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Wednesday 6 June 2018
Indictment: Kansas City, Kan., Men Arrested with Two Pounds of HeroinRead the Press Release
KANSAS CITY, KAN. – Two men from Kansas City, Kan., were indicted today on charges of possession with intent to distribute more than two pounds of heroin, U.S. Attorney Stephen McAllister said.
Hugo Miguel Lopez-Erazo, 30, Kansas City, Kan., and Cesar Donai Bautista, 38, Kansas City, Kan., are charged with one count of possession with intent to distribute heroin. In addition, Lopez-Erazo is charged with two counts of distributing methamphetamine and one count of distributing heroin. The crimes are alleged to have occurred in July and August 2017, and January and May 2018 in Wyandotte County, Kan.
According to court documents, in May 2018 investigators working undercover arranged to buy two pounds of heroin from the defendants. Investigators met the defendants in a parking lot on South 18th Street in Kansas City, Kan., where they seized the heroin and arrested Lopez-Erazo and Bautista.
Upon conviction, the alleged crimes carry the following penalties:
Possession with intent to distribute methamphetamine and possession with intent to distribute heroin: Not less than 10 years and a fine up to $10 million on each count.
Distribution of heroin: Up to 20 years and a fine up to $1 million.
The Kansas Bureau of Investigation (KBI) and Homeland Security Investigations (HSI) investigated. Special Assistant U.S. Attorney James Ward is prosecuting.
OTHER INDICTMENTS
Bryan K. Quinley, 37, Leavenworth, Kan., is charged with drug trafficking. The charges include two counts of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute cocaine, two counts of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in March and April 2018 in Leavenworth and Johnson counties in Kansas.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute cocaine: Up to 20 years and a fine up to $1 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $150,000.
Unlawful possession of a firearm following a felony conviction: Up to 10 years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Alex They Maya-Dimas, 37, a citizen of Mexico, is charged with one count of transporting aliens who were unlawfully in the United States and one count of unlawfully re-entering the United States after being deported. The crime is alleged to have occurred May 16, 2018, in Sedgwick County, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on the transportation charge, and up to two years and a fine up to $250,000 on the unlawful re-entry charge. Homeland Security Investigations (HIS) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Juan Diaz, 42, who is not a citizen of the United States, is charged with unlawfully re-entering the country after being deported. He was found April 10, 2018, in Wyandotte County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforce (ICE) investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Jose Luis Avila-Merino, 22, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 16, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HIS) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Jose Juan Hernandez-Vasquez, 19, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found May 16, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HIS) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Gregorio Omar Laredo-Terrones, 34, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found May 16, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HIS) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Erik Adan Luis-Rojas, 29, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found May 16, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HIS) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Jose Luis Rodriguez-Vazquez, 45, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found May 16, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations (HIS) investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illigal Alien Sentenced for ATM Skimmer FraudRead the Press Release
Gulfport, Miss. – Taise Braganca Moscon, age 26, an illegal alien from Brazil, was sentenced today by United States District Judge Sul Ozerden to serve 13 months in federal prison, followed by 3 years of supervised release, and to pay $6,450.00 in restitution to a victim, for a fraud in connection with access devices, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Custom Enforcement’s Homeland Security Investigations in New Orleans.
On December 7, 2017, Moscon and two co-defendants were stopped in a Lincoln Navigator with Florida tags after being at a Keesler Federal Credit Union Automated Teller Machine (“ATM”) on Automall Parkway in D’Iberville, Mississippi. The ATM was found to have a skimmer on it and had been altered with the top flap privacy shield being cut off so a camera placed above could observe the ATM key pad where customers enter their account PIN numbers. A search of the Lincoln Navigator resulted in the finding of access device equipment, to include but not limited to, glue, black electrical and double-sided tape and box cutters, credit cards in alias names, a card with sand paper attached to the card, and other credit cards, gift cards, and a micro SD card.
Co-Defendants Claudio Fontes Ferreira, age 30, of Deerfield Beach, Florida, and Rodrigo D. Ferrareze, age 37, of Delray Beach, Florida, pled guilty on February 20, 2018, to one count of knowingly and with intent to defraud, producing, trafficking in, having control or custody of, and possessing device-making equipment. Ferrareze is scheduled to be sentenced on June 12, 2018, and Ferreira is scheduled to be sentenced on September 7, 2018.
This case was investigated by Homeland Security Investigations and the D’Iberville Police Department. It was prosecuted by Assistant U.S. Attorney Andrea Jones.Illegal Alien and Georgia Man Sentenced for Trafficking HeroinRead the Press Release
Gulfport, Miss. – Alejandro Menera Martinez, 36, an illegal alien from Mexico, and Casimiro Cardona Chacon, 23, of Norcross, Georgia, were sentenced yesterday by U.S. District Judge Sul Ozerden on drug trafficking charges, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge J. Derryle Smith with the Drug Enforcement Administration.
Menera Martinez was sentenced to 120 months in federal prison, followed by five years of supervised release, for possessing with intent to distribute heroin. He pled guilty to the charge on February 23, 2018. Menera Martinez organized a negotiated deal in which two kilograms of fentanyl were to be sold to undercover agents. He was arrested while delivering the drugs, but after laboratory analysis, it was determined that the drugs were actually heroin, not fentanyl.
Cardona Chacon was sentenced to 60 months in federal prison, followed by 5 years of supervised release, for possessing with intent to distribute heroin. He pled guilty to the charge on March 1, 2018. Cardona Chacon was the courier in the deal negotiated by Menera Martinez.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Highland Park Man Sentenced to Probation with Home Detention for Passing Counterfeit $100’s at TargetRead the Press Release
PITTSBURGH, PA. - A resident of Pittsburgh has been sentenced in federal court to four years of probation with eight months of home detention and ordered to pay $16,700.00 in restitution on his conviction of passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bisson imposed the sentence on Peter A. Maiolo, Jr., 42, of 6060 Jackson Street, Pittsburgh, PA.
According to information presented to the court, Maiolo passed counterfeit $100 Federal Reserve Notes at Target stores in the Western District of Pennsylvania.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of Maiolo.
Health Care CEO and Four Physicians Charged in Superseding Indictment in Connection with $200 Million Health Care Fraud Scheme Involving Unnecessary Prescription of Controlled Substances and Harmful InjectionsRead the Press Release
A CEO and four physicians were charged today in a superseding indictment as part of an investigation into a $200 million health care fraud scheme that involved a network of Michigan and Ohio pain clinics, laboratories and other medical providers. The superseding indictment returned yesterday charges an additional wire fraud conspiracy, adds an additional count of money laundering, and contains new allegations regarding the distribution of over 4.2 million medically unnecessary dosage units of controlled substances and the administration of medically unnecessary injections that resulted in patient harm.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Chief Don Fort of IRS Criminal Investigation (IRS CI) made the announcement.
Mashiyat Rashid, 37, of West Bloomfield, Michigan; Spilios Pappas, 61, of Monclova, Ohio; Joseph Betro, 57, of Novi, Michigan; Tariq Omar, 61, of West Bloomfield, Michigan; and Mohammed Zahoor, 51, also of Novi, were each charged with one count of conspiracy to commit health care fraud and wire fraud. Rashid was additionally charged with four counts of health care fraud, one count of conspiracy to defraud the United States and pay and receive health care kickbacks, one count of payment of kickbacks, one count of receipt of kickbacks and two counts of money laundering. Pappas, Betro, Omar, and Zahoor were each additionally charged with one count of health care fraud. All of the defendants were previously charged in an original indictment on July 6, 2017, which charged health care fraud and kickback conspiracies, substantive counts of health care fraud and payment or receipt of kickbacks, and one count of money laundering. The case is pending before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Trial has been scheduled to begin on July 31 before Judge Hood.
“We are facing the deadliest drug crisis in American history,” said Attorney General Sessions. “Sadly, some corporate executives and medical professionals continue to exploit vulnerable patients and the American taxpayer for profit. With one American dying of a drug overdose every nine minutes, this superseding indictment reflects the Department of Justice’s determination to prosecute those who engage in opioid-related fraud. These cases are extremely important. Since 2017, the Department charged more than 150 doctors for opioid-related crimes. Today’s indictment reflects our continued dedication to these important cases. I want to thank our FBI, HHS-OIG and IRS-CI agents, DOJ attorneys, and everyone else who helped investigate and prosecute this case.”
“This multi-agency investigation has led to one of the largest healthcare fraud and illegal distribution of prescription drugs indictments this district has ever seen,” said U. S. Attorney Schneider. “I commend the hard work and dedication of the Health Care Fraud Strike Force and law enforcement agencies for shutting down this network of individuals whose greed resulted in millions of dosages of opioids to be sold on the streets of our communities and millions of dollars in loss to Medicare.”
“It is a sad day when a physician allows greed to drive their moral compass and willfully violate their Hippocratic Oath to protect and treat their patients,” said IRS CI Chief Fort. “The conduct described in this indictment, particularly the 4.2 million medically unnecessary dosages and administered injections, provides alarming insight into the growing opioid epidemic our nation is facing. IRS CI will continue to provide resources and financial expertise to work with our law enforcement partners to fight this crisis, disrupting any financial benefit received from the sale of dangerous prescription drugs that plague our communities.”
The superseding indictment alleges that Rashid was the CEO of Tri-County Wellness, and owned, controlled and operated numerous pain clinics, laboratories and other providers in Michigan and Ohio. As set forth in the superseding indictment, from 2008 until their arrest in 2017, Rashid, Pappas, Betro, Omar, Zahoor and other physicians working in Rashid’s clinics conspired to obtain patients by prescribing over 4.2 million dosage units of medically unnecessary controlled substances, including oxycodone, hydrocodone and oxymorphone, to Medicare beneficiaries, some of whom were addicted to narcotics. Some of these opioids were resold on the street, the superseding indictment alleges.
The superseding indictment further alleges that Rashid, Pappas, Betro, Omar, Zahoor and others required Medicare beneficiaries who wished to obtain controlled substances to submit to expensive, medically unnecessary and painful injections. Rashid paid Pappas, Betro, Omar, Zahoor and other physicians based on the number of injections that Medicare paid for, regardless of the medical necessity of the injections. In turn, Pappas, Betro, Omar and Zahoor conducted these repetitive and unnecessary injections on patients in order to increase revenue for Rashid, themselves and their co-conspirators.
When Medicare conducted a medical review of the injection claims, it determined that 100 percent of the claims were not eligible for Medicare reimbursement and summarily suspended the medical billing privileges of one of the pain clinics involved in the scheme. In order to conceal the continued billing of these fraudulent claims to Medicare, the superseding indictment alleges, Rashid, Pappas, Betro, Omar, Zahoor and others created new shell companies that they enrolled in Medicare to keep billing the same fraudulent claims, often changing only the name of the company on the door to the medical practice and/or inventing new suite numbers to conceal the continuation of the fraudulent practices at the same location.
Rashid also owned a diagnostic laboratory and caused Pappas, Betro, Omar and Zahoor to order medically unnecessary urine drug testing from the laboratory, the superseding indictment alleges. When Medicare conducted a medical review of claims submitted by the laboratory, it determined that 95 percent of the claims were not eligible for Medicare reimbursement and ordered the diagnostic laboratory to repay in excess of $6.9 million to Medicare, court documents submitted in connection with Rashid’s detention hearing show. In order to conceal the continued billing of these fraudulent urine drug testing claims to Medicare, the superseding indictment alleges, Rashid and others created a new corporate entity that they enrolled in Medicare so that Pappas, Betro, Omar, Zahoor and others could keep ordering the same fraudulent urine drug testing claims through this new entity.
In addition, the superseding indictment alleges that Rashid paid illegal health care kickbacks to obtain patients and solicited illegal kickbacks and bribes for Pappas, Betro, Omar, Zahoor and others to refer Medicare beneficiaries to specific third-party home health agencies, laboratories and diagnostic providers even though those referrals were medically unnecessary.
Finally, the superseding indictment alleges Rashid committed two counts of money laundering in connection with a $6.6 million wire transfer on April 13, 2016, and the withdrawal of $500,000 in cash on July 10, 2017. The superseding indictment alleges that Rashid transferred the proceeds derived from the conspiracy to live an extravagant lifestyle and spend millions of dollars on luxury clothes from retailers like Hermes, rare Richard Mille watches, and exotic automobiles such as a Lamborghini and Rolls Royce Ghost; a mansion and other real estate in the Detroit, Michigan area; and to sit courtside or in the first row of NBA basketball games, including the NBA Finals. Evidence submitted in connection with Rashid’s detention hearing further showed that Rashid attempted to conceal the proceeds of the fraud by withdrawing $500,000 in cash on July 10, 2017 and hiding the cash in plastic bags and handbags in the closet of his house.
Rashid, Pappas, Betro, Omar and Zahoor were charged along with Yasser Mozeb, 35, of Oakland County, Michigan and Abdul Haq, 72, of Ypsilanti, Michigan, in an indictment unsealed on July 6, 2017. Mozeb and Haq have pleaded guilty, along with three other defendants.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS CI. Trial Attorney Jacob Foster of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Guatemalan Man Convicted of Document FraudRead the Press Release
A Guatemalan man who used false identification documents to obtain a job was convicted by a jury on June 5, 2018, after a two-day trial in federal court in Cedar Rapids.
Jose Corio-Raymundo, age 40, a citizen of Guatemala illegally present in the United States, was convicted of one count of unlawful use of an identification document and one count of misuse of a social security number. The verdict was returned yesterday afternoon following about five hours of jury deliberations.
The evidence at trial showed that Corio-Raymundo used a fraudulent Social Security card bearing the social security number assigned to a United States citizen, and a fraudulent State of Iowa identification card when he completed an employment form on October 2, 2013, at a business in Cedar Rapids, Iowa. Corio-Raymundo also used the social security number of the United States citizen on state and federal tax forms. On the employment form, Corio-Raymundo falsely claimed to be a United States citizen. The investigation began when the Iowa Department of Transportation noticed that Corio-Raymundo was trying to register vehicles under a second social security number. Their investigation disclosed that Corio-Raymundo used the social security number to title vehicles, when he was arrested by police on traffic violations, and when he obtained employment at four businesses in Cedar Rapids.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Corio-Raymundo remains in custody of the United States Marshal pending sentencing. Corio-Raymundo faces a possible maximum sentence of 15 years’ imprisonment, a $500 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations and the Iowa Department of Transportation, Bureau of Investigation and Identity Protection.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-08-LRR.
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Greenville Man Sentenced to more than Ten Years' Imprisonment for Firing at Officers During Execution of Search WarrantRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced CHRISTIAN IVAN CARDENAS, 21, of Greenville, North Carolina, to 128 months of imprisonment followed by 5 years of supervised release.
CARDENAS was charged in a two-count Criminal Information on January 19, 2017 and pleaded guilty on March 15, 2017 to conspiracy to distribute and possess with intent to distribute quantities of marijuana and alprazolam (Xanax) and discharging a firearm during and in relation to a drug-trafficking crime.
In August of 2015, the Greenville Regional Drug Trask Force, which is comprised of law enforcement officers from the Greenville Police Department, the Winterville Police Department, the North Carolina State Bureau of Investigation, the Drug Enforcement Administration, and the East Carolina University Police Department, began investigating CARDENAS as a narcotics distributor in Pitt County. After a controlled purchase from CARDENAS, a search warrant was issued on CARDENAS’s residence. At the time of the execution of the search warrant, CARDENAS fired multiple shots through the front door towards law enforcement officers, with one round striking East Carolina University Officer Travis Davis’s body armor. Fortunately, Officer Davis was not injured.
When law enforcement made their way into the home, several loaded firearms, currency, pills, and marijuana were found. Specifically, the officers recovered a loaded .45 caliber handgun, a loaded semi-automatic assault rifle, and a 12-gauge shotgun, as well as thousands of dollars, several hundred grams of marijuana, and more than two hundred Adderall pills.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) also assisted in the case. Assistant United States Attorney Scott A. Lemmon handled the prosecution of this case for the government.
Four Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, False Claim of Citizenship, and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ALEXIS REYES-IGLESIAS, age 24, of Mexico, ANTONIO DUQUE CAMACHO, age 46, of Mexico, and SANTIAGO MALDONADO-JAIMEZ, age 42, of Mexico, each with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging MIGUEL RAIMUNDO RODRIGUEZ, age 45, of Cuba, with False Representation of a Social Security Account Number, False Claim of United States Citizenship with Intent to Obtain a State Benefit and Service, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, REYES-IGLESIAS, found in Wake County, would face maximum penalties of 2 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal Reentry Subsequent to a Felony Conviction (trafficking cocaine), DUQUE CAMACHO, found in Harnett County, would face a maximum penalties of 10 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal Reentry Subsequent to an Aggravated Felony (indecent liberties with a child), MALDONADO-JAIMEZ, found in Wake County, would face maximum penalties of 20 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, False Claim of United States Citizenship with Intent to Obtain a State Benefit and Service, and Aggravated Identity Theft, RAIMUNDO RODRIGUEZ, found in Cumberland County, would face maximum penalties of 12 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Founder of Not-For-Profit Organization Convicted of Stealing United Nations Grant Funds SentencedRead 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 Deborah Bowers, 63, of Clarence, NY, who was convicted following a jury trial of conspiracy to commit wire fraud, wire fraud and making false statements, was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Marie P. Grisanti and MaryEllen Kresse, who prosecuted the case, stated that Bowers, and co-defendant Steve S. Jabar, founded a not-for-profit organization OKI, Opportunities for Kids International, Inc. In June 2004, Jabar and Bowers, through OKI, applied for and received a $500,000 grant from United Nations to create, maintain, and operate a radio station in Iraq. The mission of the radio station was to further women’s rights issues in Iraq.
Within 24 hours of receiving a portion of the grant money, the defendants began to divert some of the funding for their own personal use. Jabar and Bowers diverted more than $65,000 for their own personal use. Jabar used some of the funding to pay off personal debts, including the payment of property taxes owed on his residence and business, as well as mortgage, utility, credit card payments and personal loan payments. Bowers also utilized some of the funding to pay personal credit card debt and make mortgage payments.
During the investigation, the defendants made false statement to investigator with the Internal Revenue Service in order to conceal with criminal behavior.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Former Philadelphia Police Officer Found Guilty of Bribing DetectiveRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that retired Philadelphia Police Officer Victor Gates was found guilty today by a federal jury of honest services mail fraud conspiracy, honest services mail fraud, and making false statements. The jury deliberated for less than two hours before finding the defendant guilty.
Gates bribed his friend Patrick Pelosi, a Philadelphia Police detective, to misuse his official position and access a law enforcement database of stolen cars in exchange for corrupt monthly payments.
Gates owned a company called Auto Recovery Services LLC, and one of his clients was Avis. Gates would have Pelosi remove certain stolen cars from the National Crime Information Center database so that Avis could rent them out to its customers. The defendant initially lied to police by denying that he made payments of any kind to Pelosi, although he later stated that he had made payments for “help” with the actual physical work of locating cars. Pelosi previously pled guilty and resigned from the Philadelphia Police Department in January 2017.
Between May 2008 and April 2013, Gates mailed a $300.00 check on a monthly basis to Pelosi’s home. Those payments increased to $400.00 per month between May 2013 and October 2014.
“This was a long-running, corrupt money-making scheme that is all the more egregious because the defendant has a law enforcement background,” said U.S. Attorney McSwain. “I want to thank the jury for its swift condemnation of Gates’ actions.”
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, Internal Affairs Division, and is being prosecuted by Assistant U.S. Attorney Eric Gibson.
Final Defendant Receives 12 Year Prison Sentence in $2 Million Conspiracy to Defraud the IRSRead the Press Release
DENVER – Jaquon Mucsarney, age 37, of Aurora, Colorado was sentenced by Chief U.S. District Court Judge Marcia S. Krieger to serve 144 months in prison followed by 3 years of supervised release for conspiracy to defraud the United States and aggravated identity theft, announced the United States Attorney Bob Troyer, IRS – Criminal Investigation Special Agent in Charge Steven Osborne and Social Security Administration Office of Inspector General Special Agent in Charge Wilbert M. Craig. Mucsarney was also ordered to pay $327,970 in restitution to the IRS.
According to information contained in the indictment and plea agreement, between January 1, 2011 and January 1, 2016, Mucsarney devised a scheme to defraud the Internal Revenue Service by filing tax return with false information in order to obtain a fraudulent tax refund. At various times, Mucsarney received assistance from his mother, Schosche MucSarney and girlfriend Sherry Charleston.
As leader of this scheme, Mucsarney created approximately 50 fictitious businesses which only existed on “paper” and had little or no legitimate business activity. In order to file corporate tax returns for these businesses, Mucsarney logged into the U.S. Treasury website and obtained an Employment Identification Number (EIN) using either his or Schosche’s social security numbers. When Mucsarney became aware the IRS was investigating his activities, he started using individuals stolen names and social security numbers to obtain EINs for various companies.
Mucsarney typically filed U.S. Corporation Income Tax Returns (Forms 1120) on behalf of the shell companies which he completed with false information relating to income, deductions, overpayments, and refunds due. When Mucsarney was incarcerated on unrelated charges, he would either supply Schosche and Charleston with the false information to complete the fraudulent income tax returns or have Schosche send Mucsarney blank IRS form to complete. Mucsarney would then mail the completed tax returns to the IRS directly from his correctional facility.
Over the course of the scheme, Mucsarney, with the assistance of others, submitted approximately 100 fraudulent income tax returns to the IRS which claimed refunds totaling $2,168,277. Of the amount requested, the IRS ultimately paid out approximately $327,970.
“Mucsarney stole identities and used fake business names to line his own pockets,” said U.S. Attorney Bob Troyer. “Thanks to our prosecutors and law enforcement partners, for the next twelve years Mucsarney’s real identity will be known to the Bureau of Prisons.”
“Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers,” said Steven Osborne, Special Agent in Charge of the Denver Field Office of IRS – Criminal Investigation. “This 12-year sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers to ensure that the only citizens who receive tax refunds are those who are entitled to them.”
“The SSA OIG promotes Social Security number (SSN) integrity by pursuing cases of SSN misuse and related government fraud,” said Wilbert Craig, Special Agent-in-Charge of the SSA OIG Denver Field Division. “We thank the U.S. Attorney’s Office for prosecuting this case, which resulted in a 12-year prison sentence for the defendant at the center of an SSN misuse and tax fraud scheme, and we will continue to work with the IRS-Criminal Investigation to investigate similar cases.”
Schosche Mucsarney was sentenced on November 22, 2016 to five years probation and restitution of $195,902 to the Internal Revenue Service based on her guilty plea to conspiracy to defraud the government. Sherry Charleston was sentenced on January 9, 2017 to eighteen months imprisonment, 3 years supervised release, and restitution of $16,541 for conspiracy to defraud the government.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Social Security Administration, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Tim Neff.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney R. Trent Shores announced today the results of the June 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Stuart H. Clark. Failure to Register as a Sex Offender. Clark, 27, of Tulsa, is charged with failing to register as a sex offender. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The United States Marshal Service is the investigative agency.
Dannie Dee Dill and Cherie Michelle Kelley. Felon in Possession of Firearm and Ammunition; Drug Conspiracy; Possession With Intent to Distribute Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug Involved Premises; Possession With Intent to Distribute Heroin. Dill, 47, and Kelley, 35, both of Tulsa, are charged with conspiracy to possess and distribute 50 grams or more of methamphetamine and heroin, and maintaining a place for the purpose of distributing and using the drugs. In addition, Dill is charged with possessing a firearm and ammunition after prior felony convictions, and possessing a firearm and ammunition in furtherance of a drug trafficking crime. If convicted, they face a maximum penalty of 40 years in prison and a $5,000,000 fine for the drug conspiracy and possession with intent to distribute methamphetamine charges; a maximum penalty of 20 years in prison and a $500,000 fine for the maintaining a drug involved premises charge; and a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute heroin charge. In addition, Dill faces a maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge; and a maximum penalty of life in prison and a $250,000 fine for the possession of a firearm in furtherance of a drug trafficking crime charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshal Service and the Tulsa Police Department are the investigative agencies.
Freddie Dewayne Gaskey. Felon in Possession of a Firearm. Gaskey, 40, of Oklahoma City, is charged with possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the Oklahoma Department of Agriculture, Food and Forestry are the investigative agencies.
Wesley Aaron Hudson. Felon in Possession of Firearms and Ammunition. Hudson, 30, of Tahlequah, is charged with possessing firearms and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigative agencies.
Darowe Jones, Jr., and Cynthia Santagata. Felon in Possession of Firearm and Ammunition; Drug Conspiracy; Possession With Intent to Distribute Heroin; Possession With Intent to Distribute Marijuana; Maintain Drug Involved Premises. Jones, 38, and Santagata, 32, both of Tulsa, are charged with conspiracy to possess with intent to distribute 100 grams or more of heroin, to possess with intent to distribute marijuana, to possess methamphetamine. They are also charged with possession with intent to distribute heroin and marijuana. Additionally, they are charged with maintaining a place for the purpose of distributing and using drugs. Finally, Jones is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, they face a maximum penalty of 40 years in prison and a $5,000,000 fine for the drug conspiracy and possession with intent to distribute heroin charges; a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute marijuana charge; and a maximum penalty of 20 years in prison and a $500,000 fine for the maintaining a drug involved premises charge. In addition, Jones faces a maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshal Service and the Tulsa Police Department are the investigative agencies.
Bolutife Olusegun Olorunda. Interference With Flight Crew Members and Attendants. Olorunda, 29, of Vancouver, Washington, is charged with verbally assaulting, abusing, and threating to harm a flight attendant. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation, the Transportation Security Administration, Homeland Security Investigations, and Tulsa International Airport authorities are the investigative agencies.
Darrell Percy Owens. Felon in Possession of Firearm and Ammunition; Possession With Intent to Distribute Fentanyl. Owens, 29, of Tulsa, is charged with possessing a firearm and ammunition after prior felony convictions and possessing with the intent to distribute fentanyl. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge; and a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute fentanyl charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa Police Department are the investigative agencies.
Osama Lee Rifai and Chelsy Elizabeth Kathryn Alberty. Drug Conspiracy. Rifai, 29, and Alberty, 28, both of Broken Arrow, are charged with conspiracy to possess and distribute heroin. If convicted, they face a maximum penalty of 20 years in prison and a $1,000,000 fine. The Broken Arrow Police Department is the investigative agency.
Andrew Cordario Wagoner. Felon in Possession of Firearm and Ammunition. Wagoner, 26, of Tulsa, is charged with two counts of possessing a firearm and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department and the Tulsa County Sheriff’s Office are the investigative agencies.
Federal Charges Filed Against Taiwanese Teenager Who AllegedlyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a Taiwanese teenager accused of threatening an attack on a high school in Upper Darby, Pennsylvania has been charged federally.
An-Tso Sun (a/k/a “Edward”), 18, was charged yesterday by federal complaint with possessing ammunition while being in the United States on a nonimmigrant visa, which is a felony under federal law.
Sun is a Taiwanese national who came to the United States to live with an American host family and study at a high school in Upper Darby, Pennsylvania. According to the complaint, on or about March 26, 2018, Sun told another student (identified in the Complaint as “Student 1”), “Hey, don’t come to school on May 1st . . . I’m going to come here armed and shoot up the school. Just kidding.”
“When someone makes an alleged threat of this kind, law enforcement must take it seriously and investigate all leads,” U.S. Attorney McSwain said. “Law enforcement is committed to doing everything in our power to stop an attack before it happens. We must keep our children and our community safe from harm.”
Student 1 reported the incident to school officials, who then alerted law enforcement. According to the complaint, after the report of the threat, school officials and the Upper Darby Police called Sun’s host family to inform them of the alleged threat. Thereafter, Sun’s host-mother told police that she hired an attorney for Sun, returned home from work, and removed numerous items from Sun’s bedroom, placing them into a black duffel bag. She then allegedly brought this duffel bag to the attorney she had spoken with earlier in the day. According to the complaint, the duffel bag was later given to law enforcement and was found to contain the following:
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- One semiautomatic pistol, comprised of a Glock 19 9mm upper component (slide, recoil spring, and barrel) bearing serial number BESE280, and a Polymer80 brand lower component (frame) with no serial number;
- 44 rounds of 9mm Aguila ammunition;
- 615 rounds of 9mm Blazer Brass ammunition;
- 225 rounds of 12 gauge Federal shotgun ammunition;
- 280 rounds of 5.56mm IMI Systems ammunition; and
- 423 rounds of 7.62 x 39mm TulAmmo ammunition.
Upper Darby Police officers also executed a search warrant at Sun’s residence and seized from Sun’s bedroom: 20 rounds of 9mm Blazer Brass ammunition; one ballistic suit, including a vest, jacket and pants; one cross bow; seven arrows; and various firearm accessories and shooting equipment. Sun has been in custody in Delaware County since his arrest by Upper Darby police in March.
If convicted, the defendant faces a maximum possible sentence of ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.
“Thanks to the tremendous work of our local, state, and federal partners, a potential school tragedy was prevented,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Homeland Security Investigations will continue to support all of our law enforcement partners to ensure the safety and security of our communities.”
The case was investigated by Homeland Security Investigations, the Upper Darby Police Department and the Delaware County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Sarah M. Wolfe.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
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Elkins Woman Sentenced to over 3 Years in Federal Prison for Theft by Bank EmployeeRead the Press Release
Fayetteville, Arkansas –Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Erica L. Keller, age 39 of Elkins, Arkansas, was sentenced today to 37 months in federal prison followed by five years of supervised release, and ordered to pay $354,054.85 in restitution on one count of Theft, Embezzlement, or Misapplication by Bank Officer or Employee. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in October 2013, after an incident concerning unauthorized activity on a customer’s loan account, an investigation and review of all loan accounts managed by Keller was initiated at the bank where she worked as a Loan Officer. Following the initiation of the bank’s internal fraud investigation, agents with the Federal Bureau of Investigation and Federal Deposit Insurance Corporation joined the investigation into Keller’s actions. The investigation revealed that Keller, among other things, took cash withdrawals from customer loan accounts at origination; falsified disbursement tickets to withdraw cash from customer loan accounts, savings accounts, and demand deposit accounts; she originated false loans and received the proceeds; Keller misapplied customer loan payments to conceal fictitious loans; and she withdrew funds from customer’s bank accounts to pay on fictitious or inflated loans.
The investigation was conducted by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Drug Dealer from Carlsbad Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jason R. Cunningham, 38, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 87 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Cunningham was arrested on Oct. 4, 2017, on an indictment charging him with distributing methamphetamine on Sept. 27, 2016, in Eddy County, N.M. Cunningham entered a guilty plea to the indictment on Dec. 7, 2017, without the benefit of a plea agreement.
According to a court filing, Cunningham was a well-known narcotics trafficker in the Carlsbad area and a self-admitted street level dealer. He reportedly played a vital role in furthering drug trafficking operations in Carlsbad by directing others in selling drugs after obtaining large quantities of methamphetamine, which he broke down into smaller amounts for further distribution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force and was prosecuted by Assistant U.S. Attorneys Clara N. Cobos and Renee L. Camacho.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Department of Justice Files Complaint Against California Hand Sanitizer Company Marketing Unapproved New DrugsRead the Press Release
The United States filed a civil complaint to enjoin a California company from distributing hand sanitizer products that are unapproved new drugs, the Justice Department announced today.
The complaint, filed June 6, 2018, seeks to enjoin defendants Innovative BioDefense, Inc., of Lake Forest, California and its President and Chief Executive Officer, Colette Cozean, from distributing “Zylast” antiseptic hand sanitizer products that qualify as unapproved new drugs under the Federal Food, Drug, and Cosmetic Act. According to the complaint, the defendants market various Zylast products as being effective against, among other things, infection by pathogens such as the norovirus, rhinovirus, rotavirus, flu virus, Methicillin-Resistant Staphylococcus Aureus bacteria and Ebola virus, despite a lack of proof of the products’ safety and effectiveness for such uses and no approval from the U.S. Food and Drug Administration (FDA). The Zylast product line includes Zylast Broad Spectrum Antimicrobial Antiseptic, Zylast XP (Extended Protection) Antiseptic Lotion and Zylast XP (Extended Protection) Antiseptic Foaming Soap.
The Justice Department filed the complaint in U.S. District Court for the Central District of California at the request of the FDA.
“Consumers deserve confidence that the drugs they use are safe and effective,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to ensure that manufacturers do not circumvent the drug approval process.”
The defendants distribute their Zylast products through the internet directly to consumers. According to the complaint, the Zylast website, www.zylast.com, features a “Buy Now” button that links consumers to a second website, zylastdirect.com, where customers can purchase the products. The complaint further alleges that the Zylast products are misbranded because the second website contains the false and misleading claim that FDA considers Zylast’s active ingredient “safe and effective in open wounds” and “safe and effective for first aid” when FDA has not made such determinations.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by Trial Attorney Douglas Ross of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Yen Hoang of FDA’s Office of the Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Dearborn Woman Sentenced for Role in Sexual Abuse and Exploitation of a ChildRead the Press Release
GREAT FALLS - The United States Attorney's Office announced that during a federal court session in Great Falls, on June 6, 2018, before U.S. District Judge Brian Morris, MICHELLE ANDRA JOYNER also known as Michelle Dumond, a 46-year-old resident of Dearborn, Montana, was sentenced to a term of:
•Prison: 300 months
•Special Assessment: $100
•Forfeiture: computer, tablet and cell phone
•Supervised Release: 10 years
JOYNER was sentenced in connection with her guilty plea to sexual exploitation of children (production of child pornography). Her common law spouse, Timothy Weaver, was sentenced in federal court on May 29, 2018. Weaver was imprisoned for 500 months for his role in the crimes. JOYNER and Weaver sexually exploited a child. The case stemmed from a Cascade County Sheriff’s Office child sex abuse investigation that began in August 2016. The Sheriff’s Office searched digital devices and determined that JOYNER and Weaver sexually abused a child for a number of years and took images of the abuse.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that JOYNER will likely serve all of the time imposed by the court. In the federal system, JOYNER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The case was prosecuted by Assistant U.S. Attorney Cyndee L. Peterson. This case was a cooperative investigation between the Cascade County Sheriff’s Office and the Homeland Security Investigations. Both agencies are members of the Montana Internet Crimes Against Children Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Connecticut Man Pleads Guilty to Trafficking in Endangered Sperm Whale TeethRead the Press Release
John “Jake” Bell, a resident of Lakeville, Connecticut, pleaded guilty today to illegally trafficking teeth from endangered sperm whales. The guilty plea was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division.
Bell pleaded guilty today in Boston before U.S. District Judge Mark L. Wolf, for the District of Massachusetts, to one count of wildlife trafficking in violation of the Lacey Act. As part of his plea, Bell admitted that in November 2004, while in the Ukraine, he sold approximately 34 sperm whale teeth to a co-conspirator who resided in Nantucket, Massachusetts, for $11,600. Bell shipped the 34 teeth in multiple boxes from the Ukraine to an associate in Connecticut, from where his co-conspirator retrieved them. Bell’s co-conspirator was convicted in 2010, after a jury trial, and sentenced to a 33-month term of imprisonment.
According to the indictment, Bell acquired the teeth and smuggled them into the United States. Bell, who was an artist and scrimshander, carved some of the teeth he sold, but also sold uncarved teeth to customers. According to papers filed in federal court, between July 2005 and June 2006, Bell smuggled in excess of 49 pounds of sperm whale teeth into the United States, valued in excess of $26,000. Also, according to these filings, between June 2007 and April 2008, Bell sold nine carved teeth to customers in the United States, with a total value of $20,300.
“Sperm whale teeth can weigh over two pounds each and are alluring to many collectors. But gone are the days when people can buy, sell and trade parts harvested from protected creatures like the sperm whale. This amazing creature is safeguarded from exploitation by federal laws like the Endangered Species Act and Marine Mammal Protection Act as well as international treaties,” said Acting Assistant Attorney General Wood. “Today’s guilty plea demonstrates that those who attempt to profit from the illegal trade of endangered species will face the consequences for their actions under law.”
“Federal law provides great protection to the marine mammals that live in our waters," said Director James Landon for NOAA's Office of Law Enforcement (OLE). "OLE is dedicated to enforcing those laws and seeing that those who violate them are held accountable for their illegal actions."
The Marine Mammal Protection Act and Endangered Species Act protect sperm whales and, among other things, prohibits their parts from being sold in interstate or foreign commerce or imported into the United States without a permit. In addition, the Lacey Act creates penalties for knowingly trafficking or importing wildlife and parts from wildlife like sperm whales, and United States customs laws prohibit importing merchandise like sperm whale parts knowingly in violation of the law or federal regulations.
The investigation was handled by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement and the Justice Department’s Environmental Crimes Section. The government is represented by Trial Attorneys Erica Pencak and Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Columbus Man Sentenced for Cyberstalking Local Law Enforcement OfficerRead the Press Release
COLUMBUS, Ohio – William E. Young, 54, of Columbus, was sentenced in U.S. District Court today to 55 months in prison for cyberstalking.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by U.S. District Judge Michael H. Watson.
According to court documents, Young was arrested in October 1999 for menacing by stalking a female in Delaware County, Ohio. He has continuously harassed and stalked one of his arresting officers since the time of his arrest and conviction.
Young created webpages using the victim’s name in order to make derogatory statements about the victim and his official position.
He mailed letters on numerous occasions to the victim’s wife and family, neighbors, physician, barber, church, church pastor and pastor’s wife, as well as to Ohio Wesleyan College, Delaware City Hall, the Delaware Chamber of Commerce, the Delaware City Mayor, Delaware City Council members, the Delaware Police Department, the Delaware County Sheriff’s Office, the Delaware County Jail, the Arapahoe County Prosecutor’s Office and other local community businesses.
A 62-page letter mailed in September 2015 to the victim’s spouse stated: “I’ll force his hand if the powers that be make the mistake of coming after me again. Then I’ll take everyone down who had a hand in what was done to me one by one.”
As part of his effort to harass and intimidate, Young filed multiple state and federal civil lawsuits against the victim and another arresting officer from Young’s 1999 arrest, and the Delaware Police Department, alleging various claims of corruption and fraud.
Young was indicted by a federal grand jury in August 2017 and pleaded guilty in January 2018. In April 2018, the defendant filed a motion to withdraw his guilty plea, which the Court thereafter denied.
“Young engaged in a campaign to harass and intimidate the victims of this case for nearly two decades,” U.S. Attorney Glassman said. “He sent at least 60 letters and mail on separate occasions, and created four separate websites to further his stalking activity. His deliberate, relentless stalking and the harm to the victims from his crime warrants the sentence he received today.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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Cleveland man indicted for his role in three armed bank robberiesRead the Press Release
A Cleveland man was indicted for his role in three armed bank robberies.
Aaron Nickerson, 22, was indicted on three counts of armed bank robbery and two counts of using a firearm during a crime of violence.
Nickerson was involved with others in the armed robberies of the U.S. Bank on Richmond Road in Warrensville Heights on Jan 18; the Ohio Savings Bank on Richmond Road in Richmond Heights on Feb. 6 and the US Bank on Forest Hills Boulevard in East Cleveland on Feb. 20, according to the indictment.
“This defendant put countless lives at risk when he and his associates used firearms to rob banks,” U.S. Attorney Justin E. Herdman said. “We continue to work with our law enforcement partners to prioritize violent crime and prosecute those who harm our community.”
“This individual engaged in violent bank robberies that threatened the lives of bank customers, employees, and our citizens,” said FBI Special Agent in Charge Stephen D. Anthony. “The Cleveland FBI, in partnership with East Cleveland Police Department, Warrensville Heights Police Department, Richmond Heights Police Department and Euclid Police Department, are committed to pursuing and prosecuting those who commit such dangerous acts.”
This case were investigated by the Federal Bureau of Investigation and the police departments of Warrensville Heights, Euclid, Richmond Heights and East Cleveland, and the Cuyahoga County Prosecutor’s Office Crime Strategies Unit. It is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted for armed robbery of bank on Puritas AvenueRead the Press Release
A Cleveland man was indicted for his role in an armed bank robbery.
Devon Hawkins-Walker, 22, was indicted on one count of armed bank robbery and one count of using a firearm during a crime of violence.
Hawkins-Walker was involved with others in the armed robbery of the Citizens Bank on Puritas Avenue in Cleveland on Jan. 31, according to the indictment.
This case was investigated by the Federal Bureau of Investigation and Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man convicted of domestic violence indicted in federal court for having a firearmRead the Press Release
A Cleveland man previously convicted of domestic violence was indicted in federal court for having a firearm, U.S. Attorney Justin E. Herdman said.
Elijah Harder, 23, was indicted on one count of being a prohibited person in possession of a firearm.
Harder possessed a Derringer Corp. GE, Model CB9, pistol on May 8 after having been convicted in 2015 in Cleveland Municipal Court of domestic violence.
“People convicted of domestic violence are prohibited by law from having a firearm,” Herdman said. “We know those who have hit a loved one are more likely to use a firearm against that person or against law enforcement. We will continue to work with local police and prosecutors are get guns out of the hands of domestic abusers.”
Assistant U.S. Attorney Kathryn G. Andrachik is prosecuting the case following an investigation by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge 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.
California Man Sentenced to 10 Years in Prison for Traveling to Thailand and Sexually Abusing Minor BoysRead the Press Release
A Los Angeles resident was sentenced today to 10 years in prison for two child exploitation offenses, including engaging in illicit sexual conduct in foreign places and traveling in foreign commerce for the purpose of engaging in illicit sexual conduct, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Joseph Macias of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Los Angeles.
Paul Alan Shapiro, 71, a retired auto dealership employee, pleaded guilty one day before he was set to go on trial on July 24, 2017. Under the terms of the plea agreement, Shapiro will serve 10 years in federal prison, 20 years of supervised release following his prison sentence, and will pay $20,000 total to two victims, both of whom are citizens of the Kingdom of Thailand. U.S. District Court Judge Dolly M. Gee of the Central District of California presided over today’s sentencing.
According to plea documents, Shapiro traveled from Los Angeles to Thailand on numerous occasions over the past 20 years, and engaged in sexual acts with male boys under the age of 16 on multiple occasions. On at least two occasions in September 2012, Shapiro paid minors as young as 13 years old small amounts of local currency in order to engage in various sex acts with them. According to other documents filed in the case, Shapiro photographed these encounters of himself engaging in sexually explicit conduct with the boys.
HSI conducted the investigation. Trial Attorneys Austin M. Berry and Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
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 http://www.justice.gov/psc.
California Man Sentenced to 10 Years in Prison for Traveling to Thailand and Sexually Abusing Minor BoysRead the Press Release
WASHINGTON – A Los Angeles resident was sentenced today to 10 years in prison for two child exploitation offenses, including engaging in illicit sexual conduct in foreign places and traveling in foreign commerce for the purpose of engaging in illicit sexual conduct, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Joseph Macias of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Los Angeles.
Paul Alan Shapiro, 71, a retired auto dealership employee, pleaded guilty one day before he was set to go on trial on July 24, 2017. Under the terms of the plea agreement, Shapiro will serve 10 years in federal prison, 20 years of supervised release following his prison sentence, and will pay $20,000 total to two victims, both of whom are citizens of the Kingdom of Thailand. U.S. District Court Judge Dolly M. Gee of the Central District of California presided over today’s sentencing.
According to plea documents, Shapiro traveled from Los Angeles to Thailand on numerous occasions over the past 20 years, and engaged in sexual acts with male boys under the age of 16 on multiple occasions. On at least two occasions in September 2012, Shapiro paid minors as young as 13 years old small amounts of local currency in order to engage in various sex acts with them. According to other documents filed in the case, Shapiro photographed these encounters of himself engaging in sexually explicit conduct with the boys.
HSI conducted the investigation. Trial Attorneys Austin M. Berry and Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
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 http://www.justice.gov/psc.
Butte Methamphetamine Supplier Sentenced to Federal PrisonRead the Press Release
GREAT FALLS – Iran Michael Kesselman, a 72-year-old former Las Vegas resident, was sentenced today to 104 months in prison followed by 3 years supervised release after pleading guilty to conspiracy to possess with the intent to distribute methamphetamine on September 10, 2013. U.S. District Judge Brian M. Morris handed down the sentence.
Kesselman trafficked methamphetamine to Butte, Montana, and other locations, from February 2008 until July 2012. Money was transferred to Kesselman, then he shipped methamphetamine to Montana using Federal Express. Two Butte methamphetamine dealers traveled to Las Vegas to obtain methamphetamine from Kesselman. In Spring 2012, Kesselman rented a motel room in Butte where two to three and perhaps as much as 20 ounces of methamphetamine were sold. In July 2012, Kesselman and his driver traveled from Las Vegas to Butte with 111.35 grams of actual methamphetamine hidden in a Coco Crispy cereal box. The defendant was held responsible for possessing with the intent to distribute 117.55 grams of actual methamphetamine. That converts to 936 individual doses of the drug.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Southwest Montana Drug Task Force.
Bradenton Drug Dealer Sentenced to PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Tony Marvin Johnson (34, Bradenton) to 10 years and 10 months in federal prison for possession of cocaine with intent to distribute. He had pleaded guilty on December 7, 2017.
According to court documents, on June 15, 2017, the Drug Enforcement Administration and the Manatee County Sheriff’s Office conducted surveillance of known narcotics trafficking locations in Manatee County, during which they observed a white Buick sedan leaving a suspected drug house and determined that the registered owner of the car had a suspended driver’s license. As officers attempted to initiate a traffic stop, the vehicle kept moving. When it finally stopped, Michael Bernard Code exited the passenger side of the car carrying a black object and fled on foot. Johnson, the driver, was patted down for weapons, during which a a pill bottle containing approximately 8.5 grams of a white substance was found. The substance field-tested positive for cocaine. Officers also recovered $237 from a fanny-pack that was strapped to Johnson’s waistband and another $207 from his front pants’ pockets.
Shortly thereafter, Code returned to the vehicle and was detained. Witnesses advised law enforcement that they saw Code throw objects on the ground in two separate locations. A search of those locations revealed a black magnetic type box containing the following: a digital scale, plastic baggies containing Xanax pills, approximately 13.5 grams of suspected fentanyl, 13 smaller baggies with suspected fentanyl weighing approximately 8.2 grams, and another baggy containing 26 individual small baggies, containing an off-white powdery substance weighing approximately 5.7 grams. The white substance field-tested positive for cocaine. The suspected fentanyl later lab-tested positive for MDMA.
Code later told law enforcement that Johnson had told him to run from the car and get rid of the objects. Code also stated that he “tested” narcotics for Johnson. Johnson told agents that he sold crack cocaine to support his mother.
This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale. This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Berkeley County woman admits to her role in a heroin and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Crystal Lyn Lewis, of Martinsburg, West Virginia, has admitted to heroin and fentanyl distribution, United States Attorney Bill Powell announced.
Lewis, age 28, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Lewis admitted to distributing fentanyl in January 2017 in Jefferson County.
Lewis faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Jefferson County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bella Vista Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Eliseo Alvarez Jr. age 28, of Bella Vista, Arkansas, was sentenced today to 120 months in federal prison, followed by five years of supervised release. Alvarez Jr. was also ordered to pay a $1,900.00 fine on one count of Distribution of More than 50 grams of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in July 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, Homeland Security Investigation (HSI) and the Drug Enforcement Administration, (DEA) identified Alvarez Jr. as a methamphetamine source of supply of methamphetamine. During the investigation, agents were able to purchase multiple ounces of methamphetamine from Alvarez Jr. utilizing a confidential informant. The suspected methamphetamine purchased was sent to the DEA South Central Lab for testing. The results confirmed that the substance was in fact a mixture of substance that contained 169.7 grams of actual methamphetamine.
Alvarez Jr. was indicted by a federal grand jury in December 2017 and pled guilty in February 2018.
This case was investigated by HSI and the DEA. Assistant United States Attorney Brice White prosecuted the case for the United States.
Attorney General Sessions announces 311 new Assistant United States Attorney positionsRead the Press Release
Largest increase in AUSA’s in decades, allocates four prosecutors to the Southern District of Indiana to focus on violent crime and civil drug enforcement.
PRESS RELEASE
INDIANAPOLIS– Attorney General Jeff Sessions and Josh J. Minkler, U.S. Attorney for the Southern District of Indiana (SDIN), 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.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys (AUSA’s) 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."
Today, the Department announced its allocation of three AUSAs to focus on violent crime and one AUSA to tackle civil opioid enforcement needs in SDIN.
“Two of our top priorities are reducing gun violence and meeting the challenge of the opioid epidemic in this district,” said Minkler. “This needed addition of AUSAs allows our office to address the district’s biggest threats head on and Hoosiers will soon be able to see real positive results. The number of shootings must decrease and Indiana will be the most inhospitable place in the country to push pills. Our neighbors and community deserve nothing less.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This allocation of additional AUSAs will support the office’s firm commitment to collaborate with federal and local law enforcement agencies to prosecute more violent offenders in the district’s most violent geographic areas. In addition, this allocation will support the office’s promise to pursue civil and criminal remedies against those doctors, pharmacies, and medical providers who are furthering the opioid epidemic by illegally diverting pills for their own profit. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 2.1, 2.2, 2.3 2.11, 3.6.
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15 Members of Brooklyn Drug Trafficking Crew Charged in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging members of a Brooklyn drug trafficking organization known as the “Boss Crew” with narcotics and firearms offenses. Fifteen members of the organization, including TYSHAWN BURGESS, a/k/a “Ty,” a/k/a “Ty Black,” LLOYD GORDON, a/k/a “LG,” LARRY BAYER, a/k/a “L,” KERRY FELIX, a/k/a “Mack,” DEVONTAE NEWTON, a/k/a “D-Block,” a/k/a “Sneeze,” TYRELL SUMPTER, a/k/a “Rell,” a/k/a “Ruger,” MAURICE CURTIS, a/k/a “Mo,” TYQUAN ROBINSON, a/k/a “Blacko,” TYREEK OGARRO, a/k/a “Reek,” DARREN MILLER, a/k/a “Dice,” a/k/a “Darren Thomas,” ERNEST MURPHY, a/k/a “Problem G,” a/k/a “E,” RAMAL CURTIS, a/k/a “Rah,” KELLY ROYSTER, a/k/a “KK,” ROBERT RHODES, a/k/a “Charlie,” and KAEMAR WILSON, a/k/a “K,” are charged with participating in a conspiracy to distribute crack cocaine and heroin from 2015 to May 2018. In addition, BURGESS, FELIX, NEWTON, SUMPTER, CURTIS, ROBINSON, and WILSON are also charged with possessing firearms in furtherance of the narcotics conspiracy. Fourteen defendants were arrested this morning and will be presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court this afternoon. WILSON is in custody on state charges and will be transferred to federal custody. The case has been assigned to United States District Judge Richard J. Sullivan.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants were members of a street gang that terrorized a Brooklyn neighborhood with their drug dealing and violence. Law enforcement has no more important duty than keeping our citizens safe. These arrests demonstrate our continued commitment to protecting communities that are victimized by gang and gun violence.
ATF Special Agent-in-Charge Ashan M. Benedict said: “Burgess and his co-conspirators as alleged in the Indictment ran an organized ring of narcotics dealers associated with acts of violence on the streets of Brooklyn. ATF remains steadfast in its commitment to protecting the public from violent individuals, groups and gangs looking to do harm to fellow citizens. I would like to thank the Special Agents and Task Force Officers of the NYPD/ATF Joint Firearms Task Force, the NYPD Gun Violence Suppression Division, and HSI. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
NYPD Commissioner James P. O’Neill said: “In collaboration with our federal partners, we will remain steadfast in our fight against those who traffic in illegal narcotics and the violence so often associated with it. Today’s charges emphasize the highly efficient working relationship NYPD detectives enjoy with ATF investigators and attorneys at the Southern District.”
As alleged in the Indictment[1] unsealed in Manhattan federal court today:
The defendants were members of a drug trafficking organization (the “Boss Crew DTO”) that distributed significant quantities of narcotics, including crack cocaine and heroin, on a daily basis, in and around the Bedford Stuyvesant neighborhood of Brooklyn, New York. TYSHAWN BURGESS, a/k/a “Ty,” a/k/a “Ty Black,” was the leader of the Boss Crew DTO. BURGESS supervised other members of the Boss Crew DTO, coordinated the supply of narcotics to other drug dealers within the Boss Crew DTO, and referred drug customers to members of the Boss Crew DTO for sales. LLOYD GORDON, a/k/a “LG,” and DARREN MILLER, a/k/a “Dice,” a/k/a “Darren Thomas,” supplied wholesale quantities of crack cocaine to members and associates of the Boss Crew DTO for street-level distribution. LARRY BAYER, a/k/a “L,” and ERNEST MURPHY, a/k/a “Problem G,” a/k/a “E,” maintained narcotics and narcotics paraphernalia at the Boss Crew DTO’s stash location, and packaged the narcotics for street-level distribution. TYREEK OGARRO, a/k/a “Reek,” RAMAL CURTIS, a/k/a “Rah,” KELLY ROYSTER, a/k/a “KK,” and ROBERT RHODES, a/k/a “Charlie,” purchased and facilitated the purchase of wholesale quantities of narcotics from members of the Boss Crew DTO for distribution. TYRELL SUMPTER, a/k/a “Rell,” a/k/a “Ruger,” TYQUAN ROBINSON, a/k/a “Blacko,” LARRY BAYER, a/k/a “L,” KERRY FELIX, a/k/a “Mack,” DEVONTAE NEWTON, a/k/a “D-Block,” a/k/a “Sneeze,” and MAURICE CURTIS, a/k/a “Mo,” functioned as street level distributors for the Boss Crew DTO.
In addition, BURGESS, FELIX, NEWTON, SUMPTER, CURTIS, ROBINSON, and WILSON, possessed and used firearms to protect the Boss Crew DTO’s narcotics trafficking operation.
* * *
BURGESS, 24, GORDON, 47, BAYER, 25, FELIX, 23, NEWTON, 19, SUMPTER, 23, CURTIS, 24, ROBINSON, 27, OGARRO, 26, MILLER,50, MURPHY, 28, RAMAL CURTIS, 31, ROYSTER, 39, RHODES, 33, and WILSON, 33, are charged with conspiring to distribute, and possess with the intent to distribute, 280 grams and more of crack cocaine and 100 grams and more of heroin, which carries a mandatory minimum sentence of ten years in prison and a maximum sentence of life in prison. BURGESS, FELIX, NEWTON, SUMPTER, CURTIS, ROBINSON, and WILSON, are charged with possession of a firearm in furtherance of a narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of five years in prison.
Mr. Berman praised the outstanding investigative work of the NYPD and ATF.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Karin Portlock is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 5 June 2018
Woodbury Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Good News Restaurant and Bar (“Good News”) in Woodbury to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with physical disabilities alleging that the restaurant did not meet the ADA’s requirements for accessibility. The restaurant is in the process of making the changes required by the settlement agreement, including ensuring the availability of accessible parking, creating an accessible entrance and providing an accessible entry route to the new accessible entrance, constructing an accessible restroom, increasing accessible seating within the restaurant, bar and patio area, and ensuring that the route to the patio area is accessible. Good News will continue to make improvements over the next eighteen months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the owners of Good News have worked with the U.S. Attorney’s Office in a collaborative manner to address the ADA issues complained of without the need for litigation.
“Our office is committed to enforcing the ADA, and we appreciate that the Good News Restaurant and Bar has agreed to take the steps outlined in the settlement agreement in order to greatly increase the accessibility of the restaurant,” said U.S. Attorney Durham.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Vallejo Man Indicted for Unlawful Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — On May 17, 2018, a federal grand jury returned an indictment against Danny Lee Rhines, 34, of Vallejo, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced. The indictment was unsealed on June 1, and Rhines was arraigned before U.S. Magistrate Judge Edmund F. Brennan on June 4.
According to court documents, in March 2018, officers observed Rhines driving a Nissan Altima and tried to pull him over. Rhines, who was the driver and sole occupant, ran a red light and attempted to flee the police, but eventually came to a stop and was apprehended. Officers found a Ruger .22-caliber pistol in the Altima. Rhines has previously been convicted of a felony and is prohibited by federal law from possessing firearms.
This case is the product of an investigation by the FBI Solano County Violent Crimes Task Force and the Fairfield Police Department. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, Rhines faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Recovers $600,000 in Federal Natural Gas Royalty False Claims Act SettlementRead the Press Release
DENVER - The United States Attorney for the District of Colorado, Bob Troyer, today announces the recovery of $600,000 as settlement of allegations that Great Western Drilling Corporation ("GWD") violated the federal False Claims Act by failing to pay money owed on natural gas produced from federal leases located in New Mexico.
Congress has authorized federal lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced from those leases. Each month, companies are required to report to the Department of the Interior's Office of Natural Resources Revenue ("ONRR") the amount of royalty that is due. While the lessee is permitted to deduct certain post-production costs from its federal royalty payment, the lessee is required to place the gas in marketable condition at no cost to the United States.
The Settlement Agreement resolves contentions by the United States that GWD underreported and underpaid federal royalties due from July 2010 through June 2016. During this time, GWD received a lower sales price from its third-party purchasers because those purchasers paid the natural gas processer, Enterprise Processing, for the transportation, compression, and processing of GWD's gas. GWD did not credit the United States for the portion of the price reduction that related to the Enterprise Processing costs to place the gas in marketable condition. Instead, GWD paid royalties only on the decreased purchase price. In this way, the United States contends, GWD knowingly underreported and underpaid royalties owed to ONRR.
"We don't tolerate these games, and will continue to purse, and get every dollar due from, companies that underpay royalties," said United States Attorney Bob Troyer.
Ron Gonzales, Special Agent in Charge of the Office of Inspector General's Energy Investigations Unit stated, "This settlement is the result of Federal agencies working collaboratively and diligently to ensure that revenues generated from public resources are accounted for on behalf of the American taxpayers. The OIG is committed to work with DOJ, ONRR, and our Office of the Solicitor to support the Department's revenue collection programs."
Geary Keeton, Program Manager for Enforcement with ONRR stated, "ONRR works closely with the OIG and DOJ to help ensure that we collect every dollar due the American people."
The United States Attorney's Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today's recovery, including the Office of Natural Resources Revenue, the Department of the Interior's Office of the Solicitor, and the Energy Investigations Unit of the Department of the Interior's Office of Inspector General. The United States Attorney's Office in Denver, Colorado works closely with these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang of United States Attorney's Office in Denver, Colorado.United States Attorney’s Office Outreach Programs Reach 15,000Read the Press Release
PROVIDENCE, RI – Approximately 15,000 high school and middle school students, teachers, school administrators and parents across Rhode Island participated in outreach programs this school year presented by the United States Attorney’s Office. The programs focus on opioid and illegal narcotic addiction awareness, the increasing impact on teenagers from e-cigarettes and vaping, and the myths and realities of street gangs and violence.
The programs include 4 Legs to Stand On, a live performance drawing attention to addiction awareness and support presented by cast members of COAAST (Creating Outreach About Addiction Support Together); the powerful documentary Chasing the Dragon - an unscripted, real-life look at the devastation of opioid and heroin addiction; the emerging impact, including addiction, from the use of e-cigarettes and vaping; and Street Smarts, an interactive anti-gang and anti-violence program that delivers a powerful message to teenagers about the myths of getting involved in gangs, drug dealing and guns.
Over the past two school years, between 25,000 and 30,000 middle and high school students across Rhode Island have participated in outreach programs presented by the United States Attorney’s Office, in collaboration with Prevention Coalitions, Rhode Island Student Assistance Services, school administrators and community-based organizations.
“The problems of substance abuse and violent crime cannot be solved through arrest and prosecution alone. Prevention must be part of law enforcement’s response to these significant threats to public health and safety,” commented United States Attorney Stephen G. Dambruch. “Through our outreach programs, the United States Attorney’s Office educates and informs young people about the dangers of substance abuse and violence, providing them the information they need to make smart choices.”
In collaboration with the United States Attorney’s Office, COAAST’s 4 Legs to Stand On was presented to students at high schools in Barrington, Central Falls, Cranston, North Providence, Pawtucket, Portsmouth, Providence and Woonsocket. The play exposes the secrecy that shrouds many families while dealing with addiction or a serious illness. Through humor and realism contrasted against hypocrisy, this story invites the audience to take a seat at the dinner table while the family’s foundation is challenged as one family member struggles with cancer and another struggles with an opioid addiction. The play is followed by an open and thought provoking question and answer session with the performers and the founder of COAAST, they themselves touched in various ways by addiction.
For the second consecutive school year, the United States Attorney’s Office, in collaboration with Prevention Coalitions and school administrators, presented the powerful documentary Chasing the Dragon - an unscripted, real-life look at the devastation of opioid and heroin addiction. The video presentation was followed by the personal story of a local parent who lost her only child to opioid and heroin addiction, and an open and frank discussion with the audience about addiction, treatment and support. The program was presented in schools and in community settings in Coventry, Pawtucket and Warwick.
Additionally, United States Attorney’s Office Investigator David Neill, a retired Rhode Island State Police Major with an extensive background in investigating street level drug trafficking and the impact drug trafficking has on local communities, visited schools across Rhode Island to speak with students, teachers, administrators and parents on the inherent dangers, particularly for teenagers, from the use of e-juices, e-cigarettes and vaping. Mr. Neill provided demonstrations on marketing techniques aimed at teenagers to increase their interest in the use of these products, and the deceptive ways users carry the product, disguised as items such as thumb drives, markers and inhalers. Mr. Neill provided a total of 49 presentations in schools and community settings.
And again this school year, Assistant United States Attorney Richard W. Rose presented his Street Smarts program to high school students. Street Smarts is an interactive program which delivers a powerful message to teenagers about the myths and the realities about becoming involved in street gangs, drug dealing and the use of firearms.
School administrators, community leaders and community based organizations interested in additional information about these and other outreach programs provided by the United States Attorney’s Office, including civil rights, elder justice and crime victim support outreach programs, can contact Outreach Coordinator Jim Martin at (401) 709-5357 or investigator David Neill at (401) 709-5035.
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U.S. Attorney's Office to Hire Three Federal Prosecutors Following Newly-Allocated Positions Announced by the Justice DepartmentRead the Press Release
CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that the Western District of North Carolina will hire three Assistant U.S. Attorneys (AUSAs), following an announcement by the Justice Department regarding newly-allocated AUSA positions. Two AUSAs will focus on violent crime prosecutions, and one will join the Office’s Affirmative Civil Enforcement (ACE) unit, with a special focus on civil opioid enforcement.
“Reducing violent crime and tackling the opioid abuse epidemic are priority areas for my Office and the Justice Department,” said U.S. Attorney Murray. “The addition of three federal prosecutors will further our mission to seek justice and to keep the citizens of Western North Carolina as safe as collectively possible.”
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 AUSAs 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.”
U.S. Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
U.S. Attorney General Jeff Sessions and U.S. Attorney for the Middle District of Louisiana Brandon Fremin announced that the U.S. 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.
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 Middle District of Louisiana, two new AUSAs will focus on violent crime and another on civil enforcement.
U.S. Attorney Fremin stated, “This is yet another example of the commitment by the President and the U.S. Attorney General to reduce violent crime in our communities. Adding more capable and aggressive prosecutors to our ranks will allow us to strengthen our already robust efforts against those seeking to undermine the safety and security of our district. This should be a welcomed development for all honest and law-abiding residents of the district.”
Two illegal aliens indicted on a drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two men in the United States illegally were indicted today by a federal grand jury on drug charges, United States Attorney Bill Powell announced.
Hsun Jung Chang, age 29, and Shougi Li, age 24, are each charged with one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Marijuana,” and one count of “Aiding and Abetting Possession with Intent to Distribute Marijuana.” The men are accused of possessing marijuana in Ohio County in May 2018.
Each defendant faces up to five years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The West Virginia State Police and the Ohio County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Yonkers Men Arrested After High-Speed Car ChaseRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department, announced today the filing of federal criminal charges against HARRY QUINTANA-CRUZ and ALEJANDRO ORTIZ-CRUZ, both of whom were charged in a complaint with forcibly assaulting, resisting, and interfering with FBI Special Agents by colliding into their vehicle after a high-speed car chase. QUINTANA-CRUZ was also charged with being a convicted felon in possession of a firearm after a gun was found in an apartment where he resided. Both QUINTANA-CRUZ and ORTIZ-CRUZ will be presented today in White Plains federal court before the Honorable Judith C. McCarthy.
U.S. Attorney Geoffrey S. Berman said: “Thankfully, the FBI, the United States Probation Office, and the Yonkers Police Department put the brakes on this car chase quickly and safely. Quintana-Cruz and Ortiz-Cruz are now in custody and facing federal felony charges.”
FBI Assistant Director William F. Sweeney Jr. said: “We have a responsibility to the public to protect them from criminals who pay no heed to the danger they place innocent people in while trying to evade law enforcement. Luckily in this case, no one was hurt. We want to thank our law enforcement partners in this investigation, and appreciate their dedication to the safety of the community.”
Yonkers Police Commissioner Charles Gardner said: “This incident highlights both the dangers our law enforcement officers face every day, and the shared commitment the Yonkers Police Department has with our local and Federal partners in apprehending those individuals who dare to commit acts of violence in our communities. I applaud our officers, the FBI’s Westchester County Safe Streets Task Force, and the U.S. Probation Office for their exceptional efforts in making these arrests.”
According to the allegations in the Complaint unsealed in White Plains federal court:[1]
On June 1, 2018, QUINTANA-CRUZ fled on foot from officers of the U.S. Probation Office who sought to meet with him regarding non-compliance with the terms of his supervised release. After arranging for his brother, ORTIZ-CRUZ, to pick him up in a car, a high-speed police chase ensued with ORTIZ-CRUZ at the wheel. During the pursuit, the defendants’ vehicle drove through red lights, failed to stop at “Stop” signs, and proceeded in the wrong direction on one-way streets. At one point, the vehicle approached two law enforcement cars blocking an intersection, one of which was an FBI car. Instead of slowing down, the defendants’ vehicle rammed into the FBI car and continued driving for a few more blocks before finally stopping as a result of another collision. In addition to being charged with assaulting the officers effecting his arrest, QUINTANA-CRUZ is charged with being a convicted felon in possession of a firearm after a Springfield Armory .40 caliber pistol was found in an apartment where he resided. The investigation is continuing.
* * *
Both QUINTANA-CRUZ, 26, and ORTIZ-CRUZ, 18, of Yonkers, New York, are charged with one count of assaulting, resisting, and interfering with their arresting officers, which carries a maximum sentence of 20 years in prison. QUINTANA-CRUZ is also charged with one count of being a convicted felon in possession of a firearm, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the U.S. Probation Office, the Yonkers Police Department, and the FBI’s Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, the U.S. Probation Office, the Westchester County Department of Public Safety, the Westchester County District Attorney’s Office, the New York City Police Department, the Yonkers Police Department, the Peekskill Police Department, the Greenburgh Police Department, the Mount Vernon Police Department, and the New York State Police Department. Mr. Berman thanked the Westchester County District Attorney’s Office for its assistance in the arrest and apprehension of the defendants.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Sam Adelsberg is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two New Federal Prosecutors in Kansas Will Join New Prosecutors NationwideRead the Press Release
KANSAS CITY, KAN. – Two new federal prosecutor positions will increase resources to combat violent crime in Kansas, U.S. Attorney Stephen McAllister said today.
In the largest increase in decades, Attorney General Jeff Sessions announced today the Department of Justice is allocating 190 new Assistant United States Attorneys nationwide to increase prosecutions for violent crime. From that nationwide allocation, the District of Kansas will receive two new Assistant U.S. Attorney positions dedicated to fighting violent crime.
“The addition of two Assistant United States Attorney to prosecute violent crime in Kansas will make an immediate and significant impact on our efforts,” U.S. Attorney McAllister said. “The timing of these new prosecutorial resources could not be better. Our office is in the early stages of implementing Project Safe Neighborhoods 2.0, an initiative that targets communities where violence is a particular problem for additional federal investigations and prosecutions. We will do everything in our power to take the most violent offenders off the streets of Kansas communities. I thank the Attorney General and the leadership of the Department of Justice for providing these important prosecutorial resources to the District of Kansas.”
Attorney General Sessions said: “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. 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.”
Two Customs and Border Protection Officers Indicted, Another Pleads Guilty to Assaults on Fellow Officers at Newark AirportRead the Press Release
NEWARK, N.J. – Two Customs and Border Protection (CBP) officers were indicted and another pleaded guilty for their roles in the assaults of two fellow CBP officers at Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced today.
Parmenio I. Perez, 40, of Hawthorne, New Jersey, and Michael A. Papagni, 32, of Staten Island, New York, were charged by indictment today with two counts of forcibly assaulting, impeding, intimidating, and interfering with two CBP officers, identified in court documents as “Victim One” and “Victim Two,” while the victims were engaged in their duties as CBP officers. They will be arraigned at a later date.
Tito Catota, 38, of Lyndhurst, New Jersey, pleaded guilty June 4, 2018, before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of forcibly assaulting, impeding, intimidating, and interfering with Victim One and Victim Two while they were engaged in their duties as CBP officers. All three defendants were originally arrested and charged by complaint in September 2017.
According to documents filed in this case and statements made in court:
Catota, Perez, and Papagni were employed as CBP officers at Newark Liberty International Airport and were assigned to the Passenger Enforcement Rover Team (PERT). PERT was a CBP specialized unit that identified and intercepted passengers attempting to bring contraband into the United States or who might be associated with terrorist activities. PERT maintained an office on the second floor of Terminal C at Newark Liberty International Airport.
Victim One was assigned to PERT in October 2016. Within the first two weeks that Victim One worked in PERT, Papagni allegedly advised Victim One that the PERT office table was known as the “rape table” and threatened the victim that he would get him on it.
On Jan. 10, 2017, an individual identified in court documents as “CBPO 2” shut off the lights in the PERT office. Papagni, Catota, and another officer identified as “CBPO 3” grabbed Victim One’s arms and legs and threw him on top of the PERT office table. While Papagni, Catota, and CBPO 3 held him down, Perez got on top of Victim One’s mid-section and grinded his body up and down against Victim One’s genitals through the victim’s clothing in a motion simulating a sex act. Victim One unsuccessfully attempted to push Perez off his body. When Perez got off of Victim One, Papagni, Catota, and CBPO 3 released him.
On Nov. 30, 2016, Victim Two, who was assigned to the Port Director staff, went to the PERT office to speak to CBPO 1. A few minutes later, an officer identified as “CBPO 4” locked one of the doors to the office. Catota, Papagni, and Perez then grabbed Victim Two and threw him on his side on the PERT office table. Perez then allegedly simulated a sex act on Victim 2’s leg. Victim Two struggled to get free until Catota, Papagni, and Perez eventually released him.
At his plea hearing, Catota admitted that he and other CBP officers referred to the tables in the PERT office as the “rape table.” Catota also admitted helping grab Victim One and Victim Two, throwing them on the tables, and holding them down while they were attacked. In addition, Catota also admitted that he and other CBP officers discussed the assaults on the Whatsapp chat message service. For instance, on Dec. 7, 2016, Catota stated that another CBP officer had “walked out on the rape” when referring to the assault of Victim Two.
The charges against Perez, Papagni, and Catota each carry a maximum potential penalty of eight years in prison and a $250,000 fine.The charges and allegations against Perez and Papagni are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Office of Inspector General, New York Resident Office, under the direction of Special Agent in Charge Mark Tasky and U.S. Customs and Border Protection, Office of Professional Responsibility, New York Resident Office, under the direction of Special Agent in Charge Vance Kuhner, with the investigation leading to the indictment and guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division, and Rahul Agarwal, Deputy Chief of the Criminal Division in Newark.
Catota: Alan Zegas Esq., Chatham, New Jersey
Papagni: Chad Seigel Esq., New York
Perez: Lorraine Gauli-Rufo, Verona, New JerseyTwin Cities Construction Company Owner Pleads Guilty for Defrauding Investors Out of More Than $1 MillionRead the Press Release
United States Attorney Gregory G. Brooker announced the guilty plea of JESSE WELLS HAUG, 33, to one count of wire fraud. HAUG, who was charged in a superseding indictment on June 22, 2017, pleaded guilty yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, HAUG is the owner of a Twin Cities-based construction company called 7-10 Services, LLC. From 2015 through the end of 2016, HAUG executed a scheme to defraud investors by falsely representing to them that he would use their money to purchase and renovate residential real estate, and, in exchange, he would share the profits when the properties were re-sold, or “flipped.”
According to the defendant’s guilty plea and documents filed in court, during the course of the scheme, HAUG obtained $880,000 from two victim-investors to purchase and renovate residential properties located throughout the Twin Cities. During the course of HAUG’S interactions with the victim-investors, HAUG false documentation showing how the investment money was being used, false information about upcoming real estate closings and re-sales of properties HAUG claimed to have flipped, as well as fictional documents showing “returns” from the so-called investment properties. In reality, HAUG spent the investment money on personal expenses and never purchased or sold any of the properties.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorneys Kimberly A. Svendsen and Charles J. Kovats are prosecuting this case.
Defendant Information:
JESSE WELLS HAUG, 33
Rosemount, Minn.
Convicted:
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Springfield Woman, Nixa Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., woman and a Nixa, Mo., man were sentenced in federal court today for their roles in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Melody W. Carpenter, 35, of Springfield, and Anthony A. Hatfield, 34, of Nixa, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Carpenter and Hatfield were each sentenced to 10 years in federal prison without parole.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The leaders of the drug-trafficking conspiracy were Kenneth R. Friend, 47, of Springfield, and Kenna Harmon, 39, of Republic, Mo., who obtained pound amounts of methamphetamine from sources in Kansas City, St. Louis, and Oklahoma for distribution in the Springfield area. The investigation resulted in the indictment of 29 co-defendants. In total, the Friend/Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.
Both Carpenter and Hatfield pleaded guilty to participating in the conspiracy to distribute methamphetamine. Carpenter and Hatfield admitted they purchased methamphetamine from Friend and Harmon, which they distributed to others.
On Nov. 3, 2014, officers intercepted communications between Friend and Carpenter in which Carpenter appeared to be brokering a large methamphetamine transaction for Friend. Officers followed Friend and Carpenter to a residence in Springfield, then followed Friend and Carpenter back to Friend's residence. A short time later, Carpenter left Friend's house, and was detained by DEA agents. Agents seized approximately four to six ounces of methamphetamine from Carpenter and a loaded Davies Industries .380-caliber semi-automatic pistol. Carpenter told investigators she had just brokered a two-pound methamphetamine transaction between Friend and another conspirator.
During the course of the wiretaps in this case, hundreds of communications were intercepted between Carpenter and others where she was arranging methamphetamine transactions or financial transactions involving the payment for methamphetamine. During the conspiracy, Carpenter received ounce amounts of methamphetamine at least once per week and redistributed them in the Springfield area.
On Nov. 17, 2014, the DEA intercepted calls between Friend and Hatfield indicating that Hatfield was arranging to purchase a half pound of methamphetamine from Friend. Officers saw Friend and Hatfield meet at Bass Pro Shops in Springfield. They arrived in separate vehicles and Hatfield was seen getting into the vehicle with Friend. After Hatfield got out and drove off in his own vehicle, he was stopped by Springfield police officers. Officers found a half pound of methamphetamine (approximately 225 grams) under his driver's seat.
During another intercepted telephone call, Harmon and Hatfield discussed Harmon’s child finding a Crown Royal bag that contained approximately one pound of methamphetamine inside of it, which Hatfield had left in the child’s bedroom. At one point during the conversation, Harmon put her child on the phone to talk with Hatfield. Harmon and Hatfield agreed to meet at the Wal-Mart parking lot in Republic so that Hatfield could receive some of the methamphetamine back. Hatfield stated he would buy presents for Harmon’s children to make up for what happened. Harmon said she would bring the children along with her to the Wal-Mart parking lot to meet Hatfield so he could give them the presents.
Friend pleaded guilty on April 11, 2018, and awaits sentencing. Harmon pleaded guilty and was sentenced on May 29, 2018, to 21 years and six months in federal prison without parole.
Harmon’s husband, Daniel Harmon, was also a leader of the drug-trafficking conspiracy. In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine.
Carpenter and Hatfield are among 21 co-defendants who have been sentenced in this case. The remaining eight defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Springfield Man Pleads Guilty to Illegally Possessing Firearms and AmmunitionRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to being a felon in possession of firearms and ammunition.
Hector Navarro, 29, pleaded guilty two counts of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 6, 2018.
In September 2016, Navarro possessed a Mossberg, model 500, 12 gauge shotgun, and in October 2016, he possessed a Stoeger, model Cougar 8000, 9mm pistol; an Irwindale Arms Inc., model Automag III, .30 caliber pistol; a Coast to Coast, model CC660, 12 gauge shotgun; 12 rounds of 9mm ammunition; one round of .380 ammunition; and three rounds of .30 caliber ammunition.
Due to a prior conviction of a crime punishable by imprisonment for more than one year, Navarro is prohibited from possessing firearms.
The charge provides for a sentence of no greater than 10 years in prison, at least one year 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
South Carolina Man Pleads Guilty to Forced Labor for Compelling Man with Intellectual Disability to Work at RestaurantRead the Press Release
The defendant used violence, threats, isolation, and intimidation to compel victim to work seven days a week without pay at restaurant
Defendant Bobby Paul Edwards, 53, of Conway, South Carolina, pleaded guilty Monday in United States District Court for the District of South Carolina to one count of forced labor, admitting that he used violence, threats, isolation and intimidation to compel a man with an intellectual disability to work for over 100 hours a week without pay, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and United States Attorney Sherri A. Lydon of the District of South Carolina.
According to court documents, between 2009 and 2014, Edwards managed a restaurant in Conway, South Carolina, where the victim, identified in court documents as “JCS,” had worked since he was 12 years old. Once Edwards began managing the restaurant in 2009, he increased JCS’s duties, requiring him to work more than 100 hours per week. The defendant stopped paying JCS and began using violence, threats, isolation, and intimidation to compel victim JCS’s continued service. According to court documents and Edward’s admissions, he subjected JCS to abusive language, racial epithets, threats, and acts of violence that included beating JCS with a belt, punching JCS with his fists, hitting JCS with pots and pans, and burning JCS’s bare neck with hot tongs, in order to compel JCS to work faster or to punish JCS for mistakes.
The defendant compelled JCS to continue working under these conditions until October 2014, when authorities removed victim JCS from the premises after receiving complaints about the abuse.
“Human trafficking through forced labor can happen on farms, in homes, and as today’s case shows – in public places, such as restaurants,” said Acting Assistant Attorney General John Gore. “Edwards abused an African-American man with intellectual disabilities by coercing him to work long hours in a restaurant without pay. Combatting human trafficking by forced labor is one of the highest priorities of this Justice Department and today’s guilty plea reflects our commitment to seeking justice on behalf of victims of human trafficking.”
“This defendant abused a vulnerable victim, and today’s guilty plea holds the defendant responsible for his criminal acts,” said U.S. Attorney Sherri Lydon for the District of South Carolina.
Edwards faces a maximum of 20 years in prison for forced labor, a $250,000 maximum fine, and mandatory restitution to the victim. A sentencing date has not yet been scheduled. According to the terms of the plea agreement, the defendant will also be required to pay restitution to victim JCS in an amount to be determined at the time of sentencing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Special Litigation Counsel Jared Fishman, Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Alyssa Leigh Richardson of the District of South Carolina.
Saratoga Resident Convicted of Tax FraudRead the Press Release
SAN JOSE – A federal jury returned a verdict yesterday against Jyh-Chau “Henry” Horng, finding him guilty of two counts of filing false tax returns and one count of lying to the IRS during a 2010 audit, announced Acting United States Attorney Alex G. Tse and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. Horng’s wife, Meili “Ally” Lin, was also tried with respect to two counts of tax fraud; the jury failed to reach a verdict with respect to one count and acquitted Lin of the second count. The verdicts were delivered by the jury after a four-week trial before the Honorable Beth Labson Freeman, U.S District Judge.
Horng, 51, owned and operated an international trading business from his Saratoga home. The evidence at trial showed that Horng filed joint tax returns for 2006 and 2007 that underreported the couple’s income. In the 2006 tax return, Horng reported the couple’s income was only $232,116. In the 2007 tax return, Horng reported that the couple suffered a loss in the amount of $212,217. In addition, while the couple was under audit, Horng told an IRS auditor that the information in their loan applications were lies made up by their loan brokers and that the couple had no foreign bank accounts. The evidence demonstrated the reported income figures and Horng’s statements to the auditor were demonstrably false. During the same 2006-2007 period, the defendants purchased millions of dollars of real estate, reported on numerous loan applications annual income of over $1 million, invested over $5 million into a Milpitas shopping center, and spent over $350,000 using credit cards.
On January 28, 2015, a federal grand jury in San Jose indicted Lin and Horng on two counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1). Horng was also charged with one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2), and two counts of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. Lin also was charged with one count of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. The 18 U.S.C. § 1014 charges were severed prior to trial and will be tried in the future. The jury convicted Horng of all three charges at issue in the trial. Lin was acquitted of fraudulently filing the 2007 tax return, and the jury could not reach a verdict with respect to the 2006 tax return.
Horng is free on bail, pending sentencing. Judge Freeman has not yet scheduled his sentencing hearing. Horng faces a statutory maximum sentence of three years in prison for each false tax return and up to an additional five years in prison for lying to the IRS auditor. In addition to the prison terms, the court also may order Horng to serve an additional period of supervised release and to pay restitution and monetary penalties. However, any sentence 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.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Christopher Magnani are prosecuting the case with the assistance of Jonathan Deville. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Santan Man Sentenced to Prison for Lying to the Grand JuryRead the Press Release
PHOENIX – Yesterday, Alvaro Sabori, 43, of Santan, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Diane J. Humetewa to 18 months in prison. Sabori had previously pleaded guilty to false declaration to the grand jury.
On Oct. 23, 2016, a man was found dead on the side of the road in Sacaton, Ariz., from an apparent gunshot wound to the head. Based on information from a witness, Sabori was subpoenaed to testify before a federal grand jury regarding the investigation into this killing. Sabori lied to the grand jury about the shooting, which had occurred at his home earlier in the evening. One year later, Enrique Bandin was sentenced to 15 years in prison for the killing of that victim at Sabori’s home.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1482-PHX-DJH
RELEASE NUMBER: 2018-076_Sabori
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Recruiter Charged with Receiving Illegal Kickbacks from Local PharmacyRead the Press Release
HOUSTON – A 45-year-old Houston resident has been charged with conspiring to violate the federal anti-kickback statute and receiving at least $320,000 in illegal kickback payments from a local Houston pharmacy, announced U.S. Attorney Ryan K. Patrick.
Dontrey Lamon Eason turned himself in to law enforcement agents yesterday. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.
The criminal information, filed today, alleges Eason and another individual entered into an agreement with Piney Point Pharmacy to receive $5,000 along with 40% of the payments the pharmacy received from the Federal Employees Compensation Act health care benefits program (FECA). Eason allegedly solicited a physician in Corpus Christi to send prescriptions to the pharmacy. Eason also had access to patient and pharmacy records to check the status of referrals, according to the complaint.
Eason allegedly received $320,608 from Piney Point Pharmacy who billed the FECA program $2,082,996 for referred prescriptions.
Conspiracy to pay kickbacks carries a possible sentence of five years as well as a possible $250,000 maximum fine.
Piney Point Pharmacy was charged in January 2018 with numerous violations of federal law, including conspiracy, health care fraud, wire fraud and money laundering. Trial is set for Oct. 15, 2018.
This case was the result of a joint investigation with the U.S. Postal Service – Office of Inspector General (OIG), Department of Labor - OIG, Department of Veterans Affairs – OIG and Department of Homeland Security – OIG. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Rapid City Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Joseph Blue Bird, age 31, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 4, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Blue Bird was convicted of Abusive Sexual Contact in February 2014. As a result of this conviction, he is required to register as a sex offender. It is alleged that between December 10, 2017, and February 13, 2018, Blue Bird, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Polk County Woman Sentenced for Obtaining U.S. Citizenship by Fraud and False StatementsRead the Press Release
Tampa, Florida – United States District Judge Virginia M. Hernandez Covington today sentenced Enite Alindor (55), also known as Odette Dureland, to five months in federal prison for making false statements in a matter relating to naturalization and citizenship and for procuring naturalization as a United States citizen. As part of her sentence, the court also entered an order de-naturalizing her, thus revoking her July 2012naturalization as a United States citizen. A federal jury had found her guilty on March 1, 2018.
According to court documents, Alindor, a citizen of Haiti, applied for asylum with the Immigration and Naturalization Service (INS) in Miami in 1997. After the INS denied that application, the United States Immigration Court ordered her to be removed from the United States. Shortly thereafter, Alindor presented herself to the INS as Odettte Dureland and filed for asylum protection under that new identity. She concealed the fact that she had previously applied for status in the United States as Enite Alindor, and she concealed the fact that she was under a final order for removal from the United States. U.S. Citizenship and Immigration Services (USCIS) personnel, unaware of the Alindor identity and order of removal, approved Dureland for citizenship in July 2012, and she was naturalized as a U.S. citizen under that name in July 2012.
“Citizenship is the greatest immigration benefit our country can bestow,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI and our partners, like USCIS, will continue working together to protect the integrity of our legal immigration system and the opportunities it provides.”
“This is a perfect example of federal agencies working together to combat those trying to defraud the American people,” stated U.S. Citizenship and Immigration Services Tampa District Director, Michael Borgen. “USCIS will continue playing a key role to safeguard the integrity of our immigration system.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the USCIS Fraud Detection and National Security group in Tampa, and the USCIS Asylum Office in Miami. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Payroll Business Owner Pleads Guilty to Defrauding Ohio Bureau of Workers' CompensationRead the Press Release
COLUMBUS, Ohio – John R. Cacaro, 58, of West Chester, Ohio, pleaded guilty to wire fraud and money laundering as part of a scheme to defraud the Ohio Bureau of Workers’ Compensation for his own personal gain.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, and Jim Wernecke, Director, Ohio Bureau of Workers’ Compensation special investigations department, announced the guilty plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, between 2011 and 2013, Cacaro owned Employers Choice Plus, LLC, a company classified by the Ohio BWC as a Professional Employment Organization (PEO). A PEO is generally responsible for processing payroll and remitting insurance premium payments to the Ohio BWC on behalf of their client employers.
Specifically, on a weekly basis, more than 100 client companies would provide Cacaro’s company with payroll information. Employers Choice Plus then computed the amounts owed to employees, taxing authorities and the Ohio BWC. Employers Choice Plus sent weekly invoices to the client companies, who would then pay Employers Choice Plus electronically for Employers Choice Plus to pay the payroll, taxes and workers’ compensation. Cacaro’s company issued the employees’ paychecks, paid the taxing authorities and maintained the workers’ compensation premiums until they were due to be paid semi-annually.
On a semi-annual basis, Cacaro electronically reported to the Ohio BWC the payroll paid by each of his client employers, as well as the amount of workers' compensation premiums due based on the payroll.
Cacaro understated the payroll by millions of dollars, though, which resulted in a lesser amount of premiums owed to the Ohio BWC, despite having collected the correct amounts from its client employers. In total, Cacaro underreported more than $425,000 in workers’ compensation premiums.
Cacaro used the profits of scheme to fund lavish personal purchases, including a second residence in Naples, Fla. and a motor home.
As part of his plea agreement, he has agreed to pay the total amount of $425,246.58 in restitution.
“John Cacaro lined his pockets with the hard-earned money of his clients and systematically defrauded the Ohio BWC,” said Special Agent in Charge Korner. “Now he is a convicted felon and must repay the stolen money.”
“Anyone who cheats BWC to enrich themselves is driving up the cost of the whole system, and that hurts all of us,” said Director Wernecke. “It hurts employers who follow the law and play by the rules, and it hurts the injured workers who rely on us to help them get back to work and back to their lives as soon as safely possible.”
Wire fraud is a federal crime punishable by up to 20 years in prison and money laundering is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and the Ohio Bureau of Workers’ Compensation, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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