Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 3 May 2018
Four Defendants Plead Guilty for Their Roles in A Major Drug Trafficking Operation in Lockport, NyRead 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 four defendants pleaded guilty in connection with a large drug trafficking organization operating out of Lockport, NY:
• Ramone Westbrook, 35, of Niagara Falls NY, and Rico Freeman, 34, of Lockport NY, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine and face a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $20,000,000 fine;
• In addition, co-defendants Kurtis Washington, 27, and Darius Dix, 27, both of Lockport, NY, pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine which is punishable by a mandatory minimum penalty of five years in prison, a maximum of 40 years and fine of $5,000,000.Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between May 2016 and June 2017, defendant Westbrook operated a high traffic and extremely profitable cocaine and crack cocaine distribution network. Westbrook obtained cocaine and crack cocaine from several sources of supply in Atlanta, Georgia, North Carolina and New York City and from a local source of supply in Niagara Falls. Westbrook then supplied co-defendant Rico Freeman for further distribution in the Lockport area during the course of the conspiracy.
On May 24, 2017, federal agents executed a search warrant at Ramone Westbrook’s residence on Whitney Avenue in Niagara Falls. When agents forced entry, the defendant jumped off a second story balcony and fled from law enforcement but was captured immediately. A search of the residence recovered over a kilogram of cocaine, crack cocaine, two money counters, drug scales, and $22,295.00 in drug proceeds.
Defendants Washington and Dix were also part of the drug trafficking organization, distributing cocaine and crack cocaine in the Lockport area.
On four occasions between March 3, 2017, and May 11, 2017, Washington sold cocaine to a Niagara County Drug Task Force confidential source. Washington was arrested by Buffalo Police officers on June 19, 2017. He was in possession of 26 grams of cocaine Washington tried to flee during a pat-down search and attempted to discard the cocaine.
On February 14, 2017, Dix sold a quantity of cocaine to a confidential informant working with law enforcement officers. He was arrested on December 27, 2016 by Lockport Police officers who recovered 10 grams of cocaine from Dix.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, Special Agent Shane Nastoff, and Task Force Officer Eric Herrington; the Lockport Police Department, under the direction of Chief Michael Niethe; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Rico Freeman is scheduled to be sentenced on August 6th at 9:15 a.m., before U.S. District Judge Lawrence J. Vilardo. Sentencing for the remaining defendants will be scheduled at a later date.
Founder of Irvine-based Financial Services Firm Arrested in Scheme that Allegedly Stole more than $4 Million from InvestorsRead the Press Release
SANTA ANA, California – The CEO of an Irvine-based financial services and insurance company was arrested this morning on federal charges of defrauding about a dozen victims who thought their money was being invested in a certificate of deposit at a major bank.
The scam allegedly run out of Five Star Financial Services of America, LLC targeted the retirement accounts and savings of elderly investors and other vulnerable victims, according to a federal criminal complaint that notes one 70-year-old victim lost nearly all of his $1.6 million investment with Five Star.
This morning, FBI and IRS special agents arrested Memet Fatih Biyikoglu, 50, of Palm Desert, who was Five Star’s chief executive officer and was known to some victims as “John B.” Biyikoglu is expected to make his initial court appearance this afternoon in United States District Court in Santa Ana.
Anna Marie Holt, 58, of Fountain Valley, who was the president and chief operating officer of Five Star, is expected to self-surrender to authorities this afternoon. Holt also is expected to make her first court appearance this afternoon in federal court in Santa Ana.
A third defendant named in the criminal complaint – Ida Shaghoian, 38, of Palm Desert, a sales agent with Five Star and Biyikoglu’s ex-wife – is currently being sought by federal agents.
According to the affidavit in support of the criminal complaint, Biyikoglu, Shaghoian and Holt solicited investors to put retirement funds, savings, and other assets in a certificate of deposit held at JP Morgan Chase Bank with promises that the investments were safe and would generate large returns.
In reality, the Chase bank CD did not exist, and the defendants used the victims’ money for their own personal use, which included paying for real estate, jewelry and a Ferrari, the complaint alleges. As part of the scheme, victims were given bogus Chase Bank statements to make it appear their money had been legitimately invested.
To date, the investigation has identified 11 victims who transferred at least $4,088,338 to Five Star in 2014 and 2015, according to the complaint. Several of the victims lost their entire retirement savings.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of conspiracy to commit wire fraud carries a statutory maximum sentence of 20 years in federal prison.
The investigation into Five Star Financial Services is being conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
Former attorney indicted for failing to report nearly $400,000 he used to pay personal expensesRead the Press Release
A former attorney from Hiram was indicted for failing to report nearly $400,000 that he used to pay personal expenses.
Robert J. Andrews, Jr., 75, was indicted on two counts of making and filing false tax returns.
Andrews opened several bank accounts in the names of businesses he controlled or was involved with, including Ace Demo, Gem Collar LLC, Rocky Mountain Logging Company LLC and Falcon LLC, according to the indictment.
Andrews diverted money from corporate accounts for his own personal benefit and failed to report those transfers of money – which he used for personal expenses -- as income. Andrews failed to report approximately $396,617 as taxable income in 2012 and 2013, according to the indictment.
"Robert Andrews, Jr., a once trusted attorney, is now facing criminal tax charges for failing to report more than $396,000 of income on his tax returns,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Robert J. Patton.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former UPMC Radiologist Pleads Guilty to Health Care Fraud and Unlawfully Prescribing VicodinRead the Press Release
PITTSBURGH, PA – A former radiologist at the University of Pittsburgh Medical Center waived indictment and pleaded guilty in federal court to charges of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Marios D. Papachristou, 43, of Allison Park, PA, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Papachristou conspired to create and submit unlawful prescriptions for Vicodin, and then unlawfully dispensed those controlled substances to other persons not specifically named in the Indictment. Papachristou also committed health care fraud for allegedly submitting fraudulent claims to UPMC Health Plan, for payments to cover the costs of the unlawfully prescribed Vicodin.
"Today’s guilty plea marks the first conviction in a case investigated by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud," stated U.S. Attorney Brady. "The data we are receiving provides important information about prescription opioids, prescribers and pharmacies that is being used to start or strengthen our investigations."
Judge Schwab scheduled sentencing for October 10, 2018, at 10 a.m. The law provide a maximum sentence of 20 years in prison and a fine of $1,000,000 for unlawfully dispensing Schedule II controlled substances; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the prosecution of this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
Former High Point Regional Hospital Accountant SentencedRead the Press Release
GREENSBORO, N.C. B A former High Point Regional Hospital employee who stole close to $4 million from the hospital was sentenced yesterday in federal court in Winston-Salem, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable Thomas D. Schroeder sentenced KIMBERLY RUSSELL HOBSON, 46, of Kernersville, North Carolina, to a 102 month term of imprisonment on charges of wire fraud, bank fraud, and aggravated identity theft. HOBSON pleaded guilty in February.
“Today’s stiff sentence serves notice that white collar criminals will be brought to justice. No one is above the law in the Middle District of North Carolina,” said U.S. Attorney Martin. “Thank you to the law enforcement officers with the Department of Treasury, U.S. Secret Service, Guilford County Sheriff’s Department, and High Point Police Department who have worked diligently to uncover Ms. Hobson’s fraud and seek restitution for the hospital.”
HOBSON was employed in accounting and finance at High Point Regional Hospital for more than 20 years, ending in August 2017. Over a period of approximately ten years, HOBSON wrote checks to cash, to herself, and to other family members, which were then deposited in HOBSON’s personal bank account. She also directed payments from hospital accounts to her personal loans and credit cards, and used a hospital-issued credit card for personal expenses. HOBSON also diverted direct deposits of payroll from nine other employees by intermittently substituting her bank account for the direct deposit account of the other employees.
In total, HOBSON’s schemes to steal hospital funds for her own benefit caused a total loss to the hospital of $3,880,075.53. HOBSON was ordered to pay restitution in the full amount of the loss to the hospital and to an insurance company which covered a portion of the loss.
HOBSON is also subject to a forfeiture judgment in the amount of $2,675,000, and numerous vehicles and other assets purchased by HOBSON with stolen money have been seized and forfeited. All monies recovered through forfeiture will be applied to pay restitution until the restitution is paid in full.
The case was investigated by the Department of Treasury - Office of Inspector General, United States Secret Service, Guilford County Sheriff's Department, and High Point Police Department. The case was prosecuted by Assistant United States Attorneys Robert M. Hamilton, Lynne P. Klauer, and Anand P. Ramaswamy.
###
Former Cumming police officer sentenced to prison for accepting bribes and computer fraudRead the Press Release
ATLANTA – Nathan VanBuren, a former Cumming police officer, was sentenced to federal prison for accepting bribes and unlawfully accessing a confidential law enforcement database.
“VanBuren violated his oath of office and broke the laws he swore to uphold and enforce,” said U. S. Attorney Byung J. “BJay” Pak. “His crimes undermine the hard work of his fellow officers, as well as the community’s trust and respect for police officers.”
“The actions of VanBuren are extremely disheartening to the many men and women in law enforcement, who work hard every day with integrity and commitment. The FBI will continue to dedicate significant resources toward investigating anyone who tarnishes their reputation by straying from his or her oath,” said David J. LeValley, Special Agent in Charge of FBI Atlanta.
“It is paramount that public officials, especially sworn law enforcement officers, committing crimes be held accountable for their actions,” said Georgia Bureau of Investigation Director Vernon Keenan. “The GBI will continue to work with our local and federal partners to ensure that corruption cases are aggressively investigated and prosecuted in order to maintain the faith and trust of the public.”
“VanBuren betrayed the public trust and the trust of the hard working men and women of this agency, said Chief Casey Tatum, Cumming Police Department. “Anytime a law enforcement officer uses their position to victimize someone, justice demands they be held accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a home in Cumming, Georgia, at which time a citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren asked the citizen for a loan claiming that his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In reality, VanBuren’s salary was not being garnished and his son was not ill. The citizen reported VanBuren’s actions and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen met with and provided VanBuren with $5,000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked VanBuren to search a sensitive police database to determine whether an individual was an undercover police officer. In exchange for $1,000, VanBuren unlawfully accessed the law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
Nathan VanBuren, 35, of Cumming, Georgia was sentenced by U.S. District Judge Orinda D. Evans to one year, six months in prison to be followed by two years of supervised release. VanBuren was convicted of honest services wire fraud and computer fraud on October 26, 2017, after a jury trial.
This case was jointly investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The Cumming Police Department and Forsyth County Sheriff’s Office assisted with the investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CEO of Volkswagen AG Charged with Conspiracy and Wire Fraud in Diesel Emissions ScandalRead the Press Release
An indictment was unsealed earlier today charging Martin Winterkorn, 70, the former chairman of the management board of Volkswagen AG (VW), with conspiracy and wire fraud in connection with VW’s long-running scheme to cheat U.S. diesel vehicle emissions requirements.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, EPA Administrator Scott Pruitt, and Special Agent in Charge Timothy R. Slater of FBI’s Detroit Division, made the announcement.
The superseding indictment was issued by a federal grand jury sitting in the Eastern District of Michigan and charges Winterkorn with four counts of violating federal law. The first count charges that Winterkorn conspired with other senior VW executives and employees to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The remaining three counts charge Winterkorn with wire fraud in connection with the scheme.
“If you try to deceive the United States, then you will pay a heavy price,” said Attorney General Sessions. “The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company. These are serious allegations, and we will prosecute this case to the fullest extent of the law. I want to thank the Criminal Division’s Fraud Section, the Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Michigan as well as our partners at the EPA, FBI and in Germany for their hard work on this important case.”
“Volkswagen deceived American regulators and defrauded American consumers for years,” said U.S. Attorney Schneider. “The fact that this criminal conduct was allegedly blessed at Volkswagen’s highest levels is appalling. The U.S. Attorney’s Office is committed to pursuing accountability for corporate crimes, and the Winterkorn prosecution is a reflection of that commitment.”
“The indictment of former VW CEO Martin Winterkorn should send a clear message that EPA and its law enforcement partners will seek to hold corporate officers accountable for alleged criminal activities at their company,” said EPA Administrator Pruitt.
“Today’s indictment of Volkswagen AG’s former CEO, Martin Winterkorn, sends a clear message that businesses both here in the United States and abroad are expected to conduct their business honestly,” said FBI Special Agent in Charge Slater. “Accountability will be sought for any individuals or corporations that cheat American consumers or harm the environment by circumventing the standards set by our legal system.”
The indictment of Winterkorn represents the most recent charges in an ongoing investigation by U.S. criminal authorities into unprecedented emissions cheating by VW. In March 2017, VW pleaded guilty to criminal charges that it deceived U.S. regulatory agencies, including the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), by installing so-called defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests. The defeat devices consisted of software designed to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions, in which case harmful nitrogen oxide (NOx) emissions increased significantly.
As part of its plea agreement with the Department, VW paid a criminal penalty of $2.8 billion. VW also agreed to the imposition of an independent corporate compliance monitor for the duration of its probation, which is at least three years. Subsequently, Larry Thompson was appointed as VW’s monitor.
Winterkorn, who served as VW’s management board chairman and thus VW’s highest ranking executive from January 2007 until September 2015, is the ninth individual against whom U.S. criminal authorities have announced charges in connection with this matter. Two former VW engineers, Oliver Schmidt, 48, and James Liang, 63, both German citizens, pleaded guilty to participating in the conspiracy alleged in the indictment and are currently serving sentences of 84 months and 40 months in prison, respectively, imposed by U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Five additional defendants, including former VW executives and senior managers, were indicted in January 2017, but have not been apprehended. Similar to Winterkorn, each of them is believed to be a German citizen and to reside in Germany. Finally, one former manager of VW’s subsidiary Audi AG, Giovanni Pamio, 61, an Italian citizen, has been charged by complaint and currently remains in Germany pending extradition.
The indictment of Winterkorn alleges that he was informed of VW’s diesel emissions cheating in May 2014 and again in July 2015. The indictment further alleges that Winterkorn, after having been clearly informed of the emissions cheating, agreed with other senior VW executives to continue to perpetrate the fraud and deceive U.S. regulators.
As the indictment sets forth, in the spring of 2014 a study commissioned by the International Council on Clean Transportation (the ICCT study) tested road emissions of two VW diesel vehicles sold in the United States. The results of the study showed significantly elevated NOx levels of the two VW vehicles, with one emitting up to 35 times above the allowable legal limit. VW management quickly learned of the results of the study and discussed potential consequences flowing from the revelations. Specifically, the indictment alleges that Bernd Gottweis, a senior manager then responsible for product safety issues, met with employees of the engine development department to discuss the ICCT study. Upon learning of the facts revealed by the study and the risks facing the company, Gottweis remarked that he needed to speak with Winterkorn immediately. Shortly thereafter, on May 22, 2014, Gottweis wrote a one-page memorandum describing the results of the ICCT study and warning that VW could not give a well-grounded explanation for the dramatically increased NOx emissions and that it could be assumed that the authorities would investigate whether the vehicles contained test-recognition software. Gottweis’s memorandum was then attached to a cover note authored by a then-senior VW executive, and addressed to Winterkorn.
As alleged in the indictment, following publication of the ICCT study in the spring of 2014 the company knowingly continued to deny the existence of emissions cheating in its vehicles until late summer 2015. Instead, VW sought to deceive U.S. regulators about the causes for the significant discrepancies between emissions tests and emissions values measured on the road.
By the summer of 2015, however, the indictment alleges that U.S. regulators threatened to withhold authorization for VW to sell Model Year 2016 diesel vehicles in the United States until VW answered their questions about the discrepancies uncovered by the ICCT study. The diesel situation in the United States became increasingly alarming to VW senior management, culminating in a meeting on July 27, 2015 at VW’s headquarters in Wolfsburg, Germany, internally referred to as the “damage table meeting.” During that meeting, which was chaired by Winterkorn and attended by several senior VW executives, engine development department employees, with the help of a PowerPoint presentation, described to the attendees, and Winterkorn specifically: (1) how VW was deceiving U.S. regulators, including precisely what information had been disclosed and what had not yet been disclosed; and (2) the potential consequences of VW being caught cheating.
The indictment alleges that upon being presented with those and other facts, Winterkorn did not order his subordinates to disclose the cheating but instead agreed to continue to deceive U.S. authorities. Part of that strategy, which Winterkorn allegedly approved at the July 27, 2015 meeting, and which informed VW’s steps over the next several weeks, included sending Oliver Schmidt to meet with a senior CARB official on Aug. 5, 2015, in order to obtain the release of the Model Year 2016 vehicles without revealing the fundamental reason for the higher NOx measurements on the road: that software had been intentionally installed in VW vehicles so the vehicles could detect and evade emissions testing. Consistent with Winterkorn’s alleged directive from the July 27 meeting, VW executives also approved a script for an Aug. 19, 2015 meeting with CARB that continued to conceal VW’s cheating. At the meeting, however, in direct contravention of the instructions from his superiors, a VW employee, in answering a direct question from CARB, revealed that VW had been using software in its 2.0 liter diesel vehicles to cheat U.S. emissions tests. On Sept. 3, 2015, VW officially admitted that it had installed defeat devices in various 2.0 liter diesel vehicles sold in the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI and EPA Criminal Investigation Division are investigating the case. The prosecution is being handled by Deputy Chief Benjamin D. Singer and Trial Attorney David M. Fuhr from the Criminal Division’s Fraud Section, White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Trial Attorney Jennifer L. Blackwell from the DOJ’s Environment and Natural Resources Division. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Former CEO of Volkswagen AG Charged with Conspiracy and Wire Fraud in Diesel Emissions ScandalRead the Press Release
An indictment was unsealed earlier today charging Martin Winterkorn, 70, the former chairman of the management board of Volkswagen AG (VW), with conspiracy and wire fraud in connection with VW’s long-running scheme to cheat U.S. diesel vehicle emissions requirements.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, EPA Administrator Scott Pruitt, and Special Agent in Charge Timothy R. Slater of FBI’s Detroit Division, made the announcement.
The superseding indictment was issued by a federal grand jury sitting in the Eastern District of Michigan and charges Winterkorn with four counts of violating federal law. The first count charges that Winterkorn conspired with other senior VW executives and employees to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The remaining three counts charge Winterkorn with wire fraud in connection with the scheme.
“If you try to deceive the United States, then you will pay a heavy price,” said Attorney General Sessions. “The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company. These are serious allegations, and we will prosecute this case to the fullest extent of the law. I want to thank the Criminal Division’s Fraud Section, the Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Michigan as well as our partners at the EPA, FBI and in Germany for their hard work on this important case.”
“Volkswagen deceived American regulators and defrauded American consumers for years,” said U.S. Attorney Schneider. “The fact that this criminal conduct was allegedly blessed at Volkswagen’s highest levels is appalling. The U.S. Attorney’s Office is committed to pursuing accountability for corporate crimes, and the Winterkorn prosecution is a reflection of that commitment.”
“The indictment of former VW CEO Martin Winterkorn should send a clear message that EPA and its law enforcement partners will seek to hold corporate officers accountable for alleged criminal activities at their company,” said EPA Administrator Pruitt.
“Today’s indictment of Volkswagen AG’s former CEO, Martin Winterkorn, sends a clear message that businesses both here in the United States and abroad are expected to conduct their business honestly,” said FBI Special Agent in Charge Slater. “Accountability will be sought for any individuals or corporations that cheat American consumers or harm the environment by circumventing the standards set by our legal system.”
The indictment of Winterkorn represents the most recent charges in an ongoing investigation by U.S. criminal authorities into unprecedented emissions cheating by VW. In March 2017, VW pleaded guilty to criminal charges that it deceived U.S. regulatory agencies, including the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), by installing so-called defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests. The defeat devices consisted of software designed to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions, in which case harmful nitrogen oxide (NOx) emissions increased significantly.
As part of its plea agreement with the Department, VW paid a criminal penalty of $2.8 billion. VW also agreed to the imposition of an independent corporate compliance monitor for the duration of its probation, which is at least three years. Subsequently, Larry Thompson was appointed as VW’s monitor.
Winterkorn, who served as VW’s management board chairman and thus VW’s highest ranking executive from January 2007 until September 2015, is the ninth individual against whom U.S. criminal authorities have announced charges in connection with this matter. Two former VW engineers, Oliver Schmidt, 48, and James Liang, 63, both German citizens, pleaded guilty to participating in the conspiracy alleged in the indictment and are currently serving sentences of 84 months and 40 months in prison, respectively, imposed by U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Five additional defendants, including former VW executives and senior managers, were indicted in January 2017, but have not been apprehended. Similar to Winterkorn, each of them is believed to be a German citizen and to reside in Germany. Finally, one former manager of VW’s subsidiary Audi AG, Giovanni Pamio, 61, an Italian citizen, has been charged by complaint and currently remains in Germany pending extradition.
The indictment of Winterkorn alleges that he was informed of VW’s diesel emissions cheating in May 2014 and again in July 2015. The indictment further alleges that Winterkorn, after having been clearly informed of the emissions cheating, agreed with other senior VW executives to continue to perpetrate the fraud and deceive U.S. regulators.
As the indictment sets forth, in the spring of 2014 a study commissioned by the International Council on Clean Transportation (the ICCT study) tested road emissions of two VW diesel vehicles sold in the United States. The results of the study showed significantly elevated NOx levels of the two VW vehicles, with one emitting up to 35 times above the allowable legal limit. VW management quickly learned of the results of the study and discussed potential consequences flowing from the revelations. Specifically, the indictment alleges that Bernd Gottweis, a senior manager then responsible for product safety issues, met with employees of the engine development department to discuss the ICCT study. Upon learning of the facts revealed by the study and the risks facing the company, Gottweis remarked that he needed to speak with Winterkorn immediately. Shortly thereafter, on May 22, 2014, Gottweis wrote a one-page memorandum describing the results of the ICCT study and warning that VW could not give a well-grounded explanation for the dramatically increased NOx emissions and that it could be assumed that the authorities would investigate whether the vehicles contained test-recognition software. Gottweis’s memorandum was then attached to a cover note authored by a then-senior VW executive, and addressed to Winterkorn.
As alleged in the indictment, following publication of the ICCT study in the spring of 2014 the company knowingly continued to deny the existence of emissions cheating in its vehicles until late summer 2015. Instead, VW sought to deceive U.S. regulators about the causes for the significant discrepancies between emissions tests and emissions values measured on the road.
By the summer of 2015, however, the indictment alleges that U.S. regulators threatened to withhold authorization for VW to sell Model Year 2016 diesel vehicles in the United States until VW answered their questions about the discrepancies uncovered by the ICCT study. The diesel situation in the United States became increasingly alarming to VW senior management, culminating in a meeting on July 27, 2015 at VW’s headquarters in Wolfsburg, Germany, internally referred to as the “damage table meeting.” During that meeting, which was chaired by Winterkorn and attended by several senior VW executives, engine development department employees, with the help of a PowerPoint presentation, described to the attendees, and Winterkorn specifically: (1) how VW was deceiving U.S. regulators, including precisely what information had been disclosed and what had not yet been disclosed; and (2) the potential consequences of VW being caught cheating.
The indictment alleges that upon being presented with those and other facts, Winterkorn did not order his subordinates to disclose the cheating but instead agreed to continue to deceive U.S. authorities. Part of that strategy, which Winterkorn allegedly approved at the July 27, 2015 meeting, and which informed VW’s steps over the next several weeks, included sending Oliver Schmidt to meet with a senior CARB official on Aug. 5, 2015, in order to obtain the release of the Model Year 2016 vehicles without revealing the fundamental reason for the higher NOx measurements on the road: that software had been intentionally installed in VW vehicles so the vehicles could detect and evade emissions testing. Consistent with Winterkorn’s alleged directive from the July 27 meeting, VW executives also approved a script for an Aug. 19, 2015 meeting with CARB that continued to conceal VW’s cheating. At the meeting, however, in direct contravention of the instructions from his superiors, a VW employee, in answering a direct question from CARB, revealed that VW had been using software in its 2.0 liter diesel vehicles to cheat U.S. emissions tests. On Sept. 3, 2015, VW officially admitted that it had installed defeat devices in various 2.0 liter diesel vehicles sold in the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI and EPA Criminal Investigation Division are investigating the case. The prosecution is being handled by Deputy Chief Benjamin D. Singer and Trial Attorney David M. Fuhr from the Criminal Division’s Fraud Section, White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Trial Attorney Jennifer L. Blackwell from the DOJ’s Environment and Natural Resources Division. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
# # #
Former Arkansas State Senator and Consultant Convicted for Bribery SchemeRead the Press Release
A former Arkansas State Senator and an Arkansas consultant have been convicted for a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks funneled through the consultant’s business, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.
Jonathan E. Woods, 40, of Springdale, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud, 12 counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Randell G. Shelton Jr., 38, of Alma, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud, 10 counts of honest services wire fraud and one count of honest services mail fraud.
“Jonathan Woods abused his position as an Arkansas State Senator by soliciting and accepting kickbacks and Randall Shelton helped him cover it up by funneling the kickbacks through his consulting company,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials and those that help them conceal their crimes.”
“Abuse of the public trust cannot be tolerated and must be met with severe consequences,” said U.S. Attorney Kees. “I hope this verdict serves as a warning to all those that have been entrusted with serving the people.”
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 49, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, before Judge Brooks to one count of honest services wire fraud. Sentencings will be scheduled at a later date.
The FBI and IRS investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas are prosecuting the case.
Former Arkansas State Senator and Consultant Convicted for Bribery SchemeRead the Press Release
Fayetteville, AR – Former Arkansas State Senator and an Arkansas consultant have been convicted for a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks funneled through the consultant’s business, announced Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Jonathan E. Woods, 40, of Springdale, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud in violation of Title 18 U.S.C. § 1349, twelve counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Randell G. Shelton Jr., 38, of Alma, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud in violation of Title 18 U.S.C. § 1349, ten counts of honest services wire fraud and one count of honest services mail fraud.
“Jonathan Woods abused his position as an Arkansas State Senator by soliciting and accepting kickbacks and Randall Shelton covered it up by funneling the kickbacks through his consulting company,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials and those that help them conceal their crimes.”
“Abuse of the public trust cannot be tolerated and must be met with severe consequences.” said U.S. Attorney Kees. “I hope this verdict serves as a warning to all those that have been entrusted with serving the people.”
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas, to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 49, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, 2018, before Judge Brooks to one count of honest services wire fraud. Sentencings will be scheduled at a later date.
The FBI and IRS investigated the case. First Assistant U.S. Attorney Kenneth Elser, Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas and Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section prosecuted the case.
Florida Couple Pleads Guilty to Role in Scheme that Imported Steroids from China for Sale over the InternetRead the Press Release
BOSTON – A Florida couple pleaded guilty yesterday in federal court in Boston to their roles in a scheme that imported raw steroids from China and sold them over the internet to customers across the United States.
Michael Fulton, 46, and Rhonda Fulton, 52, both of Palm Bay, Fla., pleaded guilty to conspiracy to distribute steroids. U.S District Court Judge Mark L. Wolf scheduled their sentencings for Aug. 27, 2018.
From January 2016 to September 2016, an undercover agent purchased steroids listed for sale on ustraininggear.com, a website that advertised various types of steroids for sale. The website provided instructions on how to place orders and pay for steroids, and further provided an email address operated by co-conspirator Mark Lopilato, of Sanger, Texas, to place orders.
Customers ordered steroids from Mark Lopilato who forwarded the orders by email to Rhonda and Michael Fulton. Michael Fulton processed and prepared raw steroids according to the customers’ orders, and Rhonda Fulton packaged and mailed them. Mark Lopilato and the Fultons ordered the raw steroids through the internet from China, then paid for and received the raw steroids by mail. Mark Lopilato paid the Fultons for the preparation, packaging and mailing of the steroids to customers; he also paid Michael Lopilato, his brother in N.H., to maintain and operate the website.
In January 2017, the Fultons and Michael and Mark Lopilato were arrested and charged for their roles in the steroid scheme. The related searches revealed more than 60,000 dosage units of raw steroids, a tableting machine, steroid packaging and shipping materials, and approximately $20,000 in cash. As a result of a federal warrant, agents also seized the website ustraininggear.com.
Mark and Michael Lopilato pleaded guilty in February 2018. Michael is scheduled to be sentenced on June 6, 2018. Mark’s sentencing has not yet been scheduled.
The charge of conspiracy to distribute steroids provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $500,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; North Reading Police Chief Michael Murphy; North Andover Police Chief Charles Gray; and Burlington Police Chief Mike Kent made the announcement. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Five Pennsylvania physicians charged with unlawfully distributing buprenorphine and defrauding Medicare and MedicaidRead the Press Release
WASHINGTON - Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:
- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. 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 defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Pennsylvania Physicians Charged with Unlawfully Distributing Buprenorphine and Defrauding Medicare and MedicaidRead the Press Release
Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. 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 defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing, and the U.S. Department of Justice - Criminal Division’s Fraud Section’s Health Care Fraud Unit assisted in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Five Pennsylvania Physicians Charged with Unlawfully Distributing Buprenorphine and Defrauding Medicare and MedicaidRead the Press Release
WASHINGTON, DC – Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:
- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
“Alleged abuses of the health care system destroy the basic trust between providers and patients and between taxpayers and the government,” said FBI Special Agent in Charge Bob Johnson. “I commend the work of our health care fraud task force and want this to be a message to the community and physicians that these investigations are a high priority for the FBI.”
“Buprenorphine is used to help people struggling with substance use disorder from heroin and other narcotic pain killers. The allegations in this indictment against these five doctors are deeply troubling, as these doctors distributed this drug not to assist those struggling with addiction, but solely for profit,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As part of our overall mission to address the opioid crisis, the DEA will continue to aggressively target the rogue practitioners that contribute to this epidemic.”
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. 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 defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Gang Members Who Smuggled Drugs into Virginia Prisons Sentenced to PrisonRead the Press Release
Five members of the Mad Stone Bloods (MSB) gang were sentenced this week in the U.S. District Court for the Western District of Virginia in Roanoke for their roles in a criminal conspiracy that involved the smuggling of drugs and other contraband into Virginia prisons, and the facilitation of the sale of drugs outside the prisons, with the help of complicit corrections officers.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia made the announcement.
“Gangs that operate out of our prison systems not only bring drugs and violence into prison facilities – they also breed drug-fueled violence in our communities,” said Acting Assistant Attorney General Cronan. “The Criminal Division will continue to work together with local, state, and federal law enforcement partners to ensure that these career criminals and those who conspire with them are brought to justice.”
“Our office will continue to work with our state and local partners to target gang members who engage in violence, drug trafficking, and other illegal activities,” said U.S. Attorney Cullen.
On May 1, Terrance Nathaniel Brown, aka War, 29, was sentenced to serve 20 years in prison on a drug conspiracy conviction. Clifford Alexander Jennings, aka Big Cliff, 48, of Salem, Virginia, was sentenced to serve 12 years in prison on narcotics conspiracy offenses. Ronnie Monroe Nicholas Jr., aka RG, 37, of Crewe, Virginia, was sentenced to serve 12 years in prison on a racketeering conspiracy conviction. Michael Jamal Jones, aka M. Stone, 30, of Brooklyn, New York, was sentenced to serve 41 months in prison on a drug conspiracy conviction. Jermaine Shiquill Epps, aka Money, 28, of Madison Heights, Virginia, was sentenced to serve 24 months in prison on a drug conspiracy conviction.
According to admissions made in connection with the guilty pleas of Nicolas and Epps, and the evidence presented at the trials of Brown, Jennings, and Jones, the MSB gang operates in Virginia, New York, New Jersey, Connecticut, North Carolina, Georgia, Texas and Maryland, and engages in activities involving murder, narcotics trafficking, wire fraud and mail fraud both in and outside of prisons. The gang’s national leaders are based in New York and MSB leaders in Virginia report to those New York leaders.
According to admissions made in connection with the guilty pleas of Nicolas and Epps, and the evidence presented at the trials of Brown, Jennings, and Jones, the Mad Stone Bloods conspired to distribute and possess with the intent to distribute cocaine, crack cocaine, marijuana and heroin. In addition, gang members conspired with Virginia Department of Corrections employees, including correctional officers and an inmate counselor, to smuggle controlled substances, cellular phones and accessories and other contraband into various Virginia Correctional facilities to aid incarcerated MSB members.
The investigation was conducted by the FBI’s Richmond and Norfolk Divisions, the Virginia State Police, the Virginia Department of Corrections, the Norfolk Police Department, the Harrisonburg Police Department, the Rockingham County Sheriff’s Office and the Rockingham County Commonwealth’s Attorney. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Grayson A. Hoffman for the Western District of Virginia are prosecuting the case.
Federal Jury Convicts Lumberton Man for Drug Trafficking and Firearm OffensesRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today in Federal court, TRANQUERE SANCHEZ IRONS, a 30-year-old resident of Lumberton, was convicted following a two-day trial before Senior United States District Judge Malcolm J. Howard. The jury found IRONS guilty of Possession with the Intent to Distribute a Quantity of Cocaine Base (Crack), Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Being a Felon in Possession of a firearm. Sentencing is scheduled for August 7, 2018. IRONS faces up to life imprisonment.
The evidence at trial showed that on March 3, 2017, Officers with the Lumberton Police Department were conducting a license checkpoint. Officers noticed a vehicle, driven by IRONS, avoid the checkpoint and begin traveling at a high rate of speed. Officers pursued IRONS who ended up crashing his vehicle into two other vehicles. IRONS exited his vehicle and fled on foot but was captured by law enforcement officers. Officers searched IRONS’ vehicle and found a loaded Bryco .380 pistol, a loaded 9mm magazine, an AK-47, cocaine and crack cocaine, and digital scales.
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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Lumberton Police Department. John H. Bennett prosecuted the case on behalf of the United States.
FCI Danbury Inmate Charged with Possessing a WeaponRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging JOHN FAUCHER, 40, with possession of contraband in a federal prison.
The indictment alleges that, on March 12, 2018, FAUCHER, an inmate at the Federal Correctional Institution in Danbury (FCI Danbury), possessed a weapon or an object designed or intended to be used as a weapon.
If convicted of the charge, FAUCHER faces a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Ecuadoran Leader of Heroin Distribution and Money Laundering Ring Sentenced to PrisonRead the Press Release
The leader of a heroin distribution ring who laundered the proceeds back to his native Ecuador was sentenced today in U.S. District Court in Seattle to 57 months in prison, announced U.S. Attorney Annette L. Hayes. FREDY RAMON GUTAMA-GUTAMA, 26, who resided in Lynnwood, Washington, conspired with his brother and others to make drug sales in various parks in north Seattle and hide their drug supply in various publicly accessible locations. At the sentencing hearing U.S District Judge Thomas S. Zilly said “Heroin is a terrible epidemic in our country…. This defendant was participating in the distribution of a significant amount of heroin…. He sold 500 doses in one sale, and left heroin in places where there was access to everyone, including children.”
“This defendant and his heroin dealing contributed to the opioid crisis affecting our neighborhoods and communities,” said U.S. Attorney Hayes. “In addition, in an effort to avoid getting caught, he and his co-conspirators stashed their drugs in publicly accessible places, often near public parks, thus putting kids and others at unnecessary risk.”
According to records filed in the case, the defendants repeatedly sold heroin to a person working with law enforcement and sent the cash proceeds both across the country and to Ecuador. While under law enforcement surveillance, the conspirators stashed some of their drugs in a rockery in the Roosevelt neighborhood of north Seattle that was very near the park and children’s playground at the Ravenna-Eckstein Community Center. Law enforcement seized the drugs. The conspirators were also observed making drug sales at Green Lake Park and in Northacres Park. The men hid their drugs in a public place to reduce their risk of being caught by law enforcement with significant quantities of heroin in their possession.
FREDY RAMON GUTAMA-GUTAMA was indicted in March 2017, and pleaded guilty in January 2018 to conspiracy to distribute heroin and conspiracy to commit money laundering. His brother, Fabian Martin Gutama-Gutama, 20, pleaded guilty and was sentenced last month to 18 months in prison. Both men will likely be deported following their prison terms.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Sarah Vogel and Kate Vaughan.
If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 1 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website . If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (1 866 833 6546) to talk to a teen volunteer.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation.
Jonathan Julian Garcia, 38, a Dominican national residing in Roxbury, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year in prison and three years of supervised release. Garcia will be subject to deportation upon completion of his sentence. In January 2018, Garcia pleaded guilty to one count of illegal reentry of a deported alien.
Garcia was previously deported on Feb. 3, 2015. In October 2017, law enforcement encountered Garcia in Westwood and determined him to be illegally present in the United States.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Cudahy Man Indicted on Child Pornography and Child Enticement ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 1, 2018, a federal grand jury returned an indictment against Adam J. Westphal (age: 41) of Cudahy, Wisconsin. Westphal faces charges of attempted production of child pornography, distribution of child pornography, and the attempted enticement of a minor to engage in sexual activity, contrary to Title 18, United States Code, Sections 2251(a), 2252A, and 2422(b). He faces a mandatory minimum sentence of 15 years and up to a lifetime of incarceration in federal prison.
According to court filings, Westphal joined an online chat room named “taboo” under the user name “daddyinyouagain.” Soon thereafter, he began sending sexually explicit videos and photographs of pre-pubescent children to a person whom he believed to be a 34 year-old mother of a 14 year-old daughter, but was in actuality an undercover investigator with the state’s Internet Crimes Against Children (ICAC) Task Force. Eventually, Westphal made arrangements to travel to a residence in Neenah, Wisconsin, for the purpose of engaging in sexual activity with the 14 year-old girl and with the intent of making a pornographic video of the encounter which he could later share on the internet.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force and the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # # #
For further information contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Crofton Man Sentenced to 25 Years in Prison for Coercion and Enticement of A MinorRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Piere Ceradoy, age 37, of Crofton, Maryland, to 25 years in prison, followed by a lifetime of supervised release for coercion and enticement of a minor.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, between February 2016 and April 2017, Ceradoy repeatedly enticed a minor female to take photographs and stream live videos of herself engaging in sexually explicit conduct and send those images and videos to Ceradoy using a mobile phone and the Internet. During the course of the exploitation of the victim, Ceradoy frequently threatened to expose the victim by disseminating the explicit files, and regularly threatened to kill the victim and her family. Ceradoy also sent images and videos of himself engaged in sexually explicit conduct with the victim. The victim was 13 years old.
Ceradoy engaged in this conduct after two convictions in 2014 relating to aggravated sexual abuse, sexual abuse, and abusive sexual conduct involving a minor. During this time, he was on parole for a sex offense conviction in the state of Washington, and was registered as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur praised HSI Baltimore, the Maryland State Police and the Franklinton, North Carolina Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Court Shuts Down Charleston, South Carolina Tax Return PreparerRead the Press Release
A federal court in Charleston, South Carolina permanently enjoined Jacqueline Lowndes from preparing federal tax returns for others. The court also ordered Lowndes to mail a copy of the injunction order to all customers for whom she prepared a return for tax years 2012 through 2016. Lowndes agreed to the civil injunction order entered against her.
According to the complaint, Lowndes prepared federal income tax returns for customers that reported false, improper or inflated deductions which understated the customers’ income tax liabilities and increased their refunds. Lowndes also allegedly falsely claimed the Earned Income Tax Credit on behalf of customers who did not qualify for the credit by exaggerating the customers’ losses and expenses, falsely claiming dependents for customers, and falsely changing the filing status of customers. Returns prepared by Lowndes underreported tax liabilities or overstated tax refunds by over $600,000, according to the complaint.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Charged with Unlawful Possession of AmmunitionRead the Press Release
BOSTON – A Burlington man with at least four prior felony convictions was charged today in federal court in Boston with unlawfully possessing ammunition.
Brendan Sheils, 32, was indicted on one count of being a felon in possession of ammunition. In March 2018, Sheils was charged in federal court by complaint after he was arrested by state authorities.
According to the charging documents, in February 2018, a cooperating witness alerted law enforcement that while at Sheils’ residence in November 2017, the cooperating witness observed Sheils with ammunition and cleaning a large black gun.
On Feb. 23, 2018, law enforcement officers executed a state search warrant at Sheils’ home, where they seized a firearm (which turned out to be a “ghost gun,” an unregistered firearm created by purchasing the component parts and assembling the firearm by hand), 28 rounds of 5.56 caliber Lake City Army ammunition, one round of .223 caliber Federal ammunition, and one found of .22LR caliber Federal ammunition.
Sheils is prohibited from possessing firearms or ammunition due to prior felony convictions, which include: a 2009 conviction for resisting arrest; a 2013 conviction for possession with intent to distribute a Class A controlled substance; a 2013 conviction for assault with a dangerous weapon, specifically, a handgun; and two separate 2013 convictions for possession of a firearm without an identification card.
Sheils faces a sentence of no greater than 10 years in prison, up to three years of 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 Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colombian alien pleads guilty to using stolen identity to obtain ID, driver’s license in MonroeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that an illegal alien from Colombia pleaded guilty Wednesday to using a stolen birth certificate and Social Security card to obtain identification cards in Monroe.
Jimmy Hurtado, 35, of Colombia, pleaded guilty before U.S. District Judge Terry A. Doughty to one count of falsely representing to be a citizen of the United States, one count of false representation and use of a Social Security number, and one count of aggravated identity theft. According to the guilty plea, Hurtado used the identity of a United States citizen from Puerto Rico in 2010 to obtain a state-issued identification card from the Monroe Department of Public Safety Office. He supplied a birth certificate and a Social Security number. He renewed the identification card in 2011 and 2012 and obtained a driver’s license using the same documents he used to obtain the state-issued identification card.
Hurtado faces up to three years in prison for the false representation count, five years in prison for the Social Security count, and a mandatory two years in prison for the identity theft count, which is to run consecutively to sentences of the other two counts. He also faces three years of supervised release and a $250,000 fine. The court set sentencing for July 11, 2018.
The U.S. Postal Inspection Service, ATF and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Citrus Heights Man Indicted for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Emanuel Mois, 25, of Citrus Heights, was arraigned today on an indictment charging him with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Mois knowingly received visual depictions of minors engaged in sexually explicit conduct between November 2016 and February 2017.
This case is the product of an investigation by the Federal Bureau of Investigation and the Citrus Heights Police Department, with assistance from the Roseville Police Department. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
If convicted, Mois faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Charleston Man and Airport Service Business Plead Guilty to Hazardous Waste ChargeRead the Press Release
CHARLESTON, W.Va. – Brian Scott Miller, the President of Executive Air Terminal, Inc., and Executive Air Terminal, Inc. each pled guilty to the felony offense of Storage of Hazardous Waste without a Permit, announced United States Attorney Mike Stuart. Executive Air provides fueling and other services for private and commercial airplanes at Yeager Airport in Charleston. Miller is the owner and president of Executive Air. Stuart praised the work of the Environmental Protection Agency (EPA), West Virginia Department of Environmental Protection and the Yeager Airport Police Department.
“Business owners have a responsibility to legally and safely dispose of hazardous waste,” said United States Attorney Mike Stuart. “And everyone will be held accountable for violating these responsibilities.”
Miller, 56, of Charleston, faces up to 5 years of in prison, a $250,000 fine, supervised release for three years, and a special assessment when he is scheduled to be sentenced on July 19, 2018 by United States District Judge Joseph R. Goodwin. Executive Air faces a corporate fine of up to $500,000.
Executive Air’s business of fueling and servicing planes generated hazardous waste. The waste was stored in unlabeled 55 gallon drums that were kept on site. By September of 2015, Executive Air had accumulated 37 drums of waste fluid, of which 27 drums were hazardous under federal law. The 27 drums of hazardous waste included a mix of oil, aviation gas, and jet fuel, and each drum was hazardous because it was either ignitable, toxic, or both. Executive Air did not have the federally required permit to store such a large quantity of hazardous waste. Miller admitted that he knew about the drums of waste material at Executive Air. In his plea agreement, Miller admitted that he directed that employees of Executive Air to dispose of the waste drums in September of 2015. Instead of hiring a licensed hazardous waste hauler, the employees moved the drums in the middle of the night to a farm outside Charleston, West Virginia. The drums were further moved to a building in Charleston where they were discovered by the U.S. Environmental Protection Agency Criminal Investigation Division in November 2015. Once discovered, the drums were then sent to a licensed hazardous waste disposal facility for proper disposal.
Assistant United States Attorney Erik S. Goes and Special Assistant United States Attorney Perry D. McDaniel are handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Carroll County Public School Teacher Indicted for Child Pornography Production and Related Charges Including Attempted Enticement of A Minor to Engage in Illegal Sexual ActivityRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On May 2, 2018, a federal grand jury returned a superseding indictment against Kenneth Brian Fischer, age 40, of Westminster, Maryland for production of child pornography, attempted production of child pornography, transportation of child pornography, receipt of child pornography, and using a facility of interstate commerce to attempt to entice a minor to engage in sexual activity.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff James T. DeWees of the Carroll County Sheriff’s Office; Colonel Edwin C. Roessler Jr. of the Fairfax County, Virginia Police; the Carroll County State’s Attorney’s Office, and the Fairfax County Commonwealth's Attorney’s Office.
According to the eight-count indictment, Fischer was a resident of Carroll County, Maryland and was employed as a teacher by the Carroll County School System. Fischer used social media applications, including Kik and Grindr, to meet and communicate with underage minor males for the purpose of enticing and directing the minors to produce depictions of sexually explicit conduct and send them to Fischer.
In or about August 2017, law enforcement identified Fischer after he communicated with an undercover agent posing as a minor male on Grindr. Law enforcement subsequently executed a search warrant at Fischer’s home in Westminster, Maryland and seized various electronic devices. A search on a cell phone revealed that Fischer had been communicating with five real minors beginning in November 2014 and continuing through his arrest in September 2017.
According to the indictment, Fischer enticed three minor males to engage in sexually explicit conduct for the purpose of producing child pornography. Fischer also attempted to entice two minor males to engage in sexually explicit conduct for the purpose of producing child pornography. Fischer also sent e-mail messages containing videos and still images of one of the minor males engaged in sexually explicit conduct. Fischer received an image of another one of the minor males engaged in sexually explicit conduct.
Fischer was previously arrested in Westminster, Maryland on related charges and has been in custody since September 13, 2017.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Maryland State Police, the Carroll County Sheriff’s Office, the Carroll County State’s Attorney’s Office, the Fairfax County Police, and the Fairfax County Commonwealth’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Cambridge Hedge Fund Manager Sentenced for Investment Fraud SchemeRead the Press Release
BOSTON – The owner of two Cambridge-based investment advisory firms was sentenced today in federal court in Boston in connection with a scheme to defraud hedge fund investors.
Yasuna J. Murakami, 45, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to six years in prison and three years of supervised release. The Court also ordered Murakami to pay $10,520,634 in restitution and forfeit a luxury sports car that was purchased with proceeds of the fraud. In January 2018, Murakami pleaded guilty to wire fraud.
Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which he established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund. Between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts that he controlled. He used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores. Murakami used new investor contributions to make Ponzi scheme-like payments to earlier investors who had made redemption requests and to place investments in his own name.
As part of the fraud, Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing that their investments were safe.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms in May 2017. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. In January 2017, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, prosecuted the case.
Buffalo Man Pleads Guilty to Selling Crack Cocaine in BuffaloRead 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 Nathanial Myers, 26, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribute 280 grams or more of crack cocaine, before Chief U.S. District Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between February and July of 2015, the defendant, along with several others, distributed crack cocaine base throughout the areas of Lombard, Rother, Gibson, and Playter Streets in Buffalo. During this same time, Myers would supply the crack cocaine to his co-conspirators for further re-sale.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.Sentencing is scheduled for August 9, 2018, at 10:00 a.m. before Judge Geraci.
Buffalo Man Pleads Guilty to Drug ChargeRead 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 Jesus Rojas, 32, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution of, cocaine and crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between October 27, 2016, and October 23, 2017, the defendant sold cocaine to a confidential source working with law enforcement officers on five separate occasions. On January 5, 2017, a search warrant was executed at Rojas’s residence on Military Road in Tonawanda. Officers seized over 25 grams of marijuana and a digital scale. A second search warrant was executed on October 23, 2017, and officers seized another quantity of marijuana.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 20, 2018, before Judge Arcara.
Brazilian National Pleads Guilty to Aggravated Identity Theft in Card-Skimming SchemeRead the Press Release
U.S. Attorney Duane A. Evans announced that Herik Lucian Enedino Dos Santos (“DOS SANTOS”), age 32, a citizen of Brazil, pleaded guilty yesterday before U.S. District Judge Sarah S. Vance to aggravated identity theft.
According to the court documents, Dos Santos and three other Brazilian nationals were arrested by members of the Louisiana Financial Crimes Task Force at a hotel in the Algiers neighborhood of New Orleans on August 3, 2017. Federal and state law enforcement officers found the defendants in possession of re-encoded credit cards that contained stolen debit card information from actual customers. These individuals also possessed embossers, encoders, ATM skimmers, false identification, and other contraband. In a coordinated investigation in Oklahoma City, U.S. Secret Service agents arrested another Brazilian national who had been mailing skimmers, pinhole cameras, and other tools for credit card fraud to the four New Orleans-based members of this conspiracy.
Dos Santos pleaded guilty to one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. He faces a mandatory sentence of two years in prison, one year of supervised release, and a $250,000.00 fine or a fine equal to the greater of twice the gross gain or twice the gross loss caused by this offense. Judge Vance scheduled the sentencing for August 22, 2018.
U.S. Attorney Evans praised the agencies that contributed to this investigation, which was a coordinated effort among federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Department, and the New Orleans Police Department. U.S. Attorney Evans thanked the U.S. Secret Service Oklahoma City Field Office and the Midwest City, OK Police Department for their assistance. Assistant United States Attorney Matthew Payne is in charge of the prosecution.
Boston Gang Member Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A member of the Vine/Forest Street gang was sentenced yesterday in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Daiquan Lucas, a/k/a “Sav Montana,” 25, of Boston, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison and six years of supervised release. While on supervised release, Scott will be precluded from entering the Orchard Gardens Housing Development and from being in contact or associating with approximately 20 individuals from the same area. In December 2017, Lucas pleaded guilty to distribution of cocaine base within 1,000 feet of a school.
On Dec. 11, 2015, Lucas sold cocaine base, a/k/a crack cocaine, to a cooperating witness near a school in Roxbury. Lucas is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city that have produced numerous crimes of violence.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Barkhamsted Man Sentenced to Prison for Distributing Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GARRETT GOMEZ, 27, of Barkhamsted, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months of imprisonment, followed by four years of supervised release, for distributing fentanyl involved in an overdose death in 2016.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 20, 2016, Torrington Police and emergency medical personnel responded to a residence in Torrington and found a deceased 30-year-old male lying on his bed. At the scene, investigators collected six wax paper folds and three torn wax paper folds found on a bedside table. They also found a hypodermic needle at the feet of the victim.
Subsequent laboratory testing of the contents of the wax folds confirmed the presence of fentanyl, and the State of Connecticut Office of the Chief Medical Examiner determined that the victim died from acute fentanyl intoxication.
The investigation, which included analysis of text messages contained on the victim’s cell phone, revealed that in the evening of May 19, 2016, the victim agreed to meet with GOMEZ to purchase “9 for 60.” In the victim’s automobile, investigators found an ATM receipt showing a $60 withdrawal.
GOMEZ was arrested on a federal criminal complaint on August 23, 2016. On November 13, 2017, he pleaded guilty to one count of distribution of fentanyl.
As part of the sentence, Judge Meyer ordered GOMEZ to pay restitution of $10,194 to the victim’s family to cover the victim’s funeral expenses.
This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force and the Torrington Police Department. The Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Albuquerque Felon Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Daniel Penrod, 29, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by being a felon in possession of a firearm and ammunition. Penrod entered the guilty plea under a plea agreement that recommends a sentence within the range of 87 to 108 months imprisonment followed by a term of supervised release to be determined by the court.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Penrod in Jan. 2018, on a criminal complaint that charged Penrod with being a felon in possession of a firearm and ammunition on Jan. 16, 2018, in Bernalillo County, N.M. According to the criminal complaint, while Deputy U.S. Marshals were executing an arrest warrant on Penrod for a probation violation, Penrod attempted to flee. During the pursuit that ensued, Penrod turned towards a Deputy U.S. Marshal and drew a loaded firearm out of his waistband, whereupon the Deputy U.S. Marshal disarmed and arrested Penrod.
During today’s proceedings, Penrod pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Penrod admitted he possessed a firearm, which he pulled from his waistband as he turned toward the Deputy U.S. Marshal who was pursuing him on Jan. 16, 2018. Penrod acknowledged that at the time, he was prohibited from possessing firearms or ammunition because of his prior felony convictions for receiving or transferring a stolen motor vehicle, 2nd degree murder, and battery upon a police officer.
Penrod has been in custody since his arrest and will remain in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of removing them from communities in New Mexico for as long as possible.
Wednesday 2 May 2018
“Barrel Chested Bandit” Sentenced to 10 Years’ Prison for Multi-State Bank Robbery SpreeRead the Press Release
TUCSON, Ariz. – On Tuesday, May 1, 2018, Anthony James Lane, 51, of Tucson, Ariz., originally from Missouri, was sentenced by U.S. District Judge Cindy K. Jorgenson to 120 months’ imprisonment. Lane had previously pleaded guilty to eleven counts of bank robbery and one count of attempted bank robbery.
During a six-month crime spree involving six states, Lane robbed and attempted to rob twelve banks with the use of a simulated handgun. He was dubbed the “Barrel Chested Bandit” due to descriptions provided by witnesses. He stole over $74,000 from the banks. The guilty plea resolves the investigations conducted by six law enforcement agencies.
The investigation in this case was conducted by the Federal Bureau of Investigation and various state law enforcement agencies in six different states. The prosecution was handled by Carmen F. Corbin and Raquel Arellano, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-00483-TUC-CKJ
RELEASE NUMBER: 2018-054_Lane
# # #
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.
Wilkes-Barre Township Man Pleads Guilty to Theft of MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph Stefanski, age 37, of Wilkes-Barre Township, Pennsylvania, pleaded guilty today before Senior United States District Court Judge James M. Munley to theft of mail.
According to United States Attorney David J. Freed, Stefanski admitted to stealing mail between December 2014 and February 2015. The thefts were discovered after postal customers in the areas of Dallas, Shavertown, Plains, Trucksville and Luzerne Township, Luzerne County, complained about mail that was not received and mail that was received with contents missing. Some of the missing contents included cash, gift cards, and lottery tickets.
Further investigation revealed that Stefanski, who was employed by a trucking company hired to transport mail from one post office to another, had removed mail and its contents from mail containers in his truck.
Judge Munley ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the United States Postal Service, Office of Postal Inspection Services. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
White River Woman Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Crystal Earth, age 26, was indicted on April 17, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 30, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 26, 2018, Earth assaulted an individual with a knife with intent to do bodily harm and that assault resulted in serious bodily injury.
The charges are merely accusations and Earth is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Earth was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Warner Robins Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Troy Anthony Lewis, age 47, of Warner Robins, Georgia, plead guilty to Failure to Register as a Sex Offender on May 1, 2018 before the U.S. District Court Judge Marc T. Treadwell in Macon, Georgia.
The indictment charged Mr. Lewis, a person required to register under the Sex Offender Registration and Notification Act, with traveling in interstate commerce and knowingly failing to register and update his registration as required by the Sex Offender Registration and Notification Act.
This plea will subject Mr. Lewis to a maximum sentence of ten (10) years imprisonment, a maximum fine of $250,000, or both. Mr. Lewis will also be required to serve a term of supervised release of at least five years, up to the possibility of a lifetime of supervision. Mr. Lewis must also continue to register as a sex offender. Sentencing is currently scheduled for August 29, 2018.
The case was investigated by the United States Marshals Service. Assistant United States Attorney Elizabeth Howard prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Violent Meth Distribution Ring Member Receives Sixteen Year SentenceRead the Press Release
U.S. Attorney Mark Klaassen announced today that Arapahoe resident Cameron Means-Goodman has been sentenced by Chief Federal District Court Judge Nancy D. Freudenthal to 195 months of imprisonment, 96 months of supervised release and ordered to pay $410.00 in court costs and $1,590.00 in community restitution. This sentencing follows a jury verdict in February 2018, finding Means-Goodman guilty of Conspiracy to Distribute Methamphetamine, Possession with Intent to Distribute Methamphetamine, Using and Carrying a Firearm During and In Relation to a Federal Drug Trafficking Crime, Felon in Possession of a Firearm, and Assault.
Means-Goodman was the leader of violent methamphetamine distribution ring, which had been operating on the Wind River Indian reservation. She and four other defendants were charged as a result of an investigation into a shooting that took place near Arapahoe, Wyoming, in July of last year. Means-Goodman and other defendants who were involved in distribution of methamphetamine went to the property of Joseph Miller where she and her other cohorts fired shots into the occupied residence. The other defendants involved in the case received sentences ranging from three to eight years in federal prison.
"This case is an example of what we can achieve through the combined efforts of federal, local, and tribal law enforcement officers focused on bringing down violent criminal drug distribution operations," said United States Attorney Mark Klaassen. "Methamphetamine continues to be a plague on many of our communities, including those on the Wind River Reservation. My office is committed to identifying criminals who are trafficking these substances to ensure they are brought to justice. We cannot reduce our drug and violent crime problems without a concerted effort and strong partnerships with our federal, state, local, and tribal law enforcement partners."
Mr. Klaassen commended Assistant U.S. Attorney Kerry J. Jacobson, who prosecuted this case, along with paralegal support from Mikala Dawson and the assistance of the Bureau of Indian Affairs, the Wind River Police Department, the Fremont County Sheriff’s Office, U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
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.
Vietnamese National Pleads Guilty to Wire Fraud, Identity Theft, and Money Laundering SchemeRead the Press Release
BOSTON – A Vietnamese national pleaded guilty today in federal court in Boston to his role in an international scheme to use stolen payment card data and personally identifiable information to purchase and re-sell hundreds of thousands of dollars’ worth of consumer goods.
Tuan Dinh Nguyen, 30, a Vietnamese national, previously living in Melbourne, Australia, pleaded guilty to one count of wire fraud conspiracy, one count of money laundering conspiracy, 13 counts of money laundering and aiding and abetting, and one count of aggravated identity theft. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Aug. 1, 2018.
In August 2015, Nguyen was indicted in federal court in Boston. Nguyen was then arrested in Australia in June 2017, and on Oct. 5, 2017, he was extradited to the United States.
Between December 2007 and December 2013, Nguyen and at least three others conspired to use stolen payment card data and personally identifiable information to purchase consumer goods online and to re-sell those items on auction websites, including Amazon, eBay, and Buy.com; they then wired the proceeds overseas.
Nguyen and his co-conspirators created fraudulent accounts on multiple auction websites, or used stolen usernames and passwords to take over subscribers’ legitimate accounts. They then posted popular goods for sale at a discounted price, including Apple merchandise, electronics, personal care items and books. However, Nguyen and his co-conspirators did not own or otherwise have these goods to sell. Instead, when customers of the auction websites purchased and paid for these items, Nguyen and his co-conspirators used stolen payment card and personally identifiable information to buy the items from Walmart.com or other e-commerce websites, and then shipped the items to the auction website customers, who never knew that the items they received had been purchased with stolen credit cards and re-sold to them at discounted prices.
To obtain the proceeds of the scheme, Nguyen and his co-conspirators recruited U.S. residents to withdraw and wire overseas the money that the unwitting customers had paid through the auction websites. In total, Nguyen and his co-conspirators stole and re-sold approximately $500,000 in consumer goods.
The charges of wire fraud conspiracy, money laundering, and money laundering conspiracy provide for a sentence of no greater than 20 years in prison, three years of supervised release, forfeiture and restitution. The wire fraud charge carries a fine of up to $250,000, or twice the conspiracy’s gain or loss to any victim; and the money laundering conspiracy charge carries a fine of up to $500,000, or twice the amount of the money laundered. The aggravated identity theft charge provides for a mandatory two-year sentence to be served consecutively to any sentence imposed for the wire fraud conspiracy charge. Sentences are imposed by a U.S. district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Australia’s Attorney-General’s Department, the Australian Federal Police, and the U.S. Department of Justice’s Office of International Affairs provided assistance in securing Nguyen’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Lelling’s Cybercrime Unit is prosecuting the case.
Utah PSN Partners Target Those Who “Lie-And-Try” to Purchase A Firearm; Two Federal Firearms Licensees Also ChargedRead the Press Release
SALT LAKE CITY -- Utah Project Safe Neighborhoods partners have a message for those who “lie-and-try” in attempting to purchase a firearm from federal firearms licensees in Utah: If you lie on paperwork you are required to complete to purchase a firearm, you may end up facing a federal prison sentence.
Individuals restricted from possessing a firearm are not the only ones who could end up in federal court. Federal firearms licensees (FFLs), who sell or transfer a firearm to a prohibited person, allow a straw purchaser to buy a gun for someone else, or fail to keep proper records of who they sell firearms to, also face potential criminal prosecution as well.
"Our background check systems are only as good as the information they receive," U.S. Attorney General Jeff Sessions said. "I have ordered our prosecutors to more aggressively charge those who lie to the background check system in order to try to get guns illegally. Under my tenure as Attorney General, we have already increased federal gun prosecutions to a 10-year high and violent crime prosecutions to a 25-year high. We are just getting started. We intend to break these records again, punish more criminals who try to cheat the system, and deter many more from lying to a background check in the first place."
“The Utah Project Safe Neighborhoods initiative fully supports the right of Utahns to own firearms and does not target legitimate firearms owners,” U.S. Attorney John W. Huber said today. “Our first priority is to stop crime before it is committed. Keeping firearms out of the hands of those with felony convictions or other prohibiting factors is a key part of our efforts to make Utah communities safer. A firearm in the hands of a gang member with a felony conviction or someone convicted of a domestic violence offense is a recipe for more violent crime. Those who attempt to circumvent the law by selling guns to prohibited individuals or those who lie to try to buy one are committing federal crimes.”
“ATF partners with the West Valley City and Unified Police departments, as well as federal firearm licensees, to combat lie-and-buy cases,” ATF Special Agent in Charge Debbie Livingston said today. “These partnerships are critical to our success.”
Two indictments returned by a federal grand jury last week targeted federal firearms licensees with violations of federal law related to the sale of firearms.
William Hammond, age 78, of North Salt Lake City, and Kristine Vanorman, age 57, of Woods Cross, Utah, are charged in an indictment with three counts of sale or transfer of a firearm to a prohibited person in relation to transactions occurring at their business. Hammond is charged in the first count of the indictment with selling a firearm to a person the indictment alleges he had reasonable cause to believe was prohibited from possessing a firearm. Vanorman is charged in the second count with selling a firearm to a person having reasonable cause to believe the person was prohibited from possessing a firearm under federal law. Both Hammond and Vanorman are charged in the third count with selling a firearm to a prohibited person. The sales involved straw purchases where an individual was allowed to purchase a firearm for an individual prohibited from possessing a firearm under federal law. Hammond and Vanorman are the responsible parties for the federal firearms license. The maximum potential penalty for each count in the indictment is 10 years in prison.
In a second indictment, Kenneth Gene Yama, age 68, of Moab, is charged with two counts of failure by a federal firearms licensed dealer to keep proper records. The indictment alleges Yama sold firearms at his business to individuals without noting the name, age, and place of residence of the firearms purchaser in records he is required to maintain under federal law. The maximum potential penalty for each count is five years in prison.
Six indictments recently returned by a federal grand jury target individuals with alleged “lie-and-try” efforts to get a firearm. In each case, the indictment alleges the individuals knowingly made a false statement intended to deceive as they were attempting to purchase a firearm from a licensed firearms dealer. Defendants in five of the cases answered no when asked if they were convicted felons. The sixth defendant falsely claimed that he had never been convicted of a misdemeanor crime of domestic violence. The potential maximum penalty for making a false statement during the purchase of a firearm is 10 years in prison.
Defendants charged in the “lie-and-try” attempts are Tyrone Gary Taylor, age 43, of Elko, Nevada; Reginaldo Villicana, age 28, of Magna; Joshua Ian Newell, age 36, of Salt Lake City; Aaron James Stock, age 38, of Cottonwood Heights; Saul Perez, age 32, of Magna; and Michael Dean Brattin, age 27, of Tooele.
To aid federal firearms licensees in complying with federal law designed to keep our communities safe, PSN has produced a limited number of oversized clipboards. When buyers are filling out or signing background check paperwork, the clipboards carry the clear warning to would-be unlawful purchasers and their accomplices that serious penalties are in store for the violation of federal law.
PSN is a program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. U.S. Attorney General Sessions reinvigorated PSN in 2017 as part of the Department of Justice’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, local strategies to reduce violent crime. PSN is based on five key principles: leadership, partnership, targeted and prioritized enforcement, prevention of additional violence, and accountability.
“The heart of PSN is partnership. None of us can combat violent crime on our own. We all have a role to play—federal, state, local, and tribal law enforcement; prosecutors; community members and organizations; victims’ advocates; social service providers; and many others. If we work together, we can have a meaningful impact on our communities,” Huber said today.
So far, 97 PSN firearms cases have been indicted this year in Utah.
Upshur County man sentenced for his role in a stolen firearms and methamphetamine operationRead the Press Release
ELKINS, WEST VIRGINIA – Dustin Cain Anderson, of Buckhannon, West Virginia, was sentenced today to 21 months incarceration for his role in a stolen firearms and meth distribution operation, United States Attorney Bill Powell announced.
Anderson, age 24, pled guilty to one count of “Possession of a Stolen Firearm – Aiding and Abetting” in January 2018. Anderson admitted to conspiring with others to receive, possess, barter, sell, conceal and dispose of 21 firearms in Upshur County in October 2016.
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.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. District Judge John Preston Bailey presided.United States Returns Thousands of Ancient Artifacts to IraqRead the Press Release
Today, the United States will return approximately 3,800 Iraqi artifacts to the Republic of Iraq at a repatriation ceremony at the residence of the Republic of Iraq’s Ambassador to the United States in Washington, D.C. The artifacts were smuggled into the United States for delivery to Hobby Lobby Stores, Inc. (“Hobby Lobby”), a nationwide arts-and-crafts retailer based in Oklahoma City, Oklahoma, and two of its corporate affiliates. Hobby Lobby agreed to forfeit these artifacts and $3 million to resolve a civil forfeiture complaint and multi-year investigation by the United States Attorney’s Office for the Eastern District of New York and U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
U.S. Immigration and Customs Enforcement (ICE) Acting Director Thomas D. Homan and Iraq’s Ambassador to the United States Fareed Yasseen will sign the ceremonial certificates transferring ownership of the artifacts from the United States to Iraq. Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ian Saunders, Acting Assistant Commissioner, Office of International Affairs, U.S. Customs and Border Protection will also participate in the repatriation ceremony.
“The Republic of Iraq, standing on the land that was once home to the storied city-states and kingdoms of Mesopotamia, has a celebrated heritage as a cradle of civilization,” stated U.S. Attorney Donoghue. “We are proud to have played a role in removing these pieces of Iraq’s history from the black market of illegally obtained antiquities and restoring them to the Iraqi people.” U.S. Attorney Donoghue thanked Dr. Eckart Frahm of Yale University and Dr. Elizabeth C. Stone from Stony Brook University (SUNY) for their assistance.
“On behalf of U.S. Immigration and Customs Enforcement (ICE), and thanks to the hard work of the Office of the Special Agent in Charge in New York, it is a great honor for me to return so many priceless cultural artifacts to the people of Iraq,” stated ICE Acting Director Homan. “I would like to thank my colleagues at U.S. Customs and Border Protection and the U.S. Attorney’s Office for the Eastern District of New York for making this repatriation possible,” Homan added. “We will continue to work together to prevent the looting of antiquities and ensure that those who would attempt to profit from this crime are held accountable. This ceremony should serve as a powerful reminder that nobody is above the law.”
Background
In July 2010, Hobby Lobby’s president and a consultant traveled to the United Arab Emirates (UAE) to inspect a large number of cuneiform tablets and other antiquities being offered for sale. Following this trip, an expert on cultural property law warned Hobby Lobby that cuneiform tablets and cylinder seals were particularly likely to have been looted from Iraqi archaeological sites. Hobby Lobby proceeded to purchase a set of 5,548 artifacts in late 2010. Two-thirds of these artifacts were shipped in 2010 and 2011 by foreign antiquities dealers who made false statements on shipping labels, failed to file formal entry papers with U.S. Customs and Border Protection, and supplied fabricated provenances and sham invoices.
In July 2017, the government filed a civil forfeiture complaint and a stipulation of settlement in which Hobby Lobby consented to the forfeiture of approximately 3,500 ancient cuneiform and bullae that comprised part of the 2010 purchase, plus 144 cylinder seals and $3 million. Hobby Lobby also agreed to identify, turn over to the United States and forfeit any additional artifacts from the 2010 purchase that came to light. Hobby Lobby further agreed to adopt internal policies and procedures governing its importation and purchase of cultural property, provide appropriate training to its personnel, hire qualified outside customs counsel and customs brokers, and submit quarterly reports to the U.S. Attorney’s Office on any cultural property acquisitions for 18 months. In addition, Hobby Lobby stipulated to a statement of facts that related the history of its purchase of thousands of Iraqi artifacts in 2010, the red flags surrounding that acquisition, and the improper shipments of these artifacts.
In September 2017, pursuant to its obligations under the stipulation with the government, Hobby Lobby advised the government that it was in possession of 245 additional cylinder seals that were part of the 2010 purchase. In October 2017, Hobby Lobby shipped these cylinder seals to the United States and subsequently entered into a stipulation with the United States consenting to their forfeiture.
The Repatriated Antiquities
The antiquities being repatriated to Iraq at today’s ceremony consist of approximately:
- 450 cuneiform tablets
- 3,000 clay bullae
- 371 cylinder seals[1]
Cuneiform is an ancient system of writing on clay tablets that was used in ancient Mesopotamia thousands of years ago. The names of people, places and months used on a number of the cuneiform tablets confirm that they originated in the area of modern-day Iraq. Clay bullae are balls of clay on which seals have been imprinted. Cylinder seals are small engraved stone cylinders. When rolled on wet clay, they create raised images in the clay that can include pictures and cuneiform writing.
All of the artifacts were civilly forfeited in the Eastern District of New York. Iraq’s petitions for their return were approved by the chief of the Money Laundering and Asset Recovery Section of the Department of Justice.
The government’s case was handled by Assistant United States Attorneys Karin Orenstein and Ameet Kabrawala.
E.D.N.Y. Docket No. 17-CV-3980 (LDH) (VMS)
[1] In February 2018, 18 of the 144 cylinder seals that Hobby Lobby delivered to the government in connection with the July 2017 settlement were determined to be Egyptian Scarabs and are not included in this repatriation.
United States Attorney Russell Coleman Announces His Appointment of A Full-Time Law Enforcement CoordinatorRead the Press Release
LOUISVILLE, Ky. - United States Attorney Russell M. Coleman announced today the appointment of Major Jeremy V. Thompson previously of the Kentucky State Police (KSP) as the U.S. Attorney’s new Law Enforcement Coordinator.
“One of the first executive orders issued by the president was to “back the blue” and we are committed to building upon our relationships with law enforcement partners across the district, from Prospect to the Purchase” stated United States Attorney Russell M. Coleman. “Major Thompson’s more than two decades with KSP and fire in his belly for protecting Kentuckians will be a force-multiplier as we continue to expand our targeting of drug trafficking organizations, illegal gun crimes, and gangs in our Commonwealth.”
Mr. Thompson began his law enforcement career with the Kentucky State Police as a Trooper and was ultimately promoted to Major. Most recently, he served as the West Troop Major in the Operations Division where he supervised 8 Post Commanders in the western half of the Commonwealth, covering 64 counties and was responsible for over 300 personnel, both sworn and civilian. In that capacity Thompson served on the command staff of the KSP Commissioner. Thompson previously served as an Assistant Post Commander and as an Investigations Sergeant at Post 4 in Elizabethtown. He is a graduate of the Administrative Officers Course at the Southern Police Institute where he was the Valedictorian and Director’s Award Recipient. Thompson is also a decorated veteran of the United States Air Force.
As Law Enforcement Coordinator, his new duties will involve advising the U.S. Attorney and serving as a liaison with federal, state, and local law enforcement agencies in the 53 counties of the Western District of Kentucky which stretches from suburban Louisville to the river counties west of Paducah. Previously, the Law Enforcement Coordinator position was a collateral duty but U.S. Attorney Coleman chose to elevate the role to a full-time assignment given its import to the U.S. Attorney’s priorities of addressing violent crime and drug trafficking.
Mr. Thompson resides with his family in Radcliff, Kentucky. He is active in the Hardin County community as a volunteer basketball, baseball and softball coach.
“The announcement today of a full-time Law Enforcement Coordinator of Jeremy Thompson’s caliber is one more down payment on our promise to stand with our law enforcement partners in tackling crime in our entire district,” stated U.S. Attorney Coleman.
UNF Student Arrested and Charged with Distributing Child Sex Abuse Videos over the InternetRead the Press Release
Jacksonville, Florida – Anthony Davis Stagnitta (21, Jacksonville) has been arrested and charged by a federal criminal complaint with knowingly distributing child pornography using the internet. He faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison and a potential life term of supervised release. Stagnitta was detained pending a detention hearing that is scheduled for May 24, 2018.
According to the complaint, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted an undercover child exploitation investigation and determined that an individual using a messaging application had distributed two videos depicting the sexual abuse of infant children. The user was traced to Stagnitta’s home. On April 30, 2018, law enforcement officers executed a search warrant at his residence. During an interview, Stagnitta stated that he was a member of multiple group chats that discussed child pornography on this particular app, that he had sent videos containing child pornography to other app users via private messaging or posted them in the group chats, and that he had received approximately 150 files containing child pornography. An onsite forensic examination of Stagnitta’s smart phone revealed at least 25 images depicting young girls and boys being sexually abused.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney's Office and Trumbull County Prosecutor's Office jointly designate prosecutors to work drug trafficking cases togetherRead the Press Release
U.S. Attorney Justin Herdman and Trumbull County Prosecuting Attorney Dennis Watkins have cross-designated members of their respective offices to work together prosecuting drug trafficking cases, including those involving fatal overdoses.
Trumbull County Assistant Prosecuting Attorney Gina Buccino-Arnaut was sworn in as a Special Assistant United State Attorney and Assistant U.S. Attorney David M. Toepfer was sworn in as a Trumbull County Assistant Prosecuting Attorney.
The cross designation will allow both offices to better share information and work on each other’s cases, allowing for more effective and efficient prosecutions of drug traffickers.
Herdman has made combating opioids and other drugs in Trumbull County a priority, providing additional resources to help analyze drug trafficking patterns in the region. The office can also seek additional penalties in federal court in cases where it can prove the sale of a specific drug resulted in the death of another person.
“This continuing partnership will allow our offices to work together to help make Trumbull County safer,” Herdman said. “We look forward to continuing to work with all our law enforcement partners in the region.”
U.S. Attorney Meets with South Dakota Police Chiefs’ Association and Sheriffs’ AssociationRead the Press Release
Deadwood, SD – United States Attorney Ron Parsons attended the Spring Conference of the South Dakota Police Chiefs’ Association and South Dakota Sheriffs’ Association held in Deadwood, South Dakota, on April 17-19, 2018. Dennis Holmes, Criminal Chief for the District, also represented the U.S. Attorney’s Office at the conference.
U.S. Attorney Parsons briefed the gathering of top local law enforcement officers on Department of Justice efforts to combat violent crime and drug trafficking, including the reinvigoration of Project Safe Neighborhoods and increased focus on prosecuting drug dealers responsible for overdose deaths. He also attended panel discussions on the opioid epidemic’s impact on South Dakota and Operation Safe Streets, a neighborhood policing initiative by the Sioux Falls Police Department and South Dakota Highway Patrol.
During the conference, several South Dakota law enforcement officers were honored for their bravery in the line of duty and other extraordinary efforts on behalf of the people they serve.
“The men and women who wear the badge risk their own lives to protect our families and communities from the horrors of violence and illegal drugs,” said U.S. Attorney Parsons. “They are heroes walking among us. All of us owe an immense debt of gratitude to these dedicated officers.”
The 2018 honorees and their accomplishments are detailed below.
Medal of Honor
The Medal of Honor is given jointly by the South Dakota Police Chiefs’ and South Dakota Sheriffs’ Associations to law enforcement officers who willingly distinguish themselves through an act of courage, involving a risk of imminent serious injury or death, for the purpose of saving or protecting a human life or while taking an armed and immediately dangerous suspect into custody. Two Medal of Honor Awards were given at this year’s conference:
Trooper Devrin Clark. The first recipient of this year’s Medal of Honor was Trooper Devrin Clark of the South Dakota Highway Patrol. On November 26, 2017, Trooper Clark was working along Interstate 229 in Sioux Falls. He observed a Silver Mitsubishi Endeavor that was traveling 81 miles per hour in a 65 mile per hour zone.
Trooper Clark caught up with the vehicle and initiated a traffic stop. The Mitsubishi slowed and began to move to the right side of the roadway. Just as it appeared to be pulling over, the vehicle suddenly accelerated. It drove up on the right shoulder, passing two cars and nearly striking one of them.
Trooper Clark notified dispatch of the pursuit. The driver of the Mitsubishi was traveling more than 100 miles per hour, passing vehicles on the shoulder and sometimes driving on the grass along the side of the road and in the median.
About three minutes into the pursuit, the vehicle lost control near the top of an exit ramp. It struck a sign pole, then hit a concrete bridge barrier on the overpass. The vehicle caught fire almost immediately with the driver trapped inside. Risking his own life, Trooper Clark pulled the young female suspect out of the burning vehicle. She was unable to move due to a severe leg fracture. After pulling her to safety, Trooper Clark went back to check for other occupants. Fortunately, no one else was in the vehicle.
Trooper Clark put his own life in danger to save the life of a fleeing suspect. There is no higher calling for a law enforcement officer than to protect life and limb. The juvenile’s mother thanked Trooper Clark for saving her daughter’s life.
Deputy Micah Hofman. The second recipient of this year’s Medal of Honor was Deputy Sheriff Micah Hofman, Lake County Sheriff’s Office, for the life-saving actions he took in the early morning of May 3, 2017, in rural Lake County.
At approximately 2:00 a.m., Deputy Hofman responded to the scene of an active shooting where a McCook County Deputy had been shot following a vehicle pursuit and was pinned down by gunfire. The deputy had received a gunshot wound to his left arm.
Deputy Hofman drove his patrol vehicle directly into the active gunfire, picked up the injured deputy who was seeking cover behind his patrol vehicle, and evacuated him to safety. Deputy Hofman then drove the deputy to the Madison Hospital. The suspect was later taken into custody after a several-hour standoff in a field.
Deputy Hofman risked his own life driving into an active gun fight with a heavily-armed suspect. Had he not taken this action, the injured deputy might well have been killed.
Officer of the Year Award
The Officer of the Year Award is given jointly by the South Dakota Police Chiefs’ and South Dakota Sheriffs’ Associations for exceptional achievement in any police endeavor, including extraordinary valor, crime prevention, investigative work, community policing, traffic safety, drug control and prevention, juvenile programs and training programs.
The recipient of this year’s Officer of the Year Award was Detective Joe Leveque, Sturgis Police Department, for his efforts on behalf of children in the Sturgis community. In 2017, Detective Leveque was asked to help find a way financially to keep the local youth boxing club’s doors from closing. Eager to help, Detective Leveque sought out a national program called Police Athletic League (PAL). He started the program in Sturgis, the first and only such program in the state. His goal was to help build up the boxing program, as well as give the Police Department a way to positively interact with local youth in hopes of deterring juvenile crime. He has been successful in securing local and national grants and donations to purchase everything the boxing club needs to function. He is also working to develop several other youth programs in the community.
Chief John Wainman Sr. Service Award
The Chief John Wainman Sr. Service Award is given for contributions by a member of the South Dakota Police Chiefs’ Association who exceeds the high standard and contributions normally made by members. This year’s award was presented to Lieutenant Todd Brandt, Yankton Police Department.
On Tuesday, June 13, 2017, Lieutenant Brandt was advised that Lyle Jeffs, a fugitive on the FBI’s Most Wanted List, was reported to be in the Yankton area. According to reports, Jeffs had entered a local pawn shop and attempted to pawn some items. The following day, Lieutenant Brandt noticed the license plates identified in the report on a parked pick-up truck belonging to Jeffs. He called for back-up, but by then Jeffs was already exiting the outdoor bathroom at the local marina. Not wanting Jeffs to elude capture, Lieutenant Brandt put out a “Help an Officer” call, then exited his personal vehicle and apprehended the suspect on his own. Multiple units arrived at the scene and safely took Jeffs into custody without incident.
Citizen’s Award of Merit
The Citizen’s Award of Merit is given jointly by the South Dakota Police Chiefs’ and South Dakota Sheriffs’ Associations. The award is presented to a citizen, company or group who performed an exceptional act or demonstrated a continued pattern of actions that furthered the missions and goals of the SDPCA and SDSA, or who have made a significant contribution to the law enforcement profession in the State of South Dakota.
The recipient of this year’s Citizen’s Award of Merit was Chris Schafer, Hamlin County Director of Equalization. On August 17, 2017, Schafer and a colleague were traveling home to Castlewood and came upon an accident. A semi-truck pulling double trailers had hit a train and was on fire. Schafer immediately jumped out to help. The driver was pinned inside the cab. Two train engineers were trying to put the fire out, to no avail. Schafer realized they would not be able to get the fire out, so he worked to open the door and get the driver out of the semi-truck. Schafer was able to pull the driver out just seconds before it was engulfed in flames. The 16-year old driver had multiple injuries, but Schafer’s quick thinking and experience saved the young man’s life.
On behalf of us all, the U.S. Attorney’s Office congratulates and thanks these South Dakota law enforcement officers and citizens for their bravery and dedication, and commends the South Dakota Police Chiefs’ Association and Sheriffs’ Association for honoring these heroes.
U.S. Attorney Attends Crow Creek Sioux Tribe InaugurationRead the Press Release
Stephan, SD – On May 1, 2018, United States Attorney Ron Parsons was a guest at the Crow Creek Sioux Tribe Inauguration for the Tribe’s newly elected Chairman, Lester Thompson, Jr., and Tribal Council.
The ceremony, held at the Crow Creek Tribal School, began with a processional honor song and presentation of the Color Guard by the Hunkpati Oyate Veterans. Chairman Thompson and Council Members Roland Hawk Sr., Evan Hawk, Kyle Kirkie, Barry Thompson, Carla Pickner and Fabian Howe Sr. took the oath of office administered by Crow Creek Tribal Judge Matthew Olson.
Also in attendance at the ceremony were Boyd Gorneau, Chairman of the Lower Brule Sioux Tribe, Robert Flying Hawk, Chairman of the Yankton Sioux Tribe, Steve Emery, South Dakota Secretary of Tribal Relations, and Tim Maher, Supervisory Assistant U.S. Attorney for the Pierre office.
Chairman Thompson and the members of the Tribal Council were elected on April 19, 2018, to serve two-year terms.
U.S. Attorney Announces the Indictment of Eight Individuals on Federal Firearms Charges, Including Two Illegal AliensRead the Press Release
Jackson, TN – On April 16, 2018, a federal grand jury indicted eight individuals for federal firearms violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today. As charged in the indictments, eight of the defendants are prohibited by federal firearms laws from possessing firearms. In two of the cases, the grand jury charged the defendants as aliens illegally possessing firearms.
Several defendants charged in this series of indictments are alleged to be convicted felons. Under federal law, it is illegal for an individual convicted of a felony to possess a firearm. This is a violation of Title 18, United States Code (USC), § 922(g)(1). A violation of this section is punishable by a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years. The penalty for a violation of § 922(g)(1) is enhanced when a defendant has a prior criminal record that includes three convictions for a violent felony or serious drug offenses. Under this enhanced sentencing provision, the defendant is subject to a mandatory minimumstatutory sentence of at least 15 years imprisonment, with a maximum sentence of life imprisonment.
U.S. Attorney D. Michael Dunavant said: "Violent crime reduction is the top priority of this office and the Department of Justice. Many violent crimes are committed by prohibited persons with firearms, including convicted felons, persons with a history of domestic violence, illegal aliens, and persons possessing firearms in furtherance of crimes of violence and drug trafficking. This office will aggressively prosecute and seek mandatory federal sentencing guidelines to target and remove from our communities armed career criminals and career drug offenders who illegally possess firearms across West Tennessee. We are Fed Up. Gun Crime is Max Time."
Federal firearms laws also prohibit an individual convicted of a misdemeanor crime of domestic violence from possessing a firearm. This is a violation of Title 18, USC, § 922(g)(9). An individual convicted of violating this section is subject to a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years.
It is also against federal law to possess or use and carry a firearm during or in relation to a crime of violence or a drug trafficking crime. This is a violation of Title 18, USC, § 924(c). A violation of this section is punishable by a mandatory minimum sentence of at least five years imprisonment to a maximum of life imprisonment.
Rodrigo Ayala-Garcia, 33, of Mexico, was charged with illegally possessing a firearm, having previously been deported as an illegal alien in violation of Title 8, USC, § 1326(a) and (b). Assistant U.S. Attorney Jim Powell is prosecuting this case.
Oliver Mendosa-Rodriguez, 38, of Jackson, was charged with illegally possessing a firearm, a felony, having previously been deported as an illegal alien in violation of Title 18, USC § 1326(a) and (b). Assistant U.S. Attorney James Powell is prosecuting this case.
Alfred Gene Scott, 48, of Jackson, was charged with possessing a .38 caliber revolver firearm which had been transported in interstate commerce after being convicted of a felony, in violation of Title 18, USC, §§ 922(g) and 924(a)(e). Assistant U.S. Attorney James Powell is prosecuting this case.
Justin Rashad Forrest, 34, of Jackson, was charged with possessing a Smith and Wesson .38 caliber revolver and a Sig Sauer .40 caliber pistol, after previously being convicted of a felony in violation of Title 18, USC, §§ 922 and 924(a)(e). Assistant U.S. Attorney James Powell is prosecuting this case.
Christopher Kennon, 37, of Lexington, was charged with possessing a Lorcin Engineering Company .380 caliber pistol in furtherance of drug trafficking crime, in violation of Title 18, USC, § 922(g)(1), and possession of methamphetamine with intent to distribute after being convicted of a felony, in violation of Title 18, USC, § 841(a)(1). The United States also seeks criminal forfeiture of any proceeds related to the crime. Assistant U.S. Attorney Taylor Eskridge is prosecuting this case.
Keaston Tipton, 27, of Dyersburg, was charged with possessing a firearm transported in interstate commerce after being a convicted of a felony, in violation of Title 18, USC, § 922 (g)(1). The United States also seeks criminal forfeiture of any proceeds related to the crime. Assistant U.S. Attorney Taylor Eskridge is prosecuting this case.
Antron Tyus, 28, of Humboldt, was charged with possessing a Ruger Mini 14 caliber .233 pistol in interstate commerce after being a convicted felon, in violation of Title 18, USC, §§ 922(g)(1) and 924(a)(3). The United States also seeks criminal forfeiture of any proceeds related to the crime. Assistant U.S. Attorney Matt Wilson is prosecuting this case.
The last indictment was sealed. The defendant was charged with being a convicted felon possessing a firearm with intent to distribute heroin. The United States also seeks criminal forfeiture of any proceeds related to the crime.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Joplin Men Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Two Joplin, Mo., men have been indicted by a federal grand jury, in separate and unrelated cases, for receiving and distributing child pornography.
Both investigations originated with a series of CyberTips from the National Center for Missing and Exploited Children related to hundreds of images of child pornography uploaded to Google accounts in February 2018.
USA v. Snavely
Wyatt Max Snavely, 20, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, May 1, 2018. The indictment replaces a criminal complaint that was filed against Snavely on April 3, 2018.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers received three CyberTips from the National Center for Missing and Exploited Children related to hundreds of images of child pornography uploaded to Snavely’s Google account in February 2018.
Officers executed a search warrant at Snavely’s residence on March 29, 2018, and seized four cell phones, a laptop computer, and various digital media storage devices. During a forensic preview of one of Snavely’s SD cards that was seized from his bedroom, the affidavit says, investigators identified more than 1,000 images of child pornography.
USA v. Daggett
Jack D. Daggett, 29, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, May 1, 2018. The indictment replaces a criminal complaint that was filed against Daggett on April 3, 2018.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers received six CyberTips from the National Center for Missing and Exploited Children related to hundreds of images of child pornography uploaded to Daggett’s Google account on Feb. 17, 2018.
Officers executed a search warrant at Daggett’s residence on March 29, 2018, and seized a tablet computer and a desktop computer. During a forensic preview of the tablet, the affidavit says, investigators identified numerous files containing child pornography.
The charge contained in each of these indictments is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. They were investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."