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Tuesday 5 June 2018
Eleven New Orleans and Houston Men Charged with Heroin Conspiracy and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that JUAN CARLOS MOSQUERA-AMARI, age 46, of New Orleans, ALEXANDER MURIEL-DIAZ, age 52, of Houston, Texas, LUIS RAMOS GRAVEDEPERALTA, age 60, of Kenner, CARLOS ALBERTO GONZALEZ VALENCIA, age 36, of Houston, Texas, STEVEN DUNCAN, age 45, of Metairie, JOSE ANTONIO VALVERDE-CHACON, age 37, of Houston, Texas, JOHN JONES, age 43, of New Orleans, HARVEY VICTORIA-CUELLAR, age 38, of Houston, Texas, RODNEY ROBINSON, age 60, of New Orleans, JAVIER CONTRERAS-CASTILLO, age 26, of Houston, and GERARD HARRISON, age 30, of New Orleans were charged in a four-count second superseding indictment with conspiracy to distribute heroin, in violation of Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. ROBINSON was charged with one count of distribution of heroin. JONES was also charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). HARRISON was also charged with possession of a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to the second superseding indictment, the defendants conspired with each other and others between July 19, 2017 and June 1, 2018, to distribute and to possess with the intent to distribute more than one kilogram of heroin.
In addition, according to the second superseding indictment, on April 5, 2018, JONES possessed three firearms, a Glock Model 27, .40-caliber semiautomatic firearm, a Ruger Model P89, 9mm firearm, and a Ruger Model SR22, .22 caliber firearm. JONES had previously been convicted in the United States District Court for the Eastern District of Louisiana of a felony offense.
Furthermore, the second superseding indictment charges that HARRISON possessed an Anderson Manufacturing Model AM-15 rifle and a Glock Model 22, .40-caliber firearm in furtherance of the drug conspiracy.
If convicted of the drug conspiracy, the defendants face a mandatory minimum of 10 years imprisonment, a maximum term of imprisonment of life, a fine of up to $10,000,000, at least 5 years of supervised release after imprisonment, and a mandatory $100 special assessment.
If convicted of distribution of heroin, ROBINSON faces a maximum penalty of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release after imprisonment, and a mandatory $100 special assessment.
If convicted of being a felon in possession of a firearm, JONES faces a maximum penalty of 10 years imprisonment, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
If convicted of possessing a firearm in furtherance of a drug trafficking crime, HARRISON faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of life, a fine of up to $250,000, up to five years of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that a second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty yesterday in federal court in Boston to illegally reentering the United States.
Orlando Genoa-Maldonado, 56, pleaded guilty to one count of illegally reentering the United States after being deported. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 30, 2018.
In February 2000, Genoa-Maldonado was convicted in federal court in Pennsylvania of distributing heroin. Upon completion of his sentence, Genoa-Maldonado was placed into removal proceedings, and on March 10, 2004, he was deported to the Dominican Republic. In May 2016, federal officials encountered Genoa-Maldonado at MCI Cedar Junction. Earlier that year, Genoa-Maldonado had been sentenced to nine-to-10 years for heroin trafficking. During an interview with law enforcement, Genoa-Maldonado admitted his status and prior deportation in 2004.
Genoa-Maldonado faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Deputy Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Detroit Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced yesterday to federal prison on drug and firearm charges, announced United States Attorney Mike Stuart. Fashawn “Chops” Cannon, 28, previously entered guilty pleas to distributing Oxycodone and using a firearm during and in relation to that crime. Cannon admitted that on November 17, 2017, he sold an Oxycodone tablet to a confidential informant in Hernshaw, West Virginia, and that he carried a Hi-Point, model C9, 9mm pistol when he made that sale. He was sentenced to a total of 78 months in prison -- 18 months on the distribution change to be served consecutively with a sentence of 5 years, or 60 months, on the firearm charge.
U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kanawha County Sheriff’s Office.
“The really bad news here is that Detroit drug dealers have found the small community of Hernshaw,” said United States Attorney Mike Stuart. “The good news is that Cannon will be spending quite a while in federal prison. Make no mistake, our focus is district-wide when it comes to aggressively prosecuting violent, out-of-state drug dealers that bring their criminal activities into West Virginia.”
Assistant United States Attorney Matt Davis was in charge of the prosecution. United States District Judge John T. Copenhaver, Jr. handed down the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Delaware County Convicted Murderer and Opioid Dealer Sentenced to Life in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that his office secured a life sentence today in a case involving a Delaware County man convicted of murder through the use of a firearm and conspiracy to distribute oxycodone. Anthony Vetri, 30, of Essington, was sentenced by U.S. District Judge Gerald J. Pappert. Vetri and Michael Vandergrift, 31, of Chester, were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone, and both distributed the drugs throughout Delaware and Philadelphia Counties. During the course of the conspiracy, Vetri received and distributed in excess of 100,000 oxycodone tablets, earning him hundreds of thousands of dollars in drug proceeds.
During the drug conspiracy, Patel illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a competitor to boost Vetri and Vandergrift’s oxycodone supply from Patel. Vetri and Vandergrift ultimately decided to murder Olabode, and Vandergrift recruited Michael Mangold and Allen Carter to assist. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he carried groceries into his home. The assailants struck the victim 13 times in his head and body, causing Olabode’s death. Following Olabode’s murder, Vetri celebrated Olabode’s death and continued to illegally distribute oxycodone that he obtained from Patel.
“The depravity of Vetri’s crimes knows no bounds. For years, the defendant poisoned his own community by fueling the opioid crisis in the Eastern District of Pennsylvania. Vetri’s distribution of over 100,000 oxycodone pills helped ruin people’s lives, and I have no doubt that many of Vetri’s customers continue to battle opioid abuse and addiction,” said U.S. Attorney McSwain. “The defendant is a violent drug trafficker who brought terror to the streets when he senselessly plotted the ambush and brutal murder of one of his rivals. Vetri has no respect for the law and no respect for human life. The defendant has never expressed remorse, nor has he accepted any responsibility for his actions. We are grateful that the Court held the defendant accountable for his violent and destructive conduct.”
Patel, Mangold, and Carter all previously pleaded guilty to charges for their respective involvement in drug distribution, the murder of Olabode, and other offenses, and are currently awaiting sentencing.
"For years, this defendant took advantage of addicts' misery, flooding the streets with pills and fueling the opioid crisis in our community," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "As he and his co-conspirator cashed in, they devised a brutal business plan: get more drugs and make more money by murdering the competition. Vetri is a danger to society on many levels, and this sentence is richly deserved."
The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer are prosecuting the case.
Defendant in Tax Fraud Scheme Involving Stolen Identities of Children Sentenced to 120 Months in PrisonRead the Press Release
PHILADELPHIA – A Darby, PA tax preparer, who used the identities of disabled children and children in foster care to file false federal income tax returns, was sentenced in federal court today to 120 months in prison and $83,870 restitution, announced U.S. Attorney William M. McSwain. Musa Turay, 44, was sentenced by U.S. District Judge Harvey Bartle III.
Turay was a partner at Medmans Financial Services, a tax preparation business which operated two offices in Philadelphia. Turay and defendant Mohamed Mansaray, the other partner of the illegal business, ran the tax preparation business at 1869 S. 65th Street in Philadelphia.
Turay conspired to defraud the Internal Revenue Service by falsifying information on income tax returns to generate fraudulent refunds. The defendant prepared and filed federal income tax returns for clients of his tax preparation business. These returns included intentional false deductions, fake credits, and fictitious dependents using the names and Social Security numbers of children who were unrelated to the taxpayers, some of whom were in the foster care system.
Turay prepared over 1,000 fraudulent tax returns, and the IRS estimated that the loss caused by the returns prepared by the defendant was approximately $8,000,000. The defendant also falsified his own personal income tax returns by falsely adding dependents to the returns. Additionally, he fled the country after the government filed a motion to revoke his bail. The defendant absconded for nine months, until he was ultimately apprehended and is currently being held in jail.
“As U.S. Supreme Court Justice Oliver Wendell Holmes, Jr., noted, ‘Taxes are what we pay for civilized society,’” said U.S. Attorney McSwain. “Our tax laws are in place for a reason. When they are ignored, especially to this extent, we all lose. The defendant not only violated the tax laws, but he victimized innocent children by using their information to further his criminal scheme. This was a long-running conspiracy, and our investigators and prosecutors were determined to ensure that the defendant was held accountable for his actions. This sentence should send a message to anyone who thinks he can flout the law and target vulnerable victims without consequence.”
Turay is the last of 11 defendants prosecuted in this investigation to be sentenced for their roles in the preparation of thousands of false tax returns. The total loss to the government caused by all the tax preparers who worked at Medmans Financial Services was more than $30,000,000. The harm done to the children who were the victims of the tax fraud, however, cannot be quantified. These children will forever be at risk for the improper use of their identity information. Many of the parents and legal guardians of the children who were victimized in this case found themselves unable to file their own tax returns and claim their own children as dependents, because their children already had been falsely claimed as dependents on fraudulent returns.
“Today's sentence exemplifies IRS Special Agents' intense focus on the rigorous pursuit of identity theft and refund fraud,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Musa Turay and his co-conspirators perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable.”
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Frank Costello.
Cuban Man Pleads Guilty to Conspiracy to Transport Illegal AliensRead the Press Release
Gulfport, Miss. – Carlos Manuel Legra-Ramirez, age 43, a citizen of Cuba and a Legal Permanent Resident of the United States living in Georgia, pled guilty Friday before U.S. District Judge Sul Ozerden to conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Legra-Ramirez is scheduled to be sentenced by Judge Ozerden on September 7, 2018. Legra-Ramirez faces a potential maximum 10 years imprisonment, not more than 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. He also will be subject to immigration removal proceedings.
On February 6, 2018, on Interstate 10 east bound in Harrison County, the United States Border Patrol conducted a traffic stop on a Toyota Highlander Sport Utility Vehicle (SUV), displaying a Georgia license plate registered to Legra-Ramirez. The SUV contained 10 illegal aliens, for a total of eleven occupants (including the driver) even though the Toyota Highlander SUV had seatbelts to lawfully seat only seven occupants.
U.S. Department of Homeland Security officials positively identified four of the passengers as aliens who had been previously deported or removed and who had unlawfully returned to the United States. Each of those four passengers were prosecuted for the felony offense of violating Title 8 U.S.C., Section 1326(a)(2), Unlawful Re-Entry into the United States by a Removed Alien. Each of the four passengers pled guilty to that offense and were convicted.
Further investigation also revealed that on August 27 2013, a vehicle registered to Legra-Ramirez was stopped in Mobile, Alabama. The vehicle was driven by a different Cuban national, who said he had recently purchased the vehicle, and admitted to smuggling the 9 illegal aliens who were passengers in his vehicle. Additionally, on August 31, 2013, Legra-Ramirez had been stopped on I-10 east bound near Lake City, Florida, driving a vehicle with 6 illegal alien passengers.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland
Security, Homeland Security Investigations, and the U.S. Border Patrol. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Court Shuts Down Georgia Return PreparerRead the Press Release
A federal court in Newnan, Georgia permanently enjoined Lucrezia Finch Henderson from preparing federal income tax returns for others, the Justice Department announced today. The court also ordered Henderson to mail a copy of the injunction order to all customers for whom she prepared a return after January 1, 2015.
According to that complaint, Henderson prepares tax returns at Infinity Tax located at 104 Sage Commercial Drive, Suite B, in Lagrange, Georgia. As alleged in the complaint, Henderson engaged in abusive tax schemes such as reporting fake businesses on her customers’ returns in order to generate losses to lower their tax liabilities. The Court found that Henderson falsely reported on several of her customers’ returns that each had a business that earned no money and had tens of thousands of dollars in expenses. According to the complaint, Henderson used the losses from these fake businesses to offset her customers’ income and claim a larger tax refund than they were entitled to receive.
In addition, the Court found that Henderson falsely reported that her customers had education expenses in support of education credits the customers were not eligible to claim. The complaint alleged that some of these customers did not even attend college that year. According to the complaint, the IRS audited about 110 returns prepared by Henderson for her customers and found that Henderson understated her customers’ tax liabilities by more than $650,000 in the aggregate.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Council Bluffs Man Sentenced to 27 Months in Prison for Charge of Prohibited Person in Possession of a Firearm and AmmunitionRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on Monday, June 4, 2018, 42 year-old Raymond Stark was sentenced by Chief District Court Judge John A. Jarvey for the charge of Prohibited Person in Possession of a Firearm and Ammunition. Stark previously pleaded guilty plea to this charge on January 16, 2018. Stark was sentenced to 27 months in prison, to be followed by three years of supervised release, with the federal prison sentence to run consecutively to the sentence Stark is serving for charges in the Iowa District Court in Pottawattamie County.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by Council Bluffs Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced to over Seven Years in Prison for Possession of a Firearm in Jackson NeighborhoodRead the Press Release
Jackson, Miss. – Justin Stabler, 31, of Harrison County, Mississippi, was sentenced yesterday by U.S. District Judge Henry T. Wingate to serve 90 months in federal prison as a result of his pleading guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols, Bureau of Alcohol, Tobacco, Firearms and Explosives.
Just before 7:30 a.m. on September 1, 2017, officers from the Jackson Police Department responded to 911 calls from the Belhaven Heights neighborhood concerning a man walking down the street brandishing a firearm. Several officers responded to the area of Moody and Quinn Streets in Jackson, and shortly thereafter, officers spotted Justin Stabler walking down the street carrying a revolver in his hand. Stabler was taken into custody without incident, and officers quickly determined that he was a convicted felon who was on parole and residing at a halfway house in another area of Jackson. Because Stabler was a convicted felon, he was prohibited from possessing either a firearm or ammunition under federal law. The firearm Stabler possessed was a large caliber Taurus "Judge" revolver loaded with five .410 gauge shotgun shells. The firearm was later determined to have been stolen.
Stabler had previously been convicted of multiple state felony offenses in Harrison County, Mississippi and Jackson County, Mississippi, including burglary, theft of a motor vehicle, possession of a weapon by a convicted felon and possession of counterfeit currency.
The case was investigated by the Jackson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Dave Fulcher.
Colorado Man Sentenced for Conviction on Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Leroy Tchod Cameron Ravenell, 28, of Colorado Springs, Colo., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in prison for his cocaine trafficking conviction. Ravenell will be on supervised release for three years after completing his prison sentence.
U.S. Border Patrol agents arrested Ravenell on Nov. 11, 2016, after finding approximately .36 kilograms (.8 pounds) of cocaine and two loaded firearms concealed in his vehicle during an inspection at the U.S. Border Patrol checkpoint near Alamogordo, N.M., in Otero County, N.M. Ravenell initially was charged in a criminal complaint. He subsequently was indicted on May 17, 2017, and was charged with possession of cocaine with intent to distribute.
On Aug. 2, 2017, a federal jury returned a guilty verdict against Ravenell on the sole count of the indictment. The testimony at trial established that on Nov. 11, 2016, Ravenell was a passenger in his vehicle when it drove into the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo. During a routine inspection of Ravenell’s vehicle, Border Patrol agents found approximately 243 grams of cocaine and two firearms in the back of the vehicle, in addition to finding a large amount of cash on Ravenell’s person. The jury also heard Ravenell’s statement to law enforcement acknowledging that he bought the cocaine in El Paso, Tex., on the morning of Nov. 11, 2016, with the intention of selling it to others.
This case was investigated by the DEA and the U.S. Border Patrol and was prosecuted by Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Colorado Man Indicted for Attempted Sexual Exploitation of a MinorRead the Press Release
KANSAS CITY, Mo. – A Colorado man was indicted by a federal grand jury today after traveling to Kansas City, Mo., to meet an undercover FBI agent, whom he believed to be a mother with her 7-year-old daughter, for sex.
Ryan Edward Mausner, 42, of Basalt, Colo., was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Mausner on May 25, 2018.
The federal indictment charges Mausner with one count of attempting to entice a minor to engage in illegal sexual activity, and one count of traveling across state lines with the intent to engage in illicit sexual conduct with a minor.
According to an affidavit filed in support of the original criminal complaint, Mausner was actually communicating (via the Kik messaging application and texts) with an undercover FBI agent, who portrayed a single mother with a 5-year-old son and a 7-year-old daughter. Mausner allegedly engaged the undercover agent in several private chat sessions in which he said he wanted to engage in sexual activity with the mother and daughter.
In the course of these chats, the affidavit says, Mausner made numerous sexually suggestive or overtly sexually explicit comments including BDSM terminology about the mother and daughter.
Mausner traveled from Denver, Colo., to Kansas City, Mo., on May 25, 2018, and arrived at Kansas City International Airport at about 5 p.m.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Coatesville Man Charged with Wire Fraud in Gift Card ScamRead the Press Release
PHILADELPHIA – A Coatesville, PA man was charged today in connection with a scheme to over-redeem gift cards, U.S. Attorney William M. McSwain announced.
Chad Douglas Broudy, 23, was charged by criminal information with wire fraud.
The information alleges Broudy defrauded an internet e-commerce company by exploiting a software glitch that permitted repeated uses of the same gift card. The information alleges that between October 29, 2016, and January 10, 2017, Broudy intentionally conducted approximately 1100 fraudulent transactions triggering this glitch, and in the process over-redeemed approximately $320,582 from the company’s gift cards.
“The defendant had a choice. He could have reported the glitch. But he chose greed and crime over honesty. He took full advantage of the glitch and exploited it not once or twice, but more than 1100 times, obtaining more than 3,000 items through fraud.”
If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, 3 years of supervised release, a fine of $500,000, and full restitution.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Cleveland man indicted on a drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Cleveland, Ohio man was indicted today by a federal grand jury on cocaine distribution charges, United States Attorney Bill Powell announced.
Anthony Walter Rogers, age 27, is charged with three counts of “Distribution of Cocaine Base” and one count of “Possession with Intent to Distribute Cocaine Base.” Rogers is accused of selling cocaine in Marshall County in August 2017 and April 2018.
Rogers faces up to 30 years incarceration and a fine of up to $2,000,000 for each distribution count and faces up to life incarceration and a fine of up to $8,000,000 for the possession 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 Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chicago Brothers Sentenced to 15 and 12 Years in Federal Prison for Airplane Loan ScamRead the Press Release
BOSTON – Two Chicago brothers were sentenced today in federal court in Worcester for defrauding and attempting to defraud banks out of $4 million in an airplane loan scheme.
Ryan Miller, 32, and Dusten James Miller, 31, were sentenced by U.S. District Court Judge Timothy S. Hillman to 15 years in prison and five years of supervised release, and 12 years in prison and five years of supervised release, respectively. In February 2018, the brothers were convicted of one count of conspiracy to commit bank fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to commit identity theft. Ryan Miller was also convicted of one count of bank fraud, one count of money laundering, and one count of aggravated identity theft.
From March 2013 through March 2016, Ryan and Dusten Miller, along with other co-conspirators, were engaged in a scheme to defraud banks by obtaining and attempting to obtain fraudulent airplane loans. Using stolen identities, the brothers posed as the buyers and the sellers of airplanes; they filled out fraudulent loan applications and provided the banks with false and fraudulent documents in support of those applications, such as tax returns, bank statements, driver’s licenses and Social Security cards. Once the loans were approved, the brothers arranged for the loan documents to be sent to an email address they created, or a physical address - usually a virtual office location they set-up. The Millers then signed and notarized the loan documents and sent them back to the banks. They also provided the banks with instructions to wire the fraudulent loan proceeds to multiple bank accounts in the name of sham corporations the brothers set up. Once the funds were wired to those accounts, the brothers used the funds to purchase luxury cars and homes, to fund private chauffeurs, and to buy Rolex watches and other luxury items. In total, the brothers defrauded at least five banks and used the personal identifying information of at least nine individuals from all across the country.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Thomas J. Ullom, Special Agent in Charge of the Chicago Regional Office, U.S. Department of Transportation, Office of Inspector General, made the announcement. Assistant U.S. Attorneys Karin M. Bell and Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.
Charleston Man Sentenced for EscapeRead the Press Release
CHARLESTON, W.Va. -- Donavan Hardison, 28, of Charleston, was sentenced yesterday by United States District Court Judge John T. Copenhaver, Jr., to 8 months in prison for having escaped from the Dismas Charities’ halfway house in St. Albans, West Virginia. Stuart credited the cooperative effort of the United States Marshal Service, the West Virginia State Police, the Charleston Police Department, and the Kanawha County Sheriff’s Office for Hardison’s capture.
“Our federal, state and local law enforcement officers will not stop looking for escapees until they are apprehended,” said United States Attorney Mike Stuart. “During Hardison’s additional 8-month stay in prison, he needs to let the other inmates know that escape attempts just aren’t worth it.”
Hardison previously pled guilty in April admitting that he had walked away from Dismis without permission on May 16, 2017, and his whereabouts were unknown until his arrest on February 6, 2018. Hardison had been placed at Dismas by the Federal Bureau of Prisons in March 2017 to serve the remainder of his sentence for a federal drug conviction.
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###California Resident Convicted of Tax CrimesRead the Press Release
A jury in the Northern District of California convicted Jyh-Chau “Henry” Horng, of Saratoga, California and part owner of a home-based international trading business, yesterday on two counts of filing false tax returns and one count of making false statements to an Internal Revenue Service (IRS) agent while under audit, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Alex G. Tse for the Northern District of California. The jury acquitted Horng’s wife, Meili Lin, on one count of filing a false tax return and failed to reach a verdict on the second count.
According to court documents and evidence presented during the three-week trial, Horng underreported income on his 2006 and 2007 tax returns. The returns failed to report profits from selling metal products to China while that country was undergoing its economic and infrastructure boom. Horng used these business profits to buy millions of dollars of residential properties, invest over $5 million in a Milpitas shopping center, and purchase a Bentley. Horng also reported annual income of over $1 million on a mortgage application, despite reporting far less than that on the tax returns he filed with the IRS. During an IRS audit of the returns, Horng made numerous false statements, including that neither he nor his wife had any foreign bank accounts.
Horng faces a statutory maximum sentence of three years in prison for each false tax return. He could be sentenced to an additional five years for lying to the IRS auditor. He is also subject to a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting United States Attorney Tse thanked IRS Special Agents Maria Martinez and Cheryl Parker for their work on the investigation, Assistant United States Attorney Michael Pitman and Trial Attorney Christopher Magnani for prosecuting the case, and Paralegal Specialist Jonathan Deville for his assistance during the trial.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Man Sentenced to More Than 7 Years in Prison for Robbery Spree, Cross-Country PursuitRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID E. BYERS, 35, of Solana Beach, California, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 88 months of imprisonment, followed by three years of supervised release, for engaging in an east coast robbery spree and subsequent cross-country pursuit.
According to court documents and statements made in court, on April 19, 2017, BYERS, wearing a bandana over his face and displaying what appeared to be the handle from a handgun, robbed a Gulf gas station in Nesconset, N.Y., of $300. On April 20, he robbed a Chase Bank branch in Stony Brook, N.Y., of $2,107. On April 24, BYERS, wearing a bandana over his face and displaying what appeared to be a handgun, robbed a Citgo gas station in Greenwich, Conn., of $223. On April 25, again wearing a bandana over his face, he robbed a Chase Bank branch in Greenwich of $8,722. On April 26, BYERS returned to the Chase Bank branch in Greenwich and robbed it of $3,391.
On April 28, 2017, Greenwich Police saw BYERS driving a vehicle and attempted to apprehend him, but he drove away at a high rate of speed, subsequently abandoned the vehicle on I-95 and evaded police on foot. He then stole another vehicle in Port Chester, N.Y., placed a stolen license plate on the vehicle, and proceeded to drive to California.
Pennsylvania State Police attempted to apprehend BYERS in Pennsylvania by deploying a tire deflation device, but BYERS was able to abandon the vehicle and fled on foot. He then stole a pickup truck that had keys in it. At a rest stop, he stole Maryland license plates, put them on the truck and continued driving west.
On May 1, 2017, BYERS engaged the Arizona State Police in a high-speed chase before abandoning the vehicle and fleeing on foot.
BYERS was arrested in San Diego on May 2, 2017, and has been detained since his arrest. On November 7, he pleaded guilty to one count of Hobbs Act robbery.
Judge Shea ordered BYERS to pay restitution of $14,753.
This matter was investigated by the Federal Bureau of Investigation, Greenwich Police Department, Suffolk County (N.Y.) Police Department, Pennsylvania State Police, Arizona State Police and San Diego County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Caldwell Man Sentenced to Prison on Federal Drug ChargeRead the Press Release
BOISE – Leeroy Salazar, 39, of Nampa, was sentenced today to 120 months in prison followed by eight years of supervised release for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Salazar on December 13, 2017.
According to court records, law enforcement used a confidential informant to purchase methamphetamine from Salazar on three occasions. Salazar, a member of the East Side Locos gang in Caldwell, has a criminal history that includes felony convictions for domestic violence and unlawful possession of a firearm. Salazar also has a prior drug offense that enhanced his sentence.
Distribution of methamphetamine is punishable by at least ten years and up to life imprisonment, at least eight years of supervised release, an $8,000,000 fine, and a $100 special assessment.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Cabell County Man Pleads Guilty to Producing Child PornographyRead the Press Release
CABELL COUNTY MAN PLEADS GUILTY TO PRODUCING CHILD PORNOGRAPHY
HUNTINGTON, W.Va. – A Cabell County man pled guilty yesterday to child pornography crimes, announced United States Attorney Mike Stuart. David Ray Pelfrey, 40, of Huntington, entered his guilty plea to two counts of production of child pornography. Stuart praised the investigation conducted by the Huntington Police Department and the Federal Bureau of Investigation.
“These crimes are horrific,” said United States Attorney Mike Stuart. “We should all be incredibly grateful to the FBI and the Huntington Police Department for their efforts to investigate sexual predators like Pelfrey that prey on our children. My intention is to prosecute them to the fullest extent of the law and get them locked up for as long as possible.”
Pelfrey admitted that on May 20, 2017, he took a sexually explicit photograph of a 16-year-old female, and that on June 1, 2017, he took a video depicting himself engaged in sexually explicit conduct with the same minor female. Pelfrey further admitted that possessed at least one sexually explicit image of another minor female on his cell phone.
Pelfrey faces at least 15 and up to 60 years in federal prison when he is sentenced on September 4, 2018, although pursuant to the terms of the plea agreement between the United States and Pelfrey, he will receive a sentence of 18 years in prison if the District Court accepts the agreement. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa Johnston and Assistant United States Attorney Jennifer Rada Herrald are in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Boston Man and Arizona-Based Supplier Plead Guilty to Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man and his Arizona-based supplier pleaded guilty yesterday in federal court in Boston to federal drug offenses.
Peter Molloy, 39, and Adrian Carlos Maldonado, 38, pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Molloy also pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine. U.S. Senior District Court Judge Mark L. Wolf scheduled Maldonado’s sentencing for Aug. 29, 2018, and Molloy’s sentencing for Aug. 30, 2018.
Molloy began distributing methamphetamine in approximately January 2014, originally purchasing methamphetamine from a variety of sources and distributing the drugs to customers in the Boston area. At some point in roughly January 2015, Molloy began purchasing the drugs from Maldonado, who was based in Arizona. Maldonado arranged for the methamphetamine to be transported from Arizona to Massachusetts.
On Aug. 14, 2017, a search of Molloy’s condominium in South Boston resulted in the seizure of more than 160 grams of methamphetamine, $75,762 in cash and a $1,000 money order. As part of his plea agreement, Molloy agreed to forfeit the seized cash and money order, his interest in the condominium, and a 2014 Hyunda Veloster that he used to facilitate drug dealing. Molloy also agreed to waive claims to other items that were seized, or turned over, to law enforcement during the investigation, including an additional $98,000, a $10,000 cashier’s check and another $1,000 money order.
Both the charge of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine provide for a minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Commissioner Thomas Turco of the Massachusetts Department of Correction; Reading Police Chief Mark D. Segalla; and Boston Police Commissioner William Evans made the announcement. Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; and the Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments assisted with the investigation. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Bluefield Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a Bluefield man entered a guilty plea to a federal drug distribution charge. Lansen Waugh, 38, pled guilty to distribution of a quantity of hydromorphone, admitting that on August 8, 2017, he distributed hydromorphone pills to a confidential informant in Princeton. Stuart commended the investigation conducted by the Southern Regional Drug and Violent Crime Task Force.
“The Bluefield Pill Initiative continues,” said United States Attorney Mike Stuart. “My Office, along with law enforcement partners such as the Southern Regional Drug and Violent Crime Task Force, are committed to curtailing the illegal trafficking of opioid painkillers. Waugh now faces a significant sentence for his reckless, criminal, and dangerous conduct.”
Waugh also admitted that he sold hydromorphone pills in Green Valley and in Bluefield. He faces up to 20 years in prison when he is sentenced on October 3, 2018.
The case is being prosecuted by Assistant United States Attorney John File. Senior United States District Judge David A. Faber presided over the plea hearing.
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Biodiesel Fuel Company Pleads Guilty to Releasing over 45,000 Gallons of Wastewater into the Arthur KillRead the Press Release
An Elizabeth, New Jersey, biodiesel fuel company pleaded guilty today to discharging over 45,000 gallons of wastewater from its commercial biodiesel fuel production into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood announced.
Fuel Bio One LLC pleaded guilty before U.S. District Court Judge William J. Martini to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.
According to court documents, Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On September 6, 2013, and November 9, 2013, employees of Fuel Bio One released a total of approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court today.
Fuel Bio One has agreed, as part of its plea agreement, to pay $100,000 and to be placed on a probationary term of five years. During the probation, the company will be required to provide to the court biannual reports of any waste it generates and the steps taken to properly dispose of such waste. Fuel Bio One will also be required to develop an employee training program to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act and any other applicable laws. The company will also be required to provide the U.S. Environmental Protection Agency full access to all offices, warehouses and facilities.
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” said U.S. Attorney Carpenito for the District of New Jersey. “Today’s prosecution and guilty plea ensures that Fuel Bio One will be punished for its past crimes, and the plea agreement puts into place a plan to make sure they don’t pollute our waterways in the future.”
“Fuel Bio One undercuts a level playing field when they illegally discharge polluted wastewater into the Arthur Kill without any regulatory approval,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants from the state’s natural resources.”
U.S. Attorney Carpenito and Acting Assistant Attorney General Wood credited special agents of the U.S. Environmental Protection Agency, under the direction of Special Agent in Charge Tyler Amon, with the investigation leading to today’s charges.
The Government is represented by Assistant United States Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the United States Department of Justice.
Biodiesel Fuel Company Admits Releasing More Than 45,000 Gallons of Wastewater into Arthur KillRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, biodiesel fuel company today admitted discharging more than 45,000 gallons of wastewater from its commercial biodiesel fuel production facility into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood announced.
Fuel Bio One LLC pleaded guilty before U.S. Magistrate Judge James B. Clark 3rd to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” U.S. Attorney Carpenito said. “Today’s prosecution and guilty plea ensures that Fuel Bio One will be punished for its past crimes, and the plea agreement puts into place a plan to make sure they don’t pollute our waterways in the future.”
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division said. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Fuel Bio One undercuts a level playing field when they illegally discharge polluted wastewater into the Arthur Kill without any regulatory approval,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants from the state’s natural resources.”
According to court documents filed in this case and statements made in court:
Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On September 6, 2013, and November 9, 2013, employees of Fuel Bio One released a total of approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court today.
Fuel Bio One has agreed, as part of its plea agreement, to pay $100,000 and to be placed on a probationary term of five years. During the probation, the company will be required to provide to the court biannual reports of any waste it generates and the steps taken to properly dispose of such waste. Fuel Bio One will also be required to develop an employee training program to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act and any other applicable laws. The company will also be required to provide the U.S. Environmental Protection Agency full access to all offices, warehouses and facilities.
U.S. Attorney Carpenito and Acting Assistant Attorney General Wood credited special agents of the U.S. Environmental Protection Agency, under the direction Special Agent in Charge Amon, with the investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
Defense counsel: Christopher Adams Esq., Roseland, New Jersey
Bellingham Man Sentenced for Child PornographyRead the Press Release
BOSTON – A Bellingham man was sentenced today in federal court in Boston on child pornography charges.
John E. Kalinowski, 30, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to five years in prison and five years of supervised release. Upon release from custody, Kalinowski will be required to register with the Sex Offender Registry Board in any state or jurisdiction where he works or resides. In May 2016, Kalinowski pleaded guilty to one count of receipt and attempted receipt of child pornography and one count of possession of child pornography. Kalinowski has been in custody since his arrest in September 2014.
In August 2014, an individual reported to their local police department that she had observed images of pornography on her minor daughter’s iPad. The child was interviewed and told the police that the images were sent to her by Kalinowski.In September 2014, a search of Kalinowski’s home resulted in the seizure of computers, hard drives, and other media storage devices. A preliminary review of the devices revealed images of children engaged in sexually explicit conduct. Law enforcement officers also recovered numerous articles of children’s undergarments from Kalinowski’s home.
United States Attorney Andrew E. Lelling; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; Whitman Police Chief Scott D. Benton; and Bellingham Police Chief Gerard L. Daigle Jr. made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Attorney General Jeff Sessions Selects District of Columbia to Receive Additional Resources to Combat Violent Crime and FraudRead the Press Release
WASHINGTON - Attorney General Jeff Sessions has selected the District of Columbia to receive three additional Assistant U.S. Attorneys to focus on violent crime and civil enforcement matters, part of a nationwide influx of federal resources to communities.
In the largest increase in decades, Attorney General Sessions announced on June 4, 2018 that the Department of Justice is allocating 311 new Assistant U.S. Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement attorneys, and 35 additional immigration prosecutors. Nationwide, much of the civil enforcement work 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 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.”
“My office is grateful for the extra support being provided by the Justice Department to make our community safer,” said U.S. Attorney Jessie K. Liu. “We will put our new attorneys to work as quickly as possible on complex cases involving violent crime, drug trafficking, health care fraud, and other serious offenses that harm the citizens of the District of Columbia.”
The U.S. Attorney’s Office already is working with the Metropolitan Police Department (MPD), the FBI’s Washington Field Office, and other law enforcement partners on a Justice Department initiative called Project Safe Neighborhoods (PSN) that is generating additional cases focusing on violent crime. Under Project Safe Neighborhoods, the U.S. Attorney’s Office is committed to a coordinated law enforcement approach and identifying and addressing the most violent locations in the District of Columbia and the offenders.
In the District of Columbia, two of the three new Assistant U.S. Attorneys will focus on violent crime and one will focus on civil enforcement. The new attorneys are in addition to an Assistant U.S. Attorney provided to the District of Columbia in an earlier initiative created by Attorney General Sessions to target cases involving violent crime.
On the violent crime front, the two new prosecutors will take on responsibilities including work on multi-agency investigations focusing on neighborhood crews and gangs in the Sixth and Seventh Police Districts. Much of the upcoming work will include coordinating federal and local law enforcement resources to combat the recent uptick in violent crime in these areas. The additional Assistant U.S. Attorneys will supplement and increase efforts in executing the Office’s ongoing Project Safe Neighborhoods initiatives and MPD’s Summer Crime Initiatives.
On the civil enforcement side, the new attorney will join five current Assistant U.S. Attorneys in the Office’s Civil Division in sharing responsibility for handling a large docket of complex fraud cases. The District of Columbia ranks fourth in the nation in the number of whistleblower cases filed under the False Claims Act since 1987, and the number of new cases in this district in which the United States is the plaintiff increased on average by 76% during the period from 2013 - 2017. Those cases primarily involve procurement fraud and health care fraud schemes that require substantial resources to investigate and prosecute.
Arizona Woman Sentenced to over 3 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 Angelica Avendano , A/K/A Angelica Avendano-Gonzalez age 28, of Avondale, Arizona, was sentenced today to 42 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, the Drug Enforcement Administration, (DEA) identified Avendano as the girlfriend and co-conspirator of Oscar David Zuniga-Chavez, a methamphetamine source of supply for local distributors of methamphetamine. During the investigation, agents sought and obtained a federal search warrant for Avendano’s residence in Peoria, AZ that she shared with Zuniga-Chavez. On December 8, 2016, agents with the DEA Fayetteville Resident Office traveled to Arizona, where they assisted DEA agents and task force officers from Phoenix, Arizona in the execution of the search warrant. Agents made contact with the Avendano at the residence, and advised her of her Miranda rights. During the interview with Avendano, she waived her Miranda rights and admitted to sending multiple packages containing methamphetamine to the Western District of Arkansas for distribution.
Avendano was indicted by a federal grand jury in July 2017 and pleaded guilty in January 2018.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Anamosa Man Pleads Guilty to Possession of Child PornographyRead the Press Release
A man who possessed child pornography pled guilty yesterday in federal court in Cedar Rapids.
Austin Marek, age 22, from Anamosa, Iowa, was convicted of one count of possession of child pornography. At the plea hearing, Marek admitted that, in 2016, he knowingly possessed child pornography, including one or more depictions of prepubescent children.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Marek was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Marek faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 18-34.
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Allegiance Health Management to Pay More Than $1.7 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – The Justice Department announced today that Allegiance Health Management, Inc., (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, and four hospitals owned and operated by Allegiance (collectively, the Allegiance Defendants), have agreed to pay more than $1.7 million to resolve False Claims Act allegations that the Allegiance Defendants submitted, and caused other hospitals to submit, claims for reimbursement from Medicare for services that were not medically reasonable or necessary.
Beginning in 2005, Allegiance entered into arrangements with numerous hospitals located throughout the Southeastern United States to provide Intensive Outpatient Psychotherapy (IOP) services to patients on the hospitals’ behalf. At each of these hospitals, Allegiance established an Inspirations Outpatient Counseling Center at which Allegiance employees and those acting under the direction and control of Allegiance were responsible for, among other things, identifying potential patients, creating patient treatment plans, and performing IOP services. This settlement resolves allegations that at each of the Inspirations Outpatient Counseling Centers, Allegiance provided IOP services to Medicare beneficiaries that did not qualify for Medicare reimbursement because: 1) the patients’ medical condition(s) did not necessitate IOP treatment; 2) the patients’ treatments were not provided pursuant to an individualized treatment plan designed to help individual patients address specific mental health needs and reach achievable goals; 3) the patients’ progress was not being adequately tracked or documented; 4) the patients received an inappropriate level of treatment; or 5) the therapy provided was primarily recreational or diversional in nature, and was not therapeutic.
“The Department of Justice recognizes the value of accessible mental healthcare, but will not tolerate companies that seek to exploit our most vulnerable populations by delivering inappropriate or worthless services” said Acting Assistant Attorney General Chad D. Readler for the Civil Division. “The Department of Justice is committed to holding accountable those who waste taxpayer dollars and place profit above the legitimate needs of patients.”
“Federal funding for mental health services must be wisely and prudently spent,” said United States Attorney Cody Hiland for the Eastern District of Arkansas. “Allegiance sought this taxpayer money by targeting and taking advantage of vulnerable members of our population who sought mental health treatment, including those in the Eastern District of Arkansas. This office is dedicated to pursuing all appropriate remedies against companies who behave in such a manner.”
The Allegiance defendants that are party to this settlement are: Allegiance Health Management, Inc.; Allegiance Behavior Health Center of Plainview, LLC; Allegiance Specialty Hospital of Kilgore, LLC; North Metro Medical Center a/k/a Allegiance Hospital of North Little Rock, LLC, and Sabine Medical Center a/k/a Allegiance Hospital of Many, LLC. The United States previously reached settlements with more than twenty other hospitals in this matter.
“Medicare funds must be targeted to those with a legitimate need,” said Special Agent in Charge CJ Porter for the Office of Inspector General of the U.S. Department of Health and Human Services. “Entities that bill for needless services – as alleged here – cheat taxpayers and threaten the integrity of government health programs.”
The settlement with Allegiance resolves a lawsuit filed in the Eastern District of Arkansas under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by Ryan Ladner, who formerly worked for Allegiance as a Program Manager at the Inspirations Outpatient Counseling Center located at Wesley Medical Center in Hattiesburg, Mississippi. Mr. Ladner will receive approximately $300,000 as his share of the current settlement.
This and prior settlements in this matter were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Eastern District of Arkansas, and the Department of Health and Human Services, Office of Audit Services and Office of Inspector General.
The claims settled by the current agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned U.S. ex rel Ladner v. Allegiance Health Management, Inc., et al, No. 4:10-CV-170 (E.D. Ark.).
A Monongalia County woman admits to firearms conspiracy chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Margaret Parker, of Dellslow, West Virginia, has admitted to her involvement in an illegal firearms operation, United States Attorney Bill Powell announced.
Parker, age 33, pled guilty to one count of “Conspiracy to Violate Federal Firearms Laws.” She admitted to being involved in a conspiracy that included making false statements to purchase firearms, trading firearms for controlled substances, and transporting and selling the firearms in New York. The crime occurred in Morgantown, Monongalia County and elsewhere from May 2017 to June 2017.
Parker faces up to five years incarceration and a fine of up to $250,000. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
18 Members of Bronx Drug Trafficking Organization Charged with Distributing Potent Heroin and FentanylRead 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 Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today that MAURICE HARTLEY, a/k/a “Bugz,” REGINALD SANDERS, a/k/a “Black,” HECTOR SANCHEZ, a/k/a “Jabee,” AARON CARTER, a/k/a “Cream,” RONALD BEASLEY, a/k/a “Nuke,” JONATHAN SANCHEZ, a/k/a “Nash,” TYVANN BARNETT, a/k/a “Ty,” JAVIER BENITEZ, a/k/a “Javi,” ALEJANDRO RODRIGUEZ, a/k/a “Lex,” GREGORY CARTER, a/k/a “Fat Boy,” RAY SANCHEZ, FREDDIE TORRES, a/k/a “Kiko,” EDWARD DAVIES, a/k/a “Yum Yum,” LOUIS BROWN, a/k/a “Tut,” CHRISTOPHER SIMON, JOHNNY INGRAM, MARIE PALUMBO, and TIA JASPER have been charged with participating in a conspiracy to distribute heroin and fentanyl. Seventeen defendants were arrested yesterday evening and this morning and were presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court this afternoon. BENITEZ was in custody on state charges and has been transferred to federal custody. The case has been assigned to United States District Judge Paul A. Engelmayer.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants operated a network for the distribution of highly addictive and dangerous drugs. Even after they realized the potency of the drugs they were distributing and selling – and the overdose risk those drugs posed – the defendants allegedly continued to sell their poison and to fuel the opioid epidemic plaguing our nation. Today’s arrests are part of our continued commitment, along with our law enforcement partners, to stop the flow of heroin and fentanyl onto the streets of New York City.”
FBI Assistant Director William F. Sweeney Jr. said: “The drugs these suspects were allegedly selling are killing people. The harsh reality is the sellers and pushers are purposefully lacing heroin with a deadly mix of fentanyl to create a more powerful, and deadly high. The FBI Metro Safe Streets Task Force and our law enforcement partners are out day after day doing all we can to stop these criminals from causing more death in our communities. We won’t stop until we round up every last one of them.”
NYPD Commissioner James P. O’Neill said: “Law enforcement can help end the scourge of overdose deaths related to illegal narcotics in New York City by relentlessly pursuing the individuals and groups responsible for distributing them on our streets. Today’s charges show how effective the NYPD-federal partnership is in sharing the responsibility for public safety.”
According to the allegations in the Complaint and Indictment,[1] and statements made in Court:
The defendants were members of a drug trafficking organization (the “DTO”) that operated in the Bronx, New York, and controlled heroin sales between 182nd Street and 184th Street, primarily between Jerome Avenue and University Avenue (“the “DTO’s Drug Territory”). As a means of marketing its heroin, and to ensure that the only heroin sold in the DTO’s Drug Territory belonged to the DTO, the DTO placed “stamps” on the glassines of heroin and fentanyl that it sold to customers. Among the stamps the DTO used were “Heisenberg,” “Sleepless,” “Peace of Mind,” “Obsession,” “Fist with a Power Cord,” “Sold Out,” “Methadone,” “Sweet Dreams,” and “Hands Up.” From 2015 to June 2018, the DTO is estimated to have distributed more than 100 kilograms of heroin, much of it mixed with fentanyl.
Glassines marked with the DTO’s stamps were recovered at the scene of at least five suspected overdose deaths in and around the DTO’s Drug Territory. First, on September 11, 2017, an individual died of a suspected heroin overdose near the DTO’s Drug Territory, and a glassine marked with the stamp “Obsession” was recovered at the scene of the overdose death. Second, on September 18, 2017, an individual died of a suspected heroin overdose near the DTO’s Drug Territory, and a glassine marked with the stamp “Fist with a Power Cord” was recovered at the scene of the overdose death. Finally, between December 12, 2017, and on January 2, 2018, three different individuals died of suspected heroin overdoses in a building within the DTO’s Drug Territory. Glassines marked with the stamp “Hands Up” were recovered at the scene of each of these three deaths. Each time one of the DTO’s stamps was recovered at the scene of an overdose death, the DTO stopped using that stamp, and started using different stamps on the glassines of heroin and fentanyl that it distributed.
On June 5, 2018, law enforcement agents executed search warrants at several locations in the Bronx, New York, that were used by the DTO, and recovered, among other things, approximately three kilograms of heroin, approximately $300,000 in cash, and a loaded firearm.
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HARTLEY, 35, SANDERS, 37, HECTOR SANCHEZ, 29, AARON CARTER, 40, BEASLEY, 36, JONATHAN SANCHEZ, 30, BARNETT, 21, BENITEZ, 29, RODRIGUEZ, 47, GREGORY CARTER, 35, RAY SANCHEZ, 30, TORRES, 36, DAVIES, 58, BROWN, 62, SIMON, 59, INGRAM, 55, and JASPER, 36, each of the Bronx, New York, and PALUMBO, 36, of Elizaville, New York, are each charged with one count of conspiring to distribute heroin and fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and NYPD, and thanked the Bronx County District Attorney’s Office for its assistance.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Michael K. Krouse, Stephanie Lake, and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Complaint and 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 Complaint and Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Monday 4 June 2018
Warrensville Heights man sentenced to more than 16 years in prison for leading conspiracy that brought fentanyl, heroin and cocaine to Northeast Ohio from Chicago and New YorkRead the Press Release
A Warrensville Heights man was sentenced to more than 16 years in prison for helping lead a conspiracy that brought large amounts of fentanyl, heroin and cocaine into Greater Cleveland from Chicago and Yonkers, New York.
Alfonso Rodrigo, 37, was sentenced to 200 months in federal prison. He was one of nearly 20 people prosecuted as part of Operation Loaded Deck. Law enforcement seized 29 kilograms of cocaine, eight kilograms of heroin and one kilogram of fentanyl, as well as $350,000 and several firearms as part of the investigation.
Some of these conspirators had significant links to the Sinaloa cartel. Among the defendants sentenced thus far:
Ismael Acosta, 39, of Cleveland Heights, to 190 months in prison.
David Urrabazo Maldonado, 31, of Medera, California, to 120 months in prison.
Jonathan Stepp, 34, of Cleveland, to 108 months in prison.
Jose Hernandez, 57, of Chicago, to 57 months in prison.
The defendants conspired together from 2010 through 2016 to obtain fentanyl, heroin, cocaine and marijuana from suppliers in Chicago and Yonkers, N.Y. and then sell the drugs in Northeast Ohio.
Acosta obtained heroin from suppliers in Chicago. Jose Hernandez supplied vehicles with after-market trap compartments to transport hidden drugs and drug proceeds. The conspirators used a home on West 130th Street in Cleveland to store and distribute the drugs and drug money. The Rodrigos used a house on Maple Heights Boulevard in Maple Heights to store and distribute drugs and drug money, according to court documents.
“Cocoa plants don't grow in Cleveland and poppy plants don't grow in Parma," said Justin Herdman, U.S. Attorney for the Northern District of Ohio. “We increasingly see the Mexican cartels sending deadly narcotics into our region, and that was certainly true in this case.”
DEA Special Agent in Charge Timothy J. Plancon said: “The Drug Enforcement Administration’s Operation Loaded Deck exposed a network of violent drug cartel members who controlled a pipeline of cocaine and fentanyl from Mexico and Phoenix to Cleveland, along with several other major American cities including Detroit, Chicago, Atlanta and New York. The DEA, along with our federal, state, and local partners, has ruptured that pipeline to impede the flow of poison this organization was pushing onto our streets. This collaborative law enforcement effort sends a clear message that we have zero tolerance for drug dealers and their violence in northern Ohio. This investigation has demonstrated DEA’s resolve to dismantle criminal organizations such as this, and to reduce violent crimes and drug related activities in our community.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Ryan Korner, IRS-Criminal Investigation Special Agent in Charge. “Without these ill-gotten gains, the traffickers could not finance their organizations. IRS-CI is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
This case is being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Marisa Darden following an investigation by the Drug Enforcement Administration, the Ohio State Highway Patrol and the Internal Revenue Service – Criminal Investigations.
Vermont Man Sentenced to over Ten Years in Prison for Child Sexual OffensesRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Joseph Norko, 51, of Saint Johnsbury, Vermont, was sentenced on Friday to serve 121 months in prison for attempting to arrange sexual encounters with children.
According to court documents and statements made in court, Norko’s charges were based on two online undercover investigations. One investigation was conducted by the Portsmouth Police Department and one was conducted by the Lebanon Police Department. In July of 2017, the defendant responded to an online advertisement posted by a Portsmouth police officer purporting to offer sex with a 12-year-old girl. In September of 2017, he responded to an online advertisement posted by a Lebanon police officer purporting to be a 15-year-old girl. The defendant then traveled from Vermont to New Hampshire in order to engage in sexual contact with the person he thought was 15 years old.
Norko pleaded guilty to two counts of attempted online enticement and one count of interstate travel with intent to engage in illicit sexual activity on February 22, 2018. His prison sentence will be followed by ten years of supervised release.
“Protecting children from predators is an important priority of the U.S. Attorney’s Office,” said U.S. Attorney Murray. “Sadly, there are predators who use the anonymity of the Internet to locate and prey upon young victims. We will continue to work closely with our law enforcement partners to protect the safety of the children from those who would rob them of their innocence.”
“Online exploitation of children is one of the most disturbing crimes we investigate. It’s always very satisfying when our close coordination with our federal and state partners successfully brings the predators who engage in this behavior to justice,” said Peter C. Fitzhugh, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Rockingham County Attorney’s Office, Grafton County Attorney’s Office, Vermont State Police, the Lebanon Police Department, the Portsmouth Police Department, and the New Hampshire Internet Crimes Against Children Task Force, which includes members of several other police departments. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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U.S. Attorney’s Office Announces “Be Here for Kids” Child Safety Event in TucsonRead the Press Release
TUCSON, Ariz. - The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the ‘Be Here for Kids’ event on Friday, June 8, 2018 at the University of Arizona’s Student Recreation Center, located at 1400 E. 6th Street. The event will take place from 11:00 a.m. to 4:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the ‘Be Here for Kids’ campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life.
This year’s event is being presented in partnership with the University of Arizona Youth and Activities Department of Campus Recreation. Agencies participating in the event include, but are not limited to, The Arizona Rangers, Arizona Poison & Drug Information Center, Be Smart Gun Safety, Girl Scouts of Southern Arizona, MADD, Pima County Sheriff’s Office, Red Cross, and UMC Banner Child Life Program and Volunteer Resources, along with several local, state, and federal law enforcement agencies.
There will be several special four legged guests attending this year’s event. McGuff the Crime Dog, ATF’s Kira, Border Patrol’s Beny, and Tucson Police Department’s Luna. A few activities of interest include Ko Sho Martial Training Institute’s interactive self-defense demonstration at 1:30. Beginning at 2:30, Tucson Fire Department will have a wet-down for the children. After the event, there will be a presentation for children and parents to discuss the importance of good online citizenship and protecting yourself from online predators.
For more information on NCMEC, visit www.missingkids.com. For more information about the Be Here for Kids campaign, visit www.missingkids.com/behereforkids. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2018-075_Be Here for Kids_Tsn
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.
U.S. Attorney's Statement Regarding Additional Prosecutor Position to Fight Violent Crime in Central IllinoisRead the Press Release
SPRINGFIELD, Ill. – U.S. Attorney John E. Childress issued the following statement upon Attorney General Jeff Sessions’ announcement today that the Department of Justice has allocated additional positions across the country to fight violent crime, including the addition of a prosecutor position in the Central District of Illinois:
“On behalf of the U.S. Attorney’s Office, I would like to thank the Attorney General for the additional resources dedicated to the protection of the citizens of Central Illinois,” stated U.S. Attorney John Childress. “With the help of our law enforcement partners, we will continue to work together to promote the safety and interests of those citizens.”
U.S. Attorney's Office to add five prosecutors to focus on violent crime, opioids and immigration-related crimeRead the Press Release
On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney Justin Herdman 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 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 Northern District of Ohio, three of these AUSAs will focus on violent crime, one on civil enforcement, and one on prosecuting immigration crimes.
"These additional prosecutors will allow us to build on the work being done with our police and federal partners to target criminals who use violence and firearms to prey on our neighbors," U.S. Attorney Herdman said. "This will also allow us to continue to find creative solutions to the opioid epidemic, prosecute crimes associated with illegal immigration and to make Northern Ohio a safer place to live and work."
U.S. Attorney's Office in New Hampshire to Receive Two New Assistant U.S. Attorneys to Focus on Violent Crime and Civil EnforcementRead the Press Release
CONCORD – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the District of New Hampshire Scott W. Murray announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime and help roll back the devastating opioid crisis in New Hampshire.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. The District of New Hampshire will receive two of these attorneys. One will focus of violent crime, while the other will concentrate on civil enforcement of federal laws.
“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 Murray welcomed the announcement, saying “The horrible opioid crisis plaguing New Hampshire has brought with it great suffering, including thousands of overdose deaths, illnesses and violent criminal activity associated with the drug trade. Given limited resources, the additional prosecutor is critical to our ability to combat crimes of violence that endanger our citizens, especially those involving firearms. The new civil enforcement attorney will allow us to directly confront one of the factors contributing to the crisis. Specifically, we will take aggressive action against practitioners who prescribe or distribute controlled substances in an illegal, irresponsible manner. We will also step up our efforts to pursue civil remedies against health care providers who defraud Medicare and other federal benefit programs.”
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U.S. Attorney Town Congratulates Birmingham Mayor Woodfin on New Police ChiefRead the Press Release
BIRMINGHAM – Statement from U.S. Attorney Jay E. Town on Mayor Randall L. Woodfin’s announcement of Patrick Smith, a commander with the Los Angeles Police Department and a native of Tuscaloosa, as Birmingham’s chief of police:
“I congratulate Mayor Woodfin on his selection of Patrick Smith as the city’s next chief of police,” Town said. “We all look forward to Chief Smith’s leadership, vision and continued partnership. Our collective violent crime reduction and outreach task force initiatives have never looked so promising.”
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U.S. Attorney Announces First Assistant U.S. Attorney, Other Office Leadership PositionsRead the Press Release
U.S. Attorney John H. Durham today announced that Leonard C. Boyle has returned to the U.S. Attorney’s Office to serve as First Assistant United States Attorney, the office’s second-ranking position.
Since July 2009, Mr. Boyle served as Deputy Chief State’s Attorney where he supervised all prosecutions and investigations conducted by the Office of the Chief State’s Attorney. Mr. Boyle previously served in the U.S. Attorney’s Office from 1986 to 1998, the last four years of which he was Chief of the Criminal Division. After a short time in private practice, Mr. Boyle returned to government service in April 1999 as a Special Attorney to the U.S. Attorney General and investigated and prosecuted corrupt relationships between law enforcement personnel and organized crime figures in the Boston area. From January 2003 to August 2004, Mr. Boyle served in the U.S. Attorney’s Office as Counsel to the U.S. Attorney, and also supervised the Office’s Corporate Fraud Unit.
U.S. Attorney Durham notes that in addition to Mr. Boyle’s earlier work as a federal prosecutor, his wealth of law enforcement and management experience includes previous service as the Director of the FBI’s Terrorist Screening Center in Washington, D.C., from March 2007 to February 2009, and as Commissioner of Connecticut’s Department of Public Safety from August 2004 to March 2007.
Mr. Boyle graduated from the University of Hartford in 1980, and from the University of Connecticut School of Law in 1983. From 1975 to 1980, Mr. Boyle was a police officer for the Town of East Hartford.
“Len Boyle is a true public servant, and we and the entire Department of Justice are tremendously fortunate that he has decided to bring his legal skill, extraordinary judgment and decades of professional experience back to our Office,” said U.S. Attorney Durham.
In addition to the appointment of Mr. Boyle as First Assistant U.S. Attorney, U.S. Attorney Durham announced a change to the supervisory structure of the office, and the appointment of several Assistant U.S. Attorneys to office leadership positions.
U.S. Attorney Durham has appointed Susan L. Wines as Executive Assistant United States Attorney. Ms. Wines has been an Assistant U.S. Attorney in the District of Connecticut since December 2007, prosecuting complex white collar crime, elder fraud and tax matters. Prior to joining the office, she was in private practice in Los Angeles and, from 1997 to 2002, was an Assistant U.S. Attorney in the Central District of California where she prosecuted many violent offenders, including members and associates of the Mexican Mafia.
For several years, the office’s Criminal Division, which continues to be led by Assistant U.S. Attorney William J. Nardini, has included three program-based units: National Security and Major Crimes, Violent Crimes and Narcotics, and Financial Fraud and Public Corruption. The Criminal Division now comprises four units, as the National Security and Major Crimes Unit has been separated into two groups: National Security and Cybercrime, which is responsible for prosecuting matters involving international and domestic terrorism, customs enforcement and identity theft, and the rapidly expanding problem of sophisticated cybercrimes, and Major Crimes, which will be responsible for prosecuting matters including immigration, child exploitation, human trafficking, civil rights and hate crimes, government program fraud and environmental crimes.
U.S. Attorney Durham has appointed Peter S. Jongbloed as Chief of the National Security and Cybercrime Unit and Vanessa Richards as Deputy Chief. Sarah P. Karwan has been elevated to the position of Chief of the Major Crimes Unit and Sarala V. Nagala will serve as Deputy Chief.
The Violent Crimes and Narcotics Unit (VCN), which includes Project Safe Neighborhoods (PSN) prosecutions, the Organized Crime and Drug Enforcement Task Force (OCDETF), and violent crime, gangs and narcotics investigations, and will continue with S. Dave Vatti as Chief of the unit. Assistant U.S. Attorney Michael J. Gustafson has been named as a new Deputy Chief of the unit and will serve as PSN Coordinator, overseeing firearms prosecutions that seek to deter the illegal possession of guns and reduce gun and gang violence. Anthony E. Kaplan, has been named as the second Deputy Chief of the Unit, and will serve as OCDETF Coordinator, which targets major drug trafficking operations responsible for the distribution of large quantities of narcotics by major drug trafficking organizations.
Within the VCN Unit, Assistant U.S. Attorney Patrick F. Caruso has been named Opioid Coordinator, with responsibilities that include managing the Office’s HEAT program and other outreach efforts, prosecuting cases related to the overprescribing and dispensing of opioids, and leading the Office’s statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The Financial Fraud and Public Corruption Unit is responsible for investigating matters involving securities and investor fraud, public corruption, bank fraud and embezzlement, mortgage fraud, tax fraud, health care fraud, bankruptcy fraud and Foreign Corrupt Practices Act violations. David E. Novick continues to serve as Chief of the unit, and Michael S. McGarry remains as Deputy Chief.
U.S. Attorney Durham also announced that John B. Hughes remains the longstanding Chief of the Civil Division. In the Civil Division, Assistant U.S. Attorney Michelle McConaghy continues to lead the Defensive Unit, which defends claims filed against the U.S., including tort, medical malpractice, employment discrimination, immigration and foreclosures. Assistant U.S. Attorney Richard Molot heads the Civil Division’s Affirmative Civil Enforcement and Civil Rights Unit, which pursues claims on behalf of the U.S. in cases involving health care fraud, defense contractor fraud, drug diversion, forfeitures and environmental violations.
U.S. Attorney Durham also notice that Sandra S. Glover and Marc H. Silverman continue as Chief of Appeals and Deputy Chief of Appeals, respectively.
“Throughout my career, I have never failed to be impressed by the number of incredibly bright and talented individuals who choose federal service and work in our Office, and the professionalism with which they do their jobs,” said U.S. Attorney Durham. “Every member of this supervisory team and their colleagues are committed to making Connecticut a safer and better place to live, and every day I’m proud to work by their side in the cause of justice.”
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport and Hartford.
Two District Men Plead Guilty to Charges in Armed Home Invasion on Capitol HillRead the Press Release
WASHINGTON – Barrett Harrington, 31, and Germar Fox, 35, both of Washington D.C., have pled guilty to charges stemming from an armed home invasion that took place in July 2016 near Capitol Hill, U.S. Attorney Jessie K. Liu announced today.
Harrington and Fox pled guilty in the Superior Court of the District of Columbia to the charge of first-degree burglary while armed. Harrington entered his guilty plea on June 1, 2018, and Fox pled guilty today. The pleas, which are contingent upon the Court’s approval, call for each defendant to be sentenced to 102 months of incarceration. The Honorable Kimberly S. Knowles scheduled sentencing for Aug. 10, 2018. Both men were to stand trial today before deciding to plead guilty to the lead charge in the indictment.
According to the government’s evidence, the burglary took place at about 5:30 p.m. on July 15, 2016, with both Harrington and Fox conspiring to take items of personal property from the victim while he was present in his apartment in the 1000 block of New Jersey Avenue SE. Fox was armed with a firearm during the crime. According to the evidence, Harrington, Fox, and a third man conspired to commit the crime. The third man previously befriended the victim, but that was actually a ruse. On the day of the home invasion, the third man and the victim were together. The third man stepped out and informed Harrington and Fox that he was alone with the victim in the apartment. Harrington and Fox then barged into the apartment, bound the victim with duct tape, placed a pillow case over his head, assaulted him with the gun, and robbed him of his safe with thousands of dollars in cash and other items.
As they made their escape, a passerby noted the license plate of the getaway car, and provided it to police. Further investigation by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office, including fingerprint and DNA evidence, led to the arrests of the defendants. Harrington was arrested on June 24, 2017 and Fox was arrested on July 11, 2017. Both have been in custody ever since. The case against the third man remains pending.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance of the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Veronica Sanchez, Denise Cheung, and Stephen Rickard; Paralegal Specialists Tiffany Fogle and Donice Adams; Victim/Witness Advocate James Brennan; Litigation Technology Specialist Anisha Bhatia, and Criminal Investigator John Marsh.
Finally, she commended the work of Assistant U.S. Attorneys Kamil Shields, Alyse Constantinide and Louis Manzo, who investigated, indicted and prosecuted the matter.
Tulare Man Sentenced to Prison for Making False Statements to U.S. Probation OfficerRead the Press Release
FRESNO, Calif. — Rojelio Martin, 36, of Tulare, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to two years and 11 months in prison for making false statements to his federal probation officer while on supervised release after serving a prison sentence for a previous offense, U.S. Attorney McGregor W. Scott announced.
According to court documents, Martin was sentenced in 2013 to 33 months in prison and ordered to pay $44,860 in restitution for a scheme that had defrauded 75 taxpayers out of their tax refunds. Martin was released from prison in 2016, and beginning in April 2017, he failed to make the court-ordered restitution payments. He claimed that health-related absences from work prevented him from paying restitution, and on December 13, 2017, Martin gave his supervising U.S. Probation Officer a fraudulent and forged letter from his doctor and a fraudulent statement of earnings to support that claim.
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.
Three Prosecutors Added to Western District of Missouri to Focus on Violent CrimeRead the Press Release
KANSAS CITY, Mo. – U.S. Attorney General Jeff Sessions and U.S. Attorney for the Western District of Missouri Tim Garrison announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime and drug trafficking.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Among the 190 violent crime prosecutors are three new prosecutors being added to combat violent crime and drug trafficking in the Western District of Missouri. A new federal prosecutor will be added to the staff in each of the Kansas City, Springfield and Jefferson City offices.
“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 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.”
“We are confronting violent crime throughout the district,” said Garrison. “Missouri has been hit hard by methamphetamine trafficking and opioid abuse, along with the violent crime that drug trafficking inevitably brings. Three new prosecutors, strategically stationed in each of our district’s offices, will provide additional resources for us to aggressively prosecute these dangerous criminals.”
Tampa Woman Sentenced for Role in Credit Card Fraud and Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – United States District Judge Elizabeth A. Kovachevich has sentenced Nejah Prince (33, Tampa) to four years and nine months in federal prison for access device (credit card) fraud and for filing false claims against the United States. As part of Prince’s sentence, the court also entered a money judgment in the amount of $1,386.39, the proceeds of the fraud. Prince pleaded guilty on February 16, 2017.
According to court documents, in February 2013, officers from the Tampa Police Department executed a search warrant at Prince’s home. During the search, they found copies of confidential patient medical records from the Department of Veterans Affairs (VA), notebooks with the personal identifying information of at least 200 individuals, reloadable debit cards, and several tax returns. Further investigation revealed that Prince had used the identity of one person whose name was on a VA medical record to open a credit account at Montgomery Ward. She then made $1,300 in purchases using that account. In addition, IRS agents discovered that many of the identities found during the search warrant had been used in the filing of false and fraudulent income tax returns.
“Working together with our law enforcement partners we have come a long way in the effort to eradicate identity theft from our community. Would-be identity thieves should not rest easy because we will not give up the fight,” said Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “These crooks use stolen identities to defraud the government, but it is the untold devastation their actions inflict on the lives of their victims that drives our Special Agents to employ their unique financial expertise to tirelessly track down these criminals.”
This case was investigated by the IRS - Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Jay L. Hoffer.
St. Petersburg Man Sentenced to Three Years for Deepwater Horizon Fraud SchemeRead the Press Release
Tampa, Florida – United States District Judge Elizabeth A. Kovachevich has sentenced Joseph Bassler (62, St. Petersburg) to three years and one month in federal prison for money laundering and mail fraud. As part of his sentence, the court also entered a money judgment in the amount of $77,224, the proceeds of the scheme. Bassler had pleaded guilty on June 6, 2017.
According to court documents, Bassler, a licensed tax preparer, held himself out as a professional accountant who could assist companies affected by the Deepwater Horizon oil spill in filing business economic loss claims. As part of his scheme, Bassler prepared and submitted fraudulently inflated claims falsely alleging lost income on behalf of his clients. As payment for his services, he accepted a portion of the recovery money for the loss claims he had prepared. In total, Bassler submitted 62 claims, three of which were paid. For the three claims that were paid, Bassler and his clients received over $600,000 more than they were entitled to from the compensation fund. The remaining claims were denied when Bassler’s fraudulent scheme was discovered.
“When unprincipled fraudsters file false claims against businesses they frustrate the legal system and disrupt the natural flow of our economy,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation. “IRS-CI is fiercely committed to defending the integrity of our nation's tax system, and a significant aspect of that duty is to work with our fellow law enforcement partners to help maintain equity in the marketplace.”
“It is reprehensible to exploit any disaster for personal gain,” said Eric W. Sporre, Special Agent in Charge of the FBI Tampa Division. “It is our duty to protect the relief funds set aside for economic disasters such as the BP Deepwater Horizon Oil Spill and ensure the money goes to those deserving of assistance.”
This case was investigated by the IRS-Criminal Investigation and the FBI. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
Springfield Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A registered sex offender in Springfield, Mo., has been sentenced in federal court for receiving and distributing thousands of images of child pornography over the Internet.
Anthony Richard Salois, 51, of Springfield, was sentenced by U.S. District Judge Stephen R. Bough on Friday, June 1, 2018, to 15 years in federal prison without parole. The court also sentenced Salois to 20 years of supervised release following incarceration. Salois, who has a prior state conviction for sexual abuse involving a minor, has remained in federal custody since his arrest in July 2014.
Salois, who pleaded guilty on Feb. 1, 2018, admitted that he received and distributed child pornography over the Internet between Sept. 16 and 20, 2013. Salois utilized a peer-to-peer file-sharing network to download child pornography.
Law enforcement officers executed a search warrant at Salois’s residence on Oct. 13, 2013, and seized two desktop computers. Investigators found 3,973 images of child pornography, 50 multimedia files of child pornography, 641 images of child erotica and 39 multimedia files of child erotica on those computers.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Faces at Least 15 Years in Prison for Child Sexual Exploitation, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man pleaded guilty in federal court today to the sexual exploitation of a child and to illegally possessing a firearm.
Corey Dean Frasher, 42, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charges contained in an April 6, 2017, federal indictment. Frasher remains in federal custody.
The investigation began on Jan. 30, 2017, when law enforcement officers received two Cyber Tips from the National Center for Missing and Exploited Children. In the CyberTips, Yahoo! Reported that an individual (later identified as Frasher) had uploaded images of child pornography to his Flickr account.
Officers executed a search warrant at Frasher’s residence on Feb. 22, 2017, and seized a computer tower as well as a Winchester 12-gauge shotgun and a loaded Harrington & Richardson 16-gauge shotgun. Investigators examined the computer tower and found a series of child pornography images and videos that were taken at Frasher’s residence. The images and videos depicted Frasher engaged in sexually explicit conduct with a minor victim.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Frasher has prior felony convictions.
Under federal statutes, Frasher is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southwest Missouri Cyber Crimes Task Force and the Springfield, Mo., Police Department.
Spring Hope Man Sentenced for Drug ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III, sentenced EQUAN CORNELIUS DUNSTON, 26, of Spring Hope, North Carolina to 114 months imprisonment followed by 5 years supervised release.
DUNSTON was named in a Criminal Information filed on January 10, 2018 charging him with conspiracy to distribute twenty-eight grams or more of cocaine base (crack) between June 20, 2017 and August 17, 2017. On March 5, 2018, DUNSTON pled guilty to the single count Criminal Information.
According to the investigation, beginning in June 2017, deputies with the Nash County Sheriff’s Office began investigating the narcotics distribution activity of DUNSTON. A confidential informant was utilized to make six controlled purchases of over 300 grams of cocaine base (crack) from DUNSTON between June 20, 2017 and August 14, 2017. DUNSTON conspired with others in his narcotics distribution.
Investigation of this case was conducted by the Tar River Regional Drug Task Force, Nash County Sheriff’s Office, and Spring Hope Police Department. Assistant United States Attorney Dena King represented the government.
Société Générale S.A. Agrees to Pay $860 Million in Criminal Penalties for Bribing Gaddafi-Era Libyan Officials and Manipulating Libor RateRead the Press Release
Société Générale S.A. (Société Générale), a global financial services institution based in Paris, France, and its wholly owned subsidiary, SGA Société Générale Acceptance N.V., have agreed to pay a combined total penalty of more than $860 million to resolve charges with law enforcement authorities in the United States and France, including $585 million relating to a multi-year scheme to pay bribes to officials in Libya and $275 million for violations arising from its manipulation of the London InterBank Offered Rate (LIBOR), one of the world’s leading benchmark interest rates. Together with approximately $475 million in regulatory penalties and disgorgement that Société Générale has agreed to pay to the Commodity Futures Trading Commission (CFTC) in connection with the LIBOR scheme, the total penalties to be paid by the bank exceed $1 billion.
In related proceedings, Société Générale reached a settlement with the Parquet National Financier (PNF) in Paris relating to the Libya corruption scheme. The United States will credit $292,776,444 that Société Générale will pay to the PNF under its agreement, equal to 50 percent of the total criminal penalty otherwise payable to the United States. This is the first coordinated resolution with French authorities in a foreign bribery case.
SGA Société Générale Acceptance N.V. is scheduled to plead guilty in connection with the resolution of the foreign bribery case and Société Générale will enter into a deferred prosecution agreement on Tuesday afternoon in federal court in Brooklyn before Chief United States District Judge Dora L. Irizarry. The plea agreement and the deferred prosecution agreement are subject to court approval by Chief Judge Irizarry.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Matthew J. DeSarno, Special Agent-in-Charge, Federal Bureau of Investigation (FBI), Washington Field Office, Criminal Division, and Eric Hylton, Deputy Chief, Internal Revenue Service-Criminal Investigation (IRS-CI), made the announcement.
“The resolution announced today by the Department with Societe Generale and a subsidiary, which includes a guilty plea, admissions of wrongdoing, significant corrective measures and hundreds of millions of dollars in penalties, sends a powerful message to financial institutions that engage in corruption and manipulation in the financial markets that they will be held accountable,” stated United States Attorney Donoghue. “The United States will vigorously protect the integrity of financial markets by holding responsible to the full extent of the law those banks, corporations and individuals who seek to corrupt government officials to enrich themselves.”
“For years, Société Générale undermined the integrity of global markets and foreign institutions by issuing false financial data and by fraudulently securing contracts through bribery,” said Acting Assistant Attorney General Cronan. “Today’s resolution – which marks the first coordinated resolution with France in a foreign bribery case – sends a strong message that transnational corruption and manipulation of our markets will be met with a global and coordinated law enforcement response.”
“Today’s resolution demonstrates that fraudulently manipulating LIBOR and deceiving the financial market has severe consequences, and the FBI will not tolerate this type of criminal activity,” said FBI Special Agent-in-Charge DeSarno. “The FBI remains committed to holding institutions accountable for their actions in breaking the law and manipulating the global benchmark interest rate. The personnel of the FBI Washington Field Office have dedicated significant time and resources to investigating complex financial fraud schemes such as this one, and I want to thank them for their tireless efforts as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”
“Today’s announcement resulted from the unraveling of international financial transactions orchestrated by Société Générale and its agents to facilitate illegal payments to foreign government officials in Libya,” said IRS-CI Deputy Chief Hylton. “IRS-CI is a trusted partner in pursuit of those who use pervasive bribery schemes to circumvent the law. We are committed to maintaining fair competition, free of corrupt practices, through global teamwork and our robust financial investigative talents.”
The FCPA Case
According to the companies’ admissions, between 2004 and 2009, Société Générale paid bribes through a Libyan “broker” in connection with 14 investments made by Libyan state-owned financial institutions. For each transaction, Société Générale paid the Libyan broker a commission of between one and a half and three percent of the nominal amount of the investments made by the Libyan state institutions. In total, Société Générale paid the Libyan broker over $90 million, portions of which the Libyan broker paid to high-level Libyan officials in order to secure the investments from various Libyan state institutions for Société Générale. As a result of the corrupt scheme, Société Générale obtained 13 investments and one restructuring from the Libyan state institutions worth a total of approximately $3.66 billion, and earned profits of approximately $523 million.
Société Générale will enter into a deferred prosecution agreement in connection with a criminal information charging the company with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of transmitting false commodities reports. Additionally, Société Générale’s subsidiary, SGA Société Générale Acceptance N.V., will plead guilty to a one-count criminal information filed today in federal court in Brooklyn charging the company with a conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement, Société Générale will pay a total criminal penalty of $860 million to the Department of Justice. Société Générale also agreed to continue to cooperate with the Department’s investigation and adopt and maintain enhanced compliance procedures.
The Department of Justice entered into this resolution in part due to Société Générale’s failure to voluntarily self-disclose the companies’ misconduct to the Department; the seriousness of the companies’ conduct, including the high value of the bribes paid to foreign officials; the company’s substantial, though not full, cooperation with the Department; and the company’s significant remediation which, together with the company’s risk profile and ongoing monitoring by L’Agence Française Anticorruption, resulted in the Department determining that a monitor was not necessary in this case.
The LIBOR Case
As admitted by the company, between May 2010 and at least October 2011, Société Générale promulgated falsely deflated U.S. Dollar (USD) LIBOR submissions to make it look as though Société Générale was able to borrow money at more favorable interest rates than it was actually able to do so. This downward manipulation allowed Société Générale to create the appearance that it was stronger and more creditworthy than it was.
The USD LIBOR manipulation scheme was ordered by senior executives of Société Générale, who tasked the managers of the company’s Treasury Department with overseeing the execution of the deflation effort. Several employees within Société Générale’s Treasury Department ensured that the company’s USD LIBOR submissions were altered in accordance with the deflation directive. Société Générale’s misconduct frequently altered the daily rate at which USD LIBOR was set, which affected financial products worldwide, including interest rate swaps, futures contracts and other derivative financial products.
Further, in 2006, certain Société Générale employees in London and Tokyo worked together to manipulate Société Générale’s Japan Yen (JPY) LIBOR submissions. These employees endeavored to manipulate JPY LIBOR in order to benefit the trading positions of a Société Générale employee. This employee had numerous deals tied to JPY LIBOR, and manipulation of JPY LIBOR improved the profitability of the employee’s trading book.
By the terms of the agreement, Société Générale will pay a fine of $275 million to resolve the LIBOR misconduct matter. Additionally, in August 2017, two individuals—former Société Générale Global Treasury Head Danielle Sindzingre and former Paris Treasury Head Muriel Bescond—were indicted for their roles in the scheme. Both individuals remain at large.
The FBI’s New York Field Office and IRS-Criminal Investigation’s New York office are investigating the case.
Assistant U.S. Attorneys David C. Pitluck and James P. McDonald of the Eastern District of New York, and Trial Attorneys Gerald M. Moody Jr. and Dennis R. Kihm of the Criminal Division’s Fraud Section are prosecuting the FCPA case. Assistant U.S. Attorney Matthew S. Amatruda of the Eastern District of New York and Assistant Chief Carol Sipperly, Trial Attorneys Timothy A. Duree and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the LIBOR case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission and the CFTC in this matter. The PNF, the United Kingdom’s Serious Fraud Office, the Federal Office of Justice in Switzerland and the Office of the Attorney General in Switzerland also provided significant cooperation.
E.D.N.Y. Docket No. 18-CR-274 (DLI)
E.D.N.Y. Docket No. 18-CR-253 (DLI)
Société Générale S.A. Agrees to Pay $860 Million in Criminal Penalties for Bribing Gaddafi-Era Libyan Officials and Manipulating LIBOR RateRead the Press Release
Société Générale S.A. (Société Générale), a global financial services institution based in Paris, France, and its wholly owned subsidiary, SGA Société Générale Acceptance N.V., have agreed to pay a combined total penalty of more than $860 million to resolve charges with criminal authorities in the United States and France, including $585 million relating to a multi-year scheme to pay bribes to officials in Libya and $275 million for violations arising from its manipulation of the London InterBank Offered Rate (LIBOR), one of the world’s leading benchmark interest rates. SGA Société Générale Acceptance N.V. will plead guilty in the Eastern District of New York in connection with the resolution of the foreign bribery case. Together with approximately $475 million in regulatory penalties and disgorgement that Société Générale has agreed to pay to the Commodity Futures Trading Commission (CFTC) in connection with the LIBOR scheme, the total penalties to be paid by the bank exceed $1 billion.
In related proceedings, Société Générale reached a settlement with the Parquet National Financier (PNF) in Paris relating to the Libya corruption scheme. The United States will credit $292,776,444 that Société Générale will pay to the PNF under its agreement, equal to 50 percent of the total criminal penalty otherwise payable to the United States. This is the first coordinated resolution with French authorities in a foreign bribery case.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office's Criminal Division, Assistant Director in Charge William F. Sweeney Jr. of the FBI New York Field Office and Deputy Chief Eric Hylton of IRS Criminal Investigation made the announcement.
“For years, Société Générale undermined the integrity of global markets and foreign institutions by issuing false financial data and by fraudulently securing contracts through bribery,” said Acting Assistant Attorney General Cronan. “Today’s resolution – which marks the first coordinated resolution with France in a foreign bribery case – sends a strong message that transnational corruption and manipulation of our markets will be met with a global and coordinated law enforcement response.”
“The resolution announced today by the Department with Societe Generale and a subsidiary, which includes a guilty plea, admissions of wrongdoing, significant corrective measures and hundreds of millions of dollars in penalties, sends a powerful message to financial institutions that engage in corruption and manipulation in the financial markets that they will be held accountable,” said U.S. Attorney Donoghue. “The United States will vigorously protect the integrity of financial markets by holding responsible to the full extent of the law those banks, corporations and individuals who seek to corrupt government officials to enrich themselves.”
“Today’s resolution demonstrates that fraudulently manipulating LIBOR and deceiving the financial market has severe consequences, and the FBI will not tolerate this type of criminal activity,” said FBI Special Agent in Charge DeSarno. “The FBI remains committed to holding institutions accountable for their actions in breaking the law and manipulating the global benchmark interest rate. The personnel of the FBI Washington Field Office have dedicated significant time and resources to investigating complex financial fraud schemes such as this one, and I want to thank them for their tireless efforts as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”
“When financial institutions convince foreign officials to accept bribes in return for lucrative business deals, their actions directly threaten the international free market system, not to mention our national security," said FBI Assistant Director in Charge Sweeney. "But being geographically out of sight doesn’t mean you’re out of reach from prosecution. No matter who you are, where you are, or how much money you have, the FBI will continue to use all resources at our disposal to find you, uncover your crimes, and reveal them for what they really are. Many thanks to the hardworking men and women of the FBI’s New York Field Office for leading the effort to expose this scheme and bring its perpetrators to justice.”
“Today’s announcement resulted from the unraveling of international financial transactions orchestrated by Société Générale and its agents to facilitate illegal payments to foreign government officials in Libya,” said IRS-CI Deputy Chief Hylton. “IRS-CI is a trusted partner in pursuit of those who use pervasive bribery schemes to circumvent the law. We are committed to maintaining fair competition, free of corrupt practices, through global teamwork and our robust financial investigative talents.”
The FCPA Case
According to the companies’ admissions, between 2004 and 2009, Société Générale paid bribes through a Libyan “broker” in connection with 14 investments made by Libyan state-owned financial institutions. For each transaction, Société Générale paid the Libyan broker a commission of between one and a half and three percent of the nominal amount of the investments made by the Libyan state institutions. In total, Société Générale paid the Libyan Intermediary over $90 million, portions of which the Libyan broker paid to high-level Libyan officials in order to secure the investments from various Libyan state institutions for Société Générale. As a result of the corrupt scheme, Société Générale obtained 13 investments and one restructuring from the Libyan state institutions worth a total of approximately $3.66 billion, and earned profits of approximately $523 million.
Société Générale will enter into a deferred prosecution agreement in connection with a criminal information charging the company with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of transmitting false commodities reports. Additionally, Société Générale’s subsidiary, SGA Société Générale Acceptance N.V., will plead guilty to a one-count criminal information filed today in the Eastern District of New York charging the company with a conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, Société Générale agreed to pay a total criminal penalty of $585 million to the Department. Société Générale also agreed to continue to cooperate with the Department’s investigation and adopt and maintain enhanced compliance procedures. The guilty plea is scheduled to take place on Tuesday, June 5, before U.S. District Judge Dora L. Irizarry of the Eastern District of New York.
The Department entered into this resolution in part due to Société Générale’s failure to voluntarily self-disclose the companies’ misconduct to the Department; the seriousness of the companies’ conduct, including the high value of the bribes paid to foreign officials; the company’s substantial, though not full, cooperation with the Department; and the company’s significant remediation which, together with the company’s risk profile and ongoing monitoring by L’Agence Française Anticorruption, resulted in the Department determining that a monitor was not necessary in this case.
The LIBOR Case
As admitted by the company, between May 2010 and at least October 2011, Société Générale promulgated falsely deflated U.S. Dollar (USD) LIBOR submissions to make it look as though Société Générale was able to borrow money at more favorable interest rates than it was actually able to do. This downward manipulation allowed Société Générale to create the appearance that it was stronger and more creditworthy than it was.
The USD LIBOR manipulation scheme was ordered by senior executives of Société Générale, who tasked the managers of the company’s Treasury Department with overseeing the execution of the deflation effort. Several employees within Société Générale’s Treasury Department ensured that the company’s USD LIBOR submissions were altered in accordance with the deflation directive. Société Générale’s misconduct frequently altered the daily rate at which USD LIBOR was set, which affected financial products worldwide, including interest rate swaps, futures contracts and other derivative financial products.
Further, in 2006, certain Société Générale employees in London and Tokyo worked together to manipulate Société Générale’s Japan Yen (JPY) LIBOR submissions. These employees endeavored to manipulate JPY LIBOR in order to benefit the trading positions of a Société Générale employee. This employee had numerous deals tied to JPY LIBOR, and manipulation of JPY LIBOR improved the profitability of the employee’s trading book.
By the terms of the agreement, Société Générale will pay a fine of $275 million to resolve the LIBOR misconduct matter. Additionally, in August 2017, two individuals—former Société Générale Global Treasury Head Danielle Sindzingre and former Paris Treasury Head Muriel Bescond—were indicted for their roles in the scheme. Both individuals remain at large. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The deferred prosecution agreement and the plea agreement are subject to court approval.
The FBI’s Washington and New York Field Offices and IRS-Criminal Investigation’s New York office are investigating the case. Trial Attorneys Gerald M. Moody Jr. and Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David C. Pitluck and James P. McDonald of the Eastern District of New York are prosecuting the FCPA case. Assistant Chief Carol Sipperly, Trial Attorneys Timothy A. Duree and Gary A. Winters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew S. Amatruda of the Eastern District of New York are prosecuting the LIBOR case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission and the CFTC in this matter. The PNF, the United Kingdom’s Serious Fraud Office, the Federal Office of Justice in Switzerland and the Office of the Attorney General in Switzerland also provided significant cooperation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s Fraud Section FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Shreveport man sentenced to 70 months in prison for drug distribution, firearm offenseRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Shreveport man was sentenced last week to five years and 10 months in prison for possessing marijuana with the intent to distribute and use of a firearm in a drug trafficking offense.
Xavier Breonte Strickland, 29, of Shreveport, was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to three years of supervised release. On June 2, 2017, officers went to Strickland’s residence to serve a parole warrant, and after someone opened the door, officers saw Strickland exit a bedroom. Officers searched the house and found a loaded Ruger 1911 semiautomatic pistol in the closet of the bedroom where they saw Strickland. Next to the bag was a black zipper pouch that contained a digital scale and a bag containing 31 grams of marijuana.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Shoshone Paiute Tribe Member Sentenced to 15 Years in Prison for Second-Degree MurderRead the Press Release
RENO, Nev. – An Owyhee, Nevada, man was sentenced today to 180 months in federal prison and five years of supervised release for second-degree murder of a person on Duck Valley Indian Reservation, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Borden Bitt, 25, was sentenced by U.S. District Judge Larry R. Hicks. Bitt pleaded guilty to one count of second-degree murder within Indian Country. He is a member of the Shoshone Paiute Tribes of the Duck Valley Indian Reservation. Owyhee is located within the exterior boundaries of the Duck Valley Indian Reservation and is designated as Indian Country.
According to court documents, on July 23, 2017, the Bureau of Indian Affairs (BIA) received an emergency phone call about a fight at a house on Atkins Road in Owyhee. A BIA officer arrived on scene and found the victim face down in a pool of blood on the floor. Emergency medical services arrived and determined that the victim was deceased. Bitt admitted that he approached the victim from behind with a large single-blade hunting knife and slit the victim’s throat.
The case was investigated by the FBI and the Bureau of Indian Affairs. The case was prosecuted by Assistant U.S. Attorney Sue Fahami.
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