and Isiah Turner in a double-homicide that took place on August 14, 2008, near the University of San Francisco. He was also convicted of racketeering conspiracy.
Young was convicted of murdering Andre’s brother, Jelvon Helton, at the Gravity bar in the Marina District of San Francisco on November 1, 2010. In addition, Young was convicted of racketeering conspiracy, as well as separate pimping charges – including attempting to entice and persuade a minor to engage in prostitution between August 9, 2012, and March 11, 2013.
Judge Orrick sentenced Heard to four life sentences for the murders of Turner and Andre Helton. He sentenced Young to three life sentences for the murder of Jelvon Helton and one life sentence for the attempted pimping of a minor, plus a ten-year sentence to run consecutively for a related firearms charge. Judge Orrick also sentenced Young to 20 years in prison (the statutory maximum) for attempting to persuade an individual to travel for prostitution.
The defendants currently are in custody and will begin serving their sentences immediately. Defendants Ferdinand, Gordon, and Harding will be sentenced on June 29, 2018. Any sentence for these individuals will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gordon, Heard, Ferdinand, Young, and Harding, were the first five defendants to stand trial for crimes alleged in an eleven-defendant, 22-count second superseding indictment filed on August 14, 2014. The indictment described CDP as a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect power, territory, reputation, and profits of the enterprise through the use of intimidation, violence, assaults, and murder. During the trial, the jury heard evidence that the five defendants, all from San Francisco, each played a role in the racketeering conspiracy whose crimes ranged from murder to pimping. The jury concluded that the five defendants were guilty of the following specific crimes:
Defendant Found Guilty of the Following Charges Maximum Penalties
All Five Defendants
Racketeering conspiracy
in violation of 18 U.S.C. § 1962(d)
Life in prison and a $250,000 fine
Racketeering, including murder,
in violation of 18 U.S.C. § 1962(d)
Life in prison and a $250,000 fine
Gordon
Attempted racketeering murder of Victim 3 on May 20, 2011,
in violation of 18 U.S.C. § 1959(a)(5)
10 years in prison and a $250,000 fine
Racketeering assault with a dangerous weapon May 20, 2011,
on Victim 3, in violation of 18 U.S.C. § 1959(a)(3)
20 years in prison and a $250,000 fine
Use, carry, brandishing, or discharge of a firearm during a crime of
violence during the May 20, 2011, assault with a deadly weapon
of Victim 3, in violation of 18 U.S.C. § 924(c)
10 years in prison (mandatory minimum) consecutive to term of imprisonment for other offenses
Heard
Racketeering murder of Andre Helton on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Life in prison (mandatory minimum) and a $250,000 fine
Racketeering murder of Isiah Turner on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Life in prison (mandatory minimum) and a $250,000 fine
Use of a firearm in aid of the August 14, 2008, racketeering murders of Andre Helton and Isiah Turner, in violation of 18 U.S.C. § 924(j)(1)
Life in prison and a $250,000 fine
Young
Racketeering murder of Jelvon Helton on November 1, 2010, in violation of 18 U.S.C. § 1959(a)(1)
Life in prison (mandatory minimum) and a $250,000 fine
Use, carry, brandishing, or discharge of a firearm in connection with November 1, 2010, murder in aid of racketeering of Jelvon Helton, in violation of 18 U.S.C. § 924(c)
10 years in prison (mandatory minimum) consecutive to term of imprisonment for other offenses
Use of a firearm in aid of the November 1, 2010, racketeering murder of Jelvon Helton, in violation of 18 U.S.C. § 924(j)(1)
Life in prison and a $250,000 fine
Attempting to entice and persuade an individual to travel for prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(a)
20 years in prison and fine of $250,000
Attempting to entice and persuade a minor to engage in prostitution (from
August 9, 2012, to March 11, 2013),
in violation of 18 U.S.C. § 2422(b)
Life in prison (10 years mandatory minimum) and fine of $250,000
As described in the chart above, the jury concluded that Adrian Gordon attempted to murder Victim 3, that Charles Heard murdered Andre Helton and Isiah Turner, and that Jaquain Young murdered Jelvon Helton. The evidence at trial also demonstrated that the gang intimidated victims, potential victims, and community members through violence and threats of violence.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, and Bayview Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Two Essex County Men Found Guilty on Drug and Weapons ChargesRead the Press Release
NEWARK N.J. – Two Essex County, New Jersey, men charged with multiple drug and weapons offenses were convicted today on all counts, U.S. Attorney Craig Carpenito announced.
Jesse Tullies, 53, of Hillside, New Jersey, and Eugene Williams, 33, of Newark, were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated three hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.
During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, detectives recovered the following items:
- One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;
- One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing suspected cocaine base and cocaine;
- A 9mm Beretta NaNa semiautomatic handgun loaded with two rounds of 9mm ammunition;
- A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition;
- A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.
Laboratory testing confirmed that the substances recovered from under the rear bumper of the Chevrolet Lumina were heroin and crack cocaine.
Each of the drug counts on which the defendants were convicted carries a maximum penalty of 20 years in prison. The felon in possession of a weapon counts carry a maximum penalty of 10 years in prison. The use of a firearm counts carry a consecutive mandatory minimum of five years in prison and a maximum of life in prison. Sentencing is scheduled for Oct. 4, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John Devito in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Francisco Navarro of the National Security Unit and Elaine Lou of the Organized Crime/Gangs Unit in Newark.
Two Dominican Nationals Detained for Possession of Fraudulent Credit Card, ID Document Manufacturing EquipmentRead the Press Release
PROVIDENCE, RI – Two Dominican nationals were ordered detained in federal custody today after Pawtucket Police allegedly discovered them with a large array of equipment and materials used to produce fraudulent identification documents, credit cards and skimming equipment used to steal credit and debit card data.
Juan Josue Rodriguez-Castro, 35, and Wilberd Armando Reyes-Castro, aka “Jose M. Robels-Burgos,” 25, were arrested by Pawtucket Police on Wednesday when officers discovered the equipment after responding to a 911 emergency call for an alleged home invasion at the men’s residence.
United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves and Resident Agent in Charge of the United States Secret Service Brian Deck announce the filing of a federal criminal complaint charging Rodriguez-Castro and Reyes-Castro with possession of equipment to produce fraudulent credit cards and possession of equipment to produce fraudulent identification documents.
According to documents filed in U.S. District Court, it is alleged that on June 6, 2018, Pawtucket Police received a 911 emergency call reporting a home invasion in progress. The caller stated that she was in video communication with a person inside an apartment where a home invasion was occurring, and that she saw a struggle and heard someone inside the apartment state that someone had a firearm.
Upon arrival at the residence, Pawtucket Police detained three individuals as they fled out a rear door. It is alleged that jewelry and a watch belonging to individuals inside the apartment were located on the individuals detained by the officers. Officers then entered the apartment to search for the firearm allegedly used in the robbery.
Inside the apartment, officers encountered the occupants and observed in the dining room a large amount of computer equipment, including a lap top, color printers, a laminating machine and a shredder. The officer also saw a box addressed to Juan Rodriguez which contained a home-made ATM-style card reader and a DHL package containing American Express signature stickers similar to those used on the backs of credit cards. In a trash barrel, an officer observed an American Express card, and a Connecticut driver’s license. A Pawtucket Police officer conducted a query of the Connecticut driver’s license number and learned that there was no record of that number on file.
Based on the discovery of these items, the Pawtucket Police applied for and obtained a court-authorized search warrant. The execution of the search warrant resulted in the seizure of a mountain of materials used to fraudulently produce identification documents and credit cards as well as skimming equipment used to fraudulently obtain credit and debit card data of unsuspecting individuals.
The items seized by police included at least 7 laptops, skimming equipment used to steal credit and debit card information at gas pumps, a mobile credit card reader, the apparent inside of an ATM machine, a photo ID card printer, numerous flip phones, a laminating machine, color printers, numerous flash drives, other card readers, card scanners, blank checks, boxes of identification holograms used to make driver’s licenses from the states of Wyoming, Georgia, Indiana, New Jersey, Louisiana, North Carolina, South Carolina, Kentucky, Mississippi, Ohio, Pennsylvania, Florida, Tennessee and Connecticut, 3 Dominican passports in the names of other individuals, numerous blank credit cards with chips, paper cutter, color ribbons and numerous other items commonly used in the creation of fraudulent identification documents and access devices.
Reyes-Castro and Rodriguez-Castro made initial appearances in federal court today and were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond. Immigration detainers have been lodged against both defendants by Immigration and Custom Enforcement.
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 Lee H. Vilker.
The matter is being investigated by the Pawtucket Police Department, United States Secret Service and Homeland Security Investigations.
###
Two Defendants in the Baltimore Police Department GTTF Racketeering Case Sentenced to Seven Years in PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced former Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland, and former Detective Maurice Kilpatrick Ward, age 36, of Middle River, Maryland today for racketeering conspiracy. Hendrix was sentenced to seven years in prison, followed by three years of supervised release. Ward was also sentenced to seven years in prison, followed by three years of supervised release. Hendrix and Ward were formerly members of the Baltimore Police Department’s Gun Trace Task Force (“GTTF”).
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreements, Hendrix and Ward admitted to participating in four robberies from February through August. Hendrix and Ward also admitted that they were armed with their Baltimore Police Department (BPD) service firearms during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offenses, and that they authored false and fraudulent incident reports and other official documents in some cases in order to conceal their criminal conduct and otherwise obstruct justice.
For example, on February 17, 2016, Ward and one of his co-defendants stole $500 from an arrestee. Ward then authored a false BPD incident report to conceal the robbery.
On March 22, 2016, Hendrix and Ward admitted that they, along with two of their co-defendants, robbed a safe they found in the basement of a house they were searching, stealing more than $200,000 in the basement of a house they were searching.
Similarly, on June 24, 2016, while executing a search warrant in a home, Hendrix stole money and later, after the search, gave a portion of it to Ward.
On August 24, 2016, Hendrix stole money from an arrestee and then gave a portion of the cash to Ward.
Hendrix and Ward also admitted that they and their co-defendants routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Ward, Hendrix and their co-conspirators falsely certified that they worked their entire regularly assigned shifts, when they did not, and that they worked additional hours for which they received overtime pay, when they had not worked all and in some cases any of those overtime hours.
According to their plea agreements, Hendrix and Ward also admitted that they submitted false and fraudulent overtime reports on behalf of their co-defendants, with their co-defendants’ knowledge and at their direction, and that their co-defendants submitted false and fraudulent overtime reports on their behalf in return. They both admitted that the practice at the GTTF was that if a sub-set of the GTTF had a gun arrest, all members of the GTTF, regardless of whether they had actually participated in the arrest, would submit individual overtime reports, as if they did, and receive salary and overtime for it.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
Two Charged in Shooting of ATF AgentRead the Press Release
HAMMOND – Blake King, age 19, of Chicago and Bernard Graham, age 25, of Calumet City were charged today by criminal complaint, announced U.S. Attorney Kirsch.
Both were charged by criminal complaint with the following charges:
- Forcibly assaulting, opposing, impeding, intimidating and interfering with Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives while they were engaged in the performance of their official duties, by use of deadly and dangerous weapons and infliction of bodily injury, and
- Using and carrying a firearm during and in relation to, and possessing in furtherance of a crime of violence, a firearm that was discharged.
According to documents in this case, during an undercover operation with ATF in the City of Gary, the individuals identified in this press release fired upon ATF Special Agents.
U.S. Attorney Kirsch stated, “Gun violence doesn’t stop at the state line and neither do government investigations. We will continue to coordinate with law enforcement and prosecutors in this jurisdiction and others including Northern Illinois to defeat these criminals. We will never tolerate gun violence and never stop doing all we can to defeat it.”
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 is being investigated by the ATF. Other agencies that assisted with the investigation were the FBI; DEA; Homeland Security Investigations; US Marshal’s Service; Indiana State Police; Gary Police Department; Hammond Police Department; East Chicago Police Department; Merrillville Police Department; Purdue University NW Police Department; Lake County Sheriff’s Office; Lake County Prosecutor’s Office and Indiana HIDTA. This case is being handled by Assistant U.S. Attorneys Thomas Mahoney and Nicholas Padilla.
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Toledo man indicted for selling heroin that resulted in fatal overdoseRead the Press Release
A Toledo man was indicted in federal court for selling heroin that resulted in a fatal overdose last year, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Harold Sasse, 41, was indicted on one count of possession with intent to distribute a controlled substance resulting in death.
Sasse sold heroin on March 29, 2017 to two people, identified in court documents as E.M. and T.W. Sometime between that day and March 30, 2017, E.M. ingested the heroin and died, according to the indictment.
“Every death represents someone’s son or daughter, friend or neighbor,” said U.S. Attorney Justin Herdman. “We will seek prison sentences for those who profit off this epidemic while working to prevent future tragedies and getting help for those who want treatment.”
"Overdoses have killed far too many Americans,” said FBI Acting Special Agent in Charge Jeff Fortunato. “The FBI, in collaboration with the Toledo Police Department, is avidly committed to holding those like Harold Sasse accountable for selling the deadly drugs which are killing our fellow citizens."
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and the Toledo Police Department. It is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Three Men Plead Guilty to Charges in 2015 Slaying of Man Near Shaw/Howard Metro StationRead the Press Release
WASHINGTON – Three men, all from Washington, D.C., pled guilty today to charges stemming from the August 2015 slaying of Matthew Shlonsky, an innocent bystander who was shot on a crowded street in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Andre Dudley, 22, Marcus King, 22, and Christopher Proctor, 28, pled guilty to one count of voluntary manslaughter while armed and two counts of assault with a dangerous weapon. Dudley also pled guilty to a charge of attempted assault with a dangerous weapon stemming from a jailhouse stabbing. The pleas took place in the Superior Court of the District of Columbia.
Dudley’s plea, which is contingent upon the Court’s approval, calls for Dudley to be sentenced to an agreed-upon 18 ½-year prison term for the shooting and an additional 22 months for the jailhouse stabbing, for a total of 20 years and four months of incarceration. King’s plea calls for an agreed-upon sentence of 15 to 20 years, and Proctor’s plea calls for an agreed-upon term of 12 to 14 years. The Honorable Juliet McKenna scheduled sentencing for Aug. 13, 2018. All three defendants remain held pending the sentencing hearing.
According to the government’s evidence, King and Proctor both associated with the Ninth Street neighborhood of Northwest Washington. On Saturday, Aug. 15, 2015, at approximately 4:45 p.m., King and Proctor were standing near a liquor store at the intersection of Seventh and S Streets NW, both armed with firearms. Dudley, meanwhile, drove to the area of Seventh and S in a red Chrysler 300 sedan. While stopped at the intersection of 8th and S Streets, Dudley got into an argument with Ninth Street crew members. One pulled out a gun, and Dudley pulled out his gun as well. King and Proctor were both nearby, and Proctor yelled out to other crew members to find out the identity of the person in the red car.
Dudley then turned from Eighth Street onto S Street and headed east. He adjusted his position so that his head and arms were outside the sunroof. He then pointed his gun at individuals on the south side of S Street, near Seventh. King and Proctor both fired shots at Dudley as he crossed their path. King fired seven shots from a .40-caliber semiautomatic firearm and Proctor fired 10 shots from a different .40-caliber semiautomatic. Dudley extended his arm out and fired several shots in the direction of King and Proctor.
Mr. Shlonsky, 23, had just gotten out of an Uber with friends and was heading to a concert at the Howard Theatre. He was walking in the 1800 block of Seventh Street NW, near the entrance to the Shaw/Howard Metro station, when one of the bullets from the shootout struck him in the chest. He was pronounced dead a short time later.
While King and Proctor were firing their weapons, a couple was walking on the sidewalk of the 700 block of S Street NW. The man and woman were each pushing strollers that had two young children inside each of them. Hearing the gunshots, the couple sprinted away; however, their proximity to the gunfire put them in the zone of harm.
While Dudley drove east on S Street NW, his vehicle came head-to-head with a vehicle turning left on S Street NW, from Sixth Street, NW. Blocked, Dudley again lifted his head and arms out of the sunroof, pointed a gun at the driver, threatened to kill him, and yelled at him to move his car. Scared, the driver moved his vehicle and Dudley then continued across S Street; as he sped into the 1900 block of Fourth Street NW, another man yelled at Dudley to slow down. In response, Dudley slammed on the brakes, rolled down his window, pointed an imitation firearm at the man, which the man believed was an actual firearm, and fired shots in the general vicinity of the man. Dudley then left the area. Dudley pled guilty to two counts of assault with a dangerous weapon for these crimes.
As part of the plea agreement, Dudley admitted to his role in the May 17, 2018 stabbing of a fellow inmate at the District of Columbia Jail. The victim of that incident sustained non-life-threatening injuries.
In announcing the pleas, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI, including the FBI’s Cellular Analysis Survey Team, and the District of Columbia Department of Forensic Sciences.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Kimberley Nielsen, Laura Bach, and Jeffrey Nestler; former Assistant U.S. Attorney Shana Fulton; Paralegal Specialists Lornce Applewhite and Sharon Newman; Litigation Technology Specialist Leif Hickling, and Victim/Witness Advocate Marcia Rinker. Finally, they commended the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the case.
South Boston Man Arrested for Loansharking and Gambling ChargesRead the Press Release
BOSTON - A South Boston man was arrested today on loansharking and gambling charges.
Tam V. Nguyen, 50, was charged in an indictment with one count of conspiracy to collect extensions of credit by extortionate means and one count of operating an illegal gambling business.
According to the indictment, from April to August 2017, Nguyen conspired to collect an extension of credit from a victim. Nguyen also engaged in an illegal gambling business from September 2016 through August 2017.
As part of the same investigation, in August 2017, Vinh Quang Huynh, Quang PT Le, and Kim Nguyen, all of Dorchester, were charged with kidnapping, conspiracy to collect extension of credit by extortionate means, and operating an illegal gambling business. Ban “Bo” Tran was also charged with operating an illegal gambling business. On May 9, 2018, Le was sentenced to six years in prison, three years of supervised release and ordered to pay restitution of $6,300. In December 2017, Huynh pleaded guilty and is awaiting sentencing. The remaining defendants have pleaded not guilty and are pending trial.
The charge of conspiracy to collect extensions of credit by extortionate means provides for a sentence of no greater than 20 years in prison, three years of supervised release and fine of $250,000. The charge of operating an illegal gambling business provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William B. Evans; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Signature Healthcare to pay more than $30 million to resolve False Claims Act allegations related to rehabilitation therapyRead the Press Release
ATLANTA – Signature HealthCARE, LLC (“Signature”), a Louisville, Kentucky based company that owns and operates approximately 125 skilled nursing facilities, including facilities in Georgia, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled. Under the settlement agreement, Signature has agreed to pay more than $30 million.
The government’s investigation concerning Signature’s policies and practices, including whether unrealistic financial goals and scheduling therapy to achieve the highest reimbursement level regardless of the clinical needs of its patients, resulted in Signature providing and billing for unreasonable, unnecessary, and unskilled services for Medicare patients.
“Our most vulnerable citizens are put at risk when healthcare providers put their financial interests above their patients’ needs and valuable federal funds are diverted from where they are surely needed,” said U. S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to pursuing healthcare providers who provide unnecessary care to advance their bottom line.”
“Today’s settlement demonstrates our continuing efforts to protect patients and taxpayer by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Nursing home facilities provide important services to our elderly, and those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services.”
“Corporate goals should never get in the way of providing necessary quality healthcare,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG will continue to protect taxpayer dollars and vulnerable recipients of government healthcare programs.”
The message is clear, if you take advantage of programs like Medicare you will be held accountable,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The settlement resolves an investigation conducted by the U.S. Attorney’s Office for the Northern District of Georgia and allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlement also resolves allegations that Signature submitted forged certifications of patient need for skilled nursing care to the State of Tennessee’s Medicaid program.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Department of Justice Civil Division’s Commercial Litigation Branch, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti (Northern District of Georgia), Assistant U.S. Attorney Jason Ehrlinspiel (Middle District of Tennessee), and Christelle Klovers (Commercial Litigation Branch).
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.
Attachments:
Signature Healtcare Settlement AgreementSignature HealthCARE to Pay More Than $30 Million to Resolve False Claims Act Allegations Related to Rehabilitation TherapyRead the Press Release
Signature HealthCARE, LLC (Signature), a Louisville, Kentucky based company that owns and operates approximately 115 skilled nursing facilities, including 7 in middle Tennessee, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, the Department of Justice announced today. The settlement also resolves allegations that Signature submitted forged pre-admission certifications of patient need for skilled nursing to the state of Tennessee’s Medicaid program. Under the settlement agreements, Signature has agreed to pay more than $30 million. As part of the resolution, the State of Tennessee will receive a portion of the overall settlement.
“Today’s settlement demonstrates our continuing efforts to protect patients and taxpayer by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Nursing home facilities provide important services to our elderly, and those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services.”
The government alleged that Signature engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: (1) presumptively placing patients in the highest therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; and, (3) pressuring therapists and patients to complete the planned minutes of therapy even when patients were sick or declined to participate in therapy.
“Health care providers who engage in deceptive practices place patients at unnecessary risk and contribute to the financial distress of our federal healthcare programs,” said U.S. Attorney Cochran for the Middle District of Tennessee. “Our dedicated teams of civil enforcement attorneys will work tirelessly with the relators who report fraud such as this and with our law enforcement partners who investigate healthcare fraud. When we determine that companies are cheating the taxpayers, we will hold them accountable as we have in this case.”
“Our most vulnerable citizens are put at risk when healthcare providers put their financial interests above their patients’ needs and valuable federal funds are diverted from where they are surely needed,” said U. S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “This settlement demonstrates our commitment to pursuing healthcare providers who provide unnecessary care to advance their bottom line.”
“Signature was charged with illegally boosting profits by providing excessive amounts of therapy to patients whether they needed it or not,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services, Office of Inspector General. “The decision to provide therapy should never be based on corporate financial considerations rather than a patient’s medical needs.”
The settlement resolves allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Offices for the Middle District of Tennessee and the Northern District of Georgia, the Office of Inspector General of the Department of Health and Human Services, the Tennessee Bureau of Investigation. Department of Defense, Office of Inspector General, the Defense Criminal Investigative Service, and the Department of Health and Human Services, Office of the Inspector General. Trial Attorneys Christelle Klovers and Denise Barnes of the Civil Division of the Department of Justice, Assistant United States Attorney Sarah K. Bogni of the Middle District of Tennessee, and Assistant United States Attorney Lena Amanti of the Northern District of Georgia represent the United States. Assistant Attorney General Philip Bangle represents the State of Tennessee.
The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Shepherdsville Man Convicted of Selling Counterfeit Bicycle Helmets on EbayRead the Press Release
LOUISVILLE, KENTUCKY—After a four day trial, Matthew S. Stepp, age 40, of Shepherdsville, Kentucky, was found guilty today of eight counts of mail fraud and three counts of trafficking in counterfeit goods, United States Attorney Russell M. Coleman announced.
“What might appear on its face to be an esoteric white collar prosecution is, in fact, an all-out effort to keep kids and families safe” said U.S. Attorney Russell Coleman “This office will continue to work with our federal law enforcement partners to protect Americans from counterfeit personal safety equipment and companies from theft of their intellectual property.”
Martin H. Nguyen, the former General Counsel of BRG Sports – which owned one of the helmet manufacturers victimized by the defendant – stated “This is a sterling example of industry and government collaborating for the public benefit. The private and public sectors should remain constantly vigilant in both enforcement of intellectual property rights and protection of consumers.”
Stepp was charged with conducting a scheme to defraud consumers by marketing and selling high-end, counterfeit bicycle helmets on eBay between May 2014 and November 2014. Stepp had purchased the counterfeit helmets for pennies on the dollar from Ali Express, a Chinese website. Stepp was also charged with three counts of trafficking in counterfeit goods for selling counterfeit Specialized, Giro, and Catlike helmets on eBay.
During trial, representatives from Specialized testified that in mid-October 2014 they realized that Stepp was marketing Chinese counterfeit Specialized S-Works Prevail bicycle helmets for sale, and that Stepp was the first American distributor of Chinese counterfeit Specialized bicycle helmets on eBay. Concerned for customer safety, Specialized immediately notified eBay and the National Intellectual Property Rights Coordination Center (NIPRCC), who immediately contacted Homeland Security Investigations in Louisville. A search warrant was executed at Stepp’s home on November 6, 2014, where 45 counterfeit helmets were seized. Additional packages containing counterfeit helmets that Stepp had placed in the mail for delivery were also seized from the Post Office.
During trial, the United States introduced evidence showing that Stepp purchased counterfeit Specialized S-Works Prevail, Giro Aeon, and Catlike Whisper bicycle helmets on Ali Express for between $50 and $70, and sold those helmets on eBay for upwards of $150. The retail value of the helmets was over $200. Sample counterfeit Specialized and Giro helmets seized from Stepp were tested to see if they satisfied Consumer Product Safety Commission safety standards. The counterfeit helmets were found not to contain roll cages or the internal reinforcements that are standard in high-end authentic Specialized and Giro bicycle helmets. When placed on a head form and dropped onto a testing surface at approximately 11 miles per hour, the counterfeit helmets broke into pieces during impact testing, resulting in direct contact between the head forms and the testing surface. Testimony at trial revealed that a consumer wearing one of the counterfeit helmets and suffering a similar impact might suffer a fractured skull, brain damage, or death.
Stepp will be sentenced by United States District Court Judge Claria Horn Boom in Louisville on September 10, 2014 at 10 a.m. The case was investigated by the Department of Homeland Security/Homeland Security Investigations, and the United States Postal Inspection Service, and was prosecuted by Assistant United States Attorneys Daniel P. Kinnicutt and David R. Weiser, and paralegal Elizabeth Fauxpoint.
Shelton Man Sentenced to 5 Years in Federal Prison for Downloading Child Pornography from the Dark WebRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL HULL, 61, of Shelton, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, a Homeland Security Investigations (HSI) operation revealed that HULL was accessing the dark web to search for, view and download child pornography. On May 31, 2017, HSI agents and Shelton Police officers conducted a court-authorized search of HULL’s Shelton residence and seized approximately 16 electronic devices, including computers and external hard drives. Forensic analysis of the seized devices revealed 13 images and 126 videos of child pornography, including many images and videos depicting children younger than 12 engaged in sexually explicit conduct. Among the items seized were two encrypted tablets and an encrypted hard drive that could not be searched.
The investigation also revealed that HULL had a video camera installed in his bathroom. The camera was connected to a VCR that captured images of individuals, including children, who used his bathroom. Agents located and seized several VHS tapes containing these recordings in the home.
HULL has been detained since his arrest on May 31, 2017. On January 30, 2018, he pleaded guilty to one count of receipt of child pornography.
As part of the sentence, pursuant to the Justice for Victims of Trafficking Act of 2015, Judge Underhill ordered HULL to pay a special assessment of $5,000, which is used to fund victim services.
This matter was investigated by Homeland Security Investigations, the Shelton Police Department and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Shawnee Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
OKLAHOMA CITY – CHRISTOPHER MARCUS WELLS, 47, of Shawnee, was sentenced today to 12 years in federal prison for receipt of child pornography, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
Wells was indicted for child pornography offenses on November 15, 2017. On January 5, 2018, Wells pleaded guilty to one count of receipt of child pornography. According to an affidavit in support of a search warrant in this case, Wells’ computer was sharing child pornography files via peer-to-peer file sharing software on June 17, 2017. An undercover Federal Bureau of Investigation ("FBI") agent downloaded child pornography files that Wells’ computer was sharing. Pursuant to a search warrant issued by a United States Magistrate Judge, agents later searched Wells’ home and seized his computer equipment for forensic analysis. During the course of its investigation, the FBI learned that Wells had acquired terabytes of child pornography via the Dark Web and peer-to-peer file sharing software.
At sentencing today, United States District Judge Joe Heaton sentenced Wells to 12 years in federal prison. In sentencing Wells, the Court took into consideration records indicating that Wells had molested a young girl approximately 25 years ago. After his prison sentence, Wells will serve five years on supervised release. Wells has been held in federal custody since December 18, 2017.
This case is the result of an investigation by the FBI. Assistant U.S. Attorney Brandon Hale prosecuted the case.
Reference is made to court filings for further information.
Seven Members of Brooklyn Crew Led by Crips Gang Member Indicted for Drug TraffickingRead the Press Release
A seventh defendant, Tysheim Warren, was arrested today in connection with a nine-count indictment filed in federal court in Brooklyn, also charging Javier Blackett, John Paul Balcazar, David Maldonado, Hassan McClean, Kevin Raphael and Andrew Rose with crimes stemming from their participation in a drug-trafficking organization that distributed more than 400 grams of crack cocaine in the Prospect Lefferts Gardens/Flatbush neighborhoods of Brooklyn. The indictment was returned by a grand jury on May 10, 2018. Blackett, Maldonado, Raphael and Rose were arrested on May 15, 2018. Balcazar was arrested on May 18, 2018, and McClean was arrested on May 22, 2018. They were arraigned and ordered detained pending trial. Warren was arraigned this afternoon before United States Magistrate Judge Steven M. Gold and ordered detained.
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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
According to the indictment and court filings, the defendants’ drug-selling operations centered around several residential buildings approximately three blocks southeast of the Prospect Park ice skating rink. Since March 2017, members of law enforcement made numerous controlled purchases totaling more than 400 grams of crack cocaine from the defendants’ organization and intercepted, pursuant to court order, communications discussing their distribution of significantly more narcotics. Blackett, a member of the Eight Trey set of the Crips street gang, was the leader of the organization; Raphael was one of his principal suppliers; and Balcazar, Maldonado, McClean, Rose and Warren were workers.
“The residents of Brooklyn are entitled to streets that are free of the dangerous drugs the defendants were allegedly selling,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will continue to work tirelessly to put drug dealers out of business and hold them accountable for their crimes.”
“These dealers are alleged to have operated very close to a place where families go, where children play and where people find sanctuary in the city,” stated FBI Assistant Director-in-Charge Sweeney. “When doing business with gang members and drug dealers, violence inevitably follows and innocent people could have been caught up in it. The FBI Metro Safe Streets Task Force works every day to protect the community from these dangerous gang members and preventing them from proliferating their deadly drugs.”
“The NYPD’s efforts to eradicate drug trafficking are greatly strengthened by our close partnerships with the FBI and the U.S. Attorney for the Eastern District,” stated NYPD Commissioner O’Neill. “I commend everyone involved in this case, particularly the investigators who put themselves directly in harm’s way. Those who illegally deal in narcotics should be prepared for the full weight of our nation’s best law enforcement professionals to bear down upon them.”
If convicted of the conspiracy charge, the defendants face a mandatory minimum sentence of 10 years’ imprisonment and up to life in prison. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being prosecuted by Assistant United States Attorneys Mathew S. Miller and Sarah Evans.
The Defendants:
JAVIER BLACKETT (also known as “Gutta” and Cito”)
Age: 35
Brooklyn, New YorkJOHN PAUL BALCAZAR (also known as “Johnny”)
Age: 21
Brooklyn, New YorkDAVID MALDONADO
Age: 30
Brooklyn, New YorkHASSAN McCLEAN (also known as “Freak”)
Age: 19
Brooklyn, New YorkKEVIN RAPHAEL (also known as “Millz” and “M”)
Age: 39
Brooklyn, New YorkANDREW ROSE (also known as “Nice”)
Age: 29
Brooklyn, New YorkTYSHEIM WARREN (also known as “Ty”)
Age: 18
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-245 (PKC)
Sentencings for June 4, 2018Read the Press Release
OMAR GOMEZ-SALAZAR, 25, of San Luis Potosi, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 4, 2018 for illegal re-entry of a previously deported alien into the United States. Gomez-Salazar was arrested in Platte County, Wyoming. He received time served plus ten days to allow for deportation proceedings and a $100.00 special assessment to be remitted at the time of deportation. The U.S. Immigration and Customs Enforcement investigated this case.
MATEO BEDOLLA-AGUILAR, 34, of Tlaxcala, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 4, 2018 for illegal re-entry of a previously deported alien into the United States. Bedolla-Aguilar was arrested in Jackson, Wyoming. He received time served plus ten days to allow for deportation proceedings and a $100.00 special assessment to be remitted at the time of deportation. The U.S. Immigration and Customs Enforcement investigated this case.
Rogers Man Sentenced to 30 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jason Fields, age 39, of Rogers, Arkansas, was sentenced yesterday to 30 years in federal prison without the possibility of parole to be followed by 20 years of supervised release on one count each of Production of Child Pornography and Possession of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in October of 2017, law enforcement received a report from the National Center for Missing and Exploited Children that a Northwest Arkansas resident distributed an image of child pornography via the internet application “Chatstep.” During the subsequent investigation, law enforcement obtained a search warrant for Fields, residence. Said warrant was executed on or about November 3, 2017. While on the scene, Fields was read his Miranda rights, and thereafter confirmed that he has sent and received via the internet images of minors engaging in sexually explicit conduct. Fields also told law enforcement that he saved several of such images to a thumb-drive located in his laptop computer. Additionally, Fields stated that he had taken nude images of an approximately 5-year-old male.
A subsequent forensic examination of Fields’ devices revealed over 100 images of minors engaged in sexually explicit conduct. At sentencing, the Government presented the Court with evidence that some of the minors depicted in the images were as young as approximately 2 years of age.
Fields was indicted in December 2017 on federal charges and plead guilty in January 2018.
This case was investigated by the Department of Homeland Security, the Arkansas State Police, and the Northwest Arkansas Internet Crimes Against Children Taskforce, and the Rogers Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Robbery Getaway Driver Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY VITO, 28, pleaded guilty today in Bridgeport federal court to one count of aiding and abetting an armed bank robbery in Thomaston last year, and admitted that he aided and abetted two other commercial robberies on the same day.
According to court documents and statements made in court, on December 8, 2017, VITO drove Anthony Provost to the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury. Provost first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents. The cashier complied and provided him with $578. The cashier also complied with Provost’s demand that she give him cigarettes valued at approximately $131. Provost then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money. During the robbery, when a customer entered the premises, Provost pointed the firearm at her and told her to keep her hands out of her pocketbook. The cashier gave Provost approximately $350. Provost then fled the premises in the vehicle driven by VITO.
VITO then drove Provost to the Thomaston Savings Bank located at 508 South Main Street in Thomaston. At the bank, Provost handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.” Provost also displayed what appeared to be a firearm. After the teller gave him money, Provost told her to get money from the other teller. The teller complied, and Provost left the bank with $1,471. Provost and VITO then fled the scene.
On December 9, 2017, Provost was arrested by Waterbury Police officers in a motel room that was occupied by VITO and another individual. At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, and multiple packs of cigarettes. Officers also seized a red Ford Explorer that had been used during several of the robberies. VITO was arrested shortly thereafter.
Provost and VITO have been detained since their arrests.
VITO is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on August 31, 2018, at which time he faces a maximum term of imprisonment of 25 years.
On April 26, 2018, Provost pleaded guilty to one count of armed bank robbery and admitted that he committed these robberies and several others in Connecticut, Massachusetts and New Hampshire late last year. He awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Project Safe Neighborhoods grant announcementRead the Press Release
SHREVEPORT / MONROE / ALEXANRIA / LAKE CHARLES / LAFAYETTE, La. – United States Attorney David C. Joseph and the Project Safe Neighborhoods (PSN) Task Force announced the availability of approximately $159,488 in PSN grants funds for the Western District of Louisiana. The Department of Justice, the Office of Justice Programs and the Bureau of Justice Assistance is seeking applications for funding of a grant under the Project Safe Neighborhoods (PSN) Program. Approximately $143,539 of the grant funds will be designated for grants under the Project Safe Neighborhoods (PSN) Program to fund new and/or current comprehensive gun crime and gang violence reduction strategies in our district.
PSN furthers the Department of Justice=s mission to reduce violent crime by providing support to state, local and tribal efforts to create safer neighborhoods through a sustained reduction in violent crimes and gang violence committed with firearms.
Various types of single or multi‑grantee grant proposals are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication and supervision programs;
- Prisoner reentry programs; or
- Other innovative related projects.
Grant proposals must be submitted to the U.S. Attorney’s Office, ATTN: PSN Grant Competition, 800 Lafayette Street, Suite 2200, Lafayette, LA 70501, no later than 5 p.m. on Wednesday, June 27, 2018.
The FY 2018 PSN Grant Announcement, OMB No. 1121-0329 can be found at www.bja.gov/funding/PSNFormula18.pdf. Please also visit the Western District of Louisiana U.S. Attorney’s Office website at: www.justice.gov/usao-wdla, as well as www.psn.gov or www.bja.gov/programs/psn for more particulars on this grant.
Interested applicants may also contact Assistant U.S. Attorney and PSN Coordinator Jamilla A. Bynog at (337) 262-6618 for additional information.
Portland Man Pleads Guilty to Running an Illegal Gambling BusinessRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that William Flynn, 76, of Portland, Maine, pleaded guilty yesterday in U.S. District Court to running an illegal gambling business.
According to court records, between 2010 and April 7, 2017, Flynn was a participant in Stephen Mardigan’s illegal sports gambling business operating in Portland. This business received bets on professional and college sporting events. Flynn coordinated bets with Mardigan, shared profits and losses with him, and communicated regularly with him about sports lines, bets taken, and other aspects of the business. Mardigan also served as the “bank” for Flynn’s bets.
The defendant faces up to five years in jail and twice the gain on the gambling charge. He agreed to forfeit $74,690. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the FBI’s Southern Maine Gang Task Force; the Portland, South Portland, Lewiston, Westbrook, Bangor, and Cape Elizabeth Police Departments; the Maine State Police; the Internal Revenue Service, Criminal Investigation; and the U.S. Postal Inspection Service.
Pine Ridge Man Sentenced for Assault on a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Assault on a Federal Officer was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Franklin Long Black Cat, age 24, was sentenced on June 1, 2018, to 2 years in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Long Black Cat was indicted for the charge by a federal grand jury in December 2017. The charge related to Long Black Cat punching a tribal corrections officer in the cheek with his fist on October 23, 2017.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Long Black Cat was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Personal Injury Attorney Indicted on Fraud ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain today announced that a Philadelphia attorney who struggled to pay his law firm’s expenses was indicted on fraud charges.
Donald F. Manchel, 84, of Bryn Mawr, PA, was charged with wire and mail fraud.
The indictment alleges that on multiple occasions, Manchel used settlement funds due to clients to instead pay his firm’s business expenses, including payroll and employee insurance premiums. Additionally, he used the settlement funds due to one client to pay another client. According to the indictment, Manchel made false statements and engaged in acts of deception in an effort to hide the fact that he already had spent his clients’ settlement funds, and to avoid having to issue payment to clients of the settlement funds due to them.
“Under the law, attorneys are required to keep settlement funds separate from other money,” said U.S. Attorney McSwain. “And when an attorney deliberately deceives his clients, he must be held accountable.”
If convicted, the defendant faces a maximum possible sentence of 220 years’ imprisonment, three years of supervised release, a $2.5 million fine, and a $2,000 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Philadelphia Heroin Dealer with Connections to Mexican Drug Ring Sentenced to 57 Months’ ImprisonmentRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Marcos Callejas-Nava, a citizen of Mexico and convicted heroin dealer, was sentenced this week to 57 months’ imprisonment.
Callejas-Nava had pleaded guilty to one count of conspiracy to distribute two kilograms of heroin and one count of possession with intent to distribute two kilograms of heroin. He is also facing deportation proceedings upon completion of his federal sentence. At the sentencing hearing, Judge Joel H. Slomsky noted his concern about the seriousness of the offense and the dangerousness of heroin in the community.
“The defendant was an active and eager participant in a cross-border conspiracy to import and distribute heroin in a region that has been ravaged by the deadly effects of heroin addiction and overdose. We are in the midst of an epidemic and we have to stop those who are bringing this poison into our communities,” U.S. Attorney McSwain stated.
The case arose out of an investigation by Montgomery County Detective Bureau (MCDB) Narcotics Enforcement Team (NET), the Drug Enforcement Administration (DEA) and the Montgomery County District Attorney’s Office Local Drug Task Force into a Mexican drug trafficking organization distributing kilogram quantities of heroin in the Philadelphia area. The case is being prosecuted by Assistant U.S. Attorney Jennifer Jordan.
Omaha Man Sentenced for Bank RobberiesRead the Press Release
United States Attorney Joe Kelly announced today that on June 4, 2018, Chief United State District Court Judge Laurie Smith Camp, sentenced Wayne Rolling, age 25, of Omaha, Nebraska, for his conviction for three bank robberies. Rolling was sentenced to a jail term of 64 months, placed on supervised release for three years and ordered to make restitution to the victim banks.
Defendant in a span of one week in November 2017 robbed three financial institutions in the Omaha metro area. All three of the financial institutions, two SAC Federal Credit Union locations and a First National Bank of Omaha branch, were located in three separate Hy-Vee stores throughout Omaha. In all three of the bank robberies defendant was unarmed but presented demand notes to the tellers.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
New York Man Sentenced for Trafficking OxycodoneRead the Press Release
BOSTON – A New York-based oxycodone trafficker was sentenced yesterday in federal court in Boston.
Ilir Bregu, 46, of Staten Island, N.Y., was sentenced by U.S. District Court Judge George A. O’Toole Jr. to six years in prison and three years of supervised release. In March 2018, Bregu was convicted of conspiracy to possess with intent to distribute and to distribute oxycodone.
In 2014 and 2015, agents observed foot and vehicle traffic consistent with street-level drug sales coming and going from the home of Mario Scata, 71, and his son, Manuele Scata, 45, of Revere, and from Manuele Scata’s business, D & M Auto Doctor, on Bennington Street in East Boston. While investigating the Scatas’ oxycodone trafficking, Scatas’ pill supplier, Bregu, was identified through surveillance and phone analysis. After obtaining a search warrant to track the precise location of Bregu’s phone, it was determined that every two-to-three weeks, Bregu drove his vehicle from Staten Island to Revere or East Boston, met with one or both of the Scatas, and then returned to Staten Island.
On July 16, 2015, a series of search warrants were executed after tracking Bregu’s phone from Staten Island to East Boston and then watching as Bregu met with Mario and Manuele Scata at D & M Auto Doctor. During the searches, a sophisticated hidden compartment was discovered in Bregu’s vehicle, which contained $37,800. In addition, approximately 1,900 oxycodone pills, a loaded firearm, and a machete were recovered from Manuele Scata’s vehicle and additional oxycodone pills, a hand-written drug ledger, and nearly $12,000 were recovered from the Scatas’ home.
In December 2017, Mario Scata pleaded guilty to conspiracy to distribute oxycodone and possession with intent to distribute oxycodone. He is scheduled to be sentenced on June 21, 2018. In February 2018, Manuele Scata pleaded guilty to conspiracy to distribute oxycodone, possession with intent to distribute oxycodone, and use of a firearm during and in relation to a drug trafficking offense. His sentencing is scheduled for July 26, 2018.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Revere Police Chief James Guido; Quincy Police Chief Paul Keenan; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys Christopher Pohl, of Lelling’s Organized Crime and Gang Unit, and Miranda Hooker, of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
New Haven Gang Member Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY HARTSELL, also known as “Pop Off,” 37, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 90 months of imprisonment, followed by three years of supervised release, for his role in a violent New Haven street gang.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members. HARTSELL served as second-in-command of the RSGB.
In September 2011, leaders of the RSGB, including Benton and HARTSELL, ordered Robert Short, also known as “Santana,” to murder Darrick Cooper, who was a leader of a rival New Haven gang and seen as a threat. On September 19, 2011, Short lured Cooper to a location in Hamden. Short then shot Cooper in the back of the head as Cooper walked up a staircase.
On May 17, 2016, HARTSELL pleaded guilty to one count of conspiracy to commit murder in aid of racketeering.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton and Short pleaded guilty to various offenses stemming from this investigation, and both admitted to participating in the murder of Darrick Cooper. Benton also admitted that he participated in three other gang-related murders and one attempted murder.
On October 4, 2017, Benton was sentenced to 480 months of imprisonment. Short awaits sentencing.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
HARTSELL will begin serving his federal sentence after he completes a state sentence for an unrelated offense.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Nebraska Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced today that Owen J. Drew, 33, of Omaha, Nebraska, was sentenced to 70 months’ imprisonment by the Hon. Robert F. Rossiter, Jr. After release from the Bureau of Prisons, Drew will serve eight years of supervised release. He will be required to register as a sex offender, also.
Between May of 2016 and May of 2017, Drew knowingly received a visual depiction of sexually explicit conduct involving the use of a minor. In April of 2017, FBI Task Force Officers in the Douglas County Sheriff’s Office identified Drew through his use of a peer-to-peer file exchange software in which an undercover agent downloaded multiple child pornography files being shared from the defendant’s computer. After executing a federal search warrant, law enforcement identified multiple video files depicting child pornography in a “downloads” folder on the defendant’s laptop computer. Drew was arrested pursuant to a warrant on August 25, 2017.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Murdaland Mafia Piru Gang Member Sentenced to 180 Months in Prison for Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland – On June 7, 2018, United States District Judge Catherine C. Blake sentenced Melvin Lashley, a/k/a “Menace,” age 28, of Baltimore, to fifteen years in federal prison, followed by five years of supervised release, for racketeering conspiracy and conspiracy to distribute a kilogram of more of heroin and 280 grams or more of crack cocaine. Lashley pleaded guilty to these crimes in May 2017.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Matthew Varisco of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; Chief Terrance B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
Murdaland Mafia Piru (MMP), also know as the “Mob” or “Mobsters,” was a violent subset of the Bloods gang that operated in Maryland and elsewhere beginning in or about 2011. MMP was modeled after the Italian Mafia, and was organized hierarchically with a “Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from western Maryland and neighboring states. MMP’s members used violence and threats of violence—including murder—to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to his plea agreement, Lashley admitted was a member of MMP during the dates of the racketeering conspiracy, and that he agreed with other members of MMP to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included offenses involving drug trafficking.
In particular, Lashley admitted that on August 29, 2015, Co-Defendant 1 called Lashley from a recorded jail telephone. During the call, Lashley stated that he had recently gotten an MMP gang tattoo between his eyes. Lashley and Co-Defendant 1 also recounted an incident in which they participated in an assault and robbery of a rapper who is associated with a rival Crips gang.
On August 30, 2015, Co-Defendant 1 again called Lashley from a recorded jail telephone. Lashley recounted a recent incident in which an individual stole a drug sale worth $850 from Co-Defendant 2, and as a result, Co-Defendant 3 “beat the fu** out of him, broke his jaw and all that” and “beat his sister and his mother up.”
Between July and August 2016, law enforcement officers conducted a court-authorized wiretap of telephones belonging to Co-Defendants 2, 4, and 5. Lashley was intercepted in a number of calls over these telephone lines discussing drug transactions. For instance, in a call on July 24, 2016, Co-Defendant 2 told Lashley he was coming to get “cruddy cracks” from him—a reference to narcotics packaged for distribution. Lashley told Co-Defendant 2 that the drugs were already gone, but that he had $140 in drug proceeds for Co-Defendant 2. On July 27, 2016, in a series of calls, Lashley and Co-Defendant 2 discussed acquiring an additional supply of heroin from a stash house operator. Lashley advised Co-Defendant 2 to be careful because of a vehicle in the area they believed was being operated by federal agents.
On July 2, 2016, law enforcement officers intercepted a call in which Co-Defendant 2 advised Co-Defendant 4 that Lashley was “throwing threats to them nig**as”—a reference to rival drug dealers—and “talking ‘bout he gonna kill all y’all, I’m gonna kill all y’all.”
On September 27, 2016, law enforcement officers executed a federal search warrant at Lashley’s residence in Baltimore and recovered roughly 20 grams of heroin and a loaded J.P. Sauer & Sohn .32 ACP caliber pistol belonging to Lashley. At the time, Lashley was prohibited from possessing firearms and ammunition due to a disqualifying felony conviction.
Lashley agreed that he conspired with other members of MMP to distribute heroin and cocaine base in furtherance of the gang, and that it was reasonably foreseeable to him that between one and three kilograms of heroin and between 280 and 840 grams of cocaine base would be distributed by members of the conspiracy.
The following twelve co-defendants, also members or associates of MMP, have all previously pleaded guilty to conspiring to violate federal racketeering and drug trafficking laws:
- William Banks, a/k/a “Trouble,” age 29;
- Dominick Wedlock, a/k/a “Rage,” age 30;
- Dwight Jenkins, a/k/a “Huggie,” age 48;
- William Jones, a/k/a “Smalls,” age 27;
- Jarmal Harrid, a/k/a “J-Rock,” age 27;
- Jamal Smith, a/k/a “Mal,” age 25;
- Takuma Tate, a/k/a “Oop,” age 39;
- Maurice Pollock, a/k/a “Reese,” age 22;
- Charles Blackwell, a/k/a “Ci-Bo,” age 21;
- Kenneth Torry, a/k/a “Kenny,” age 40;
- Delante Lee, a/k/a “Tay Tay,” age 22; and
- Jay Greer, a/k/a “Champagne,” age 26.
United States Attorney Robert K. Hur commended the ATF Baltimore Field Division, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who are prosecuting the case.
Mount Oliver Man Admits Robbing PNC Bank in Homestead, Citizens Bank in MonroevilleRead the Press Release
PITTSBURGH, PA – A former Allegheny County resident pleaded guilty in federal court to two counts of bank robbery, United States Attorney Scott W. Brady announced today.
David Payo, age 52, formely of Mount Oliver, pleaded guilty before United States District Court Judge Mark Hornak.
In connection with the guilty plea, the court was advised that on May 27, 2017, Payo entered the PNC Bank in Homestead wearing a black baseball hat, black hoodie, and approached the teller. Payo stated, "This is a robbery, give me 50’s, 100’s, 20’s, and no dye packs." Payo escaped with $3,460 in cash out of the front door of the bank.
The court was also advised that on June 8, 2017, Payo, wearing an orange sweatshirt, black baseball cap and black sunglasses on top of the hat, approached a teller at the Citizens Bank in Monroeville, PA. He sat down at the desk and told her, "This is a robbery." He then repeated, "This is a robbery, give me your 100’s, 50’s, and 20’s, no 10’s, and no dye packs." The teller complied and handed over $1890.00 in cash and one dye pack. Payo fled from the bank. A search of Payo’s residence recovered dye stained clothes from the exploding dye pack given to him at the Citizens Bank.
Payo faces a total maximum sentence of not more than 40 years in prison, a fine of not more than $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The FBI Pittsburgh’s Violent Crimes Task Force, the Homestead Police Department, the Allegheny County Police Department, and the Monroeville Police Department conducted the investigation leading to the guilty plea in this case.