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16 July 2018
Harrisburg Man Pleads Guilty to Unlawful Possession of A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tremayne James, age 24, of Harrisburg, Pennsylvania, pled guilty on July 10, 2018, before United States District Court Judge Sylvia H. Rambo to unlawful possession of a firearm by a convicted felon.
According to U.S. Attorney David J. Freed, James possessed a loaded .40 caliber, Smith and Wesson firearm in his Harrisburg residence on December 7, 2017. James’ 10 year-old nephew found the firearm and it accidentally fired, striking the boy’s six year-old sister in the chest. The victim was treated at the Hershey Medical Center and survived.
The case was investigated by the Harrisburg Police Bureau and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to 10 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Keion Griffin, age 23, of Harrisburg, Pennsylvania, was indicted on July 11, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Griffin possessed with intent to distribute cocaine base and marijuana on April 15, 2017, in Swatara Township. The indictment also alleges that Griffin possessed multiple handguns in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Swatara Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hamburg Man Pleads Guilty to Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Joseph C. Paternostro, 28, of Hamburg, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between July 2016 and May 2, 2017, the defendant regularly purchased cocaine from a source of supply in Dunkirk, NY on a weekly basis for resale to local customers. On February 9, 2017, and February 16, 2017, the Drug Enforcement Administration conducted two undercover purchases of cocaine from Paternostro.
On November 16, 2017, law enforcement officers surveilled the defendant’s vehicle and conducted a probable cause traffic stop. Officers recovered cocaine from Paternostro’s pocket. Officers also executed a New York State search warrant at the defendant’s residence on Lake Heights in Hamburg. During the search, a quantity of cocaine was seized, as well as a drug scale with cocaine residue, and drug packaging material.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; and the Evans Police Department, under the direction of Chief Douglas Czora.
Sentencing is scheduled for October 18, 2018, at 2:30 p.m. before Judge Geraci.
Georgetown Man Sentenced to 190 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, Ky. – A Georgetown man, Nicholas Aaron Willinger, 34, has been sentenced to 190 months in federal prison, to be followed by a life term of supervised release, for knowingly receiving child pornography.
On Monday, Senior United States District Judge Joseph M. Hood formally sentenced Willinger, who must serve 85 percent of his federal prison sentence.
Willinger previously admitted that, in November of 2013, he knowingly received images of child pornography on his laptop computer. A forensic examination of Willinger’s device revealed 56 videos of child pornography, including eleven videos depicting children under the age of six and four videos that depicted sadistic or masochistic conduct.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy S. Hess, Special Agent in Charge, Federal Bureau of Investigation, and Kentucky State Police Commissioner Rick Sanders jointly announced the sentence.
The investigation was conducted by the FBI and the KSP. The United States was represented by Assistant United States Attorney David Marye.
Fresno Gamecock Breeder Pleads Guilty to Animal Cruelty ChargeRead the Press Release
FRESNO, Calif. — Thomas Lee Crow, 49, of Fresno, pleaded guilty today to aiding and abetting an unlawful animal fighting venture involving a large cockfighting enterprise, U.S. Attorney McGregor W. Scott announced.
Animal fighting is illegal under federal law. In cockfighting, roosters are typically outfitted with sharp instruments or spurs on their legs and fight to the death with spectators betting on the outcome.
According to his plea agreement, law enforcement officers searched Crow’s rural Fresno residential property last summer after he was found at a large cockfighting event in Kerman. At the cockfight, Fresno County deputies and detectives recovered 129 fighting roosters, including 28 dead and nine injured roosters. Crow was in possession of $22,800 in cash, along with a score sheet that tracked fighting bird entries and winnings. They also found cockfighting equipment, such as gaffs, blades, sheaths, gamecock leather boots, and scales. During the search of Crow’s residence, officers found an additional 200 fighting roosters and other items associated with cockfighting. They seized over 300 gaffs, including Mexican slashers, injectables used for fighting birds, and scoresheets.
Crow is scheduled for sentencing on October 22, 2018, before Chief U.S. District Judge Lawrence J. O’Neill. Crow faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fresno County Sheriff’s Office, Humane Society, and Central California SPCA. The Environmental Crimes Section of the U.S. Department of Justice also assisted in the investigation.
The U.S. Attorney’s Office has partnered with the Rural Crimes and Animal Cruelty Unit of the Fresno County District Attorney’s Office in coordinating the filing of charges against Crow and three spectators at the cockfight in Kerman. The District Attorney’s Office prosecuted and convicted the spectators Job Hernandez, 35, of Visalia, Javier Flores-Arreola, 49, of Los Banos, and Javier Cerda, 65, of Reedley on animal cruelty charges. Assistant United States Attorney Karen A. Escobar prosecuted the case against Crow.
Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
A dual U.S.-Venezuelan citizen pleaded guilty today for his role in a scheme to bribe officials of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), and for his role in an international money laundering scheme involving the bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Luis Carlos De Leon-Perez (De Leon), 42, a citizen of the United States and Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted De Leon’s plea. Sentencing is scheduled for Sept. 24.
De Leon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Nervis Gerardo Villalobos Cardenas (Villalobos), 51; Cesar David Rincon Godoy (Cesar Rincon), 51; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39.
According to admissions made in connection with De Leon’s plea, between 2011 and 2013, he conspired with Villalobos, Cesar Rincon, Isturiz and others, all of whom were then officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, De Leon admitted that he solicited and directed bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 55, of Coral Gables, Florida, to PDVSA officials in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. De Leon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in Switzerland held in the names of individuals or entities other than De Leon and his co-conspirators.
As part of his plea agreement, De Leon also admitted to soliciting bribes from other owners of energy companies based in the United States and elsewhere, and directing a portion of such bribes to PDVSA officials in order to assist those individuals and their companies in winning business with PDVSA and to obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors.
Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the FCPA for their respective roles in the bribery scheme. Cesar Rincon previously pleaded guilty to one count of conspiracy to commit money laundering. They currently await sentencing.
The charges against Villalobos, Isturiz and Reiter remain pending. Each of the three remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. Villalobos is also charged with one count of conspiracy to violate the FCPA. Villalobos and Reiter remain in Spain pending extradition and Isturiz remains at large.
The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
De Leon is the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including De Leon, Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 12 individuals in connection with the investigation.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Teacher and Summer Camp Employee Admits Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted his role in producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Colin M. Skeele, 32, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of producing child pornography. Skeele was previously arrested and charged by complaint on Aug. 4, 2016.
According to documents filed in this case and statements made in court:
Skeele previously worked as a counselor at a boys’ summer camp in Hardwick, New Jersey, and as a teacher at parochial schools in Boonton, New Jersey, and Stirling, New Jersey.
In 2011, Skeele became Facebook friends with a boy that Skeele met while working as a counselor at a boys’ summer camp in Hardwick, New Jersey. In Facebook messages with the minor, Skeele offered to pay money for the minor to take sexually explicit photographs to send to Skeele. In one instance, Skeele paid the boy approximately $100 to send nude images of himself. Skeele later sent at least one pornographic image of that minor to another minor that had also attended the summer camp.
On multiple occasions in February 2012, Skeele communicated online with individuals located in the Philippines to purchase live child sexual abuse shows, which Skeele viewed via an online video chat service. Instant messages obtained during the investigation revealed that Skeele used an online fund transfer service to purchase live sexual abuse videos of young children.
Anyone with information regarding possible victims of this activity is urged to contact the Department of Homeland Security in Newark, New Jersey, at 973-776-5500.
The charge of producing child pornography to which Skeele pleaded guilty is punishable by a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 22, 2018.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation that led to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Criminal Division.
Defense Counsel: Jay V. Surgent, Esq., Parsippany, New Jersey
Former Second Chance Body Armor President Settles False Claims Act Case Related to Defective Bullet Proof VestsRead the Press Release
Richard C. Davis, the founder and former president and CEO of Michigan-based Second Chance Body Armor, Inc., agreed to resolve claims under the False Claims Act in connection with his role in the sale of defective Zylon bullet-proof vests purchased by the United States for federal, state, local and tribal law enforcement agencies, the Justice Department announced today. Mr. Davis will relinquish his interest in $1.2 million in assets previously frozen by the United States and will pay an additional $125,000 to the United States. This settlement is based on Mr. Davis’ ability to pay.
Second Chance sold body armor to state, local and tribal law enforcement agencies reimbursed by the Department of Justice’s Bulletproof Vest Partnership (BVP) program and to federal agencies under contracts with the General Services Administration. The United States alleged that Second Chance’s vests were defective due to the loss of their ballistic capability when exposed to heat and humidity. The United States also alleged that by 2001, Davis was aware that Second Chance’s Zylon body armor was degrading at what he described as a “disappointing” rate.
The United States further alleged that, rather than using a $6 million payment from Toyobo Co. Ltd., the manufacturer of Zylon fiber, to fix the degradation problem, Second Chance pocketed the money and Davis and other Second Chance owners began meeting with various investment bankers in an effort to sell Second Chance. These efforts to sell the company allegedly stopped after a Forest Hills, Pennsylvania police officer was shot through his Second Chance Zylon vest in June 2003. Second Chance filed for bankruptcy in 2004 and was liquidated.
Subsequent tests by the National Institute of Justice (NIJ) of Zylon-containing vests found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. The performance of Second Chance Zylon vests were reported to be among the worst. The NIJ removed all Zylon-containing vests from its list of compliant products, and Zylon is no longer used in ballistic vests.
“The Department of Justice will pursue those who attempt to fraudulently profit at the expense of the United States, particularly when the stakes are life or death,” said Acting Associate Attorney General Jesse Panuccio. “Bullet proof vests protect the brave men and women of our nation’s law enforcement community, and those who manufacture and sell these products have a solemn duty to ensure their safety and efficacy.”
"Fraudulently presenting false claims to the government regarding products intended to protect the lives of public servants is illegal and utterly unacceptable," said Carol F. Ochoa, Inspector General of the U.S. General Services Administration.
“I again want to emphasize that marketing faulty protective gear to law enforcement officers who put themselves in the line of fire is an unconscionable act and a betrayal of trust” said Jon Adler, Director of the Bureau of Justice Assistance. “Our unwavering priority is to protect our officers as they keep our communities safe.”
The settlement resolves, in part, allegations filed in a lawsuit by Aaron Westrick, Ph.D., a former employee of Second Chance, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case as to the allegations against Davis. Dr. Westrick will receive $28,750 plus a share of whatever the United States ultimately recovers from the previously frozen funds.
This settlement is part of a larger investigation of the body armor industry’s use of Zylon. The United States has previously recovered over $132 million from 18 corporations and individuals who participated in the sale of Zylon body armor. The Civil Division has transferred over $22 million of these recovered funds to the BVP program to replace BVP funds which had been used to purchase Zylon vests. The funds transferred to the BVP program will be used to fund the purchase of additional ballistic-resistant vests for state, local and tribal law enforcement officers. The United States is continuing to pursue claims against Honeywell International Inc., which allegedly sold a laminated version of Zylon for use in police armor.
The investigation and litigation of this matter were handled by the Civil Division’s Commercial Litigation Branch; the General Services Administration, Office of the Inspector General; the Department of Commerce, Office of Inspector General; the Defense Criminal Investigative Service; the U.S. Army Criminal Investigative Command; the Department of the Treasury, Office of Inspector General for Tax Administration; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; and the Defense Contracting Audit Agency.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The lawsuit partially resolved by the settlement is captioned United States ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (PLF) (D.D.C.).
Former Employee of Container Manufacturing Company Guilty of Tampering with Consumer ProductsRead the Press Release
BOWLING GREEN, Ky. – A former employee of a container manufacturing plant, located in Hart County, Kentucky, pled guilty in United States District Court to tampering with consumer products Friday before United States District Judge Greg N. Stivers, announced United States Attorney Russell M. Coleman.
In 2016, Waylon J. Horton, age 44, worked as an employee of the container manufacturing plant in the area of Print Set-Up on the production line for Styrofoam drinking cups at a specific company facility in Horse Cave, Kentucky. On two separate occasions in July 2016, Horton, with reckless disregard for the risk of death or bodily injury it might cause, placed pieces of broken glass in Styrofoam drinking cups that were then shipped to fast food restaurants. Glass pieces were subsequently found in cups at three different restaurants in Ohio, Kentucky, and Indiana. After receiving complaints, the container manufacturing plant put the distribution of Styrofoam cups that were produced in its facility on hold and seven additional boxes containing Styrofoam cups with broken glass were ultimately found.
At sentencing, Horton could be sentenced to up to 10 years in prison, a period of supervised release of up to three years, and fined up to $250,000. According to the plea agreement, Horton will also owe restitution in an amount to be determined at sentencing. Horton is scheduled for sentencing before Judge Greg N. Stivers on October 11, 2018, at 9:45 AM in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys Amanda Gregory and Marisa Ford and is being investigated by the Federal Bureau of Investigation and the Hart County Sheriff’s Office.
Former Congressional Staffer Sentenced to 18 Months in Prison on Federal Bribery and Extortion ChargesRead the Press Release
LOS ANGELES – A former staffer for a member of the United States Congress was sentenced today to 18 months in prison for bribery and attempted extortion after demanding and accepting $5,000 to prevent the closure of a marijuana shop in the City of Compton.
Michael Kimbrew, 45, of Santa Clarita, was sentenced by United States District Judge R. Gary Klausner for attempting to extort a marijuana dispensary in Compton and threatening to shut down the shop if the owners did not pay him a $5,000 bribe.
According to court testimony, in exchange for the payoff, Kimbrew promised to wield his power as a federal employee and public official to help the shop obtain a lucrative permit to continue operating.
According to the evidence presented at trial, Kimbrew claimed to “oversee all activities in Compton” and threatened the shop’s owners, an employee of the shop, and later an undercover FBI agent in recorded meetings that he was going to shut down the shop unless he received the bribe. He claimed that, by virtue of his federal employment for the Congress member, he had “authority” and “jurisdiction” over what Compton public officials and departments did. In exchange for the $5,000, he promised to exercise that authority and jurisdiction to keep the shop in business.
Ultimately, during a lunch meeting in Compton, Kimbrew accepted $5,000 in cash hidden inside of a restaurant menu from the undercover agent. When he pocketed the cash, Kimbrew pledged his “undying support” to protect the shop.
“The conviction in this case demonstrates our ongoing commitment to the people of the District to root out public corruption,” said United States Attorney Nicola T. Hanna.
In sentencing documents, the government argued for imprisonment, citing, among other factors “the need to send a message to both [Kimbrew] and other public servants that corruption will not be tolerated.”
In addition to the prison term, Judge Klausner ordered Kimbrew to serve three years of supervised release and pay $5,000 in restitution and $4,000 in fines.
This case was investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Former Business Partner of U.S. Military Contractor Pleads Guilty to Bribery Scheme Related to Contracts in Support of Iraq WarRead the Press Release
A former business partner of a U.S. military contractor pleaded guilty today to one count of bribery for his role in a years-long scheme to bribe U.S. Army contracting officials stationed at a U.S. military base in Kuwait, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
According to the plea filed today in the U.S. District Court for the Northern District of Alabama, Finbar Charles, 62, a citizen of Saint Lucia most recently residing in Baguio City, Philippines, was a business partner of a former U.S. military contractor, Terry Hall. As Hall’s business partner, Charles facilitated Hall and others in providing millions of dollars in bribes in approximately 2005 to 2007 to various U.S. Army officials in exchange for preferential treatment for Hall’s companies in connection with Department of Defense (DOD) contracts to deliver bottled water and construct security fencing to support U.S. troops stationed in Kuwait and Iraq.
As part of his role in this criminal conspiracy, Charles managed bank accounts in Kuwait and the Philippines that he used to receive DOD payments and transfer illegal bribes to various U.S. Army contracting officials, including Majors Eddie Pressley, John Cockerham, James Momon, and Chris Murray. All of those individuals, as well as at least 10 other coconspirators, have pleaded guilty or been convicted of crimes relating to this scheme. Charles admitted that he personally received over $228,000 in illicit gains as a result of his participation.
The sentencing is set for Nov. 26.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Army Criminal Investigation Command, the FBI, and the Special Inspector General for Iraq Reconstruction. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The case is being prosecuted by Trial Attorneys Peter N. Halpern and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former Apple Employee Indicted on Theft of Trade SecretsRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Xiaolang Zhang on Thursday, July 12, 2018, for theft of trade secrets, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigations, Special Agent in Charge John F. Bennett. Zhang was arraigned before U.S. Magistrate Judge Virginia K. DeMarchi today on charges of theft of trade secrets, in violation of 18 U.S.C. § 1832. Zang entered a plea of not guilty at the hearing.
According to the indictment, Zhang, 33, of San Jose, is alleged to have taken a confidential 25-page document containing detailed schematic drawings of a circuit board designed to be used in the critical infrastructure of a portion of an autonomous vehicle, knowing that the theft would injure the owner of the trade secrets, Apple, Inc.
Court documents filed in the case allege that on April 30, 2018, Zhang told Apple personnel that he was resigning from his job so that he could return to China to be closer to his mother who was ill. Apple immediately terminated Zhang’s access to its computer systems and Apple personnel began a forensic analysis of Zhang’s Apple-owned devices and network activity.
According to an affidavit filed in the case, Apple subsequently learned that Zhang went to work for X-MOTORS – a company focused on electric automobiles and autonomous vehicle technology with its headquarters in China. Apple security personnel confirmed that in the three days prior to April 30, 2018, Zhang’s network activity increased notably compared to the prior two years of his employment. The majority of his activity consisted of downloading information from the project databases, and the downloaded information contained trade secret intellectual property.
On July 7, 2018, FBI Agents learned that Zhang purchased a last-minute round-trip airline ticket with no co-travelers, departing San Jose, Calif., on July 7, 2018, traveling to Beijing, China with a final destination of Hangzhou, China aboard Hainan Airlines. Federal agents intercepted and arrested Zhang at the San Jose International Airport after he had passed through the security checkpoint of Terminal B.
Zhang made his initial appearance in federal court in San Jose on July 9, 2018, before Magistrate Judge DeMarchi. On July 10, 2018, Zhang was released, subject to GPS electronic monitoring, on a $300K bond. Zhang’s next appearance is scheduled for August 27, 2018, at 1:30 p.m., before the Honorable Edward J. Davila, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison, and a fine of $250,000. In addition, the court may order that Zhang serve a term of supervised release of up to 3 years following the prison term plus restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Amie Rooney and Matt Parrella are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Former Airport Contractor Pleads Guilty to Paying over $5 Million in Bribes and KickbacksRead the Press Release
William Pritula, 69, of Romulus pleaded guilty to paying co-defendant James Warner, a field inspector at the Wayne County Airport Authority (WCAA), over $5 million in bribes and kickbacks between May of 2010 and August of 2014, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Timothy Slater, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Thomas J. Ullom, Special Agent-in-Charge of the Chicago Field Office of the United States Department of Transportation, Office of Inspector General.
Pritula, who owned and operated Pritula and Sons, a company which sought and entered into contracts for pavement repair and replacement, as well as water main repair and fire hydrant installation and maintenance at the Detroit Metropolitan Airport, participated in a scheme in which Warner, with Pritula’s knowledge, would draft and submit fraudulently-inflated invoices for work which Pritula was contracted to perform at the airport. Upon payment by the WCAA to Pritula, Pritula would kickback roughly half of the profits to Warner—a total of over $5 million over four years. Thus far, law enforcement has seized $11.4 million in criminal proceeds, including $7.5 million from Pritula and $3.9 million from Warner.
The bribery charge to which Pritula has pleaded guilty carries a maximum sentence of 10 years’ imprisonment and a fine of up to $250,000.
United States Attorney Schneider said, “Today’s guilty plea to one of the largest bribes prosecuted to date in the Eastern District of Michigan, reinforces our continued commitment to protecting our citizens from the fraud, waste, and abuse that stems from bribe-paying contractors who are motivated by greed rather than a desire to improve our public infrastructure.”
“To those who seek advantage in obtaining government contracts by paying kickbacks or bribes, the message should be clear—the collective resources of the FBI and our law enforcement partners will expose your illegal activities and bring you to justice”, said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI.
“As evidenced by the guilty plea entered into today by William Pritula, investigating acts of corruption and pursing the individuals who commit them remains a top priority for the Department of Transportation (DOT) Office of Inspector General (OIG),” stated Thomas J. Ullom, Regional Special Agent-In-Charge, DOT-OIG. “Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts in preventing, detecting and prosecuting infrastructure fraud.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation. The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown, Paul Kuebler and R. Michael Bullotta.
Final Defendant Pleads Guilty to Defrauding California Workers’ Compensation SystemRead the Press Release
FRESNO, Calif. — John Thomas Terrence, 75, of Marina del Rey, pleaded guilty today to health care fraud involving a scheme to defraud the California workers’ compensation insurance system, U.S. Attorney McGregor W. Scott announced.
According to court documents, Terrence, a clinical psychologist saw patients in Bakersfield by “Skype,” generated reports for each patient that were virtually word-for-word identical, and then submitted identical bills to the insurance companies. Co-defendants Bhahar Gharib-Danesh, 41, of Woodland Hills, and Na Young Eoh, 44, of Bakersfield, were chiropractors working at the same company. They previously pleaded guilty to health care fraud charges in this case. The three defendants admitted to assisting in submitting bills to workers’ compensation insurers for medical-legal evaluations for which they were not legally permitted to bill.
Pain Free Diagnostics Inc. (dba Pain Free Management) pleaded guilty on July 9, 2018, to conspiracy to commit health care fraud and agreed to pay restitution to the defrauded worker’s compensation insurers in the amount of $1.2 million.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Insurance Fraud Division, and the Kern County District Attorney’s Office. Assistant U.S. Attorneys Mark J. McKeon and Michael Tierney are prosecuting the case.
Terrence is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 22, 2018; Gharib-Danesh is scheduled to be sentenced on October 1, 2018; and, Eoh is scheduled to be sentenced on September 4, 2018. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Eight Charged in Marion and Taylor County Drug ConspiraciesRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman today announced the arrests and indictments of eight defendants from Taylor and Marion Counties on conspiracy charges to sell methamphetamine and cocaine. Multiple law enforcement agencies including the Kentucky State Police (KSP), the Columbia, Kentucky, High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) served federal arrest warrants this morning in an on-going investigation into drug trafficking in south central Kentucky.
“These arrests and indictments are testament to a renewed sense of collaboration amongst those that protect our Commonwealth from narcotics trafficking” stated U.S. Attorney Russell Coleman “As long as some persist in flooding Kentucky communities with their poison, they will be met with federal, state, and local law enforcement standing shoulder to shoulder.”
Eight defendants were charged in three separate indictments on July 11, 2018, by a federal grand jury meeting in Bowling Green, Kentucky. Defendants Christopher Shipp, Matthew Smothers, and Patricia McNear are charged with conspiring to distribute methamphetamine in Marion County, Kentucky, between March and June of 2016. Mickey DeWayne Watson is charged in a four-count indictment with possession and conspiracy to distribute methamphetamine in Taylor County, Kentucky, during June and August of 2016. Further, William Downs, Rashad Dunn, Cali Gomez and Keyaira Grider are charged in a single count indictment with conspiracy to possess and intent to distribute cocaine base during April and May of 2016 in Taylor County, Kentucky.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by the KSP and the Columbia HIDTA Task Force with assistance from ATF, DEA and the Lebanon, Campbellsville, and Columbia Kentucky Police Departments.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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Courtney Hallstrom pleads not guilty to charge that she conducted straw purchase of firearmRead the Press Release
The United States Attorney for the District of Vermont announced that Courtney Hallstrom, 23, of Northfield, pleaded not guilty today in United States District Court in Burlington to a charge that she made materially false statements in connection with her purchase of a firearm. U.S. Magistrate Judge John M. Conroy ordered that Hallstrom be detained pending a July 18 bail hearing.
On July 12, 2018, a federal grand jury returned a one-count indictment accusing Hallstrom of making two false statements during her purchase of a .380 caliber semi-automatic pistol from a licensed firearms dealer on May 15, 2018. According to the indictment, Hallstrom falsely swore on the Firearms Transaction Record that she was the actual purchaser of the gun, that is, she was not buying the gun on another person’s behalf. Hallstrom allegedly also falsely claimed that she was not an unlawful user of narcotics. In fact, according to court records, it is alleged that Hallstrom traded the gun to a convicted felon in exchange for a gram of crack cocaine.
The United States Attorney emphasizes that the indictment is merely an accusation and that Hallstrom is presumed innocent unless and until she is proven guilty.
Captain with Bristol County Sheriff’s Office Convicted of Smuggling Profits to PortugalRead the Press Release
BOSTON – A Captain with the Bristol County Sheriff’s Office was convicted today by a federal jury in connection with helping Carlos Rafael, known as the Codfather in the fishing industry, and the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal.
Jamie Melo, 46, of North Dartmouth, Mass., was convicted of one count of conspiracy to commit offenses against the United States and one count of structuring the export of monetary instruments. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 24, 2018. The jury acquitted the defendant of one count of bulk cash smuggling.
During the trial, evidence showed that while at Logan International Airport Melo asked his friends and travel companions to carry envelopes of cash for Rafael on a flight to the Azores in Portugal. At the time, Melo was an Administrative Captain with the Bristol County Sheriff’s Office and was traveling to the Azores with Rafael for a charity event sponsored by the Bristol County Sheriff’s Office. Prior to the flight, Melo asked three of travel companions to follow him into the men’s bathroom at Logan Airport before going through the TSA Security Checkpoint and distributed four envelopes of cash, taking one for himself. Two days after arriving in Portugal, bank records demonstrate that Rafael deposited $76,000 in U.S. currency into his Portuguese bank account.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of structuring the export of monetary instruments provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Investigations, Philadelphia Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Neil Gallagher and Justin O’Connell of Lelling’s Economic Crimes Unit is prosecuting the case.
Cambria County Man Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Joseph L. Prave, III, 52, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 26, 2016, Prave distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 12, 2018, at 10:00 a.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Prave.
Buffalo Man Sentenced for Being A Felon in Possession of FirearmsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Hunter, 22, of Buffalo, NY, who was convicted of being a felon in possession of firearms, was sentenced to serve 27 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between March 3, 2017, and March 12, 2017, the defendant posted images to “Snap Chat” depicting himself in possession of a Hi-Point, model JH-45 semi-automatic firearm.
On April 1, 2017, New York State Parole Officers, assisted by members of the Buffalo Police Department, searched Hunter’s residence, recovered a Hi-Point, model CF380, .380 caliber semi-automatic firearm, and arrested the defendant.
The defendant was previously convicted in state court of Criminal Possession of a Weapon in February 2014 and is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; New York State Parole, under the direction of Acting Commissioner Anthony J. Annucci; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Bossier City felon sentenced to 36 months for illegally possessing a pistolRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Bossier City man previously convicted of a felony was sentenced to three years in prison for unlawfully possessing a .40-caliber pistol.
Leroy George, 31, of Bossier City, Louisiana, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of felon in possession of a firearm. He was also sentenced to three years of supervised release. According to the March 8, 2018 guilty plea, law enforcement agents executed a warrant on August 18, 2017 at a Bossier City apartment and located a Taurus, model PT 101, .40-caliber pistol under a pillow in George’s bedroom. George was previously convicted of burglary in 2007 and robbery in 2015.
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.
The ATF and U.S. Marshals Service Violent Offenders Task Force conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Baltimore Drug Dealer Sentenced to over 11 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Thomas Merrick, age 37, of Baltimore, Maryland, today to 138 months in prison, followed by four years of supervised release, for conspiracy to distribute heroin and fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA) – Baltimore District Office; and Interim Commissioner Gary Tuggle of the Baltimore Police Department.
According to Merrick’s plea agreement, during 2016 and 2017, investigators with the Drug Enforcement Administration (DEA) and the Baltimore Police Department (BPD) conducted an investigation of drug-trafficking in the Baltimore area and elsewhere. Merrick was identified as a member of a drug distribution conspiracy whose members purchased narcotics from suppliers in Mexico, arranged for the importation of the narcotics into the United States, and distributed the narcotics in the Baltimore area. Merrick was captured on wiretaps during which he and his accomplices were overheard by law enforcement planning and discussing drug transactions over cellular phones, including text messages and voice calls. Law enforcement also conducted physical surveillance of Merrick and his co-conspirators’ activities and made drug seizures from various locations used by the conspirators.
For example, during early 2017, investigators conducted a court-authorized wiretap on a cellular phone used by a member of the conspiracy. The co-conspirator acquired heroin and fentanyl from suppliers. On multiple occasions, investigators overheard the co-conspirator planning to receive narcotics. The co-conspirator would then make arrangements with his accomplices, including Merrick, to receive the narcotics and to distribute the narcotics to customers.
United States Attorney Robert K. Hur praised the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Andrew Shonk indicted on child pornography chargesRead the Press Release
Andrew A. Shonk, 36, of Massillon, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from March 2013 through February 20, 2018, Shonk knowingly received numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. The indictment also charges that between on or about May 19, 2018 and on or about June 19, 2018, Shonk possessed two USB storage devices that contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, the Canton Police Department and the Jackson Township Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Albuquerque Man Pleads Guilty to Possessing a Firearm in Furtherance of Fentanyl Trafficking CrimeRead the Press Release
ALBUQUERQUE – Jeremy Brown, 26, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by possessing a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Brown admitted possessing a loaded firearm on May 1, 2017, to facilitate his fentanyl trafficking activities.
The DEA arrested Brown in May 2017, and charged him with possession of fentanyl with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime on May 1, 2017. According to the complaint, DEA agents found marijuana, cocaine, methadone, $700, and several counterfeit oxycodone pills in Brown’s vehicle incident to his arrest following an investigation into Brown for suspected drug trafficking activity. The complaint alleged that the DEA previously had found that similar counterfeit oxycodone pills contained fentanyl or a combination of fentanyl and other substances.
Brown and co-defendant Crystal Campos, 33, also of Albuquerque, subsequently were charged in a five-count indictment on May 24, 2017, with drug trafficking and firearms offenses. The indictment charged Brown and Campos with conspiring to distribute controlled substances from March 9, 2017 through March 11, 2017. The indictment charged Campos with distributing a controlled substance on March 10, 2017 and Brown with distributing a Schedule II controlled substance on March 10, 2017. It also charged Brown with possession of a controlled substance with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime on May 1, 2017. The indictment alleged that the defendants committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Brown pled guilty to possessing a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Brown admitted that on May 1, 2017, the DEA arrested him as he was attempting to meet with an individual for the purpose of selling pills containing fentanyl. Brown admitted that when he was arrested, he consented to a search of his vehicle where DEA agents found metal canisters containing fentanyl pills and a loaded firearm. Brown acknowledged that he intended to distribute the fentanyl pills to others and that he used the firearm for protection during drug trafficking transactions.
At sentencing, Brown faces a statutory mandatory minimum penalty of five years and a maximum of life in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Peter J. Eicker as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
14 July 2018
Wanblee Man Sentenced for Participating in a High Speed Chase and Shooting IncidentRead the Press Release
United States Attorney Ron Parsons announced that a Wanblee, South Dakota, man convicted of Aiding and Abetting and Discharging a Firearm During Commission of a Crime of Violence was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Austin Lee Chipps, Sr., age 24, was sentenced on July 6, 2018, to 10 years in federal prison, to be followed by 4 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Chipps was charged on May 23, 2017. The charge related to Chipps driving at speeds over 100 miles per hour in order to elude Oglala Sioux Tribal police officers, who attempted to stop his vehicle. During the chase, other individuals in the vehicle fired at the officers with an AR 15 rifle, which they had previously stolen.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Chipps was immediately turned over to the custody of the U.S. Marshals Service.
Wanblee Man Sentenced for First Degree BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Wanblee, South Dakota, man convicted of First Degree Burglary was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Benjamin Quiver, age 46, was sentenced on July 6, 2018, to 2 years in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Quiver entering the residence of an individual in the nighttime near Wanblee on September 22, 2016, and stealing a handgun from a holster before leaving the residence.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Quiver was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Woman Sentenced for False StatementRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michelle Elbow Shield, age 20, was sentenced on July 6, 2018, to 3 months in federal prison, to be followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Elbow Shield was indicted for the charge by a federal grand jury in October 2017. The charge related to Elbow Shield making a false statement to a special agent with the Federal Bureau of Investigation about an investigation of an assault that took place in February 2017.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Elbow Shield was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Bank Fraud and Tax EvasionRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of federal Bank Fraud and Tax Evasion charges was sentenced on July 9, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Brent Bednarz, age 44, was sentenced to 9 years and 7 months in federal prison, to be followed by 5 years of supervised release, and ordered to pay $1,050,238.64 in restitution and a $100 special assessment to the Federal Crime Victims Fund on the Bank Fraud charge. Bednarz was also sentenced to 5 years in federal prison, to be followed by 3 years of supervised release, and ordered to pay $490,873.00 in restitution and a $100 special assessment to the Federal Crime Victims Fund on the Tax Evasion charge, with the prison time to run concurrent.
The conviction stems from Bednarz managing the former Rapid Motors used car dealership in Rapid City, and thereafter stealing over one million dollars from the business’s owner. At the same time, Bednarz failed to pay federal income on his earnings and on the additional money he stole.
This case was investigated by Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Supervisory Assistant U.S. Attorney Gregg S. Peterman and Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Lake Andes Man Sentenced to 37 Months in Federal Prison for Assault on ChildRead the Press Release
United States Attorney Ron Parsons, announced that a Lake Andes, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 9, 2018, by U.S. District Judge Karen E. Schreier.
Jerrad Dean Clairmont, age 20, was sentenced to 37 months in custody, followed by two years of supervised release after serving his prison sentence. He was also ordered to pay $100 to the Federal Crime Victims Fund. Clairmont served an additional three months in tribal custody.
According to court documents, on or about the 5th day of April 2017, at Wagner, in Charles Mix County, South Dakota, Clairmont unlawfully assaulted a child who had not attained the age of 18 years, and said assault resulted in life-threatening or permanent bodily injury.
During the assault, Clairmont shook the victim. The victim, approximately four months old at the time of the assault, suffered severe head, brain, and eye trauma, and he was placed on life support. Because of the victim’s age and small size, the victim was vulnerable during the assault and defendant knew of the victim’s physical attributes.
The investigation was conducted by the Yankton Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Clairmont, who was in custody during the pendency of the court proceedings, was immediately returned to the custody of the U.S. Marshal’s Service.
Eagle Butte Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on July 9, 2018, by U.S. District Judge Roberto A. Lange.
D’Boy Condon, age 40, was sentenced to 6 months in federal prison, followed by 4 months of home confinement, 2 years of supervised release, forfeiture of a Western Field, model M732, .30-06 caliber rifle, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Condon was indicted by a federal grand jury on October 17, 2017. He pled guilty on March 22, 2018.
The conviction stemmed from an incident that occurred on March 31, 2016, in Eagle Butte. On that day, Condon was found with the .30-06 caliber rifle wrapped inside a blanket on the couch where he was sitting. It was reported that the rifle was received by Condon as payment, and earlier in the evening, Condon was pointing the rifle at another person.
Condon was convicted of Assaulting a Federal Officer in 2001, making it illegal for him to possess firearms. Condon will forfeit ownership of the rifle to the United States.
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 the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Condon was immediately turned over to the custody of the U.S. Marshals Service.
13 July 2018
Woman Sentenced for Defrauding Donors of over $50,000 by Misrepresenting That She Had Terminal CancerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VEDOUTIE HOOBRAJ, a/k/a “Shivonie Deokaran,” was sentenced today to 24 months in prison for wire fraud in connection with her scheme to defraud donors by falsely claiming that she had been diagnosed with terminal cancer and needed money to pay for her treatments. HOOBRAJ pled guilty to an Information on January 12, 2018, before U.S. Magistrate Judge Lisa Margaret Smith. HOOBRAJ was sentenced by U.S District Judge Vincent L. Briccetti.
U.S. Attorney Geoffrey S. Berman said: “In a cynical exploitation of people’s generosity, Vedoutie Hoobraj created an elaborate fiction about having cancer to reap charitable contributions from well-meaning donors. Hoobraj even falsified medical records to conceal the fraud. Today, she has learned to the price of such brazen conduct.”
According to the Information, other documents filed in this case, and statements made during court proceedings:
From 2014 through 2016 in Westchester County, New York, and elsewhere, HOOBRAJ, then a resident of Dobbs Ferry, New York, solicited donations by falsely stating that she had been diagnosed with terminal stage leukemia, had been given only 18 months left to live, and needed money for medical care and other expenses. HOOBRAJ obtained donations through two GoFundMe fundraising websites, direct giving, and a fundraising event hosted by parents and students of Ardsley High School, the high school attended by both of her sons. HOOBRAJ publicized her fundraisers in press interviews, online postings, and emails, among other means. HOOBRAJ received in excess of $50,000 in donations from over 400 individuals in Ardsley, New York, and elsewhere based her misrepresentations.
When questioned by the Ardsley Police Department on or about January 20, 2016, HOOBRAJ falsely stated, among other things, that she had been diagnosed with terminal cancer by a specific oncologist who she claimed died in an earthquake in Nepal in April 2015. Subsequently, HOOBRAJ checked herself into Jacobi Medical Center in the Bronx, New York, (“Jacobi”) for an examination. HOOBRAJ then provided donors forged lab work from that examination, indicating that her hemoglobin, platelet counts, and red blood cell counts were supposedly consistent with a cancer patient’s. In fact, the actual medical record provided by Jacobi to HOOBRAJ stated, “Your labs turned out to show no abnormalities.”
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In addition to the prison, term, HOOBRAJ, 38, of Orlando, Florida, was sentenced to three years of supervised release and ordered to pay forfeiture in the amount of $51,938 and restitution to victims in the amount of $47,741.20.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the Ardsley Police Department. Mr. Berman also thanked the Westchester County District Attorney’s Office for its assistance.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
Wife of Former UAW Vice President Sentenced to Prison for Criminal Tax FraudRead the Press Release
The wife of former UAW Vice President General Holiefield was sentenced to 18 months in prison, followed by one year of supervised release and a fine of $25,000 today based on her conviction for felony tax fraud, announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Thomas Murray, Acting District Director, U.S. Department of Labor – Office of Labor-Management Standards, and Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Monica Morgan, 54, of Harrison Township, Michigan had previously pled guilty in February 2018 before United States District Judge Paul D. Borman. During her guilty plea, Morgan admitted to filing fraudulent tax returns whereby she failed to report hundreds of thousands of dollars in income for the years 2011 through 2014. In total, Morgan failed to pay $190,747 in taxes owed.
Morgan is the wife of former UAW Vice President General Holiefield, who died in March of 2015. From 2010 to 2014, Holiefield was the director of the UAW Chrysler Department and acted as the lead negotiator and the lead administrator for the collective bargaining agreements between the UAW and FCA.
According to court records, Morgan owned and operated the companies Monica Morgan Photography and Wilson’s Diversified Products based in Detroit, Michigan. Morgan’s companies received hundreds of thousands of dollars from the UAW-Chrysler National Training Center during the years when Holiefield was a UAW Vice President. Morgan’s companies also received significant payments from Holiefield’s charity, known as the Leave the Light On Foundation. Former FCA Vice President Alphons Iacobelli and former FCA Financial Analyst Jerome Durden each acknowledged using Wilson Diversified Products and the Leave the Light On Foundation to conceal payments made on behalf of FCA to UAW Vice President Holiefield. Both Durden and Iacobelli have previously pleaded guilty to their participation in the criminal conspiracy, along with former FCA executive Michael Brown and former senior UAW officials Virdell King and Keith Mickens. Durden, Iacobelli, Brown, King, and Mickens are all awaiting sentencing before Judge Borman.
Morgan’s various companies received hundreds of thousands of dollars in money funneled by FCA executives to Morgan and Holiefield, all in effort to keep UAW executives like Holiefield “fat, dumb, and happy.” At the hearing today, Morgan’s sentencing guidelines were enhanced based on the fact that the income she failed to report was the proceeds of criminal activity. In addition, her sentence was enhanced because Morgan used sophisticated means and shell companies in order to conceal her tax fraud.
The Court ordered Morgan to pay $190,747 in restitution to the U.S. Treasury Department.
Morgan is the first defendant to be sentenced in the ongoing criminal investigation into illegal payoffs involving UAW officials and FCA executives.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“Morgan was punished for cheating on her taxes and for helping to conceal hundreds of thousands of dollars in illegal payments from FCA executives to Morgan and her husband, General Holiefield, the former UAW Vice President in charge of the Chrysler Department,” stated United States Attorney Matthew Schneider. “The court’s sentence for Morgan vindicates the honest tax payers who properly report their income and pay their taxes, while sending a strong signal to those who would steal from everyone in the community through tax fraud.”
Manny Muriel, Special Agent in Charge of Detroit’s IRS Criminal Investigation stated, “Today’s sentencing of Monica Morgan demonstrates the consequences for enriching oneself with funds designated for the hard working members of the UAW and failing to report the diverted funds as income on your personal tax returns. IRS-CI and our federal partners will continue to aggressively pursue corrupt corporate and union officials who violate federal law and interfere with our nation’s tax laws."
“Monica Morgan filed a false tax return to conceal income she received from her companies. Those companies received hundreds of thousands of dollars from the UAW-Chrysler National Training Center during the years her late husband was a UAW Vice President. We will continue to work with our law enforcement partners to investigate crimes that threaten the integrity of the union collective bargaining process,” said James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“The U.S. Department of Labor’s Office of Labor-Management Standards places a high priority on combatting financial malfeasance and safeguarding financial integrity in labor unions,” said acting OLMS Detroit-Milwaukee District Director Thomas Murray. “Morgan’s conviction leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
“The sentencing of Monica Morgan should serve as a firm reminder that anyone who believes that they can enrich themselves through deception and fraud will be held accountable", said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. "In the process of receiving and concealing ill-gotten funds, Morgan committed tax fraud and squandered training opportunities for many deserving blue-collar auto workers".
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin Shaw, Charles J. Kalil II, and Adriana Dydell.
Wheeling man admits to wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Eugene Robert LeClear, of Wheeling, West Virginia, has admitted to wire fraud, United States Attorney Bill Powell announced.
LeClear, age 46, pled guilty to one count of “Wire Fraud.” LeClear admitted to defrauding others out of more than $100,000 from August 2016 to December 2017 in Ohio County.
LeClear faces up to 20 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 Randolph J. Bernard is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. Magistrate Judge James E. Seibert presided.United States Forfeits $765,850.27 in Video Sweepstakes Gaming Proceeds Seized from Southern Pines Convenience Store OperatorsRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced the forfeiture of $765,850.27 seized from Southern Pines residents Mukesh and Daxaban Patel and their company, Shree Zapesvari, Inc., doing business as Jay’s Food Mart 1 and 2. Under the terms of a Settlement Agreement filed on July 13, 2018 in the United States District Court in the Middle District of North Carolina, $100,000 of the total of $865,850.27 seized from the Patels will be returned to them, with the remainder forfeited.
In a Complaint filed on December 23, 2016, the United States alleged that the cash seized from the Patels’ convenience stores was the proceeds of illegal gambling in violation of state and federal law. As alleged in the Complaint, an undercover investigation revealed that the Patels operated several illegal electronic gaming machines and games of chance at both Jay’s Food Mart 1 and 2, machines owned by a third-party, with whom they split the proceeds. The machines, which contain a display similar to slot machines, contained gaming software provided by a gaming software provider. Patrons who won received payoffs on site.
“A segment of the gaming industry continues to foist illegal games of chance on the people of North Carolina,” says United States Attorney Robert J. Higdon, Jr., “particularly on those least able to afford this addictive and destructive habit – this in spite of clear directives from both the North Carolina General Assembly and Supreme Court of North Carolina barring such games. This case represents one way in which we will seek to limit the reach of this lucrative yet pernicious industry.”
Homeland Security Investigations Resident Agent in Charge Timothy P. Stone says that “as these segments of the gaming industry continue to pedal games of chance onto the public of North Carolina, an environment ripe for illegal behavior is created, one that preys on the livelihood of many while costing others their lives.” Stone says that “the success of the investigation would not have been possible without the hard work and dedication of North Carolina Alcohol Law Enforcement, Moore County Sheriff’s Office, the Internal Revenue Service Criminal Investigations Division, and the Office of the United States Attorney, all critical in helping bring the individuals and businesses of this industry to justice.”
Assistant United States Attorney Steve West represented the government in this matter.
Uncle and nephew indicted in metro Atlanta crime spree involving multiple armed robberies of banks and businessesRead the Press Release
ATLANTA – William Anthony Everett and Marcus Lamont Ward, Jr. were charged in a superseding indictment by a federal grand jury for conspiracy to commit and commission of armed robberies of two banks, and several robberies of Metro PCS stores, Subway sandwich shops, and a Dollar General store. The men were also charged with several counts of possessing a firearm during these armed robberies. Everett was also charged with possessing a firearm while a convicted felon.
“Federal, state, and local law enforcement officers collaborated extensively to solve the violent crime spree for which the defendants are charged,” said U.S. Attorney Byung J. “BJay” Pak. “These defendants are alleged to have committed numerous armed robberies, together and separately, in several metro Atlanta cities. Their crimes involved harrowing incidents in which bank tellers and cashiers were terrorized, while they were forced to relinquish cash at gunpoint.”
“For about a two-month period, these two defendants are alleged to have terrorized innocent victims who just happened to be in their path,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “The reign of terror ended, and now the traumatized victims can take solace that these two defendants will face justice in court, thanks to the coordinated effort of several law enforcement agencies.”
“This indictment demonstrates the outstanding work of law enforcement at all levels to investigate violent crimes in Georgia,” said GBI Director Vernon Keenan. “The GBI remains committed to working with our local and federal partners to aggressively pursue and dismantle this type of criminal element in our state.”
“I commend the U.S. Attorney’s Office for the collaborative partnership that has developed resulting in local, county, state, and federal authorities working together to ensure our communities are protected from violent offenders,” said LaGrange Police Chief Louis Dekmar.
“This case is an excellent example of law enforcement agencies working together quickly and effectively, leading to the arrests and subsequent indictment of these criminals,” said Hogansville Police Chief Brian Harr.
According to U.S. Attorney Pak, the superseding indictment, and other information presented in court: On October 7, 2016, LaGrange Police Department (LPD) officers arrested Everett and Ward in a dark gray jeep following a traffic stop executed by the Hogansville Police Department (HPD). The defendants’ arrests occurred shortly after the armed robbery of a Community Bank and Trust (CB&T) branch in LaGrange. Inside the jeep, owned and driven by Ward, officers recovered a black and silver semi-automatic pistol, money from the LaGrange bank, and clothing - a shirt, baseball cap, and black sunglasses - that matched items worn by the robber during the LaGrange robbery, as captured by the bank’s surveillance cameras. A bank manager at the LaGrange CB&T branch identified Everett as the man who committed the LaGrange and Hogansville armed robberies. A witness described seeing two suspicious men behind the Hogansville CB&T branch emerge from a dark Jeep just before that bank robbery.
Following the defendants’ arrests, the FBI consulted with Georgia Bureau of Investigation agents and local law enforcement officers about a rash of armed commercial robberies involving Metro PCS stores, Subway sandwich shops, and a Dollar General store. During all but one of the robberies, video surveillance footage captured a man who appeared to be Everett pointing either a silver and black, or black, handgun at the cashiers while robbing the establishments. Multiple witnesses described the man resembling Everett as escaping in a dark jeep that matched the general description of Ward’s jeep, in which the men were arrested on October 7, 2016. Another witness from one of the Metro PCS stores knew Everett and Ward and reported their involvement in the Metro PCS store robbery. The cashiers at the Dollar General store also identified Everett as the armed robber of their business.
The superseding indictment alleges that Everett and Ward conspired to commit the following armed robberies, including some in which only Everett is charged in the substantive counts of the indictment:
●September 29, 2016, armed robbery of a Metro PCS store located in southeast Atlanta, Georgia;
●September 22, 2016, armed robbery of a Metro PCS store located in Decatur, Georgia, including the brandishing of a firearm during this crime of violence;
●September 12, 2016, armed robbery of a Metro PCS store located in Fairburn, Georgia, including the brandishing of a firearm during this crime of violence;
●September 7, 2016, armed robbery of a Subway sandwich shop located in Forest Park, Georgia, including the brandishing of a firearm during this crime of violence;
●August 29, 2016, armed robbery of a Metro PCS store located in College Park, Georgia, including the brandishing of a firearm during this crime of violence;
●August 23, 2016, armed robbery of a Metro PCS store located in northwest Atlanta, Georgia; and
●August 14, 2016, armed robbery of a Dollar General store located in Kennesaw, Georgia.
William Anthony Everett, 57, and Marcus Lamont Ward, Jr., 31, both of Atlanta, Ga., were charged in a superseding indictment on July 10, 2018 for conspiracy to commit and commission of armed robberies of two banks, and several store robberies, including several counts of possessing a firearm during and in furtherance of these armed robberies. Members of the public are reminded that the superseding indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation, Georgia Bureau of Investigation, Atlanta Police Department, DeKalb Police Department, Fairburn Police Department, Forest Park Police Department, Fulton County Police Department, Hapeville Police Department, Hogansville Police Department, LaGrange Police Department, Kennesaw Police Department, and Newnan Police Department.
Assistant U.S. Attorney Richard S. Moultrie, Jr., Chief of the Violent Crime and National Security Section, and Assistant U.S. Attorney Dashene A. Cooper are prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Settles Dispute with Transportation Company over Contracted Afghanistan Security ServicesRead the Press Release
U.S. based multi-modal transportation and logistics company Liberty Global Logistics LLC (LGL) has paid the United States TWO HUNDRED NINETY-FOUR THOUSAND EIGHT HUNDRED DOLLARS ($294,800) to settle claims that it violated its contract with United States Transportation Command (USTRANSCOM) by falsely billing the United States for convoy security services that were never actually provided, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
USTRANSCOM contracted with LGL for the transportation of U.S. military cargo from the United States to various military outposts in Afghanistan. The contract required LGL to comply with Afghanistan law, which mandates the purchase of extra security services for cargo convoys moving along certain trucking routes within Afghanistan. Those services were reported to have been provided by the Afghan Public Protection Force (APPF) – an arm of the Afghanistan government – and a portion of the security costs were reimbursed to LGL by the United States under the contract.
USTRANSCOM later discovered that on 20 occasions in 2016 and 13 occasions in 2017, certain LGL shipments moved without APPF security services, in violation of the contract.
Under the terms of the settlement agreement negotiated by the parties, LGL agreed to withdraw its outstanding claims for additional reimbursement associated with APPF costs for the movements at issue in 2016, and further agreed not to seek any additional reimbursement from USTRANSCOM for the movements at issue in 2017.
As a result of the investigation, LGL has already implemented a strengthened internal compliance program to monitor, identify and prevent inaccurate billings. The company agreed to maintain that strengthened program as part of the settlement agreement.
This matter was investigated by USTRANSCOM, the Defense Criminal Investigative Service, United States Army Criminal Investigation Command, the Naval Criminal Investigative Service, and the Office of the Special Inspector General for Afghanistan Reconstruction and was handled by Assistant United States Attorney Nathan D. Stump.
LGL was cooperative in the investigation.
U.S. National Pleads Guilty to the Attempted Murder of U.S. Consulate Official in MexicoRead the Press Release
A U.S. national and former medical student pleaded guilty today to shooting a U.S. diplomat stationed at the U.S. Consulate in Guadalajara, Mexico.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office and Director Christian J. Schurman of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
Zia Zafar, 33, of Chino Hills, California, pleaded guilty to one count of attempted murder of an internationally protected person and one count of discharging a firearm during a crime of violence. Zafar entered his guilty plea before U.S District Judge Anthony J. Trenga of the Eastern District of Virginia. Judge Trenga scheduled Zafar’s sentencing hearing for November, 7, 2018.
According to admissions made in connection with his plea, on Jan. 6, 2017, Zafar armed himself with a firearm, donned a wig and sunglasses to disguise his appearance, and waited in a parking garage for a Vice Consul, who worked at the U.S Consulate in Guadalajara. Although Zafar initially was following the Vice Consul as he walked towards his vehicle, Zafar noticed a security guard nearby, and instead moved to the vehicle exit ramp, where he waited for the Vice Consul to exit. As the Vice Consul approached the exit in his car, Zafar fired a single shot into the vehicle, striking the Vice Consul in his chest and leaving him in serious condition. Zafar admitted that he targeted the Vice Consul because he knew from earlier surveillance that the victim worked at the U.S. Consulate.
“Zia Zafar surveilled and targeted a U.S. official serving in Mexico, lying in wait before shooting him in the chest in a heinous act of premeditated violence,” said Acting Assistant Attorney General Cronan. “Today’s guilty plea sends a clear message that the Department of Justice will aggressively prosecute those who seek to harm U.S. officials serving overseas. The Department of Justice will continue work with our domestic and international partners to ensure that anyone who targets U.S. officials abroad will be brought to justice.”
“The Vice Consul was targeted and shot because he represented the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “No one should doubt the resolve of law enforcement to steadfastly investigate and apprehend those who attack us. I wish to express our sincere thanks to the many United States and Mexican law enforcement agencies involved in the apprehension and return of this defendant to the United States to face justice.”
“Crime doesn’t stop at international borders, as such, the FBI works closely with international partners and security services in order to conduct complex investigations and acquire evidence from abroad for criminal prosecutions in the United States,” said FBI Special Agent in Charge Lasky of the Miami Field Office. “I want to thank the Mexican government for their full support and cooperation throughout this investigation.”
"This guilty plea makes a strong statement to those who would attempt to commit such a heinous crime. The Diplomatic Security Service is dedicated to ensuring those who commit these crimes are brought to justice,” said DSS Director Schurman. “Our global presence allows DSS to work with both U.S. and foreign law enforcement to stop criminals who would attempt to murder a U.S. citizen."
FBI and DSS investigated the case in close cooperation with Mexican authorities and with valuable assistance from the Justice Department’s Office of International Affairs, the Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Ronald L. Walutes Jr. of the Eastern District of Virginia are prosecuting the case.
The Department of Justice gratefully acknowledges the government of Mexico, to include the Secretaría de Relaciones Exteriores, Procuraduria General de la Republica, Fiscalia del Estado de Jalisco and Instituto Nacional de Migracion for their extraordinary efforts, support and professionalism in responding to this incident.
U.S. Attorney’s Office Settles Lawsuit Against South Dakota LandlordRead the Press Release
RAPID CITY, SD – United States Attorney Ron Parsons announced that the United States has reached a settlement agreement with a Rapid City landlord to resolve a lawsuit alleging discrimination on the basis of sex and familial status, in violation of the Fair Housing Act.
The lawsuit arose from a complaint filed with the U.S. Department of Housing and Urban Development (“HUD”). After the parties failed to resolve allegations administratively, the matter was brought to federal court, where the United States alleged that Amie Kelly violated the Fair Housing Act when she discriminated against Jennifer Seiler on the basis of sex and familial status. Specifically, the United States alleged that on July 20, 2015, Ms. Kelly sent Ms. Seiler a copy of a lease agreement that contained the following provision: “No minor under the age of 18 is to be allowed to be on or about the premises without adult supervision.” The United States further alleged that on July 23, 2015, after a series of correspondence with Ms. Seiler, Ms. Kelly denied her the opportunity to rent a housing unit. Ms. Kelly communicated the denial by email, representing that she had decided to rent to a bachelor, instead: “In the past, I have always rented to bachelors, that has worked best.” Lastly, the United States alleged that on or around July 28, 2015, five days after Ms. Kelly represented to Ms. Seiler that a particular housing unit was unavailable, Ms. Kelly made the unit available to a bachelor.
Under the settlement, which does not constitute an admission of liability, Ms. Kelly will pay Ms. Seiler $3,000 in monetary damages. As part of the agreement, Ms. Kelly will also implement nondiscrimination policies and procedures, partake in fair housing training, refrain from engaging in any prohibited conduct in the future, and make periodic reports to the department regarding compliance.
The federal Fair Housing Act prohibits discrimination in housing on the basis of disability, race, color, religion, national origin, sex, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777. Individuals residing within South Dakota may also contact Alison Ramsdell, Civil Rights Coordinator for the U.S. Attorney’s Office for the District of South Dakota, at (605) 330-4400.
U.S Attorney Bill Powell announces Operation Synthetic Opioid surge (S.O.S.) in Berkeley CountyRead the Press Release
MARTINSBURG – United States Attorney Bill Powell is applauding Attorney General Jeff Sessions and the creation of Operation Synthetic Opioid Surge (S.O.S.), which, in the Northern District of West Virginia, will focus on a surge in prosecutions of those distributing fentanyl and other synthetic opioids in Berkeley County. Berkeley County saw the highest rate of overdose deaths in the district in 2017.
Attorney General Jeff Sessions announced S.O.S. this week, a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
As part of Operation S.O.S., the Department will launch an enforcement surge in ten districts with some of the highest drug overdose death rates. Each participating United States Attorney’s Office (USAO) will choose a specific county and prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids, regardless of drug quantity. The surge will involve a coordinated DEA Special Operations Division operation to insure that leads from street-level cases are used to identify larger scale distributors. Operation S.O.S. was inspired by a promising initiative of the United States Attorney’s Office in the Middle District of Florida involving Manatee County, Florida.
"We at the Department of Justice are going to dismantle these deadly fentanyl distribution networks. Simply put, we will be tireless until we reduce the number of overdose deaths in this country. We are going to focus on some of the worst counties for opioid overdose deaths in the United States, working all cases until we have disrupted the supply of these deadly drugs," Attorney General Sessions said. "In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal--that's not even enough to cover up Lincoln's face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. Operation S.O.S.—and the new prosecutors who will help carry it out—will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs."
“One overdose death is too many. Our district has had way too many overdose deaths. I thank Attorney General Sessions for providing additional resources to combat the opioid overdose crisis. The Eastern Panhandle of our district has been particularly hard hit by opioid deaths, and we will do everything we can to prosecute all those who don’t give a second thought to distributing incredibly potent drugs like fentanyl to our citizens. We will have zero tolerance for those engaging in such conduct,” said Powell.
In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.
The ten participating districts are: • Eastern District of California
• Eastern District of Kentucky
• District of Maine
• District of New Hampshire
• Northern District of Ohio
• Southern District of Ohio
• Western District of Pennsylvania
• Eastern District of Tennessee
• Northern District of West Virginia
• Southern District of West VirginiaBerkeley County saw 54 overdose deaths in 2017, a drop from 88 in 2016, according to the WV Health Statistics Center.
Two Men Plead Guilty to Federal Charges in Attack on ATM EmployeeRead the Press Release
WASHINGTON – Richard Reid, 43, of Washington, D.C. and Dwonne Washington, 43, of Silver Spring, Md., have pled guilty to federal charges for robbing and beating a man who was servicing ATM machines last fall in Northwest Washington, announced U.S. Attorney Jessie K. Liu, Matthew J. DeSarno, Special Agent in Charge of the Criminal Division of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Both men pled guilty to a charge of interference with interstate commerce by robbery as well as a related federal firearms offense. Reid entered his guilty plea on July 11, 2018, in the U.S District Court for the District of Columbia, and Washington entered his plea on the following day. Both men face mandatory minimum sentences of seven years in prison for brandishing a firearm during a crime of violence and additional time for the robbery offense. Under sentencing guidelines, Reid faces a likely total range of 125 to 135 months in prison and Washington faces an estimated 117 to 125 months. The Honorable Rudolph Contreras scheduled sentencing for Oct. 2, 2018. Both men remain held pending sentencing.
According to the government’s evidence, on Nov. 15, 2017, the victim was refilling ATM machines owned by his company throughout the Washington, D.C. area. The attack took place after the victim had refilled an ATM machine located inside a market in the 300 block of P Street NW. At 1:45 p.m., as the victim was walking to his car with a backpack filled with cash, he was attacked from behind by two assailants.
The first assailant, Washington, pistol-whipped the victim with a firearm while the second assailant, Reid, beat the victim with his fists. Both Washington and Reid wrestled the backpack off the victim’s back and fled the area in a vehicle. During the attack, which was captured on surveillance video, the victim’s nose was broken.
An investigation by the Metropolitan Police Department revealed that the getaway vehicle used by the assailants was registered to Washington. Witnesses then identified Washington in the surveillance video and he was arrested the day after the crime. He has been held ever since. Subsequent investigation by MPD and the FBI’s Washington Field Office identified a phone dropped on scene as belonging to Reid, and a witness identified him in the surveillance video. He was arrested on Feb. 23, 2018 and has been held since that time.
In announcing the pleas, U.S. Attorney Jessie Liu, Special Agent in Charge DeSarno, and Chief Newsham commended the work of MPD’s Fifth District detectives and the FBI’s Washington Field Office. They also expressed appreciation for the work of Assistant U.S. Attorneys Sara Vanore and Sumit Mallick, who successfully prosecuted the defendants.
Tulare County Men Indicted for Series of Armed Robberies in Tulare and Kern Counties and in NebraskaRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment Thursday against Javier Beltran, 34, of Strathmore, and Ulises Medina, 24, of Earlimart, charging them with conspiracy to commit Hobbs Act robbery, interference with commerce by robbery, and brandishing a firearm during and in relation to a crime of violence, U.S. Attorney McGregor W. Scott announced.
According to court documents, Beltran and Medina were members of a conspiracy that committed a series of armed robberies of gas stations, convenience stores, and liquor stores from May 19, 2016, until July 22, 2017.
Beltran, Medina, and their co-conspirators used a similar modus operandi for each robbery. First, Beltran, Medina, and other conspirators would steal a Chevrolet or GMC sports utility vehicle or truck manufactured between 2000 and 2006. Beltran, Medina, and other conspirators would push a hole in the lock on the door of the vehicle, open the steering shaft, and start the vehicle without a key. Next, Beltran, Medina, and other conspirators would drive to a gas station, convenience store, or liquor store in the stolen vehicle. They would park the vehicle outside, and Beltran, Medina, and other conspirators, wearing masks and gloves, would enter the store carrying guns. They would order the store clerk to give them money, then they would steal money from the cash register or safe in the store. Finally, Beltran, Medina, and other conspirators would flee in the stolen vehicle, drive it a short distance, and switch to another getaway vehicle, often leaving the stolen vehicle running.
The indictment alleges that Beltran, Medina, and their conspirators committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. The next month, Beltran, Medina, and other conspirators travelled to Nebraska, where they engaged in similar conduct. Beltran, Medina, and their conspirators then returned to California, where they committed three more armed robberies.
According to the indictment, in furtherance of the conspiracy, Beltran, Medina and other conspirators committed robberies that included:
May 19, 2016, Applegate’s Market, Porterville
June 29, 2016, Applegate’s Market, Porterville
October 2, 2016, EZ Shop-N-Go, Strathmore
November 4, 2016, EZ Shop-N-Go, Strathmore
December 20, 2016, SA Market, Earlimart
December 30, 2016, Payless Liquor, Bakersfield
January 18, 2017, Joe’s Westside, Porterville
February 22, 2017, Robbery of Tienda Mexicana Guerrero, Fremont, Nebraska
March 13, 2017, Amigo’s Market, Earlimart
May 12, 2017, Sunshine Market, Earlimart
July 22, 2017, Woodville Liquor, Porterville
This case is the product of an investigation by the Federal Bureau of Investigation, Tulare County Sheriff’s Office, Porterville Police Department, Lindsay Police Department, Bakersfield Police Department, Fremont (Nebraska) Police Department, and Dodge County (Nebraska) Sheriff’s Office. Assistant U.S. Attorneys Ross Pearson and Kathleen Servatius are prosecuting the case.
If convicted of the conspiracy to commit a Hobbs Act robbery, the defendants face a mandatory statutory penalty of 20 years in prison, a maximum penalty of life in prison and a $250,000 fine. Beltran was charged with two counts and Medina was charged with one count of interference with commerce by robbery, which carries a maximum of 20 years in prison and a $250,000 fine if convicted. Beltran was charged with two counts and Medina was charged with one count of brandishing a firearm during and in relation to a crime of violence, which carries a mandatory statutory penalty of at least seven consecutive years up to a maximum statutory penalty of life in prison, and a $250,000 fine if convicted. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Tucson Immigration Attorney Indicted on Federal Mail Fraud and Forgery ChargesRead the Press Release
ALBUQUERQUE, N.M. – Marivel Cantu-Madril, 40, of Oro Valley, Ariz., was arraigned today in federal court in Tucson, Ariz., on an indictment charging her with mail fraud and forging judicial signatures. Cantu-Madril entered a not guilty plea during the arraignment hearing and was released on conditions of release pending trial, which has not been scheduled.
Cantu-Madril is an attorney admitted to the State Bar of Arizona who practiced immigration and criminal defense law in Tucson, Ariz., for several years. She currently is suspended from the practice of law.
The three-count indictment, which was filed on July 3, 2018, charges Cantu-Madril with one count of mail fraud and two counts of forgery of judicial signature, and with aiding and abetting the three offenses.
Count One of the indictment charges Cantu-Madril with mailing, or causing to be mailed, an “I-765, Application for Employment Authorization,” in which she allegedly included false information about a non-citizen client seeking government approval to work in the United States to the U.S. Citizenship and Immigration Services. As alleged in the indictment, Cantu-Madril intentionally entered false information into the application to improve the prospect of approval by immigration authorities by misrepresenting the date on which her client last entered the United States, and by falsely asserting that her client was legally residing in the United States.
Counts Two and Three of the indictment allege that Cantu-Madril forged the signature of a clerk of court for the U.S. Court of Appeals for the Ninth Circuit. As alleged in the indictment, Cantu-Madril falsely authenticated two payment receipts from the Ninth Circuit by forging the clerk’s signature on the documents.
If convicted, Cantu-Madril faces maximum statutory penalty of twenty years of imprisonment on mail fraud offense and five years of imprisonment on the forgery offenses.
Charges in indictments are merely accusations. Defendants are presumed innocent unless found guilty in a court of law.
The investigation of the case, which is ongoing, is being handled by the Tucson field office of ICE Homeland Security Investigations (HSI). Assistant U.S. Attorney Sean J. Sullivan of the U.S. Attorney’s Office for the District of New Mexico is prosecuting the case. Individuals who may have information that is pertinent to the investigation are asked to contact HSI at 866-347-2423.
Cantu Madril IndictmentTickfaw Man Sentenced for Possession of Child PornographyRead the Press Release
VERNON SWEENEY, JR. (“SWEENEY”), age 52, of Tickfaw, Louisiana, was sentenced today for possession of child pornography, announced United States Attorney Duane A. Evans.
On October 12, 2017, law enforcement officers with the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, arrested SWEENEY during the execution of a state search warrant at his Tickfaw home after finding that SWEENEY was in possession of several items, including a laptop computer, thumb drives and cellular phones that contained images depicting the sexual victimization of prepubescent children.
U.S. District Judge Eldon E. Fallon sentenced SWEENEY to ten years incarceration to be followed by supervised release for life. SWEENEY will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
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."
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Three Suspected Cocaine Traffickers ArrestedRead the Press Release
Montgomery, Alabama– Three (3) suspected cocaine traffickers made their initial appearance in federal court yesterday and are facing charges of conspiracy to distribute a controlled substance, announced United States Attorney Louis V. Franklin, Sr. Jose Ocampo-Gonzalez, 49, Kristopher Kashif Baker, 32, and Robert Reynolds, Jr., all from Tuskegee, were arrested this week and are currently in United States Marshals custody pending a detention hearing.
The arrests follow a federal investigation that has led to the seizure of 9 kilograms of cocaine, 23 kilograms of marijuana, 100 grams of crack cocaine, and 221 grams of hydrocodone. In addition, over $260,000 and at least 13 firearms were seized.
This investigation is part of the Organized Crime Drug Enforcement Task Force, a program bringing together all levels of law enforcement and the communities they serve to reduce the distribution of illegal drugs and make our neighborhoods safer for everyone.
Each defendant is charged with one count of conspiracy to distribute a controlled substance, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. There is no parole in the federal system.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The investigating agencies include: the Drug Enforcement Administration (DEA), the Alabama Law Enforcement Agency (ALEA), the Montgomery Police Department, the Prattville Police Department, the Elmore County Sheriff’s Office, the Central Alabama Drug Task Force, the Autauga County Sheriff’s Office, the Millbrook Police Department, the Eufaula Police Department and the Alabama Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Curtis Ivy, Jr., and R. Randolph “Rand” Neeley.
Three Gypsy Joker Outlaw Motorcycle Club Members & Associate Indicted for Violent Murder and Kidnapping in Aid of RacketeeringRead the Press Release
WASHINGTON - A federal grand jury in the District of Oregon has returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder. The indictment was returned on June 28, and unsealed today.
The indictment was announced by Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Billy J. Williams for the District of Oregon; Special Agent in Charge Darek Pleasants of the Bureau of Alcohol, Tobacco, Firearms, and Explosive’s (ATF) Seattle Field Division; and Chief of Police Danielle Outlaw of the Portland Police Bureau (PPB).
“The defendants allegedly violently kidnapped and murdered Robert Huggins to maintain and advance their positions in the Gypsy Joker Outlaw Motorcycle gang,” said Principal Deputy Assistant Attorney General Cronan. “This indictment is an important step toward dismantling this violent gang, and should send a clear message that the Department of Justice will bring to justice those who commit such heinous crimes on our streets.”
“Pursuing organized criminal organizations and individual members that commit violent crimes and threaten public safety is a top priority for the Department of Justice and the U.S. Attorney’s Office in the District of Oregon,” said U.S. Attorney Williams. “We will use every law enforcement tool available to hold members of criminal organizations accountable for their violent and lawless criminal gang activity.”
“ATF remains committed to combatting violent crime organizations that endanger our communities,” said ATF Special Agent in Charge Pleasants. “ATF will always stand shoulder to shoulder with our law enforcement partners to protect the public.”
“The Portland Police Bureau is proud to be a part of this collaborative effort that resulted in the indictment of people engaged in violent activity,” said Chief Outlaw. “Violent crime deeply affects our community and by working in partnership, we can use effective strategies to locate those individuals who are responsible for violence and hold them accountable.”
Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland are charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death. According to the indictment, the defendants are alleged from June 30 to July 1, 2015 to have kidnapped and murdered Robert Huggins, a resident of southeast Portland, Oregon.
According to the indictment, GJOMC oversees several “support clubs” in Oregon and Washington, including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. The indictment alleges that the three men engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
Dencklau, Fisher and Pribbernow made their initial appearances before a U.S. Magistrate Judge in Portland on July 9, 10, and 13, 2018, respectively.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the PPB and ATF, with assistance from the Clark County, Washington Sheriff’s Office, the Oregon State Police, and the Oregon and Washington State Crime Labs. Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Leah K. Bolstad of the District of Oregon are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Three Gypsy Joker Outlaw Motocycle Club Members & Associate Indicted for Violent Murder and Kidnapping in Aid of RacketeeringRead the Press Release
A federal grand jury in the District of Oregon has returned a four-count indictment charging three members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder. The indictment was returned on June 28, and unsealed today.
The indictment was announced by Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Billy J. Williams for the District of Oregon; Special Agent in Charge Darek Pleasants of the Bureau of Alcohol, Tobacco, Firearms, and Explosive’s (ATF) Seattle Field Division; and Chief of Police Danielle Outlaw of the Portland Police Bureau (PPB).
“The defendants allegedly violently kidnapped and murdered Robert Huggins to maintain and advance their positions in the Gypsy Joker Outlaw Motorcycle gang,” said Principal Deputy Assistant Attorney General Cronan. “This indictment is an important step toward dismantling this violent gang, and should send a clear message that the Department of Justice will bring to justice those who commit such heinous crimes on our streets.”
“Pursuing organized criminal organizations and individual members that commit violent crimes and threaten public safety is a top priority for the Department of Justice and the U.S. Attorney’s Office in the District of Oregon,” said U.S. Attorney Williams. “We will use every law enforcement tool available to hold members of criminal organizations accountable for their violent and lawless criminal gang activity.”
“ATF remains committed to combatting violent crime organizations that endanger our communities,” said ATF Special Agent Charge Pleasants. “ATF will always stand shoulder to shoulder with our law enforcement partners to protect the public.”
“The Portland Police Bureau is proud to be a part of this collaborative effort that resulted in the indictment of people engaged in violent activity,” said Chief Outlaw. “Violent crime deeply affects our community and by working in partnership, we can use effective strategies to locate those individuals who are responsible for violence and hold them accountable.”
Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 37, of Portland are charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death. According to the indictment, the defendants are alleged from June 30 to July 1, 2015 to have kidnapped and murdered Robert Huggins, a resident of southeast Portland, Oregon.
According to the indictment, GJOMC oversees several “support clubs” in Oregon and Washington, including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. The indictment alleges that the three men engaged in the violent actions leading to Huggins’ death for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
Dencklau, Fisher and Pribbernow made their initial appearances before a U.S. Magistrate Judge in Portland on July 9, 10, and 13, 2018, respectively.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the PPB and ATF, with assistance from the Clark County, Washington Sheriff’s Office, the Oregon State Police, and the Oregon and Washington State Crime Labs. Trial Attorney Rebecca A. Staton of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Leah K. Bolstad of the District of Oregon are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The Woodlands Woman Sent to Prison for Defrauding EmployerRead the Press Release
HOUSTON – A 53-year-old resident of The Woodlands has been sentenced following her conviction of wire fraud, announced U.S. Attorney Ryan K. Patrick. Kavita Nehendra Duvvuru pleaded guilty Oct. 11, 2017.
Today, U.S. District Judge Sim Lake handed Duvvuru a 24-month sentence. At the hearing, a representative of victim company Vinmar International Ltd. told the court the company was like a family and that Duvvuru’s crime a shock. In handing down the sentence, Judge Lake noted the crime deserved punishment by a prison sentence. She will also be required to serve a three-year-term of supervised release following completion of her sentence. She was further ordered to make restitution of $2,537,885.66. The court also entered a forfeiture order imposing a money judgment of $2.5 million.
Duvvuru was a former employee of Vinmar International Ltd. At the time of her plea, she admitted that while employed there, she made unauthorized charges and cash advances for personal expenses on credit cards which were only to be used for Vinmar business expenses. Duvvuru further admitted she altered the credit card statement and provided false information to conceal her fraud from the company.
Duvvuru began employment with the Houston petrochemical distribution and marketing company Vinmar in 2004. Vinmar paid the balances on several credit cards issued in the name of Vinmar’s president and another officer of Vinmar on a monthly basis. These credit cards included an American Express Plum card and two MasterCards and were used to charge Vinmar’s business expenses. Duvvuru had credit cards issued in her name on those accounts as well, but was only authorized to charge Vinmar business expenses.
Beginning in or about 2010, Duvvuru began making unauthorized charges for personal expenses on the American Express Plum credit card. Eventually, these unauthorized personal charges reached between $10,000 and $20,000 per month. She also obtained unauthorized cash advances from the MasterCard credit cards, which she used for personal expenses including payment of her property taxes and college tuition payments for her children.
In late 2016, Duvvuru made $22,359.29 in unauthorized personal charges on the American Express Plum card. She later accessed the online statement, downloaded a copy and used a software program to alter it to conceal her unauthorized personal charges. She then added a falsified charge for the same amount and attributed it to a Vinmar vendor. She also created false entries to account for the charge it to make it appear to be a legitimate Vinmar business expense. She then submitted the falsified entries to Vinmar’s accounting department.
Duvvuru was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Tangipahoa Parish Men Charged with Drug Trafficking and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that JERRY PEA, age 42 of Ponchatoula, and JAMES JACKSON, age 34 of Hammond, were indicted yesterday by a federal grand jury on one count of conspiring to distribute crack cocaine and heroin in violation of Title 21, United States Code, Sections 841(a)(1) and 846; five counts of distributing crack cocaine and/or heroin in violation of Title 21, United States Code, Section 841(a)(1), and one count each of possessing a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A).
According to the indictment and an earlier-filed complaint, PEA and JACKSON conspired to distribute, and did in fact distribute, over 28 grams of crack cocaine and quantities of heroin across five days between March and May 2018, and each of the men possessed a firearm during at least one of those narcotics transactions. If convicted of the narcotics charges, PEA and JACKSON face terms of imprisonment of 5-40 years, fines of up to $5 million, and at least four years of supervised release following any term of imprisonment. If convicted of the firearms charges, PEA and JACKSON face terms of imprisonment of 5 years to run consecutive to any other sentence, fines of up to $250,000, and up to five years of supervised release.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution
Synthetic Drug Dealer Convicted on All CountsRead the Press Release
FRESNO, Calif. — Following a month-long jury trial, Douglas Jason Way, aka Jason Way, 45, of Evanston, Illinois, was found guilty today on all counts for a conspiracy to manufacture and distribute synthetic marijuana, U.S. Attorney McGregor W. Scott announced.
On May 15, 2014, Way was charged by an indictment filed in Fresno with conspiring to manufacture, distribute, and possess with intent to distribute synthetic cannabinoids or designer drugs, commonly known at the street level as “spice,” “K2” or “herbal incense.” He was also charged with manufacturing, distributing, possessing with intent to distribute, and attempting to possess with intent to distribute synthetic cannabinoids and with conspiring to possess acetone, a List II chemical, for the purpose of manufacturing synthetic cannabinoids, conspiring to defraud the United States and commit offenses against the United States, and causing the introduction of misbranded drugs into interstate commerce.
According to court documents, Way was the leader of a drug conspiracy involving the manufacture and distribution of at least 24 tons of smokable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11, also known as 5-F-UR-144. The chemicals came from China and the finished product was sold to smoke shops and retail outlets throughout the United States and generated over $32 million in illicit income in five months. Manufactured by companies called Zencense and ZenBio, the drugs were processed in warehouses in Millbrae and Stockton and marketed under the brand names of Bizarro, Posh, Sonic Zero, Headhunter, Neutronium, and Orgazmo. They were distributed to The Stuffed Pipe smoke shops located throughout the Central Valley of California, as well as to other retail establishments in 47 states.
Public health and law enforcement agencies have seen the emergence of synthetic drug use. State and local public health departments note that synthetic cannabinoids cause serious adverse health effects, including agitation, anxiety, nausea, vomiting, tachycardia, elevated blood pressure, tremor, seizures, hallucinations, paranoid behavior, and even death. According to the American Association of Poison Control Centers, poison centers throughout the United States received 5,230 calls about exposures to these drugs in 2012 and 2,656 exposures in 2013. Making matters worse, synthetic cannabinoids are often marketed as “legal” substances and sometimes labeled as “herbal incense” or “potpourri.” The 2012 Synthetic Drug Abuse Prevention Act made 26 types of synthetic cannabinoids, including AM-2201, Schedule I drugs under the Controlled Substance Act. DEA placed JWH-018 in Schedule I in 2011 and placed XLR11 in Schedule I in 2013.
This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration (FDA), and Fresno County Sheriff’s Office. Numerous other law enforcement agencies assisted in follow-up investigation, including the St. Cloud, Minnesota Police Department; Mars Hill, North Carolina Police Department; Montgomery County, North Carolina Sheriff’s Office; Buncombe County, North Carolina, Sheriff’s Office; and Willis, Texas Police Department. The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division. Assistant U.S. Attorneys Karen A. Escobar and Vincenza Rabenn are prosecuting the case.
Way is scheduled for sentencing on October 29, 2018, before U.S. District Judge Dale A. Drozd. With respect to the drug charges, Way faces a maximum statutory penalty of 20 years in prison and a $1 million fine, as to each count. The conspiracy to defraud charge carries a maximum penalty of five years in prison and a $250,000 fine. The FDA mislabeling charge carries a maximum statutory penalty of three years in prison and a $10,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Way is also facing the forfeiture of over $589,000, representing the drug proceeds that he derived from the illegal operation. To date, the U.S. Attorney’s Office has forfeited more than $6.5 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a 2013 Ford F350 pickup truck and a 2014 Airstream travel trailer.
St. Louis County Doctor Pleads Guilty to Obstructing FBI InvestigationRead the Press Release
St. Louis, MO – Dr. Vidal Sheen, 58, St. Louis County, Missouri, pled guilty to obstructing an investigation by the Federal Bureau of Investigation (“FBI”) regarding whether he billed the Medicare program and private insurers for “face to face” office visits performed on dates when he was actually traveling outside of Missouri, and sometimes traveling outside of the United States.
According to his plea agreement, Dr. Sheen operated a medical office in St. Louis County, Missouri. At the medical office, Dr. Sheen created medical records using a template falsely recited patients’ symptoms and histories, and sometimes recorded vital signs (e.g. pulse rates) that did not change between patients’ visits.
Moreover, from time to time, defendant traveled to various destinations, including Punta Cana in the Dominican Republic and Florida. For these timeframes when Dr. Sheen was out of town, he created office notes with false entries reflecting that he had seen patients in his office, using his electronic signature. Dr. Sheen's medical records did not discuss the role of the other employees in his office during the out-of-town visits, or his absence from the office on the dates of service.
The United States served Dr. Sheen’s office with a subpoena requesting medical records regarding his office visits in late 2016. In response to the subpoena, on December 1, 2016, Dr. Sheen produced medical records to the FBI in which he had made false entries about face-to-face office visits, in an effort to impede, obstruct, and influence the FBI’s billing investigation.
Dr. Sheen pled guilty to one felony count of obstructing an investigation before United States District Judge Audrey G. Fleissig. Sentencing has been set for October 23, 2018. He now faces a maximum penalty of twenty years in prison and/or fines up to $250,000, per count. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General for the U.S. Department of Health and Human Services.
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St. Augustine Sex Offender Charged with Child Exploitation OffensesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Kenneth Brian Hanger (46, St. Augustine) with attempted online enticement of a minor, attempted production of child pornography, and online solicitation of child pornography. In 1994, Hanger was convicted of aggravated indecent assault in Bradford County, Pennsylvania and is required to register as a sexual offender. Because of his prior child sex offense conviction, Hanger faces cumulative enhanced penalties in this case of 70 years, and up to life, in federal prison. On July 6, 2018, Hanger was ordered detained pending his trial.
According to court documents, on May 22, 2018, a detective with the St. Johns County Sheriff’s Office (SJSO) reviewed sexual offender registration information provided by Hanger. Hanger disclosed his use of a Facebook account that did not list his true name. Posing as a minor child, the detective sent a “friend request” to this account, and Hanger accepted this request and made online contact with the “child.” Between May 24 and June 5, 2018, Hanger and the “child” engaged in online conversations on several occasions using a texting application. Hanger was advised and acknowledged that the “child” was 13 years old.
On June 1, 2018, Hanger raised the topic of sexual activity between himself and the “child” and suggested meeting to engage in sex. On June 4, 2018, Hanger and the “child” again discussed meeting for sex, and Hanger sent the “child” an explicit photo of himself. Hanger suggested that they would need to use condoms so that the “child” would not become pregnant and Hanger would not “leave any DNA.” Later that day, Hanger asked the “child” to send him a graphic video depicting “her” genitalia. The next day, SJSO detectives arrested Hanger at his home.
This case was investigated by the St. Johns County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.justice.gov/psc.