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6 July 2018
Texas Construction Company’s Owner and CEO Sentenced to Prison for Defrauding the State DepartmentRead the Press Release
The owner, chief executive officer, and former president of a Texas construction company, HERC Solutions, was sentenced to 18 months in prison today for defrauding the U.S. Department of State out of $1.37 million. 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, Inspector General Steve A. Linick of the U.S. Department of State and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
Gary A. Duff, 53, of Kansas City, Kansas, was sentenced by U.S. District Judge Liam O’Grady of the Eastern District of Virginia. On Feb. 12, Duff pleaded guilty to a one-count criminal information charging him with conspiracy to defraud the United States and commit wire fraud.
According to admissions made in connection with Duff’s plea, HERC specialized in international construction projects for the State Department and other agencies in military zones and developing countries. Duff’s co-conspirator, Steven J. Graves, 66, of Woodbridge, Virginia, was a contract specialist and senior contracts administrator for the State Department’s Office of Acquisitions Management from November 2011 to February 2013. In this capacity, Graves often served as a point of contact for contracts awarded to HERC and other companies seeking to perform construction work or provide supplies and materials to U.S. embassies and consular buildings.
Duff and Graves used Graves’ official positions to steer contracts to HERC during a time-period when Graves was an actual or de facto partner in HERC. Graves served as the assigned point of contact for State Department contracts awarded to HERC while Graves was simultaneously attempting to generate business and raise capital for HERC, was concealing his conflict of interest from others, was participating in HERC’s internal business operations, and was disclosing confidential procurement information to HERC and its business partners. Upon his departure from government service, Graves immediately became HERC’s majority owner and a company executive.
On Sept. 20, 2017, Graves pleaded guilty to a two-count criminal information charging him with conspiracy to defraud the United States and commit wire fraud and a willful violation of the conflict of interest statute. Graves was sentenced to serve 15 months in prison by District Judge O’Grady on Jan. 19.
Special agents with the Department of State’s Office of Inspector General and the FBI’s Washington Field Office investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jack Hanly of the Eastern District of Virginia are prosecuting the case.
Tax Preparer Sentenced to Prison for Falsifying Income Tax ReturnsRead the Press Release
St. Louis, MO – Filmon Tekle was sentenced on Thursday to 21 months in prison for obstructing the administration of the internal revenue laws.
Tekle, 34, St. Louis, pled guilty in May 2018 to one felony count of conspiracy to defraud the United States and four counts of falsifying tax returns.
According to court documents, between 2013 and 2015, Tekle operated tax preparation stores under several different names. He paid nominees to use their names to obtain Electronic Filing Identification Numbers (EFINs) for the operating years of 2014 to 2015. New employees at the tax preparation businesses were trained to report the existence Schedule C income without the necessary documentation. Tekle instructed the employees how to prepare the returns and how to interact with the customers.
Tekle facilitated the filing of numerous false income tax returns between 2013 and 2015. The defendant charged significant fees for the filing of the false tax returns and had a system for paying the preparers a kickback for the false returns after the refund checks were mailed to the business. The total loss to the Internal Revenue Service as a result of the false tax returns filed is at least $167,469.
“The United States tax system depends on the voluntary compliance of taxpayers and the skill and integrity of tax professionals,” said U.S. Attorney Jeff Jensen.
Co-defendants Eddie Buren is awaiting trial and LaJohnda Dunger has pled – sentencing is set for July 17, 2018.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Jeannette Graviss handled the case for the U.S. Attorney's Office.
Senior Sinaloa Cartel Leader Extradited to the United StatesRead the Press Release
WASHINGTON – Today, Mexican authorities extradited Sinaloa Cartel leader Damaso Lopez Nuñez, also known as “El Licenciado,” to the United States to face drug trafficking charges filed in the Eastern District of Virginia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Assistant Director Robert Johnson of the FBI Headquarters Criminal Investigative Division, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office and Acting Special Agent in Charge Scott W. Hoernke of the U.S. Drug Enforcement Administration (DEA), Washington Division Office made the announcement.
Lopez Nuñez, 52, arrived in the United States this afternoon and will make an initial appearance on Monday, July 9, before U.S. Magistrate Michael S. Nachmanoff in federal court in Alexandria, Virginia. The case is assigned to U.S. District Judge T.S. Ellis III.
Lopez Nuñez is charged in a one-count indictment alleging that between 2003 and December 2016, Lopez Nuñez conspired with others to distribute significant quantities of narcotics for illegal importation into the United States.
“Until his capture, Damaso Lopez Nuñez allegedly participated in a multi-year conspiracy to distribute large amounts of cocaine, intending that the drugs be imported to the United States,” said Acting Assistant Attorney General Cronan. “Lopez Nuñez’s arrest and extradition demonstrates the commitment of the United States and our partners in Mexico to the pursuit of drug traffickers who seek to flood our streets with addictive and deadly poisons, for their own illicit gain.”
“This successful extradition of a high-level target is a reflection of years of collaboration and cooperation by multiple Department of Justice units and our law enforcement partners who are all committed to combatting transnational criminal organizations,” said U.S. Attorney Terwilliger. “With thanks to the authorities in Mexico for their efforts in facilitating this extradition so the defendant can be held accountable and face justice for his alleged crimes.”
The case was investigated by the FBI and the DEA, in cooperation with Mexican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorney’s Office in the Southern District of California. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Lopez Nuñez to the United States. The U.S. Marshals Service provided critical assistance in the location and capture of Lopez Nuñez and assisted in the extradition.
The U.S. Department of Justice thanks the Government of Mexico for its assistance in this case.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
Deputy Chief Amanda Liskamm, Assistant Deputy Chief Michael Lang, and Trial Attorney Cole Radovich of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) and Assistant U.S. Attorneys Daniel J. Grooms and James L. Trump of the Eastern District of Virginia are prosecuting the case.
Senior Sinaloa Cartel Leader Extradited to the United StatesRead the Press Release
Today, Mexican authorities extradited Sinaloa Cartel leader Damaso Lopez Nuñez, also known as “El Licenciado,” to the United States to face drug trafficking charges filed in the Eastern District of Virginia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Assistant Director Robert Johnson of the FBI Headquarters Criminal Investigative Division, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office and Acting Special Agent in Charge Scott W. Hoernke of the U.S. Drug Enforcement Administration (DEA), Washington Division Office made the announcement.
Lopez Nuñez, 52, arrived in the United States this afternoon and will make an initial appearance on Monday, July 9, before U.S. Magistrate Michael S. Nachmanoff in federal court in Alexandria, Virginia. The case is assigned to U.S. District Judge T.S. Ellis III.
Lopez Nuñez is charged in a one-count indictment alleging that between 2003 and December 2016, Lopez Nuñez conspired with others to distribute significant quantities of narcotics for illegal importation into the United States.
“Until his capture, Damaso Lopez Nuñez allegedly participated in a multi-year conspiracy to distribute large amounts of cocaine, intending that the drugs be imported to the United States,” said Acting Assistant Attorney General Cronan. “Lopez Nuñez’s arrest and extradition demonstrates the commitment of the United States and our partners in Mexico to the pursuit of drug traffickers who seek to flood our streets with addictive and deadly poisons, for their own illicit gain.”
“This successful extradition of a high-level target is a reflection of years of collaboration and cooperation by multiple Department of Justice units and our law enforcement partners who are all committed to combatting transnational criminal organizations,” said U.S. Attorney Terwilliger. “With thanks to the authorities in Mexico for their efforts in facilitating this extradition so the defendant can be held accountable and face justice for his alleged crimes.”
The case was investigated by the FBI and the DEA, in cooperation with Mexican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorney’s Office in the Southern District of California. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Lopez Nuñez to the United States. The U.S. Marshals Service provided critical assistance in the location and capture of Lopez Nuñez and assisted in the extradition.
The U.S. Department of Justice thanks the Government of Mexico for its assistance in this case.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deputy Chief Amanda Liskamm, Assistant Deputy Chief Michael Lang, and Trial Attorney Cole Radovich of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) and Assistant U.S. Attorneys Daniel J. Grooms and James L. Trump of the Eastern District of Virginia are prosecuting the case.
Reputed Godfather of Payday Lending Sentenced to 168 months in Federal PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Charles Hallinan, 77, of Villanova, Pennsylvania, was sentenced today to 168 months in federal prison and ordered to pay a $2.5 million fine in connection with a scheme to collect hundreds of millions of dollars in unlawful debt obtained from high-interest loans. In November 2017, a federal jury convicted Hallinan of all 17 counts of criminal conduct the government charged in its superseding indictment: two counts of conspiracy to violate the Racketeer Influenced and Corrupt Organization Act (“RICO”); one count of conspiracy to commit mail fraud, wire fraud, and money laundering; two counts of mail fraud and aiding and abetting; three counts of wire fraud and aiding and abetting; and nine counts of international money laundering and aiding and abetting.
Hallinan, a former investment banker, was in the payday lending business from at least 1997 to 2013. Dubbed “the Godfather of payday lending” by the media during his trial, Hallinan owned, operated, and financed companies that issued small-amount, fixed-fee loans and collected debts on these loans in excess of $690 million. The loans were known in the industry as “payday loans” because borrowers often took them out to cover expenses and then paid back the principal, plus fees and interest, with their next paychecks or other steady income, such as social security payments. Hallinan made his illegal fortune by charging fixed fees and high interest rates far in excess of what was permitted under states’ usury laws.
“Charles Hallinan, a sophisticated, highly educated business person, was nothing more than a loan shark whose entire business model was built on trapping his victims in an endless debt cycle,” said U.S. Attorney McSwain. “For years, this defendant unabashedly preyed on those who could least afford it—struggling borrowers who made these loans oftentimes to pay for life’s necessities. He bet his lifestyle on the fact that we would not catch him. He lost that bet,” McSwain commented. “Now, it’s time for Hallinan to repay his debt with the only currency we will accept: his freedom and his fortune, amassed at his victims’ expense.”
The government proved at trial that Hallinan knew these loans violated state law, so he hid his personal involvement behind a series of “straw” lenders, including a federally-insured bank and three Indian tribes. Hallinan’s co-defendant, Delaware attorney Wheeler K. Neff, assisted Hallinan in structuring the scam and hiding Hallinan’s involvement. Neff was sentenced in May 2018 to eight years’ imprisonment for his part in the scheme.
“Charles Hallinan devised an ugly way to make a pretty penny,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “This multimillionaire lived large on the proceeds of his sleazy payday lending empire, built on the backs of people literally living paycheck to paycheck. Exorbitant fees and usurious interest rates were the name of the game, and Hallinan always walked away the winner. Well, not this time. Now he’s walking away in handcuffs, headed to federal prison.”
As part of the sentence imposed today, the government sought and obtained a significant forfeiture judgment against Hallinan, which will strip him of the trappings of success he acquired as a result of his unlawful conduct. The district court ordered the defendant to pay a forfeiture money judgment of just over $64 million as proceeds of the RICO conspiracy, and also ordered him to forfeit his interest in approximately $1.2 million in funds in 18 bank accounts; two Mercedes Benz vehicles; one Bentley vehicle; and his Villanova mansion.
“IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex financial fraud and money laundering schemes,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means. Charles Hallinan’s prison sentence is a reminder that there are detrimental consequences for this type of criminal behavior.”
Daniel Brubaker, Inspector in Charge of the United States Postal Inspection Service, Philadelphia Division, praised the investigatory work behind the conviction: “This Office prides itself on investigating this type of criminal behavior. We too are proud to have worked with our law enforcement partners to aggressively investigate those who scheme to prosper at the expense of others.”
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Maria Carrillo.
Pollock prisoner from California sentenced to 20 years for attempt to kill prison staffRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that an inmate originally from California was sentenced to 240 months in prison for attempting to kill two staff members at the U.S. Penitentiary in Pollock.
Charles Lee White, 47, an inmate at the U.S. Penitentiary in Pollock, Louisiana, and who was formerly from Vallejo, California, was sentenced by U.S. District Judge Dee D. Drell on two counts of attempted murder of a federal employee. He was also sentenced to three years of supervised release. During a three-day trial that ended March 28, 2018, evidence admitted showed White and another inmate attacked two prison staff members on January 13, 2017. The staff members were conducting a health and welfare inspection of a housing unit when they noticed an inmate’s cell had a large surplus of commissary items and contraband items. The staff members decided to do a more detailed search of the cell, and were in the process of searching, when one inmate, a member of the California Crips, confronted the staff members. The staff members told the inmate to leave. He left for a while and then confronted the staff members a second time. Both staff members came out of the cell with the first staff member backing out of the cell while facing the inmate who had assumed a fighting stance and was refusing commands from staff. The second staff member was behind the inmate.
While the first staff member was facing the inmate, White, also a California Crip, snuck up from behind, punched the first staff member in the back of the head knocking him to the ground. White then pulled a homemade weapon, otherwise known as a shank, and stabbed the first staff member multiple times in the torso, arm and shoulder while saying he was going to kill him. The other inmate attacked the second staff member punching and biting him. After stabbing the first staff member, White stabbed the second staff member while he was struggling with the other inmate. White stabbed the second staff member in the torso and back and stabbed the other inmate in the arm. At this point, other staff responded and sprayed White with pepper spray. White refused to surrender, and continued to move around the unit with the shank in his hand. White returned to the second staff member and stabbed him again. Additional staff responded to the housing unit, gave commands to surrender, and sprayed both inmates with pepper spray after the commands were ignored. Both inmates were finally detained, and the shank was recovered as evidence. The inmates were taken to medical and assessed for injuries, which White had none. The other inmate refused medical treatment from the Pollock medical staff. The two staff members were transported to the emergency room at a local hospital to assess and treat their injuries and survived.
White is already serving a life sentence for a RICO conviction that included counts of murder and attempted murder.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Perry County Man Sentenced for Filing False Federal Income Tax ReturnsRead the Press Release
Jackson, TN – Joel Anthony Bunch, 41, of Clifton, Tennessee, has been sentenced to 12 months and a day imprisonment for filing false Federal Individual Tax Returns. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on November 20, 2017, Bunch pled guilty to one count of filing a false U.S. Individual Income Tax Return for tax year 2013. At that time, Bunch owned Bunch Forest Products, located in Clifton, Tennessee, and was the sole person responsible for the business record keeping. Bunch caused his paid tax return preparer to underreport his gross receipts for 2013 by depositing business income into his personal bank account, cashing income checks, and knowingly providing incomplete and inaccurate information to his paid preparer. As a result, Bunch’s 2013 gross receipts were underreported by $27,371, resulting in an additional tax due and owing of $8,361.
Today’s sentencing is based on Bunch underreporting gross receipts on U.S. Corporation Income Tax Returns for the tax years 2010 through 2013, as well as underreporting gross receipts on his Schedule C, Profit or Loss from Business on his U.S. Individual Income Tax Returns for tax years 2010 through 2013, in the amount of $555,572, which is outlined in an 8-count indictment handed down by a federal grand jury in Jackson on February 21, 2017, resulting in unreported corporate and individual income tax of $129,527.
U.S. Attorney D. Michael Dunavant said: "Protection of the United States Treasury is a core value and critical mission for this office and the Department of Justice. Income tax evasion and fraud strike at the very heart of our federal government, and will not be tolerated."
On July 2, 2018, Senior U.S. District Judge S. Thomas Anderson sentenced Bunch to 12 months and a day in federal prison followed by one year of supervised release. He was also ordered to pay $129,527 in restitution to the IRS, a result of his failing to pay taxes on all of his income.
This case was investigated by the Internal Revenue Service, Criminal Investigation.
Assistant U.S. Attorney Matthew J. Wilson prosecuted the case for the government.
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Parkersburg Man Pleads Guilty to Federal Gun ChargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pled guilty yesterday to a federal gun charge, announced United States Attorney Mike Stuart. Anthony Michael Mowery, 42, entered his guilty plea to being a felon in possession of a firearm before United States District Judge Joseph R. Goodwin. Stuart commended the investigative efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Recidivism is real,” said United States Attorney Mike Stuart. “Far too often convicted felons like Mowery, who are prohibited from possessing guns, continue their criminal conduct. Prosecution of felons in possession of firearms is vital to public safety.”
On August 19, 2016, Mowery possessed a Hi Point 9mm semiautomatic pistol during an argument he had with Joseph Daniel Mills near the little league baseball field in the vicinity of Buckeye Street and Camden Avenue in Parkersburg. Video evidence provided by Mills showed Mowery brandishing a pistol at Mills from the passenger seat of a vehicle. During the altercation, Mowery fled with the driver, abandoning the vehicle at the scene. Police recovered nine millimeter ammunition from the vehicle and a Hi Point pistol and magazine in the field nearby. Mowery was prohibited from possessing the firearm as a result of his previous felony convictions for child abuse and unlawful assault. In an unrelated matter, Mills has since been convicted of methamphetamine trafficking and was sentenced on May 25, 2018 to 108 months in federal prison.
Mowery faces up to 10 years in prison when he is sentenced on October 4, 2018. Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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North Suburban Businessman Sentenced to 24 months for Evading More Than $800,000 in State and Federal Income TaxesRead the Press Release
CHICAGO — A north suburban businessman who operated a cellular telephone distributorship throughout Illinois and other Midwestern states was sentenced last Friday to 24 months imprisonment for willfully failing to pay more than $800,000 in personal and corporate income taxes.
JORDAN ECKERLING, 53, of Highland Park, the owner of Pagecomm of Illinois Inc., pled guilty in January 2018, admitting that from 2008 to 2012 he caused tax losses to the United States and Illinois in the total amount of $806,099. As the sole shareholder and officer of Pagecomm, Eckerling attempted to conceal income by causing the company to issue him “business checks” that he cashed and used for personal expenses. Eckerling admitted he caused the company to pay personal expenses such as a housekeeper to regularly clean his boat and his primary and secondary residences, and charged personal expenses to Pagecomm’s credit card accounts, including for a family vacation to Cancun, Mexico. Eckerling also admitted that he used gift cards belonging to the company for personal expenses, and that he placed his wife on the company payroll to obtain health insurance in her name rather than his, even though she was not employed by the company.
U.S. District Judge Virginia M. Kendall imposed the sentence in federal court in Chicago. Eckerling was ordered to report to the Federal Bureau of Prisons on September 28, 2018. He paid the $806,099 tax obligations while the case was pending.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
North American Power Group Ltd and its Owner Agree to Pay $14.4 Million to Resolve Alleged False Claims for Department of Energy Cooperative Agreement FundsRead the Press Release
North American Power Group Ltd. (NAPG) and its owner and president, Michael Ruffatto, have agreed to pay the United States $14.4 million to resolve allegations that they violated the False Claims Act by submitting fraudulent claims under a cooperative agreement with the Department of Energy (DOE) National Energy and Technology Laboratory (NETL), located in Pittsburgh, Pennsylvania, the Department of Justice announced today.
Based in Greenwood Village, Colorado, NAPG develops, owns, operates and manages energy-related projects. On December 8, 2009, NETL awarded a $14 million cooperative agreement to NAPG for a Carbon Site Characterization Project to collect and analyze data, as well as to design and implement carbon sequestration wells at the Two Elk Energy Park (TEEP) located in Campbell County, Wyoming. Between December 2009 and January 2012, Ruffatto served as NAPG’s representative for the cooperative agreement and was responsible for authorizing the submission of the company’s invoices to NETL for payment. During that time, NAPG was paid approximately $5.7 million by NETL for costs purportedly related to the project. In fact, however, none of the claimed costs were for work associated with the project and instead reflected expenses incurred by Ruffatto to pay legal fees, car payments, jewelry, international travel and other personal items unrelated to the scope of work under the cooperative agreement. The DOE suspended the cooperative agreement in January 2012 after discovering the fraudulent claims.
“The money allocated by Congress for the National Energy and Technology Laboratory is designed to fund the important mission carried out by the laboratory, not to be diverted for personal use,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This investigation and its resolution demonstrate that the Justice Department will work with its agency partners to ensure that public funds are used for their intended purposes.”
“This $14.4 million False Claims Act settlement is the largest NETL settlement in the history of western Pennsylvania,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “Protecting taxpayer funds is an important priority of our office and this settlement, along with yesterday’s sentence, demonstrate we will use every tool in our arsenal to prevent and deter wrongful expenditures of government monies.”
“The Office of Inspector General is committed to ensuring the integrity of Department subcontractors by detecting and holding accountable those who choose to abuse their positions of trust while attempting to hide behind sophisticated fraud schemes,” said Acting Inspector General April G. Stephenson for the Department of Energy’s Office of Inspector General. “We appreciate the efforts of the DOJ in pursuing this important matter resulting in an 18 month sentence of incarceration, a $50,000 fine and a $14.4 million civil settlement for Mr. Ruffatto and NAPG. We will continue to work with the DOJ to aggressively investigate those who seek to defraud Department programs.”
On October 21, 2016, Ruffatto entered a plea of guilty in the U.S. District Court for the Western District of Pennsylvania to a felony count of intentional submission of false claims under 18 U.S.C. § 287. He was sentenced on June 27, 2018, to 18 months in prison, three years supervised release, a $50,000 fine and $2 million dollars more in restitution.
This settlement was the result of a joint investigation conducted by the DOE Office of Inspector General, the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Western District of Pennsylvania.
Maryland Man Sentenced to 6 ½-Year Prison Term for Sexually Assaulting Boy Who Was in His CareRead the Press Release
WASHINGTON – A 28-year-old man, from Laurel, Md., was sentenced today to a 6 ½-prison term for sexually abusing a young boy whose mother entrusted him to his care, U.S. Attorney Jessie K. Liu announced.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in April 2018, in the Superior Court of the District of Columbia, to a charge of second-degree child sexual abuse with aggravating circumstances. The plea, which was subject to the Court’s approval, called for a prison term of five to seven years. The Honorable Craig Iscoe accepted the plea today and sentenced the defendant accordingly. Upon completion of his prison term, the man will be placed on five years of supervised release. He also will be required to register as a sex offender for a period of 10 years.
According to the government’s evidence, the defendant was residing with the boy and the boy’s mother at an apartment in Southeast Washington at the time of the incidents in the District of Columbia, which took place between late October 2014 and late December 2015. At the time, the boy was four or five years old. The defendant was a significant caregiver to the boy during this time period because the mother worked one or two jobs or was attending school.
According to the evidence, the man rubbed his penis between the boy’s buttocks while the mother was out of the house. The victim disclosed the abuse in the summer of 2017, and an investigation led to the man’s arrest. He has been in custody since August 2017.
The victim also disclosed that the defendant’s abuse continued when the family moved to Prince George’s County, Md. Following the defendant’s sentencing by Judge Iscoe, the man pled guilty to a charge of sex abuse of a minor in that jurisdiction. He was sentenced to a concurrent sentence to the sentence imposed today in the District of Columbia.
In announcing the sentence, U.S. Attorney Liu commended those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division (MPD). She also expressed appreciation for the work of the Children’s Advocacy Center and Children’s National Medical Center. Finally, she acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica A. Vaughan, Forensic Interviewer Tracy Owusu, Paralegal Specialist T.J. McPhail, and Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the case.
Manhattan U.S. Attorney Files Civil Injunction Lawsuit Against Convicted Tax Preparer to Prevent Him from Continuing to Engage in Tax Preparation BusinessRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against SAMUEL GENTLE, who was previously convicted of preparing fraudulent federal tax returns through a tax preparation business, to prohibit him from preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws.
U.S. Attorney Geoffrey S. Berman said: “A tax return preparer who has repeatedly cheated the tax system by filing fraudulent tax returns should not be permitted to continue business as usual. This Office is committed to ensuring the integrity of the federal tax system that depends on truthful, accurate reporting.”
As alleged in the Government’s complaint filed in federal district court today:
From 2008 to 2014, GENTLE systematically and intentionally filed fraudulent federal tax returns on behalf of customers through his tax return preparation business, GenGen, Inc. In preparing these tax returns, GENTLE repeatedly invented charitable donations, claimed phony business losses for nonexistent businesses, and fabricated unreimbursed employee business expenses. GENTLE, who filed an average of 3,200 federal tax returns each year and whose profits depended on word-of-mouth referrals, prepared and fraudulently filed false tax returns in order to reduce his customers’ tax liabilities or obtain tax refunds to which his clients were not entitled. GENTLE’s conduct caused the United States to lose millions of dollars in understated taxes and fraudulent refunds. In 2016, a jury found GENTLE guilty of 38 counts of aiding and assisting in the preparation of false and fraudulent federal tax returns. The Government is now seeking an injunction against GENTLE that would, among other things, permanently bar him from preparing or filing federal tax returns on behalf of others.
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Mr. Berman thanked the Internal Revenue Service for its assistance with this case.
The case is being handled by the Tax and Bankruptcy Unit in the Office’s Civil Division. Assistant U.S. Attorney Jennifer C. Simon is in charge of the case.
Man Sentenced for Obstructing Counterterrorism InvestigationRead the Press Release
ALEXANDRIA, Va. – A Sterling man was sentenced today to 20 years in prison, followed by a lifetime period of supervised release, for obstructing a counterterrorism investigation and receipt of child pornography.
According to court documents, Sean Andrew Duncan, 22, altered, destroyed, mutilated, concealed, and covered up a thumb drive and memory chip with the intent to impede and obstruct an FBI terrorism investigation. He knowingly and unlawfully received images of minors engaged in sexually explicit conduct, and possessed thousands of such images including images of infants being sexually abused. In the statement of facts Duncan admitted to his involvement with ISIS and production of child pornography.
Obstruction of Justice
In June 2017, the FBI learned that Duncan had been in contact with an individual who had been detained in a foreign country for actively planning to travel to join ISIS. In or around February 2015, Duncan told the individual that he wanted to make “hijrah” to Syria and that he wanted her to go with him. Later in February 2016, Duncan was denied entry into Turkey and returned to the United States.
Around this same time, the individual told Duncan she was upset at work due to non-Muslim women wearing shorts that exposed their bodies. Duncan replied with a link to a website, and a message saying she could “try this.” The link contained pictures and instructions on how to make weapons and bombs. The link was to an article titled, “How to build a bomb in the kitchen of your Mom” from Inspire magazine. In December 2016, Duncan contacted the individual and told her that he had come back from Turkey, where he and his wife were deported back to the United States. Duncan said he thought the FBI was monitoring him.
In or around October 2017, law enforcement authorities of a foreign government arrested one of their citizens (Recruiter 1) for inciting rebellion. Recruiter 1 is an ISIS recruiter who is suspected of drawing foreign fighters from around the world to Recruiter 1’s home country using social media. Recruiter 1 kept names and telephone numbers of individuals who had requested to join her social media and/or communication application groups. Recruiter 1’s notes included a handwritten name appearing to be “Sean Ibn Gary Duncan,” with Duncan’s known previous phone number and known previous mobile messaging account.
On or about Oct. 6, 2017, the Allegheny County Police Department (ACPD) provided a copy of Duncan’s phone to the FBI. ACPD had obtained this copy during an investigation surrounding the recent death of Duncan’s infant child (the cause of death in the autopsy was inconclusive). The FBI’s review of Duncan’s imaged phone revealed numerous internet searches for ISIS-related material, ISIS attacks, weapons, and body armor.
On Dec. 29, 2017, FBI agents executed a search warrant at Duncan’s residence. Upon execution of the warrant, the agents knocked on the door, identified themselves as FBI, and announced that they were there to execute a search warrant. Moments before the FBI agents entered the residence through the front door, Duncan ran out the back door, barefoot, and with something clenched in his fist. FBI agents guarding the back door yelled at Duncan to stop. Before stopping, Duncan threw a plastic baggie in the air and over the heads of the agents. FBI agents recovered the baggie thrown by Duncan. The baggie was a clear plastic bag, containing a memory chip from a thumb drive that had been snapped into pieces, and placed in a liquid substance that produced frothy white bubbles. Upon searching Duncan, agents recovered a broken casing for a thumb drive from Duncan’s pants pocket.
Receipt of Child Pornography
In December 2017, Duncan possessed a smartphone containing images of pre-pubescent minors that appeared to be engaged in sexually explicit conduct with adult males. Other images on the phone were of pre-pubescent minors posed to expose their genitalia in a sexual manner. Several of the images of child pornography were screen shots that Duncan had taken of websites containing child pornography that he had visited. The pre-pubescent minors in the photos were as young as infants, and the total number of images was in the thousands.
One image on his phone consisted of Duncan’s hand exposing the genitalia of an infant in a sexual manner. Also found on several of Duncan’s phones and electronic devices were thousands of videos and images of children and women that Duncan took in a voyeuristic manner. Several of the videos and images are taken in public venues such as stores, metros, parks, and restaurants.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Gordon D. Kromberg, Colleen E. Garcia, Jay V. Prabhu, and Trial Attorneys B. Celeste Corlett, Rachel Hertz, and Troy Edwards of the National Security Division’s Counterterrorism Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-19.
Local Man Sentenced on Federal conspiracy Charges Involving Synthetic Drug TraffickingRead the Press Release
St. Louis, MO – Charles Wolfe, 57, from St. Peters, MO was sentenced to 186 months in prison in connection with conspiracy charges involving synthetic drug trafficking and money laundering. Wolfe’s co-defendants Mark Palmer, 47, from Granite City, IL, was sentenced to 168 months in prison and Sam Leinicke, 27 from Arnold, MO was sentenced to 48 months in prison.
According to court documents, Charles Wolfe d/b/a Psychedelic Blur, was a large scale distributor of synthetic cannabinoids also known as “K2” or “incense” and synthetic cathinones also known as “bath salts”. Wolfe distributed these dangerous drugs to customers located throughout the United States. Wolfe had a number of sources of supply, including Mark Palmer who manufactured the synthetic drugs with chemicals imported from China. Wolfe’s other suppliers included, but were not limited to defendants Anwer Rao, from O`Fallon Illinois, Michael Lentsch, from O`Fallon, IL, Brett Beeman, from O`Fallon, MO, Roy Ehrett, from Kansas City, MO and Robert Jaynes, from Indianapolis, IN whom have pled guilty. Samuel Leinicke manufactured the synthetic drugs for a period of time on behalf of Palmer.
After making adjustments for sentencing, Wolfe was responsible for the distribution of the marijuana equivalent of over 481,000 kilograms of marijuana and the laundering of millions of dollars in drug proceeds.
The charges include conspiracy to distribute and possess with the intent to distribute controlled substances and controlled substance analogues for human consumption, conspiracy to introduce misbranded drugs into interstate commerce, conspiracy to launder money, conspiracy to import controlled substances and controlled substance analogues intended for human consumption into the United States and conspiracy to receive in interstate commerce imported goods with a false manifest or documentation. In order to prove the substances are controlled substance analogues it must be shown that the substance had a substantially similar chemical structure as a controlled substance and that it also had a substantially similar stimulant, depressant or hallucinogenic effect on the central nervous system as a controlled substance. If intended for human consumption, the substance is treated as a Schedule I controlled substance.
The manufacture of synthetic drugs is a recent development designed to circumvent traditional drug laws by creating new chemical compounds that mimic the effects of drugs like marijuana and cocaine but purport to avoid the classification of a controlled substance because of a chemical alteration. The synthetic drugs are most frequently marketed as legitimate products and sold in typical commercial outlets such as convenience stores and gas stations. The drugs masquerade as incense, potpourri, glass cleaner, bath salts, and plant food, just to name a few and are usually sold in 1 gram, 3 gram, 5 gram, and 10 gram packages for prices ranging from $15.00 to $100.00 each.
Synthetic cathinones, also known as “bath salts,” are human-made substances with stimulant effects. These synthetic cathinones are typically smoked, snorted or injected and are packaged in containers with names such as Full Throttle, Fresh, Limited, Starry Nights, Twisted, Pump It and Blitz. Rao and Lentsch manufactured and marketed cathinones under the name “Go Go.” Reported effects have included hypertension, paranoia, anxiety, psychosis and in some cases death.
Synthetic cannabinoids mimic the effects of tetrahydrocannabinol (“THC”), the main psychoactive chemical in marihuana. Unlike THC, however, most synthetic cannabinoids are “full agonists.” That is, they activate the body’s type 1 cannabinoid receptors (CB1) to a greater degree (i.e., at 100%) than THC, which activates the CB1 receptors only at 30 to 50 percent. Additionally, unlike THC, synthetic cannabinoids do not contain the additional substances that moderate their adverse effects. Synthetic cannabinoids are typically smoked, and are packaged in multi-gram packets with names such as Mega Kush, Mad Hatter, Bayou Blaster, Avalon, Pirates Booty, Lights Out, and Golden Leaf. Rao and Lentsch manufactured and marketed their own blends of synthetic cannabinoids under the names “Mad Hatter,” “Deew,” “Cloud 9 Optima,” “Crazy Eyes,” and “Primo.” Although commonly referred to as synthetic marijuana, the effects are far more powerful and dangerous than so-called natural marijuana, with reported additional effects including excessive heart rate, vomiting, organ failure and death.
Charles Wolfe, Mark Palmer and Samuel Leinicke were found guilty in October 2017 after a 15-day trial to conspiracy drug charges and money laundering charges.
This case was investigated by US Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigation, Drug Enforcement Administration and the Postal Inspection Service. Additional assistance was received from the St. Louis County Police Department, St. Charles County Sheriff’s Department, MO Lake Area Narcotics Enforcement Group, Metropolitan Enforcement Group for Southern IL, Southern Illinois Drug Task Force, the Illinois Attorney General’s Office as well as the prosecuting attorney offices in St. Louis County, MO, St. Charles County, MO, Madison County, IL and St. Clair County, MO. Assistant United States Attorneys James Delworth, Erin Granger and Jennifer Winfield are handling the cases for the U.S. Attorney's Office.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on July 6, 2018, William Ellsworth Howell, Jr., 36, of Lincoln, Nebraska, was sentenced to 10 years and one month (121 months) in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine. Information provided to law enforcement indicated that between January of 2013 and August of 2016, Howell was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine in the Lincoln area. Following the prison term, Howell will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lafayette man pleads guilty to making threatening communications to office of U.S. Representative Clay HigginsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Lafayette man pleaded guilty Thursday to making threatening communications to the Lafayette office of U.S. Representative Clay Higgins.
Sohail Rana, 60, of Lafayette, pleaded guilty before U.S. District Judge Dee D. Drell to one count of threats by interstate communications. According to the guilty plea, Rana called Higgins’ Lafayette office on July 17, 2017 while in Colorado and spoke to his district director. Rana was described as being irate, cursing and screaming during the call. He said that he would end Higgins’ career and kill Higgins. The district director noted the phone number and reported the call within minutes to his chief of staff in Washington, D.C. Rana also made five subsequent calls that day with no additional threats. Rana took no steps toward following through on the original threat. The phone number used to call the office was traced to Rana’s cell phone, and he was later arrested in Colorado.
Rana faces up to five years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for October 9, 2018.
The FBI, U.S. Capitol Police-Threat Assessment Section, Lafayette Police Department and the Costilla County Sheriff’s Office in Colorado conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Internet Business Owner Pleads Guilty to Selling $2.3 Million Worth of Non-FDA Approved and Misbranded Botox and Juvederm-Related ProductsRead the Press Release
LAS VEGAS, Nev. – The owner and operator of numerous beauty product websites pleaded guilty today to selling $2.3 million in non-FDA approved and misbranded drugs and medical devices, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge William P. Conway of the U.S. Food & Drug Administration (FDA) Office of Criminal Investigations’ Chicago Field Office.
Kelly Luanne Schaible, aka Kelly Reed and Heather Lane, 56, previously of Henderson, Nevada, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of wire fraud and one count of introduction of misbranded medical devices in interstate commerce.
According to court documents, from 2009 to at least 2014, Schaible owned and operated AAE d/b/a Basics, Inc.; Basics, Inc.; and Basics Inc., Ltd. The companies’ websites sold various beauty products related to weight loss, hair loss, skin care, eyelashes, and wrinkle reduction. She operated the websites from Illinois, then from various homes she occupied in Henderson.
In admissions made in her plea agreement, Schaible knowingly marketed, sold, and distributed non-FDA approved prescription drugs containing Botulinum Toxin Type A, also known as Botox, and non-FDA approved prescription devices containing hyaluronic acid, also known as Juvederm related products. She obtained these products from distributors in China.
She further admitted that she made various misrepresentations on the websites that lead customers to believe the fake Botox and Juvederm products offered for sale were safe and could be administered without a prescription. She did not require customers to provide a valid prescription prior to purchase and the products were not properly labeled as required by federal law. Schaible sold approximately 9,500 units of misbranded prescription drugs containing Botulinum and received approximately $1.7 million in sales revenue. She also sold approximately 4,000 units of misbranded Juvederm products and received approximately $630,000 in sales revenue.
Furthermore, on July 1, 2012, Schaible made an online sale of misbranded products to a customer in Pennsylvania. The products did not have proper labeling providing adequate directions for use as required by federal law. She mailed the products from Henderson to Dresher, Pennsylvania using the U.S. Postal Service.
Sentencing is scheduled for October 25, 2018. The maximum statutory penalty for wire fraud is up to 20 years in prison and a $250,000 fine and the maximum statutory penalty for introducing misbranded devices into interstate commerce is three years in prison and a $10,000 fine.
The case was investigated by the FDA-Office of Criminal Investigations. Assistant U.S. Attorney Carla Baldwin Carry is prosecuting the case.
If you find a website that may be illegally selling medical products and devices, dietary supplements or cosmetics over the internet, make a report to the FDA by calling 1-866-300-4374 or at https://www.fda.gov/Safety/ReportaProblem/ucm059315.htm.
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Huntsville Man Sentenced for Explosives and FirearmsRead the Press Release
HOUSTON - A previously convicted felon has been ordered to federal prison for unlawfully possessing three explosive devices and firearms, announced U.S. Attorney Ryan Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Carl Eugene Fleming, 55, pleaded guilty March 16, 2018.
Today, U.S. District Judge Malinda Harmon sentenced him to 71 months imprisonment to be immediately followed by three years of supervised release. In arriving at the sentence, the Judge considered the need for punishment, deterrence and respect for the law. Judge Harmon further noted Fleming’s long history of possessing firearms while being a prohibited person.
“As the agency charged with investigating illegally obtained explosives, ATF works closely with the U.S. Attorney’s Office to prosecute offenders who violate these laws,” said Milanowski.
The investigation began after law enforcement believed Fleming had improvised explosive devices in the residence he was renting.
The ATF conducted a search at the location, at which time they discovered two explosive devices - one constructed with a grey metal pipe and a fuse, while the other was a 20mm ammunition can with explosive powder and shrapnel and a fuse primed for detonation. Also found were several firearms and ammunition.
He was taken into custody, at which time he also had in his possession a loaded .45 caliber pistol and three magazines of ammunition.
A third explosive device was later located hidden in Fleming’s room. This improvised explosive device consisted of PVC pipe with explosive powder, shrapnel and a fuse attached to an arrow.
As a previously convicted felon, Fleming is prohibited by federal law of possessing any firearm, ammunition or destructive devices.
He had been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant U.S. Attorney Steven Schammel is prosecuting the case.
Group Sentenced for Roles in Anchorage Mail Theft RingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that six Anchorage residents have been sentenced for their roles in a local mail theft ring. The two lead defendants were sentenced this week, and were the last of six defendants to be sentenced in this case.
Sara James, 31, was sentenced yesterday to serve 42 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, aggravated identity theft, possession of stolen mail, and passing counterfeit money. David Gonzales, 37, was sentenced earlier this week to serve 72 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, and aggravated identity theft.
According to court documents, from August 2016 to May 2017, Sara James and her husband, Jonathan James, conspired with Gonzales and others, to steal mail and pass stolen checks with stolen IDs at banks around Anchorage, and to recruit others to help them do the same. Sara and Jonathan James would take turns driving Gonzales to go “mailboxing,” stealing mail from rows of mailboxes and looking for valuable checks and credit cards. Most of the stolen checks were then altered to make the payee a separate stolen identity that was used by the defendants to negotiate the stolen checks. The investigation further revealed that Sara James and Gonzales would share in the proceeds from negotiating the stolen checks, and exchange drugs for stolen mail and IDs.
During the course of the conspiracy, both Sara James and Gonzales were on release pending state charges for the same conduct while continuing to commit new crimes. In August 2017, federal charges were brought to cover all conduct and include four other co-defendants. Over the last several months, the following co-conspirators have been sentenced as part of this investigation:
- Jonathan James, 34, was sentenced to 24 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, aggravated identity theft, possession of stolen mail, and passing counterfeit money;
- Brandon Madrid, 29, was sentenced to 30 months in prison, followed by five years of supervised release, for conspiracy, bank fraud, and aggravated identity theft;
- Braden Asbury, 21, was sentenced to one day in prison (credit for time already served), followed by five years of supervised release, for conspiracy and bank fraud; and
- Karri Embach, 35, was sentenced to time already served and five years of supervised release, for conspiracy and bank fraud.
The U.S. Postal Inspection Service (USPIS) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case, with assistance from the Palmer Police Department and the Criminal Investigations Unit of the State of Alaska Department of Revenue. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Former Vancouver, Washington, Tax Return Preparer Sentenced to Prison for Assisting in Filing False Tax DocumentsRead the Press Release
A Camas, Washington, tax preparer, who now lives in Vancouver, Washington, was sentenced today in U.S. District Court in Tacoma to a month in prison for assisting in filing false tax documents, announced U.S. Attorney Annette L. Hayes. PAULA ODIA, 44, prepared nearly 80 fraudulent tax returns, resulting in a tax loss to the U.S. that the government estimates is $254,191. Most of ODIA’s clients were unaware she had falsified their tax returns or that she directed a portion of their tax refund to her bank account or to accounts belonging to members of her family. At sentencing U.S. District Judge Robert J. Bryan said “This went on for a long time…. Theft is theft – You can’t steal from the government any more than you can from anybody else.”
“Many of the people who were betrayed by this defendant were undocumented-immigrants who paid taxes on their income despite their illegal status,” said U.S. Attorney Annette L. Hayes. “Ms. Odia thought she had the perfect fraud – steal from those who she believed would never go to the police to report the crime. I commend the IRS for its diligent efforts to ensure this defendant is held accountable for her actions.”
According to records filed in the case, between 2011 and 2016, ODIA prepared federal income taxes for customers from her Camas home. Clients would bring ODIA their records, and she would prepare and file their taxes. In 2011, ODIA began claiming illegitimate deductions and credits in her clients’ tax returns. These false deductions and credits reduced the clients’ tax obligations and increased the tax refund. ODIA then diverted a portion of that refund to bank accounts that she or members of her family controlled. When ODIA provided copies of the tax returns to clients, these copies did not reflect what ODIA actually filed with the IRS so that the clients would not see that some of the refund had been directed to ODIA’s accounts.
ODIA pleaded guilty in October 2017. She agreed to pay restitution to the U.S. Treasury of $254,191. Judge Bryan ordered one year of supervised release to follow the prison term.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Sidharth Velamoor.
Former Powell County Detention Center Deputy Indicted for Conspiring with Inmates to Assault Victim and Lying to Federal InvestigatorsRead the Press Release
WASHINGTON – A federal grand jury in Lexington, Kentucky, today returned a four-count indictment charging Jamie Derickson, a former deputy of the Powell County Detention Center, with violating the civil rights of an arrestee by conspiring with inmates at the detention center to assault the arrestee in a jail cell. Derickson is also charged with lying to the FBI about the assault.
The indictment alleges that on Aug. 17, 2016, Derickson conspired with several inmates in the jail, agreeing that the inmates would assault the arrestee after Derickson placed him in the cell. When the arrestee entered the cell, the inmates assaulted the arrestee, causing bodily injury. The indictment also alleges that Derickson violated the arrestee’s constitutional rights by aiding and abetting the inmates’ assault of the arrestee, and by being deliberately indifferent to the known serious risk that the victim would be assaulted. Finally, the indictment alleges that Derickson later lied to special agents of the FBI when he claimed to them that, at the time he placed the arrestee in the cell, he did not know that the inmates were going to assault him.
If convicted, Derickson faces a maximum term of imprisonment of 10 years for each civil rights offense and five years for lying to investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division are prosecuting the case.
Former Powell County Detention Center Deputy Indicted for Conspiring with Inmates to Assault Victim and Lying to Federal InvestigatorsRead the Press Release
A federal grand jury in Lexington, Kentucky, today returned a four-count indictment charging Jamie Derickson, a former deputy of the Powell County Detention Center, with violating the civil rights of an arrestee by conspiring with inmates at the detention center to assault the arrestee in a jail cell. Derickson is also charged with lying to the FBI about the assault.
The indictment alleges that on Aug. 17, 2016, Derickson conspired with several inmates in the jail, agreeing that the inmates would assault the arrestee after Derickson placed him in the cell. When the arrestee entered the cell, the inmates assaulted the arrestee, causing bodily injury. The indictment also alleges that Derickson violated the arrestee’s constitutional rights by aiding and abetting the inmates’ assault of the arrestee, and by being deliberately indifferent to the known serious risk that the victim would be assaulted. Finally, the indictment alleges that Derickson later lied to special agents of the FBI when he claimed to them that, at the time he placed the arrestee in the cell, he did not know that the inmates were going to assault him.
If convicted, Derickson faces a maximum term of imprisonment of 10 years for each civil rights offense and five years for lying to investigators.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
The FBI conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Zachary Dembo of the Civil Rights Division are prosecuting the case.
Former Police Officer Sentenced to 18 Months in Federal Prison for Filing False Tax ReturnRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CRAIG FRANCIS, also known as Horus Durjaya Bey, 45, of Windsor, Connecticut, and Clermont, Florida, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 18 months of imprisonment, followed by one year of supervised release, for filing a false tax return.
According to court documents and statements made in court, in February 2009, FRANCIS, a former Hartford Police officer, E-filed a 2008 federal income tax return that listed falsely inflated amounts of both interest income received and taxable income withheld by the government, and requested a fraudulent refund of $255,904. On approximately March 1, 2009, the Internal Revenue Service issued the refund before determining that the tax return was fraudulent, and that FRANCIS was actually entitled to a refund of only $4,073.
Shortly after receiving the fraudulent refund, FRANCIS spent or converted to cashier’s checks more than $220,000 of the money he received. FRANCIS possessed $100,000 in cashier’s checks when the IRS officially notified him of the error on April 7, 2009. However, FRANCIS cashed the checks and spent the money over the next three months.
As of today, FRANCIS owes the IRS $387,103.07, which includes interest and penalties.
FRANCIS was arrested on June 7, 2017, in Florida. On February 22, 2018, he pleaded guilty to one count of filing a false tax return.
FRANCIS, who is released on a $250,000 bond, was ordered to report to prison on August 6, 2018.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Henry Kopel.
Former Delgado Community College Financial Aid Officer Charged with Solicitation and Receipt of BribesRead the Press Release
DAVIN D. THOMAS (“THOMAS”), age 32, of Ponchatoula, Louisiana, was charged July 5, 2018 in a one-count Superseding Bill of Information with soliciting money from students in exchange for awarding students financial aid, announced United States Attorney Duane A. Evans.
According to the Bill of Information, THOMAS was employed as a Financial Aid Assistant Director at Delgado Community College ("DCC"). THOMAS was responsible for the verification of student financial aid applications and for identifying the students who were eligible for financial aid funds. From April 2014 through August 2016, THOMAS solicited funds in the amount of $6,700 from three DCC students in exchange for awarding the students financial aid.
U. S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, THOMAS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and United States Department of Education, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Julia K. Evans.
Final Defendant Convicted of Federal Racketeering Conspiracy at Maryland’s Eastern Correctional InstitutionRead the Press Release
Baltimore, Maryland – A federal jury convicted correctional officer Jessica Vennie, age 28, of Crowley, Texas, on July 5, 2018, for racketeering at the Eastern Correctional Institution in Westover, Maryland, as well as drug and money laundering conspiracies. The scheme involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The jury acquitted correctional officer Jocelyn Byrd, age 41, of Salisbury, Maryland.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS).
According to the information presented at the nine-day trial, Vennie was a correctional officer at the Eastern Correctional Institution (ECI), the largest state prison in Maryland, operating since 1987, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. Vennie was assigned to the East Compound.
The evidence at trial showed that from about 2015, until October 5, 2016, Vennie and other correctional officers (COs) smuggled contraband into ECI, including narcotics, cell phones, pornographic DVDs, and tobacco. These items were distributed by inmates, and the COs managed the proceeds of the sales. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and others less. According to the trial testimony, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI.
The evidence showed that Vennie conspired to smuggle narcotics into ECI, including Suboxone and synthetic cannabinoids (otherwise known as “K2”). Although COs and other ECI employees were required to pass through security screening at the entrance to ECI, Vennie and other COs were able to hide contraband on their persons. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. Once Vennie and the other COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerks’ offices, which were private offices within each housing unit where an inmate clerk worked; the officers’ dining room where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations like staff bathrooms, storage closets, laundry rooms, and other places where contraband could be hidden and then later retrieved by inmates.
Vennie and her co-defendant were the final defendants remaining in this case. As a result of this verdict, 77 of the 80 defendants have now been convicted, including 16 of the 18 correctional officers charged. All the defendants who have been sentenced to date have been ordered to serve a term of imprisonment, ranging from a year and a day in prison to 65 months in prison.
Vennie faces a maximum sentence of 20 years in prison each for the racketeering conspiracy, for conspiracy to distribute and possess with intent to distribute K2, and for the money laundering conspiracy. Chief Judge James K. Bredar has scheduled Vennie’s sentencing for October 5, 2018.
The United States. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist in the three-year investigation.
United States Attorney Hur commended the FBI, the U.S. Postal Inspection Service, the Maryland Department of Public Safety and Correctional Services, the Baltimore Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Final Bank Robber Sentenced in Conspiracy to Rob Banks in LincolnRead the Press Release
United States Attorney Joe Kelly announced today that Kiana Stabler, the final member of a bank-robbing conspiracy, was sentenced to 84 months’ imprisonment. The five defendants worked together to rob six banks in Lincoln, Nebraska, in 2017. All five defendants pleaded guilty to a conspiracy to interfere with commerce by robbery, a count that carries a term of up to 20 years’ imprisonment, and up to three years of supervised released.
The defendants were sentenced as follows:
Julian Huffman, who served as a getaway driver for one bank robbery while still on parole in the State of Missouri, was sentenced to 60 months in prison;
Kaylene Stabler, who entered one of the banks and brandishing a pellet gun, was also sentenced to 60 months in prison;
Crystal Stabler, who served as a getaway driver for two robberies, was sentenced to 48 months in prison;
Kiana Stabler, who entered three banks using pepper spray on a victim and causing bodily injury to multiple victims inside one bank, was sentenced to 84 months in prison; and
Israel Holmes, who committed six bank robberies as part of the conspiracy and entered each bank, brandished dangerous weapons, and made threats to employees and customers of the banks, was sentenced to 120 months in prison.
All of the defendants were ordered to make full restitution to the victims.
This case was jointly investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Filipino Woman Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Jade Tiffany Laurezo, 34, a native of the Philippines, made her initial appearance yesterday in federal court in Roswell, N.M., on a criminal complaint charging her with possessing child pornography. Laurezo, who has been in the United States for several months on a visitor’s visa, remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for July 11, 2018, in Las Cruces, N.M.
According to the criminal complaint, the investigation leading to Laurezo’s arrest began in March 2018, when the Chaves County Sheriff’s Office (CCSO) followed up on a report from the National Center for Missing and Exploited Children regarding an email address subscribed to a Roswell residence where Laurezo was residing that allegedly was used to upload three files of child pornography. On June 27, 2018, the CCSO executed a state search warrant at the residence.
While executing the search warrant, the officers seized a cellular phone, which allegedly belonged to Laurezo. On July 3, 2018, the CCSO executed a state search warrant on the cellular phone and found that it contained four videos of child pornography.
If convicted of possession of child pornography, Laurezo faces up to ten years of imprisonment and will be deported after completing any prison sentence imposed. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Roswell office of the FBI, Homeland Security Investigations, and the Chaves County Sheriff’s Office. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437, or to contact Homeland Security Investigations at 1-866-DHS-2-ICE.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Felon from Edgewood Pleads Guilty to Unlawful Possession of Firearm and Ammunition Under Plea Agreement Recommending 188 Months of ImprisonmentRead the Press Release
ALBUQUERQUE – Dennis Griego, 36, of Edgewood, N.M., pled guilty yesterday in federal court in Albuquerque, N.M., to violating the federal firearms laws by being a felon in possession of firearms and ammunition. Griego entered the guilty plea under an agreement recommending a sentence of 188 months of imprisonment followed by a term of supervised release to be determined by the court. Griego faced an enhanced penalty of a mandatory minimum sentence of 15 years of imprisonment based on his status as an armed career criminal.
Griego’s guilty plea was announced by U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Albuquerque Police Chief Michael Geier.
Griego, whose criminal history includes prior felony convictions for commercial-automotive burglary, possession of a controlled substance, residential burglary, being a felon in possession of a firearm, and aggravated battery against a household member with a deadly weapon, is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Griego on Dec. 6, 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on April 29, 2016, in Bernalillo County, N.M. Griego was prohibited from possessing firearms and ammunition because of his prior felony convictions.
During yesterday’s change of plea hearing, Griego pled guilty to the indictment and admitted that he committed the offense on April 29, 2016, when officers of the Albuquerque Police Department served a state warrant for his arrest and executed a state search warrant at his residence. When the officers arrived at his residence, Griego barricaded himself in his residence, resulting in a prolonged standoff with the officers. The officers seized a firearm and ammunition from Griego’s residence when Griego surrendered and the officers were able to arrest him and execute the search warrant.
Griego has been in federal custody since his arrest and remains detained pending a sentencing hearing, which has yet to be scheduled.
The Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated the case, which is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
District Man Sentenced to Three Years in Prison for Apartment Break-in in Northwest WashingtonRead the Press Release
WASHINGTON - Floyd Sellers, 55, of Washington, D.C., was sentenced today to three years in prison after earlier pleading guilty to a charge stemming from a break-in of an apartment in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Sellers pled guilty in March 2018, in the Superior Court of the District of Columbia, to a charge of attempted burglary. He was sentenced by the Honorable Robert A. Salerno. Following his prison term, he will be placed on three years of supervised release.
According to the government evidence, on July 24, 2016, at approximately 1 a.m., Sellers smashed the rear window of an apartment in the 1500 block of Church Street NW. He entered the apartment and stole some electronic devices, including an iPad, iPhone, laptop, and camera. No one was home at the time. The Metropolitan Police Department (MPD) later linked Sellers to the crime through fingerprints and other evidence and he was arrested in December 2016.
In announcing the sentence, U.S. Attorney Liu commended the work of the detectives from MPD’s Second District, who investigated the case. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. Finally, she acknowledged the efforts of Assistant U.S. Attorney Nurudeen Elias, who investigated and prosecuted the case with assistance from Assistant U.S. Attorney Veronica Sanchez.
Dauphin County Woman Charged with Tax EvasionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diane M. Fabian, age 67, of Middletown, Pennsylvania, was charged in a criminal information on July 5, 2018, with tax evasion.
According to United States Attorney David J. Freed, the information alleges that from 2011 through 2015, Fabian filed tax returns that understated her income resulting in a total tax due and owing to the United States of $45,100.
The case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Criminal informations 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 five years, 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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Court Imposes Maximum Fine on Sinovel Wind Group for Theft of Trade SecretsRead the Press Release
A manufacturer and exporter of wind turbines based in the People’s Republic of China was sentenced today for stealing trade secrets from AMSC, a U.S.-based company formerly known as American Superconductor Inc., announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
The Court found that AMSC’s losses from the theft exceeded $550 million, and imposed the maximum statutory fine in the amount of $1.5 million on Sinovel Wind Group LLC. The Court found that the parties settled the restitution amount, and imposed a year of probation until Sinovel pays the full restitution amount. Sinovel has paid $32.5 million to AMSC this week and will pay $25 million within its year of probation. Sinovel will also pay $850,000 to additional victims within its year of probation. Sinovel was convicted of conspiracy to commit trade secret theft, theft of trade secrets, and wire fraud on Jan. 24 following an 11-day jury trial in Madison, Wisconsin.
“Rather than pay AMSC for more than $800 million in products and services it had agreed to purchase, Sinovel instead hatched a scheme to brazenly steal AMSC’s proprietary wind turbine technology, causing the loss of almost 700 jobs and more than $1 billion in shareholder equity at AMSC,” said Acting Assistant Attorney General Cronan. “As demonstrated by this prosecution, intellectual property theft poses a serious threat to American companies, and the Department of Justice is committed to aggressively investigating and prosecuting individuals and corporations who undermine American competitiveness by stealing what they did not themselves create.”
“This case is about protecting American ideas and ingenuity,” said U.S. Attorney Blader. “My office is committed to prosecuting the theft of intellectual property to ensure an open and fair marketplace. The devastation Sinovel’s illegal actions caused to AMSC and its employees will not be tolerated.”
As proven at trial, Sinovel stole proprietary wind turbine technology from AMSC in order to produce its own turbines powered by the stolen intellectual property. AMSC developed the technology – software that regulates the flow of electricity from wind turbines to electrical grids – in Wisconsin and elsewhere. At the time of the theft in March 2011, Sinovel had contracted with AMSC for more than $800 million in products and services to be used for the wind turbines that Sinovel manufactured, sold, and serviced.
Sinovel was charged on June 27, 2013, along with Su Liying, the deputy director of Sinovel’s Research and Development Department; Zhao Haichun, a technology manager for Sinovel; and Dejan Karabasevic, a former employee of AMSC Windtec Gmbh, a wholly-owned subsidiary of AMSC. The evidence presented at trial showed that Sinovel conspired with the other defendants to obtain AMSC’s copyrighted information and trade secrets in order to produce wind turbines and to retrofit existing wind turbines with AMSC technology without paying AMSC the more than $800 million it was owed and promised. Through Su and Zhao, Sinovel convinced Karabasevic, who was head of AMSC Windtec’s automation engineering department in Klagenfurt, Austria, to leave AMSC Windtec, to join Sinovel, and to steal intellectual property from the AMSC computer system by secretly downloading source code on March 7, 2011, from an AMSC computer in Wisconsin to a computer in Klagenfurt. Sinovel then commissioned several wind turbines in Massachusetts and copied into the turbines software compiled from the source code stolen from AMSC. The U.S.-based builders of these Massachusetts turbines helped bring Sinovel to justice. Su and Zhao are Chinese nationals living in China, and Karabasevic is a Serbian national who lived in Austria, but now lives in Serbia.
According to evidence presented at trial, following the theft, AMSC suffered severe financial hardship. It lost more than $1 billion in shareholder equity and almost 700 jobs, over half its global workforce.
The case was investigated by the FBI’s Madison Resident Agency, Milwaukee Field Office, and the FBI’s Boston Field Office; this investigation was supported by an international team of FBI personnel, including agents and analysts stationed at FBI Legal Attaché Offices in Vienna, Austria and Beijing, China; and the FBI’s Intellectual Property Rights program within the Criminal Investigative Division; the Bundeskriminalamt (Federal Criminal Intelligence Service) and the Bundesministerium Fuer Justiz (Federal Ministry of Justice) in Austria; the Landeskriminalamt - Klagenfurt and the Staatsanwaltschaft - Klagenfurt (Criminal Investigative Police and State Prosecutor’s Office – Klagenfurt, Austria); and with the assistance of the Justice Department’s Office of International Affairs and the Cybercrime Laboratory of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Senior Counsel Brian L. Levine of CCIPS and Assistant U.S. Attorneys Timothy M. O’Shea and Darren C. Halverson for the Western District of Wisconsin prosecuted the case, with substantial assistance from CCIPS Trial Attorney Joss Nichols and the CCIPS Cybercrime Lab, particularly Digital Investigative Analyst Laura Peterson.
The Department of Justice’s Task Force on Intellectual Property (IP Task Force) contributed to this case. The IP Task Force is led by the Deputy Attorney General to combat the growing number of domestic and intellectual property crimes, to protect the health and safety of American consumers, and to safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. To learn more about the IP Task Force, go to https://www.justice.gov/iptf .
Continued Increase in Federal Regional Violent Crime ProsecutionsRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. At least 85% of federal sentences must be served; there is no parole in the federal system. None. Sentences are served in prisons far from St. Louis. Below is a list of defendants prosecuted federally in June as a result of the hard work of police and agents:
Robert Childs, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Don Collins, 36, Jennings, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Joseph Paster, 30, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
Clifton Hudson, 34, was indicted by a federal grand jury on one felony count of conspiracy with the intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Daylin Crafton, 30, Florissant, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and ammunition.
Joseph Dixon, Jr., 21, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possession of a firearm in furtherance of a crime of violence.
Joey Foster, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Davian Hampton, 39, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Virgil Johnson, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Langston, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrence McGee, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Robert Siebert, 63, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm with an obliterated serial number and user of illegal narcotics in possession of a firearm.
Tredell Wilkes, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jevin Fossie, 31, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin and possession of a firearm in furtherance of a drug-trafficking crime.
Eric Jackson, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corzelius Kent, 34, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.
Luis Sanchez-Padilla, 21, St. Louis, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.
Anthony Tobias-Haywood, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Clarence Hill, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrance White, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jaleel Adams, 23, St. Louis, was indicted by a federal grand jury on one felony count of distributing acetyl-fentanyl and that the death of a person resulted from the use of such acetyl-fentanyl; possession of a firearm in furtherance of a drug-trafficking crime; and possessed a stolen firearm.
Jesse Calhoun, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jeremy Dickerson, 27, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
Michael Dilworth, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Leroy Eason, III, 43, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute heroin; felon in possession of a firearm; and possession of a firearm in furtherance of a drug-trafficking crime.
John Ehrsam, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Ewing, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dominick Foote, 38, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute a controlled substance; possession of a firearm in furtherance of one or more drug-trafficking crimes; and felon in possession of a firearm.
Danny Harris, 22, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Leona Jackson, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Cyrano Jones, 47, was indicted by a federal grand jury on one felony count of conspiracy to distribute and possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; and possession of a firearm in furtherance of a drug trafficking crime.
Jeffrey Jones, 21, St. Ann, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Avion Kincade, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jared Levitt, 19, St. Louis, was indicted by a federal grand jury on one felony count of drug user in possession a firearm; possession with the intent to distribute liquid marijuana; and possession of a firearm in furtherance of a drug-trafficking crime.
De’Andre Logan, 18, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.
William Young, 25, St. Louis, was indicted by a federal grand jury on one felony count of carjacking and possessing a firearm in furtherance of a crime of violence.
Lorenzo Luna-Espinoza, 22, Midland, TX, was indicted by a federal grand jury on one felony count of illegal alien in possession of a firearm.
Donte Parks, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Clark Roberts, 49, Cahokia, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with the intent to distribute cocaine; and possession of a firearm in furtherance of a drug-trafficking crime.
Travis Robinson, 21, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Devin Thompson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Cory Chandler, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Vinson Griffin, Jr., 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Victor Mora, 33, was indicted by a federal grand jury on one felony count of interference with commerce by violence.
Tyrell Phillips, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jerome Rankins, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Earl Rice, 60, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.
Darius Scott, 29, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
John Spudich, Jr., St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Quoc Tran, 22, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Kenneth Watkins, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Emanuel Wesseh, 26, was indicted by a federal grand jury on one felony count of prohibited person in possession of a firearm.
Anthony Williams was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug-trafficking crime.
Brandon Woods, 34, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; interference with commerce by violence; brandishing a firearm in furtherance of a crime of violence; and carjacking.
Roger Goff, 21, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and possession with intent to distribute a controlled substance.
Dyanthany Proudie, 26, St. Louis, pled guilty to felon in possession of a firearm and possession with intent to distribute.
Jamarco Cousins, 30, St. Louis, pled guilty to felon in possession of a firearm.
Anthony Williams, 40, St. Louis, pled guilty to felon in possession of a firearm.
Cortez Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.
Justin Willis, 24, St. Louis, pled guilty to felon in possession of a firearm.
Domonique Isreal, 25, St. Louis, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
Christopher Wilson, 28, Omaha, NE, pled guilty to felon in possession of a firearm.
Marlon Adams, 37, St. Louis, pled guilty to felon in possession of a firearm.
Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.
Alex Wheelis, 27, St. Louis, pled guilty to felon in possession of a firearm.
Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.
Kirk Wallace, 33, St. Louis, pled guilty to felon in possession of a firearm.
William Johnson, 23, St. Louis, pled guilty to felon in possession of a firearm.
Corey States, 40, St. Louis, pled guilty to felon in possession of a firearm.
Andre Adams, 32, St. Louis, pled guilty to felon in possession of a firearm.
Devin Tate, 25, pled guilty to felon in possession of a firearm.
Devosha Gray, 19, St. Louis, pled guilty to felon in possession of a firearm.
Maurice Cooper, 38, St. Louis, pled guilty to felon in possession of a firearm.
Demarco Moorehead, 27, St. Louis, pled guilty to felon in possession of a firearm.
Deandre Thompson, 45, St. Louis, pled guilty to felon in possession of a firearm.
Acotra Weaver, 28, St. Louis, pled guilty to felon in possession of a firearm.
Darryl E. Allen, 50, St. Louis, pled guilty to felon in possession of a firearm.
Tito Santiago, 33, St. Louis, pled guilty to felon in possession of a firearm.
Damen Gascic, 33, pled guilty to felon in possession of a firearm; possession of an unregistered firearm; possession of controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Wilbert Anderson, 26, St. Louis, pled guilty to felon in possession of a firearm.
Squacar Gray, 40, St. Louis, pled guilty to felon in possession of a firearm.
Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.
Melvin Cooper, 49, St. Louis, pled guilty to felon in possession of a firearm.
Damon Catchings, 44, pled guilty to felon in possession of a firearm.
Charles D. Smith, 29, St. Louis, pled guilty to felon in possession of a firearm.
Marvin Williams, 42, St. Louis, pled guilty to felon in possession of a firearm; forcible assault with a firearm; and possession with the intent to distribute marijuana.
Marquis Shores, 35, pled guilty to felon in possession of a firearm.
Sterling Turner, 39, pled guilty to felon in possession of a firearm.
Donovan Jacobs, 26, St. Louis, pled guilty to felon in possession of a firearm.
Deon D. Story, Jr., 38, St. Louis, pled guilty to felon in possession of a firearm.
Justin I. Morrow, 20, St. Louis, pled guilty to armed robbery and discharging a firearm in furtherance of a crime of violence.
Charles J. Jones, 45, St. Louis, pled guilty to felon in possession of a firearm.
Kenneth Foster, 44, St. Louis, pled guilty to felon in possession of a firearm.
Donnell Witherspoon, 37, St. Louis, pled guilty to felon in possession of a firearm.
Kenneth J. Pace, 24, St. Louis, was sentenced to 42 months in prison for felon in possession of a firearm.
Darryl Easley, 48, St. Louis, was sentenced to 96 months in prison for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Dominique D. Simpson, 26, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Kenyetta Chapman, 22, Stockton, CA, was sentenced to 27 months in prison for felon in possession of a firearm.
Raynard Davison, 44, St. Louis, was sentenced to 8 months in prison for felon in possession of a firearm.
Amin Suluki-Bey, 48, St. Louis, was sentenced to 114 months in prison for armed robbery and brandishing a firearm in furtherance of a crime of violence.
Rashad Faries, 26, St. Louis, was sentenced to 18 months in prison for receipt of a firearm while under Indictment.
Joshua Brison, 24, St. Louis, was sentenced to 30 months in prison for importing a firearm/ammunition into the United States.
Johnnie Stewart, 36, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
Demante Syms, 26, St. Louis was sentenced to life in prison for his participation in the killing of three individuals in furtherance of drug trafficking and his tampering with a witness.
Jerome Hughes, 31, St. Louis, was sentenced to 21 months in prison for felon in possession of a firearm.
Anthony Young, 45, St. Louis, was sentenced to 108 months in prison for felon in possession of a firearm.
George Grice, 32, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm and possession with intent to distribute heroin.
Terrell Raney, 40, St. Louis, was sentenced to 19 months in prison for felon in possession of a firearm.
Chad M. Jackson, 34, Florissant, was sentenced to 30 months in prison for felon in possession of a firearm.
Cory Smith, 29, Fenton, was sentenced to 33 months in prison for possession of a firearm/ammunition.
Jacobi Temple, 27, St. Louis, was sentenced to 50 years in prison for conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted.
Ramiro C. Valenzuela, 29, St. Charles, was sentenced to 21 months in prison for felon in possession of a firearm.
Jake Richardson, 24, St. Louis, was sentenced to 36 months in prison for felon in possession of a firearm.
Willie McFarland, 43, St. Louis, was sentenced to 18 months in prison for felon in possession of a firearm.
Quavo D. Williams, 22, Washington Park, IL, was sentenced to 12 years in prison for attempted carjacking and brandishing a firearm in furtherance of a crime of violence.
Michael Thomas-Williams, 35, Hazelwood, was sentenced to 90 months in prison for felon in possession of a firearm.
Michael E. Broom, Jr., 28, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.
Dane Reed, 41, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
These cases are 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.
Columbus Man Sentenced to 80 Months in Prison for Attempting to Provide Material Support to ISISRead the Press Release
COLUMBUS, Ohio – Aaron Travis Daniels, 21, aka Harun Muhammad, aka Abu Yusef of Columbus was sentenced in U.S. District Court to 80 months in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The court also granted the government’s request to place Daniels under court supervision for the rest of his life.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and agencies participating in the Columbus Joint Terrorism Task Force (JTTF) announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.
Documents filed with the court say Daniels met with an ISIS recruiter in December 2015 and sent funds to ISIS in order to “show his worth” to an ISIS recruiter. JTTF agents arrested Daniels on November 7, 2016, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on November 10, 2016. Daniels pleaded guilty on July 6, 2017 to one count of attempting to provide material support to ISIS. Daniels has been in custody since his arrest.
“One of a terrorist organization’s most valuable and dangerous assets is having control over a person willing to support and advance terrorism in the United States,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
Chief Judge Sargus also granted the government’s requests that, during Daniels’ supervised release, he receives ongoing mental health treatment, is prohibited from using alcohol or controlled substances, cannot travel internationally, and has no access to the internet without court approval. The court also ordered that Daniels be subject to search at any time without probable cause while on supervised release.
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
Assistant U.S. Attorney Jessica W. Knight and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section represented the United States in this case. Former Special Assistant U.S. Attorney Joseph Gibson also represented the United States in this case when he was with Franklin County Prosecutor Ron O’Brien’s Office.
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Champaign County Man Pleads Guilty to Producing Child PornographyRead the Press Release
DAYTON –Aaron Pauly, 44, of St. Paris, Ohio, pleaded guilty today to producing child pornography by coercing and threatening juvenile females to send him sexually explicit images of themselves.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the plea entered today before U.S. District Judge Thomas M. Rose.
According to court documents, Pauly created multiple fake accounts on social messenger services, using false names and photographs of others, including a family member, as his profile pictures. Pauly requested and received nude images and videos from more than 50 juvenile females between October 2014 and August 2017. Pauly located information about the victims’ family members on social media accounts and used this information to coerce the victims. The coercion included threats to tell the victims’ parents and/or schools about the pictures.
One of the victims told her family about the contact and the family reported the activity to law enforcement. A federal grand jury indicted Pauly on March 13, 2018.
“Sexual predators will get information about a victim’s family and use it to pressure the victim into giving the predator what he wants,” U.S. Attorney Glassman said. “Families should report any inappropriate contact their children receive to law enforcement, and we will continue to prosecute those who exploit our youngest citizens and their families.”
Judge Rose scheduled Pauly’s sentencing for October 12, 2018. Production of child pornography is punishable by at least 15 and up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Amy M. Smith, who is prosecuting the case.
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Alleged Sinaloa Cartel Member Extradited to the U.S. from Mexico for Funneling Massive Amounts of Marijuana and Cocaine into the U.S.Read the Press Release
Alleged Sinaloa Cartel member Arturo Lozano-Mendez aka “Garza” is in federal custody following his extradition from Mexico to the United States yesterday afternoon. Lozano made his initial appearance in federal court in El Paso this afternoon.
The announcement was made by U.S. Attorney John F. Bash for the Western District of Texas; Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration (DEA), El Paso Division; Special Agent in Charge Emmerson Buie, Jr., of the FBI, El Paso Division; and Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Division.
Lozano, age 47, is one of two dozen alleged high-ranking Sinaloa Cartel leaders, including Joaquin Guzman Loera aka “El Chapo” and Ismael Zambada Garcia aka “Mayo”, indicted in April 2012 on federal racketeering charges in the Western District of Texas. According to the indictment, Lozano was in charge of Sinaloa Cartel warehouses in Juarez.
“The extradition of Arturo Lozano-Mendez shows that Mexico’s continued cooperation in targeting significant drug traffickers is critical to our mutual efforts to protect the public from the negative impact of the drug trade,” stated DEA Special Agent in Charge Williamson. “DEA will continue to vigorously pursue drug traffickers and corrupt public officials who threaten the safety of our local communities and U.S. national security and continue to bring alleged cartel leaders to justice - on both sides of the border.”
“The FBI will continue to aggressively pursue transnational criminal organizations that have posed a threat to the U.S. national security, to include the corrupt public servants who are either members or in positions of leadership in the Sinaloa Cartel, who use their position to further the illicit activity of that organization,” said FBI Special Agent in Charge Buie. “The FBI is committed to upholding the rule of law and investigating those involved in criminal activity affecting our local communities.”
“The federal charges, arrests and extraditions associated with this investigation demonstrate our committed and ongoing partnership against transnational criminal organizations,” stated ATF Special Agent in Charge Jeffrey C. Boshek, II.
Lozano is charged with one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (RICO conspiracy), one count of conspiracy to possess with the intent to distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, one count of conspiracy to import into the United States five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, one count of conspiracy to commit money laundering offenses and one count of conspiracy to possess firearms in furtherance of drug trafficking crimes.
Twenty (20) defendants, including Lozano, remain under indictment in this case. Trial is scheduled for November 2018. Upon conviction, Lozano faces up to life in federal prison.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, thousands of pounds of marijuana in cities throughout the United States. Law enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of Juarez and the local drug trafficking corridors.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Department of Justice thanks the Government of Mexico for its assistance in this case.
The DEA, FBI, and ATF, together with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), U.S. Border Patrol, U.S. Customs and Border Protection (CBP), U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office, and the Texas Department of Public Safety investigated this case. The Justice Department’s Office of International Affairs provided significant assistance in the extradition. The case is being prosecuted by Assistant U.S. Attorneys of the Western District of Texas.
Abbeville felon pleads guilty to possessing pistolRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an Abbeville man pleaded guilty Monday to illegally possessing a pistol.
Carlin Jerrid Montgomery, 38, of Abbeville, Louisiana, pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of possession of a firearm by a convicted felon. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, law enforcement agents executed a search warrant at Montgomery’s home on April 28, 2017 and found a .45-caliber pistol and ammunition. The handgun was concealed in the exterior shell of a black metal stereo tuner lying on the floor under Montgomery’s bedroom window. The defendant was convicted on June 11, 2002 for possession of crack cocaine and is not allowed to possess a firearm.
Montgomery faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of September 28, 2018.
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.
Homeland Security Investigations, U.S. Customs and Border Protection, and ATF conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
5 July 2018
Woman Who Unlawfully Climbed the Statue of Liberty Arrested for Trespassing, Interference with Government Agency Functions, and Disorderly ConductRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Major Pamela Smith, Commander, New York Field Office of the U.S. Park Police, and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of THERESE OKOUMOU on charges of trespassing, interference with government agency functions, and disorderly conduct. The Information charges that OKOUMOU climbed the base of the Statue of Liberty and resisted orders to come down, causing the evacuation of Liberty Island on the Fourth of July and posing substantial danger to NYPD officers who were required to retrieve her. OKOUMOU was arrested Wednesday, and will be presented today in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Information, the defendant staged a dangerous stunt that alarmed the public and endangered her own life and the lives of the NYPD officers who responded to the scene. While we must and do respect the rights of the people to peaceable protest, that right does not extend to breaking the law in ways that put others at risk. I commend the Park Police for the orderly evacuation of Liberty Island yesterday, and the NYPD for their bravery and effectiveness in bringing yesterday’s events to a safe conclusion.”
U.S. Park Police Major Pamela Smith said: “This incident caused disruption to thousands of visitors on one of the busiest days of the year at the Statue of Liberty. We are grateful that the matter was resolved with no one sustaining injuries or causing major damage to the monument.”
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OKOUMOU, 44, of Staten Island, New York, is charged with one count of trespassing, one count of interference with agency functions, and one count of disorderly conduct. Each charge carries a maximum penalty of six months in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brett M. Kalikow is in charge of the prosecution.
The charges contained in the Information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Waterbury Man Charged with Illegally Possessing FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on June 27, 2018, a grand jury in New Haven returned an indictment charging JOHNATHEN LOPEZ, 28, of Waterbury, with possession of a firearm by a convicted felon. LOPEZ was arrested on July 2, 2018.
As alleged in the indictment and statements made in court, on April 27, 2017, members of the Waterbury Police Department’s Street Crimes Unit arrested LOPEZ after he was found in possession of a Glock 27 .40 caliber handgun. The firearm, which had been reported stolen during a burglary in Waterbury, is connected to shootings currently under investigation in Waterbury.
The indictment alleges that, prior to April 2017, LOPEZ had been convicted in state court of felony drug and weapon offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of this charge, LOPEZ faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Waterbury Police Department’s Gang Task Force, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Natasha Freismuth.
United States Announces Settlement with Kentucky Ensuring Compliance with Voter Registration List Maintenance RequirementsRead the Press Release
The Department of Justice today announced that it recently entered into a settlement with the Commonwealth of Kentucky, the Kentucky State Board of Elections, and the Kentucky Secretary of State, resolving the Department’s claims that Kentucky was not complying with the voter registration list maintenance procedures set forth in Section 8 of the National Voter Registration Act of 1993 (NVRA). Under the terms of the settlement, Kentucky will develop and implement a general program of statewide voter list maintenance that makes a reasonable effort to remove the names of registrants who have become ineligible due to a change in residence in accordance with Section 8 of the NVRA and state law.
The NVRA includes requirements for maintaining voter registration lists in elections for federal office. One of these NVRA requirements is that states make a reasonable effort to remove registrants who have become ineligible due to having died or moved. At the same time, the NVRA has protections to ensure that eligible voters remain on the rolls, including specific procedures that states must follow before removing voters who have moved to a new jurisdiction.
The Justice Department’s investigation found that, since 2009, Kentucky has not sent statutorily-required notices to registrants under the change-of-address process contemplated by the NVRA and state law. The investigation also found that, since 2015, Kentucky has not removed registrants through this statutorily-prescribed process when the registrants have moved to a new jurisdiction without notifying election officials.
The settlement requires the Kentucky State Board of Elections to create and implement a comprehensive plan, setting forth specific list maintenance procedures to be followed in the future, in accordance with the requirements and voter protections set forth by the NVRA. Such procedures must include a plan to obtain and use change-of-address information at least once per year. The comprehensive plan must also include procedures for sending a canvass mailing this summer to identify through returned mail those registrants who may have moved, as well as public outreach practices to educate voters about the importance of updating their voter registration when they change residences. The agreement also requires reporting of various information and data relating to the State Board’s list maintenance activities. The parties will submit the settlement to a federal judge for court approval.
“The NVRA’s list maintenance procedures ensure accurate and current voter registration rolls,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division commends Kentucky for working with the Division to ensure its voter registration list accurately reflects its eligible registrants, consistent with the protections and procedures of the NVRA.”
On June 28, 2017, the Justice Department sent letters to all 44 states covered by the NVRA requesting information regarding their efforts to comply with Section 8’s list maintenance requirements. The Department opened this investigation after receiving Kentucky’s response to that letter. This settlement is the Department’s first resolution of a Section 8 matter since it sent the letters.
More information about the National Voter Registration Act and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
Tractor-Trailer Driver Admits to Transporting Illegal AliensRead the Press Release
In San Antonio this morning, 36–year-old Gerardo Javier Carreon of Laredo, TX, pleaded guilty to transporting illegal aliens, announced United States Attorney John F. Bash and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
Appearing before United States District Judge Fred Biery, Carreon pleaded guilty to one count of conspiracy to transport illegal aliens. On June 12, 2018, authorities responding to a scene in the area of Loop 410 and Broadway discovered over 50 illegal aliens in and around a semi-tractor trailer driven by Carreon.
Carreon, who remains in federal custody, faces up to ten years in federal prison. Sentencing is scheduled for October 5, 2018.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating this case. This investigation continues. Assistant United States Attorney Matt Lathrop is prosecuting this case on behalf of the Government.
Three Previously Deported Aliens Plead Guilty to Federal CrimesRead the Press Release
LEXINGTON, Ky. — Jose Alejandro Diaz -Tinoco, 35, Luis Eduardo Salto-Garcia 31, and Reynaldo Aviles- Hernandez 44, all Mexican Nationals, have each pled guilty to several federal crimes, including illegal re-entry to the United States after a previous deportation.
In the course of Diaz Tinoco’s his guilty plea, he admitted that he had previously been deported from the United States after being convicted of a felony drug trafficking offense in California. Tinoco admitted he unlawfully re-entered the United States prior to being arrested by the Kentucky State Police, on April 4, 2018, when he was in possession of $13,360 in cash. Immigration records show that Diaz-Tinoco has been deported from the United States on at least two prior occasions.
In the course of Luis Eduardo Salto-Garcia’s guilty plea, he admitted that he had previously been deported from the United States, and that he had unlawfully re-entered the United States prior to being arrested on March 1, 2018, by the Lexington Police, for unlawfully possessing a stolen firearm and a domestic violence offense. Immigration records show that Salto-Garcia has been deported from the United States on at least one prior occasion.
In the course of Reynaldo Aviles-Hernandez’s guilty plea, he admitted that he had previously been deported from the United States and had unlawfully re-entered the United States. He further admitted to using a fake United States social security card and other documents to obtain employment in Fayette County. Immigration records show that Aviles-Hernandez has been deported from the United States on at least three prior occasions.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Kristoffer Cortex, Acting Assistant Field Office Director, ICE; Chief Lawrence Weathers, Lexington Police Department; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announced the guilty pleas.
The investigations were conducted by ICE, KSP, and the Lexington Police. The United States was represented in the cases by Assistant United States Attorney Roger W. West.
Diaz-Tinoco, Salto-Garcia, Aviles-Hernandez are currently scheduled to appear for sentencing, before Chief United States District Judge Karen K. Caldwell, on DATE. Their sentences will be imposed by the Court, after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Three Illegal Aliens Sentenced for Unlawfully Re-Entering the United StatesRead the Press Release
Gulfport, Miss. – Three illegal aliens, who were arrested while being transported in the same human smuggling operation, were sentenced today by U.S. District Judge Louis Guirola, Jr. for unlawful return after removal from the United States, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Chief Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
The defendants pled guilty to the charges on April 10, 2018.
Pedro Lopez-Alvarez a/k/a Pedro Lopez Alvarez a/k/a Pedro Alvarez-Baten, 23, an illegal alien from Guatemala, was sentenced to 5 months and 3 days in federal prison.
Silvano Doroteo Morales-Ventura a/k/a Silvano Morales Ventura, 23, an illegal alien from Mexico, was sentenced to 5 months amd 3 days in federal prison.
Wilmer Antonio Rubi-Padilla a/k/a Wilmer Rubi Padilla, 27, an illegal alien from Honduras, was sentenced to 6 months in in federal prison.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter. Both drivers of the SUVs were found to be in the United States illegally and each vehicle contained eight passengers who also were illegal aliens. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS. Three of the passengers were the defendants sentenced today.
Each of the defendants was sentenced to one year of supervised release during which time each could face additional penalties if he were to unlawfully return to the United States, in addition to any other penalty. Each also will face Department of Homeland Security removal proceedings. As a result of this felony conviction, if any of the three defendants were to unlawfully return again to the United States, he could face up to 10 years in federal prison.
U.S. Attorney Hurst praised the cooperation exhibited by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Three Illegal Aliens Sentenced for Unlawfully Re-Entering United StatesRead the Press Release
Gulfport, Miss. – Three illegal aliens, who were arrested while being transported in the same human smuggling operation, were sentenced today by U.S. District Judge Louis Guirola, Jr. for unlawful return after removal from the United States, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Chief Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Domingo Lopez-Lopez, age 25, an illegal alien from Mexico; Victor Manuel Polanco-Aguilar, age 23, an illegal alien from Guatemala; and Carlos Vazquez-Hernandez a/k/a Carlos Vasquez-Hernandez, age 21, also an illegal alien from Guatemala, were each sentenced to 5 months in federal prison. Each of the men had been convicted after pleading guilty before Judge Guirola on April 10, 2018.
On February 6, 2018, a U.S. Border Patrol agent conducted a traffic stop on a Toyota Highlander Sport Utility Vehicle (SUV), displaying a Georgia license plate on Interstate 10, east bound, in Harrison County. The agent encountered the driver, Carlos Manuel Legra-Ramirez, age 43, a citizen of Cuba and a Legal Permanent Resident of the United States living in Georgia. After interviewing the passengers in the vehicle, all claimed to be citizens and nationals of other countries illegally present in the United States. The driver, all passengers, and the vehicle were arrested and transported to the Gulfport Border Patrol Station. Agents determined that the passengers were being transported from Texas to Florida and Georgia, and that three defendants sentenced today had been removed from the United States and had unlawfully returned.
On June 1, 2018, Legra-Ramirez, pled guilty to the crime of conspiracy to transport illegal aliens within the United States and is scheduled to be sentenced by U.S. District Judge Sul Ozerden on September 7, 2018. Legra-Ramirez faces a potential maximum 10 years imprisonment, not more than 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. He also will be subject to immigration removal proceedings.
U.S. Attorney Hurst praised the cooperation exhibited by Homeland Security Investigations and the United States Border Patrol. Assistant United States Attorney Stan Harris prosecuted the case.
Tahlequah Man Sentenced to 87 Months in Prison for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Trent Shores announced today that District Judge John E. Dowdell sentenced Jeremy Batey, 44, of Tahlequah, to serve 87 months in federal prison for Attempted Receipt of Child Pornography. Batey must also pay a special monetary assessment totaling $100. After release from prison, Batey must serve ten years of supervised release.
Batey requested a female minor to send sexually explicit pictures of herself using an online computer app to his cell phone.
United States Attorney Shores stated, “Mr. Batey is a predator who attempted to obtain sexually explicit images of a 14 year old girl. I applaud the hard work of state and federal law enforcement, including the Tulsa Police Department and the Federal Bureau of Investigation, in order to keep our children safe.”
The prosecution resulted from an investigation conducted by the Federal Bureau of Investigation and the Tulsa Police Department. Assistant United States Attorneys Jeffrey A. Gallant and Christopher J. Nassar handled the prosecution of this case.
South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Brian Cardona, age 21, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for distribution of over 50 grams of methamphetamine, announced U.S. Attorney Kirsch.
Cardona was sentenced to 78 months imprisonment followed by 4 years of supervised release.
According to documents in this case, Cardona and his co-defendant Anthony Francis met with and sold seven ounces of methamphetamine to an undercover officer. They also had discussions with the officer about additional sales that could be made. Mr. Francis has pled guilty in this case and is scheduled to sentenced on September 27, 2018.
This case was investigated by the FBI and DEA, with assistance from the Elkhart Interdiction Unit and South Bend Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Semmes Resident Receives Five Years on Gun ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Brandon Earl Ashley, 30, a resident of Semmes, Alabama, to 60 months imprisonment for possessing a firearm in furtherance of a drug trafficking crime. The judge ordered that Ashley undergo five years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, and receive substance abuse testing and treatment.
Ashley is a convicted felon with a criminal history involving drugs. For instance, on August 22, 2013 Ashley was convicted of Possession of a Controlled Substance in the Circuit Court of Mobile County, Alabama. Federal law prohibits convicted felons such as Ashley from knowingly possessing a firearm.
Ashley admitted certain facts as part of his guilty plea. According to those documents, on August 22, 2017, Spanish Fort Police Department Officer Shane Parker was on patrol traveling west on Battleship Parkway. He saw a vehicle driving over 80 mph eastward on the parkway. Parker tuned around to initiate a traffic stop for speeding. Parker noticed the vehicle turn into Keeton Corrections. The vehicle appeared to Parker as if it were trying to elude the stop due to the vehicle’s speed when it crossed over the westbound traffic lanes. Parker saw the vehicle park abruptly. When Parker stopped near the vehicle, the driver was walking away from it. Parker told the driver to return to his vehicle, which he did.
Parker approached the vehicle and smelled marijuana emanating from the vehicle. Ashley was the driver and sole occupant of the vehicle. Parker searched the vehicle for marijuana. While searching the driver's side area, Parker found a loaded Taurus 9mm pistol under the seat. When Parker opened the back doors of the vehicle, he saw numerous bags of marijuana and a small bag of pills in plain view. Ashley possessed approximately $2,420.01 in cash. In the vehicle, police found a digital scale, multiple cell phones, and drugs, namely, cocaine, hydrocodone, oxycodone, amphetamine, alprazolam, fentanyl, marijuana, and methorphan. Police later determined that the Taurus firearm was stolen.
On December 27, 2017, a federal grand jury for the Southern District of Alabama returned a five-count indictment against Ashley, charging him with one count of being a felon in possession of a firearm, three counts of possession with intent to distribute a controlled substance, and one count of possessing a firearm in furtherance of a drug trafficking crime. On March 22, 2018, Ashley pleaded guilty before Chief Judge DuBose to possessing the Taurus pistol in furtherance of the crime of possession with intent to distribute controlled substances.The Federal Bureau of Investigation and the Spanish Fort Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Semmes Resident Receives Five Years on Gun ChargeRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Brandon Earl Ashley, 30, a resident of Semmes, Alabama, to 60 months imprisonment for possessing a firearm in furtherance of a drug trafficking crime. The judge ordered that Ashley undergo five years of supervised release after finishing his term of imprisonment, pay a $100 mandatory special assessment, and receive substance abuse testing and treatment.
Ashley is a convicted felon with a criminal history involving drugs. For instance, on August 22, 2013 Ashley was convicted of Possession of a Controlled Substance in the Circuit Court of Mobile County, Alabama. Federal law prohibits convicted felons such as Ashley from knowingly possessing a firearm.
Ashley admitted certain facts as part of his guilty plea. According to those documents, on August 22, 2017, Spanish Fort Police Department Officer Shane Parker was on patrol traveling west on Battleship Parkway. He saw a vehicle driving over 80 mph eastward on the parkway. Parker tuned around to initiate a traffic stop for speeding. Parker noticed the vehicle turn into Keeton Corrections. The vehicle appeared to Parker as if it were trying to elude the stop due to the vehicle’s speed when it crossed over the westbound traffic lanes. Parker saw the vehicle park abruptly. When Parker stopped near the vehicle, the driver was walking away from it. Parker told the driver to return to his vehicle, which he did.
Parker approached the vehicle and smelled marijuana emanating from the vehicle. Ashley was the driver and sole occupant of the vehicle. Parker searched the vehicle for marijuana. While searching the driver's side area, Parker found a loaded Taurus 9mm pistol under the seat. When Parker opened the back doors of the vehicle, he saw numerous bags of marijuana and a small bag of pills in plain view. Ashley possessed approximately $2,420.01 in cash. In the vehicle, police found a digital scale, multiple cell phones, and drugs, namely, cocaine, hydrocodone, oxycodone, amphetamine, alprazolam, fentanyl, marijuana, and methorphan. Police later determined that the Taurus firearm was stolen.
On December 27, 2017, a federal grand jury for the Southern District of Alabama returned a five-count indictment against Ashley, charging him with one count of being a felon in possession of a firearm, three counts of possession with intent to distribute a controlled substance, and one count of possessing a firearm in furtherance of a drug trafficking crime. On March 22, 2018, Ashley pleaded guilty before Chief Judge DuBose to possessing the Taurus pistol in furtherance of the crime of possession with intent to distribute controlled substances.
The Federal Bureau of Investigation and the Spanish Fort Police Department investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Philadelphia, Pennsylvania, Man Sentenced to 96 Months, $1.69M for Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Manuel Emilio Payano, age 42, of Philadelphia, Pennsylvania was sentenced to 96 months imprisonment and 3 years supervised release for Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The court entered an order imposing a money judgment in the amount of $1,697,400.00. The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about October 16, 2017, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Because of the diligent efforts of the Oklahoma Highway Patrol and the DEA, hundreds of thousands of dosage units of illegal narcotics were prevented from reaching their intended destination. These law enforcement agents disrupted the unlawful and dangerous business of a drug trafficking organization. I commend these agents and the members of this office for their work and continued dedication to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
National Health Care Fraud Takedown Results in Charges Against 601 Individuals Responsible for over $2 Billion in Fraud LossesRead the Press Release
Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing more than 13 million illegal dosages of opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in the arrests. In addition, HHS announced that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
United States Attorney for the District of South Dakota, Ron Parsons, announced that two of the people indicted as part of the 2018 Health Care Fraud Takedown were charged in the District of South Dakota:
Robert Fox, Jr., 35 of Wagner, South Dakota, was indicted in the District of South Dakota on June 6, 2018, on two counts of obtaining controlled substances by fraud. The charges allege that Fox acquired and obtained and attempted to acquire and obtain hydrocodone by misrepresentation, fraud, forgery, deception, and subterfuge, and that Fox has a previous conviction for the same offense. This case is being handled by Assistant U.S. Attorney Ann Hoffman.
Kristin Deboer, 49 of Caldwell, Idaho, was indicted in the District of South Dakota on June 25, 2018, on one count of Wire Fraud. The charges allege that Deboer fraudulently conducted a wire transfer from a banking account belonging to the Oglala Sioux Tribe, to an account belonging to All Around Sports, L.L.C., at Idaho Central Credit Union in the State and District of Idaho. The amount of the wire transfer was $54,000. This case is being handled by Assistant U.S. Attorney Jeremy R. Jehangiri.
The national enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.
The charges announced aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings. The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims. Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.
The cases announced are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Additional documents related to this announcement are available here: https://www.justice.gov/opa/documents-and-resources-june-28-2018
This operation also highlights the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud.
Montgomery County Man Pleads Guilty to Distribution of Fentanyl-Laced DrugsRead the Press Release
Greenbelt, Maryland – Leandro Acevedo Lozada, age 33, of Gaithersburg, Maryland, pleaded guilty today to: conspiracy to distribute fentanyl; possession of acetyl fentanyl and cocaine; and being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Scott Hoernke of the Drug Enforcement Administration – Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from January 2017 through February 2017, Lozada conspired to distribute acetyl fentanyl and cocaine. Lozada distributed the drugs to street dealers and drug users, including co-defendant Bradley Seabolt. Although Lozada was not certain of the exact chemical compounds contained in opioids he sold, the appearance and strength of the drugs caused Lozada to suspect it was fentanyl. Because the opioids Lozada sold were so strong, he used powdered sugar to dilute them, in an effort to both expand its volume and his profit, and to make the drugs safer for his customers.
On January 11, 2017, Seabolt sold drugs containing both acetyl fentanyl and fentanyl to an individual in Montgomery County, who subsequently died from ingesting the drugs. Seabolt had obtained the drugs from Lozada. The Office of the Chief Medical Examiner determined that the victim died from fentanyl, acetyl fentanyl, and cocaine intoxication.
On February 17, 2017, a search warrant was executed at residences used by Lozada in Damascus and Gaithersburg. From the residence in Damascus, law enforcement recovered: 147 grams of a substance that contained both acetyl fentanyl and fentanyl; approximately 23 grams of cocaine; a bag of powdered sugar used by Lozada as a cutting agent for his opioids; $4,452 in cash; and a digital scale. From the residence in Gaithersburg, law enforcement recovered a .45-caliber handgun belonging to Lozada. Lozada had a previous felony conviction, which prohibited him from legally possessing the firearm.
Bradley Seabolt, age 30, of Gaithersburg, Maryland, pleaded guilty to conspiracy to distribute controlled substances on December 19, 2017, and is awaiting sentencing.
Lozada and the government have agreed that if the Court accepts the plea agreement, Lozada will be sentenced to at least 10 years, but no more than 20 years, in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 12, 2018 at 1:00 p.m.
United States Attorney Robert K. Hur commended the DEA and the Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Gregory Bernstein, who is prosecuting the case.