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18 June 2018
Crane Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Crane, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Kenneth A. Hoffman, 47, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years in federal prison without parole.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The leaders of the drug-trafficking conspiracy were Kenneth R. Friend, 47, of Springfield, and Kenna Harmon, 39, of Republic, Mo., who obtained pound amounts of methamphetamine from sources in Kansas City, St. Louis, and Oklahoma for distribution in the Springfield area. The investigation resulted in the indictment of 29 co-defendants. In total, the Friend/Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.
Hoffman, who pleaded guilty to his role in the conspiracy on Dec. 8, 2016, admitted he purchased methamphetamine from Harmon, which he distributed to others. During the course of the conspiracy, Hoffman was found in possession of over 768.5 grams of methamphetamine and $3,258. After the conspiracy, Hoffman was found by law enforcement in possession of an additional 774 grams of methamphetamine.
Hoffman has a prior state felony drug conviction for the distribution, delivery, or manufacture of a controlled substance.
Friend pleaded guilty on April 11, 2018, and awaits sentencing. Harmon pleaded guilty and was sentenced on May 29, 2018, to 21 years and six months in federal prison without parole.
Harmon’s husband, Daniel Harmon, was also a leader of the drug-trafficking conspiracy. In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm. After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine.
Hoffman is among 24 co-defendants who have been sentenced in this case. The remaining five defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Chinle Man Sentenced to Prison for Reckless Killing on Navajo NationRead the Press Release
PHOENIX – Today, Sanjay Nelson, 25, of Chinle, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 18 months in prison followed by three years of supervised release for recklessly killing a man on the Navajo Nation Indian Reservation. Nelson had previously pleaded guilty to involuntary manslaughter.
The incident occurred on May 1, 2017, when Nelson’s sawed-off shotgun accidentally discharged as the victim was handing the firearm back to Nelson. The victim died as a result of injuries sustained from the gunshot wound. Both Nelson and the victim were enrolled member of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8312-PHX-JJT
RELEASE NUMBER: 2018-086_Nelson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man Sentenced to 78 Months in Prison for Transporting Individuals to Engage in ProstitutionRead the Press Release
PHOENIX – Last week, Jonathan Frank Davis, 38, of Los Angeles, Calif., was sentenced by U.S. District Judge David G. Campbell to 78 months’ imprisonment, to be followed by a five year term of supervised release. Davis had previously pleaded guilty to transportation of individuals to engage in prostitution.
In Nov. 2014, Davis transported the victims from California to Arizona to have them engage in acts of prostitution. Davis was previously convicted of attempted pimping of a minor in Los Angeles County Superior Court and is currently serving a six year prison sentence for that crime. Davis’s federal sentence will run consecutively to his state sentence.
The investigation in this case was conducted by the Scottsdale Police Department with assistance from the Federal Bureau of Investigation Human Trafficking Task Force. The prosecution was handled by former Assistant U.S. Attorney Amy Brown and Assistant U.S. Attorneys Robert Brooks and Margaret Perlmeter, District of Arizona, Phoenix.
CASE NUMBER: 17-CR-841-PHX-DGC
RELEASE NUMBER: 2018-84_Davis
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Brazilian Citizen Admits Transportation of Illegal AliensRead the Press Release
ALBANY, NEW YORK – Rosalvo Caetano, age 46, and a citizen of Brazil, pled guilty today to transporting two illegal aliens within the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Caetano admitted that on May 12, 2018, he drove from Worcester, Massachusetts, to Fort Covington, New York, where he picked up two illegal aliens who had secretly crossed the border from Canada. Border Patrol Agents arrested Caetano and his passengers in Malone, New York. Caetano, himself an illegal alien, was living in Worcester. Following his term of imprisonment, he will be processed by the Department of Homeland Security, for removal proceedings.
Caetano faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Gary L. Sharpe on October 16, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The passengers arrested with Caetano were prosecuted for the misdemeanor offense of entry without inspection. Gabriel Felipe Dias Prado, age 19, and a citizen of Brazil, was convicted of entry without inspection and sentenced to 20 days in jail. Ilcione Bazoni, also known as Carlos Cousa, age 62, and a citizen of Brazil, was convicted of entry without inspection and sentenced to 45 days in jail.
This case was investigated by Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Branchland Man Second to Plead Guilty in Theft of Firearms from Gun DealerRead the Press Release
HUNTINGTON, W.Va. – A Branchland man who helped break in a local pawn shop and steal firearms pled guilty today in federal court in Huntington, announced United States Attorney Mike Stuart. Jonathan Chafin, 18, entered a guilty plea to theft of firearms from a federally licensed firearms dealer before United States District Judge Robert C. Chambers. Stuart applauded the investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the West Hamlin Police Department.
“Theft of firearms is a very serious crime,” said United States Attorney Mike Stuart. “Stolen firearms most often end up in the wrong hands and involved in violent crimes – crimes that could kill law enforcement and other innocent people. We cannot and will not tolerate such reckless disregard for the safety of our citizens. Chafin and his codefendant should pay a serious price for their crimes. ”
On December 7, 2017, Chafin and Robert Lee Reid broke into Sportsmen’s Gun and Pawn located at 6440 US Route 60 in Barboursville to steal firearms. Reid entered Sportsmen’s through a hole he and Chafin broke in the wall and stole a total of 10 firearms. While inside, Reid passed the firearms through the hole in the wall to Chafin who waited outside. Chafin and Reid were subsequently picked up in a vehicle and the vehicle was stopped in West Hamlin by a West Hamlin Police Officer. During the traffic stop, the officer located the stolen firearms in the rear of the vehicle where Chafin and Reid were seated. As part of his plea, Chafin also admitted that he assisted Reid in the May 15, 2017, theft of a total of 164 firearms, also from Sportsmen’s.
Chafin faces up to 10 years in federal prison when he is sentenced on September 18, 2017.
Reid pleaded guilty on June 11, 2017, to multiple federal firearms charges for his role in the thefts and is scheduled to be sentenced on September 10, 2017.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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###Boston Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to failure to register as a sex offender.
Lance Pona, 27, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 19, 2018. Pona has been in custody since he was arrested and charged in April 2018.
Pona is required to register as a sex offender in Massachusetts based on a Colorado state court conviction for unlawful sexual contact in 2009. Following his imprisonment for that conviction, Pona left Colorado for Massachusetts. Despite living in the Boston area for approximately five years, Pona failed to report his presence to the authorities.
Pona faces a sentence of no greater than 10 years in prison, a minimum of five years and up to lifetime supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Beverly Hills Doctor Sentenced to 10 Years in Custody for Massive Workers’ Comp SchemeRead the Press Release
Assistant U.S. Attorneys Valerie Chu (619) 546-6750, Caroline Han (619) 546-6968 or Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – June 18, 2018
SAN DIEGO – Beverly Hills Radiologist Ronald Grusd and two of his corporations, California Imaging Network Medical Group and Willows Consulting Company, were sentenced in federal court today after a jury trial in December resulted in convictions on 39 felony fraud counts.
U.S. District Judge Cynthia A. Bashant imposed a sentenced of 10 years in custody and a fine of $250,000, and remanded Dr. Grusd into custody. His companies, California Imaging Network and Willows Consulting Company, were each required to pay a $500,000 fine, and an additional $15,600 in special assessments.
According to evidence presented at trial, Dr. Grusd and his companies paid kickbacks for patient referrals from multiple clinics in San Diego and Imperial counties in order to fraudulently bill insurance companies over $22 million for medical services.
Dr. Grusd negotiated with various individuals, including a primary treating physician, the payment of kickbacks for the referral of workers’ compensation patients for various medical services, including MRIs, ultrasounds, Shockwave treatments, toxicology testing and prescription pain medications. After the patients were referred for the treatment or service, one of Dr. Grusd’s companies, California Imaging Network Medical Group, would fraudulently bill insurance companies for the procedures, concealing from both the patients and the insurers that substantial kickbacks had been paid in violation of California law. Another of Dr. Grusd’s companies, Willows Consulting Company, funneled the kickback payments to those directing the referral of the patients from the various clinics. Records presented at trial showed that Dr. Grusd paid over $100,000 in bribes to secure the billings for hundreds of patients, with bribes paid on a per-patient or per-body-part formula.
Dr. Grusd and the corporations were originally indicted by a federal grand jury in November 2015, when the U.S. Attorney’s Office and the San Diego District Attorney’s Office, working in conjunction with the Federal Bureau of Investigation and the California Department of Insurance, announced multiple arrests arising from a long-term, proactive health care fraud investigation targeting corruption and fraud in the California Workers’ Compensation system.
Grusd’s practice, California Imaging Network Medical Group, operated clinics throughout California in San Diego, Los Angeles, Beverly Hills, Fresno, Rialto, Santa Ana, Studio City, Bakersfield, Calexico, East Los Angeles, Lancaster, Victorville and Visalia.
In imposing sentence, District Judge Bashant expressed concern that by paying incentives, Dr. Grusd applied pressure on the referring physician, and “made it highly questionable if all services were necessary,” a harm that the laws were designed to prevent.
Judge Bashant found that Dr. Grusd “clearly knew what he was doing.” Dr. Grusd, who had testified as to his extensive education, training, and expertise as a highly-decorated radiologist, claimed on the witness stand at trial that he was confused and did not know that what he was doing was illegal. Judge Bashant rejected this view, stating that Dr. Grusd was someone who decided to “find a way to defraud…then act dumb on the witness stand” when he got caught. She imposed a sentencing penalty for Obstruction of Justice, finding that Grusd unequivocally committed perjury and lied at trial. The judge said she was concerned about the need for both general and specific deterrence: general, because health care fraud is an area where criminals are rarely caught, requiring a significant consequence in order to deter other would-be criminals. In this case, specific deterrence was also applicable, because, in her view, there was a risk that Dr. Grusd could engage in further unlawful conduct in the future. “Dr. Grusd,” she noted, was someone who would “act smart enough to pull the wool over everyone’s eyes.”
“A patient entrusts his life to his physician,” said U.S. Attorney Adam Braverman. “A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder. The court recognized that Dr. Grusd perverted that sacred relationship by buying and selling patients – oftentimes on a per-body-part basis – to fuel his personal lifestyle.”
U.S. Attorney Braverman commended the efforts of the Federal Bureau of Investigation and the California Department of Insurance to investigate these offenses, and thanked San Diego District Attorney Summer Stephan and her office for collaborating with the United States Attorney’s Office on this investigation.
San Diego FBI Special Agent-In-Charge John A. Brown applauded today's sentence as indicative of how the insidious malignancy embodied by the payment of illegal bribes to and from medical providers seriously degrades the patient-physician relationship and places patients at risk. “Operation Backlash exemplifies the positive impact the Federal Bureau of Investigation, working side by side with our investigative partners, the California Department of Insurance, and the San Diego District Attorney's Office, can have against those medical service providers who so easily replace honest patient care with greed. The FBI will continue to leverage these partnerships to expose these schemes and hold physicians and allied medical professionals accountable.”
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
DEFENDANTS Case Number: 15cr2821-BAS
Ronald Grusd Los Angeles, CA
California Imaging Network Medical Group Incorporated in 2007
Willows Consulting Company Incorporated in 2011
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Mail Fraud, Mail Fraud, Wire Fraud, and Health Care Fraud, in violation 18 U.S.C. 1349
Maximum Penalty: 20 years in custody; $250,000 fine, or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Honest Services Mail and Wire Fraud, in violation of 18 U.S.C. Secs. 1341, 1343 and 1346 (18 Counts)
Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Health Care Fraud, in violation of 18 U.S.C. 1347, (14 Counts)
Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
Travel Act, in violation of U.S.C. 1952 (6 Counts)
Maximum Penalty: Five years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
Berkeley County man sentenced to more than 12 years for selling heroinRead the Press Release
MARTINSBURG, WEST VIRGINIA - DeMarco Davis, Jr., also known as “Tipp,” of Inwood, West Virginia, was sentenced today to 151 months incarceration for a drug distribution charge, United States Attorney Bill Powell announced.
Davis, age 36, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin” in March 2018. Davis admitted to selling heroin in January 2017 in Berkeley County.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.Baeppler, Pendergrass honored with Director's AwardsRead the Press Release
WASHINGTON – Assistant United States Attorney Michelle Baeppler and Victim/Witness Specialist Darla Pendergrass were one of 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys Director James Crowell, IV at the 34th Director’s Awards Ceremony Friday in Washington D.C.
The Northern District of Ohio was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
“Michelle and Darla represent the very best of our office and the Justice Department,” said U.S. Attorney Justin E. Herdman. “They work daily to seek justice for crime victims, whether that means using social media postings to prosecute someone urging violence against the members of our military or holding the hand of the victim of a life-altering act of violence.
Baeppler, along with former Assistant U.S Attorney Christos Georgalis Trial Attorney Jennifer Levy from the Justice Department’s Counter Terrorism Section, received an award for Superior Performance in Criminal Matters.
The trio was honored for their groundbreaking work in United States v. McNeil. McNeil, of Akron, posted the names and addresses of more than 100 members of the military urging supporters of the Islamic State to behead, stab and otherwise attack the service members.
McNeil is serving 20 years in prison after pleading guilty to five counts of solicitation to commit a crime of violence and five counts of making threatening interstate communications.
Pendergrass will receive an award for Superior Performance in a Litigation Support Role for her work on a number of cases last year involving sensitive victim-witness issues.
Among the cases Pendergrass was assigned to was the prosecuting the shooting of young woman in Cuyahoga Valley National Park. The victim survived but sustained serious injuries. With Pendergrass’ support, she was able to confront her attacker, who is serving a life sentence in federal prison after pleading guilty to attempted murder, discharging a firearm during a crime of violence and being a felon in possession of a firearm.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Alleged Accomplice of Man Killed During June 16, 2018 APD Officer Involved Shooting Arrested on Federal Armed Bank Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jennifer Rael, 39, of Albuquerque, N.M., made her initial appearance before U.S. Magistrate Judge Kirtan Khalsa in federal court this morning on a criminal complaint charging her with aiding and abetting armed bank robbery, and using a firearm in furtherance of a crime of violence. Rael remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow morning.
The criminal complaint charges Rael with aiding and abetting the armed robbery of the Western Commerce Bank located at 1910 Wyoming Blvd. NW in Albuquerque on June 11, 2018. According to the complaint, a female and a male were involved in the robbery and both were observed getting into a white U-Haul van. Witnesses who viewed photographs from the bank surveillance video of the robbery identified Rael and Richard Rivera as the individuals involved in the robbery.
According to the complaint, FBI investigation revealed that Rael allegedly rented a van, which appears similar to the van on the bank surveillance video, on June 8, 2018, for 24-hours but failed to return it. When the van was not returned, U-Haul reported the van stolen.
The complaint alleges that on June 16, 2018, the FBI received information that a Verizon store had been robbed. The Albuquerque Police Department located Rael and Rivera in the van and pursued them to a grocery store where Rivera was shot and killed and Rael was arrested.
If convicted on the armed bank robbery charge, Rael faces a statutory maximum penalty of 25 years of imprisonment. If convicted on the firearms charge, Rael faces a mandatory minimum of five years of imprisonment that must be served consecutive to any sentence imposed on the armed bank robbery charge. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Jack E. Burkhead is prosecuting the case.
Rael Complaint
16 June 2018
Project Huntington: Operation Saigon Sunset Nets Additional Federal ArrestRead the Press Release
ARREST MADE IN DETROIT OF CO-CONSPIRATOR IN LARGE MULTI-STATE HEROIN AND FENTANYL DISTRIBUTION NETWORK
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement on Friday’s arrest of Terrell Ledez Redd in Detroit:
“On Friday, June 15, 2018, Terrell Ledez Redd, a major target in the Peterson Drug Trafficking Organization (DTO), was arrested in Detroit. Redd was one of 15 defendants charged in a federal indictment as co-conspirators in the Peterson DTO, a large, multi-state heroin and fentanyl distribution network. Redd will be brought to Huntington where this U. S. Attorney’s Office will move to detain him pending his trial. I am proud that my prosecutors have successfully fought for the detention of all the other defendants charged in this indictment and the revolving door is no more.
Project Huntington and Operation Saigon Sunset was a seminal event in the history of Huntington. On April 17, 2018, a strong statement was made by a large-scale, collaborative operation conducted by federal, state and local law enforcement agencies that we will not tolerate drug thugs and criminal elements wreaking havoc in Huntington. Our intention was to take back the city’s streets in the interest of public safety and that’s exactly what we are doing.
Our work continues and we have much work left to do. However, any drug thugs thinking they have escaped the net we’ve cast should be looking over their shoulder because this United States Attorney, in partnership with federal, state and local law enforcement, is willing to knock down their doors, take them into custody and prosecute them to the fullest extent of the law.”
For background information on Project Huntington and Operation Saigon Sunset, please see the press release below dated April 17, 2018.
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TUESDAY, APRIL 17, 2018
Contact: Deanna Eder – (304) 345-2200 www.justice.gov/usao/wvs
MAJOR TAKEDOWN DISMANTLES MULTI-STATE HEROIN AND FENTANYL NETWORK
Project Huntington: Operation Saigon Sunset Takes At Least 450 Grams of Fentanyl – Enough to Kill More than 250,000 People -- Off Streets
Federal, State and Local Enforcement Effort Nets Related Narcotics, Violent Crime and Firearms Targets
HUNTINGTON, W.Va. – United States Attorney Mike Stuart announced today a major takedown of drug traffickers and related drug networks recently indicted by a federal grand jury in Huntington, as well as other narcotics, violent crime and firearm related targets. Joining United States Attorney Stuart in the announcement were Drug Enforcement Administration Special Agent in Charge (SAC) Chris Evans, Federal Bureau of Investigation Assistant Special Agent in Charge (ASAC) Nick Boshears, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge (SAC) Stuart Lowrey, Homeland Security Investigations Assistant Special Agent in Charge (ASAC) Dave Abbate, Huntington Mayor Steve Williams, Huntington Interim Police Chief Hank Dial, West Virginia State Police Captain Mike LaFauci, West Virginia National Guard Adjutant General James Hoyer, Cabell County Prosecuting Attorney Sean “Corky” Hammers, U.S. Marshal Michael Baylous, Cabell County Sheriff Chuck Zerkle, Wayne County Sheriff Rick Thompson, Marshall University Police Chief Jim Terry and AHIDTA State Director Kenny Burner.
In response to a growing opiate epidemic and violent crime in southern West Virginia, United States Attorney Stuart announced the formation of Project Huntington on March 15th alongside federal, state and local law enforcement partners. Today, in a takedown of federal and state targets, nearly 100 defendants have been targeted for arrest including the execution of Operation Saigon Sunset and related search warrants in Huntington, WV. It is believed that today’s actions will result in the dismantling of the Peterson Drug Trafficking Organization (DTO), a major multi-state heroin and fentanyl distribution network. In addition to the dismantling of the Peterson DTO, federal, state and local law enforcement are executing arrests for related violent elements including narcotics and firearms targets.
Today’s actions break down as follows:
- At least 15 individuals involved in the Peterson DTO have been charged in a federal indictment in the Southern District of West Virginia with conspiracy to distribute heroin and fentanyl;
- 15 individuals involved in the Peterson DTO were indicted yesterday in Cabell County Circuit Court on state charges;
- Additional members of the Peterson DTO will be arrested and charged in Detroit;
- 13 individuals involved in narcotics and/or firearms that have been charged in federal indictments in the Southern District of West Virginia; and
- At least 48 individuals are targeted for arrest on various narcotics, violent crime, and firearms related charges at the federal or state level as determined by the circumstances of each matter.
As an indication of the scale of the operation, over 200 federal, state and local law enforcement officers took part in today’s take-down effort. The West Virginia National Guard also provided a number of personnel in a support function to the operation.
Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation was led by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West, with assistance from the Michigan State Police and the Ohio Highway Patrol. The U.S. Attorney’s Office for the Southern District of West Virginia and the Eastern District of Michigan, as well as the Cabell County Prosecuting Attorney’s Office, worked together hand-in-hand to remove these dangerous drug traffickers from the streets of Huntington and Detroit.
In conjunction with the arrest and search warrants executed in Huntington today, it is anticipated federal authorities in Detroit will soon be executing additional arrest warrants and search warrants. Additional charges will be brought against individuals in the Eastern District of Michigan.
“Our great country has never seen drug deaths like we’re seeing today,” Attorney General Jeff Sessions said. “Under President Trump’s strong leadership, the Department of Justice has taken historic new actions to put drug traffickers in jail and keep dangerous drugs out of the wrong hands. I want to thank all of our partners at DEA, FBI, ATF, the Marshals Service, Homeland Security Investigations, as well as our fabulous partners at the state and local levels for their hard work. Today’s charges against at least 90 defendants will help make the people of West Virginia and Michigan safer from the threat of dangerous drugs—and they bring us one step closer to ending the opioid epidemic.”
“Today’s actions have removed from our streets enough fentanyl to kill more than 250,000 people and massive amounts of other drugs that would have wreaked havoc and misery on our good citizens. Today is a turning point for the City of Huntington and in the war against the opiate nightmare,” said US Attorney Stuart. “Best yet, today’s actions have resulted in the destruction of a supply network, the supplier of suppliers of illicit drugs. The peddlers of poisons like heroin and fentanyl are in the crosshairs of this Administration and law enforcement. We still have work to do but the days of havoc, chaos and misery caused by the peddlers of illicit poisons are soon to be over.”
“Today, on tax day, the citizens of Huntington and the surrounding area got their money’s worth, said Huntington Mayor Steve Williams. “Thanks to the coordination of our federal, state and local law enforcement agencies our city is safer. I thank United States Attorney Mike Stuart and Major General Jim Hoyer of the West Virginia National Guard for their steadfast support. The men and women of every law enforcement agency are owed a monumental debt of gratitude for placing their lives in harm’s way to make our families safe.”
The investigation revealed that the Peterson DTO had been operating in Huntington for nearly 15 years, trafficking large amounts of heroin, fentanyl, and cocaine from Detroit to be sold in Huntington in street-level gram quantities. In August 2017, investigators with the Violent Crime and Drug Task Force West (“VCDTFW”) executed a search warrant at Manget Peterson’s residence and an associated hotel room, where Manget Peterson’s workers were distributing heroin. These searches resulted in the seizure of two handguns, over seventy half gram baggies of heroin ready for distribution, and other evidence of drug trafficking. Manget Peterson’s brother, Willie Peterson, was identified as the leader and drug supplier of the organization. Multiple sources advised that the Peterson DTO distributed kilogram quantities of heroin in Huntington, West Virginia, on nearly a weekly basis, using a network of re-distributors.
Law enforcement learned that the DEA in Detroit had opened an investigation into Willie Peterson, after a search of his residence in July 2017 resulted in the seizure of over 360 grams of fentanyl. The DEA’s investigations in West Virginia and in Detroit have resulted in investigators seizing additional drug loads and to the identification of two of Willie Peterson’s drug suppliers in Detroit, Michigan. As of April 3, 2018, law enforcement has seized approximately 760 grams of suspected heroin, 450 grams of suspected fentanyl, and 167 grams of suspected cocaine. The fentanyl seized prior to today’s actions could have resulted in the death of more than 250,000 people.
This morning, Manget Peterson was apprehended in Huntington and his brother, Willie Peterson, was apprehended in Detroit. Malcolm Simmons was also arrested in Detroit this morning.
According to Chris Evans, Special Agent in Charge of DEA’s Louisville Division Office, “Today’s round-up sends a clear message to the people of Huntington and all of West Virginia: drug traffickers who come here to destroy our communities will be aggressively pursued by DEA, in conjunction with West Virginia’s federal, state and local law enforcement components.”
“ATF is committed to working with our federal, state and local law enforcement partners and the United States Attorney’s Office to reduce violent crime in Huntington,” said Stuart Lowrey, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in West Virginia and Kentucky. “Together we will identify and investigate armed violent offenders and their illicit sources of guns. Traffickers and triggerpullers – beware.”
“We are building a collaborative approach here in Huntington,” said Interim Huntington Police Chief Hank Dial. “Day in and day out we go after criminals who are bringing these drugs into our community and work to get people into much needed treatment. We greatly appreciate our state and federal partnering agencies bringing their powerful resources to our community. There is one thing the good people of Huntington and the bad people in Huntington have in common, they both deserve today.”
In the Southern District of West Virginia, 15 individuals have been charged in a federal indictment with conspiracy to distribute heroin and fentanyl. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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15 June 2018
World Elder Abuse Awareness DayRead the Press Release
RALEIGH – Today, as the Department of Justice recognizes World Elder Abuse Awareness Day, Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, reaffirms the Eastern District of North Carolina’s commitment to combating elder abuse and financial exploitation. Mr. Higdon commented: “Our seniors deserve our best efforts to prosecute those who attempt to capitalize on their vulnerabilities. As the Department of Justice continues to collaborate with other Departments to fight elder abuse on the national scale, the Eastern District of North Carolina continues to pursue justice for elderly victims in its district.”
Examples of our commitment to prosecuting crimes targeting our elderly citizens include the following:
On November 22, 2016, a grand jury in the Eastern District of North Carolina returned a 21-count indictment charging Treyton Lee Thomas with wire fraud, bank fraud and money laundering. The indictment alleges that Thomas defrauded individuals and financial institutions of more than six million dollars in an investment fraud scheme. Thomas claimed he would invest the funds conservatively in US Treasury Bills. Instead, Thomas made risky investments in commodities, futures, options, and foreign currency exchange. For many years, Thomas concealed the losses with fictitious financial documents. His elderly father suffered the greatest losses and, sadly, died during the investigation, at age 84. THOMAS’s father was forced into bankruptcy as a result of his son’s fraud. He lost his successful automobile warranty business and his home. The case is scheduled for trial, on November 5, 2018, before the Honorable James C. Dever, III.
On April 24, 2018, a grand jury in the Eastern District of North Carolina returned a 13-count indictment charging ELIZABETH ANN KRINER WILLIAMSON, with ten counts of Bank Fraud, two counts of Aggravated Identity Theft, and one count of Mail Theft. The indictment alleges that beginning in or around April 2015, and continuing until in or around June 2017, WILLIAMSON used her elderly in-law’s bank information to make unauthorized cash withdrawals and purchases in excess of $96,000. If convicted of all counts, WILLIAMSON could face a maximum penalty of thirty seven years imprisonment, a minimum penalty of two years imprisonment, a $1,500,000 fine, and a term of supervised release following any term of imprisonment. Her arraignment is currently scheduled for September 2018.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
United States Attorney Announces the Appointment of a New Federal ProsecutorRead the Press Release
DALLAS, Texas — United States Attorney Erin Nealy Cox announced today the appointment of Rebekah Ricketts as a new Assistant United States Attorney. Ms. Ricketts was sworn in today before Chief Judge Barbara M. G. Lynn. Ms. Ricketts is assigned to the Violent and Major Crimes Section of the office’s Criminal Division.
Ms. Ricketts joins the U.S. Attorney’s Office from Gibson, Dunn & Crutcher LLP, where she was a senior litigation associate. Previously, Ms. Ricketts served clerkships for U.S. District Judge Richard Sullivan in the Southern District of New York, Judge Jose Cabranes on the U.S. Court of Appeals for the Second Circuit, and Justice Clarence Thomas on the U.S. Supreme Court. Ms. Ricketts received her undergraduate degree from the University of Texas and her law degree from Yale University.
“It’s my privilege to lead an office filled with incredibly talented and dedicated people who work tirelessly to carry out our mission of justice and fulfill our promise to the people of our community,” said U.S. Attorney Nealy Cox. “We are proud to welcome Rebekah Ricketts to our office. I know she will make an immediate impact in our District and serve the citizens of the United States with honor and distinction.”
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U.S. Attorney’s Office for Eastern District of Tennessee Supports World Elder Abuse Awareness DayRead the Press Release
KNOXVILLE, Tenn. - Each year, June 15 is recognized as World Elder Abuse Awareness Day. On this day, our nation joins the world in voicing our opposition to elder abuse, neglect, and financial exploitation.
As part of the Elder Abuse Prevention and Prosecution Act, which the president signed into law last October, U.S. Attorney General Jeff Sessions appointed a career prosecutor as the Department’s Elder Justice Coordinator to support and coordinate the Department’s many elder justice efforts. Additionally, Attorney General Sessions directed the Department to appoint an Elder Justice Coordinator in every U.S. Attorney’s Office in the country to work on the elder justice issues most pressing in those communities while also collaborating with state and local partners in combating all forms of elder abuse and fraud. Assistant U.S. Attorney Jennifer Kolman was designated as the Elder Justice Coordinator for the Eastern District of Tennessee.
According to statistics, each year, an estimated $3 billion are stolen or defrauded from millions of American seniors. Criminals prey on some of the most vulnerable Americans to steal their hard-earned savings and their peace of mind through “grandparent scams,” fake prizes or even threats. In a matter of minutes, criminals can take away the secure retirement for which many seniors have spent most of their lives working, saving, and sacrificing.
“Protecting our seniors is a top priority of the U.S. Attorney’s Office for the Eastern District of Tennessee. We will work with our local, state and federal law enforcement partners to prosecute vigorously anyone who chooses to victimize the elderly citizens of our district,” said U.S. Attorney J. Douglas Overbey.
Currently, there are many ways in which our elderly communities in our district are targeted in fraud schemes, committed by family, friends, neighbors and even strangers the elderly victims have never met. One of the most prevalent schemes involves a bogus Lottery Sweepstakes in which elderly victims, who are vulnerable and often isolated from friends and family, receive a phone call informing them that they have won a large sum of money in a lottery specific to senior citizens. They are told that being a senior citizen automatically enrolled them in the sweepstakes. The victims are bombarded with calls telling them to send money for taxes, processing costs, and other bogus charges, often resulting in the depletion of the entire savings of the victims over the course of time. The perpetrators of this fraud are difficult for law enforcement to identify as they often operate outside the country and use phones that cannot be tracked.
Another prevalent fraud scheme targets elderly individuals through the internet. Victims receive a pop up message that their computer has a virus that can be removed for a fee. There is, of course, no virus; however, the victims are often scared into believing there is an urgency to get the virus removed immediately. Depending on the vulnerability of the victim, perpetrators of the fraud will up charge for a continued service for future problems and bombard the victim with instructions to get the money to them in the mail immediately and by overnight services so the victim is less likely to stop payment.
The U.S. Attorney’s Office for the Eastern District of Tennessee has had several successful prosecutions involving elderly victims. Additionally, there are several open cases involving pending litigation, as well as ongoing investigations that may lead to future charges.
In May 2018, Roger Dale Williams pleaded guilty to conducting a Ponzi scheme to defraud primarily elderly individuals, as well as obstructing and impeding the Internal Revenue Service. His sentencing is set for September 13, 2018.
In his plea agreement, on file with U.S. District Court, Williams admitted that he began offering bogus investment opportunities in 2001 as part of membership in an “investment club, “ which included opportunities for stock purchases, business start-ups, and bonds in solicitations that he mailed to victims. In order to perpetuate the scheme, he would also provide victims with false IRS forms pertaining to the purported investments. More recently, Williams extended his fraud scheme to members of the King Branch Road Church of Christ in Pigeon Forge, Tennessee, where he had become a pastor. He solicited funds for the purchase of purported church bonds and claimed the funds would be used for the benefit of the church, particularly to pay off the church’s debt. However, Williams diverted the funds raised for purported church bonds to his own personal use and benefit, as well as used the funds to make lulling payments to investment club members. He convinced several victims to transfer their Individual Retirement Accounts into bogus investments under his control, then he siphoned off the funds for his own use and benefit. Due to Williams’ fraud, several elderly victims lost their entire retirement savings. Assistant U.S. Attorney Matthew Morris represented the United States in these court proceedings.
Also in May 2018, Cynthia Brooks Holt, was sentenced to serve 24 months in prison and ordered to pay $294,470.69 in restitution for aggravated identity theft involving an elderly neighbor.
According to her plea agreement on file with U.S. District Court, Holt and the 92-year-old victim were neighbors in Oak Ridge, Tennessee. After an arson at the victim’s home in November 2011, Holt took on the role of contractor in the rebuilding of the victim’s home. During this time, she had the victim write checks to her for construction costs incurred. However, after the completion of the construction, Holt continue to have the victim write checks to her. Between May 2012 and February 2017, she stole books of checks from two of the victim’s accounts, wrote checks to herself, and had the victim sign. She eventually began forging his signature on these checks resulting in hundreds of unauthorized checks written to herself from the victims account. The total amount of the fraud was $294,470.69. Assistant U.S. Attorney Jennifer Kolman represented the United States in these court proceedings.
“Fraud targeting seniors is so common that no victim should feel ashamed to come forward and report it. It can happen to anyone,” said Attorney General Sessions in his recent remarks to the Elder Justice Coordinating Council.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
U.S. Attorney's Office Recommits to Elder Justice on World Elder Abuse Awareness DayRead the Press Release
LAS VEGAS, Nev. – Nevada’s seniors are some of the most respected and cherished members of our communities, but also some of the most vulnerable members. Today on World Elder Abuse Awareness Day, the U.S. Attorney’s Office reaffirms its commitment to raising awareness and combatting elder abuse and exploitation.
“The U.S. Attorney’s Office has a shared commitment with our partners to protect Nevada’s seniors from abuse, neglect, fraud, and exploitation,” said U.S. Attorney Dayle Elieson for the District of Nevada. “We are dedicated to prosecuting and preventing crimes targeting the elderly, educating seniors and their loved ones, and raising awareness of elder abuse and exploitation.”
Criminals prey on seniors through scams or threats to steal their savings. It is widely estimated that one in ten seniors in the United States is abused, but often that abuse takes the form of financial exploitation or fraud. Each year, an estimated $3 billion is stolen or defrauded from millions of American seniors. Through “grandparent scams,” fake prizes, romance scams, fraudulent IRS refunds, and even outright extortion, criminals try to exploit some of the most vulnerable Americans and steal their life’s savings.
The mission of the Department of Justice’s Elder Justice Initiative is to strengthen awareness about elder abuse and financial exploitation through education, build law enforcement capacity to respond to elder justice issues, and facilitate prosecution efforts to make our community safer for all. In January, AG Sessions ordered all 94 U.S. Attorney’s offices to each designate an elder justice coordinator, who will customize a strategy to protect seniors in their district. This ensures a greater cooperation between the Department of Justice and our law enforcement partners. In 2017, the U.S. Attorney’s Office prosecuted elder crimes to include:
- Daniel Martin Boyar, of Orlando, Florida, pleaded guilty to committing a $3.3 million telemarketing scam to defraud more than 1,000 victims, many of them elderly. He is scheduled to be sentenced on September 24, 2018.
- Angela Fischer, a former Business Manager for a Reno retirement center in Fernley, Nevada, was sentenced to three years’ imprisonment for stealing more than $190,000 from an elderly resident’s bank account.
- Willie James Montgomery, of Las Vegas, was sentenced to 88 months’ imprisonment for targeting the elderly as part of a $1.2 million telemarketing scam.
- Noah Patrick Fields, of Las Vegas, was sentenced to 11 years’ imprisonment for pointing a firearm at an elderly owner of a coin and jewelry store during a robbery.
In addition to the prosecution of criminals, the U.S. Attorney’s Office and its partners participate in public forums educating senior community members and concerned citizens about elder financial fraud. In 2017, the U.S. Attorney’s Office, FBI, and the Las Vegas Metropolitan Police Department conducted four public forums. The forums are intended to raise awareness to the various types of fraud schemes targeting seniors and offers prevention tips on how to protect themselves.
Today, the Department of Justice and Department of Agriculture announced the forming of a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation.
For more information about the Department’s Elder Justice Initiative, visit www.elderjustice.gov to learn more about the ways you can assist in preventing fraud, neglect, and abuse of elders. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
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U.S. Attorney's Office Employees, Local Investigators, Honored Today at Justice Department CeremonyRead the Press Release
WASHINGTON – Members of the U.S. Attorney’s Office for the District of Connecticut and several local investigators were recognized by Deputy Attorney General Rod Rosenstein and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony today in Washington D.C.
A total of 162 individuals were honored at the ceremony held today in the Great Hall at the Robert F. Kennedy Department of Justice Building. The Connecticut honorees received a Director’s Award for Superior Performance by a Litigative Team for their outstanding work investigating and prosecuting the Red Side Guerilla Brims, a violent New Haven-based street gang.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens – the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
In January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms and used drug addicts as straw purchasers of firearms. Members then brought the firearms back to New Haven and distributed them to gang members.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton pleaded guilty to various offenses stemming from this investigation and admitted that he participated in four gang-related murders and one attempted murder. On October 4, 2017, he was sentenced to 40 years of imprisonment.
Director’s Award recipients include Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis, former Assistant U.S. Attorney Robert M. Spector, and Paralegal Specialist Kori Arsenault of the U.S. Attorney’s Office for the District of Connecticut; ATF special agents Daniel Prather, Michael Zeppieri, Scott Riordan, and Brian Ross; Karl R. Jacobson and Misty Fitch of the New Haven Police Department; Craig Burnett of the Connecticut Department of Correction; Assistant U.S. Attorney Joel Casey of the U.S. Attorney’s Office for the District of Maine, and the late Christopher Gardner of the Maine Drug Enforcement Agency.
“’Operation Red Side’ was an intensive investigation that dismantled a violent New Haven street gang whose members and associates were responsible for many murders, attempted murders, shootings, armed robberies and home invasions,” said U.S. Attorney John H. Durham. “This gang trafficked crack cocaine and heroin, ruined lives from New Haven to Bangor, Maine, and used their drug trade to illegally acquire firearms. This investigative and prosecution team solved seven homicides and put more than 20 dangerous individuals behind bars, providing justice for the victims’ families and making the New Haven community a safer place to live. I could not be more proud of their efforts.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport and Hartford.
U.S. Attorney in Washington for World Elder Abuse DayRead the Press Release
Courtesy: Department of Justice Office of Public Affairs Pictured L-R are: Attorney General Jeff Sessions, , Deputy Secretary of Agriculture Stephen Censky, and Tony Roman of Martinsburg, WVMARTINSBURG, WEST VIRGINIA – United States Attorney Bill Powell is working to shed light on elder fraud in rural communities.
Powell, along with Assistant U.S. Attorney Lara Omps-Botteicher, attended an event to recognize World Elder Abuse Day at the Department of Justice Robert F. Kennedy Building’s Great Hall in Washington, D.C. this afternoon. Tony Roman of Martinsburg, a victim of elder fraud in the Northern District of West Virginia, delivered a statement on behalf of himself and other victims.
“With nearly 20 percent of West Virginia’s population 65 or older, our district is especially susceptible to elder fraud cases. We want to send a clear message that we will prosecute those who prey on some our state’s most vulnerable,” said Powell.
Elder fraud can happen to anyone anytime, as victim Tony Roman explained at the event, “I – we –were not victims of a phone scam or a lottery scam, as many times we hear about in the news. I became a victim by simply going to the doctor, as most Americans do every year.”
In Mr. Roman’s case, prosecuted by Omps-Botteicher, those convicted stole identifying information from a medical facility and used that information to create fake driver’s licenses to obtain credit cards and other accounts to defraud.
Wanda Keebler, a retired school teacher, was also defrauded by the same defendants that defrauded Roman. When this case came to light, her husband was dying. She admits her focus wasn’t on her bank accounts, it was on her husband and the medical care he was receiving from the same hospital from which her information was stolen. When she was notified that she was a victim, she was extremely upset. She said, “I was school teacher for 35 years, and for the first time, I felt like an idiot.”
The message sent at today’s event was that it is easy to fall victim to those preying on the elderly. All residents should monitor their financial accounts and credit consistently. Always report any suspicious activity.
The United States Department of Justice (DOJ) and Department of Agriculture (USDA) are forming a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation.
U.S. Attorney Statement on Joint Dismissal of Springfield Veterans Affairs CaseRead the Press Release
PORTLAND, Ore. – Today, the U.S. Attorney’s Office and the U.S. Department of Veterans Affairs (VA) announced that a joint stipulation of dismissal has been reached with Springfield, Oregon veteran Michael Williamson.
Mr. Williamson is a U.S. Air Force Veteran with a 100% disability rating due to his diagnosis of amyotrophic lateral sclerosis (“ALS”). The VA has contracted for Mr. Williamson’s in-home care for 19 years. Unfortunately, late last year his contracted provider abruptly submitted a 90-day notice to discontinue his care, citing safety concerns. After Mr. Williamson filed suit, the VA in coordination with the U.S. Attorney’s Office worked collaboratively with Mr. Williamson and his attorneys from Disability Rights Oregon, to find additional options for in-home providers that could meet the high level of care needed in this case.
“We are pleased to announce that the VA and Mr. Williamson have reached a joint agreement to dismiss this case,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The parties have worked hard to reach consensus on this matter. He is an honored veteran and deserving of thoughtful and attentive care.”
“I’m pleased we were able to achieve a successful outcome that honored our veteran and his family’s wishes while also providing a safe environment for his care,” said David Whitmer, Interim Medical Center Director, Roseburg VA Healthcare System. “Because of the complex care needed by an ALS patient, this took some time to negotiate and ensure a home based solution that could meet all of the requirements.”
Two Mexican Women Arrested, Charged with Possession of Suspected FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Maria Guadalupe Martinez-Plascencia, 47, and Claudia Anel Cuevas-Sandoval, 37, both of Guadalajara, Mexico, were arrested and charged by criminal complaint with possession with intent to distribute Schedule I and Schedule II controlled substances. The charges carry a maximum penalty of 10 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that according to the complaint, in early June 2018, the Drug Enforcement Administration and the Niagara Frontier Transportation Authority Police began investigating the activities of Martinez, who was associated with an individual arrested on May 26, 2018, in Laredo, Texas. The individual was in possession of a backpack and a laptop bag that concealed heroin. Martinez was identified in a Customs and Border Protection report, which included instructions to conduct an inspection of the defendant during any border crossing.
On June 9, 2018, the NFTA identified Martinez and Cuevas traveling together. The defendants purchased tickets for a Greyhound bus departing from Philadelphia, PA, late in the evening of June 9, 2018, and arriving in Buffalo on June 10, 2018. When the defendants arrived, law enforcement officers surveilled them at the Hyatt Regency Buffalo Hotel in downtown Buffalo.
In the early morning hours of June 11, 2018, officers executed a New York State search warrant in the room the defendants were staying in. During the search, officers found two backpacks and two laptop bags in plain view which were heavy but contained no visible contents. Sewn into the baggage were 10 packages containing suspected fentanyl or fentanyl analogue. Martinez and Cuevas were arrested at that time.
Field testing of the suspected fentanyl was not conducted because of the significant threat to law enforcement personnel, first responders, and members of the public presented by fentanyl, fentanyl-related substances, synthetic opioids, and other powder substances.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and are being held pending a detention hearing on June 18, 2018 at 1:00 p.m.
The complaint is the result of an investigation by the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Men Charged with Interstate Transport of $2.3 Million Worth of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Two men have been charged for their alleged roles in transporting $2.3 million worth of stolen perfume products out of New Jersey, U.S. Attorney Craig Carpenito announced today.
Yunior Estevez, 33, of Hollywood, Florida, and Carlos Duvergel, 53, of Colorado Springs, Colorado, were both charged by complaint with conspiracy and with the interstate transport of stolen property. Estevez will make his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court. Duvergel made his initial appearance on June 6, 2018, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on bail on June 7, 2018.
According to documents filed in this case and statements made in court:
In November 2017, the defendants and others obtained unauthorized access to a warehouse storing perfume products in Edison, New Jersey, and drove away with at least one tractor-trailer filled with stolen perfume products. Toll plaza footage from the N.J. Turnpike revealed Estevez to be driving the tractor-trailer out of New Jersey and into Delaware. The value of the stolen perfume products is estimated to be $2.3 million.
The conspiracy count is punishable by a maximum potential penalty of five years in prison. The charge of interstate transport of stolen property is punishable by a maximum penalty of 10 years in prison. Both charges also carry a $250,000 fine, or twice the gross gain or loss from the offenses.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the Edison Police Department, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
Two Malden Residents Charged with Defrauding Their EmployerRead the Press Release
BOSTON – Two Malden men were charged today in federal court in Boston for their roles in a wide-ranging conspiracy to defraud their employer, a large facilities services company with offices in the Greater Boston area.
Lou Amaral, 52, was charged by information with one count of conspiracy to commit honest services mail fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of tax evasion. Vence Pires, 58, was charged by information with one count of conspiracy to commit wire fraud.
According to court documents, Amaral and Pires worked for the same facilities services company in the Greater Boston area. Amaral was the supervisor of the Special Services department, and as such, he had the ability to hire employees and to contract with third-parties to provide temporary labor. Pires was an account manager who worked for Amaral in Special Services. Amaral first began by taking bribes from a temporary labor company in order to steer contracts to that company. In 2014, Amaral opened up his own temporary labor company and, with the help of Pires, awarded himself the temporary labor contracts. Through this scheme, Amaral made approximately $10 million in revenue over a three-year period, resulting in harm to his employer of more than $4 million.
Amaral has agreed to forfeit approximately $2 million that has been seized from him.
Pires faces a maximum sentence of five years in prison, up to three years of supervised release, and a fine of up to $250,000. Amaral faces a maximum sentence on the conspiracy and money laundering counts of up to 20 years in prison, three years of supervised release, and a fine of $250,000 on each count. Amaral faces a maximum sentence on the tax evasion count of up to five years in prison, supervised release for one year, and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case.
Two Jamestown Men Indicted on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Tyler Craig Anderson, 27, and Robert Lincoln, 26, both of Jamestown, NY, with conspiracy to make false statements to purchase firearms, which carries a maximum penalty of five years in prison. In addition, Anderson is charged with possession with intent to distribute cocaine and marijuana, maintaining a drug involved premises, and possession of a firearm in furtherance of drug trafficking crimes which are punishable by a mandatory minimum five years in prison and a maximum of life in prison.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment and previously filed complaint, the Ellicott Police Department received complaints from area residents regarding suspected drug dealing at Anderson’s residence. According to residents, there were frequent and short visits by a number of people driving a variety of vehicles. As a result, law enforcement officers conducted controlled purchases of cocaine from Anderson at his residence on Willard Street Extension. Law enforcement officers learned during those controlled drug sales that Anderson had a number of firearms at his residence.
On March 9, 2018, law enforcement officers executed a search warrant at Anderson’s residence and recovered cocaine, marijuana, drug paraphernalia, 14 firearms, and ammunition. The defendant was taken into custody at the scene.
Subsequent investigation determined that at least three of the firearms were purchased by defendant Lincoln at a sporting goods store in Russell, Pennsylvania. Lincoln completed the required federal forms stating that he was the purchaser of the firearms, but shortly thereafter, he turned the firearms over to Anderson.
According to the complaint, law enforcement officers reviewed a Facebook page believed to be operated by defendant Anderson. One post read, "I gotta bout 30 guns and I love em all the same bang bang 'merica." Another Facebook user commented, "And get them all taken the same when they say you can't have them anymore." Anderson responded, "They' re gonna have to kill me mane [sic]."
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Ellicott Police Department, under the direction of Chief William L. Ohnmeiss, Jr.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Turtle Creek Brothers Charged with Violating Federal Drug, Gun and Witness Tampering LawsRead the Press Release
PITTSBURGH – Two residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug, firearms, and witness tampering laws, United States Attorney Scott W. Brady announced today.
The six-count Indictment, returned on June 13 and unsealed today, named brothers Julian Gray, age 26, and Brandon Gray, age 24, both of Turtle Creek, Pennsylvania, as the defendants.
According to the Indictment, on April 24, 2018, Julian Gray and Brandon Gray conspired with each other and others to distribute and to possess with intent to distribute quantities of heroin, cocaine, and cocaine base. The Indictment also alleges that on April 24, 2018, Julian Gray possessed a Ruger .380 LCP caliber handgun; a Mossberg 12 gauge shotgun; and, a black .22 caliber rifle bearing, in furtherance of a drug trafficking crime. The Indictment further alleges that on April 24, 2018, Brandon Gray possessed a Mossberg .22 caliber rifle, after having been convicted of a previous felony offense (robbery). Lastly, the Indictment alleges that from April 25, 2018, to June 6, 2018, Julian and Brandon Gray did knowingly corruptly persuade a person whose identity is known to the grand jury, and attempt to do so, with the intent to hinder and prevent the communication to a law enforcement officer of information relating to the commission of a Federal offense.
Julian Gray faces a maximum total penalty of up to life imprisonment, a fine of $2,500,000, or both. Brandon Gray faces a maximum total penalty of up to 70 years’ imprisonment, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms, and Explosive (ATF) conducted the investigation leading to the Indictment in this case with valuable assistance from the Wilkins Township Police. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An Indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulsa Man Sentenced to 46 Months in Prison for RobberyRead the Press Release
Chief District Judge Gregory K. Frizzell sentenced Robert Chebon Johnson, 46, of Tulsa, to 46 months in prison followed by 3 years of supervised release for Robbery. Johnson must also pay restitution in the amount of $15,991.00.
On May 31, 2017, Johnson and another individual covered their faces and robbed Cash America Pawn at 11th and Memorial with a hammer. Johnson and the other individual stole jewelry, laptop computers and various firearms. While running from the business, a citizen began chasing them, firing a shot into the air, which caused Johnson to stop running until the police arrived.
United States Attorney Shores stated, “Robberies routinely are violent offenses that threaten the lives of employees and customers. My office is focused on reducing violent crimes and we will continue to work with law enforcement to improve the safety of our community by aggressively prosecuting these cases.”
The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department. Assistant United States Attorney Dennis A. Fries handled the prosecution of this case.
Theranos Founder and Former Chief Operating Officer Charged in Alleged Wire Fraud SchemesRead the Press Release
SAN JOSE - A federal grand jury has indicted Elizabeth A. Holmes and Ramesh “Sunny” Balwani, announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; Food and Drug Administration (FDA) Commissioner Scott Gottlieb; and U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez. The defendants are charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud. According to the indictment returned yesterday and unsealed today, the charges stem from allegations Holmes and Balwani engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients. Both schemes involved efforts to promote Palo Alto, Calif.-based Theranos.
Holmes, 34, of Los Altos Hills, Calif., founded Theranos in 2003. Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data. Balwani, 53, of Atherton, Calif., was employed at Theranos from September of 2009 through 2016. At times during that period, Balwani worked in several capacities including as a member of the company’s board of directors, as its president, and as its chief operating officer.
According to the indictment, Holmes and Balwani used advertisements and solicitations to encourage and induce doctors and patients to use Theranos’s blood testing laboratory services, even though the defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests. The tests performed on Theranos technology, in addition, were likely to contain inaccurate and unreliable results.
The indictment alleges that the defendants used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to defraud potential investors. Specifically, the defendants claimed that Theranos developed a revolutionary and proprietary analyzer that the defendants referred to by various names, including as the TSPU, Edison, or minilab. The defendants claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. The defendants also represented that the analyzer could produce results that were more accurate and reliable than those yielded by conventional methods—all at a faster speed than previously possible.
The indictment further alleges that Holmes and Balwani knew that many of their representations about the analyzer were false. For example, allegedly, Holmes and Balwani knew that the analyzer, in truth, had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines.
“This district, led by Silicon Valley, is at the center of modern technological innovation and entrepreneurial spirit; capital investment makes that possible. Investors large and small from around the world are attracted to Silicon Valley by its track record, its talent, and its promise. They are also attracted by the fact that behind the innovation and entrepreneurship are rules of law that require honesty, fair play, and transparency. This office, along with our other law enforcement partners in the Bay Area, will vigorously investigate and prosecute those who do not play by the rules that make Silicon Valley work. Today’s indictment alleges that through their company, Theranos, CEO Elizabeth Holmes and COO Sunny Balwani not only defrauded investors, but also consumers who trusted and relied upon their allegedly-revolutionary blood-testing technology.”
“This indictment alleges a corporate conspiracy to defraud financial investors,” said Special Agent in Charge Bennett. “This conspiracy misled doctors and patients about the reliability of medical tests that endangered health and lives.”
“The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including diagnostics. The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to Theranos executives and others that these types of actions will not be tolerated,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations.
“The United States Postal Inspection Service has a long history of successfully investigating complex fraud cases,” said Inspector in Charge Rafael E. Nuñez. “Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. The collaborative investigative work on this case conducted by Postal Inspectors, our law enforcement partners, and the United States Attorney’s Office illustrates our efforts to protect both consumers and investors.”
The Indictment Alleges That Doctors And Patients Were Defrauded
The indictment alleges Holmes and Balwani defrauded doctors and patients by making false claims concerning Theranos’s ability to provide accurate, fast, reliable, and cheap blood tests and test results, and through omissions concerning the limits of and problems with Theranos’s technologies. The defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests, including the tests for calcium, chloride, potassium, bicarbonate, HIV, Hba1C, hCG, and sodium. The defendants nevertheless used interstate electronic wires to purchase advertisements intended to induce individuals to purchase Theranos blood tests at Walgreens stores in California and Arizona. Through these advertisements, the defendants explicitly represented to individuals that Theranos’s blood tests were cheaper than blood tests from conventional laboratories to induce individuals to purchase Theranos’s blood tests.
Further, the indictment alleges that based on the defendants’ misrepresentations and omissions, many hundreds of patients paid, or caused their medical insurance companies to pay, Theranos, or Walgreens acting on behalf of Theranos, for blood tests and test results, sometimes following referrals from their defrauded doctors. In addition, the defendants delivered to doctors and patients blood results that were inaccurate, unreliable, and improperly validated. The defendants also delivered to doctors and patients blood test results from which critical results were improperly removed.
The indictment describes a number of schemes that defendants allegedly employed to mislead investors, doctors, and patients. For example, with respect to investors, defendants performed technology demonstrations during which defendants intended to cause potential investors to believe blood tests were being conducted on Theranos’s proprietary analyzer when, in fact, the analyzer really was running a “null protocol” and was not testing the potential investor’s blood. Similarly, defendants purchased and used commercially-available analyzers to test patient blood, while representing to investors that Theranos conducted its patients’ tests using Theranos-manufactured analyzers.
The Indictment Alleges That Investors Were Defrauded
According to the indictment, the defendants also allegedly made numerous misrepresentations to potential investors about Theranos’s financial condition and its future prospects. For example, the defendants represented to investors that Theranos conducted its patients’ tests using Theranos-manufactured analyzers; when, in truth, Holmes and Balwani knew that Theranos purchased and used for patient testing third party, commercially-available analyzers. The defendants also represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, the defendants knew Theranos would generate only negligible or modest revenues in 2014 and 2015.
Further, defendants allegedly represented to investors that Theranos had a profitable and revenue-generating business relationship with the United States Department of Defense and that Theranos’s technology had deployed to the battlefield when, in truth, Theranos had limited revenue from military contracts and its technology was not deployed in the battlefield. In addition, the defendants represented to investors that Theranos would soon dramatically increase the number of Wellness Centers within Walgreens stores when, in truth, Holmes and Balwani knew by late 2014 that Theranos’s retail Walgreens rollout had stalled because of several issues, including that Walgreens’s executives had concerns with Theranos’s performance.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The indictment charges each defendant with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and nine counts of wire fraud, in violation of 18 U.S.C. § 1343. If convicted, the defendants face a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for each conspiracy count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Both defendants appeared today before U.S. Magistrate Judge Susan van Keulen for their initial appearances. The matter was assigned to the Honorable Lucy H. Koh, U.S. District Judge, for further proceedings.Assistant U.S. Attorneys Jeff Schenk, Robert S. Leach, and John C. Bostic are prosecuting the case with the assistance of Laurie Worthen and Bridget Kilkenny. The prosecution is the result of an investigation by the FDA Office of Criminal Investigations, the FBI, and the US Postal Inspection Service.
Texas Man Sentenced to Prison for Money Laundering ConspiracyRead the Press Release
A Houston, Texas man was sentenced today to 58 months in prison for his role in a money laundering conspiracy, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
According to documents and information provided to the court, Marcus T. Weathersby conspired with others to facilitate the fraudulent sale of second-hand prescription medications to a Utah-based wholesale distributor. This scheme involved purchasing bottles of prescription medications from illegitimate sources and then selling the medications to another wholesale distributor who then sold them to pharmacies as new. Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase, or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer.
Weathersby, in approximately December 2010, established Acacia Pharma Distributors Inc. (Acacia), a Mississippi corporation. Nearly eight months later, Weathersby directed another individual to incorporate Four Corner Suppliers Inc. (Four Corner) in Mississippi. Acacia and Four Corner purported to be legitimate wholesale distributors of pharmaceuticals licensed and operating in Mississippi, however, in reality Weathersby and others used these corporations to facilitate the illegal sale of second-hand prescription drugs.
Weathersby also opened and caused others to open bank accounts in the names of Acacia and Four Corner. Between February 2011 and July 2012, Weathersby withdrew and led others to withdraw over $2.9 million in cash from these bank accounts and to structure these cash withdrawals in amounts under $10,000 in order to prevent the banks from complying with their legal obligation to prepare currency transaction reports for each cash transaction over $10,000.
In addition to the term of imprisonment, U.S. District Court Chief Judge Lee H. Rosenthal ordered Weathersby to serve three years of supervised release, and imposed a money judgment against the defendant in the amount of $2,991,867.76, which will be applied as criminal restitution.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Patrick thanked special agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Department of Health and Human Services, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Syracuse Man Arrested, Charged with Attempting to Have Sex with A MinorRead 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 Charlie P. Conant, 27, of Syracuse, NY, was arrested and charged by criminal complaint with online enticement of a minor. The charge carries a mandatory minimum penalty of 10 years in prison, and a maximum of life.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, on February 27, 2018, an undercover New York State Police Investigator (UC) discovered a personal ad on a Syracuse, NY, website that appeared to be targeting minors for sex.
The UC responded to the ad via email, posing as a 12-year-old female. The UC wrote, “Hi!! Idk if Im 2 young for u but wanted 2 say hi! Soooo hi!!! Lmao :).” The defendant responded, “Hey how you doin? How old are you? What do you want to get into? Can I see pics of you?” After the UC responded, I’ll b 13 in a few months,” Conant responded, “That’s perfect. I’d love to see pics of you.” The UC sent a picture to the defendant who asked for more pictures. Communication between the UC and Conant via text message. The defendant also continued to ask for more pictures including naked photos.
There was no communication between Conant and the UC between March 29, 2018, and May 15, 2018. On that date, the defendant sent a text message to the UC stating “I really miss you princess.” The UC responded, “Thought u forgot bout me.” The UC and the defendant continued to communicate via text message. During the exchanges, Conant indicated that he wanted to meet with the child in Seneca Falls, NY, for the purpose of having sex. On June 14, 2018, the defendant traveled to Seneca Falls to meet the UC while “the minor’s” grandmother was supposedly at work. After Conant arrived, he was arrested.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and is being held pending a detention hearing on June 21, 2018 at 2:00 p.m.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Richard Allen, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Supplier of Southeastern New Mexico Drug Trafficking Organization Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Marcos A. Martinez, 31, of Roswell, N.M., pled guilty yesterday afternoon in in Las Cruces, N.M., to federal methamphetamine trafficking and firearms charges filed as the result of a multi-agency investigation into a criminal organization that was trafficking large quantities of methamphetamine and firearms in southeastern New Mexico.
The investigation, which was initiated by the DEA, ATF and the HIDTA Region VI Pecos Valley Drug Task Force, in spring 2017, initially targeted a methamphetamine trafficking organization operating in southeastern New Mexico supplied by Martinez, and also allegedly supplied by Daniel P. Bruton, 39, of Artesia, N.M. The investigative team quickly expanded to include HSI, the U.S. Marshals Service, the U.S. Border Patrol, the New Mexico State Police, the Chaves County Metro Narcotics Task Force, and the Eddy County Sheriff’s Office, and the investigative targets expanded to include other alleged drug traffickers in Eddy and Chaves Counties. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the investigation, law enforcement authorities seized more than 2.5 kilograms of methamphetamine and 44 firearms.
Martinez, Bruton and eight co-defendants were charged in a 34-count indictment filed on Oct. 3, 2017. The indictment alleged that Martinez, Bruton and their co-defendants conspired to violate the federal narcotics trafficking and firearms laws from May 2017 through Oct. 2017 in Eddy and Chaves Counties and elsewhere in New Mexico. The indictment includes 55 overt acts that discussed the conspiracy’s operations, including the quantities of methamphetamine, ranging from multiple ounces to five pounds, allegedly distributed by the defendants on a routine basis. It also describes the firearms, including assault rifles that allegedly were to be smuggled into Mexico, allegedly used by the defendants in relation to their drug trafficking activities.
During yesterday’s proceedings, Martinez pled guilty to all of the charges against him in the indictment, including a methamphetamine trafficking conspiracy count, four counts of using a communication facility in furtherance of drug trafficking crimes, two counts of possessing methamphetamine with intent to distribute, one count of distributing methamphetamine, and one count of smuggling goods from the United States.
In entering the guilty plea, Martinez admitted that on numerous occasions between May 2017 and Sept. 2017, he conspired with his co-conspirators to distribute more than 2,126.98 grams of methamphetamine in Eddy County and elsewhere. Martinez also admitted that in Oct. 2017, he conspired with another individual to provide firearms to be illegally smuggled from the United States to Mexico but the firearms were seized from him by the police at a traffic stop while he was traveling from Roswell to Albuquerque, N.M. Had the firearms not been seized, it was Martinez’s intention to take the firearms to California to be illegally exported to Mexico.
At sentencing, Martinez faces a statutory mandatory minimum penalty of ten years and a maximum of life in prison. Martinez has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Four of Martinez’s co-defendants have entered guilty pleas: Chelcy A. Vasquez, 26, of Dexter, N.M., pled guilty on Feb. 5, 2018; Erick L. Miranda-Santos, 22, of Artesia pled guilty on April 5, 2018; and Isela Hernandez, 26, of Roswell pled guilty on April 16, 2018. Their sentencing hearings have yet to be scheduled. Kenneth R. Dickerson, 56, of Carlsbad pled guilty on Feb. 20, 2018, and is currently scheduled for sentencing in June 2018.
The remaining five co-defendants have entered pleas of not guilty to the charges against them. Charges in indictments and criminal complaints are only accusations. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the DEA, ATF, HSI, the U.S. Marshals Service, the U.S. Border Patrol, the New Mexico State Police, the HIDTA Region VI Pecos Valley Drug Task Force, the HIDTA Region VI Chaves County Metro Narcotics Task Force, and the Eddy County Sheriff’s Office. Assistant U.S. Attorneys Clara N. Cobos and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the cases filed as the result of the investigation.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. 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.
Superseding Indictment Brought Against Bakersfield Man Who Allegedly Conspired with Police Officers to Sell Methamphetamine and MarijuanaRead the Press Release
BAKERSFIELD, Calif. — On Thursday, a superseding indictment was brought against Noel Carter, 45, of Bakersfield, adding charges of bank fraud and making a false statement on a loan application, U.S. Attorney McGregor W. Scott announced.
On September 14, 2017, Carter was charged in an indictment for conspiring with Bakersfield Police Department officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers.
The superseding indictment re-alleges that from April 2012 to August 2015, Carter conspired with Diaz and Mara who deliberately failed to submit the seized drugs into the BPD evidence room, and instead provided the stolen narcotics to Carter so Carter could sell those narcotics for profit. The indictment also alleges that Mara took marijuana and provided it to Carter to process so it was suitable for sale. Finally, the indictment alleges that Carter conspired with Mara to unlawfully manufacture, process, and sell marijuana for profit.
Earlier court records indicate that in May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.
The superseding indictment adds five additional charges of bank fraud against Carter, alleging that in 2016 and 2017 Carter was a manager of a virtual office and short-term office rental business known as Pacific Workplaces located in the Bank of America Building, 5th Floor, 1430 Truxtun Avenue in Bakersfield. As a contract manager for the Pacific Workplaces office, Carter was responsible for the overall operation of the office, which included the rental of space, sale of services, and the invoicing and collection of payments from clients who used the services and facilities of Pacific Workplaces. Carter was required to deposit payments of Pacific Workplaces’ customers into company checking accounts. Carter is charged with knowingly and fraudulently negotiating Pacific Workplaces customers’ checks and depositing those checks into his personal bank account at Chase Bank, for his own personal gain.
The superseding indictment also adds one additional count of making false statement on a loan application with a federally insured financial institution. The count alleges that on November 3, 2017, Carter knowingly made false statements in a loan application for the purchase of a new Mercedes-Benz automobile. Carter claimed that he earned a gross monthly income of $20,000 from Pacific Workplaces, and provided false pay stubs in support of this statement, when in fact, his actual monthly income from Pacific Workplaces was approximately $4,000.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the IRS Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
If convicted, Carter faces a maximum statutory penalty of life in prison and a $10 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Seabrook Resident Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Richard Silvestri, 49, of Seabrook, New Hampshire, pleaded guilty to two counts of producing child pornography.
According to court documents and statements made in court, sometime before December 7, 2017, Silvestri produced visual depictions of an eight-year-old minor female engaging in sexually explicit activity. Silvestri used a Samsung cellular phone to produce the images. Silvestri’s activities were discovered based on a lead from an undercover agent of the Federal Bureau of Investigation (FBI) based in Alaska. That agent notified the Bedford office of the FBI and Silvestri was arrested on December 7, 2017 in Seabrook.
A sentencing hearing is scheduled for September 27, 2018.
“The production of child pornography is a terrible crime that causes real damage to its young victims,” said U.S. Attorney Murray. “The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to locate and prosecute individuals who engage in this unlawful conduct and to seek justice for the victims whose lives are affected by these predators.”
“Mr. Silvestri is finally accepting responsibility for his atrocious actions. He repeatedly abused an innocent child. Few, if any, crimes are more outrageous. That’s why the FBI will continue to work closely with our law enforcement partners to protect our children from predators like him,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.
The FBI and the Seabrook Police Department participated in the investigation of this case. Staff from the Rockingham County Child Advocacy Center also assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon prosecuted the case.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Sacramento Man Sentenced to 2.5 Years in Prison for Possessing Cocaine with Intent to DistributeRead the Press Release
SACRAMENTO, Calif. — Robert Thomas Honeycutt, 30, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years and six months in prison for possessing cocaine with intent to distribute, U.S. Attorney McGregor W. Scott announced. Honeycutt was ordered to surrender to federal custody on August 3, 2018.
According to court documents, on May 2, 2017, officers in Nevada County pulled over a suspicious vehicle driving with expired registration tags. Officers determined that the vehicle was registered to Honeycutt and identified him as the passenger. They also determined that Honeycutt was on searchable probation.
During a search of Honeycutt’s vehicle, officers found approximately 28 grams of cocaine under the driver’s seat and items consistent with narcotics distribution including a digital scale and 300 small baggies. During a search of Honeycutt’s person, officers found approximately 245 grams of cocaine concealed in his pants. During a later search of Honeycutt’s residence, officers found additional cocaine, digital scales, and small baggies.
On March 16, 2018, Honeycutt pleaded guilty to one count of possession with intent to distribute cocaine.
This case was the product of an investigation by the Drug Enforcement Administration, the Nevada County Sheriff’s Office, the Nevada City Police Department, and the Grass Valley Police Department. Special Assistant U.S. Attorney Robert J. Artuz and Assistant U.S. Attorney Justin Lee prosecuted the case.
Romanian Men Ordered to Prison for Roles in ATM Skimming CrewRead the Press Release
HOUSTON – Three Romanian men have been ordered to prison for their roles in the placement of card skimmers on ATMs and stealing money from bank accounts, announced U.S. Attorney Ryan K. Patrick. Cristian Viorel Ciobanu, 31, Bogdan Mirel Constantin, 34, both of Romania, pleaded guilty Oct. 27, 2017. A third defendant – Daniel Marius Muraretu, 40, also of Romania – entered his plea Jan. 26, 2018.
Ciobanu pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. Today, U.S. District Judge Ewing Werlein Jr. ordered him to serve 42 months for the fraud in addition to another two years for the identity theft which must be served consecutively for a total of 66 months in federal prison.
Constantin pleaded guilty to theft aggravated identity theft and received a mandatory two years in prison, while Muraretu received 37 months for his conviction of the conspiracy charge. They were all also ordered to pay restitution of $390,487.64
At the hearing, Ciobanu told the court he had made a mistake. In handing down Ciobanu’s sentence, Judge Werlein noted that he had committed one crime after another after another in Pennsylvania, Virginia, Texas and then California. “You did not just make a mistake. This was not just a matter of you bumping into someone,” Werlein said. “You claim you are a good man – but this is not the mark of a good man.”
Ciobanu, Muraretu and Constantin were part of a group that traveled to the United States and then to Pennsylvania, Virginia and Texas to steal money from victims’ bank accounts. Further, after fleeing arrest in 2016, Ciobanu was arrested in 2017, apparently committing the same crimes in California.
In each state, the co-conspirators used card skimmers to steal ATM card numbers as customers inserted their cards into the machines. They also used hidden cameras to record customers as they entered their PINs. Armed with this stolen data, they then made their own fake ATM cards. They then used those fake cards and stolen PINs to withdraw at least $390,495.84 from customer accounts. Constantin joined the group in Houston.
All have been and remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Rhode Island Man Charged in Superseding Indictment with Three Additional Bank RobberiesRead the Press Release
BOSTON - A Rhode Island man was charged in federal court in Boston yesterday with three additional counts of bank robbery.
Stephen A. Davidow, 55, of Pawtucket, R.I., was charged in a superseding indictment with four counts of bank robbery. Davidow was previously charged with one count of bank robbery.
According to court documents, between Dec. 6 and Dec. 11, 2017, an individual, later identified as Davidow, robbed four banks in the Greater Boston area. Based on the physical location of the banks, bank surveillance footage, the bank tellers’ descriptions of the robber, and other similarities, law enforcement determined that the same individual was involved in each robbery. On Dec. 15, 2017, having distributed images of the alleged perpetrator on the local news, law enforcement received a tip that the suspect was Davidow. Photos of Davidow were shown to one of the tellers who positively identified Davidow as the man who robbed the bank.
During the time of the robberies, Davidow was on supervised release following a 2007 conviction for bank robbery in Rhode Island. He was arrested on Dec. 18, 2017, on a Rhode Island federal warrant prior to being transported to Massachusetts in January 2018.
Each count provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; John Gibbons, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner William Evans; and Boston University Police Chief Kelly A. Nee made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Prison Test Shows Micro-Jamming May Counter Criminal Threat of Contraband Cell PhonesRead the Press Release
The National Telecommunications and Information Administration (NTIA) has posted a report detailing its findings from the Jan. 17, 2018 test of micro-jamming technology conducted at the Federal Correctional Institution at Cumberland, Maryland.
Data from the test show that the micro-jammer’s signal disrupted commercial wireless signals inside the prison cell, which meant that if cellphones were operating inside the cell, they would have been rendered inoperable. At 20 ft. and 100 ft. outside the cell, however, the micro-jammer signals did not disrupt the commercial wireless signals.
Department officials present during the January 17, 2018, test reported that while their cellphone signals were blocked inside the cell, their cellphones were operable when standing several feet from the cell’s window.
“These promising test results mark a step forward countering the security threat posed by contraband cellphones,” said Assistant Attorney General Beth Williams of the Justice Department’s Office of Legal Policy. “The results indicate the potential for localized impact of this micro-jamming technology. That is an encouraging sign that brings us closer to a solution that will make our communities safer and help prevent the continuation of criminal activity from inside prison walls.”
The data in the report will be used by BOP and the Department to understand the efficacy of micro-jamming, conduct further evaluation of jamming technology, and develop recommendations for strategic planning.
Contraband cellphones have been an ongoing correctional security and public safety concern for the BOP as well as for state and local correctional institutions. Across the country, contraband cellphones have been used by inmates to direct gang activity, run criminal enterprises, distribute child pornography, intimidate witnesses, and facilitate the commission of violent crimes. “This test is just one part of our ongoing efforts to disrupt and disable dangerous contraband cellphones in federal and state prisons,” said Assistant Attorney General Williams.
The BOP will continue to evaluate cellphone detection and interdiction technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
NTIA’s full report is available at: https://www.its.bldrdoc.gov/publications/3206.aspx
Philadelphia Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA –U.S. Attorney William M. McSwain announced today that a Philadelphia man was charged with receiving and possessing child pornography.
Anthony Chiccini, 70, of Philadelphia, PA, was charged today by indictment with receiving and possessing a collection of more than 600 images and videos of children being sexually assaulted and depicted in sexually explicit positions on various dates in 2013 through 2018.
If convicted, the defendant faces a maximum possible sentence of 60 years’ incarceration, which includes a 5-year mandatory minimum term of imprisonment, five years up to a lifetime of supervised release, $750,000 in fines, and a $300 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s 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.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nurse Practitioner Pleads Guilty in Compounding Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – A Mississippi-based nurse practitioner pleaded guilty for her role in a scheme to defraud health care benefit programs including TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division, Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Susan K. Perry, 58, of Grand Bay, Alabama, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Perry is scheduled to be sentenced by Judge Starrett on Sept. 20. Perry was charged in a 13-count indictment and had been scheduled to begin trial on June 26.
As part of her plea, Perry admitted her role in a scheme to defraud health care benefit programs by prescribing medically unnecessary compounded medications to individuals who did not need the medications, sometimes without first examining those individuals. Perry admitted that she knew that Advantage Pharmacy, based in Hattiesburg, Mississippi, would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions she signed, and she further expected that the health care benefit programs would pay the claims. From approximately January 2014 through April 2015, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy approximately $1,375,692 based on the claims submitted by Advantage Pharmacy in connection with the compounded medications that Perry prescribed.
The FBI, IRS-CI, DCIS, the U.S. Department of Health and Human Services (HHS) Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies investigated the case. Trial Attorneys Katherine Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Nurse Practitioner Pleads Guilty in Compounding Pharmacy Fraud SchemeRead the Press Release
A Mississippi-based nurse practitioner pleaded guilty for her role in a scheme to defraud health care benefit programs including TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division, Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Susan K. Perry, 58, of Grand Bay, Alabama, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Perry is scheduled to be sentenced by Judge Starrett on Sept. 20. Perry was charged in a 13-count indictment and had been scheduled to begin trial on June 26.
As part of her plea, Perry admitted her role in a scheme to defraud health care benefit programs by prescribing medically unnecessary compounded medications to individuals who did not need the medications, sometimes without first examining those individuals. Perry admitted that she knew that Advantage Pharmacy, based in Hattiesburg, Mississippi, would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions she signed, and she further expected that the health care benefit programs would pay the claims. From approximately January 2014 through April 2015, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy approximately $1,375,692 based on the claims submitted by Advantage Pharmacy in connection with the compounded medications that Perry prescribed.
The FBI, IRS-CI, DCIS, the U.S. Department of Health and Human Services (HHS) Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies investigated the case. Trial Attorneys Katherine Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New Orleans Man Sentenced for Lying to FBI about Fraudulent BP Oil Spill ClaimRead the Press Release
U.S. Attorney Duane A. Evans announced that JETTY HUI age 44, of New Orleans, Louisiana was sentenced yesterday in U.S. District Court by U.S. District Judge Nannette Jolivette Brown, to three (3) years probation, announced U.S. Attorney Duane A. Evans.
According to court documents, on February 28, 2018, JETTY HUI (HUI) pled guilty to a one count Indictment charging him with making false statements to the FBI, in violation of Title 18, United States Code, Section 1001. HUI was a business owner of Cabinets and Countertops Direct in Lakeview. After the April 20, 2010, Deepwater Horizon explosion, HUI submitted documentation of losses to his business to the Deepwater Horizon Oil Spill Trust. Those losses were fraudulent and were only submitted to facilitate a refund. On December 2, 2010, HUI received approximately $72,500 in funds. In May 2012, HUI was interviewed by the FBI. He made statements regarding the veracity of his claim for those funds, indicating to the FBI that the losses were real, when in fact they were not.
HUI was also ordered to pay $72,500 in restitution to British Petroleum (BP).
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. The prosecution of this case was handled by Carter K. D. Guice, Jr., Assistant U.S. Attorney, Disaster Fraud Coordinator for the U.S. Attorney’s Office.
New Jersey Man Charged with Lacey Act ViolationsRead the Press Release
U.S. Attorney Duane A. Evans announced that ROBERT GLENN HENNESSY, age 65, a resident of Bayonne, New Jersey, was charged in a four count indictment with violating the Lacey Act.
According to the indictment, on four occasions between March 18, 2016 and June 14, 2017, ROBERT GLENN HENNESSY, did knowingly import, export, transport, sell, receive, acquire, and purchase in interstate commerce Louisiana box turtles having a value in excess of $350.00 knowing that the turtles were taken, possessed, transported, and sold in violation of and in a manner unlawful under Louisiana law. Louisiana law requires that all persons engaged in the sale of native reptiles and amphibians collected in Louisiana must possess a license, and that all persons taking reptiles or amphibians, whether recreationally or commercially, and persons involved in the reptile and amphibian industry, including wholesale/retail dealers and transporters be licensed. As regards box turtles, Louisiana law states that no box turtles, box turtle eggs or parts shall be sold, traded or otherwise entered into commerce, and there shall be no taking of wild box turtles for commercial purposes.
If convicted, ROBERT GLENN HENNESSY faces a maximum penalty per count of not more than 5 years imprisonment, a fine of up to $250,000.00, and three years supervised release after imprisonment.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Fish and Wildlife Service, Office of Law Enforcement, the United States Postal Inspection Service, and United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. He also thanked the United States Attorney’s Office for the District of New Jersey for their assistance. The prosecution is being handled by Assistant U.S. Attorney Emily K. Greenfield and Jon Maestri.
Navajo Man from McKinley County Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Ronald George, 47, an enrolled member of the Navajo Nation who resides in Vanderwagon, N.M., pled guilty today in federal court in Albuquerque, N.M., to an abusive sexual contact charge. George entered the guilty plea under a plea agreement that recommends that he be sentenced to a term of imprisonment within the range of 78 to 97 months followed by a term of supervised release to be determined by the court. George will be required to register as a sex offender after completing his prison sentence.
George was arrested on April 18, 2017, on an indictment charging him with sexual abuse of a child under the age of 12 years between Feb. 4, 2014 and Sept. 21, 2015, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, George pled guilty to a felony information charging him with abusive sexual contact. In entering the guilty plea, George admitted that between Feb. 4, 2014 and Sept. 21, 2015, he engaged in sexual contact with a child under the age of 12 years while on the Navajo Indian Reservation. George remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Nicholas J. Marshall 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, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Natchez Man Sentenced for Theft of a FirearmRead the Press Release
Natchez, Miss. – Kiandas Washington, 19, of Jackson, was sentenced yesterday by U.S. District Judge David C. Bramlette, III, to serve 13-months in federal prison, followed by three years of supervised release, for theft of a firearm from a licensed dealer, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 15, 2017, the Natchez Police Department responded to a larceny/shoplifting incident at Bowie Outfitters in Natchez. Two store clerks were attending to three individuals when they were distracted and one of the individuals removed a firearm, a Glock model 43, 9 mm caliber pistol, from a box that was sitting on the counter and placed the firearm in his pocket.
Natchez Police Department investigators reviewed the surveillance footage and were able to identify the individual who took the firearm as Kiandas Washington and his male companion. Later that same day, police investigators interviewed the male companion, who provided a statement in which he identified Kiandas Washington as the individual who stole the firearm. Washington was also interviewed by police investigators, and admitted to stealing the firearm. Washington then contacted another person who brought in the firearm and surrendered it to police investigators.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Southwest Mississippi Interdiction Narcotics Enforcement Unit. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
Michigan Man Pleads Guilty to Sending Fentanyl to Dubuque Overdose VictimRead the Press Release
A man who ordered drugs from the dark web and had them shipped to a friend in Dubuque, who died after using the drugs, pled guilty on June 14, 2018, in federal court in Cedar Rapids.
Jay Rickert, age 28, from Grand Rapids, Michigan, was convicted of willfully causing the distribution of a controlled substance.
At the plea hearing, Rickert admitted that in February 2015, he caused a controlled substance to be shipped from a supplier in Canada to a woman in Dubuque, Iowa. According to information disclosed at the plea hearing, Rickert intended to order DMT, a Schedule I hallucinogenic drug, from the dark web and have it shipped to his friend in Dubuque. The supplier in Canada instead shipped the woman fentanyl, a different controlled substance. A criminal complaint previously filed against Rickert indicated that fentanyl and DMT are both white powdery substances that look virtually identical. According to the criminal complaint, the woman, believing that the substance Rickert ordered for her was DMT, used the fentanyl and died. An autopsy concluded that the cause of death was a fentanyl overdose.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Rickert was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Rickert faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and at least 3 years and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement, and the Dubuque Drug Task Force, consisting of the Dubuque Police Department and the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 18-MJ-56 and 18-CR-1008.
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Medical Doctor Found Guilty of ConspiracyRead the Press Release
DUBLIN DIVISION, GA: On Wednesday, June 6, 2018, following a three-day trial before U.S. District Judge Dudley H. Bowen, a federal jury convicted Eastman resident Dr. Mark Griffis, age 61, of conspiring to falsify documents pertaining to Department of Transportation mandated medical examinations of holders of commercial driver’s licenses.
According to the evidence presented at trial, Griffis agreed with Jo Carol White to falsely certify medical examination forms without actually examining the driver. (On March 21, 2018, White was sentenced to 15 months imprisonment for her role in the scheme.) Griffis received $50 from White for every false certification. Between February 27, 2012 and September 13, 2013, Griffis falsely certified 271 bogus medical examinations. This allowed these drivers to renew their commercial driver licenses without undergoing the appropriate medical exams to assure their fitness to drive.
United States Attorney Bobby L. Christine stated, “Our nation’s highways are essential to our way of life and standard of living. Like it or not, we share these highways with large and sometimes intimidating commercial vehicles that deliver goods that are essential to our economy. There is a risk inherent in the operation of these very large vehicles and the potential for personal injury and property damage is real. No one wants this risk compounded by undetected medical issues affecting the drivers of these vehicles. The defendant’s actions in this case seriously undermined regulations designed to promote highway safety and placed the public at risk.”
Marlies T. Gonzalez, Regional Special Agent-In-Charge, United States Department of Transportation, Office of Inspector General (DOT-OIG) added, “The successful prosecution of Dr. Mark Griffis demonstrates our commitment to ensuring safety on our nation’s roadways. Working with our federal, state and local law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent and root out fraud schemes which adversely affect the public trust and safety throughout the State of Georgia and elsewhere.”
DOT-OIG Special Agent Sara Oliver led the investigation of Griffis. She was assisted by investigators of the Drug Enforcement Administration. The Federal Motor Carrier Safety Administration and the Georgia Department of Driver Services also provided assistance.
Assistant United States Attorney Karl Knoche prosecuted the case on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 652-4422.
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McComb Man Sentenced to Almost 8 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
McComb, Miss. – Lajerick James, 26, of Jackson, was sentenced yesterday by U.S. District Judge David C. Bramlette III, to serve 95 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF").
On March 21, 2017, Lajerick James sold an ATF confidential informant a Bryco firearm loaded with ten rounds of ammunition. During that same transaction, James sold the confidential informant 5.41 grams of marijuana. On April 3, 2017, James again sold a firearm to the ATF confidential informant. This time, the firearm was a Glock model 22 Gen4, 40 caliber pistol, loaded with nine rounds of ammunition.
James was previously convicted on August 24, 2015 in the Circuit Court of Pike County for felony offense of mayhem.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Southwest Mississippi Interdiction Narcotics Enforcement Unit. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
Massachusetts Chiropractor Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in the District of Massachusetts has returned an indictment, which was unsealed today, charging the owner of a chiropractic business with tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Richard Rogers, a Massachusetts chiropractor, operated a chiropractic practice from his house. Rogers was charged with evading his taxes from 2012 through 2016 by concealing his income using a variety of methods, including using a nominee bank account to negotiate payments received by check, paying creditors using postal money orders, and using credit card accounts opened with a fictitious social security number. Rogers is also alleged to have concealed the ownership of his residence by titling the property in the name of a trust. Rogers allegedly did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.
If convicted, Rogers faces a statutory maximum sentence of five years in prison on each count of tax evasion. Roger also faces three years of supervised release and monetary penalties. An indictment is an accusation. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of the office of IRS Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Maryland Man Sentenced to Five Years in Prison for Shooting on Street in Southeast WashingtonRead the Press Release
WASHINGTON – Malik Parker, also known as Yohan Raymoore, 21, of Temple Hills, Md., was sentenced today to five years in prison on charges stemming from a shooting that took place in September 2016 in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Parker pled guilty in March 2018, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and possession of a firearm during a crime of violence. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of five years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced the defendant accordingly. Following his prison term, Parker will be placed on three years of supervised release.
According to the government’s evidence, on Sept. 19, 2016, at approximately 8:10 p.m., Parker and his girlfriend argued loudly in the street, in the 2900 block of P Street SE. Family members from a nearby house exited to observe the commotion. One of those family members, the victim, told Parker to take the argument somewhere else because he did not want the police to be called. Parker declined his request. Parker removed his gun, fired three shots in the air and then eight shots at the family as they fled back toward their house. Luckily, none of the shots found their targets. Parker then fled before the Metropolitan Police Department (MPD) arrived.
Parker was arrested on Sept. 28, 2016 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the United States Marshals Service. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists T.J. McPhail, Victim/Witness Advocate Shawn Slade, and Litigation Technology Specialist Anisha Bhatia.
Finally, she commended the work of Assistant U.S. Attorney Jessi Brooks and Louis Manzo, who together investigated, indicted and prosecuted the case.
Manhattan U.S. Attorney Announces Extradition of Senior Adviser to the Operator of the “Silk Road” WebsiteRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Angel M. Melendez, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging ROGER THOMAS CLARK, who was a senior adviser to Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” the owner and operator of the “Silk Road” online illicit black market that operated from January 2011 until October 2, 2013. During its operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute illegal drugs and other illicit goods and services to over a hundred thousand buyers, and to launder hundreds of millions of dollars derived from those unlawful transactions. CLARK was a close confidante of Ulbricht’s who advised him on all aspects of Silk Road’s operations, and who hired and managed a staff of computer programmers who helped develop Silk Road’s technical infrastructure. CLARK was arrested in Thailand on December 3, 2015, and was extradited to the United States today. CLARK is expected to be presented this afternoon before U.S. Magistrate Judge Gabriel W. Gorenstein. CLARK’s case is assigned to U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Silk Road was a secret online marketplace for illegal drugs, hacking services, and a whole host of other criminal activity. Roger Thomas Clark allegedly served as a trusted confidante to Silk Road founder and operator Ross Ulbricht, advising him on all aspects of this illegal business, including how to maximize profits and use threats of violence to thwart law enforcement. Thanks to the investigative work of our fellow law enforcement agencies and our international partners, Clark now faces justice in an American court.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “The unsealed indictment again shows that the supposed anonymity of the dark web is not a protective shield from prosecution. Working with our law enforcement partners, IRS-CI used its unique financial and cyber expertise to help shine a bright light on a shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
FBI Assistant Director William F. Sweeney Jr. said: “Whether on the streets or on the Internet, the illegality of selling unlawful goods remains unchanged. Under the operation of Ross Ulbricht, the Silk Road was a criminal hub for illicit goods and services. As Ulbricht’s right-hand man, Roger Clark allegedly advised him of methods to thwart law enforcement during the operation of this illegal ploy, pocketing hundreds of thousands of dollars in the process. Today’s extradition of Roger Clark shows that despite alleged attempts to operate under the radar, he was never out of our reach.”
HSI Special Agent-in-Charge Angel M. Melendez said: “The extradition of this man today should be a reminder to those who think they can hide within the confines of the dark web, that you are never out of reach of the long arm of the law. These investigations are important in combatting the illicit drug market and we will continue to work with our law enforcement partners to fight this fight.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court, the previously unsealed criminal complaint, and evidence presented at Ulbricht’s trial in January and February 2015[1]:
Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet at the time, serving as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually all varieties, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
Silk Road enabled its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. Silk Road was operated on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the network’s users. Silk Road also included a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
CLARK – who went by the online nicknames “Variety Jones,” “VJ,” “Cimon,” and “Plural of Mongoose” – was described by Ulbricht as a “real mentor” who advised Ulbricht about, among other things, security vulnerabilities in the Silk Road site, technical infrastructure, management of the Silk Road users, and operating in a manner to attempt to thwart law enforcement. CLARK provided advice to Ulbricht on developing a “cover story” to make it appear as though Ulbricht had sold Silk Road, and also assisted with hiring programmers to help improve the infrastructure of, and maintain, Silk Road. CLARK also communicated at length with Ulbricht regarding the rules that governed Silk Road vendors and users, and regarding the promotion of sales on Silk Road, including the sales of narcotics. CLARK also was responsible for gathering information on law enforcement’s efforts to investigate Silk Road.
CLARK was paid at least hundreds of thousands of dollars for his assistance in operating Silk Road.
CLARK, 56, a citizen of Canada, is charged with narcotics trafficking conspiracy; narcotics trafficking; distributing narcotics by means of the internet; conspiracy to commit, and aid and abet, a computer hacking conspiracy; conspiracy to traffic in fraudulent identification documents; and money laundering conspiracy. If convicted, he faces, among other penalties, a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Mr. Berman praised the outstanding joint efforts of the FBI and its New York Special Operations and Cyber Division, HSI Chicago-O’Hare, the DEA’s New York Field Division, and IRS-CI’s New York Field Office. Mr. Berman also thanked the HSI Attache Bangkok, Thailand, for its assistance and support. Mr. Berman also thanked the Royal Thai Police and the U.S. Department of Justice’s Office of International Affairs for their support and assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff, Richard Cooper, and Timothy T. Howard are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the Indictment, and the descriptions thereof, constitute only allegations, and every fact described therein should be treated as an allegation.
Manhattan U.S. Attorney Announces Extradition of Italian National Implicated in International Money Laundering and Narcotics ConspiracyRead 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 the extradition of FILIPPO MAGNI, who is charged, along with co-defendant GIACOMO MANCI, with money laundering and narcotics offenses in a Superseding Indictment (the “Indictment”). MAGNI was extradited from Italy to the United States on June 14, 2018, and presented today before Chief United States Magistrate Judge Gabriel W. Gorenstein. MANCI’s extradition from Italy remains pending. This case is assigned to United States District Judge Katherine B. Forrest.
The Indictment, which was returned under seal on November 10, 2016, alleges that MAGNI and MANCI were members of an international narcotics trafficking and money laundering organization involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering hundreds of millions of dollars in narcotics proceeds through a variety of methods, including through seemingly “legitimate” corporations, shell bank accounts, and money couriers based in the United States and Europe. MAGNI and MANCI were arrested in Italy and taken into custody by the Italian authorities pursuant to an extradition request made by the United States in January 2017.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Filippo Magni and Giacomo Manci were key members of an international drug trafficking organization responsible for cleaning more than $250 million of drug dollars, ensuring that their criminal network could spend their illegal profits. Now, Magni is on U.S. soil and will have to answer for his alleged crimes.”
DEA Special Agent in Charge David J. Downing said: “This extradition demonstrates the reach of US law enforcement and exemplifies successful collaborations between federal, state, and local as well as international law enforcement. Targeting the financial components of these organizations – no matter where in the world those components are located – enables us to put drug traffickers completely out of business.”
According to the allegations in the Indictment [1], the previously filed criminal complaints against the defendants, and statements made in Court:
The Investigation
Since July 2013, the DEA has been investigating an international drug trafficking and money laundering organization (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 defendants.
MAGNI and MANCI are charged with membership in the Organization, which was led by Jesus Rodriguez-Jimenez. Rodriguez-Jimenez, along with five co-defendants, were charged for their participation in the conspiracy in June 2016 in the Southern District of New York. In June 2017, Rodriguez-Jimenez pled guilty to offenses stemming from his leadership role in the organization, and for laundering in excess of $250 million in proceeds on behalf of drug cartels in Mexico and Central America.
This case is also related to the prosecution of Roberto Ponce-Rocha, a large-scale international narcotics trafficker based in Central and South America, who used various methods, including commercial shipments, drivers, and couriers to move narcotics around the world, and to import narcotics into the United States. Ponce-Rocha and three other individuals were indicted separately in 2016. In June 2017, Ponce-Rocha pled guilty to conspiring to import narcotics into the United States.
MAGNI and MANCI were essential players in the Organization, providing money laundering expertise in Europe and the United States, and facilitating the European distribution of narcotics provided by Roberto Ponce-Rocha. For example, in August of 2013, MAGNI met with Ponce-Rocha in Panama to arrange for the shipment of vast amounts of narcotics to Italy; to this end, a test shipment of cocaine was sent to MANCI.
MAGNI facilitated the laundering of narcotics proceeds for the Organization in Italy, Switzerland, and the United Kingdom.
In January 2014, MAGNI and MANCI laundered hundreds of thousands of dollars in narcotics proceeds through a Las Vegas casino, and later deposited the laundered cash into bank accounts controlled by the Organization.
In February 2014, MAGNI and other members of the Organization orchestrated the physical movement of nearly a million dollars in narcotics proceeds across the United States. MANCI, along with a co-conspirator, was arrested in Chicago while transporting this cash in a roller suitcase through an Amtrak station.
These activities were interconnected with the Organization’s front companies, including an LED screens business in Las Vegas, as well as stash houses operated by the Organization in various cities throughout the United States, including Atlanta and Philadelphia, in order to receive drug proceeds from criminal clients who wanted those proceeds funneled into the international banking system. The Organization also arranged and facilitated cash money pick-ups in, among other places, New York City and Atlanta, receiving cash from narcotics traffickers and bringing that cash to co-conspirators with directions to wire it to shell accounts in Mexico, Hong Kong, and Italy, among other places.
In this way, the Organization laundered hundreds of millions of dollars through the international banking system, and facilitated the distribution of hundreds of kilograms of cocaine and heroin, among other narcotics.
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MAGNI, 44, of Rome, Italy, and MANCI, 55, of Rome, Italy, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison. The statutory maximum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the DEA for its work in the investigation. Mr. Berman also expressed his appreciation to the Italian Government and Italian law enforcement in executing the arrests and preparing for extradition of the defendants to the United States.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Andrew C. Adams and Noah Falk are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 20 Months in Prison for Firearms OffensesRead the Press Release
CONCORD - David Hamilton, 20, of Manchester, was sentenced in federal court to 20 months in federal prison for aiding and abetting the straw purchase of a firearm, and for being a prohibited drug user in possession of a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in September 2016, Manchester Police responded to reports of shots fired, followed by a car accident. When police arrived at the scene, the occupants of the vehicle had fled, leaving behind a pistol. Upon further investigation, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that in June 2016, Hamilton persuaded another individual to “straw purchase” the pistol on Hamilton’s behalf. Specifically, when the purchaser filled out the paperwork required for purchasing the pistol, he falsely stated that he was purchasing it for himself, and not for Hamilton, in violation of federal law.
Approximately two months after the straw purchase, in August 2016, a Manchester Police Officer observed Hamilton – who had an outstanding warrant for his arrest – walking across the Granite Street Bridge in Manchester, New Hampshire. As the officer approached, Hamilton threw a pistol over the sidewalk railing. Police arrested Hamilton and recovered the pistol, which was found to have an obliterated serial number. At the time, Hamilton was an unlawful drug user, and was therefore prohibited from possessing a firearm.
“Those who unlawfully obtain firearms present a serious risk to public safety,” said U.S. Attorney Murray. “The U.S. Attorney’s Office is committed to working aggressively to combat violent crime, in all of its forms. Those who choose to use firearms to commit crimes in New Hampshire will be prosecuted to the fullest extent of the law.”
“Today’s sentencing is another example of the importance of law enforcement partnerships and their effectiveness in protecting the safety and security of communities,” said Special Agent in Charge Mickey Ledingham. “ATF will continue to combat violent crime and to keep guns out of the hands of criminals.”
This matter was investigated by the ATF and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Shane Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Local Resident Charged with Access Device FraudRead the Press Release
U.S. Attorney Duane A. Evans announced that VINCENTIA ROQUES (“ROQUES”), age 40, of New Orleans, Louisiana, was charged Wednesday, June 13, 2018 in a Bill of Information with Access Device Fraud.
According to documents filed in federal court, ROQUES worked part-time as a bookkeeper and office manager for several businesses located within the Eastern District of Louisiana. As the bookkeeper, ROQUES gained access to passwords and account numbers related to accessing bank accounts associated with each business. ROQUES also obtained direct access to financial account information and identifiers that permitted her to conduct unauthorized financial transactions with the money and credit accounts belonging to her employers.
The maximum penalty for access device fraud is ten years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Investigative Service in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.