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12 June 2018
Former Treasurer for City of Zeigler, IL sentenced to Four Years in Prison for Embezzlement and FraudRead the Press Release
On the morning of June 12, 2018, at the United States District Court in Benton, Illinois, Ryan A. Thorpe, 44, the former Treasurer for the City of Zeigler, was sentenced to four years in federal prison for his conviction for wire fraud and embezzlement from a local government, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. The charges against Thorpe relate to events that occurred while Thorpe worked as the Treasurer for the City of Zeigler in Franklin County, Illinois.
When he pled guilty on March 1, 2018, Thorpe admitted that that from March 4, 2013, through August 3, 2017, he embezzled $321,399.22 by writing checks payable to himself and drawn on the City of Zeigler’s general account. Thorpe also admitted that he concealed his thefts from the City of Zeigler by altering the copies of the checks that were sent to the city each month by the city’s bank. Thorpe accomplished this by "whiting out" his name in the payee section of those checks, writing in the names of vendors and suppliers that the city did business with, photocopying the altered checks, placing the photocopies in the bank records kept by the city, and then shredding the copies of the checks with the "white out." Thorpe also acknowledged that he further concealed his thefts by submitting false monthly Treasurer’s Reports to the Zeigler City Council.
In announcing the four year prison sentence this morning, United States District Judge Staci M. Yandle said she found it troubling that Thorpe began embezzling from the City of Zeigler only a few months after becoming the Treasurer. Judge Yandle also noted the devastating impact Thorpe’s embezzlements have had on the City of Zeigler and its residents, telling Thorpe: "The seriousness of your crime cannot be overstated." Noting that Thorpe used funds stolen from the city to purchase several expensive items for himself and his family members, Judge Yandle determined that Thorpe’s crimes were motivated by "absolute and unadulterated greed." She further observed that public corruption of the sort committed by Thorpe destroys public confidence in Government and the democratic process.
"We feel that the sentence imposed by the court today appropriately addresses the seriousness of Thorpe’s criminal conduct," commented U.S. Attorney Boyce. "Officials who steal from the citizens they are elected and appointed to represent commit a gross abuse of public trust. It’s our hope that lengthy prison sentences like the one imposed today will serve to deter other public officials from defrauding their constituents."
As part of the sentence, the court ordered Thorpe to pay full restitution of $321,399.22 to the City of Zeigler and its insurance carrier. In accordance with the terms of his plea agreement, Thorpe also turned over to the City of Zeigler numerous items that he purchased with the embezzled funds. Those items include: a side-by-side Utility Task Vehicle; two motorcycles; a utility trailer; a lady’s diamond ring; numerous firearms; a gun safe; and a four-propeller drone. The total value of this property is estimated at $35,872.74. Thorpe was given a credit toward restitution paid in this amount.
Thorpe also agreed to forfeit a significant number of assets to the United States, including a second side-by-side Utility Task Vehicle; a portable building; a lot and trailer located across the street from Thorpe’s house in Zeigler; five additional vacant lots located in Zeigler; two IRAs valued at a total of approximately $9,000; and a camper. After these properties are forfeited and sold, the U.S. Attorney’s Office will request that the funds from these sales be released and applied to the restitution amount that Thorpe owes to the City of Zeigler.
The investigation was conducted by agents from the Springfield Division, Marion, Illinois Resident Agency, of the Federal Bureau of Investigation ("FBI"). The Franklin County Sheriff’s Department assisted in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former President of Hartford Nonprofit Arrested for Stealing from HUD ProgramsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN F. HARVIN, 53, of New Haven, was arrested today on a criminal complaint charging him with wire fraud and theft from programs receiving federal funds.
After his arrest, HARVIN appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $50,000 bond.
According to the complaint, the Housing Opportunities for Persons with AIDS (“HOPWA”) Program is a federal program dedicated to the housing needs of people living with HIV/AIDS. Under the HOPWA Program, the U.S. Department of Housing and Urban Development (“HUD”) makes grants to local communities, states and nonprofit organizations for projects that benefit low-income persons living with HIV/AIDS and their families. HUD is also responsible for administering the Section 8 housing program, which provides federally subsidized housing to low income tenants.
As alleged in the complaint, HARVIN is a reverend and, from approximately August 2015 to September 2016, he served as President of Zezzo House, a non-profit organization in Hartford that provides housing for individuals and families with health challenges, including HIV/AIDS. HUD provides HOPWA funds to the City of Hartford, which in turn provides the HOPWA funds to organizations in the Hartford area, including Zezzo House. Zezzo House also receives Section 8 funding.
The complaint alleges that, from approximately January 2016 to September 2016, HARVIN diverted thousands of dollars in federal funds to his personal use. During this time, Zezzo House received $70,722 in HOPWA funds, some of which HARVIN withdrew in cash for himself or spent on personal expenditures. HARVIN also diverted funds from rent checks from Section 8 tenants to his personal use.
The charge of wire fraud carries a maximum term of imprisonment of 20 years, and the charge of theft from programs receiving federal funds carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and 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 U.S Department of Housing and Urban Development, Office of Inspector General, and the Hartford Police Department. This case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Former Federal Agent Charged with Lying in Connection with Immigration Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Meghan Heesch (619) 546-9442 and Andrew Young (619) 546-7981
NEWS RELEASE SUMMARY – June 12, 2018
SAN DIEGO – Johnny Martin, a former supervisor in the Department of Homeland Security, was arraigned in federal court today on an indictment charging him with lying to the Federal Bureau of Investigation about his improper transmission of sensitive law enforcement information. The charges against Martin stem from an investigation into a massive immigration fraud scheme involving over 150 victims and millions of dollars in losses.
According to the indictment, FBI agents approached Martin in June 2017 and asked about his dealings with an individual who had shared information with Martin and from 2010 to 2012. In fact, Martin was well acquainted with this individual. While still employed by Homeland Security Investigations (HSI) in 2015 and 2016, Martin had improperly searched a confidential law enforcement database on more than a dozen occasions for names provided by this individual. Martin then created new documents containing the confidential information, and used his personal email account to send the documents he created to the individual.
During the June 2017 interview, agents showed Martin an example of the sensitive information that he had personally extracted from a confidential law enforcement database, and had emailed directly to the individual. This document contained the personally identifiable information, immigration history, and criminal history of someone whom the individual had victimized in his immigration fraud scheme, and agents were attempting to determine how the individual had obtained this document. According to the indictment, Martin falsely claimed to agents that he had no idea how the document had been transmitted to the individual, and falsely denied sending the document or any other law enforcement sensitive information to the individual.
Martin’s case is related to a separate immigration fraud case pending against Hardev Panesar, Rafael Hastie, and Gurdev Singh (Case No. 17CR1371-GPC). According to the indictment in that case, Panesar and Hastie posed as Department of Homeland Security agents and defrauded their victims by claiming that they could obtain immigration status and stop deportation proceedings in exchange for exorbitant fees. According to statements and filings made in court in that case, Panesar and Hastie were able to convince victims they were bona fide federal agents by, in part, presenting them with confidential information obtained from law enforcement databases.
Martin, who is no longer employed by HSI, was released on bond and is scheduled to appear before U.S. District Judge Gonzalo P. Curiel on July 27, 2018.
DEFENDANT Case Number: 18CR2835-GPC
Johnny MARTIN Age: 59 Chula Vista, California
SUMMARY OF CHARGE
Count 1: 18 U.S.C. § 1001, Making a False Statement to a Federal Agent
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation
Customs and Border Protection - Office of Field Operations
Customs and Border Protection - Office of Professional Responsibility
*The charges and allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Chemours Employee Pleads Guilty to Theft of Trade Secrets Conspiracy in Bid to Lure Chinese Investors into Sodium Cyanide MarketRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced today that Jerry Jindong Xu, a citizen of Canada, pled guilty on June 8 to one count of conspiracy to steal trade secrets before the Honorable Leonard P. Stark of the U.S. District Court of Delaware.
According to court documents, the conspiracy involved the theft of trade secrets related to sodium cyanide, a chemical most often used to mine gold, silver, and other precious metals. The Chemours Company (Chemours) is the world’s largest producer of sodium cyanide. Chemours, formed in July of 2015 after the DuPont Corporation separated its performance chemicals business, is based in Wilmington and performs the research and development for sodium cyanide products at its nearby Experimental Station.
From 2011 to June 2016, the defendant was employed in Chemours’ Ontario, Canada office, where he marketed various sodium cyanide-based products developed in the United States to the Canadian mining market. The defendant previously worked for seven years in China for the DuPont Corporation, where he cultivated extensive ties to the Chinese cyanide and mining industry. The defendant was arrested in New York in August 2017 and arraigned in Wilmington on September 28, 2017. At the time of his arrest, the Royal Canadian Mounted Police executed a search warrant on behalf of the United States pursuant to our government’s Mutual Legal Assistance Treaty with Canada.
The defendant admitted that during his final year of employment with Chemours, he systematically acquired – through surreptitious action, false statements to colleagues, and sometimes through his legitimate employment duties – dozens of confidential files, many of which included trade secret information about Chemours’ sodium cyanide business. During this same time, the defendant secretly established a side company, called Xtrachemical, whose purpose was to solicit Chinese-based investors to build a sodium cyanide plant in Canada – in direct competition with Chemours.
To accomplish this illicit goal, the defendant (1) misled his colleagues and fabricated assignments in order to accumulate vast amounts of pricing and other information, including obtaining passwords for spreadsheets; (2) used various personal email accounts to transfer confidential and trade secret information to himself and others; (3) used an encrypted Chinese-based messaging service to communicate with his co-conspirators; (4) asked for and received a tour of Chemours’ primary sodium cyanide manufacturing plant, during which he secretly took pictures of plant system diagrams and sent them to himself; (5) explained to one Chinese investor that he wanted to do this illicit project “for himself and not to slave away at this only to benefit someone else”; (6) accessed Chemours documents during a 2016 trip to China, and asked his co-conspirator how much their plant project would be worth, “Would you say in the millions?”; and (7) received a communication from a Chinese investor who indicated that it is common practice in China to steal the technology from others, design the layout, and get the plan stamped by a design institute.
The defendant is currently being detained until sentencing. The maximum punishment for conspiracy to commit theft of trade secrets, is ten years imprisonment and up to three years of supervised release. No date for the sentencing hearing has been scheduled.
“U.S. companies, like Chemours, invest millions of dollars to develop proprietary products and technologies. The theft of these trade secrets so that investors from other countries, like China, can gain an unfair advantage is unacceptable. We will use every tool at our disposal to identify and prosecute those responsible for these crimes. I want to thank the FBI and the Royal Canadian Mounted Police for their extraordinary work in this investigation,” said U.S. Attorney Weiss.
FBI Special Agent-in-Charge Johnson said, "The theft of trade secrets negatively impacts individual companies and our economy and for this reason, the FBI will continue to aggressively investigate these activities."
The case is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Alexander Mackler. Trial Attorney Alex Kalim, from the Criminal Division’s Office of International Affairs, provided significant support in this matter.
Former Brooklyn Assemblywoman Pleads Guilty to Multiple Fraud Schemes and Witness TamperingRead the Press Release
Earlier today, in federal court in Brooklyn, former New York State Assemblywoman Pamela Harris pleaded guilty to two counts of wire fraud, one count of making false statements to the Federal Emergency Management Administration (FEMA), and one count of witness tampering. The proceeding was held before United States Magistrate Judge Robert M. Levy. Harris was arrested on January 9, 2018 and resigned from her position in the New York State Assembly on April 2, 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
“Elected by the people of her district to serve with honesty and integrity, Pamela Harris defrauded government programs out of tens of thousands of dollars, using the money for her personal benefit,” stated United States Attorney Donoghue. “Harris stole grant money allocated for underprivileged children and young adults and lied to obtain funds set aside for those displaced by Hurricane Sandy, committing these crimes both before and after she was elected to serve in the New York State Assembly. She then compounded her criminal conduct by pressuring witnesses to lie to the FBI. The defendant’s guilty plea today clearly demonstrates that elected officials are not above the law and will be held responsible for their crimes.” U.S. Attorney Donoghue thanked the FBI and DOI for their partnership and work on the case.
“Amid the widespread destruction caused by Hurricane Sandy, former New York State Assemblywoman Pamela Harris sought to devise a destructive scheme of her own,” stated FBI Assistant Director-in-Charge Sweeney. “As FEMA dedicated themselves to aid those affected by the storm, Harris saw this as the perfect opportunity to defraud this agency of tens of thousands of dollars. By defrauding an agency solely dedicated to the assistance of those in need, Harris showed no remorse for the many victims of this storm. Instead, she falsely victimized herself for mere personal gain. In an attempt to obstruct justice, Harris caused greater destruction by coercing individuals to lie to federal agents on her behalf. Despite her unjust acts against the community, Harris’s plea shows that justice will prevail in the end.”
“This former state assemblywoman, now convicted criminal, defrauded city and federal programs out of tens of thousands of dollars, including pocketing funds designated for victims of Hurricane Sandy’s wrath, many of whom were from her district and hit hard during the storm,” stated DOI Commissioner Peters. “She continued her corrupt schemes even as she sat in the state capitol, stealing public funds while she feigned to be in the service of her constituents. Elected officials who deceive the public, break the law and steal taxpayer funds will be brought to justice. DOI thanks the United States Attorney’s Office for the Eastern District of New York and the FBI for their partnership in working together to expose and prosecute these crimes.”
Between 2012 and 2014, Harris defrauded FEMA out of nearly $25,000 by falsely claiming that she had been forced out of her storm-damaged residence and into a temporary residence in Staten Island after Hurricane Sandy. To support her claim for Hurricane Sandy funds, she submitted to FEMA fake lease agreements that she had purportedly entered into with the landlord of the Staten Island residence, as well as bogus rent payment receipts. In reality, Harris continued to live at her Coney Island residence and pocketed the FEMA payments.
Between August 2014 and July 2015, Harris, who was at the time the Executive Director of a not-for-profit organization located in Brooklyn, defrauded the New York City Council of $22,800 in discretionary funding by falsely claiming that the not-for-profit would use the funds to rent a studio space. As part of her scheme, Harris submitted to the New York City Department of Youth and Community Development, the government entity responsible for administering and disbursing the City Council’s discretionary funds, a forged lease agreement. After the not-for-profit received the funding, Harris diverted the funds to her personal checking account and used the money to pay for personal expenses.
The following year, between approximately July 2015 and January 2017, when Harris was a sitting member of the New York State Assembly, she defrauded the NYC Council by claiming that funds for the not-for-profit would be spent on rental space. After the funds were disbursed to the not-for-profit, Harris diverted an additional $22,800 for her personal use.
During her guilty plea, Harris admitted that she pressured witnesses to lie to FBI agents conducting the Grand Jury investigation into her fraudulent schemes.
When sentenced, Harris faces a maximum sentence of 30 years’ imprisonment on the charge relating to making false statements to FEMA and a maximum sentence of 20 years’ imprisonment on each of the wire fraud and witness tampering counts.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Robert Polemeni are in charge of the prosecution.
The Defendant:
PAMELA HARRIS
Age: 57
Brooklyn New YorkE.D.N.Y. Docket No. 18-CR-11 (JBW)
Florida Man Sentenced for ATM Skimmer FraudRead the Press Release
Gulfport, Miss. –Rodrigo D. Ferrareze, age 38, of Delray Beach, Florida, was sentenced today by United States District Judge Sul Ozerden to serve 10 months in federal prison, followed by 3 years of supervised release, and to pay $6,450.00 in restitution to a victim, for fraud in connection with access devices, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Custom Enforcement’s Homeland Security Investigations in New Orleans.
On December 7, 2017, Ferrareze and co-defendants Claudio Fontes Ferreira and Taise Braganca Moscon were stopped in a Lincoln Navigator with Florida tags after being at a Keesler Federal Credit Union Automated Teller Machine ("ATM") on Automall Parkway in D’Iberville, Mississippi. The ATM was found to have a skimmer on it and had been altered with the top flap privacy shield being cut off so a camera placed above could observe the ATM key pad where customers enter their account PIN numbers. A search of the Lincoln Navigator resulted in the finding of access device equipment, to include but not limited to, glue, black electrical and double-sided tape and box cutters, credit cards in alias names, a card with sand paper attached to the card, and other credit cards, gift cards, and a micro SD card.
Ferrareze, Ferreira, and Moscon pled guilty on February 20, 2018. Moscon was sentenced by Judge Ozerden on June 6, 2018, to serve 13 months in federal prison, followed by 3 years of supervised release, and to pay $6,450.00 in restitution to a victim. Ferreira is scheduled to be sentenced on September 7, 2018.
This case was investigated by Homeland Security Investigations and the D’Iberville Police Department. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Fired Menominee Tribal Police Officer Sentenced to 15 years in Prison for Attempted Sexual Exploitation of a Child on Menominee Indian ReservationRead the Press Release
United States Attorney Matthew D. Krueger announced that Basil L. O’Kimosh, Jr. (age: 40) of Keshena man was sentenced on June 11, 2018 to 180 months in prison and 8 years of supervised release after a conviction for Attempted Sexual Exploitation of a Child on the Menominee Indian Reservation. The sentence was the result of a guilty plea in March 2018 before Chief United States District Judge William C. Griesbach.
The investigation revealed that O’Kimosh, who at the time was a patrol officer for the Menominee Tribal Police Department, engaged in sexually explicit chat with a person he believed to be a 15-year old. Unbeknownst to O’Kimosh, he was actually chatting with an undercover detective with the Menominee Tribal Police Department. O’Kimosh requested sexually explicit images from the undercover detective, before sending a sexually explicit image of himself to the detective. O’Kimosh and the detective agreed to meet at a location in Keshena for purposes of engaging in sex acts. Therefore, O’Kimosh was arrested.
In sentencing O’Kimosh, Chief Judge Griesbach noted the serious nature of the offense, which he described as “an attack on someone’s innocence.” The court also noted that the many positives in O’Kimosh’s background actually made the offense worse, stating “there was no reason to engage in this behavior.”
The case was investigated by the Menominee Tribal Police Department, with assistance from the Wisconsin Department of Justice – Division of Criminal Investigation, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Findlay Market Vendor Charged with Food Stamp FraudRead the Press Release
DAYTON – A federal grand jury has charged the owner and manager of Busch’s Country Corner, Inc. with fraud charges related to the Supplemental Nutrition Assistance Program (SNAP) in a 42-count indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the charges.
According to the indictment, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael D. Busch and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.
The indictment alleges the defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. It is alleged that approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent. Busch’s Country Corner operates as a vendor in the downtown Cincinnati Findlay Market complex.
The defendants allegedly used electronic point of sale devices in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.
The indictment includes one count of conspiracy to commit money laundering, one count of conspiracy to commit SNAP fraud, 20 counts of SNAP fraud and 20 counts of wire fraud.
U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, U.S. Secret Service and Ohio Investigative Unit, and Assistant United States Attorney Dwight Keller, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Final gang member sentenced for violent extortion of Gwinnett County business ownersRead the Press Release
ATLANTA – Jong Sung (“John”) Kim has been sentenced to federal prison after being convicted by a jury on two counts of interfering with commerce by extortion. Kim served as a lieutenant for Eugene Chung, the former leader of a gang that specialized in the violent collection of debts from business owners in the Korean community in Gwinnett County. As a result of Kim’s conviction, immigration proceedings will commence against him to determine whether he will be removed from the country. Eugene Chung, Athith (“Andy”) Vorasith, Thomas Jungwon (“Tommy”) Lee, and Ye El (“David”) Choi were previously sentenced for their crimes.
“These gang members were professionals at extortion, maiming, injuring, and threatening to kill anyone who did not bend to their demands,” said U.S. Attorney Byung J. “BJay” Pak. “Legitimate business owners were paralyzed with fear at the thought of this gang visiting them. The community is much safer now that Kim and his fellow gang members are off the street.”
“The Korean community in Gwinnett County is safer now that these gang members are off the streets,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “It would not have been the case had brave community members not been willing to take a stand and work with federal agents and prosecutors in order to put a stop to the violence and terror they had sown in the community.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Members of Kim’s gang conspired with each other and others to extort money and property from legitimate business people, using threats, force, violence, and firearms in furtherance of their criminal enterprise. In about July 2009, Chung and his crew visited the Gah Bin Korean bar and restaurant in Gwinnett County, Georgia, and demanded a monthly share of the restaurant’s profits from the bar’s owner (referred to as “Victim # 1” in the indictments) in exchange for “protection.” Chung promised that, unless Victim #1 made the demanded payments, Chung and his crew would assault Victim #1, harass his customers and employees, and otherwise damage the restaurant. To reinforce their threats, Chung told Victim #1 that his crew routinely carried firearms and terrorized other Korean businesses in the community.
Over the next four months, Chung and his criminal associates strong-armed Victim #1 into making monthly protection payments, ranging from $400 to $800. On December 16, 2009, after Victim #1 missed making a monthly payment, Chung, Vorasith, and Kim showed up at Gah Bin, assaulted Victim #1 in one of the restaurant’s karaoke rooms, and demanded payment. Chung threatened to kill Victim #1 if he did not pay. Chung pulled out a semi-automatic pistol, pointed it at Victim #1, and threatened to pull the trigger. Vorasith punched Victim #1 in the face, breaking his nose and knocking him unconscious.
Shortly after the December 16th assault, the FBI opened an investigation, and Victim #1 resumed making protection payments under FBI surveillance, including two payments that were made to Kim for Chung. These payments were the basis of Kim’s counts of conviction.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging Chung, Vorasith, Kim, Choi, and Lee with extortion, drug trafficking, and firearms offenses. After extensive pretrial litigation, each of the five defendants was convicted and sentenced as follows:
●Jong Sung (“John”) Kim, 53, of Suwanee, Georgia, was sentenced on June 12, 2018, to one year, six months in prison, to be followed by three years of supervised release, and 160 hours of community service. He was convicted by a jury on March 2, 2017, on two counts of interfering with commerce by extortion. Kim was acquitted on two other extortion counts, including a conspiracy count.
●Eugene Thomas Chung, 44, of Duluth, Georgia, was sentenced on May 19, 2017, to 10 years, six months in prison, to be followed by three years of supervised release. Chung was also ordered to pay restitution of $8,500 to Victim # 1. Chung pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion.
●Athith (“Andy”) Vorasith, 37, of Auburn, Georgia, was sentenced on July 11, 2016 to seven years, three months in prison, to be followed by three years of supervised release. Vorasith was also ordered to pay restitution of $8,500 to Victim # 1. He pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion.
●Thomas Jungwon (“Tommy”) Lee, 37, of Duluth, Georgia, was sentenced on May 16, 2017, to one year, 10 months in prison, followed by three years of supervised release. He pleaded guilty on February 16, 2017, via plea agreement, to one count of interfering with commerce by extortion.
●Ye El (“David”) Choi, 34, of Norcross, Georgia, was sentenced on June 16, 2017, to one year, three months in prison, to be followed by three years of supervised release. He pleaded guilty on February 13, 2015, via plea agreement, to one count of conspiracy to interfere with commerce by extortion.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney John S. Ghose, former Assistant U.S. Attorney Ryan Scott Ferber, and former Emory Law School Extern Joshua E. Orlan 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.
Final Defendant Sentenced for Armed Takeover of Malheur National Wildlife RefugeRead the Press Release
PORTLAND, Ore. – Blaine Cooper aka Stanley Blaine Hicks, 38, of Humboldt, Arizona, was sentenced today to time served in prison for his role in the 41-day armed occupation of the Malheur National Wildlife Refuge beginning in January 2016.
Cooper is the eighteenth and final defendant sentenced for crimes associated with the occupation. Eleven defendants pleaded guilty to felony conspiracy to impede officers of the U.S. Four other defendants were convicted of felonies by a federal jury in a trial ending in March 2017. Three additional defendants pleaded guilty to misdemeanor trespassing. Seven defendants, including occupation leaders Ammon and Ryan Bundy, were acquitted of all charges in a trial ending in November 2016.
“I firmly believe that our communities and state are stronger because of our shared experience responding to and litigating the armed occupation of the Malheur National Wildlife Refuge,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I want to sincerely thank the countless federal, state, local, and tribal law enforcement officials that played a role in bringing these eighteen defendants to justice. Our message is clear,” continued Williams, “taking up arms because you don’t like how things are done will never be accepted as a lawful way to protest here in Oregon or elsewhere.”
“The U.S. Constitution granted Americans both rights and responsibilities. With state, local and tribal partners, the FBI responded to this armed takeover by defending the rule of law and protecting the people of Harney County. We stand with Oregonians committed to finding peaceful solutions and will always work to protect our communities from violent conflict,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day, Oregon. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
Summary of sentences imposed:
Dylan Anderson, 37, of Provo, Utah, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Sandra Anderson, 50, of Riggins, Idaho, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Sean Anderson, 50, of Riggins, Idaho, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Jason Blomgren, 44, of North Carolina, was sentenced to two years’ probation and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Brian Cavalier, 47, of Bunkerville, Nevada, was sentenced to time served in prison, two years’ supervised release, and $7,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Blaine Cooper, 38, of Humboldt, Arizona was sentenced to time served in prison and $7,000 restitution after pleading guilty to one count of conspiracy to impede officers of the U.S.
Travis Cox, 23, of Bend, Oregon, was sentenced to two years’ probation and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Duane Ehmer, 47, of Irrigon, Oregon, was sentenced to one year and one day in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of depredation of government property and one count each of misdemeanor trespassing and tampering with vehicles and equipment.
Eric Flores, 24, of Tulalip, Washington, was sentenced to two years’ probation with home detention after pleading guilty to one count of conspiracy to impede officers of the U.S.
Wesley Kjar, 34, of Manti, Utah, was sentenced to 250 hours of community service, two years’ probation, and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Corey Lequieu, 47, of Fallon, Utah, was sentenced to 30 months in prison and three years’ supervised release after pleading guilty to one count of conspiracy to impede officers of the U.S.
Joseph O’Shaughnessy, 46, of Cottonwood, Arizona, was sentenced to time served in prison, two years’ supervised release, and $7,000 restitution after pleading guilty to one count of conspiracy to impede officers of the U.S.
Jason Patrick, 46, of Bonaire, Georgia, was sentenced to 21 months in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of conspiracy to impede officers of the U.S. and one count each of misdemeanor trespassing, tampering with vehicles and equipment, and destruction and removal of property.
Ryan Payne, 34, of Anaconda, Montana, was sentenced to 37 months in prison, three years’ supervised release, and $10,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
John Ritzheimer, 34, of Peoria, Arizona, was sentenced to one year and one day in prison, one year in a residential reentry center, three years’ supervised release, and $10,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Jake Ryan, 29, of Plains, Montana, was sentenced to 12 months in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of depredation of government property and one count each of misdemeanor trespassing and tampering with vehicles and equipment.
Geoffrey Stanek, 28, of Lafayette, Oregon, was sentenced to two years’ probation after pleading guilty to one count of conspiracy to impede officers of the U.S.
Darryl Thorn, 33, of Monument, Oregon, was sentenced to 18 months in prison and $5,000 restitution after being found guilty of one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility and one count each of misdemeanor trespassing, tampering with vehicles and equipment, and destruction and removal of property.
The case was investigated by the FBI and prosecuted by Geoffrey Barrow, Ethan Knight, and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.
Federal Jury Finds Armed Career Criminal Guilty on Firearm ChargeRead the Press Release
Jacksonville, Florida – A federal jury has found Jemone Lawrence Walker (32, Jacksonville) guilty of being a felon in possession of a firearm. He faces a mandatory minimum penalty of 15 years, and up to life, in federal prison. Walker’s sentencing hearing is scheduled for September 20, 2018.
Walker was indicted on March 7, 2018.
According to testimony presented at trial, Walker was found to be in possession of a loaded revolver when the Jacksonville Sheriff’s Office responded to an armed domestic call at a Jacksonville home. As a previously convicted felon, Walker is prohibited from possessing a firearm under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Judge Sentences Philadelphia Heroin Dealer to 8 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, Pa., has been sentenced in federal court in Johnstown to 96 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kareem Jamal Jones, 28, of Philadelphia, Pa.
According to information presented to the court, from Aug. 25, 2016, through Sept. 14, 2016, Jones conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Jones.
Fairfield Man Sentenced to Prison for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Brandon Anderson-Lacy, 30, of Fairfield, was sentenced today by U.S. District Judge John A. Mendez to three years and five months in prison for a tax refund fraud conspiracy, U.S. Attorney McGregor W. Scott announced.
“Today’s sentencing shows the seriousness of identity theft with the filing of false tax returns to the IRS,” said Cindy S. Chen, Acting Special Agent in Charge, IRS Criminal Investigation. “IRS-CI continues to investigate these types of tax crimes and purse the criminals who steal other people’s identity and file false tax returns to enrich themselves and undermine the U.S. tax system. We will continue to work with our law enforcement partners in combating these tax crimes.”
According to court documents, from February 2011 through March 2012, Anderson-Lacy and others participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. The false tax returns included fake Forms W-2 listing false employers, false income amounts, and false federal income tax withholdings, all of which was used to help generate a claimed refund. Many of the tax returns also included false information related to dependents and education expenses that were used to further increase the refunds requested. Anderson-Lacy and his co-conspirators requested that the refunds issue in a variety of ways, including by prepaid debit cards, direct deposit into bank accounts, and by treasury check. More than $319,000 in refunds were claimed in connection with the conspiracy.
This case was the product of an investigation by IRS Criminal Investigation with assistance from the Vacaville Police Department. Assistant U.S. Attorneys Christopher S. Hales and Miriam R. Hinman are prosecuting the case.
FBI Agent Sentenced for Falsifying Information When Applying for a PassportRead the Press Release
FBI Agent Sentenced for Falsifying Information When Applying for a Passport
El PASO, Texas — Rhonda Lynn Chesser Lindstrom, 41, formerly of El Paso, Texas was sentenced Thursday, June 7, 2018, by Senior U.S. District Judge David Briones to four years probation and a $1,000 fine, on each count of the indictment, said terms to run concurrent, and to home confinement for a period of six months, following a four-day trial in March 2018, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Chesser Lindstrom was found guilty on three counts of false statement in application for a passport. In sentencing, the Court found Chesser Lindstrom had willfully obstructed justice.
Because Chesser Lindstrom worked as a Special Agent in the El Paso FBI office, and presented cases to the Western District of Texas U.S. Attorney’s office, the Western District of Texas Assistant U.S. Attorneys were recused, and Northern District of Texas Assistant U.S. Attorney Paulina Jacobo was appointed as a Special Attorney to the Attorney General.
According to evidence presented at trial, on June 10, 2014, Chesser Lindstrom personally appeared at the United States Department of State, El Paso Passport Agency (EPPA), and submitted an Application for a U.S. Passport. As required by the application, Chesser Lindstrom provided as proof of citizenship a State of Louisiana Birth Certificate issued on August 22, 2011. The date of birth on the birth certificate was August 26, 1977. As proof of identity, Chesser Lindstrom provided a State of Maryland Driver’s License with a date of birth of August 26, 1977.
A Passport Specialist conducted a thorough and detailed review of Chesser Lindstrom’s Passport Application, and noticed that the birth certificate appeared to have been altered. Specifically, the birth certificate showed clear signs of handwritten alterations in three places, the birth number, birth date, and the file date. The birth certificate had erasures and numbers rewritten in the three places. Since it was obvious that the birth certificate was altered, the case was referred to the Fraud Prevention Manager (FPM).
On June 12, 2014, the Passport Application was further reviewed by the Fraud Prevention Office to verify all information submitted by Chesser Lindstrom. The results of the review indicated that Lindstrom’s correct date of birth was August 26, 1976; no record was found of a Rhonda Chesser born on August 26, 1977, as indicated on the birth certificate she provided to the EPPA.
The EPPA asked for additional information and Chesser Lindstrom provided additional false documents after enticing her older sister to participate in creating those documents.
The Department of Justice Office of Inspector General investigated the case, assisted by the U.S. Department of State, Diplomatic Security Service, Criminal Fraud Investigations, and the United States Department of State, El Paso Passport Agency Program Fraud Office investigated. Assistant U.S. Attorneys Paulina Jacobo and Chris Wolfe prosecuted.
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El Dorado Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Charles “Marty” Permenter, age 56, of El Dorado, Arkansas was sentenced yesterday to 180 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in February 2016, during an investigation into the methamphetamine distribution in Union County, Arkansas, the FBI and the FBI Task Force identified Permenter as a source of supply of methamphetamine. During the investigation, investigators were able to purchase methamphetamine from Permenter on multiple occasions, utilizing a confidential informant. Additionally, information provided by cooperating sources and independent law enforcement investigation showed that Permenter knowingly conspired with co-conspirators and others to distribute more than 1.5 kilograms of methamphetamine in Union County, Arkansas, and other locations within the Western District of Arkansas.
Permenter was indicted by a federal grand jury in August 2016 and pled guilty in March 2017.
This case was investigated by The FBI and the FBI Task Force. Assistant United States Attorneys Ben Wulff and Graham Jones prosecuted the case for the United States.
Día Mundial De Concienciación Sobre El Abuso A Personas De Edad AvanzadaRead the Press Release
SAN JUAN, PR – Luego del azote de los huracanes Irma y María en Puerto Rico, Fiscalía Federal y el Departamento de Justicia de Puerto Rico, junto con varias agencias federales y estatales y la empresa privada crearon el Elderly Task Force para poder proveer ayuda a la población de edad avanzada en hogares de ancianos. En esos momentos de gran necesidad se les proveyó agua, comida, pañales para adultos, toallas, artículos de higiene personal y de primeros auxilios, bebidas nutritivas, entre otras necesidades a 16,330 personas en 839 hogares. Esta semana se celebra el Día Mundial de Concienciación sobre el Abuso a los Ancianos y volvemos a unirnos para trabajar por esta comunidad.
La Asamblea General de las Naciones Unidas, en su resolución 66/127, designó el 15 de junio como: Día Mundial de Concienciación sobre el Abuso a los Ancianos. Tanto la Fiscalía Federal como el Departamento de Justicia aunamos esfuerzos para hacernos parte la iniciativa del Departamento de Justicia Federal: Justicia para los Ancianos. A esos efectos, tendremos mesas informativas y ofreceremos charlas educativas sobre temas como: explotación financiera, delitos cibernéticos, maltrato institucional, negligencia, entre otros, dirigidos a los adultos mayores, familiares y cuidadores. La actividad se llevará a cabo en Plaza Las Américas el 15 de junio, desde las 9:00am hasta las 2:00pm frente a la tienda Macy’s en el segundo piso.
Le agradecemos a las siguientes agencias federales y estatales que participarán de la actividad: Departamento de Salud Federal-Oficina del Inspector General, Servicio de Inmigración y Control de Aduanas-Oficina de Investigaciones de Seguridad Nacional (ICE-HSI, por sus siglas en inglés), FBI, Oficina del Procurador de Personas de Edad Avanzada, Departamento de Salud, y Empresas Fonalleda.
“Es nuestro deber proteger a esta comunidad,” dijo Rosa Emilia Rodríguez Vélez, Fiscal Federal para el Distrito de Puerto Rico. “Se lo debemos a quienes nos han dado tanto para garantizar su protección y dignidad en esta etapa de sus vidas. La Iniciativa del Departamento de Justicia Federal se ha comprometido a optimizar los esfuerzos estatales y locales para combatir el abuso, el abandono y la explotación financiera de los ancianos, por medio de capacitación, recursos e información”.
“El bienestar de las personas de la tercera edad es una de las prioridades del Gobernador Ricardo Rosselló Nevares y del Departamento de Justicia. La población continúa envejeciendo y, según la Organización de las Naciones Unidas, para el 2050, se espera que 2,000 millones de personas tengan 60 años. Esto es el doble de la cantidad actual. Merecen tener calidad de vida, con un trato sensible y justo. Repudiamos los malos tratos hacia nuestras personas de edad avanzada, y la negligencia hacia ellos, robarles o maltratarlos, tanto física como emocionalmente, son delitos que procesaremos con todo el rigor de la ley”, expresó Vázquez Garced.
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Davenport Man Sentenced to Prison for Conspiracy to Distribute MarijuanaRead the Press Release
DAVENPORT, Iowa - On June 11, 2018, Shawn Michael Manning, age 45, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 63 months in prison for conspiracy to manufacture marijuana announced United States Attorney Marc Krickbaum. Manning was ordered to serve four years of supervised release following his prison sentence and to pay $100 to the Crime Victims’ Fund.
On February 6, 2018, Manning pleaded guilty to the offense and admitted beginning on or about November 1, 2016, and continuing through December 26, 2016, he and other individuals reached an agreement to manufacture marijuana in a warehouse located in the 900 block of South Rolff Street in Davenport. The charge was the result of an investigation which began when Davenport Police received a tip that Manning and others were operating a marijuana grow operation at that warehouse location. On December 29, 2016, law enforcement executed a search warrant and discovered a portion of the warehouse had been walled off. Officers discovered in excess of 500 marijuana plants, marijuana derivative products and materials to assist in the manufacture and packaging for sale of the marijuana.
This matter was investigated by the Davenport Police Department and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Dark Web Vendor Pleads Guilty to Narcotics Trafficking and Money Laundering ChargesRead the Press Release
A French national who was serving at times as an administrator and senior moderator on one of the largest dark web criminal marketplaces pleaded guilty today to conspiracy to possess with the intent to distribute controlled substances and conspiracy to launder money.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Office made the announcement.
Gal Vallerius, aka “Oxymonster,” 36, pleaded guilty before U.S. District Court Judge Robert N. Scola Jr. in the Southern District of Florida. According to the court record, including the agreed upon factual proffer, beginning in or around November 2013 a criminal online marketplace known as Dream Market began operating on the Tor “dark web” network. Dream Market was designed to promote and facilitate the anonymous sale of illegal items. In time, the Dream Market website became one of the largest dark web criminal marketplaces. All of the items and services on Dream Market were offered for sale in exchange for Bitcoin and other peer-to-peer crypto-currencies.
According to the agreed upon factual proffer, Vallerius first participated in the conspiracy by becoming a vendor on Dream Market. As a vendor, he sold Oxycodone and Ritalin under the moniker “Oxymonster.” Shortly thereafter, Dream Market employed the defendant who acted at times as an administrator and senior moderator. In these positions, he played a role supporting the daily illicit transactions between buyers and vendors on Dream Market, such as the trafficking in narcotics, and the laundering of illicit proceeds using virtual currencies, Dream Market’s tumblers and the dark web. Vallerius is scheduled to be sentenced by Judge Scola on Sept. 25 at 8:30 a.m.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on combatting the nation’s illicit drug trafficking threats.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
Mr. Greenberg commended the investigative efforts of the DEA Miami Field Office and Paris Country Office, FBI Miami, IRS Criminal Investigation Miami Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami and Atlanta Field Offices, U.S. Customs and Border Protection’s Field Operations Atlanta, U.S. Postal Inspection Service Miami Field Office, the Department of Justice’s Office of International Affairs, Europol, Special Operations Division (SOD), Finnish National Police, Finnish International Judicial Administration of the Ministry of Justice, Dutch National Police, French Ministry of Justice and the Direction Interregionale de la Police Judiciaire as well as the U.S. Attorney’s Office for the Northern District of Georgia. The case is being prosecuted by Assistant U.S. Attorneys Juan A. Gonzalez and Frank R. Maderal of the Southern District of Florida and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dark Web Vendor Pleads Guilty to Narcotics Trafficking and Money Laundering ChargesRead the Press Release
A French national who was serving at times as an administrator and senior moderator on one of the largest dark web criminal marketplaces pleaded guilty today to conspiracy to possess with the intent to distribute controlled substances and conspiracy to launder money.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Office made the announcement.
Gal Vallerius, aka “Oxymonster,” 36, pleaded guilty before U.S. District Court Judge Robert N. Scola Jr. in the Southern District of Florida. According to the court record, including the agreed upon factual proffer, beginning in or around November 2013 a criminal online marketplace known as Dream Market began operating on the Tor “dark web” network. Dream Market was designed to promote and facilitate the anonymous sale of illegal items. In time, the Dream Market website became one of the largest dark web criminal marketplaces. All of the items and services on Dream Market were offered for sale in exchange for Bitcoin and other peer-to-peer crypto-currencies.
According to the agreed upon factual proffer, Vallerius first participated in the conspiracy by becoming a vendor on Dream Market. As a vendor, he sold Oxycodone and Ritalin under the moniker “Oxymonster.” Shortly thereafter, Dream Market employed the defendant who acted at times as an administrator and senior moderator. In these positions, he played a role supporting the daily illicit transactions between buyers and vendors on Dream Market, such as the trafficking in narcotics, and the laundering of illicit proceeds using virtual currencies, Dream Market’s tumblers and the dark web. Vallerius is scheduled to be sentenced by Judge Scola on Sept. 25 at 8:30 a.m.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on combatting the nation’s illicit drug trafficking threats.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
The investigation was conducted by the DEA Miami Field Office and Paris Country Office, FBI Miami, IRS Criminal Investigation Miami Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami and Atlanta Field Offices, U.S. Customs and Border Protection’s Field Operations Atlanta, U.S. Postal Inspection Service Miami Field Office, the Department of Justice’s Office of International Affairs, Europol, Special Operations Division (SOD), Finnish National Police, Finnish International Judicial Administration of the Ministry of Justice, Dutch National Police, French Ministry of Justice and the Direction Interregionale de la Police Judiciaire as well as the U.S. Attorney’s Office for the Northern District of Georgia. The case is being prosecuted by Assistant U.S. Attorneys Juan A. Gonzalez and Frank R. Maderal of the Southern District of Florida and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Columbus Man Sentenced to Prison for Federal Gun and Drug OffensesRead the Press Release
HUNTINGTON, W.Va. – A Columbus, Ohio man who sold heroin and an illegal firearm in Huntington in 2016 was sentenced yesterday to 64 months in federal prison, announced United States Attorney Mike Stuart. Jamal Marsalas Glass, 20, previously pled guilty to distributing heroin and carrying a firearm during and in relation to a drug trafficking crime in federal court in Huntington. Stuart praised the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“As if being a drug dealer isn’t bad enough,” said United States Attorney Mike Stuart, “Glass was selling heroin and an illegal gun. And he was armed with a firearm while conducting the sales transaction. Getting dangerous guys like Glass off the streets of Huntington is priority number one.”
On August 25, 2016, a confidential informant contacted Glass to purchase heroin. The informant also negotiated the purchase of a firearm from Glass. The informant subsequently met with Glass inside an Apartment at the Marcum Terrace housing projects in Huntington. Inside the apartment, Glass sold the informant approximately 3 grams of heroin. Glass also sold the informant a 9mm pistol which had the serial number obliterated in violation of federal law. Glass further admitted as part of his plea agreement that he possessed a separate .38 caliber revolver when he conduct the transaction.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert. C. Chambers.
This case was being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Colbert Bank Robber SentencedRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on June 12, 2018, Senior United States District Court Judge C. Ashley Royal sentenced Qruintrell Renee Cook, age 29, of North Augusta, South Carolina, to 57 months’ imprisonment for Bank Robbery. She was also ordered to pay $6590 in restitution to the bank. Ms. Cook pled guilty on March 8, 2018.
The evidence supporting the plea showed that on July 18, 2016, an adult female wearing a disguise robbed the First Madison Bank and Trust in Colbert, Georgia. The robber handed a note to a bank teller which threatened that she had a gun and was willing to shoot everyone in the bank unless she was given cash. Although the robber initially got away without being apprehended, she was later identified as Ms. Cook based on fingerprints she left behind at the scene. After her arrest in South Carolina, Ms. Cook confessed to committing the bank robbery.
“Ms. Cook’s illegal actions terrified innocent citizens and put many lives at risk, including her own,” said United States Attorney Peeler. “I applaud the joint local and federal law enforcement investigation that led to her identification, capture, and conviction.”
This case was investigated by the Federal Bureau of Investigation, the Madison County Sheriff’s Office, and the North Augusta Department of Public Safety. Assistant United States Attorney Peter D. Leary 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.
Chicago Man Sentenced to 28 Years in Federal Prison for Producing and Sharing Child PornographyRead the Press Release
CHICAGO — A Chicago man has been sentenced to 28 years in federal prison for producing hundreds of photos and videos of child pornography.
CHRISTOPHER M. HALL, 44, arranged three sexual encounters for two underage girls whom he met through online mobile chat applications. One of the girls was 12 years old when she first encountered Hall online, and he groomed her through sexually explicit communications that included sending her child pornography. Hall directed each girl to write “Owned by CH” on her body, and then photograph it and send the image to Hall.
To set up the sexual encounters, Hall took or used sexually explicit photos of the girls and posted them in sex advertisements on Craigslist. Hall then directed the girls to have sexual intercourse with him and several men who responded to the ads, and took videos and photos of the encounters. Two of the encounters took place in Aurora, while another occurred in Gary, Ind.
Hall pleaded guilty earlier this year to one count of inducement and enticement of a minor for the production of child pornography and one count of knowingly transporting child pornography. U.S. District Judge Thomas M. Durkin on Monday sentenced Hall to 28 years in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The investigation began when one of Hall’s victims went missing from her home in Michigan. Law enforcement identified email communications between the girl and Hall. As part of the investigation, law enforcement searched Hall’s residence and discovered a collection of child pornography that included more than 7,000 images and videos of minors. Authorities were able to identify dozens of the exploited children in the videos and images, some of whom were less than 12 years old at the time the images were created. Nearly 30 of those victims submitted statements to the Court in advance of sentencing, detailing the harm caused by the exploitation of their images by individuals like Hall.
Cedar Rapids Felon Sentenced to More than a Decade in Federal Prison for Possessing a GunRead the Press Release
A convicted felon who possessed a gun and fled from police officers, who eventually used a Taser on him, was sentenced today to more than 11 years in federal prison.
Ivan Clark, age 39, from Cedar Rapids, Iowa, received the prison term after a January 11, 2018, guilty plea to one count of being a felon in possession of a firearm.
Information at sentencing showed that Clark’s wife called the police on October 17, 2017. Police responded to Clark’s home, but Clark had already left the home and was in a car. Clark drove away from the officers, who pursued him in a marked squad car with top lights on. Clark drove at speeds approaching 50 mph in a residential area, before driving back to his home with officers still in pursuit. He then tried to get back into his house, but was not able to. Clark resisted arrest and officers eventually had to use a Taser on him. Clark’s blood alcohol level at the time was .091.
In sentencing Clark, the District Court Judge noted that this was Clark’s third conviction in federal court. He had previously been convicted of drug trafficking crimes in Illinois and Iowa federal courts. The judge also noted Clark’s lengthy history of ignoring the law and assaultive behavior, including domestic assault. The judge found Clark was a danger to the community and at high-risk to commit more crimes in the future.
Clark was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Clark was sentenced to 137 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Clark is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-89.
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California Residents Plead Guilty to Scheme to Illegally Export Components for Production of Night Vision Rifle ScopesRead the Press Release
Naum Morgovsky, 69, and Irina Morgovsky, 66, both of Hillsborough, California, pleaded guilty today for their respective roles in a scheme to export components for the production of night vision and thermal devices in violation of the Arms Export Control Act. Naum Morgovsky also pleaded guilty to laundering the proceeds of from the scheme.
Assistant Attorney General for National Security John C. Demers, Acting U.S. Attorney Alex G. Tse for the Northern District of California and Special Agent in Charge John F. Bennett of the FBI’s San Francisco field office made the announcement. The pleas were accepted by the Honorable Vince Chhabria, U.S. District Judge, during jury selection.
According to their guilty pleas, Naum Morgovsky and Irina Morgovsky admitted that from April 2012 until Aug. 25, 2016, they conspired to export without the necessary license to a company in Moscow, Russia, numerous scope components, including image intensifier tubes and lenses. They further admitted a coconspirator in Russia communicated to them lists of components necessary for the Russian business to manufacture certain night vision devises. The couple used their U.S. business, Hitek International, to purchase these components and misrepresented to the sellers that the products would not be exported. The couple then shipped the products to Russia and other countries in Europe where an associate arranged for them to be hand-carried into Russia. Further, the couple admitted the scope components they exported were on the U.S. Munitions List and that they therefore were not permitted to export the items without a license from the Department of State, Directorate of Defense Trade Controls. The defendants admitted they knew a license was required to export the components and that they did not obtain a license.
In addition to exporting the components, Naum Morgovsky admitted he took steps to conceal his crimes so that the couple could continue to run the illegal export business undetected. Specifically, he admitted he laundered the proceeds of the export crimes and used the name of a deceased person to conceal the fact that he was the source and owner of a U.S.-based account.
On April 27, 2017, a federal grand jury issued a superseding indictment charging the Morgovskys, along with Mark Migdal, 72, of Portola Valley, California, for their respective roles in three related schemes — the illegal export scheme resolved by today’s plea agreements, and two additional bank fraud schemes allegedly involving Naum Morgovsky. With respect to the illegal export scheme, the grand jury charged Naum Morgovesky with conspiracy to violate the Armed Export Control Act, and two counts of money laundering. The grand jury charged Irina Morgovesky with the conspiracy and with misuse of a passport. Pursuant to today’s plea agreements, the couple pleaded guilty all the charges with the exception of the passport charge pending against Irina Morgovesky — that charge will be dismissed.
On Nov. 10, 2017, Judge Chhabria severed the case to allow the illegal export charges to be handled separately from the allegations regarding the bank fraud scheme alleged in the April 27, 2017, indictment. The bank fraud charges are still pending against Naum Morgovesky. According to the indictment, Naum Morgovesky conspired with Migdal to defraud two federally-insured banks, now Bank of America and EverBank, by seeking those banks’ approval for a short sale of two condominiums. The condominiums were in Kihei, Maui, and were in the same building as a condominium that had been owned by Migdal. The indictment alleges Morgovsky and Midgal conspired to convince the banks to allow the properties to be sold in a short sale to an individual who was deceased. A short sale is a sale in which a lender allows a property to be sold at a price that is less than the amount owed on the loan. Morgovsky also is accused of submitting false statements to the banks about Midgal’s employment status and income. The indictment charges Naum Morgovsky and Migdal with conspiracy to commit bank fraud, and two counts of bank fraud, related to the sale of the Hawaii properties.
On July 25, 2017, Migdal pleaded guilty to his part in the conspiracy and to two counts of making false statements on loan and credit applications. On April 24, 2018, Judge Chhabria sentenced Migdal to 18 months in prison and ordered him to pay a $1,000,000 fine, to pay $460.215 in restitution, and to serve 3 years of supervised release.
In sum, the charges and maximum statutory sentences against Naum Morgovsky are as follows:
Count
Charge
Statue
Status
Maximum Sentence
One
Conspiracy to Commit Bank Fraud
18 U.S.C. § 1349
Pending
30 years; $1,000,000 fine
Two
Bank Fraud
18 U.S.C. § 1344
Pending
30 years; $1,000,000 fine
Three
Bank Fraud
18 U.S.C. § 1344
Pending
30 years; $1,000,000 fine
Four
Aggravated Identity Theft
18 U.S.C. § 1028A
Pending
2 years consecutive to any other sentence; $250,000 fine
Nine
Armed Export Control Act Conspiracy
22 U.S.C. § 2778
Pleaded Guilty
20 years; $1,000,000 fine
Ten
Money Laundering
18 U.S.C. § 1956(a)(1)(B)(i)
Pleaded Guilty
20 years; $500,000 fine or twice the value of funds involved
Eleven
International Money Laundering
18 U.S.C. § 1956(a)(2)(A)
Pleaded Guilty
20 years; $500,000 fine or twice the value of funds involved
The charges against Irina Morgovsky are as follows:
Count
Charge
Statue
Status
Maximum Sentence
Nine
Armed Export Control Act Conspiracy
22 U.S.C. § 2778
Pleaded Guilty
20 years; $1,000,000 fine
The maximum statutory sentences are prescribed by Congress and provided here for informational purposes; the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A sentencing hearing for today’s guilty pleas is scheduled for Sept. 18. No date has been scheduled yet to resolve the remaining charges against Naum Morgovsky.
The prosecution is the result of an investigation by the counterintelligence squad of the FBI, with assistance from IRS-Criminal Investigation and the Department of Commerce, Bureau of Industry and Security.
The case is being prosecuted by Assistant U.S. Attorneys Colin Sampson and Erin Cornell of the Northern District of California, and Trial Attorney Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.
California Resident Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Michael Gutierrez, 34, of Pomona, California, pleaded guilty to five counts of producing child pornography.
According to court documents and statements made in court, Gutierrez contacted minor females in New Hampshire through social media and initiated conversations with them through social media platforms. Gutierrez represented himself to be a 14-year-old female and used the usernames of “Chloe_is_Awesum,” “spamaccount.c” and “Doogteg.” Gutierrez persuaded the minor females to send him sexually explicit images. Gutierrez then demanded additional sexually explicit images from the minor females and threatened to distribute the images already provided if the minor females did not comply. Gutierrez collected the images in 2015 and 2016. In late 2016, a mother to one of the victims discovered the demands made by Gutierrez and reported them to the Federal Bureau of Investigation. The FBI’s investigation led to the identification of Gutierrez.
A sentencing hearing is scheduled for September 25, 2018.
“Protecting our children from exploitation is a vitally important priority for this office and essential to the well-being of our entire community,” said U.S. Attorney Murray. “This case shows how predators can use the anonymity of the internet to manipulate young victims. We will continue to work closely with our law enforcement partners to identify and prosecute those who engage in such disturbing conduct.”
“Gutierrez’s offenses are heinous and the impact on his victims is immeasurable. He not only abused and exploited vulnerable children, he re-victimized them over and over again because the horrific images stay in circulation forever,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI will continue to do everything in its power to stop children from being exploited and bring to justice those responsible. This case is a great example of the work that can be done when state and federal law enforcement officers collaborate across state lines.”
“This case was a great example of what strong coordination among federal, state, and local law enforcement and prosecutors can achieve in protecting our communities from predators who engage in child pornography,” said Peter C. Fitzhugh. Special Agent–In -Charge, Homeland Security Investigations (HSI), Boston. “HSI is committed to continuing our fight against these type of predators.”
The FBI the Los Angeles County Sheriff’s Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the Goffstown Police Department, the Milford Police Department, the New Boston Police Department, the Mont Vernon Police Department, and the Manchester Police Department all participated in the investigation of this case. Staff from the Hillsborough County Child Advocacy Center also assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon are prosecuting the case.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Buffalo Man Pleads Guilty for His Role in Cocaine ConspiracyRead 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 Corey Bradberry, Jr., 35, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between May 2016 and June 2017, the defendant conspired with others to operate a wide-scale cocaine distribution network in Niagara Falls and Lockport.
Bradberry regularly purchased drugs from co-defendant Ramone Westbrook for the purpose of resale, typically obtaining approximately an ounce of cocaine per week from Westbrook with the intention of distributing it to numerous other individuals. Between April 20, 2017, and May 17, 2017, the defendant and Westbrook communicated by telephone at least 235 times, during which they discussed cocaine trafficking and arranged cocaine transactions. During one call, Bradberry told Westbrook to hurry up because he had five people waiting.
On May 17, 2017, the defendant sold cocaine to an individual working with the Drug Enforcement Administration. On May 24, 2017, law enforcement officers executed a New York State search warrant at Bradberry’s residence on Niagara Street in Niagara Falls, NY, and seized cocaine, a digital scale with white residue, and $250.00 in cash.
Co-defendants Ramone Westbrook Rico Freeman, and Darius Dix were all previously convicted.
The plea is 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 Superintendent Bryan DalPorto; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.Sentencing is scheduled for September 21, 2018, at 10:00 a.m. before Judge Vilardo.
Bronx Resident Sentenced to 4 Years in Federal Prison for Supplying Heroin to New Haven Drug RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that PABLO JOSE CRUZ, 46, a citizen of the Dominican Republic last residing in the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by five years of supervised release, for supplying heroin to a New Haven drug trafficking ring.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido and Antonio Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers purchased bulk quantities of heroin from CRUZ and other New York suppliers and sold the heroin through a network of redistributors in New Haven and elsewhere. CRUZ regularly traveled from New York to Connecticut to deliver up to a kilogram of heroin at a time to the Gonzalez organization.
The investigation resulted in federal charges against 24 individuals.
CRUZ was arrested on March 15, 2017. On that date, a search of a vehicle that CRUZ traveled in to drive to a stash house used by Bienvenido Gonzalez led to the seizure of a kilogram of heroin. A search of the stash house resulted in the seizure of another 400 grams of heroin and $10,000 in cash.
CRUZ has been detained since his arrest. On January 23, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
CRUZ, a lawful permanent resident of the U.S., faces immigration proceedings when he completes his prison term.
Bienvenido Gonzalez and Antonio Gonzalez pleaded guilty to related charges. On March 28, Bienvenido Gonzalez was sentenced to 144 months of imprisonment. Antonio Gonzalez awaits sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Branchland Man Pleads Guilty to Multiple Firearms Thefts from Gun DealerRead the Press Release
HUNTINGTON, W.Va. – A Branchland man who broke in a local pawn shop and stole firearms on three separate occasions pled guilty yesterday in federal court in Huntington to multiple firearms charges, announced United States Attorney Mike Stuart. Robert Lee Reid, 23, entered guilty pleas to three counts of theft of firearms from a federally licensed firearms dealer and an additional count of possession of stolen firearms. Stuart commended the investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF) with assistance from the West Hamlin Police Department.
“Reid is a brazen criminal,” said United States Attorney Mike Stuart. “He stole a total of 180 guns from the same store on three separate occasions. He, in turn, sold the majority of the stolen guns to individuals in Huntington before being caught by law enforcement. Reid should pay a heavy price. Those guns could end up killing innocent people or law enforcement officers. It’s a terrible, terrible crime.”
On three separate occasions, Reid broke into Sportsmen’s Gun and Pawn located at 6440 US Route 60 in Barboursville to steal firearms. On May 15, 2017, Reid and another individual stole a total of 164 firearms from Sportsmen’s. The firearms were subsequently sold by Reid and another individual in Huntington. On September 29, 2017, Reid stole an additional 6 firearms from Sportsmen’s which he sold in the Guyandotte neighborhood of Huntington. Finally, on December 7, 2017, Reid and another individual stole a total of 10 firearms from Sportsmen’s. Reid and the other individual were subsequently picked up in a vehicle and the vehicle was stopped in West Hamlin by a West Hamlin Police Officer. During the traffic stop, the officer located the stolen firearms in the rear of the vehicle where Reid and the other individual were seated.
Reid faces up to 10 years in federal prison for each conviction when he is sentenced on September 10, 2018.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. United States District Judge Robert C. Chambers presided over today’s hearing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Baytown Man Guilty of Trafficking Drugs through the Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A 42-year-old Baytown man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jose Quiroga pleaded guilty to conspiracy to possess with intent to distribute cocaine and conspiracy to money launder today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, Quiroga served as a narcotics and bulk currency courier for a drug trafficking organization led by Eugenio Cerda. This organization was responsible for trafficking cocaine and fentanyl from the Houston area to Beaumont and further east into Louisiana and Mississippi. On June 17, 2017, Quiroga was stopped by law enforcement officers in Beaumont driving a truck registered to Cerda. Agents discovered $51,040 cash, which was the proceeds of a two-kilogram cocaine delivery, concealed in a hidden compartment of the truck’s tailgate. Further investigation revealed Quiroga distributed approximately nine kilograms of cocaine for Cerda. Quiroga was indicted by a federal grand jury on Jan. 10, 2018.
Under federal statutes, Quiroga faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
Bay Area Residents Plead Guilty to Scheme to Illegally Export Components for Production of Night Vision Rifle ScopesRead the Press Release
SAN FRANCISCO – Naum Morgovsky and Irina Morgovsky pleaded guilty today for their respective roles in a scheme to export components for the production of night vision and thermal devices in violation of the Arms Export Control Act, announced Acting United States Attorney Alex G. Tse, Assistant Attorney General for National Security John C. Demers, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Naum Morgovsky also pleaded guilty to laundering the proceeds of from the scheme. The pleas were accepted by the Honorable Vince Chhabria, U.S. District Judge.
According to their guilty pleas, Naum Morgovsky, 69, and Irina Morgovsky, 66, both residing in Hillsborough, Calif., admitted that from April 2012 until August 25, 2016, they conspired to export without the necessary license to a company in Moscow, Russia, numerous scope components, including image intensifier tubes and lenses. They further admitted a coconspirator in Russia communicated to them lists of components necessary for the Russian business to manufacture certain night vision devises. The defendants used their U.S. business, Hitek International, to purchase these components and misrepresented to the sellers that the products would not be exported. The defendants then shipped the products to Russia and other countries in Europe where an associate arranged for them to be hand-carried into Russia. Further, the defendants admitted the scope components they exported were on the United States Munitions List and that they therefore were not permitted to export the items without a license from the Department of State, Directorate of Defense Trade Controls. The defendants admitted they knew a license was required to export the components and that they did not obtain a license.
“Protecting sensitive technology from unlawful export is crucial to our national security, especially when that technology has military uses,” said Acting U.S. Attorney Tse. “This prosecution and today’s guilty pleas demonstrate the Department of Justice’s continuing commitment to using all available tools, including criminal charges, to safeguard national security.”
In addition to exporting the components, Naum Morgovsky admitted he took steps to conceal his crimes so that the couple could continue to run the illegal export business undetected. Specifically, he admitted he laundered the proceeds of the export crimes and used the name of a deceased person to conceal the fact that he was the source and owner of an US-based account.
On April 27, 2017, a federal grand jury issued a superseding indictment charging the Morgovskys, along with Mark Migdal, 72, of Portola Valley, Calif., for their respective roles in three related schemes—the illegal export scheme resolved by today’s plea agreements, and two additional bank fraud schemes allegedly involving Naum Morgovsky. The charges related to the alleged bank fraud scheme remain pending against Naum Morgovesky. The defendant is presumed innocent until proven guilty beyond reasonable doubt with regard to those charges.
With respect to the illegal export scheme, the grand jury charged Naum Morgovesky with conspiracy to violate the Armed Export Control Act, in violation of 22 U.S.C. § 2778, and two counts of money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(B)(i) and (a)(2)(A). The grand jury charged Irina Morgovesky with the § 2778 conspiracy and with misuse of a passport, in violation of 18 U.S.C. § 1544. Today the defendants pleaded guilty to all the charges with the exception of the passport charge pending against Irina Morgovesky—that charge will be dismissed at the time of sentencing if she complies with the terms of the plea agreement. Bank fraud charges alleged in the indictment against Naum Morgovsky remain pending and will be scheduled for trial.
The defendants face a maximum sentence of 20 years in prison for each of the counts to which they pleaded guilty. The maximum fine for the Armed Export Conspiracy charges is $1,000,000, and the maximum fine for the money laundering charges is $500,000. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Chhabria has scheduled a hearing for sentencing with respect to today’s guilty pleas for September 18, 2018. No date has been scheduled yet to resolve the remaining charges against Naum Morgovsky.
The case is being prosecuted by Assistant United States Attorneys Colin Sampson and Erin Cornell and National Security Division Trial Attorney Jason McCullough. The prosecution is the result of an investigation by the counterintelligence squad of the Federal Bureau of Investigation; Internal Revenue Service, Criminal Investigation; and the Department of Commerce, Bureau of Industry and Security.
Another Physician Pleads Guilty in the Montgomery “Pill Mill” ProsecutionRead the Press Release
Montgomery, Ala. – On Monday, June 11, 2018, a physician, Dr. Willie J. Chester, 65, of Pike Road, Alabama, pleaded guilty in the ongoing “pill mill prosecution” arising out of a now-closed Montgomery medical office, announced United States Attorney Louis V. Franklin, Sr. That medical practice was known as “Family Practice” and was located at 4143 Atlanta Highway in Montgomery.
According to court documents, Dr. Chester pleaded guilty to one count of aiding and abetting the fraudulent acquisition of controlled substances. During the plea hearing, Dr. Chester admitting to writing a prescription for clonazepam (commonly known as the brand name drug, Klonopin) despite knowing that the patient receiving the prescription had no legitimate medical need for the drug.
A date for his sentencing hearing has not yet been set. At sentencing, Dr. Chester will face a maximum sentence of four years in prison, as well as substantial monetary penalties.
Dr. Chester is the ninth defendant to plead guilty in a case arising from the operation of this “pill mill.” In November of last year, the practice’s owner, Dr. Gilberto Sanchez, pleaded guilty to drug distribution, health care fraud, and money laundering charges. Since that time, three other physicians (including Dr. Chester) have pleaded guilty to drug distribution charges; two certified registered nurse practitioners have pleaded guilty to drug distribution charges; and three other employees have pleaded guilty to health care fraud and money laundering offenses.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the Department of Health and Human Services – Office of Inspector General. The Montgomery County, Alabama Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery, Alabama Police Department, the Opelika, Alabama Police Department, and the Alabama Law Enforcement Agency all assisted in the investigation. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
31 Ohio and West Virginia residents are indicted in connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Two grand juries have returned indictments against 31 individuals from Ohio and West Virginia on charges involving methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Twenty-three West Virginia residents were indicted by a federal grand jury sitting in Wheeling on June 5, 2018 on charges involving a multi-state drug distribution operation.
“These indictments demonstrate our continued efforts to aggressively prosecute those who consider West Virginia as a viable market to distribute their poison. We are seeing increased trafficking of methamphetamine, which also brings increased violence. Thanks to our prosecution team, and the incredible efforts of our law enforcement partners, these indictments were returned. The cases are now on the path for a final resolution. Our mission to keep our communities safe remains paramount,” said Powell.
The alleged conspiracy consisted of trafficking crystal methamphetamine, also known as “ice,” heroin, and cocaine brought to West Virginia from Columbus, Ohio, and obtained from as far away as Atlanta, Georgia. Some are facing weapons charges involving a total of eight firearms. Those indicted are:
• Joshua Cathers, age 38, of Sistersville, West Virginia
• Michael Shawn Hartline, age 34, of Sistersville, West Virginia
• Rachel A. Cook, age 28, of Sistersville, West Virginia
• Holly C. Jenkins, age 55, of New Martinsville, West Virginia
• Justin Richeson, also known as “Squash,” age 34, of New Martinsville, West Virginia
• Timothy Lohri, age 36, of Williamstown, West Virginia
• John M. Talkington, age 29, of New Martinsville, West Virginia
• Haley Weigle, age 24, of New Martinsville, West Virginia
• Wilson Longwell, age 26, of Littleton, West Virginia
• Desiree Morgan, age 23, of Paden City, West Virginia
• Ronald Morgan, age 50, of New Martinsville, West Virginia
• Richard Warf, age 54, of Sistersville, West Virginia
• Charles C. Williamson, age 31, of Sistersville, West Virginia
• Brea M. Saeger, age 27, of Sistersville, West Virginia
• Miranda Stewart, age 23, of Sistersville, West Virginia
• Susan Kotson, age 53, of New Martinsville, West Virginia
• Alex King, age 32, of New Martinsville, West Virginia
• Amber M. Richeson, age 36, New Martinsville, West Virginia
• Boyd Williamson, age 36, of Middlebourne, West Virginia
• Cynthia L. Henries, age 47, of New Martinsville, West Virginia
• Todd Jones, age 55, of New Martinsville, West Virginia
• Randy Peffer, age 25, of New Martinsville, West Virginia
• Doug William Matthews, age 32, of New Martinsville, West VirginiaIn addition, six men and two women from Ohio, suspected members or associates of a street gang called the “Elaine Crip Family,” were indicted by a federal grand jury sitting in Wheeling on April 3, 2018 in connection with the same trafficking of methamphetamine, cocaine, and heroin into Wetzel and Tyler Counties, as well as into the southern district of West Virginia.
Those charged in that indictment with “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances” are:
• Rodriquies M. Evans, also known as “Dree”, age 27, of Columbus, Ohio
• Marisa Page, age 26, of Columbus, Ohio
• Kenyatta Banks, Jr., also known as “Yatta”, age 28, of Canal Winchester, Ohio
• Matthew Jackson, also known as “Matt-Matt”, age 22, of Columbus, Ohio
• Delkira L. Rodgers, age 20, of Columbus, Ohio
• Robert L. Gregory, age 36, of Columbus, Ohio
• Cedric L. Douglas, age 29, of Groveport, Ohio
• Aaron Callahan, age 28, of Columbus, OhioAssistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
11 June 2018
Worcester Man Charged with Child Pornography OffenseRead the Press Release
BOSTON – A Worcester man will appear in federal court in Worcester today in connection with possessing child pornography.
James M. Stoddard, 38, was charged with one count of possession of child pornography. He will appear in federal court in Worcester today at 2:30 P.M. before U.S. District Court Chief Magistrate Judge David H. Hennessy.
According to court documents, in April 2018, authorities conducted a search of Stoddard’s residence in Worcester and located numerous videos and images of child pornography. Among these were videos depicting prepubescent minors engaging in sexual acts with adult men. Stoddard was arrested and charged in state court the day of the search and has been in state custody since his arrest.
Court documents also indicate that Stoddard failed to register his current address with the Massachusetts Sex Offender Registry Board despite being required to do so given a prior conviction for a child pornography offense.
The charge provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Worcester Police Chief Steven M. Sargent made the announcement today. The Worcester County District Attorney’s Office provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
With Assistance of U.S. Attorney’s Office in Southern District of Florida, U.S. Extradites Former President of Panama to Face Illegal Wiretapping and Embezzlement ChargesRead the Press Release
The United States today extradited Ricardo Alberto Martinelli Berrocal, who served as President of Panama from 2009 to 2014, to stand trial in that country on four charges related to an illegal wiretapping scheme allegedly conducted while he was in office.
Acting Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida made the announcement.
“Following a year of litigation in the United States, former Panamanian President Ricardo Alberto Martinelli Berrocal has been extradited to Panama to face charges of embezzlement and illegal wiretapping,” said Acting Assistant Attorney General Cronan. “This extradition is a testament to the Department of Justice’s commitment to honoring our extradition treaty obligations. I especially thank the hard-working attorneys and international affairs specialists in the Office of International Affairs, as well as our partners in the U.S. Attorney’s Office for the Southern District Florida, for their tireless efforts in support of this extradition.”
“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to make sure that former Panamanian President Ricardo Alberto Martinelli Berrocal would be extradited back to his home country to face criminal charges,” said U.S. Attorney Greenberg. “Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties. Because of Panama’s partnership with the United States, Martinelli has been returned to Panama.”
Ricardo Alberto Martinelli Berrocal, 66, formerly of Coral Gables, Florida, was indicted in Panama for illegally monitoring communications of more than 150 people between 2012 and 2014 using an extensive surveillance system, and for embezzling over $10 million in public funds. A justice of the Supreme Court of Justice of the Republic of Panama (the highest court in Panama) issued an arrest warrant for Martinelli on Dec. 21, 2015.
The Criminal Division’s Office of International Affairs, working with the government of Panama, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Department of State successfully returned the former Panamanian President in response to a request submitted under the terms of the extradition treaty between the United States and Panama.
According to the information provided by the government of Panama in support of its extradition request, shortly after taking office, Martinelli created the National Security Council, an advisory body to the President containing a “Special Services” unit, which carried out confidential activities at the direction of the President. The Special Services unit used two multi-million-dollar surveillance systems to illegally intercept and record the private communications from the cell phones and computers of at least 150 individuals whom Martinelli identified as “targets,” including his political allies and opponents and their family members, his business rivals, Panamanian judges, journalists, union activists, U.S. diplomats, and others. Shortly following the 2014 elections, and before Martinelli left office as President, members of the National Security Council removed much of the surveillance equipment from the Special Services’ office. The whereabouts of the equipment is currently unknown.
On Aug. 31, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Martinelli could be extradited to Panama on the four Panamanian charges. Martinelli then filed a petition for a writ of habeas corpus, which the federal district court in the Southern District of Florida denied on Jan. 23, 2018.
Following a thorough review of Martinelli’s case, Deputy Secretary of State John J. Sullivan issued a warrant ordering Martinelli’s surrender to Panamanian authorities. Today, the U.S. Marshals Service executed that warrant, transported Martinelli to Panama, and delivered him to the custody of Panamanian authorities.
With the extradition now complete, the case will now move forward in the Panamanian legal system and any finding of guilt or innocence will be made by Panamanian courts.
The extradition proceedings and subsequent appellate litigation were handled by Acting Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs (OIA), and Assistant U.S. Attorneys Emily M. Smachetti and Adam S. Fels of the Southern District of Florida with the support of OIA Assistant Director Magdalena Boynton and the Criminal Division’s Appellate Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Customs and Border Protection Officer Convicted for Making False Statements for Personal GainRead the Press Release
LOS ANGELES – A federal jury in Los Angeles convicted a U.S. Customs and Border Protection (CBP) officer for abusing a program that provided discounted homes to law enforcement officers and misleading an investigator during a background investigation for security clearance.
Kanit Kunnaragthai, 49, of Palmdale, was found guilty Thursday afternoon following a three-day trial in United States District Court.
The jury found Kunnaragthai guilty of three felony counts: two counts of making a false statement to the U.S. Department of Housing and Urban Development (HUD) in relation to a house in Moreno Valley that he purchased under the Good Neighbor Next Door (GNND) Sales Program, and one count of making a false statement to an Office of Personnel Management (OPM) investigator to maintain his security clearance as a CBP officer.
Kunnaragthai exploited HUD’s GNND Sales Program, which seeks to revitalize distressed communities by incentivizing law enforcement, firefighters, teachers, and emergency medical technicians to live in those communities. The incentive is a 50 percent discount on the purchase price of HUD-owned properties in those communities. In return for the substantial discount, the GNND Sales Program requires that purchasers live continuously in the property as their sole residence for at least three years and sign a yearly certification confirming compliance.
According to court documents and the evidence presented to the jury, Kunnaragthai did not live in the property in Moreno Valley. Instead, he was a landlord and rented the three-bedroom house to college students. The evidence showed that Kunnaragthai actually lived with his family nearly 70 miles away in the Eagle Rock neighborhood of Los Angeles. Nevertheless, he provided HUD with annual certifications during the three-year period stating that he lived at the property in Moreno Valley as his sole residence.
Kunnaragthai also omitted his Eagle Rock residence on a security clearance form. When confronted with this omission, Kunnaragthai told the background investigator with OPM that he “never” lived at the Eagle Rock apartment.
The case against Kunnaragthai was investigated by the Department of Housing and Urban Development, Office of Inspector General; Department of Homeland Security, Office of Inspector General; Customs and Border Protection, Office of Professional Responsibility; and Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorneys MiRi Song and Roger A. Hsieh of the Central District of California, General Crimes Section.
US Extradites Former President of Panama to Face Illegal Wiretapping and Embezzlement ChargesRead the Press Release
The United States today extradited Ricardo Alberto Martinelli Berrocal, who served as President of Panama from 2009 to 2014, to stand trial in that country on four charges related to an illegal wiretapping scheme allegedly conducted while he was in office.
Acting Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida made the announcement.
“Following a year of litigation in the United States, former Panamanian President Ricardo Alberto Martinelli Berrocal has been extradited to Panama to face charges of embezzlement and illegal wiretapping,” said Acting Assistant Attorney General Cronan. “This extradition is a testament to the Department of Justice’s commitment to honoring our extradition treaty obligations. I especially thank the hard-working attorneys and international affairs specialists in the Office of International Affairs, as well as our partners in the U.S. Attorney’s Office for the Southern District Florida, for their tireless efforts in support of this extradition.”
“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to make sure that former Panamanian President Ricardo Alberto Martinelli Berrocal would be extradited back to his home country to face criminal charges,” said U.S. Attorney Greenberg. “Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties. Because of Panama’s partnership with the United States, Martinelli has been returned to Panama.”
Ricardo Alberto Martinelli Berrocal, 66, formerly of Coral Gables, Florida, was indicted in Panama for illegally monitoring communications of more than 150 people between 2012 and 2014 using an extensive surveillance system, and for embezzling over $10 million in public funds. A justice of the Supreme Court of Justice of the Republic of Panama (the highest court in Panama) issued an arrest warrant for Martinelli on Dec. 21, 2015.
The Criminal Division’s Office of International Affairs, working with the government of Panama, the U.S. Attorney’s Office for the Southern District of Florida, and the U.S. Department of State successfully returned the former Panamanian President in response to a request submitted under the terms of the extradition treaty between the United States and Panama.
According to the information provided by the government of Panama in support of its extradition request, shortly after taking office, Martinelli created the National Security Council, an advisory body to the President containing a “Special Services” unit, which carried out confidential activities at the direction of the President. The Special Services unit used two multi-million-dollar surveillance systems to illegally intercept and record the private communications from the cell phones and computers of at least 150 individuals whom Martinelli identified as “targets,” including his political allies and opponents and their family members, his business rivals, Panamanian judges, journalists, union activists, U.S. diplomats, and others. Shortly following the 2014 elections, and before Martinelli left office as President, members of the National Security Council removed much of the surveillance equipment from the Special Services’ office. The whereabouts of the equipment is currently unknown.
On Aug. 31, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Martinelli could be extradited to Panama on the four Panamanian charges. Martinelli then filed a petition for a writ of habeas corpus, which the federal district court in the Southern District of Florida denied on Jan. 23, 2018.
Following a thorough review of Martinelli’s case, Deputy Secretary of State John J. Sullivan issued a warrant ordering Martinelli’s surrender to Panamanian authorities. Today, the U.S. Marshals Service executed that warrant, transported Martinelli to Panama, and delivered him to the custody of Panamanian authorities.
With the extradition now complete, the case will now move forward in the Panamanian legal system and any finding of guilt or innocence will be made by Panamanian courts.
The extradition proceedings and subsequent appellate litigation were handled by Acting Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Emily M. Smachetti and Adam S. Fels of the Southern District of Florida with the support of OIA Assistant Director Magdalena Boynton and the Criminal Division’s Appellate Section.
U.S. Attorney Mike Hurst and U.S. Marshal George White to Announce Results of Revent Law Enforcement Initiative Conducted Throughout the Southern District of MississippiRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst and U.S. Marshal George White will hold a press conference on TUESDAY, JUNE 12, 2018 at 10:30 a.m. to announce the results of "Operation Triple Beam," a collaborative multi-agency, anti-violent crime initiative led by the U.S. Marshals Service.
WHEN: TUESDAY, JUNE 12, 2018 10:30 A.M.
WHERE: United States Federal Courthouse
Second Floor Exterior Courtyard
501 E. Court Street
Jackson, Mississippi
***In the event of rain***
United States Attorney’s Office
Fourth Floor Conference Room
U.S. Attorney D. Michael Dunavant Selected to the 2018 Class of Leadership TennesseeRead the Press Release
Memphis, TN - Leadership Tennessee today announced its 45 Class VI members, leaders from rural and urban communities across Tennessee who will spend the next year engaging in collaborative, non-partisan dialogue on issues of statewide importance.
The 45 new class members represent each geographic region of the state, including the communities of Memphis, Martin, Jackson, Nashville, Clarksville, Murfreesboro, Knoxville, Kingsport, Johnson City and Chattanooga. Professional sectors represented include healthcare, education, economic development, government, tourism and agriculture.
Class VI members:
Adamsville: Commissioner Jai Templeton, Tennessee Department of Agriculture
Brentwood: Valerie Hayes, Managing Director, Deloitte
Bristol: Jerry Caldwell, Executive Vice President/General Manager, Bristol Motor Speedway; Senator Jon Lundberg, State of Tennessee
Columbia: Jeff Aiken, President, Tennessee Farm Bureau
Chattanooga: Jared T. Bigham, Executive Director, Chattanooga 2.0; Stacy Goodwin Lightfoot, Vice President College and Career Success, Public Education Foundation; Hodgen Mainda, Vice President Community Development, Electric Power Board – Chattanooga; David Steele, Director of Civic Engagement & Assistant Professor of Practice, University of Tennessee at Chattanooga; Dakasha Winton, Chief Government Relations Officer/Senior Vice President, Blue Cross Blue Shield of Tennessee
Clarksville: Charlie Koon, VP Corporate & Military Business Development, F&M Bank
Dresden: Mayor Jake Bynum, Weakley County
Franklin: Brigadier General Kurt Winstead, Director of Joint Staff, Tennessee National Guard
Jackson: Logan Hampton, President, Lane College; Justice Roger Page, Tennessee Supreme Court; Lisa Piercy, MD, Executive Vice President, West Tennessee Healthcare
Johnson City: Alan Levine, Chairman/CEO, Ballad Health
Kingsport: Mayor John Clark, City of Kingsport; Dr. Jeff McCord, Vice President, Economic and Workforce Development, Northeast State Community College; Aundrea Wilcox, Executive Director – KOSBE, Kingsport Chamber of Commerce
Knoxville: Pastor Daryl Arnold, Overcoming Believers Church; Robyn Jarvis Askew, Shareholder/Attorney, Lewis, Thomason, King, Krieg & Waldrop P.C.; Cynthia Gibson, Chief Legal & Business Affairs Officer (former), Scripps Networks Interactive; Dr. Victoria Neiderhauser, Dean and Professor, University of Tennessee Knoxville College of Nursing
Martin: Keith Carver, Chancellor, University of Tennessee at Martin
Maryville: Bryan Daniels, President & CEO, Blount Partnership
Memphis: Rob Clark, Chief Government Affairs Officer, St. Jude Children’s Research Hospital; Tosha Downey, Advocacy Director, Memphis Education Fund; Mike Dunavant, U.S. Attorney for the Western District of Tennessee, U.S. Department of Justice; Mitch Graves, President/CEO, HealthChoice LLC; Leslie Lynn Smith, President and CEO, EpiCenter Memphis; Tish Towns, Senior Vice President/Chief Administrative Officer, Regional One Health
Murfreesboro: Dan Caldwell, Senior Manager, Training, US Manufacturing, Nissan Group of North America; Beth Duffield, Senior Vice President of Education & Workforce Development, Rutherford County Chamber of Commerce
Nashville: Shanna Singh Hughey, President, Think Tennessee; Paige Kisber, President and CEO, Hospital Alliance of Tennessee; Amy New, Assistant Commissioner, Community and Rural Development, State of Tennessee Department of Economic and Community Development; Toks Omishakin, Deputy Commissioner/Chief of Planning and Environment, Tennessee Department of Transportation; Ann Jarvis Pruitt, Executive Director, Tennessee Alliance for Legal Services; Emily Reynolds, Vice Chairman, Tennessee Board of Regents; Gabe Roberts, Deputy Director and Chief Operating Officer, TennCare; Tara Scarlett, President/CEO, Scarlett Family Foundation; Todd Skelton, Deputy Counsel to Governor Bill Haslam, State of Tennessee; Deborah Taylor Tate, Director, Administrative Office of the Courts, Tennessee Supreme Court;
Union City: Lindsay Frilling, CEcD, CEO, Obion County Joint Economic Development Council;
"Each Leadership Tennessee class brings its own experience and insight to the table, and we’re especially excited about Class VI and what they bring to the conversation around critical issues in Tennessee," Leadership Tennessee Executive Director Cathy Cate said. "Each class grows together over the course of the year as they challenge their perspectives on issues in their communities. We’re looking forward to the conversations Class VI will have over the next year as they develop the program around focus areas they highlight as critical to state success."
Entering its sixth year, Leadership Tennessee selects a new class of leaders annually to visit different regions and communities of Tennessee, learning best practices and analyzing important issues faced by Tennesseans. To date, Leadership Tennessee has built a network of 175 leaders across the state.
"Leadership Tennessee helps you build relationships across multiple industries and sectors, public and private, but more importantly it builds opportunities for partnerships," recent Class V graduate and Tennessee Charter Schools Center CEO Maya Bugg said.
In conjunction with its fifth-year celebration, Leadership Tennessee brought Pulitzer Prize-winning author Thomas Friedman to tour the state and hosted its first gubernatorial forum at Lipscomb University in May. It also launched its "Volunteer State of Mind" initiative to spotlight Tennesseans’ propensity to selflessly serve and volunteer.
Earlier this year, Leadership Tennessee cohosted panels focused on the relationship between health, economic development, and education in building healthier communities, and it held a summit on childhood poverty in Northeast Tennessee in April.
Leadership Tennessee, an initiative of the College of Leadership & Public Service at Lipscomb University, fosters collaborative, non-partisan dialogue on issues of state importance, connecting a network of diverse leaders and engaged citizens.
U.S, Attorney Brady Announces the Arrest in Nigeria of an Individual who Conspired with 4 Others Charged in a Business E-Mail Compromise SchemeRead the Press Release
PITTSBURGH, PA – United States Attorney Scott W. Brady announced today the arrest of Taiwo Musiliudeen Idris by law enforcement authorities in Nigeria. Idris was charged today by criminal complaint in the Western District of Pennsylvania with one count of conspiracy to commit money laundering as part of a Business Email Compromise (BEC) scheme. The arrest was made public following an announcement by federal authorities of a significant coordinated effort to disrupt BEC schemes designed to intercept and highjack wire transfers from businesses and individuals, including many senior citizens.
According to U.S. Attorney Brady, Idris’ arrest was part of Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, and the U.S. Postal Service, to disrupt Business Email Compromise (BEC) schemes. The operation was conducted over a six-month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 arrests in Nigeria and three arrests in Canada, Mauritius, and Poland, respectively.
BEC, also known as "cyber-enabled fraud," targets businesses that regularly perform wire transfer payments, as well as individuals, including the elderly and purchasers of real estate. The schemes typically involve impersonating a key employee or other party to a business transaction after obtaining unauthorized access to that person’s email account. Fraudulent emails sent to the victim dupe the victim into wiring money to bank accounts controlled by the criminals instead of to a legitimate bank account belonging to a party to the transaction.
"Deception is at the heart of every business e-mail compromise or CEO impersonation scheme. Attackers gain access to a corporate e-mail account and then spoof the owner’s identity to defraud the company or its employees, customer or partners of money," said U.S. Attorney Brady. "We are committed to identifying and prosecuting anyone who uses the internet to financially exploit western Pennsylvania businesses and citizens."
"These types of schemes are constantly evolving as criminals become more sophisticated in targeting their victims,’ said Acting Special Agent in Charge Chad Yarbrough. "The best way to avoid being taken advantage of is to verify the authenticity of requests before they are carried out."
According to the criminal complaint affidavit, Taiwo Musiliudeen Idris conspired with Ismail Shitu, Nathanael Nyamekye, Adnan Ibrahim, and Akintayo Bolorunduro to launder over $411,000 in real estate settlement proceeds that were fraudulently obtained from a BEC. The BEC targeted the sellers of residential property in Maryland, along with their real estate company, and the settlement company.
According to the complaint affidavit, the settlement company received fraudulent emails and faxes that caused the settlement company to wire the sale proceeds to a bank account belonging to Ismail Shitu in the Western District of Pennsylvania, instead of to the bank account of the victim sellers. Specifically, the complaint affidavit states that on April 29, 2016, Ismail Shitu sent an instant message to Akintayo Bolorunduro containing the details of Shitu’s bank account. Within minutes, Bolorunduro sent Shitu’s bank account information to Taiwo Musiliudeen Idris in an instant message. Within twenty minutes of Idris’ receipt of Shitu’s bank account information, the settlement company received a fraudulent fax purporting to be from the sellers which requested the settlement proceeds to be wired to a bank account which, unbeknownst to them, belonged to Shitu.
The complaint affidavit further describes how the $411,000 was then withdrawn through Shitu’s purchase of eight official bank checks payable to various individuals and/or entities in varying amounts. Photos of several of the official bank checks were sent in instant messages from Shitu to Bolorunduro. Bolorunduro then forwarded those photos to Idris. Shitu, Nyamekye and Ibrahim then laundered the remaining funds.
Shitu, Ibrahim, and Bolorunduro pleaded guilty to conspiracy to commit money laundering. Bolorunduro was sentenced on May 10, 2018, by Judge Arthur J. Schwab to 63 months’ imprisonment. Shitu and Ibrahim are scheduled for sentencing on October 15, 2018. Nyamekye is scheduled for trial in September 2018.
Assistant United States Attorneys Charles A. Eberle, Adam N. Hallowell and James R. Wilson are prosecuting this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the arrest of Idris.
Two Women Sentenced to Prison for Bank Fraud ConspiracyRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants AMELIA M. TEDTAOTAO, age 31, and ANN MARIE C. PANGILINAN, age 41, were sentenced in District Court today by Chief Judge Frances Tydingco- Gatewood. The Court ordered terms of imprisonment as a result of the defendants’ convictions for Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1349. TEDTAOTAO was sentenced to 30 months imprisonment, three years of supervised release, ordered to pay $9,005.53 restitution, a $100 assessment fee and to perform 50 hours of community service. PANGILINAN was sentenced to 12 months imprisonment, the last six months of which can be served in home detention during a two year period of supervised release, and ordered to pay $2,850 restitution, a $100 assessment fee and to perform 50 hours of community service.
From May 2014 to July 2014, TEDTAOTAO, PANGILINAN and others participated in an ATM debit-fraud and check-fraud scheme involving Bank of Guam (BOG) funds and checks drawn from Wells Fargo Bank, N.A. As part of the conspiracy, the defendants deposited fraudulent checks into third party BOG accounts via ATM transactions, and then withdrew funds based upon those checks. For the entire period of the conspiracy, the defendants and their co-conspirators attempted to obtain over $70,000 from BOG by depositing 101 fraudulent checks drawn from a closed and insufficiently funded account at Wells Fargo Bank, N.A.
This case was investigated by the Federal Bureau of Investigation and Guam Police Department. The case was prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.
Two Plead Guilty, Third Defendant Awaiting Trial in Pawtucket Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE, RI – Two Pawtucket residents have pleaded guilty to federal charges and a third person is awaiting trial for their alleged participation in a drug trafficking conspiracy which operated out of a Pawtucket residence, announced United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
Appearing today before U. S District Court Judge John J. McConnell, Jr., Brandon Querceto, 31, pleaded guilty to possession with intent to distribute heroin and possession with intent to distribute 28 grams of more of cocaine base. On Friday, Jacqueline Caraballo, 44, pleaded guilty before U. S District Court Judge John J. McConnell, Jr., to conspiracy to distribute heroin, five counts of distribution of heroin, conspiracy to possess with intent to distribute cocaine, cocaine base and heroin, and one count each of possession with intent to distribute heroin, possession with intent to distribute cocaine and possession with intent to distribute cocaine base.
A third defendant arrested and charged in this matter, Michael Querceto, 33, is awaiting trial in federal court on one count of conspiracy to distribute heroin, four counts of distribution of heroin, conspiracy to possess with intent to distribute heroin, cocaine and cocaine base, and one count each of possession with intent to distribute heroin, possession with intent to distribute cocaine, possession with intent to distribute cocaine base, felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking crimes.
According to information presented to the Court, in September 2017, Pawtucket Police received information that an individual in Pawtucket was allegedly dealing heroin, arranging for the drug transactions via his cell telephone. Pawtucket Police linked the phone to Michael Querceto. The investigation also determined that Michael Querceto, his brother Brandon Querceto and Jacqueline Caraballo shared the same residence.
According to information presented to the Court, a Pawtucket Police Department undercover officer allegedly called Michael Querceto several times to arrange for a series of purchases of heroin. After the purchases were made over the course of several weeks, a court-authorized search warrant was obtained and executed at the Pawtucket residence, at which time law enforcement seized, among other drugs, heroin, cocaine, crack cocaine, steroids, fentanyl, $6,796 in cash, and a handgun.
According to information presented to the Court, it is alleged that Jacqueline Caraballo conspired with Michael Querceto to distribute and possess with the intent to distribute heroin, cocaine and crack cocaine. It is alleged that on at least five occasions she distributed heroin, four times with Michael Querceto.
According to information presented to the Court , during the court-authorized search of the residence, law enforcement seized from Brandon Querceto’s bedroom more than 5 grams of heroin and nearly 60 grams of crack cocaine packaged for distribution.
All three defendants have been detained since their arrest. Brandon Querceto and Jacqueline Caraballo are scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 11, 2018.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the Pawtucket Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Tonawanda Man Sentenced for His Role in Drug ConspiracyRead 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 Raymond Hopson, 35, of Tonawanda, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joel Violanti, who handled the case, stated that between July 28, 2016, and November 8, 2016, Hopson made several sales of crack cocaine to an undercover (UC) officer posing as a drug customer. During that time, the defendant was living with for Niagara Falls Police Officer Stephanie Costanzo, at her residence on Grand Avenue in Niagara Falls. Hopson would store some of his cocaine, along with paraphernalia used to weigh and distribute the cocaine, at the residence.
On November 9, 2016, Special Agents from the Drug Enforcement Administration (DEA), along with the Niagara Falls Police Department executed a search warrant at Costanzo’s residence. Agents and officers recovered approximately 5.6 grams of cocaine, a digital scale used for weighing and distributing the cocaine, and drug paraphernalia used to package and distribute the cocaine. Although she did not participate in the distribution of the controlled substances, Costanzo was aware that Hopson stored his cocaine and paraphernalia at her residence.
Hopson conspired with another co-defendant, Lindsay Carrier, to distribute crack cocaine. On five occasions between July 28, 2016, and November 8, 2016, Hopson obtained crack cocaine from Carrier and then sold it to an undercover officer. A search warrant executed at the Willow Avenue residence of Carrier’s mother, resulted in the seizure of quantities of cocaine and crack cocaine.
Costanzo and Carrier were previously convicted. Costanzo was sentenced to time served, and Carrier received 70 months in prison.
Hopson’s sentencing is the result of an investigation by the Niagara Falls Police department, under the direction of Superintendent Bryan Dalporto, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Three defendants face federal charges for illegally purchasing/possessing firearms used to kill area police officersRead the Press Release
Boone County Sheriff’s Deputy Jacob Pickett and Terre Haute Police Officer Robert Pitts killed with firearms that were illegally purchased
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that three individuals have been charged for their role in illegally purchasing/possessing firearms that were eventually used to kill two area police officers. The charges are a result of a violence reduction program initiated by the Department of Justice called Project Safe Neighborhoods (PSN).
Dawn Rochon, 29, Indianapolis, has been charged with eight counts relating to making false statements when acquiring a firearm. Tiffany N. Dean 33, West Terre Haute, faces charges of making a false statement when purchasing a firearm and her brother, Levi M. Brenton 20, Terre Haute, faces charges including conspiracy to make false statements when purchasing a firearm, possession of a firearm by an unlawful drug user and selling/giving a firearm to an unlawful drug user.
“When guns are purchased or possessed illegally, it is never for a good reason and the results are often tragic,” said Minkler. “We all continue to mourn the loss of Deputy Pickett and Officer Pitts and law enforcement must hold all those who contributed to their senseless death accountable. Those who ‘lie and buy’ guns will be prosecuted in federal court.”
According to court documents and testimony, Rochon allegedly made an illegal purchase of a 9mm handgun in February 2017, from a gun store in Indianapolis, making false statements on the purchase documents. The same gun is alleged to have been used to kill Boone County Deputy Jacob Pickett in March 2018. The indictment further alleged Rochon made three similar illegal purchases of firearms.
Similarly in February 2017, Tiffany N. Dean is alleged to have purchased a 9mm handgun from a gun store in Terre Haute. Dean completed required paperwork for the purchase, indicating the gun was for her, when in fact the gun was being purchased for her brother Levi M. Brenton because he was “too young to buy it.” According to the criminal complaint, Dean and Brenton went to the gun store together to purchase the firearm and Brenton left the store with the gun in his possession. It is further alleged that Brenton then sold the gun for $350. That same gun was allegedly used in the killing of Terre Haute Police Officer Robert Pitts in May 2018.
“ATF remains committed to removing violent criminals from our communities, including those who provide firearms to individuals who are prohibited from having them,” stated Trevor A. Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “The lasting damage that gun violence does to our communities cannot be overstated. ATF will work tirelessly to address and combat gun violence perpetrated against our community and the men and women in law enforcement.”
In January 2018, Minkler introduced a violence reduction strategy called Project Safe Neighborhoods, specifically aimed at reducing the number of homicides and non-fatal shooting in both Indianapolis and Evansville. An Assistant United States Attorney is assigned to each IMPD District as well as working closely with the Evansville Police Department to prosecute individuals who illegally carry firearms. To date 117 PSN cases have been charged. Some of the most egregious include:
Franklin Fitzpatrick, 42, Louisville, charged in Evansville, two-time convicted felon actively engaged in methamphetamine distribution while in possession of three handguns.
Korrtel Filzen, 28, Indianapolis, convicted felon charged with brandishing a firearm during a crime of violence and eight business robberies in Indianapolis.
Brennan Rogers, 48, Indianapolis, felon in possession of a 9mm handgun, 9mm tec-9 pistol and illicit drugs.
Anthony White, 20, and Brian York, 30, both from Indianapolis, charged with brandishing a firearm during a crime of violence and robbing six Dollar General stores and a BP Gas Station
Lemontrae Bible, 24, Indianapolis, convicted felon on two separate drug-related charges in possession of loaded .22 caliber pistol.
These cases have been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Drug Enforcement Administration, Homeland Security Investigations, Indianapolis Metropolitan Police Department, Lawrence Police Department, Speedway Police Department and the Evansville Police Department.
Assistant United States Attorney who are prosecuting PSN cases include: Will McCoskey, Matthew Lasher, Kendra Klump, Pamela Domash, Peter Blackett, Jeff Preston, Todd Shellenbarger, Lauren Wheatley and Barry Glickman.
Attorney General Sessions has directed U.S. Attorneys from around the country to take the lead in results-oriented reinvigoration of Project Safe Neighborhoods. PSN is a collaborative approach to public safety to reduce violent crime and make our neighborhoods safe for everyone. Indianapolis has a violent crime rate 2.5 times the national average and a homicide rate 4.5 times the national average. Minkler strongly believes aggressive prosecutions of the most violent criminals will be a catalyst to reduce the number of gun-related victims.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals committing violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3)
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Three Broward County Residents Sentenced to Prison for Heroin and Firearms TraffickingRead the Press Release
Three Broward County residents have been sentenced to prison for their involvement in a heroin and firearms trafficking enterprise.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
According to the court record, associates Scoth Vilbrun, 19, Mondlin Seppe, a/k/a “Box Chevy,” 27, and Jovante Telfort, 26, all of Pompano Beach, were involved in the trafficking of firearms and narcotics. On July 13, 2017, Vilbrun sold approximately 7 grams of heroin and a .45 rifle to an undercover officer. On August 10, 2017, Seppe, sold approximately 14 grams of heroin and 2 revolvers to an undercover officer. On June 23, 2017, Telfort, 26, sold approximately 15 grams of heroin and a Ruger, mini 30 rifle to an undercover officer.
The defendants previously pled guilty to possession with intent to distribute narcotics and possession of a firearm during and in relation to a drug trafficking offense and were recently sentenced to prison by United States District Court Judge William P. Dimitrouleas. On May 30, 2018, Telfort, was sentenced to a total of 84 months in prison (24 months in prison for the narcotics offense, to be followed by 60 months in prison for the firearm offense). On the same date, Seppe was sentenced to a total of 78 months in prison (18 months in prison for the narcotics offense, to be followed by 60 months in prison for the firearm offense). On June 6, 2018, Vilbrun was sentenced to a total of 72 months in prison (12 months in prison for the narcotics offense, to be followed by 60 months in prison for the firearm offense).
Each defendant was sentenced to 3 years of supervised release for the narcotics offense, to run concurrent to 5 years of supervised release for the firearm offense.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mr. Greenberg commended the investigative efforts of the ATF and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney Bruce Brown.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Man Charged with Distribution of Fentanyl Resulting in Death, Two Others Charged with Conspiracy and DistributionRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the indictment of Corey Damond Smith, Jr. (23, Tampa) for the distribution of fentanyl resulting in the death of an individual. If convicted, he faces a maximum penalty of life imprisonment.
In addition, a separate indictment has been returned against Jeffrey Luis Rodriguez (33, Tampa) charging him with one count of conspiracy to distribute heroin and fentanyl resulting in serious bodily injury, one count of distribution of heroin involving serious bodily injury, and five counts of distributing heroin or fentanyl or both. If convicted of the offenses, he faces a life term in federal prison.
A third individual, Donald Calvin Hatch, Jr. (29, Tampa) has pleaded guilty to conspiracy to distribute heroin and fentanyl. He faces up to 30 years in federal prison. A sentencing date for Hatch has not yet been set.
According to court documents, on November 13, 2017, the Hillsborough County Sheriff’s Office responded to an address near the University Mall area to aid a man, B.D., who had suffered from an opioid overdose. Hillsborough County Fire Rescue also responded to the scene and administered several doses of an opioid overdose reversal medication (Narcan). However, these lifesaving measures were unsuccessful in reviving the victim. Detectives learned that the victim had obtained the narcotics from Smith, who had sold them as heroin. In fact, Smith had actually sold fentanyl, which is 10 times stronger than heroin. A medical autopsy revealed that the cause of death of the victim was fentanyl intoxication.
In his plea agreement, Hatch admitted to conspiring with Rodriguez, acting as his middleman, in five sales of opioids to undercover law enforcement. Hatch also admitted to having used heroin sold to him by Rodriguez and overdosing as a result.
An indictment is merely formal charge that an individual has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
These cases are part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. They were investigated by the Hillsborough County Sheriff’s Office’s Heroin Working Group, with assistance from the Hillsborough County Medical Examiner’s Office. They are being prosecuted by Assistant United States Attorney Thomas Palermo.
Swiftbird Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Swiftbird, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, Assault by Strangulation and Suffocation, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Raven Different Horse, age 27, was indicted on May 22, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 7, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 23, 2018, Different Horse assaulted his intimate partner sexually, with a dangerous weapon, and by suffocation, which caused serious bodily injury.
The charges are merely accusations and Different Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Different Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Petersburg Man Sentenced to More Than 17 Years for A Federal Firearm OffenseRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Devin Fabian Collins (25, St. Petersburg) to 17 years and 6 months in federal prison for being a felon in possession of a firearm. The court also ordered him to forfeit the firearm used in the offense. Collins was found guilty by a jury on February 13, 2018.
According to evidence presented at trial, Collins drove recklessly through St. Petersburg as he was being followed by a police helicopter. After Collins pulled into an apartment complex, officers arrived at the scene and Collins fled on foot, while tossing drugs and a gun. At the time of the incident, Collins had a prior felony conviction and is, therefore, prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys James Preston and Callan Albritton.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Southington Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Smokin’ with Chris Restaurant in Southington, to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with mobility disabilities alleging that the Smokin’ with Chris facility was not accessible. The restaurant is in the process of making the changes to its facility required by the settlement agreement, including creating accessible parking spaces, adding an accessible entry route and entrance to the restaurant, providing a ramp to the accessible entrance, constructing an accessible restroom, and adding accessible seating in the dining, bar, and patio areas. Smokin’ with Chris will continue to make improvements to its facility over the next year.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted the commitment of the owners of Smokin’ with Chris to work collaboratively with the U.S. Attorney’s Office to address the ADA issues and to increase the restaurant’s accessibility without litigation.
“The U.S. Attorney’s Office is committed to enforcing the Americans with Disabilities Act, which ensures that individuals are able to access and enjoy the state’s restaurants and other places of public accommodation,” stated U.S. Attorney Durham. “We appreciate the cooperation of the owners of Smokin’ with Chris throughout our investigation and their readiness to agree to remediate the restaurant’s architectural barriers.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Signature Healthcare to Pay More Than $30 Million to Resolve False Claims Act Allegations Related to Rehabilitation TherapyRead the Press Release
Signature HealthCARE, LLC (Signature), a Louisville, Kentucky based company that owns and operates approximately 115 skilled nursing facilities, including seven in middle Tennessee, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, the Department of Justice announced today. The settlement also resolves allegations that Signature submitted forged pre-admission certifications of patient need for skilled nursing to the state of Tennessee’s Medicaid program. Under the settlement agreements, Signature has agreed to pay more than $30 million. As part of the resolution, the State of Tennessee will receive a portion of the settlement.
“Health care providers who engage in deceptive practices place patients at unnecessary risk and contribute to the financial distress of our federal healthcare programs,” said U.S. Attorney Cochran. “Our dedicated teams of civil enforcement attorneys will work tirelessly with the relators who report fraud such as this and with our law enforcement partners who investigate healthcare fraud. When we determine that companies are cheating the taxpayers, we will hold them accountable as we have in this case.”
The government alleged that Signature engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: presumptively placing patients in the highest therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; and, pressuring therapists and patients to complete the planned minutes of therapy even when patients were sick or declined to participate in therapy.
“Health care fraud impacts the quality of our health care, in addition to costing consumers and taxpayers,” said Acting TBI Director Jason Locke. “We are fortunate to have this strong relationship with our federal law enforcement partners in continuing to investigate this type of behavior in Tennessee.”
“We will continue to work with our state and federal partners to hold healthcare providers accountable for false billing,” said Tennessee Attorney General Herbert Slatery III. “This settlement demonstrates a continued commitment to protecting the integrity of the TennCare program.”
“Signature was charged with illegally boosting profits by providing excessive amounts of therapy to patients whether they needed it or not,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services, Office of Inspector General. “The decision to provide therapy should never be based on corporate financial considerations rather than a patient’s medical needs.”
The settlement resolves allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Offices for the Middle District of Tennessee and the Northern District of Georgia; the Tennessee Bureau of Investigation; the Defense Criminal Investigative Service; and the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorneys Sarah K. Bogni of the Middle District of Tennessee and Lena Amanti of the Northern District of Georgia represent the United States. Assistant Attorney General Philip Bangle represents the State of Tennessee.
The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Seven Des Moines Individuals Charged with Sex TraffickingRead the Press Release
DES MOINES, Iowa – On March 28, 2018, a federal grand jury returned an Indictment charging seven defendants with sex trafficking announced United States Attorney Marc Krickbaum. Six defendants were arrested and appeared in federal court in Des Moines. The remaining defendant was arrested on June 8, 2018, in Texas. Trial is scheduled for October 15, 2018, before United States District Court Chief Judge John A. Jarvey.
According to the Indictment, in the Spring and Summer of 2017, the defendants trafficked three adult victims. Darren Coleman, Sarina Williams, Mark Carter, and Stephen Cobb are alleged to have conspired with one another, and actually engaged in, sex trafficking of a victim by force, fraud, and coercion. Coleman and Cobb are further alleged to have used a firearm in the course of trafficking the victim. Coleman and Sarina Williams are charged with additional offenses relating to the travel of the victim across state lines for the purposes of prostitution.
Mark Carter, Julyen Singleton, Ronzell Williams, and Breanna Brown are charged in the same Indictment with conspiring with one another to traffic, and to have actually trafficked, a separate victim by force, fraud, and coercion. Mark Carter is also charged with sex trafficking a third victim by force, fraud and coercion, and for using a firearm in the course of these offenses.
Each defendant is subject to a fifteen-year mandatory minimum term of imprisonment for sex trafficking by force, fraud, or coercion, up to life imprisonment. Conspiracy to engage in sex trafficking has no mandatory minimum prison sentence and has a maximum term of imprisonment of life.
The public is reminded that an Indictment is merely an accusation, and the defendants are presumed innocent unless they are proven guilty.
Human trafficking is defined as a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.
This case was investigated by the Des Moines Police Department, Vice and Narcotics Control Section. Analytical support has been provided by the Iowa Division of Intelligence and Fusion Center, Department of Public Safety, as well as the Mid-States Organized Crime Information Center. The Polk County Attorney’s Office also assisted with this prosecution. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.