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3 July 2018
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs, and More Than $23.6 MillionRead the Press Release
SIOUX FALLS, SD – United States Attorney Ron Parsons announced that John Edward Monette, 49, of Sioux Falls, South Dakota, has been indicted as part of a national undercover operation targeting Darknet vendors. Monette was indicted on May 8, 2018, for Conspiracy to Distribute a Controlled Substance.
The Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
John Edward Monette was identified by HSI New York during an undercover operation as having exchanged Bitcoin for cash on numerous occasions. Between May 31, 2017, and October 24, 2017, HSI New York conducted 11 undercover Bitcoin for U.S. currency transactions with Monette that totaled $19,000. Monette was also identified as the intended recipient of numerous international mail seizures containing MDMA.
MDMA (3, 4-methylenedioxymethamphetimine, also known as ecstasy) is an illegal synthetic drug that causes both hallucinogenic and stimulant effects. Most MDMA users are teenagers or young adults. MDMA is a Schedule I substance under the Controlled Substances Act. Schedule I substances, which include heroin and LSD, have a high potential for abuse and serve no legitimate medical purpose.
“Criminals believing that their illicit activities on the so-called Darknet will elude the attention of law enforcement had better think again,” said U.S. Attorney Parsons. “This operation is just the beginning.”
This extensive Darknet operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
- Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
In addition to Monette, others who have been charged federally, include:
- Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
- Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
- Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
- Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
- In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.
The charges and allegations contained in an indictment are merely accusations and defendants are considered innocent unless and until proven guilty.
Family Practice Doctor Pays $360,000 to Settle False Claims Act AllegationsRead the Press Release
PITTSBURGH – Brent E. Clark, M.D., a former family practice doctor in Pittsburgh, agreed to pay $360,000 to the United States to settle claims that he violated the False Claims Act by submitting or causing to be submitted false claims to Medicare and Medicaid for medically unnecessary and unreasonable services, United States Attorney Scott W. Brady announced today.
Between February 2015 and February 2017, Clark billed Medicare and Medicaid for medically unreasonable and unnecessary office visits and procedures and falsified records to support the billings. The settlement follows Clark’s earlier guilty plea and sentencing on related criminal charges.
Assistant United States Attorney Rachael L. Mamula handled the investigation that led to this civil settlement on behalf of the United States.
United States Attorney Brady commended the Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation for conducting the investigation.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault by Strangulation and Suffocation, Child Abuse, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Carl Iron Hawk, age 38, was indicted on June 19, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 27, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 24, 2018, Iron Hawk assaulted his intimate partner by strangulation, suffocation, and with a dangerous weapon, which caused serious bodily injury to the victim. The Indictment further alleges that Iron Hawk abused two victims who had not attained the age of seven (7) years old.
The charges are merely accusations and Iron Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Iron Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set.
Disbarred Attorney Admits Defrauding Former Clients and Law Firm InvestorsRead the Press Release
NEWS RELEASE SUMMARY – July 3, 2018
SAN DIEGO – Clayton Marlow Anderson, Jr., a former attorney based in La Mesa, California before his disbarment in 2015, pled guilty today to defrauding investors and clients of over a million dollars. Anderson also admitted to money laundering in connection with his fraud scheme, known alternatively as the “Clayton M. Anderson Monthly Income Plan”, “Anderson Plan”, or “A-Plan.”
During a hearing this afternoon before U.S. Magistrate Judge Karen S. Crawford, Anderson acknowledged that he created “A-Plan” to solicit loans to finance the costs and fees related to construction defect lawsuits brought by his law firm. Anderson acknowledged that from 2005 until 2014, he solicited unsecured loans from six individuals and paid them high rates of interest between 8% and 13% each year.
As part of his plea, Anderson admitted that in 2010, owners of the Jefferson Pointe Professional Corporation (“JPPC”) hired Anderson to represent them in a construction defect lawsuit against the builders of their office park in Murrieta, California. Anderson eventually negotiated a $1.82 million settlement for JPPC in October 2012. Instead of paying his clients their rightful share of the legal settlement, however, Anderson sent them a letter on behalf of “A-Plan Investment Services, Inc.” promising JPPC a 13% annual return on their “investment.” At today’s hearing, Anderson admitted that his letter contained multiple false claims, including that A-Plan had over $1 million under management and that A-Plan was the beneficiary of a $4.4 million insurance policy on his life. Anderson admitted his clients invested $800,000 of their legal settlement into “A-Plan” in reliance on his false claims, and that he engaged in other fraudulent conduct toward his clients.
Anderson specifically admitted that on February 19, 2013, he made a $182,549.69 bank transfer to conceal that he had already taken his client’s settlement money out of his client trust account without his client’s knowledge or consent, and to hide from his clients the precarious financial situation of both his law firm and “A-Plan.” Anderson also admitted that he engaged in a money laundering transaction on January 2, 2013, when he transferred over $30,000 in money derived from his fraud scheme into a retirement account under his control.
In addition to these specific transactions alleged in the Information filed against him, Anderson admitted that his fraud caused his clients to lose over $600,000, and that the six other A-Plan participants lost over $700,000 in money loaned to him. Anderson also admitted misrepresenting and concealing a variety of information from the six other A-Plan participants, including his law firm’s bankruptcy, his decision to forfeit all outstanding legal settlement money to the bankruptcy trustee, and his suspension and eventual disbarment by the California State Bar in January 2015. Anderson admitted that if A-Plan’s participants had been aware of those facts, they would not have continued to participate in A-Plan, and that his misrepresentations and omissions prevented them from recouping their investments or at the very least mitigating their losses – totaling $1,362,257.50.
“Clayton Anderson put his own financial interests above those of his clients, to whom he owed both legal and ethical duties,” said U.S. Attorney Adam L. Braverman. “This prosecution demonstrates the commitment of the United States Attorney’s Office to protecting the rights of investors – especially those investing with their own attorney – to candid, truthful information.”
“The FBI will investigate and bring those to justice who breach the attorney-client trust relationship by committing fraud and deceit,” commented FBI Special Agent in Charge John Brown. “Today, the Defendant Clayton Anderson, Jr., a former attorney, admitted to his A-Plan fraud scheme and will face justice for those actions.”
“As an attorney, Anderson had a fiduciary responsibility to safeguard his client’s money. Anderson violated his ethical duty by treating his clients’ trust account as a piggy bank,” said R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation. “IRS Criminal Investigation will continue to protect the integrity of attorney client trust accounts, and ensure that attorneys who do not follow the duties imposed on them by law are held accountable.”
As a part of his plea agreement, Anderson agreed to pay over $1.5 million in restitution to the victims of his crimes. Anderson faces up to 30 years in federal prison and a fine of up to $2,974,515.00 at his sentencing hearing before the Hon. Cathy Ann Bencivengo on September 28, 2018.
DEFENDANT Case Number 18-cr-3075-CAB
Clayton Marlow Anderson, Jr. Mira Loma, CA.
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment, $2,724,515 fine, restitution
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
Deadwood Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Deadwood, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Mamola, age 41, was sentenced on June 29, 2018, to 96 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mamola was charged on January 24, 2017. The conviction stems from Mamola conspiring with another person to distribute more than 50 grams of methamphetamine near Deadwood.
This case was investigated by the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Mamola was immediately turned over to the custody of the U.S. Marshals Service.
Columbus Man Sentenced to 170 Years for Convictions on Federal Child Pornography and Alien Transporting ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, New Mexico State Police Chief Pete Kassetas, and Deputy Chief Justin Dunivan of the Las Cruces Police Department announced that a resident of Columbus, N.M., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M., to 170 years of imprisonment for convictions on child pornography and alien transporting charges in two separate cases.
U.S. District Judge Robert C. Brack sentenced Samuel Elliott, 34, to 170 years of imprisonment in the first case for his conviction on three counts of production of child pornography and four counts of possession of child pornography. Elliott also was ordered to pay $210,012 in restitution to each of the three children victimized by Elliott’s child pornography production scheme. Judge Brack sentenced Elliott to 15 months of imprisonment in the second case for his conviction on an alien transporting charge, to be served concurrent to the sentence imposed on the child pornography charges.
In announcing the sentence, U.S. Attorney John C. Anderson commended the exemplary collaborative investigative efforts of HSI, the New Mexico State Police and the Las Cruces Police Department for the investigation leading to Elliott’s conviction and for rescuing his victims. The U.S. Attorney added, “The victims in cases like this one are children who cannot protect themselves from harm. As the result of the sentence imposed, this sexual predator will never again exploit another child. His sentence should send a forceful message that law enforcement in New Mexico is committed to the protection of our children and will vigorously investigate and prosecute predators who exploit and abuse them.”
“Yesterday’s 170-year sentencing is an example of the U.S. government’s assurance that individuals will be held accountable for heinous acts committed against children,” said Jack P. Staton, Special Agent in Charge of HSI El Paso. “HSI and our law enforcement partners stand firm in our commitment to investigate and prosecute criminals whose heinous acts victimize and scar children for life.”
“I’m proud of the men and women of the New Mexico State Police and their dedication to keeping the children of New Mexico safe,” said New Mexico State Police Chief Pete Kassetas. “I’m pleased that justice was served and this predator can no longer harm our kids.”
“The Las Cruces Police Department is honored to work alongside our counterparts, from local and federal agencies, to help protect our children from offenders that are poisoning our communities,” said Las Cruces Police Deputy Chief Justin Dunivan. “We believe our actions will have a significant impact and ensure that the defendant never harms another child.”
In the alien transporting case, Elliott and his brother Robert Steven Elliott, II, 35, also a resident of Columbus, were charged by criminal complaint on Sept. 4, 2013, with conspiring to transport illegal aliens on Aug. 28, 2013, in Luna County, N.M. The two were indicted on the same charge on Dec. 11, 2013. Robert Steven Elliott pled guilty to the indictment charging him with conspiring to transport illegal aliens on Jan. 22, 2014, and was sentenced on Oct. 1, 2014, to time served followed by three years of supervised release. Elliott pled guilty to the same charges on March 20, 2014.
In the child pornography case, Elliott was charged in an eight-count indictment with production and possession of child pornography. Counts 1 through 3 of the indictment alleged that between Dec. 2012 and July 2013, Elliott used three young children to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. According to the indictment, two of the children were between one and five years of age and the third child was over the age of five years. The remaining five counts alleged that Elliott possessed child pornography in July 2013. The indictment asserted that Elliott committed all eight crimes in Luna County, N.M. A superseding indictment alleging the same charges was filed in July 2015.
On June 26, 2018, Elliott pled guilty to three counts of producing visual depictions of minors engaged in sexually explicit conduct and four counts of possessing material containing images of child pornography. In his plea agreement, Elliott admitted using a video camera to record a video of himself engaging in sexually explicit conduct with a child between one and five years of age. Elliott also admitted using a video camera to produce sexually explicit visual depictions of a sleeping child between five and eleven years of age. Elliott admitted committing these two crimes between Dec. 2012 and July 2013. Elliott also admitted that on Dec. 10, 2012, he used his iPhone to produce sexually explicit depictions of a third child who was between one and five years of age.
In his plea agreement, Elliott also acknowledged that in July 2013, the New Mexico State Police executed a search warrant at his residence and seized his iPhone, a desktop computer and a hard-drive. He also acknowledged that HSI executed a search warrant on his Dropbox online storage account. Elliott acknowledged that forensic examinations recovered thousands of images of child pornography from his iPhone; 48 images of child pornography from his hard-drive, approximately 300 images of child pornography from his desktop computer, and 72 videos of child pornography from his Dropbox online storage account.
The case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Las Cruces Police Department, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case was prosecuted by Assistant U.S. Attorneys Alexander B. Shapiro and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office 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 more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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 NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Canton man indicted on fentanyl and firearms chargesRead the Press Release
A Canton man was indicted on fentanyl and firearms charges.
Michael J. Meadows, 48, was indicted on one count of possession with intent to distribute fentanyl, one count of possession of a firearm in furtherance of drug trafficking and one count of being a felon in possession of firearms and ammunition.
Meadows on Jan. 18 possessed at least 40 grams of fentanyl, a Springfield .45-caliber pistol and ammunition. Meadows was prohibited from having firearms or ammunition because of prior convictions, including cocaine possession, having a weapon under disability and aiding and abetting distribution of crack cocaine, according to the indictment.
This case was investigated by the Food and Drug Administration’s Office of Criminal Investigations. It is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Bank Manager Charged with Embezzling $850KRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced a federal grand jury in New Haven returned an indictment yesterday alleging that STEPHEN CARBONELLA, 59, of Hamden, embezzled funds from his employer, Webster Bank Corporation, where he served as bank manager of the Orange branch office.
CARBONELLA was arrested this morning. He appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty and was released on a $200,000 bond.
According to the indictment and statements made in court, between approximately 2003 and 2017, CARBONELLA withdrew more than $850,000 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, and used the embezzled funds for his own purposes. He also took steps to conceal his misconduct, including by forging signatures and falsifying documents.
The indictment charges CARBONELLA with one count of embezzlement by a bank officer or employee, an offense that carries a maximum term of imprisonment of 30 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Attorney General Jeff Sessions Rescinds 24 Guidance DocumentsRead the Press Release
Attorney General Jeff Sessions today announced that, consistent with his November 2017 memorandum prohibiting the Department from making rules without following the procedures required by Congress, he is rescinding 24 guidance documents that were unnecessary, outdated, inconsistent with existing law, or otherwise improper.
“The American people deserve to have their voices heard and a government that is accountable to them. When issuing regulations, federal agencies must abide by constitutional principles and follow the rules set forth by Congress and the President. In previous administrations, however, agencies often tried to impose new rules on the American people without any public notice or comment period, simply by sending a letter or posting a guidance document on a website. That’s wrong, and it’s not good government.
“In the Trump administration, we are restoring the rule of law. That’s why in November I banned this practice at the Department and we began rescinding guidance documents that were issued improperly or that were simply inconsistent with current law.
“Today we are rescinding 24 more and continuing to put an end to unnecessary or improper rulemaking.”
In February 2017, President Donald Trump issued Executive Order 13777, which calls for agencies to establish Regulatory Reform Task Forces, chaired by a Regulatory Reform Officer, to identify existing regulations for potential repeal, replacement, or modification. The Department of Justice Task Force is chaired by Acting Associate Attorney General Jesse Panuccio.
In November 2017, the Attorney General issued a memorandum prohibiting Department of Justice (DOJ) components from using guidance documents to circumvent the rulemaking process and directed components to identify guidance documents that should be repealed, replaced, or modified.
The Task Force identified 25 guidance documents for repeal in December 2017 and has identified 24 more documents to repeal this month. The Task Force is continuing its review of existing guidance documents to repeal, replace, or modify.
The list of 24 guidance documents that DOJ has withdrawn in 2018 is as follows:
- March 17, 2011, OJJDP Memorandum re Status Offenders and the JJDPA.
- October 20, 2010 OJJDP Memorandum re Status Offenders and the JDDPA.
- June 17, 2014, Revised Guidance on Jail Removal and Separation Core Requirements.
- Disaggregating MIP Data from DSO and/or Jail Removal Violations: OJJDP Guidance for States, 2011.
- OJJDP Policy Guidance for Nonsecure Custody of Juveniles in Adult Jails and Lockups; Notice of Final Policy.
- OJJDP Guidance Manual: Audit of Compliance Monitoring Systems.
- OJJDP Disproportionate Minority Contact Technical Assistance Manual, Fourth Edition, 2009.
- BJA State Criminal Alien Assistance Program Guidelines, 2016.
- NIJ April 6, 2016, Dear Colleague Letter regarding additional topics and research questions of high priority and particular interest to the NIJ as part of its Comprehensive School Safety Initiative.
- Looking for the Best Mortgage, December 14, 2010.
- FRB: Putting Your Home on the Loan Line is Risky Business, August 6, 2015.
- Federal Protections Against National Origin Discrimination, April 30, 2006.
- Look at the Facts, Not at the Faces: Your Guide to Fair Employment, Approx. July 2009.
- Refugees and Asylees Have the Right to Work, May 2011.
- Language Assistance Self-Assessment and Planning Tool for Recipients of Federal Financial Assistance, on or before February 12, 2003.
- FAQs About the Protection of Limited English Proficiency (LEP) Individuals under Title VI of the Civil Rights Act of 1964 and Title VI Regulations, March 1, 2011.
- Draft Language Access Planning and Technical Assistance Tool for Courts, December 18, 2012.
- December 2, 2011 Dear Colleague Letter Regarding the Use of Race by Educational Institutions.
- 2011 Guidance on the Voluntary Use of Race to Achieve Diversity in Postsecondary Education dated December 2, 2011.
- 2011 Guidance on the Voluntary Use of Race to Achieve Diversity and Avoid Racial Isolation in Elementary and Secondary Schools dated December 2, 2011.
- September 27, 2013 Dear Colleague Letter on the Voluntary Use of Race to Achieve Diversity in Higher Education After Fisher v. University of Texas at Austin [Fisher I].
- September 27, 2013 Questions and Answers About Fisher v. University of Texas at Austin [Fisher I].
- May 6, 2014 Dear Colleague Letter on the Supreme Court Ruling in Schuette v. Coalition to Defend Affirmative Action.
- September 30, 2016 Question and Answers About Fisher v. University of Texas at Austin [Fisher II].
Attorney General Jeff Sessions Announces Bradley Weinsheimer to Replace Departing Associate Deputy Attorney General Scott SchoolsRead the Press Release
Today, Attorney General Jeff Sessions announced that he will be appointing Bradley Weinsheimer as Acting Associate Deputy Attorney General for the U.S. Department of Justice. Weinsheimer will replace Scott Schools, who is leaving on July 6th to take a position in the private sector after close to two decades of service in the Department of Justice.
Weinsheimer will began serving as Acting Associate Deputy Attorney General upon Schools’ departure. In this position he will have no role in overseeing the Special Counsel.
“Scott Schools has been a fabulous lawyer for the Department of Justice for close to twenty years, rising through the ranks at the Department to become our most senior career attorney,” said Attorney General Sessions. “He has served with distinction in several positions in the Department, including as an Assistant U.S. Attorney, the U.S. Attorney for South Carolina and the Northern District of California, and as an Associate Deputy Attorney General. Scott has provided invaluable leadership and counsel in his years at the Department, and his service is an example to all. He will be greatly missed, and I wish him the best in his future endeavors.”
Weinsheimer has been at the Department of Justice for 27 years, having been appointed as an Assistant U.S. Attorney in DC in 1991, where he held that position for 20 years. At the United States Attorney’s Office, he tried dozens of cases, including homicides, drug and violent crime conspiracies, and public corruption and bank fraud cases. He held numerous supervisory positions, including twice serving as the Chief of the Superior Court Division.
From June 2011 until March 2016, he served as the Deputy Counsel in Office of Professional Responsibility (OPR), and since March 2016 have worked in the National Security Division, where he has served as the Chief of Staff and Director of Risk Management and Senior Counsel, his current position.
Weinsheimer has received numerous awards, including two Executive Office for United States Attorneys’ Director’s awards for superior management and administration, as well as the Attorney General’s Claudia Flynn Award for Professional Responsibility.
Since 2006, he has been on the adjunct faculty of George Washington University Law School, where he teaches trial advocacy and criminal practice.
He is a 1985 graduate of Marquette University and a 1989 graduate of the University of Virginia law school.Alabama Woman Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
COLUMBUS: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that a guilty plea was entered on July 3, 2018, in front of United States District Judge Clay D. Land by 64 year old Darlene Corbett of Phenix City, Alabama, to one count of Conspiracy to Commit Wire Fraud.
Beginning on April 30, 2015, and continuing to September 21, 2016, Darlene Corbett embezzled over $950,000 from her employer while working as the Chief Financial Officer (CFO) of The Grand Reserve Columbus, an entity owned by her stepson. Of this amount, it was discovered that over $53,000 in unauthorized checks and almost $700,000 in unauthorized wire transfers went directly to a third party. These disbursements were sometimes disguised as payments for work performed for the third party though this person had no affiliation with the Grand Reserve Columbus.
Initially, Ms. Corbett maintained that the transactions were simply repayments of cash loans that the third party had given to Ms. Corbett to help finance construction projects of The Grand Reserve Columbus. Both Ms. Corbett and the third party maintained that the source of these loans were casino winnings of the third party.
In her signed, written plea agreement filed with the court, Ms. Corbett admitted that this story was not true and she had been induced to steal from her employer by the third party, who promised a future financial windfall to Ms. Corbett stemming from a pending medical malpractice settlement, a pending estate settlement, and other schemes. She also admitted to giving the third party a considerable amount of her personal savings during the pendency of the conspiracy.
Darlene Corbett is facing up to 20 years imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. She is also jointly and severally liable for $956,918.50 in restitution.
“One of the missions of the United States Attorney’s Office is to bring to justice those who choose to defraud the citizens of the Middle District of Georgia. I want to thank the Federal Bureau of Investigation for their fine work on this matter,” said United States Attorney Peeler.
Sentencing in the case is scheduled for October 30, 2018 at 9:30 am.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
A Message from the Attorney General on Independence DayRead the Press Release
July 4, 2018
Colleagues—
Two-hundred forty-two years ago today, the Second Continental Congress declared independence from Great Britain. Thirteen colonies became “one people” with “separate and equal station” to the nations of the world.
It was a bold experiment whose outcome was uncertain. But today we see that it has proven the most successful political experiment in world history.
That success has been due in no small measure to the dedicated and principled men and women who have served in our legal system over the centuries.
Our Founding document states clearly the purposes of government and it gives us a standard by which to measure our success. “Governments are instituted” to secure and protect the God-given, inalienable rights of their citizens in order to enable their “safety and happiness.”
That is our work every day. We are servants of the people.
And so—whether you’re a litigator in court fighting for civil rights, an investigator finding evidence of crime, law enforcement officers protecting your community, or you provide support to the women and men performing these crucial functions—you play a valuable role in this noble mission. Indeed, I believe it is the highest secular calling that there is.
I am grateful for your contribution to the mission of the Department of Justice, and I want to wish you all a very Happy Independence Day.
Jeff Sessions
Attorney General
2 July 2018
Wheeling woman sentenced for lying to the US MarshalsRead the Press Release
WHEELING, WEST VIRGINIA – Melinda Ray McCardle, of Wheeling, West Virginia, was sentenced today to three years probation for making a false statement, United States Attorney Bill Powell announced.
McCardle, age 29, pled guilty to one count of “False Statement to a Federal Agent” in April 2018. McCardle admitted to lying to a Deputy U.S. Marshal about the whereabouts of Deandre Davis, a fugitive wanted for murder. The crime occurred in August 2017 in Brooke County, West Virginia.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service, the Mountain State Fugitive Task Force, and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Upshur County man sentenced for his role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Moriarty, of Buckhannon, West Virginia, was sentenced today to 18 months incarceration for distributing oxycodone, United States Attorney Bill Powell announced.
Moriarty, age 25, pled guilty to “Distribution of Oxycodone” in January 2018. Moriarty admitted to selling oxycodone in June 2015 in Upshur County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation, which was initiated as an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The Task Force consists of the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
Senior U.S. District Judge Irene M. Keeley presided.United States Files Civil Complaint against Two Companies for Environmental Cleanup Cost of Nassau County Superfund SiteRead the Press Release
The United States filed a civil complaint today in federal court in Brooklyn against IMC Eastern Corporation (“IMC”) and Island Transportation Corporation (“ITC”), seeking to recover the costs associated with the investigation and cleanup of groundwater contamination at the New Cassel/Hicksville Groundwater Contamination Superfund Site (“the Site”) in the towns of Hempstead, North Hempstead and Oyster Bay, in Nassau County, New York. The Site is approximately 6.5 square miles and includes residential, commercial and industrial areas.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator, United States Environmental Protection Agency, Region 2 (EPA), announced the filing.
“Maintaining the safety of public water supply wells is essential to the health and well-being of our communities,” stated United States Attorney Donoghue. “Today’s filing serves as a warning to those who pollute our environment but refuse to take financial responsibility for their actions. This Office will seek the recovery of costs, and civil monetary penalties where appropriate, from those who cause or contribute to environmental contamination.”
“Superfund is a cornerstone of EPA’s core mission. This action is necessary to advance cleanup efforts and protect public health,” stated EPA Regional Administrator Lopez. “The Superfund program is intended to make sure that those who contributed to contamination help pay for its cleanup. Simply stated, the complaint will help EPA seek reimbursement from the responsible parties for the taxpayer money it spent investigating the site.”
According to the complaint, IMC and ITC operated facilities within the New Cassel Industrial Area, an approximately 170-acre industrial and commercial area located north (hydrologically upgradient) of the part of the Site designated by EPA as Operable Unit 1 (OU1). Specifically, IMC was a tenant at 570 Main Street, and ITC was a tenant at 299 Main Street, both located in Westbury, New York.
As alleged, IMC and ITC used hazardous substances called volatile organic compounds (VOCs) in connection with their businesses. These hazardous substances, which include tetrachloroethylene (PCE), trichloroethylene (TCE), and 1,1,1-trichloroethane (1,1,1-TCA), were released at IMC’s and ITC’s facilities and have migrated south (hydrologically downgradient) of these facilities, impacting Long Island’s sole source drinking water aquifer. Exposure to high levels of VOCs such as PCE, TCE, and 1,1,1-TCA can cause a variety of adverse human health effects, such as damage to the nervous system, liver, kidneys, and reproductive system. VOCs may also be harmful to unborn children and are considered possible carcinogens. Consistent with the Safe Drinking Water Act that protects public drinking water supplies throughout the nation, the public water suppliers in the area of the Site monitor water quality regularly and have previously installed treatment systems to remove VOCs from groundwater prior to distribution to the public.
From 1953 through March 1992, IMC manufactured and sold motors and air movers, and used PCE, TCE, and 1,1,1-TCA in its manufacturing processes. Soil and sediment sampling conducted in 1993, and groundwater sampling conducted in 1998 and 1999, each revealed VOC contamination, including PCE, TCE, and 1,1,1-TCA, at the 570 Main Street property. From at least 1971 to 1979, ITC used its facility to wash and repair its trucks and to refuel them with gasoline. ITC used TCE as part of its truck maintenance activities. Groundwater sampling conducted in 2000, and soil sampling conducted in 2001, each revealed TCE contamination at the 299 Main Street property.
According to the complaint, contamination from defendants’ respective properties contributed to the groundwater contamination at the OU1 portion of the Site.
The complaint asserts claims under the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as the Superfund statute. The Superfund statute protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s high-priority hazardous sites and has responded to environmental emergencies, oil spills and natural disasters.
The government’s case is being handled by the Office’s Civil Division. Assistant United States Attorney Alex S. Weinberg is in charge of the litigation with assistance from Sharon Kivowitz, Assistant Regional Counsel, EPA Region 2.
E.D.N.Y. Docket No. 18-CV-3818
U.S Attorney thanks law students for summer internshipsRead the Press Release
WHEELING, WEST VIRGINIA – The United States Attorney’s office had the opportunity to employ four interns this summer. The law students assisted in the Wheeling, Clarksburg, and Martinsburg offices in the criminal and civil divisions.
“Our district greatly benefited from the work of our student interns this summer. It is always great to have smart young law students work with us. They provide valuable research, written products and fresh insights. They also have the opportunity to see the judicial process and our lawyers in action. We all benefit from such experiences,” said United States Attorney, Bill Powell.
Samantha Berry is from Moundsville, West Virginia. She graduated from West Virginia University in 2017 with a Bachelor of Arts in Criminology and a minor in Law & Legal Studies. Samantha is a rising second year law student at West Virginia University College of Law. She assisted in the Wheeling office.
Lakyn Cecil is from New Martinsville, West Virginia. She graduated from WVU in the spring of 2017 as Cum Laude with her Bachelors of Arts in Criminology and a double minor in Forensic and Investigative Science and Biology. Cecil went on to attend WVU College of Law in the fall of 2017. She also assisted in the Wheeling office.
Tim Dudley is from Utah where he earned a Bachelor’s degree from Brigham Young University. He is currently studying law at Pepperdine University. Tim is assisting in the Martinsburg office.
Jeremy Bumgardner is from Bridgeport, West Virginia. He holds a Bachelor of Science degree in Recording Industry Management and Commercial Songwriting from Middle Tennessee State. He is currently a rising 3L at WVU College of Law. Jeremy is assisting in the Clarksburg office.
The internships included an inside look at the federal judicial system and the federal and state corrections system.
State Department Employee Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to production of child pornography.
According to court documents, over at least a two year period, Skydance MacMahon, 44, conspired with an adult in Canada to produce over a thousand sexually explicit images and videos of minor children in Canada. These images and videos were produced at the direction of MacMahon using Skype and hidden cameras. MacMahon distributed these image and video files to other users and consumers of child pornography by providing access to the files on his cloud storage services and also by directly sending the files to other users. In addition to the child pornography images and videos MacMahon himself created, he also received and possessed thousands of images and videos of child pornography.
During the time he committed these offenses, MacMahon was a Digital Media Administrator at the Foreign Services Institute of the U.S. Department of State in Arlington.
MacMahon pleaded guilty to conspiring to produce child pornography and producing child pornography. He faces a mandatory minimum of 15 years and a maximum penalty of 60 years in prison when sentenced on October 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.
Significant assistance was provided by the FBI’s Cincinnati Field Office, the U.S. Department of State Office of Inspector General’s Cyber Forensic Division, the Royal Canadian Mounted Police, the Halifax Regional Police, Crown Prosecution Service, Special Prosecution Section, the Nova Scotia Public Prosecution Service, the Arlington County Police Department, and the Arlington County Commonwealth’s Attorney’s Office.
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-261.
St. Louis Man Sentenced to 17 Years for Sex TraffickingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a St. Louis, Mo., man was sentenced in federal court today to his role in a sex trafficking conspiracy.
Calvin Anthony Miller, also known as “Cerius Blacc,” 35, was sentenced by U.S. District Judge Stephen R. Bough to 17 years and 6 months in federal prison without parole. In addition to the conspiracy, Miller was sentenced to two counts of transporting an individual across state lines for prostitution.
Miller admitted that he engaged in the conspiracy from approximately March 2016, to Oct. 15, 2016, which victimized two women whom he forced to engage in prostitution.
This case is the result of Operation Cross Country X, an international FBI investigation of sex trafficking in partnership with local law enforcement agencies.
According to court documents, a federal undercover agent assisted the Independence, Mo., Police Department, posing as a customer attempting to hire a prostitute for sex. On Oct. 14, 2016, the undercover agent located an online listing that included provocative and partially nude photos along with a description and some possible acts that she was willing to do. The agent contacted her and she agreed to meet him at a hotel.
This witness provided law enforcement officers with information on Miller, who she said was a violent pimp, and his cousin, co-defendant Henry Dailey, 37, also of St. Louis. Dailey pleaded guilty on June 26, 2017, to transporting an individual across state lines for prostitution.
The witness led law enforcement to a hotel in Independence where they encountered Victim 1 and Victim 2. Victim 2 told law enforcement officers that Miller was violent and abusive. She said she met Miller in March 2016 and had never been allowed to go back home. Victim 2, who said Miller broke her hip during one violent encounter, told officers, “If I tell you anything he will kill me” and started crying. She stated that she did not believe the police could provide enough security to protect her from “these guys.”
Victim 1 told the detective that she wanted away from the group and just wanted to go home.
While at the hotel, agents determined that Miller had rented two rooms on the third floor. Agents made contact with Miller on the third floor. Miller was noncompliant with law enforcement requests, was directed to the ground, and cuffed.
Each of the victims told law enforcement officers that Miller required them to work in a prostitution ring based in St. Louis, threatening them with violence and death if they tried to leave, and took all of their money. They also said that Miller forced them to use drugs to keep them addicted and dependent on them.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Independence, Mo., Police Department. v
Sex Offender Who Lived in Nine States over Three Years Sentenced to Federal Prison TimeRead the Press Release
Abingdon, VIRGINIA – A Raven, Virginia man, who was previously convicted of criminal sexual misconduct in Michigan and therefore subject to the requirements of the Sex Offender Registration and Notification Act [SORNA], was sentenced last week for failing to register as a previously convicted sex offender when he moved to Virginia. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring made the announcement.
Nelson Jose Gonzalez, 50, a.k.a. “Gerald Perez” was sentenced last week to 21 months of federal incarceration. Gonzalez previously pleaded guilty to one count of failing to register as a previously convicted sex offender and one count of fraudulently using a social security number belonging to another person.
“As this case indicates, our office will aggressively prosecute individuals who violate the Sex Offender Registration Act,” U.S. Attorney Cullen stated. “We are grateful to our partners at the United States Marshals Service for their commitment to this critical public-safety initiative.”
According to information presented at previous hearings by Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen, Gonzalez was convicted of third-degree criminal sexual conduct while living in Michigan in 1993 and served 15 years in prison. Gonzalez registered as a sex offender in Michigan every three months from the time of his release from prison until sometime in 2012 or 2013.
Gonzalez admitted to purchasing identification documents in 2013, including a social security number of another person for $50 in order to avoid detection by law enforcement and the registration requirements of SORNA. The defendant admitted he left Michigan to pursue work with a traveling carnival and worked in Pennsylvania, Virginia, Maryland, Vermont, Connecticut, New Jersey, Florida and North Carolina without ever registering as a convicted sex offender in those states as a required by SORNA, despite knowing of his responsibility to do so.
After receiving information that Gonzalez was living and working in Raven, Virginia and had failed to register as a sex offender, the United States Marshals Service began an investigation in January 2018. During the course of that investigation, U.S. Marshal’s Service investigators discovered that Gonzalez was working at a local McDonald’s and using the name “Gerald Perez” to avoid detection by law enforcement.
The investigation of the case was conducted by the United States Marshals Service. Suzanne Kerney-Quillen, an Assistant Attorney General assigned to the Major Crimes Section of the Virginia Attorney General’s Office and cross designated as a Special Assistant United States Attorney, prosecuted the case for the United States.
Rochester Contractor Pleads Guilty to Falsifying Osha DocumentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Margaret M. Tobin, 46, of Rochester, NY, pleaded guilty before U.S. Magistrate Judge Jonathan W. Feldman to possession of an unlawful identification document of the United States. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that in September 2016, the defendant, owner of M Design, was hired as a subcontractor for a state funded construction project in Rochester. In order for the City of Rochester to obtain state funding for the project, each employee working on the project was required to complete an Occupational and Safety Health Administration (OSHA) training course before performing any work on the contract. Between September 2016 and November 2016, Tobin provided her employees working on the project with fraudulent OSHA training certification cards. The fraudulent cards contained the employees’ names and registration numbers as if they had been lawfully issued by OSHA. The cards were then submitted to the City of Rochester in order for the defendant and her employees to receive payment for their services. However, the employees never actually received the OSHA training as represented on the fraudulent cards.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Peter Nozka, Acting Special Agent-in-Charge of the New York Region.
Sentencing is scheduled for September 6, 2018, at 10:30 a.m. before Judge Feldman.
Professional Body Builder and His Steroid Supplier Sentenced to PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Donald McCloud Long (51, Jacksonville) to 18 months in federal prison for conspiracy to illegally distribute anabolic steroids. Judge Davis also sentenced Long’s steroid supply source, Gregory Allen Baker (30, Jacksonville), to 3 years in federal prison for the same offense and for money laundering. In addition, Long’s wife, Sarah Long (35, Jacksonville), was sentenced to a term of 42 months’ probation, which includes a 1-year term of home confinement.
The court also ordered Don and Sarah Long to forfeit $250,000, which are traceable as proceeds of the offense. Baker was ordered to forfeit a 2015 Land Rover Range Rover Sport, a 2008 Cadillac Escalade Luxury, a 2011 Yamaha Drive Electric Golf Cart, a 2013 Kia Soul Sport, a 2007 Yamaha Motorcycle, jewelry, and proceeds in the amount of $124,418. Baker also consented to the forfeiture $37,800 in additional proceeds.
Don and Sarah Long both pleaded guilty on January 22, 2018. Baker pleaded guilty on February 14, 2017. Eight others have been convicted as part of the conspiracy.
According to court documents, from January 2013 through September 27, 2016, Don and Sarah Long supplied many of their clients with anabolic steroids and human grown hormone (HGH) as part of their “Team Long” training regimen. The Longs provided instruction, dosage, and direction to Team Long athletes on how to consume steroids and HGH to prepare for bodybuilding competitions and other athletic endeavors.
Baker was the Longs’ primary source of supply for steroids and HGH and imported raw anabolic steroids and HGH from China. Baker manufactured the steroids into consumable form, then branded the product “AxioLabs” and distributed it for the Longs and others. After the federal investigation became known, Baker rebranded his anabolic steroid and HGH as “Razors Edge.”
These cases were part of “Operation Total Package,” led by the Drug Enforcement Administration (DEA). It was a collaboration among the DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, U.S. Customs and Border Patrol, the Jacksonville Sheriff’s Office, the Jacksonville Beach Police Department, the Green Cove Springs Police Department, the Internal Revenue Service – Criminal Investigation, and the U.S. Anti-Doping Agency. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Operation Hopscotch Results in Arrests of Sixty Two Violent Offenders in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that the United States Marshals Service coordinated a federal, state and local law enforcement operation, called “Operation Hopscotch,” that resulted in the arrests of sixty-two violent offenders in Grant, Chelan and Douglas Counties over the course of ten days. The Pacific Northwest Violent Offender Task Force, U.S. Marshals Service, U.S. Border Patrol, Homeland Security Investigations, Grant County Sheriff’s Office, Chelan County Sheriff’s Office, Douglas County Sheriff’s Office, Moses Lake Police Department, Wenatchee Police Department and East Wenatchee Police Department partnered in Operation Hopscotch to locate and arrest sex offenders and other violent offenders with outstanding active arrest warrants. Operation Hopscotch also led to the apprehension of fugitives based on arrest warrants issued from California and Idaho, as well as the arrests of offenders located in Arizona and Texas. During the operation, law enforcement officers seized approximately 180 grams of methamphetamine and $2,000 in counterfeit U.S. currency.
Craig Thayer, United States Marshal for the Eastern District of Washington, said, “The United States Marshals Service is very appreciative of the partnerships we have with the city, county, state, and other federal law enforcement agencies that worked diligently to make this warrant operation a tremendous success. “Sixty -Two” violent offenders with active warrants were arrested and taken to jail. Our communities are safer as a result of these cooperative efforts that help to hold these violent offenders accountable to the justice system.”
Harrington stated, “On behalf of the citizens of the Eastern District of Washington: Well Done!”
The U.S. Marshals Service led-Pacific Northwest Violent Offender Task Force (“PNVOTF”) is comprised of federal, state, and local law enforcement officers from Washington, Oregon, and Alaska. The PNVOTF in Eastern Washington is comprised of full-time members from the Yakima County Sheriff’s Office, Benton County Sheriff’s Office, Kennewick Police Department, Washington State Department of Corrections, and U.S. Border Patrol with part-time officers from agencies throughout the district. The mission of the PNVOTF is to locate, arrest and bring to justice the most egregious federal, state, and local violent offenders.
Ohio Man Arrested for Attempting to Assist a Foreign Terrorist Organization with Homeland Attack PlotRead the Press Release
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 48, of Maple Heights, Ohio, was charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization. Pitts was arrested Sunday by members of the FBI’s Joint Terrorism Task Force.
The arrest and charges were announced by Attorney General Jeff Sessions, FBI Director Christopher Wray, Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“Terrorists reject the ideals this nation was founded upon—the ideals we celebrate on July Fourth and which our law enforcement officers lay down their lives for every day,” said Attorney General Sessions. “Each one of us owes a debt of gratitude to the agents, analysts, and prosecutors who work day and night to identify those who would do this nation harm, including those committed to supporting violence in the name of foreign terrorist organizations. At the Department of Justice, we will continue to take every lawful step we can to disrupt terrorist plots and to protect our nation from foreign and domestic threats, including the dangerous threat posed by radical Islamic terrorism.”
“Together with our law enforcement partners on FBI Cleveland's Joint Terrorism Task Force, the FBI disrupted plans to attack innocent citizens – including on July 4th, a day our citizens should be able to celebrate our freedom without fear of violence," said Director Wray. "This arrest shows the determination of the men and women of the FBI and our partner agencies to protect our communities from harm. I extend my thanks not just to those who worked on this case, but to all those who safeguard our nation every day.”
“Protecting our citizens and our nation remains the Justice Department’s top priority,” U.S. Attorney Herdman said. “This defendant plotted and scouted locations in downtown Cleveland for an attack on July 4th, when he knew it would be packed with people celebrating our nation’s birthday. We will continue to do all we can to identify, arrest and prosecute those threats while working to keep our communities safe and secure.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and was planning to conduct an attack in Cleveland on Independence Day, the very day we celebrate the freedoms we have in this country,” said Special Agent in Charge Anthony. “The FBI commends the public for reporting individuals that espouse their radical beliefs and/or engage in behavior that threaten the lives of our military personnel and community.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts, a U.S. citizen, and the UCE met on June 22, in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
The defendant faces a statutory maximum sentence of 20 years in prison. A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
O.C. Psychiatrist Arrested on Federal Charges Alleging Illegal Prescriptions for Opioids Without Medical NeedRead the Press Release
SANTA ANA, California – A psychiatrist who practices at a Santa Ana clinic has been arrested on federal charges that allege he issued prescriptions for dangerous and addictive narcotics, such as the opioid oxycodone, without a medical purpose.
Dr. Robert Tinoco Perez, 56, of Westminster, was arrested Friday by special agents with the Drug Enforcement Administration.
Perez was named in a 14-count indictment returned by a federal grand jury on June 27. The indictment charges Perez with selling prescriptions to drug customers, as well as to brokers who sold the drugs obtained from filling the prescriptions and split the profits with Perez.
Perez wrote prescriptions for “patients” he had never met or examined, including an undercover officer, according to the indictment. Perez and his co-conspirators allegedly created fictitious medical records for drug customers to provide justification for their prescriptions.
The drugs alleged to have been prescribed illegally by Perez included oxycodone and hydrocodone (both opioid pain medications), amphetamine salts (sold primarily under the brand name Adderall), and alprazolam (sold primarily under the brand name Xanax).
Perez is also charged with possession with intent to distribute nearly one ounce of methamphetamine.
At his arraignment on Friday, Perez pleaded not guilty and was ordered to stand trial on August 21.
A second defendant charged in the indictment – William Jason Plumley, 40, of Huntington Beach – is alleged to have sold both prescriptions written by Perez and the drugs filled from his prescriptions. Plumley already is in federal custody on a previous indictment alleging that he sold methamphetamine.
The indictment charging Perez and Plumley alleges one count of conspiracy to distribute controlled substances, 12 counts of illegal distribution of oxycodone without a legitimate medical purpose, and one count of possession with intent to distribute methamphetamine. Each of the defendants is charged in multiple, but not all, illegal distribution counts.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted of the charges in the indictment, Perez and Plumley each would face potential sentences of over 100 years in federal prison.
This case is the result of an investigation by the Drug Enforcement Administration and the Costa Mesa Police Department.
The case is being prosecuted by Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office.
New Mexico State Police Officer Arrested on Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Acting Special Agent in Charge Maxwell D. Marker of the FBI’s Albuquerque Division, New Mexico State Police (NMSP) Chief Pete Kassetas, San Juan County Sheriff Ken Christesen, and Director Kevin Burns of the HIDTA Region II Narcotics Task Force announced today that a NMSP officer has been arrested and is charged with violating the federal drug laws.
NMSP Officer Daniel Capehart, 33, of Bloomfield, N.M., was arrested by the FBI, NMSP, San Juan County Sheriff’s Office (SJCSO), and HIDTA Region II Narcotics Task Force on June 29, 2018. At the time of his arrest, Capehart was assigned to patrol duty in Farmington and San Juan County, N.M. Upon arrest, Capehart was placed on administrative leave.
Capehart made his initial appearance in federal court in Farmington, N.M., this morning before U.S. Magistrate Judge B. Paul Briones on a criminal complaint charging him with distribution of marijuana and methamphetamine. Capehart remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for July 5, 2018, in federal court in Albuquerque, N.M.
The criminal complaint generally alleges that Capehart abused his position as a law enforcement officer by stealing quantities of drugs seized during arrests and giving the drugs to females with whom he was interested in pursuing romantic or sexual relationships. To this end, the complaint alleges that on June 15, 2018, Capehart initiated a “flirtatious” “texting” relationship with a 16-year-old female who was a passenger in a friend’s vehicle, which was the subject of a traffic stop. After Capehart allegedly agreed to dismiss the friend’s citations, Capehart allegedly sent a number of text messages to set up two clandestine deliveries of marijuana to the minor on June 21 and 23, 2018.
The complaint alleges that unbeknownst to Capehart, the minor had turned her cellphone over to a SJCSO Detective on June 19, 2018, and Capehart allegedly had been communicating with the SJCSO Detective instead of the minor. According to the complaint, investigators conducted surveillance as Capehart allegedly left the marijuana at the designated drop locations as discussed in the text messages, and collected the marijuana after Capehart departed from the areas.
According to the complaint, a confidential source (Source), known to Capehart as a methamphetamine user, informed the investigators that Capehart had been texting her for approximately nine months and that Capehart had contacted her by text as recently as June 5, 2018. The Source reported that the texting relationship with Capehart also began with a traffic stop and was sexual in nature. The Source permitted an FBI Special Agent to take control of her cellphone and pose as the Source beginning on June 27, 2018.
The complaint alleges that during text messaging on June 28, 2018, between the FBI Special Agent posing as the Source and Capehart, the FBI Special Agent asked Capehart if he could “make me happy or vice versa,” and Capehart allegedly responded “if you know someone I can bust tomorrow then it makes my job easy. Whatever I get I just split it.” After the FBI Special Agent sent text messages to Capehart setting up a sting, the investigators put a plan into place to have an undercover officer, posing as a methamphetamine dealer and carrying 24 grams of methamphetamine, accompany the Source to the SunRay Casino in Farmington.
According to the complaint, on the night of June 28, 2018, while the undercover officer and the Source were driving to the casino, Capehart allegedly executed a traffic stop on the undercover officer’s vehicle, arrested the undercover officer, and seized the methamphetamine. In subsequent text messaging, Capehart allegedly told the FBI Special Agent, whom he believed to be the Source, that he would arrange for her to get her share of the methamphetamine after he booked the drug dealer.
In the early hours of June 29, 2018, investigators conducted surveillance as Capehart allegedly drove from the San Juan County Detention Center to a park in Bloomfield, and walked into and out of the bathroom area in the park. After Capehart departed the area, investigators went into the bathroom area and found a plastic container containing approximately 5.7 grams of methamphetamine. The description and location of the container were consistent with information Capehart allegedly previously sent to the FBI Special Agent, whom he believed to be the Source, by text message. Investigators arrested Capehart shortly thereafter at the Farmington office of the NMSP.
“As guardians of our communities, police officers have a solemn trust and responsibility to uphold the law. Any suggestion that an officer has breached that trust demands prompt action,” said U.S. Attorney John C. Anderson. “My office will work closely with FBI, NMSP, SJCSO, and HIDTA Region II Narcotics Task Force to ensure that any violation of the public trust is addressed swiftly, thoroughly and in accordance with law.”
“The majority of law enforcement officers perform their duty with dedication and integrity, putting their lives on the line every day to keep our communities safe,” said Acting Special Agent in Charge Maxwell D. Marker of the FBI’s Albuquerque Division. “It is a sad day when the FBI and our partners investigate someone accused of betraying their solemn oath to uphold the law, but it is a task we perform thoroughly and vigorously because the public must be able to trust their protectors. We hope this arrest sends a clear message that misconduct by any law enforcement officer or any public official will not be tolerated.”
“The State Police is fully cooperating with the FBI in their investigation and we look forward to justice being served,” said New Mexico State Police Chief Pete Kassetas. “Police officers take an oath to uphold the law and any violations of that oath are unacceptable.”
“The vast majority of law enforcement officers fulfill their duty with integrity and honor,” said San Juan County Sheriff Ken Christesen, “The small fraction that does not will not be tolerated in San Juan County or the State of New Mexico.”
“Police officers are entrusted by the citizens of New Mexico to uphold their oath with limited supervision. It is always unfortunate when law enforcement officers have to investigate one of their own,” said Director Kevin Burns of the HIDTA Region II Narcotics Task Force. “We are pleased with the hard work of our task force officers and our collaboration with the FBI on an investigation to uphold the integrity of our profession.”
If convicted on the marijuana distribution offenses, Capehart faces a statutory maximum penalty of five years of imprisonment. If convicted on the methamphetamine distribution offense, Capehart faces a statutory maximum penalty of 20 years of imprisonment. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The investigation of his case, which is ongoing, is a collaborative effort by the Farmington office of the FBI, the New Mexico State Police, the San Juan County Sheriff’s Office, and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorneys Peter J. Eicker and Shaheen P. Torgoley are prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Capehart ComplaintNew Haven Man Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ANTHONY DUNCAN, also known as “Heavy D,” 31, of New Haven, with one count of possession of a firearm by a convicted felon.
As alleged in the indictment, on November 24, 2017, in New Haven, DUNCAN possessed a loaded Smith and Wesson M&P Shield .40 caliber handgun. Prior to that date, DUNCAN had been convicted in state court of felony drug, robbery 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 the charge, DUNCAN faces a maximum term of imprisonment of 10 years.
DUNCAN has been detained since June 26, 2018, when he was arrested on a federal criminal complaint.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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.
Milwaukee Man Arrested for Attempted Arson of Milwaukee Police StationRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that on July 2, 2018, Van L. Mayes (a/k/a Vaun L. Mayes) (age 31) of Milwaukee was arrested and charged by a criminal complaint with attempted arson, possession of a firearm by a felon, and possession of a destructive device in relation to a crime of violence, in violation of Title 18, United States Code, Sections 844(i), 922(g), and 924(c)(1)(B)(ii).
The complaint alleges that Mayes and others planned to firebomb the Milwaukee Police Department’s District Seven Police Station during the Sherman Park rioting in August 2016. According to the complaint, Mayes and others pursued the plan by manufacturing Molotov cocktails in glass bottles that contained gasoline with a fabric wick inserted into the opening. The firebombing of the District Station ultimately did not occur.
“Today’s charges are the result of ongoing efforts to hold accountable those who engaged in criminal conduct during the Sherman Park riots,” explained U.S. Attorney Krueger.
“ATF is pursuing multiple investigations related to the 2016 Sherman Park riots,” said U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Assistant Special Agent in Charge Joel Lee of the St. Paul Field Division. “This particular arrest is related to the attempted firebombing of the Milwaukee Police Department’s seventh District station. We’re hoping this arrest will bring us one step closer in holding individuals responsible for the violence and disorder back in 2016. The citizens and business community of Milwaukee deserve the peace of mind.”
ATF led the investigation of this case in cooperation with the Wisconsin Department of Justice Division of Criminal Investigation and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorneys Gregory Haanstad and Christopher Ladwig.
The public is cautioned that a criminal charge is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
# # # # #
For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Criminal_ComplaintMesa, Arizona, Man Sentenced to 120 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carlos Daniel Chavez-Lozano, age 27, of Mesa, Arizona was sentenced to 120 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about March 9, 2017, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “There are few communities across the country that have not felt the horrific impacts of methamphetamine. Without regard for the tragedy that will ensue, drug dealers deliver their poison for profit. In this case the agents from the Oklahoma Highway Patrol and Drug Enforcement Administration worked together and prevented thousands of dosage units of methamphetamine from being delivered, and members of this office were able to successfully prosecute the defendant.”
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 Christopher Wilson 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.
Meridian Men Indicted for Killing a Witness and Drug TraffickingRead the Press Release
Jackson, Miss. – Aubrey Maurice Jordan, 26, Monroe L. Hughes, III a/k/a "Roe," 39, and Cortez Lakeith Byrd a/k/a Byrd, 26, all of Meridian, were recently indicted and charged with witness tampering resulting in death, drug trafficking and conspiracy, announced U.S. Attorney Mike Hurst, Drug Enforcement Administration (DEA) Assistant Special Agent in Charge, J. Derryle Smith, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Dana Nichols.
Aubrey Maurice Jordan and Cortez Lakeith Byrd had their initial appearance and arraignments Friday before U.S. Magistrate Linda R. Anderson. Monroe L. Hughes, III, is scheduled to have his initial appearance and arraignment before U.S. Magistrate Linda R. Anderson on Tuesday, July 3, 2018.
On or about March 10, 2018, a confidential source for the East Mississippi Drug Task Force was shot in the back of the neck. The confidential source had previously participated in controlled buys on or about September 21, 2017, and on or about October 9, 2017, involving Monroe L. Hughes, III and Cortez Lakeith Byrd.
In Count 1, Monroe Hughes and Cortez Byrd are charged with conspiracy to possess 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, which carries a maximum penalty of 40 years in prison and a $5,000,000 fine. In Count 2, Hughes is charged with possession with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, which carries a maximum penalty 40 years in prison and a $5,000,000 fine. In Count 3, Hughes and Byrd are charged with possession with the intent to distribute methamphetamine, which carries a maximum penalty of 20 years in prison. In Counts 5 and 7, Aubrey Jordan is charged with tampering with and retaliating against witness by killing, which carries a maximum penalty of death or life in prison or imprisonment for any term of years. All men are charged in Counts 4 and 6 with conspiracy to tamper with and retaliate against a witness, which carries a maximum penalty of death or life in prison or imprisonment for any term of years.
This case is set for trial on September 4, 2018, before U.S. District Judge Carlton W. Reeves.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
The case is the result of an investigation by the East Mississippi Drug Task Force, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Meridian Police Department. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
Memphis, Tennessee, Man Sentenced to 30 Months for Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Chad Scates Tidwell, age 32, of Memphis, Tennessee was sentenced to 30 months imprisonment and 3 years supervised release for Possession With Intent To Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about December 4, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 kilograms or more of a mixture or substance containing a detectable amount of marijuana, a Schedule I controlled substance.
United States Attorney Brian J. Kuester said, “This office is fortunate to work with law enforcement agencies from local, state, tribal and federal jurisdictions that work very well together and understand that we serve best when we serve together. The defendant in this case is being held accountable for his violation of federal law because of the cooperative efforts of OHP and DEA.”
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 Christopher Wilson 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.
Maple Heights man arrested and charged in federal court after plotting terror attack in downtown Cleveland on Independence DayRead the Press Release
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 48, of Maple Heights, Ohio, was charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization. Pitts was arrested Sunday by members of the FBI’s Joint Terrorism Task Force.
The arrest and charges were announced by Attorney General Jeff Sessions, FBI Director Christopher Wray, Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“Terrorists reject the ideals this nation was founded upon—the ideals we celebrate on July Fourth and which our law enforcement officers lay down their lives for every day,” said Attorney General Sessions. “Each one of us owes a debt of gratitude to the agents, analysts, and prosecutors who work day and night to identify those who would do this nation harm, including those committed to supporting violence in the name of foreign terrorist organizations. At the Department of Justice, we will continue to take every lawful step we can to disrupt terrorist plots and to protect our nation from foreign and domestic threats, including the dangerous threat posed by radical Islamic terrorism.”
“Together with our law enforcement partners on FBI Cleveland's Joint Terrorism Task Force, the FBI disrupted plans to attack innocent citizens – including on July 4th, a day our citizens should be able to celebrate our freedom without fear of violence," said Director Wray. "This arrest shows the determination of the men and women of the FBI and our partner agencies to protect our communities from harm. I extend my thanks not just to those who worked on this case, but to all those who safeguard our nation every day.”
“Protecting our citizens and our nation remains the Justice Department’s top priority,” U.S. Attorney Herdman said. “This defendant plotted and scouted locations in downtown Cleveland for an attack on July 4th, when he knew it would be packed with people celebrating our nation’s birthday. We will continue to do all we can to identify, arrest and prosecute those threats while working to keep our communities safe and secure.”
“Pitts, a U.S. citizen living in Ohio, pledged his allegiance to al-Qaeda, a foreign terrorist organization, and was planning to conduct an attack in Cleveland on Independence Day, the very day we celebrate the freedoms we have in this country,” said Special Agent in Charge Anthony. “The FBI commends the public for reporting individuals that espouse their radical beliefs and/or engage in behavior that threaten the lives of our military personnel and community.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts, a U.S. citizen, and the UCE met on June 22, in Walton Hills, Ohio, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts and the UCE searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
The UCE texted Pitts later on June 22 and where he indicated al Qaeda “brothers” would provide Pitts with a bus pass and cellular phone.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, who provided Pitts with a bus pass and a phone Pitts could use to communicate with the UCE. The bus pass was provided to Pitts, as he requested, so he could travel to downtown Cleveland to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
The defendant faces a statutory maximum sentence of 20 years in prison. A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This investigation is being conducted by the FBI-Cleveland Division’s Joint Terrorism Task. The case is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Matthew Shepherd of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Las Vegas man sentenced to 15 years in federal prison for distributing over 100,000 oxycodone pillsRead the Press Release
Memphis, TN – Gabriel Rounds, 36, of Las Vegas, Nevada, was sentenced to 188 months imprisonment for his role in distributing more than 100,000 oxycodone pills in the Memphis area and conspiracy to knowingly conduct financial transactions affecting interstate commerce, known as money laundering. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on or about May 9, 2013, Las Vegas Postal Inspectors began an investigation into mailings of illegal narcotics destined for the Memphis area. During the course of the investigation, several U.S. mail parcels containing oxycodone pills were seized.
U.S. Attorney D. Michael Dunavant said: "This office continues our fight against the supply and flow of dangerous prescription opioids into the Western District of Tennessee. This disturbing case demonstrates the lengths to which drug dealers will go to profit from addiction and suffering, and this significant sentence demonstrates our resolve to punish and deter such brazen interstate criminal conduct."
Postal Inspectors were able to identify phone numbers, surveillance images, vehicle registrations and other information that identified Gabriel Rounds and Magan Hall sending the packages to various addresses and recipients residing in Memphis. Based upon USPIS findings a search warrant was issued for the residence of Rounds and Hall. Hall admitted to helping Rounds package the pills in Express Mail envelopes.
On April 26, 2016, Las Vegas Postal Inspectors were advised by a postal employee that an unidentified female was attempting to mail USPS Express Mail packages. The USPS employees advised the female came in weekly and sent express parcels to Memphis. A package was examined by the Postal Inspectors and appeared to have characteristics of parcels containing controlled substances and/or proceeds. Due to the nature of the subject parcel, it was removed from the mail stream for examination.
On April 27, 2016, the package was further examined by a narcotics detective K-9 who alerted to the odor of narcotics inside the parcel. On May 2, 2016, a search warrant was executed on the parcel and revealed 456 oxycodone pills being concealed inside M&M’s candy bags.
On June 15, 2018, U.S. District Judge Sheryl H. Lipman sentenced Rounds to 188 imprisonment, to be followed by six years of supervised release.
This case was investigated by the United States Postal Inspectors Office, Las Vegas Postal Inspectors Office, Shelby County Sheriff’s Office and the Tennessee National Guard Counter Narcotics Team.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
Las Vegas Real Estate Broker Arrested on Money Laundering ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and David J. Downing, Special Agent in Charge of the Los Angeles Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that LUIS EDUARDO RODRIGUEZ has been charged for his role in laundering hundreds of thousands of dollars in narcotics proceeds through Las Vegas real estate, and through multiple Nevada shell corporations, in order to send those proceeds to narcotics traffickers and money launderers based in Mexico. RODRIGUEZ was arrested this morning in Las Vegas, and will be presented in federal court today in the District of Nevada.
The criminal complaint, which was filed under seal on June 28, 2018, alleges that RODRIGUEZ worked at the direction of Jesus Rodriguez-Jimenez, the leader of an international money laundering and narcotics trafficking organization (the “Organization”). In June 2017, Rodriguez-Jimenez pled guilty to laundering in excess of $250 million in drug proceeds on behalf of drug cartels in Mexico and Central America through a variety of methods, including through seemingly “legitimate” corporations, shell bank accounts, and money couriers based in the United States and Europe. RODRIGUEZ served as one conduit through which the Organization laundered drug money.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Luis Eduardo Rodriguez assisted a major international drug trafficking organization in laundering the proceeds of its illegal operations. Rodriguez allegedly laundered drug proceeds through Las Vegas real estate transactions, and assisted in recruiting people to act as straw-man ‘managers’ of shell companies for the trafficking organization. Now, thanks to the DEA, Rodriguez is in custody and facing prosecution.”
DEA SAC David J. Downing said: “The actions of the accused illustrate the methods drug trafficking organizations utilize to infiltrate our communities and attempt to legitimize their criminal enterprise, but this arrest exemplifies the tremendous steps taken by law enforcement to uproot and remove them.”
According to the allegations in the criminal complaint [1], and statements made in Court:
The Investigation
Since July 2013, the DEA has been investigating the Organization and its cartel clients, which together have been involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering narcotics proceeds through a variety of methods. The Organization has ties to Panama, Mexico, Italy, Spain, and the United States, among other locations, and its members are believed to include the defendant. Eight members of the Organization have previously been charged in the Southern District of New York, including in the indictment captioned United States v. Rodriguez-Jimenez et al., 16 Cr. 644 (KBF) filed on September 22, 2016.
In furtherance of the money laundering activities of the Organization, RODRIGUEZ, through his real estate business, purchased, renovated, and sold residential properties in Las Vegas at the direction of Jesus Rodriguez-Jimenez. Jesus Rodriguez-Jimenez funded these transactions with drug dollars, and held his interest through a shell corporation, Innova Properties LLC (“Innova”). During the first half of 2016, RODRIGUEZ “flipped” at least three properties in this way for Jesus Rodriguez-Jimenez; the last of these was purchased by Innova for approximately $220,000 and then sold two months later for approximately $226,000.
In or about October 2015, RODRIGUEZ assisted Jesus Rodriguez-Jimenez in recruiting individuals to allow their identities to be used by the Organization: these individuals were listed with the State of Nevada as “managers” of various Organization-controlled shell corporations, and appeared as signatories on domestic bank accounts affiliated with those shell corporations. In exchange for the use of their identities, these individuals each received $1,000 per month in cash. These accounts were then utilized by the Organization for the movement of hundreds of thousands of dollars in narcotics proceeds.
In July 2016, after the raid of an Organization stash house by law enforcement in Philadelphia, which resulted in the seizure of $500,000 in narcotics proceeds, Jesus Rodriguez-Jimenez traveled from Monterrey, Mexico, to Las Vegas to meet with a purported associate to discuss the seizure. In fact, that associate was an undercover DEA agent, and Jesus Rodriguez-Jimenez was arrested when he arrived for the meeting. RODRIGUEZ accompanied Jesus Rodriguez-Jimenez to the meeting to discuss the seizure.
* * *
RODRIGUEZ faces up to 20 years in prison on the charges contained in the criminal complaint. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the DEA for its work in the investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Noah Falk and Jonathan E. Rebold are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Justice Department, EPA Reach Settlement with MFA Incorporated and MFA Enterprises Incorporated to Address Alleged Chemical Accident Prevention ViolationsRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) have entered into a consent decree with MFA Incorporated, headquartered in Columbia, Missouri, and its wholly owned subsidiary MFA Enterprises, Incorporated (collectively, “MFA”), to address alleged chemical accident prevention and preparedness violations under the Risk Management Program of the Clean Air Act. The alleged violations relate to the companies’ management of anhydrous ammonia at nine Missouri facilities, which have a combined inventory of more than 4.3 million pounds of the chemical. Under the settlement agreement, MFA will assure that its accident prevention program complies with all applicable Clean Air Act requirements, will install emergency shutoff equipment at 53 facilities, and will pay a civil monetary penalty of $850,000.
“This settlement will protect the communities surrounding MFA facilities by helping to prevent releases of harmful chemicals,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “By bringing MFA facilities into compliance with the Clean Air Act, this agreement will also substantially improve the maintenance and emergency systems that keep MFA workers safe.”
“Accidental releases of anhydrous ammonia fertilizers can be extremely dangerous. When it is used and stored properly, it helps the local agriculture industry meet the needs of our communities, and be competitive in the marketplace,” said EPA Region 7 Administrator Jim Gulliford. “This settlement ensures the rule of law is being followed by MFA, and that it is working responsibly to protect the communities and its workers where each of these facilities is located.”
In 2007, MFA pleaded guilty to one criminal misdemeanor violation of the Clean Air Act’s accident prevention provision, and admitted that it was negligent in failing to inspect, detect wear, and replace a valve on an ammonia storage tank where a release from that valve had hospitalized a worker. As part of the 2007 plea agreement, MFA agreed to come into compliance with applicable industry standards and safety requirements for the storage and handling of anhydrous ammonia. Beginning in 2012, EPA Region 7 conducted inspections and evaluated MFA’s compliance at facilities in Missouri and found that, despite the 2007 plea, numerous facilities did not conform to applicable industry standards. EPA also discovered several unreported ammonia releases that had injured workers.
The Complaint alleges numerous violations of the Clean Air Act’s Risk Management Program requirements at nine MFA facilities. Among MFA’s most common alleged violations, it failed to: (1) implement procedures to maintain its equipment; (2) properly conduct hazard reviews and address any hazards found in a timely manner; (3) develop and implement written operating procedures that provide clear instructions for safely conducting activities; and (4) disclose in its Risk Management Program submissions all incidents of accidental chemical releases that injured MFA employees.
Under the proposed settlement, MFA must create and implement corporate policies and engineering specifications for the storage and handling of anhydrous ammonia and a corporate-wide inventory maintenance system. It must also inspect and remedy any problems found within certain parts of its process equipment. Additionally, MFA must update the information it provides to EPA on accidental releases, and it must create and maintain a publicly available portion of its website listing accidents and releases that occur after the Consent Decree is lodged with the court. Finally, the Consent Decree requires MFA to hire an independent third-party auditor to conduct Risk Management Program audits at twenty facilities to identify and correct any potential violations of its risk management program under the Clean Air Act.
Also, as a part of today’s agreement, MFA will install emergency electronic shutoff systems at no fewer than 53 of its facilities. The electronic shutoff systems must include emergency stop buttons and a remote stop transmitter, which can be worn by an employee to reduce response time to a potential release. The systems are designed to close all shutoff valves and shut down liquid and vapor pumps facility-wide. The estimated cost to implement these systems is about $400,000.
The consent decree is subject to a 30-day public comment period and approval by the federal court.
Jackson Man Indicted for Distributing and Illegally Possessing MethamphetamineRead the Press Release
Jackson, Miss. – Kelvin Roy Thompson a/k/a "HOT" a/k/a "OLD SCHOOL," 59, of Jackson, was recently indicted and had his initial appearance and arraignment today before U.S. Magistrate Linda R. Anderson for distributing and illegally possessing methamphetamine, announced U.S. Attorney Mike Hurst, Mississippi Bureau of Narcotics Director John Dowdy, Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Dana Nichols.
Thompson is being charged with two counts of distributing at least 5 grams or more of actual methamphetamine, a Schedule II controlled substance, which carries a maximum penalty of 40 years in prison and a $5,000,000 fine. Thompson is also charged with one count of possession with the intent to distribute at least 5 grams or more of actual methamphetamine, a Schedule II controlled substance, which also carries a maximum penalty 40 years in prison and a $5,000,000 fine.
Thompson will make his initial appearance in court this afternoon for his arraignment at 1:30 p.m. before U.S. Magistrite Judge Linda R. Anderson. His case is set for trial before the Honorable District Judge David C. Bramlette III.
The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty.
The case is the result of an investigation by the Mississippi Bureau of Narcotics, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Jackson Police Department and Ridgeland Police Department. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
Individual Sentenced to 147 Months ImprisonmentRead the Press Release
FORT WAYNE –Israel Bonilla, age 32, of Michoacan, Mexico, was sentenced before Chief Judge Theresa L. Springmann, for possessing methamphetamine and heroin with the intent to distribute and for possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Bonilla was sentenced to a total of 147 months of imprisonment on these counts.
According to documents in this case, Bonilla and two codefendants were distributing large amounts of heroin and methamphetamine, and Bonilla possessed a loaded rifle and two loaded pistols in furtherance of his drug dealing.
This case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Postal Inspection Service; the Allen County Drug Task Force; and the Allen County Police Department. This case was handled by Assistant U.S. Attorney Anthony W. Geller.
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Healthcare Provider Agrees to $3 Million False Claims SettlementRead the Press Release
RICHMOND, Va. – Hope In-Home Care, LLC (Hope), a Newport News based provider of Medicaid in-home healthcare services, agreed to settle allegations that it submitted false claims to the Virginia Medicaid Program. Under the terms of the settlement Hope will pay a total of $3,345,065.35 to the United States and Virginia.
The U.S. Attorney’s Office and the Virginia Attorney General’s Office alleged multiple fraudulent schemes by Hope covering almost a three-year period from January 2011 thru September 2013, including: 1) Hope employed and submitted claims for uncertified “personal care aides” who were ineligible to provide services; 2) Hope falsified documents and statements in order to qualify ineligible beneficiaries for services; 3) Hope made false statements in prior authorization requests in order to obtain approval and reimbursement for non-reimbursable “respite services;” 4) Hope engaged in “phantom billing,” by billing for services that were not performed; and 5) Hope hired family members of Medicaid beneficiaries as “personal care aides” and submitted ineligible claims for compensation for care provided by those family members. Hope operates facilities in the Newport News – Williamsburg I-64 corridor, Virginia Beach, Warrenton, as well as Gloucester, King William, King and Queen, and Culpeper Counties.
The resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Office of the Attorney General for the Commonwealth of Virginia Medicaid Fraud Control Unit, with support from the Virginia Department of Medical Assistance Services. The matter was investigated by Assistant Attorney General Kimberly Bolton and Assistant U.S. Attorney Robert McIntosh.
The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability. The related criminal case information can be found on the website on PACER by searching for case no. 3:16-cr-110.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Four Bakersfield Men Arrested Today for Conspiring to Distribute Synthetic NarcoticsRead the Press Release
FRESNO, Calif. — On June 28, 2018, a federal grand jury returned an indictment against Mubarek Alnajar, 28; Yousef Nazem Alnajar, 24; Nazem Ahmed Alnajar, 46; and Bandar Gamal Saleh Alnaggar, 39, all of Bakersfield, charging them with conspiring to distribute synthetic narcotics, U.S. Attorney McGregor W. Scott announced.
According to court documents, from August 2016 through March 2018, the defendants conspired to distribute synthetic narcotics, including FUB-AMB, ADB-PINACA, AB‑FUBINACA, all Schedule I controlled substances. They distributed narcotics through several minimarts and smoke shops they owned and managed in Bakersfield.
This case is the product of an investigation by the Drug Enforcement Administration, California Highway Patrol, and Bakersfield Police Department. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Fort Wayne Man Sentenced to 135 Months ImprisonmentRead the Press Release
FORT WAYNE –Latwon Ford, age 25, of Fort Wayne, Indiana, was sentenced before Chief Judge Theresa L. Springmann, for two counts of obstructing and interfering with interstate commerce by robbery and for brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Kirsch.
Ford was sentenced to a total of 135 months of imprisonment followed by 2 years of supervised release.
According to documents in the case, Ford robbed the Dollar General store in Leo, Indiana, in June of 2015 and then again in January of 2016. In January of 2016, officers caught Ford after he exited the store, and Ford was armed with a loaded handgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation, the Allen County Police Department, the Indiana State Police, and the Fort Wayne Police Department. This case was handled by Assistant U.S. Attorney Anthony W. Geller.
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Former Mayor of Crystal City, TX, Sentenced to Federal Prison for Bribery and Kickback SchemeRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced Ricardo Lopez, the former Mayor of Crystal City, TX, to 97 months in federal prison followed by three years of supervised release and to pay $24,003.95___ restitution, announced United States Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs.
“Today Mr. Lopez received a fair sentence for his betrayal of the public trust. This case is just one example of our office’s unyielding fight against public corruption in Central and West Texas,” stated U.S. Attorney Bash.
“Citizens deserve honest and faithful service from their public officials. Greed and self-interest have no place in public service. Officials who betray the public and violate their oath of office will be thoroughly investigated and held accountable,” said FBI SAC Combs.
On June 26, 2017, a federal jury convicted Lopez of one count of conspiracy to commit bribery involving federal programs, one substantive count of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services and four substantive counts of wire fraud and theft of honest services. Jurors also convicted William James Jonas, III, the former City Manager and City Attorney for Crystal City, of one count of conspiracy to commit bribery involving federal programs, three substantive counts of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services, five substantive counts of wire fraud and theft of honest services, and four counts of wire fraud.
Testimony provided during trial revealed that between May 2012 and February 2016, Jonas, Lopez, and other city officials used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. Jonas and Lopez also used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.
On May 16, 2018, Judge Moses sentenced Jonas to 420 months in federal prison followed by three years of supervised release. Judge Moses also ordered that Jonas pay $1,047,814.05 restitution to Crystal City. Three other individuals—former Mayor Pro-Tem Rogelio Mata, former City Councilman Roel Mata and former City Councilman Gilbert Urrabazo—have pleaded guilty to a federal programs bribery charge and face up to ten years in federal prison and up to a $250,000 fine. Sentencing for all three former city officials is scheduled for September 6, 2018, in Del Rio before Judge Moses.
The FBI conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division, the Texas Rangers and the San Antonio Police Department. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Former Federal Inspector Arrested for Attempted Child EnticementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent in Charge of the New York Field Office of Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of JESSE RODRIGUEZ on charges of attempted enticement of a minor to engage in sexual activity. The Complaint charges that RODRIGUEZ communicated with an individual he believed to be the mother of two minor girls via email and chat messages, and made plans to meet the mother at a coffee shop in Manhattan and then go to her apartment to engage in sexual activity with her minor daughters. RODRIGUEZ was arrested Sunday after he arrived at the designated meeting place, and was presented today in Manhattan federal court before U.S. Magistrate Judge Ona T. Wang, where he was ordered detained pending trial.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Jesse Rodriguez traveled to New York yesterday in the evil yet erroneous belief that he would engage in sex with two children. He allegedly possessed condoms and restraints for that purpose. Thanks to HSI and the NYPD, he was the one who was handcuffed, and now faces prosecution.”
Special Agent in Charge Angel M. Melendez said: “Rodriguez allegedly sought out the mother of two young daughters in order to perform sex acts with the girls. It is incomprehensible that a former public servant, employed to protect, would allegedly seek to take advantage on the vulnerability of a child. Law enforcement continuously targets child predators to ensure a child does not become a victim, and now, in this case, this man is behind bars and will need to face justice for his alleged actions.”
Police Commissioner James P. O’Neill said: “Jesse Rodriguez’s alleged shameful attempt to pay for sex with two underage girls displays a disgusting, utter disregard for the rule of law in civilized society. The NYPD and our federal partners at Homeland Security Investigations and the Southern District will stop at nothing to identify, arrest, and prosecute anyone who engages in such alleged depraved behavior.”
According to the allegations in the Complaint sworn out today in Manhattan federal court and statements made during court proceedings:[1]
Between April 4, 2018, through July 1, 2018, RODRIGUEZ, a former federal inspector with the Federal Protective Service of the Department of Homeland Security, exchanged chat messages with a law enforcement officer operating in an undercover capacity, posing as the mother of a 13-year-old and an eight-year-old girl. During the course of these conversations, RODRIGUEZ told the undercover officer that he was interested in engaging in sexual activities with the minor girls. RODRIGUEZ described the explicit sexual activity that he intended to engage in with the purported minor daughters of the undercover officer and made a plan to travel from Minnesota to meet at a coffee shop in Manhattan to then go to a nearby apartment for purposes of engaging in sexual activity with the minor girls. RODRIGUEZ was arrested outside the coffee shop while in possession of condoms, lubricant, and restraints.
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RODRIGUEZ, 62, of St. Paul, Minnesota, is charged with one count of attempted enticement of a minor to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life in prison. The maximum potential sentence in this case is prescribed by Congress and is 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 Sarah Mortazavi is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Chief and President of Briarcliff Manor Fire Department Pleads Guilty to Embezzling More Than $120,000Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Thomas P. DiNapoli, New York State Comptroller, and George P. Beach II, Superintendent of the New York State Police, announced today that ROBERT M. GARCIA, the former president and chief of the Briarcliff Manor Fire Department in Briarcliff Manor, New York (“BMFD”), pled guilty to embezzlement of more than $120,000 from the BMFD. GARCIA pled guilty today in White Plains federal court before U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Robert Garcia abused his positions of trust with the Briarcliff Manor Fire Department and Fire Council to engage in flagrant self-dealing. He lined his pockets with Fire Department and Fire Council money to pay personal expenses, and then lied about it to cover his tracks. Now Garcia may be facing prison time for his crime.”
FBI Assistant Director William F. Sweeney Jr. said: “As a fire department official, Garcia was expected to be trustworthy and reliable, but, as he admitted today, he proved himself unprincipled by his deceitful actions. For approximately four years, Garcia abused his elected position to channel over $120,000 into his personal accounts. Instead of tending to the needs of the community, Garcia tended to his own needs. Corruption may be a deep-rooted plant in parts of our society, but as today’s plea demonstrates, we are committed to rooting out corruption in all of its forms.”
Comptroller Thomas P. DiNapoli said: “Mr. Garcia has admitted brazenly writing checks to himself for $122,000 from the Briarcliff Manor Fire Department. Thanks to my ongoing partnership with United States Attorney Geoffrey S. Berman, the FBI and the State Police, he will now be held accountable. This is a reminder to employ strong checks and balances and internal controls to guard public funds.”
According to the Information and statements made in related court filings and proceedings:
GARCIA was elected to the position of second assistant chief of the BMFD in or about April 2013. His election to that position also made him an officer of the Briarcliff Manor Fire Council, which oversees the BMFD. GARCIA was thereafter elected to different administrative and operational positions within the BMFD, including first assistant chief, chief, treasurer, and president. As a result, GARCIA was also an officer of the Fire Council from in or about April 2013 through in or about April 2017. GARCIA was given signatory authority over bank accounts held by the Fire Council and the BMFD starting in April 2013.
From in or about May 2013 to in or about March 2017, GARCIA embezzled money from the BMFD and the Fire Council by writing checks drawn on the BMFD’s and Fire Council’s bank accounts that he made payable to himself. GARCIA then deposited these checks into his personal bank accounts. He used the embezzled proceeds to pay personal expenses. GARCIA covered up his thefts by making material misstatements regarding the purposes and payees of the checks he had written to himself on written reports he gave to the Fire Council when he acted as the BMFD’s treasurer from in or about 2014 through in or about April 2017. GARCIA embezzled more than $120,000 from the BMFD and the Fire Council by writing approximately 150 checks to himself.
GARCIA, 51, of Ossining, New York, pled guilty to one count of embezzlement theft concerning a program receiving federal funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
GARCIA is scheduled to be sentenced before Judge Seibel on November 15, 2018, at 3:30 p.m.
Mr. Berman praised the outstanding investigative work of the FBI, New York State Comptroller and New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal PrisonRead the Press Release
A Brentwood, Tennessee man was sentenced today in U.S. District Court to 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Timothy Thomas, 55, was also ordered to forfeit $1.5 million dollars and to pay more than $2.5 million in restitution to the victims of the fraud scheme. In March 2018, Timothy Thomas pleaded guilty to committing mail fraud. He was initially indicted in October 2014 for fraudulently marketing limited benefit health plans as major medical health insurance to consumers. Thomas also pleaded guilty to criminal contempt, charges that resulted from a lawsuit filed by the Federal Trade Commission (FTC) and the State of Tennessee in August 2010, wherein a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account.
According to admissions made as part of his guilty plea, Thomas operated and controlled United Benefits of America (UBA) LLC, which was also known at as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
Thomas’s 66-month sentence consists of 36 months for mail fraud, to be followed by 30 months for criminal contempt.
“Timothy Thomas exploited innocent consumers who were simply looking for decent health insurance,” said Acting Assistant Attorney General Cronan. “Rather than honestly describing the insurance products his company was selling, Thomas had his salespeople misrepresent the products to thousands of unsuspecting people over the phone. The sentence of imprisonment and order of restitution in this case will hopefully provide some consolation to all those who were victimized by Thomas’ scheme.”
“Tim Thomas used misleading, high-pressure sales tactics to dupe thousands of victims into buying a product that they mistakenly believed was just as good as major medical health insurance,” said U.S. Attorney Cochran. “Then, when a federal court stepped in to shut Thomas’s company down and freeze his assets, Thomas violated that court order by depositing hundreds of thousands of dollars into a friend’s bank account. These crimes implicate not only the public’s trust but the integrity of the judicial system, and the sentence imposed today reflects their seriousness.”
Thomas’s ex-wife, Kennan Dozier Thomas, 60, of Franklin, Tennessee, was also charged with criminal contempt, arising from the violation of the asset freeze. She pleaded guilty in September 2016 and was sentenced last week to time served and placed on two years of supervised release, the first 90 days of which will be spent in a halfway house.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC, Tennessee Attorney General’s Office, and Tennessee Division of Insurance provided substantial assistance. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee prosecuted the case.
Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal PrisonRead the Press Release
Timothy Thomas, 55, of Brentwood, Tennessee, was sentenced today in U.S. District Court to 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division. Thomas was also ordered to forfeit $1.5 million dollars and to pay more than $2.5 million in restitution to the victims of the fraud scheme.
U.S. Attorney Don Cochran said, “Tim Thomas used misleading, high-pressure sales tactics to dupe thousands of victims into buying a product that they mistakenly believed was just as good as major medical health insurance. Then, when a federal court stepped in to shut Thomas’s company down and freeze his assets, Thomas violated that court order by depositing hundreds of thousands of dollars into a friend’s bank account. These crimes implicate not only the public’s trust but the integrity of the judicial system, and the sentence imposed today reflects their seriousness.”
In March 2018, Timothy Thomas pleaded guilty to committing mail fraud. He was initially indicted in October 2014 for fraudulently marketing limited benefit health plans as major medical health insurance to consumers. Thomas also pleaded guilty to criminal contempt, charges that resulted from a lawsuit filed by the Federal Trade Commission (FTC) and the State of Tennessee in August 2010, wherein a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account.
Thomas operated and controlled United Benefits of America (UBA) LLC, which was also known at as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
“Timothy Thomas exploited innocent consumers who were simply looking for decent health insurance,” said Acting Assistant Attorney General Cronan. “Rather than honestly describing the insurance products his company was selling, Thomas had his salespeople misrepresent the products to thousands of unsuspecting people over the phone. The sentence of imprisonment and order of restitution in this case will hopefully provide some consolation to all those who were victimized by Thomas’ scheme.”
At sentencing today, Judge David M. Lawson observed that Thomas “sought to profit from misrepresentations to people in a particularly vulnerable state,” noting that this sentence “sends the message that this type of conduct will not be tolerated. Thomas’s 66-month sentence consists of 36 months for mail fraud, to be followed by 30 months for criminal contempt.
Thomas’s ex-wife, Kennan Dozier Thomas, 60, of Franklin, Tennessee, was also charged with criminal contempt, arising from the violation of the asset freeze. She pleaded guilty in September, 2016 and was sentenced last week to time served and placed on 2 years of supervised release, the first 90 days of which will be spent in a half-way house.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC, Tennessee Attorney General’s Office, and Tennessee Division of Insurance provided substantial assistance. Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section prosecuted the case.
Federal and Local Law Enforcement Working Together as Cleveland Terrorist Suspect Identified Philadelphia as Next “Big Target”Read the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his Office is working together with the Federal Bureau of Investigation’s Philadelphia Field Office and the Philadelphia Police Department in connection with a criminal complaint filed today in Cleveland, Ohio, against Demetrius N. Pitts, aka Abdur Raheem Rahfeeq, aka Salahadeen Osama Waleed, 48, of Maple Heights, Ohio. Pitts was arrested Sunday by members of FBI’s Joint Terrorism Task Force and charged with one count of attempting to provide material support to al Qaeda, a designated foreign terrorist organization.
The complaint and supporting affidavit filed today in federal court in Cleveland, Ohio allege that Pitts spoke to an undercover FBI agent about planning an attack in downtown Cleveland on July 4 on behalf of al Qaeda. The supporting affidavit, also part of the public record, further alleged that Pitts told the same undercover FBI agent—in text message exchanges and during secretly recorded meetings—that he intended to travel to Philadelphia to conduct reconnaissance in furtherance of the next al Qaeda terrorist attack.
According to the supporting affidavit, Pitts told the undercover FBI agent that he knows Philadelphia best because it is his hometown; that Philadelphia would be the “big target”; and that the attack “will be done” on Labor Day. In a meeting on July 1, 2018, Pitts allegedly showed the FBI agent a map of Philadelphia; pointed out multiple landmarks as worthy targets, including the Federal Building and City Hall; and stated a truck bomb like the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage. When the undercover FBI agent commented to Pitts that people would die and body parts would be flying around, Pitts signaled no remorse, stating “I don’t care,” and “would be able to go to sleep.”
The U.S. Attorney’s Office in Philadelphia has been coordinating with both the FBI, Philadelphia Field Office and the Philadelphia Police Department to share all available information and assess any imminent threats. All law enforcement partners remain in constant communication about the case and will work together to determine what next steps will be taken in connection with the information gathered.
“Protecting this country from terror attacks is the first priority of the Department of Justice and the U.S. Attorney’s Office,” said U.S. Attorney McSwain. “This case is another stellar example of different agencies and prosecutors working together to keep our citizens safe. Our Office has been in constant communication with authorities in Cleveland, as well as the FBI and the Philadelphia Police Department. I want to particularly commend the FBI for its fast-paced and thorough investigation of this matter. The public can rest assured that authorities across this great country work every day, around the clock, to protect America and her residents from terrorism.”
“All across the country, each and every day, the FBI’s Joint Terrorism Task Forces are working fervently to detect and deter disturbing plots like this. Our Cleveland JTTF is to be highly commended for this important investigation and arrest,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The details of Pitts’ alleged plan of attack here are chilling. He saw this city, his hometown, as an attractive symbol—and the perfect target—because of Philadelphia’s central role in this nation’s founding. Philadelphia stands for freedom, for life, liberty, and the pursuit of happiness; ideals that are anathema to extremists like al Qaeda, and, it appears, Demetrius Pitts.”
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Felon Who Escaped from Federal Custody and Shot up Grand Prairie Apartment ComplexRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted Alvin Christopher Penn, 28, for escaping from federal custody in Hutchins, Texas and being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Penn is scheduled to be sentenced on December 3, 2018. He faces a maximum penalty of 10 years’ imprisonment for the felon-in-possession charge and five years’ imprisonment for the escape charge.
During the course of the trial, the jury heard evidence that Penn was serving a sentence for a federal conviction for being a felon in possession of a firearm. As a part of his federal sentence, Penn was assigned by the Bureau of Prisons to serve out the end of his sentence at a residential reentry center in Hutchins, Texas.
On July 6, 2017, Penn was permitted to leave the residential reentry center to go to work in Fort Worth, Texas. However, instead of going to work, Penn went to an apartment complex in Grand Prairie. Penn accepted a loaded firearm from a family member and shot several rounds at two men, which started a shootout throughout the apartment complex. Penn took the firearm with him as he drove away from the apartment complex.
A police officer observed Penn driving a vehicle in Grand Prairie that matched the description of the suspected shooter’s vehicle and began following Penn. Penn attempted to evade the officer and engaged in a high-speed chase through a residential neighborhood, achieving speeds of 70-80 miles per hour. Penn lost control of the vehicle, drove through a fence of another apartment complex, and crashed into a building. After crashing the vehicle, Penn took the gun with him, brandished it at a bystander, and threw the firearm over the fence before fleeing from police. He did not return to his residential reentry center and was apprehended approximately a month later.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and the Grand Prairie Police Department investigated. Assistant U.S. Attorneys Jamie L. Hoxie and Marcus Busch are prosecuting the case.
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Federal Jury Convicts El Paso Man on Drug Trafficking ChargesRead the Press Release
LUBBOCK, Texas — Following a one-day trial today before Senior U.S. District Judge Sam R. Cummings, a federal jury has convicted Enrique Rodriguez, 37, of El Paso, Texas, for his role in smuggling heroin and cocaine into the United States, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Rodriguez was convicted on one count of conspiracy to distribute and possess with intent to distribute controlled substances, one count of possession with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute 500 grams or more of cocaine. Judge Cummings ordered a presentence report prepared and will set a sentencing date once the presentence report is filed. Rodriguez has been in federal custody since his arrest on April 25, 2018.
According to evidence presented at trial, on April 25, 2018, an Investigator with the 32nd Judicial District Attorney’s Office conducted a traffic stop of a 2007 Ford Escape for an expired vehicle registration sticker. After noticing numerous indicators of suspicious activity, the Investigator had a narcotics detection canine do an open-air sniff around the Ford Escape. The canine alerted to the odor of narcotics coming from the vehicle.
A later search of the 2007 Ford Escape yielded two kilograms of heroin and one kilogram of cocaine. Law enforcement later recovered two more kilograms of cocaine hidden inside the center console of the vehicle.
During the trial, the United States presented evidence that Rodriguez was a Lieutenant in the Barrio Azteca criminal street gang. It also presented evidence that Rodriguez had smuggled the drugs from Mexico into the United States on April 24, 2018, for the Juarez Cartel and its enforcement arm, La Linea. In total, Rodriguez had smuggled approximately 1,000 pounds of heroin and 1,000 pounds of cocaine into the United States.
The defendants’ sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The 32nd Judicial District Attorney’s Office, the Texas Department of Public Safety, and Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Juanita Fielden, Anderson Hatfield, and Jeffrey Haag are prosecuting the case.
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FWC Urogynecology, LLC Agrees to Pay $1.7 Million to Settle False Claims Act Liability for Misuse of Medicare Billing CodesRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces today that FWC Urogynecology, LLC, a network of urogynecology practitioners throughout Florida, has agreed to pay the United States $1,700,000.00 to resolve allegations that it violated the False Claims Act by knowingly billing the government for services that were inflated or that it did not provide.
The settlement relates to FWC Urogynecology’s use of Medicare billing codes with modifier 25. A provider’s use of a modifier on healthcare claims can allow additional payment from government programs. Here, FWC Urogynecology knowingly billed modifier 25 for services that were not billable or that it did not provide.
According to the settlement agreement, from February 1, 2012, through January 12, 2017, FWC Urogynecology knowingly billed modifier 25 to receive additional payment from the United States. For example, FWC Urogynecology’s physicians performed and billed for lavage treatments and pelvic floor therapies and then billed modifier 25 as if they provided another service, although no additional medical care was provided.
“A primary mission of the United States Attorney’s Office is protecting Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Maria Chapa Lopez. “Our Civil Division works tirelessly in the pursuit of providers who bill for services they do not provide to patients.”
“I applaud the Department of Justice and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer,” said Vice Adm. Raquel Bono, director of the Defense Health Agency. “The Department of Justice’s efforts safeguard the health care benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“Misrepresenting alleged services to inflate costs is just plain and simple greed,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in schemes to defraud the American taxpayer.”
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee of an FWC Urogynecology provider, Holly Loebl. Mrs. Loebl sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Mrs. Loebl will receive $306,000 of the proceeds from the settlement with FWC Urogynecology.
This settlement resulted from an investigation coordinated by Assistant U.S. Attorney Jeremy R. Bloor, with assistance from the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services, Office of Inspector General.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case is captioned United States ex rel. Holly Loebl v. Urogynecology Specialists of Florida, LLC and Florida Woman Care, LLC, Docket Number 6:16-cv-1722-Orl-37KRS. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Crips Gang Member Sentenced to Seven Years in Prison for Racketeering Conspiracy in NebraskaRead the Press Release
A violent member of the Omaha, Nebraska area Crips Gang was sentenced today to seven years in prison at the federal courthouse in Omaha, following his Feb. 22 jury trial conviction for participating in a racketeering conspiracy involving acts of violence, including attempted murder and assaults, witness tampering, and drug distribution.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly for the District of Nebraska made the announcement.
Jerell Haynie aka “Bootie,” 35, of Omaha, was sentenced by U.S. Senior District Judge Joseph F. Bataillon, who also ordered him to serve a three year term of supervised release following his prison sentence.
According to evidence presented at trial, from 2008 to 2016, Haynie conspired to conduct and participate in the affairs of the Omaha-area chapter of the Crips, known as the “40th Avenue and 44th Avenue Crips,” through a pattern of racketeering activity. As a long-standing gang member, Haynie engaged in cocaine trafficking and personally committed acts of violence for the gang in furtherance of the racketeering conspiracy. The evidence presented at trial revealed that Haynie attempted to kill a fellow Crips member suspected of cooperating with the police by shooting a gun at him multiple times. According to trial evidence, in another incident of violence, Haynie and other gang members participated in a shooting in which they attempted to kill a police informant who made controlled drug purchases from Crips members.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Commodity Pool Operator Indicted for Defrauding Investors and Attempting to Obstruct JusticeRead the Press Release
A four-count indictment was unsealed today in federal court in Brooklyn, New York, charging commodity pool operator Harris Landgarten with commodities fraud, wire fraud and attempting to obstruct an official proceeding by the Commodity Futures Trading Commission (the “CFTC”) into his fraudulent conduct. Landgarten was arrested on Saturday and is scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara. If convicted of these charges, Landgarten faces a maximum sentence of 25 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter R. Rendina, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and James McDonald, Director, Division of Enforcement, Commodity Futures Trading Commission (CFTC), announced the charges.
“As alleged in the indictment, Landgarten defrauded commodities investors by using their money to pay personal bills, and then compounded his crime by pressuring a victim investor to lie in an attempt to make the investigation go away,” stated United States Attorney Donoghue. “Our message is clear, those who engage in such crimes will be prosecuted to the fullest extent of the law.”
“Mr. Landgarten devised an audacious scheme to swindle his clients who placed their trust in him, then further victimized an investor by allegedly only returning funds if a complaint against him was withdrawn, a classic case of greed to fund his own personal lifestyle,” stated USPIS Inspector-in-Charge Rendina. “Postal Inspectors will never tolerate abuse of the public trust, and will bring those to justice who violate the laws that protect the investing public.”
“As this case shows, the CFTC will work vigilantly to root out fraud from our markets, and we will not be deterred by those who attempt to obstruct our investigations,” stated CFTC Director of Enforcement McDonald. “To ensure both that our markets are protected from fraud and that wrongdoers are held accountable, we will continue to work in parallel with our law enforcement partners, and I am grateful for the work of the United States Attorney’s Office in this case.”
According to court papers, Landgarten operated a commodity pool known as Tradeanedge Members Fund, L.P. The fund’s three investors invested a total of approximately $150,000. From approximately July 2014 to March 2017, Landgarten prepared and sent the investors balance statements that hid the fact that he had spent more than $100,000 of the investors’ money, including on personal expenses such as a home security alarm, cable television and internet service, cell phone, online book subscription and $1,250 monthly payments to himself. After the CFTC initiated an investigation, Landgarten pressured a defrauded investor to submit a false statement to the CFTC and to withdraw the complaint the investor filed with the agency. Landgarten conditioned the return of what remained of the investor’s money upon the investor’s withdrawal of his complaint.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud section. Assistant United States Attorney Hiral Mehta is in charge of the prosecution.
The Defendant: HARRIS LANDGARTEN
Age: 66
Glen Head, New YorkE.D.N.Y. Docket No. 18-CR-328 (NGG)