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5 June 2018
United States Recovers $600,000 in Federal Natural Gas Royalty False Claims Act SettlementRead the Press Release
DENVER - The United States Attorney for the District of Colorado, Bob Troyer, today announces the recovery of $600,000 as settlement of allegations that Great Western Drilling Corporation ("GWD") violated the federal False Claims Act by failing to pay money owed on natural gas produced from federal leases located in New Mexico.
Congress has authorized federal lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced from those leases. Each month, companies are required to report to the Department of the Interior's Office of Natural Resources Revenue ("ONRR") the amount of royalty that is due. While the lessee is permitted to deduct certain post-production costs from its federal royalty payment, the lessee is required to place the gas in marketable condition at no cost to the United States.
The Settlement Agreement resolves contentions by the United States that GWD underreported and underpaid federal royalties due from July 2010 through June 2016. During this time, GWD received a lower sales price from its third-party purchasers because those purchasers paid the natural gas processer, Enterprise Processing, for the transportation, compression, and processing of GWD's gas. GWD did not credit the United States for the portion of the price reduction that related to the Enterprise Processing costs to place the gas in marketable condition. Instead, GWD paid royalties only on the decreased purchase price. In this way, the United States contends, GWD knowingly underreported and underpaid royalties owed to ONRR.
"We don't tolerate these games, and will continue to purse, and get every dollar due from, companies that underpay royalties," said United States Attorney Bob Troyer.
Ron Gonzales, Special Agent in Charge of the Office of Inspector General's Energy Investigations Unit stated, "This settlement is the result of Federal agencies working collaboratively and diligently to ensure that revenues generated from public resources are accounted for on behalf of the American taxpayers. The OIG is committed to work with DOJ, ONRR, and our Office of the Solicitor to support the Department's revenue collection programs."
Geary Keeton, Program Manager for Enforcement with ONRR stated, "ONRR works closely with the OIG and DOJ to help ensure that we collect every dollar due the American people."
The United States Attorney's Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today's recovery, including the Office of Natural Resources Revenue, the Department of the Interior's Office of the Solicitor, and the Energy Investigations Unit of the Department of the Interior's Office of Inspector General. The United States Attorney's Office in Denver, Colorado works closely with these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang of United States Attorney's Office in Denver, Colorado.United States Attorney’s Office Outreach Programs Reach 15,000Read the Press Release
PROVIDENCE, RI – Approximately 15,000 high school and middle school students, teachers, school administrators and parents across Rhode Island participated in outreach programs this school year presented by the United States Attorney’s Office. The programs focus on opioid and illegal narcotic addiction awareness, the increasing impact on teenagers from e-cigarettes and vaping, and the myths and realities of street gangs and violence.
The programs include 4 Legs to Stand On, a live performance drawing attention to addiction awareness and support presented by cast members of COAAST (Creating Outreach About Addiction Support Together); the powerful documentary Chasing the Dragon - an unscripted, real-life look at the devastation of opioid and heroin addiction; the emerging impact, including addiction, from the use of e-cigarettes and vaping; and Street Smarts, an interactive anti-gang and anti-violence program that delivers a powerful message to teenagers about the myths of getting involved in gangs, drug dealing and guns.
Over the past two school years, between 25,000 and 30,000 middle and high school students across Rhode Island have participated in outreach programs presented by the United States Attorney’s Office, in collaboration with Prevention Coalitions, Rhode Island Student Assistance Services, school administrators and community-based organizations.
“The problems of substance abuse and violent crime cannot be solved through arrest and prosecution alone. Prevention must be part of law enforcement’s response to these significant threats to public health and safety,” commented United States Attorney Stephen G. Dambruch. “Through our outreach programs, the United States Attorney’s Office educates and informs young people about the dangers of substance abuse and violence, providing them the information they need to make smart choices.”
In collaboration with the United States Attorney’s Office, COAAST’s 4 Legs to Stand On was presented to students at high schools in Barrington, Central Falls, Cranston, North Providence, Pawtucket, Portsmouth, Providence and Woonsocket. The play exposes the secrecy that shrouds many families while dealing with addiction or a serious illness. Through humor and realism contrasted against hypocrisy, this story invites the audience to take a seat at the dinner table while the family’s foundation is challenged as one family member struggles with cancer and another struggles with an opioid addiction. The play is followed by an open and thought provoking question and answer session with the performers and the founder of COAAST, they themselves touched in various ways by addiction.
For the second consecutive school year, the United States Attorney’s Office, in collaboration with Prevention Coalitions and school administrators, presented the powerful documentary Chasing the Dragon - an unscripted, real-life look at the devastation of opioid and heroin addiction. The video presentation was followed by the personal story of a local parent who lost her only child to opioid and heroin addiction, and an open and frank discussion with the audience about addiction, treatment and support. The program was presented in schools and in community settings in Coventry, Pawtucket and Warwick.
Additionally, United States Attorney’s Office Investigator David Neill, a retired Rhode Island State Police Major with an extensive background in investigating street level drug trafficking and the impact drug trafficking has on local communities, visited schools across Rhode Island to speak with students, teachers, administrators and parents on the inherent dangers, particularly for teenagers, from the use of e-juices, e-cigarettes and vaping. Mr. Neill provided demonstrations on marketing techniques aimed at teenagers to increase their interest in the use of these products, and the deceptive ways users carry the product, disguised as items such as thumb drives, markers and inhalers. Mr. Neill provided a total of 49 presentations in schools and community settings.
And again this school year, Assistant United States Attorney Richard W. Rose presented his Street Smarts program to high school students. Street Smarts is an interactive program which delivers a powerful message to teenagers about the myths and the realities about becoming involved in street gangs, drug dealing and the use of firearms.
School administrators, community leaders and community based organizations interested in additional information about these and other outreach programs provided by the United States Attorney’s Office, including civil rights, elder justice and crime victim support outreach programs, can contact Outreach Coordinator Jim Martin at (401) 709-5357 or investigator David Neill at (401) 709-5035.
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U.S. Attorney's Office to Hire Three Federal Prosecutors Following Newly-Allocated Positions Announced by the Justice DepartmentRead the Press Release
CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that the Western District of North Carolina will hire three Assistant U.S. Attorneys (AUSAs), following an announcement by the Justice Department regarding newly-allocated AUSA positions. Two AUSAs will focus on violent crime prosecutions, and one will join the Office’s Affirmative Civil Enforcement (ACE) unit, with a special focus on civil opioid enforcement.
“Reducing violent crime and tackling the opioid abuse epidemic are priority areas for my Office and the Justice Department,” said U.S. Attorney Murray. “The addition of three federal prosecutors will further our mission to seek justice and to keep the citizens of Western North Carolina as safe as collectively possible.”
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump’s strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’ When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
U.S. Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
U.S. Attorney General Jeff Sessions and U.S. Attorney for the Middle District of Louisiana Brandon Fremin announced that the U.S. Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."
In the Middle District of Louisiana, two new AUSAs will focus on violent crime and another on civil enforcement.
U.S. Attorney Fremin stated, “This is yet another example of the commitment by the President and the U.S. Attorney General to reduce violent crime in our communities. Adding more capable and aggressive prosecutors to our ranks will allow us to strengthen our already robust efforts against those seeking to undermine the safety and security of our district. This should be a welcomed development for all honest and law-abiding residents of the district.”
Two illegal aliens indicted on a drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two men in the United States illegally were indicted today by a federal grand jury on drug charges, United States Attorney Bill Powell announced.
Hsun Jung Chang, age 29, and Shougi Li, age 24, are each charged with one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Marijuana,” and one count of “Aiding and Abetting Possession with Intent to Distribute Marijuana.” The men are accused of possessing marijuana in Ohio County in May 2018.
Each defendant faces up to five years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The West Virginia State Police and the Ohio County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Yonkers Men Arrested After High-Speed Car ChaseRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department, announced today the filing of federal criminal charges against HARRY QUINTANA-CRUZ and ALEJANDRO ORTIZ-CRUZ, both of whom were charged in a complaint with forcibly assaulting, resisting, and interfering with FBI Special Agents by colliding into their vehicle after a high-speed car chase. QUINTANA-CRUZ was also charged with being a convicted felon in possession of a firearm after a gun was found in an apartment where he resided. Both QUINTANA-CRUZ and ORTIZ-CRUZ will be presented today in White Plains federal court before the Honorable Judith C. McCarthy.
U.S. Attorney Geoffrey S. Berman said: “Thankfully, the FBI, the United States Probation Office, and the Yonkers Police Department put the brakes on this car chase quickly and safely. Quintana-Cruz and Ortiz-Cruz are now in custody and facing federal felony charges.”
FBI Assistant Director William F. Sweeney Jr. said: “We have a responsibility to the public to protect them from criminals who pay no heed to the danger they place innocent people in while trying to evade law enforcement. Luckily in this case, no one was hurt. We want to thank our law enforcement partners in this investigation, and appreciate their dedication to the safety of the community.”
Yonkers Police Commissioner Charles Gardner said: “This incident highlights both the dangers our law enforcement officers face every day, and the shared commitment the Yonkers Police Department has with our local and Federal partners in apprehending those individuals who dare to commit acts of violence in our communities. I applaud our officers, the FBI’s Westchester County Safe Streets Task Force, and the U.S. Probation Office for their exceptional efforts in making these arrests.”
According to the allegations in the Complaint unsealed in White Plains federal court:[1]
On June 1, 2018, QUINTANA-CRUZ fled on foot from officers of the U.S. Probation Office who sought to meet with him regarding non-compliance with the terms of his supervised release. After arranging for his brother, ORTIZ-CRUZ, to pick him up in a car, a high-speed police chase ensued with ORTIZ-CRUZ at the wheel. During the pursuit, the defendants’ vehicle drove through red lights, failed to stop at “Stop” signs, and proceeded in the wrong direction on one-way streets. At one point, the vehicle approached two law enforcement cars blocking an intersection, one of which was an FBI car. Instead of slowing down, the defendants’ vehicle rammed into the FBI car and continued driving for a few more blocks before finally stopping as a result of another collision. In addition to being charged with assaulting the officers effecting his arrest, QUINTANA-CRUZ is charged with being a convicted felon in possession of a firearm after a Springfield Armory .40 caliber pistol was found in an apartment where he resided. The investigation is continuing.
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Both QUINTANA-CRUZ, 26, and ORTIZ-CRUZ, 18, of Yonkers, New York, are charged with one count of assaulting, resisting, and interfering with their arresting officers, which carries a maximum sentence of 20 years in prison. QUINTANA-CRUZ is also charged with one count of being a convicted felon in possession of a firearm, which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the U.S. Probation Office, the Yonkers Police Department, and the FBI’s Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, the U.S. Probation Office, the Westchester County Department of Public Safety, the Westchester County District Attorney’s Office, the New York City Police Department, the Yonkers Police Department, the Peekskill Police Department, the Greenburgh Police Department, the Mount Vernon Police Department, and the New York State Police Department. Mr. Berman thanked the Westchester County District Attorney’s Office for its assistance in the arrest and apprehension of the defendants.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Sam Adelsberg is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two New Federal Prosecutors in Kansas Will Join New Prosecutors NationwideRead the Press Release
KANSAS CITY, KAN. – Two new federal prosecutor positions will increase resources to combat violent crime in Kansas, U.S. Attorney Stephen McAllister said today.
In the largest increase in decades, Attorney General Jeff Sessions announced today the Department of Justice is allocating 190 new Assistant United States Attorneys nationwide to increase prosecutions for violent crime. From that nationwide allocation, the District of Kansas will receive two new Assistant U.S. Attorney positions dedicated to fighting violent crime.
“The addition of two Assistant United States Attorney to prosecute violent crime in Kansas will make an immediate and significant impact on our efforts,” U.S. Attorney McAllister said. “The timing of these new prosecutorial resources could not be better. Our office is in the early stages of implementing Project Safe Neighborhoods 2.0, an initiative that targets communities where violence is a particular problem for additional federal investigations and prosecutions. We will do everything in our power to take the most violent offenders off the streets of Kansas communities. I thank the Attorney General and the leadership of the Department of Justice for providing these important prosecutorial resources to the District of Kansas.”
Attorney General Sessions said: “Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis — and today we are sending in reinforcements. We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
Two Customs and Border Protection Officers Indicted, Another Pleads Guilty to Assaults on Fellow Officers at Newark AirportRead the Press Release
NEWARK, N.J. – Two Customs and Border Protection (CBP) officers were indicted and another pleaded guilty for their roles in the assaults of two fellow CBP officers at Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced today.
Parmenio I. Perez, 40, of Hawthorne, New Jersey, and Michael A. Papagni, 32, of Staten Island, New York, were charged by indictment today with two counts of forcibly assaulting, impeding, intimidating, and interfering with two CBP officers, identified in court documents as “Victim One” and “Victim Two,” while the victims were engaged in their duties as CBP officers. They will be arraigned at a later date.
Tito Catota, 38, of Lyndhurst, New Jersey, pleaded guilty June 4, 2018, before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of forcibly assaulting, impeding, intimidating, and interfering with Victim One and Victim Two while they were engaged in their duties as CBP officers. All three defendants were originally arrested and charged by complaint in September 2017.
According to documents filed in this case and statements made in court:
Catota, Perez, and Papagni were employed as CBP officers at Newark Liberty International Airport and were assigned to the Passenger Enforcement Rover Team (PERT). PERT was a CBP specialized unit that identified and intercepted passengers attempting to bring contraband into the United States or who might be associated with terrorist activities. PERT maintained an office on the second floor of Terminal C at Newark Liberty International Airport.
Victim One was assigned to PERT in October 2016. Within the first two weeks that Victim One worked in PERT, Papagni allegedly advised Victim One that the PERT office table was known as the “rape table” and threatened the victim that he would get him on it.
On Jan. 10, 2017, an individual identified in court documents as “CBPO 2” shut off the lights in the PERT office. Papagni, Catota, and another officer identified as “CBPO 3” grabbed Victim One’s arms and legs and threw him on top of the PERT office table. While Papagni, Catota, and CBPO 3 held him down, Perez got on top of Victim One’s mid-section and grinded his body up and down against Victim One’s genitals through the victim’s clothing in a motion simulating a sex act. Victim One unsuccessfully attempted to push Perez off his body. When Perez got off of Victim One, Papagni, Catota, and CBPO 3 released him.
On Nov. 30, 2016, Victim Two, who was assigned to the Port Director staff, went to the PERT office to speak to CBPO 1. A few minutes later, an officer identified as “CBPO 4” locked one of the doors to the office. Catota, Papagni, and Perez then grabbed Victim Two and threw him on his side on the PERT office table. Perez then allegedly simulated a sex act on Victim 2’s leg. Victim Two struggled to get free until Catota, Papagni, and Perez eventually released him.
At his plea hearing, Catota admitted that he and other CBP officers referred to the tables in the PERT office as the “rape table.” Catota also admitted helping grab Victim One and Victim Two, throwing them on the tables, and holding them down while they were attacked. In addition, Catota also admitted that he and other CBP officers discussed the assaults on the Whatsapp chat message service. For instance, on Dec. 7, 2016, Catota stated that another CBP officer had “walked out on the rape” when referring to the assault of Victim Two.
The charges against Perez, Papagni, and Catota each carry a maximum potential penalty of eight years in prison and a $250,000 fine.The charges and allegations against Perez and Papagni are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Office of Inspector General, New York Resident Office, under the direction of Special Agent in Charge Mark Tasky and U.S. Customs and Border Protection, Office of Professional Responsibility, New York Resident Office, under the direction of Special Agent in Charge Vance Kuhner, with the investigation leading to the indictment and guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division, and Rahul Agarwal, Deputy Chief of the Criminal Division in Newark.
Catota: Alan Zegas Esq., Chatham, New Jersey
Papagni: Chad Seigel Esq., New York
Perez: Lorraine Gauli-Rufo, Verona, New JerseyTwin Cities Construction Company Owner Pleads Guilty for Defrauding Investors Out of More Than $1 MillionRead the Press Release
United States Attorney Gregory G. Brooker announced the guilty plea of JESSE WELLS HAUG, 33, to one count of wire fraud. HAUG, who was charged in a superseding indictment on June 22, 2017, pleaded guilty yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, HAUG is the owner of a Twin Cities-based construction company called 7-10 Services, LLC. From 2015 through the end of 2016, HAUG executed a scheme to defraud investors by falsely representing to them that he would use their money to purchase and renovate residential real estate, and, in exchange, he would share the profits when the properties were re-sold, or “flipped.”
According to the defendant’s guilty plea and documents filed in court, during the course of the scheme, HAUG obtained $880,000 from two victim-investors to purchase and renovate residential properties located throughout the Twin Cities. During the course of HAUG’S interactions with the victim-investors, HAUG false documentation showing how the investment money was being used, false information about upcoming real estate closings and re-sales of properties HAUG claimed to have flipped, as well as fictional documents showing “returns” from the so-called investment properties. In reality, HAUG spent the investment money on personal expenses and never purchased or sold any of the properties.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorneys Kimberly A. Svendsen and Charles J. Kovats are prosecuting this case.
Defendant Information:
JESSE WELLS HAUG, 33
Rosemount, Minn.
Convicted:
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Springfield Woman, Nixa Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., woman and a Nixa, Mo., man were sentenced in federal court today for their roles in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Melody W. Carpenter, 35, of Springfield, and Anthony A. Hatfield, 34, of Nixa, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Carpenter and Hatfield were each sentenced to 10 years in federal prison without parole.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The leaders of the drug-trafficking conspiracy were Kenneth R. Friend, 47, of Springfield, and Kenna Harmon, 39, of Republic, Mo., who obtained pound amounts of methamphetamine from sources in Kansas City, St. Louis, and Oklahoma for distribution in the Springfield area. The investigation resulted in the indictment of 29 co-defendants. In total, the Friend/Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.
Both Carpenter and Hatfield pleaded guilty to participating in the conspiracy to distribute methamphetamine. Carpenter and Hatfield admitted they purchased methamphetamine from Friend and Harmon, which they distributed to others.
On Nov. 3, 2014, officers intercepted communications between Friend and Carpenter in which Carpenter appeared to be brokering a large methamphetamine transaction for Friend. Officers followed Friend and Carpenter to a residence in Springfield, then followed Friend and Carpenter back to Friend's residence. A short time later, Carpenter left Friend's house, and was detained by DEA agents. Agents seized approximately four to six ounces of methamphetamine from Carpenter and a loaded Davies Industries .380-caliber semi-automatic pistol. Carpenter told investigators she had just brokered a two-pound methamphetamine transaction between Friend and another conspirator.
During the course of the wiretaps in this case, hundreds of communications were intercepted between Carpenter and others where she was arranging methamphetamine transactions or financial transactions involving the payment for methamphetamine. During the conspiracy, Carpenter received ounce amounts of methamphetamine at least once per week and redistributed them in the Springfield area.
On Nov. 17, 2014, the DEA intercepted calls between Friend and Hatfield indicating that Hatfield was arranging to purchase a half pound of methamphetamine from Friend. Officers saw Friend and Hatfield meet at Bass Pro Shops in Springfield. They arrived in separate vehicles and Hatfield was seen getting into the vehicle with Friend. After Hatfield got out and drove off in his own vehicle, he was stopped by Springfield police officers. Officers found a half pound of methamphetamine (approximately 225 grams) under his driver's seat.
During another intercepted telephone call, Harmon and Hatfield discussed Harmon’s child finding a Crown Royal bag that contained approximately one pound of methamphetamine inside of it, which Hatfield had left in the child’s bedroom. At one point during the conversation, Harmon put her child on the phone to talk with Hatfield. Harmon and Hatfield agreed to meet at the Wal-Mart parking lot in Republic so that Hatfield could receive some of the methamphetamine back. Hatfield stated he would buy presents for Harmon’s children to make up for what happened. Harmon said she would bring the children along with her to the Wal-Mart parking lot to meet Hatfield so he could give them the presents.
Friend pleaded guilty on April 11, 2018, and awaits sentencing. Harmon pleaded guilty and was sentenced on May 29, 2018, to 21 years and six months in federal prison without parole.
Harmon’s husband, Daniel Harmon, was also a leader of the drug-trafficking conspiracy. In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine.
Carpenter and Hatfield are among 21 co-defendants who have been sentenced in this case. The remaining eight defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Springfield Man Pleads Guilty to Illegally Possessing Firearms and AmmunitionRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to being a felon in possession of firearms and ammunition.
Hector Navarro, 29, pleaded guilty two counts of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 6, 2018.
In September 2016, Navarro possessed a Mossberg, model 500, 12 gauge shotgun, and in October 2016, he possessed a Stoeger, model Cougar 8000, 9mm pistol; an Irwindale Arms Inc., model Automag III, .30 caliber pistol; a Coast to Coast, model CC660, 12 gauge shotgun; 12 rounds of 9mm ammunition; one round of .380 ammunition; and three rounds of .30 caliber ammunition.
Due to a prior conviction of a crime punishable by imprisonment for more than one year, Navarro is prohibited from possessing firearms.
The charge provides for a sentence of no greater than 10 years in prison, at least one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
South Carolina Man Pleads Guilty to Forced Labor for Compelling Man with Intellectual Disability to Work at RestaurantRead the Press Release
The defendant used violence, threats, isolation, and intimidation to compel victim to work seven days a week without pay at restaurant
Defendant Bobby Paul Edwards, 53, of Conway, South Carolina, pleaded guilty Monday in United States District Court for the District of South Carolina to one count of forced labor, admitting that he used violence, threats, isolation and intimidation to compel a man with an intellectual disability to work for over 100 hours a week without pay, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and United States Attorney Sherri A. Lydon of the District of South Carolina.
According to court documents, between 2009 and 2014, Edwards managed a restaurant in Conway, South Carolina, where the victim, identified in court documents as “JCS,” had worked since he was 12 years old. Once Edwards began managing the restaurant in 2009, he increased JCS’s duties, requiring him to work more than 100 hours per week. The defendant stopped paying JCS and began using violence, threats, isolation, and intimidation to compel victim JCS’s continued service. According to court documents and Edward’s admissions, he subjected JCS to abusive language, racial epithets, threats, and acts of violence that included beating JCS with a belt, punching JCS with his fists, hitting JCS with pots and pans, and burning JCS’s bare neck with hot tongs, in order to compel JCS to work faster or to punish JCS for mistakes.
The defendant compelled JCS to continue working under these conditions until October 2014, when authorities removed victim JCS from the premises after receiving complaints about the abuse.
“Human trafficking through forced labor can happen on farms, in homes, and as today’s case shows – in public places, such as restaurants,” said Acting Assistant Attorney General John Gore. “Edwards abused an African-American man with intellectual disabilities by coercing him to work long hours in a restaurant without pay. Combatting human trafficking by forced labor is one of the highest priorities of this Justice Department and today’s guilty plea reflects our commitment to seeking justice on behalf of victims of human trafficking.”
“This defendant abused a vulnerable victim, and today’s guilty plea holds the defendant responsible for his criminal acts,” said U.S. Attorney Sherri Lydon for the District of South Carolina.
Edwards faces a maximum of 20 years in prison for forced labor, a $250,000 maximum fine, and mandatory restitution to the victim. A sentencing date has not yet been scheduled. According to the terms of the plea agreement, the defendant will also be required to pay restitution to victim JCS in an amount to be determined at the time of sentencing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Special Litigation Counsel Jared Fishman, Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Alyssa Leigh Richardson of the District of South Carolina.
Saratoga Resident Convicted of Tax FraudRead the Press Release
SAN JOSE – A federal jury returned a verdict yesterday against Jyh-Chau “Henry” Horng, finding him guilty of two counts of filing false tax returns and one count of lying to the IRS during a 2010 audit, announced Acting United States Attorney Alex G. Tse and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. Horng’s wife, Meili “Ally” Lin, was also tried with respect to two counts of tax fraud; the jury failed to reach a verdict with respect to one count and acquitted Lin of the second count. The verdicts were delivered by the jury after a four-week trial before the Honorable Beth Labson Freeman, U.S District Judge.
Horng, 51, owned and operated an international trading business from his Saratoga home. The evidence at trial showed that Horng filed joint tax returns for 2006 and 2007 that underreported the couple’s income. In the 2006 tax return, Horng reported the couple’s income was only $232,116. In the 2007 tax return, Horng reported that the couple suffered a loss in the amount of $212,217. In addition, while the couple was under audit, Horng told an IRS auditor that the information in their loan applications were lies made up by their loan brokers and that the couple had no foreign bank accounts. The evidence demonstrated the reported income figures and Horng’s statements to the auditor were demonstrably false. During the same 2006-2007 period, the defendants purchased millions of dollars of real estate, reported on numerous loan applications annual income of over $1 million, invested over $5 million into a Milpitas shopping center, and spent over $350,000 using credit cards.
On January 28, 2015, a federal grand jury in San Jose indicted Lin and Horng on two counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1). Horng was also charged with one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2), and two counts of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. Lin also was charged with one count of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. The 18 U.S.C. § 1014 charges were severed prior to trial and will be tried in the future. The jury convicted Horng of all three charges at issue in the trial. Lin was acquitted of fraudulently filing the 2007 tax return, and the jury could not reach a verdict with respect to the 2006 tax return.
Horng is free on bail, pending sentencing. Judge Freeman has not yet scheduled his sentencing hearing. Horng faces a statutory maximum sentence of three years in prison for each false tax return and up to an additional five years in prison for lying to the IRS auditor. In addition to the prison terms, the court also may order Horng to serve an additional period of supervised release and to pay restitution and monetary penalties. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Christopher Magnani are prosecuting the case with the assistance of Jonathan Deville. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Santan Man Sentenced to Prison for Lying to the Grand JuryRead the Press Release
PHOENIX – Yesterday, Alvaro Sabori, 43, of Santan, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Diane J. Humetewa to 18 months in prison. Sabori had previously pleaded guilty to false declaration to the grand jury.
On Oct. 23, 2016, a man was found dead on the side of the road in Sacaton, Ariz., from an apparent gunshot wound to the head. Based on information from a witness, Sabori was subpoenaed to testify before a federal grand jury regarding the investigation into this killing. Sabori lied to the grand jury about the shooting, which had occurred at his home earlier in the evening. One year later, Enrique Bandin was sentenced to 15 years in prison for the killing of that victim at Sabori’s home.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1482-PHX-DJH
RELEASE NUMBER: 2018-076_Sabori
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Recruiter Charged with Receiving Illegal Kickbacks from Local PharmacyRead the Press Release
HOUSTON – A 45-year-old Houston resident has been charged with conspiring to violate the federal anti-kickback statute and receiving at least $320,000 in illegal kickback payments from a local Houston pharmacy, announced U.S. Attorney Ryan K. Patrick.
Dontrey Lamon Eason turned himself in to law enforcement agents yesterday. He is expected to make his initial appearance before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m. today.
The criminal information, filed today, alleges Eason and another individual entered into an agreement with Piney Point Pharmacy to receive $5,000 along with 40% of the payments the pharmacy received from the Federal Employees Compensation Act health care benefits program (FECA). Eason allegedly solicited a physician in Corpus Christi to send prescriptions to the pharmacy. Eason also had access to patient and pharmacy records to check the status of referrals, according to the complaint.
Eason allegedly received $320,608 from Piney Point Pharmacy who billed the FECA program $2,082,996 for referred prescriptions.
Conspiracy to pay kickbacks carries a possible sentence of five years as well as a possible $250,000 maximum fine.
Piney Point Pharmacy was charged in January 2018 with numerous violations of federal law, including conspiracy, health care fraud, wire fraud and money laundering. Trial is set for Oct. 15, 2018.
This case was the result of a joint investigation with the U.S. Postal Service – Office of Inspector General (OIG), Department of Labor - OIG, Department of Veterans Affairs – OIG and Department of Homeland Security – OIG. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Rapid City Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Joseph Blue Bird, age 31, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 4, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Blue Bird was convicted of Abusive Sexual Contact in February 2014. As a result of this conviction, he is required to register as a sex offender. It is alleged that between December 10, 2017, and February 13, 2018, Blue Bird, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Polk County Woman Sentenced for Obtaining U.S. Citizenship by Fraud and False StatementsRead the Press Release
Tampa, Florida – United States District Judge Virginia M. Hernandez Covington today sentenced Enite Alindor (55), also known as Odette Dureland, to five months in federal prison for making false statements in a matter relating to naturalization and citizenship and for procuring naturalization as a United States citizen. As part of her sentence, the court also entered an order de-naturalizing her, thus revoking her July 2012naturalization as a United States citizen. A federal jury had found her guilty on March 1, 2018.
According to court documents, Alindor, a citizen of Haiti, applied for asylum with the Immigration and Naturalization Service (INS) in Miami in 1997. After the INS denied that application, the United States Immigration Court ordered her to be removed from the United States. Shortly thereafter, Alindor presented herself to the INS as Odettte Dureland and filed for asylum protection under that new identity. She concealed the fact that she had previously applied for status in the United States as Enite Alindor, and she concealed the fact that she was under a final order for removal from the United States. U.S. Citizenship and Immigration Services (USCIS) personnel, unaware of the Alindor identity and order of removal, approved Dureland for citizenship in July 2012, and she was naturalized as a U.S. citizen under that name in July 2012.
“Citizenship is the greatest immigration benefit our country can bestow,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI and our partners, like USCIS, will continue working together to protect the integrity of our legal immigration system and the opportunities it provides.”
“This is a perfect example of federal agencies working together to combat those trying to defraud the American people,” stated U.S. Citizenship and Immigration Services Tampa District Director, Michael Borgen. “USCIS will continue playing a key role to safeguard the integrity of our immigration system.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the USCIS Fraud Detection and National Security group in Tampa, and the USCIS Asylum Office in Miami. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Payroll Business Owner Pleads Guilty to Defrauding Ohio Bureau of Workers' CompensationRead the Press Release
COLUMBUS, Ohio – John R. Cacaro, 58, of West Chester, Ohio, pleaded guilty to wire fraud and money laundering as part of a scheme to defraud the Ohio Bureau of Workers’ Compensation for his own personal gain.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, and Jim Wernecke, Director, Ohio Bureau of Workers’ Compensation special investigations department, announced the guilty plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, between 2011 and 2013, Cacaro owned Employers Choice Plus, LLC, a company classified by the Ohio BWC as a Professional Employment Organization (PEO). A PEO is generally responsible for processing payroll and remitting insurance premium payments to the Ohio BWC on behalf of their client employers.
Specifically, on a weekly basis, more than 100 client companies would provide Cacaro’s company with payroll information. Employers Choice Plus then computed the amounts owed to employees, taxing authorities and the Ohio BWC. Employers Choice Plus sent weekly invoices to the client companies, who would then pay Employers Choice Plus electronically for Employers Choice Plus to pay the payroll, taxes and workers’ compensation. Cacaro’s company issued the employees’ paychecks, paid the taxing authorities and maintained the workers’ compensation premiums until they were due to be paid semi-annually.
On a semi-annual basis, Cacaro electronically reported to the Ohio BWC the payroll paid by each of his client employers, as well as the amount of workers' compensation premiums due based on the payroll.
Cacaro understated the payroll by millions of dollars, though, which resulted in a lesser amount of premiums owed to the Ohio BWC, despite having collected the correct amounts from its client employers. In total, Cacaro underreported more than $425,000 in workers’ compensation premiums.
Cacaro used the profits of scheme to fund lavish personal purchases, including a second residence in Naples, Fla. and a motor home.
As part of his plea agreement, he has agreed to pay the total amount of $425,246.58 in restitution.
“John Cacaro lined his pockets with the hard-earned money of his clients and systematically defrauded the Ohio BWC,” said Special Agent in Charge Korner. “Now he is a convicted felon and must repay the stolen money.”
“Anyone who cheats BWC to enrich themselves is driving up the cost of the whole system, and that hurts all of us,” said Director Wernecke. “It hurts employers who follow the law and play by the rules, and it hurts the injured workers who rely on us to help them get back to work and back to their lives as soon as safely possible.”
Wire fraud is a federal crime punishable by up to 20 years in prison and money laundering is punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation and the Ohio Bureau of Workers’ Compensation, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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Orono Business Man Pleads Guilty to Multi-Million Dollar Tax Fraud SchemeRead the Press Release
United States Attorney Gregory G. Brooker announced the guilty plea of SCOTT PHILLIP FLYNN, 55, to one count of conspiracy to defraud the United States and one count of filing a false tax return. FLYNN, who was initially charged on December 21, 2016, pleaded guilty yesterday before Senior U.S. District Judge Ann D. Montgomery in Minneapolis, Minnesota.
“Scott Flynn devised a complex fraud scheme by creating a labyrinth of business entities and layers of obfuscation to hide tens of millions of dollars from the IRS,” said Assistant U.S. Attorney David Maclaughlin. “Flynn generated his income using an alias name while hiding behind randomly-named Nevada-based companies titled in the name of his father. Flynn then sent the income he earned in this way to Australia to be held by nominees, and then repatriated the money indirectly, sometimes through Costa Rica. Flynn acknowledged at his plea hearing that he took these steps to defraud the Internal Revenue Service. Flynn’s scheme was animated by his desire to live a luxurious lifestyle unencumbered by income tax liabilities, a desire fulfilled by his purchase of a $2.7 million mansion in Orono with untaxed income repatriated through Costa Rica.”
“Conspiring with others to defraud the government with an elaborate stock scheme to underreport taxable income is unlawful and is also unfair to every taxpayer who obeys the law and pays their fair share,” stated Acting Special Agent in Charge Gabriel Grchan, St. Paul Field Office IRS Criminal Investigation. “Mr. Flynn's plea today serves as an important reminder that IRS-CI is committed to bringing to justice those who evade their income tax responsibilities.”
According to the defendant’s guilty plea and documents filed in court, between 2005 and 2015, FLYNN evaded the assessment of millions of dollars in income taxes by fraudulently hiding millions of shares of stock that he obtained for himself, his father, and entities they controlled (collectively, the “Flynn Group”). In 2006 and 2008, FLYNN assisted two privately-held Wisconsin-based companies, Tower Tech Systems, Inc. and Advanced Fiberglass Technologies, in becoming publicly traded through stock-for-stock “reverse merger” transactions. As compensation for FLYNN’S work, millions of shares of publicly-traded stock in the resulting public companies were transferred to “Integritas, Inc.” and “Diversified Equities Partners,” both of which were part of the Flynn Group. FLYNN, who exercised control over the stock, which had considerable value, was required to, but did not, report the receipt of the shares of stock as income on his individual income tax returns, or on the tax returns of members of the Flynn Group.
According to the defendant’s guilty plea and documents filed in court, in order to conceal his control and ownership of the stock, and to evade paying income taxes, FLYNN caused a portion of the stock to be put in the names of Australian nominees recruited by FLYNN’S co-conspirator, Steven Miotti. The Australian nominees, who never actually owned or controlled the stock, were directed to open brokerage accounts in the United States to receive the shares, but FLYNN possessed their login and password data so he could maintain control of the accounts and the shares of stock.
According to the defendant’s guilty plea and documents filed in court, during the course of the conspiracy, when FLYNN needed money, he caused the Australian nominees to sell shares of stock and transfer the proceeds to entities in the United States controlled by FLYNN, which in turn made payments to FLYNN or on his behalf. These sales generated millions of dollars in capital gains income, which FLYNN purposely failed to report to the IRS. For example, in 2007, FLYNN received approximately $2.7 million of the proceeds from the Australian nominees to buy a house in Orono, Minnesota, which was considered income to FLYNN. That year, in a tax return FLYNN acknowledged was materially false at his guilty plea hearing, FLYNN reported only $26,136 of total income. Throughout the course of the scheme, FLYNN concealed tens of millions of dollars in income and capital gains from the IRS and intentionally evaded the assessment of at least $3.5 million in income taxes.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant United States Attorneys David J. Maclaughlin and Benjamin F. Langner are prosecuting this case.
Defendant Information:
SCOTT PHILLIP FLYNN, 55
Orono, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- False tax return, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Opioid Prescription Conspiracy Leader Pleads GuiltyRead the Press Release
PROVIDENCE, RI – A Providence man who led a conspiracy to create fraudulent prescriptions for opioid pills using stolen medical practitioner identification numbers and identities, and, at times, unlawfully paying for the prescriptions with the use of medical insurance, has pleaded guilty in U.S. District Court in Providence to conspiracy to distribute and possess with the intent to distribute Oxycodone, and aggravated identity theft.
Robert Rose, 52, the acknowledged leader of the conspiracy, is the fourth person to plead guilty for their role in the conspiracy, announced United States Attorney Stephen G. Dambruch and Jeffrey Ebersole Resident Agent in Charge of the United States Food and Drug Administration Office of Criminal Investigations.
A fifth defendant charged in this matter is awaiting trial in U.S. District Court.
According to court documents, it was the intent of the conspiracy to manufacture fraudulent prescriptions utilizing the identities and Drug Enforcement Administration (DEA) identification numbers and signatures of medical practitioners without their consent. Prescriptions for varying amounts of Oxycodone pills were written and presented to pharmacies by some members of the conspiracy and others working at the direction of the conspirators. The scheme often times included the fraudulent use of medical insurance to pay pharmacies for the illicit prescriptions. Most of the Oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
At the time of his guilty plea, Robert Rose admitted to the Court that as the leader of the conspiracy, he paid for individuals’ identities, health care insurance information, and for various prescribing medical practitioners’ names and DEA numbers. Rose provided that information to others who participated in the conspiracy, along with special paper necessary to produce the fraudulent prescriptions.
Rose admitted to running the conspiracy for several months while incarcerated at the Adult Correctional Institution on an unrelated matter.
Robert Rose is scheduled to be sentenced by United States District Court Chief Judge William E. Smith on October 5, 2018. Conspiracy to distribute and possess with the intent to distribute oxycodone is punishable by statutory penalties of up to 20 years imprisonment, 3 years supervised release and a fine of up to $1,000,000. Aggravated identity theft is punishable by a statutory penalty of a mandatory sentence of 2 years imprisonment consecutive to any other sentence imposed in this matter.
Three other members of the conspiracy previously pleaded guilty in this matter and are awaiting sentencing:
- Michael Slonski, 48, of Johnston, pleaded guilty on April 2, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone. He is scheduled to be sentenced on August 3, 2018.
- David Rose, 59, of Providence, pleaded guilty on March 7, 2018, to possession with intent to distribute Oxycodone. He is scheduled to be sentenced on August 10, 2018.
- Victoria Rose-Coccia, 29, of Pawtucket, pleaded guilty on February 28, 2018, to conspiracy to distribute and possess with the intent to distribute Oxycodone. She is scheduled to be sentenced on June 22, 2018.
A fifth individual charged in this matter, Tammy Bonham, 53, of Providence, is awaiting trial on a charge of conspiracy to acquire or obtain possession of a controlled substance by misrepresentation, fraud, forgery, or subterfuge; misbranding drugs.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
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Opinion: The Sessions assault on the opioid epidemicRead the Press Release
In less than 18 months on the job, U.S. Attorney General Jeff Sessions has made significant progress in reducing crime and improving morale among federal, state and local law enforcement.
The attorney general faced enormous challenges from his first day in office. According to the Centers for Disease Control and Prevention (CDC), in 2016, more than 64,000 Americans died from drug overdoses.
This is roughly equal to the total number of U.S. troops killed during the Vietnam War. Of these fatal overdose deaths in 2016, approximately 42,000, or two-thirds, were caused by opiates, including heroin, and synthetic opioids, mainly OxyContin and fentanyl.
Violent crime also rose dramatically between 2014 and 2016. According to FBI statistics, the national violent crime rate increased by nearly 7 percent. The national murder rate went up by 20 percent, which was the largest increase in almost 50 years. This same time period also saw substantial increases in the rates of assault and rape.Correctly recognizing that these were unacceptable national trends, the new attorney general took immediate steps to equip the prosecutors and agents of the U.S. Department of Justice (DOJ), including the 94 U.S. Attorney’s Offices.
He quickly rescinded the so-called “Holder Memorandum,” the governing policy of the previous attorney general, which, among other things, had limited federal prosecutors’ ability to seek lengthy mandatory-minimum prison sentences for drug dealers and violent offenders.
In addition to demoralizing many dedicated career federal prosecutors and agents engaged in narcotics and gang work, the Holder Memorandum and its restrictions on charging serious offenses and mandatory minimums had taken away one of the most effective tools to encourage offenders to cooperate and, in turn, help dismantle major drug-trafficking organizations and violent gangs.
Under the new “Sessions Memorandum,” federal prosecutors are empowered to bring the most serious charges warranted by the crime.
The attorney general also announced new prosecution priorities, shifting DOJ’s focus to (1) combatting the opioid epidemic; (2) reducing violent crime; (3) aggressively addressing illegal immigration; and (4) protecting national security.
Literally putting his money where his mouth is, the attorney general then successfully secured $72 million in additional funding for 311 new assistant U.S. attorney positions across the country. This is the largest and most significant DOJ hiring initiative in a generation.
The attorney general also revamped and relaunched Project Safe Neighborhoods (PSN), a gang and gun violence-reduction program focused on collaboration between federal, state and local law enforcement. Although data for 2017 will not be available until later this year, it is likely we will see a reduction in violent crime for the first time in several years.
As the newly appointed U.S. attorney for the Western District of Virginia, I embrace the attorney general’s new priorities and his back-to-basics approach to fighting crime. The opioid epidemic is raging across our district.
As the Roanoke Times recently reported, the Roanoke Valley suffered more than 80 fatal opioid overdose deaths in 2017. The greater-Winchester area saw 40 fatal opioid overdoses. According to CDC data, in 2016, Martinsville led the nation in the number of opiate prescriptions per person.
Violent crime also increased dramatically in our district between 2014 and 2016. The homicide rate in Roanoke increased 500 percent, and Danville saw a 400 percent increase. These increases, and the increases in drug trafficking and other violent crimes, is partially attributable to organized gang activity in these communities.
We are taking a number of steps to address the opioid epidemic and violent crime in the Western District. On the opioid front, my office is committed to investigating and prosecuting health-care professionals who push these dangerous drugs for profit.
We are also working with our state and local partners to investigate overdose deaths as potential homicides, and hold dealers accountable under severe mandatory minimum periods of incarceration. Our drug prosecutors are committed to interdicting and disrupting the supply of these deadly drugs, including fentanyl and heroin, into our district.
In 2017, a federally-funded drug task force based in the Western District seized over two kilograms of fentanyl, or the equivalent of approximately a million doses of heroin. This was likely the largest fentanyl seizure in Virginia last year.
With respect to violent crime, the U.S. Attorney’s Office is collaborating with our state and local partners to identify the drivers of violent crime and target them for prosecution. Working with our FBI-led violent crime task forces, we are focusing on gang activity in our urban areas and hope to reverse the cycle of violence that has plagued these communities for far too long.
The U.S. Attorney’s Office is also prosecuting more cases involving the illegal possession and use of firearms and sending offenders to federal prison.
As U.S. attorney, I spend a significant portion of my time traveling around our large district to meet with local sheriffs, chiefs of police, state law-enforcement officials and commonwealth attorneys. Without exception, the message I have heard from my local counterparts is that they are grateful for and excited to have an attorney general who understands the scourge of the opioid epidemic and gun-related violence, and who is fully committed to addressing these problems.
We have a long and difficult path ahead, but, together — and with the unwavering support of an attorney general who is committed to the rule of law — we are well-positioned to make an impact.
• Thomas T. Cullen is U.S. Attorney, Western District of Virginia.
On 500th Day of Trump Administration, Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
Largest Increase in Decades Allocates Prosecutors to Focus on Violent Crime, Civil Enforcement and Immigration Crimes.
West Michigan receives four positions-- an increase of over 10% from its current staffing level.GRAND RAPIDS, MICHIGAN – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the Western District of Michigan Andrew Birge announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant U.S. Attorneys (AUSAs) to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."
Attorney General Sessions allocated four new AUSA positions to the Western District of Michigan, which marks an increase of over ten percent of its current allocation of attorney positions. Two of the positions will focus on violent crime, specifically the Project Safe Neighborhoods initiative. Under that initiative, the office partners with federal, state and local law enforcement to bring down violent crime rates, principally by prosecuting the individuals and groups who drive those rates. The third position will be dedicated to affirmative civil enforcement, which includes actions to address health care fraud and other forms of federal program fraud as well as the diversion of drugs from the regulatory stream by health care professionals. The fourth position will focus on prosecuting immigration crimes, including fraudulent identification document production and worksite enforcement.
U.S. Attorney Birge commented that he is pleased his office received positions to address each of the Department’s three priorities for this roll out. "I look forward to getting these individuals in place to make a positive impact on West Michigan."
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Oklahoma man admits to sex offender registry violationRead the Press Release
CLARKSBURG, WEST VIRGINIA –Marvin Gene McLaughlin, of Enid, Oklahoma, has admitted to a sex offender registry violation, United States Attorney Bill Powell announced.
McLaughlin, age 58, pled guilty to one count of “Failure to Update Sex Offender Registration.” McLaughlin, a person required to register under the Sex Offender Registration and Notification Act, admitted to traveling from Oklahoma to Marion County, West Virginia without updating his sex offender registration in January 2018.
McLaughlin faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Ohio County Magistrate indicted on wire fraud, bribery, and tax fraud chargesRead the Press Release
WHEELING, WEST VIRGINIA – Ohio County Magistrate Harry A. Radcliffe, III, was indicted today by a federal grand jury on charges involving wire fraud, bribery, and tax fraud, United States Attorney Bill Powell announced.
Radcliffe, age 60, was indicted on one count of “Conspiracy to Commit Wire Fraud, Federal Program Bribery, and Travel Act Bribery,” three counts of “Wire Fraud,” one count of “Federal Program Bribery,” one count of “Travel Act Bribery,” and three counts of “Filing a False Income Tax Return.”
Radcliffe is accused of soliciting and accepting bribes from W&S Bail Bonding, doing business as A Bail Bonding (ABC) of Wheeling, West Virginia, concealing said bribes from the State of West Virginia and the IRS, directing defendants and their families to ABC without offering other options as required, altering bonds to require a bonding company, and collecting said bribes via credit card and interstate travel He is also accused of failing to report $11,000 in income on both his 2013 and 2014 federal income taxes, and failing to report $4,500 in income on his 2015 federal income taxes. The crimes are alleged to have occurred from January 2012 to April 2016 in the Northern District of West Virginia and elsewhere.
The United States is also seeking a money judgement in the amount of $26,500.
Radcliffe faces up to five years incarceration and a fine of up to $250,000 for the conspiracy count, up to 20 years incarceration and a fine of up to $250,000 for each of the wire fraud counts, up to 10 years incarceration and a fine of up to $250,000 for federal bribery count, up to five years incarceration and a fine of up to $250,000 for the travel act count, and up to three years incarceration and fine of up to $250,000 for each of the false income tax return counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
In addition, William W. Seelbach, owner of ABC, of North Fort Meyers, Florida, was charged in a two-count information today. Seelbach, age 68, is facing one count of “Conspiracy to Defraud the United States—Impede the Internal Revenue Service,” and one count of “Failure to File Individual Income Tax Return for Tax Year 2012.” Seelbach is accused of impeding the IRS in its collection of taxes, and failing to file a federal income tax return for 2012 to report $144,030 in income to the IRS.
Jolynn Gilchrist, former employee of ABC, of Wheeling, West Virginia, was charged in an information today with one count of “False Tax Return.” Gilchrist, age 49, is accused of filing an inaccurate federal tax return for the 2015 tax year.
Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.###
New Jersey Man Sentenced on Federal Conspiracy Charges for Trafficking in Contraband CigarettesRead the Press Release
St. Louis, MO – Mohammed Kayed, aka Mohammed Fayez, was sentenced to 30 months in prison for conspiring to traffic in contraband cigarettes.
According to court documents, Kayed and others conspired for more than two years to buy contraband cigarettes in St. Louis, Missouri, a low tax market, and transport and distribute them in New Jersey, a high tax market. St. Louis residents and co-defendants Mohammed Almuttan, Rami Almuttan, Hisham Mutan, and Daddam Mutan used several convenience stores which they owned or operated to create the appearance of legitimate cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the convenience stores. Kayed was a courier who, after obtaining the cigarettes in St. Louis, delivered them to New Jersey.
Kayed, 22, of Clifton, NJ, pled guilty on March 6, 2018 to one felony count of conspiracy to traffic contraband cigarettes. He appeared today for sentencing in front of U.S. District Judge Ronnie White.
This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, Illinois State Police, Illinois Department of Revenue and Alcohol and Tobacco Tax and Trade Bureau.
New Federal Indictment Charges Former Buncombe County Manager with Wire Fraud, Federal Program Fraud, and Money LaunderingRead the Press Release
ASHEVILLE, N.C. – A 23-count criminal indictment was returned by a federal grand jury sitting in Asheville late Tuesday, charging former Buncombe County Manager Wanda Skillington Greene, 66, of Arden, N.C., with wire fraud, federal program fraud, and money laundering, in connection with a $2.3 million scheme involving the purchase of whole life insurance policies for herself and other county employees using misappropriated County funds, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017. As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board). In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board. As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year.
According to allegations contained in the indictment, beginning in or about April 2015, and continuing until in or about July 2017, Greene defrauded Buncombe County by misappropriating approximately $2.3 million of Buncombe County funds to purchase whole life insurance policies for herself, her son Michael Greene, and eight other County employees, and to purchase an annuity for another county employee who did not qualify for a whole life insurance policy. During the time period relevant to the indictment, Buncombe County received benefits in excess of $10,000 per year under a federal program involving a grant, contract, subsidy, loan, and other forms of federal assistance.
The indictment alleges that in April 2015, Greene began communicating with a Charlotte-based insurance agent about her intent to procure insurance policies for herself and certain other Buncombe County employees at County expense. Shortly after meeting with the insurance agent, Greene falsely began telling selected County employees that she had been working with the Board on a new benefit program for certain employees involving the County’s purchase of life insurance policies for them, at no expense to the employee. Greene allegedly stressed that only certain employees would be receiving this benefit, and told the employees with whom she spoke to keep this program and their participation strictly confidential.
According to the indictment, the policies that Greene was procuring were whole life insurance policies, with a resulting cash value and the ability to borrow against such policies. Furthermore, the indictment alleges that, at Greene’s direction, the County prepaid the initial payment and several years’ worth of annual premiums for each policy agreement, which meant that, upon termination of the policy, a policy owner could receive whatever cash value the policy had, as well as the remaining prepaid premiums. The indictment alleges that in this manner, in the first month after Greene retired from her County employment, she was able to obtain cash out of two such policies, thereby personally obtaining approximately $396,000 of fraudulently-acquired money funded by Buncombe County.
According to allegations in the indictment, Greene selected the employees that would receive the life insurance policies and selected the amounts the County would prepay for each policy. To fund the scheme, Greene did not seek the Board’s authorization to purchase these policies with County funds. Rather, in order to gain access to the County money necessary to fund her scheme, the indictment alleges that Greene inflated the settlement amounts for two federal civil rights lawsuits against the County that the Board agreed to pay. She later fraudulently claimed to the life insurance company, the insurance agent, and to the various County employees that the Board had also approved and enacted funding for the life insurance program she had created when it enacted a budget amendment to settle those lawsuits, when, in fact, the Board never approved, and never even knew about the existence of, Greene’s life insurance scheme.
The indictment further alleges that after the Board approved the requisite budget amendment to fund the settlement of the civil lawsuits, Greene caused a series of interstate wire transactions to make initial lump-sum prepayments, and later quarterly payments, toward the premiums of the various insurance policies. According to the indictment, shortly before she announced her intention to retire, Greene attempted to quadruple the quarterly payments from $40,000 to $160,000. When the County’s Finance Director expressed concern about the increased amount, Greene destroyed the handwritten note she had provided requesting the increase, and told the Finance Director to forget about any more payments.
On May 30, 2017, Greene publicly announced her retirement, which took effect on June 30, 2017. The indictment alleges that, almost immediately upon her retirement, Greene liquidated her two life insurance policies. As a result, on or about July 13, 2017, the insurance company sent Greene two checks totaling $395,859.60, which Greene deposited into her State Employee Credit Union account. Less than a month later, on or about August 7, 2017, Greene used a portion of the proceeds from the insurance checks to wire $155,000 from her State Employees Credit Union account to the account of a law firm in Nashville, Tennessee.
Wanda Greene has been ordered to appear on a summons on the charges. She is charged with 12 counts of wire fraud, each of which carries a maximum penalty of 20 years in prison and a $250,000 fine; eight counts of federal program fraud, each carrying a maximum prison term of 10 years per count and a $250,000 fine; and three counts of money laundering, which carry a maximum penalty of 10 years in prison per count and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
A separate federal indictment was filed in April 2018, against Wanda Greene and her son, Michael Greene, for misusing their government credit cards to make approximately $200,000 worth of improper purchases. Those charges are still pending.
In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
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NEPA Doctor Found Guilty of Drug Distribution Resulting in Death, Money Laundering and Tax ChargesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Dr. Fuhai Li, age 53, of Milford, was found guilty of unlawfully prescribing oxycodone and other opioids to 23 former patients, including a Honesdale woman who died as a result of using the pills. Dr. Li faces a mandatory 20-year prison sentence for causing the woman’s death.
According to United States Attorney David J. Freed, the jury also convicted Dr. Li of unlawfully prescribing oxycodone to a pregnant woman outside the usual course of medical practice and not for a legitimate medical purpose. That woman gave birth to an opioid-dependent baby 11 days after Dr Li prescribed her 120 oxycodone 30 milligram tablets. A neo-natal specialist testified that the baby spent ten days in intensive care withdrawing from the oxycodone prescribed to his mother by Dr Li.
During the five-week trial before Senior U.S. District Court Judge A. Richard Caputo, prosecutors from the U.S. Attorney’s Office presented the testimony of 19 former patients and three former employees of Dr. Li, eight pharmacists, three other physicians, an expert on pain management, the medical records for 39 former patients of Dr Li, and the testimony of federal law enforcement agents and investigators from the Drug Enforcement Administration (DEA) and its Diversion Division, and Internal Revenue Service (IRS) special agents.
Li owned and operated the Neurology and Pain Management Center in Milford, Pike County, Pennsylvania. Li was a physician licensed by the Commonwealth of Pennsylvania and authorized to prescribe Schedule II controlled substances for legitimate medical purposes and in the usual course of professional practice.
The jury found that Dr Li repeatedly prescribed oxycodone and other opioids outside the usual course of medical practice and not for a legitimate medical purpose.
Former patients testified that Dr Li repeatedly prescribed them high doses of oxycodone and other opioids every month over several years without performing medical examinations and without verifying their prior medical treatment.
Evidence was presented that Dr Li repeatedly falsified patient medical records and made material omissions in those records in an effort to legitimize the unlawful prescriptions.
Prosecutors presented evidence that between August 2011 and January 2015, Dr. Li wrote 26,985 prescriptions for Schedule II controlled substances, 99.37% of which were written for opioids. This included 18,115 prescriptions for oxycodone, of which 12,129 were written for oxycodone 30 milligrams, the highest dosage available in short acting oxycodone. Other opioids frequently prescribed by Dr. Li included methadone, OxyContin, hydrocodone and hydromorphone.
Former patients testified that they became dependent and addicted to opioids as a result of Dr. Li’s prescriptions. Evidence also established that Dr. Li prescribed high dose opioids to patients who he knew had recently completed drug rehabilitation and detoxification programs, resulting in those patients becoming addicted again to opioid pain medication.
Several former patients testified that they earned money by selling drugs prescribed for them by Dr. Li and used part of the money to buy heroin to support their own addiction. Some of those former patients also subsequently sold heroin on the streets of Pennsylvania and New Jersey.
One former female patient testified that she had sex with Dr Li on almost every visit to his office during a four-year time period. Dr Li prescribed that patient high doses of various opioids for approximately four years. Two additional former female patients testified to inappropriate sexual conduct by Dr Li during office visits.
The jury also convicted Dr. Li of using two medical offices for the purpose of unlawfully prescribing opioids. Dr. Li’s first medical office was located at 104 Bennett Avenue in Milford, and the second office was located at 200 3rd Street in Milford.
DEA agents and investigators executed search warrants at Dr Li’s Milford office and his residences in Milford and East Stroudsburg on January 29, 2015. Agents seized electronic medical records from Dr Li’s office, and seized more than $1 million in cash, which was hidden under beds and in closets in his residences. Evidence at trial showed that many of Dr Li’s patients paid cash for visits, drug screens, office tests, and injections.
The money laundering convictions related to Dr Li’s use of criminal proceeds to pay off the mortgage on his East Stroudsburg residence on November 19, 2012, and to purchase his 200 3rd Street, Milford office on August 29, 2013. Dr Li had $385,572.05 wired from a bank account funded in part by criminal proceeds to pay off the mortgage on the East Stroudsburg residence. He subsequently withdrew $158,699.30 from a bank account funded in part by criminal proceeds to purchase the Milford office.
Dr Li was also convicted of tax evasion for the tax years 2011, 2012, and 2013. An IRS agent testified that Dr Li underreported his taxable income for those years by more than $800,000.
After the jury’s verdict, prosecutors asked that Dr. Li be immediately detained pending sentencing. Judge Caputo released Dr. Li under conditions, which include electronic monitoring by the U.S. Probation Office. U.S. Attorney Freed intends to appeal the release order.
The jury’s verdict also included the forfeiture to the United States of $1,030,960 in cash that was seized from Dr Li’s two residences; $1,036,079.36 seized from various bank accounts; real property located at 200 3rd Street, Milford (Dr Li’s medical office); and real property located at 4005 Milford Landing Drive, Milford.
“Dr. Li’s criminal conduct and actions were reprehensible, as shown by the jury’s verdict on all of the charges,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “My office will continue to work vigorously with all of our law enforcement partners and the U.S. Attorney’s Office to address the opioid epidemic that is gripping our region and nation at large. The investigation and arrest of rogue registrants who choose to betray their oath and professional obligation is a key part of the DEA’s mission to address this crisis.”
"Fuhai Li’s attempt to evade taxes by hiding income and filing false returns was a theft from the American public,” said IRS-CI Special Agent in Charge Guy Ficco. “Today Fuhai Li has been held accountable for his actions.”
The four-year long investigation in this case was conducted by the Drug Enforcement Administration (DEA) and its Diversion Division, the Internal Revenue Service’s Criminal Investigation Division, and the Pike County District Attorney’s Office. Assistant U.S. Attorneys Michelle Olshefski, Francis P. Sempa, and Evan Gotlob prosecuted the case.
This case was prosecuted as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid trafficking offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime, including violent crime caused by drug trafficking, and to make 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.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. The drug distribution resulting in death charge also carries a mandatory minimum penalty of 20 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mother and Son Charged in Conspiracy Involving Distribution of Fentanyl, Heroin, Cocaine, and MarijuanaRead the Press Release
CAMDEN, N.J. – A mother who was arrested and charged along with her son for their alleged roles in a drug trafficking conspiracy appeared in Camden federal court today for a detention hearing, U.S. Attorney Craig Carpenito announced.
Candace Gottlieb, 59, of Cherry Hill, New Jersey, is charged by complaint with conspiracy to distribute and possess with intent to distribute fentanyl, heroin, cocaine, and marijuana. Following her appearance, she was detained without bail. Her son, Tyler Gottlieb, 27, was arrested in California and is charged by complaint with conspiracy to distribute and possess with intent to distribute fentanyl, heroin, cocaine, and marijuana.
According to documents filed in this case and statements made in court:
Candace Gottlieb and her son were arrested following a federal investigation into trafficking counterfeit prescription opioid pills containing fentanyl and heroin, as well as cocaine and marijuana. In March 2018, federal law enforcement officers seized $67,760 from Tyler Gottlieb as he was about to board a flight to California from Philadelphia International Airport. In the months that followed, the FBI obtained 802 counterfeit prescription pills from Tyler and Candace Gottlieb, 200 of which have been confirmed to contain fentanyl and heroin. The remaining pills are believed to also contain fentanyl and heroin. The FBI also allegedly purchased cocaine in a transaction orchestrated by Tyler Gottlieb, seized approximately 40 pounds of marijuana sent by Tyler Gottlieb to New Jersey through the mail, and obtained samples of cocaine and marijuana from Candace Gottlieb.
On June 1, 2018, federal and local law enforcement executed a search warrant at Tyler and Candace Gottlieb’s New Jersey residence and seized approximately 6,600 additional counterfeit prescription pills suspected of containing fentanyl and heroin, along with cocaine and marijuana packaged for distribution. Investigators also located and seized two handguns from inside the home and approximately $2,000 in cash.
In the early morning hours of June 2, 2018, federal and local law enforcement executed a second search warrant at another residence connected to Tyler Gottlieb. During that search, investigators seized six more firearms, including an AK-47 assault rifle, a shotgun, 1,000 rounds of ammunition, high-capacity ammunition magazines, and two handguns. Investigators also seized marijuana and packaging materials.
Candace Gottlieb was arrested on June 1, 2018, in conjunction with the search of her home and was detained following her arrest. Federal and local law enforcement arrested Tyler Gottlieb in California on June 1, 2018. Tyler Gottlieb is awaiting an appearance in federal court in California with an anticipated appearance to follow in New Jersey on a date yet to be determined.
The drug trafficking conspiracy charges carry a maximum potential penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge John Devito; postal inspectors with the U.S. Postal Inspection Service, under the direction of Daniel Brubaker, Philadelphia Division; the Camden County Sherriff’s Department, under the direction of Gilbert Wilson; the Camden County Police Department, under the direction of Chief J. Scott Thomson; and the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo.
He also thanked the Cherry Hill Police Department, under the direction of William Monaghan, the Pennsauken Police Department, under the direction of John Coffey, and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian Michael.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel: Candace Gottlieb: Christopher O’Malley Esq., Camden
Tyler Gottlieb: Evan Hughes Esq., PhiladelphiaMonongalia County woman sentenced for her role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marjorie Sue Webster, of Maidsville, West Virginia, was sentenced today to 18 months incarceration for her role in distributing oxycodone, United States Attorney Bill Powell announced.
Webster, age 24, pled guilty to “Unlawful Use of Communication Facility” in January 2018. Webster admitted to using a phone to assist others in distributing oxycodone in March 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
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.
Senior U.S. District Judge Irene M. Keeley presided.
Michigan Man Sentenced to Prison for Federal Drug ConvictionRead the Press Release
HUNTINGTON, W.Va. – A Michigan man who was caught with drugs in Huntington in 2017 was sentenced yesterday to 87 months in federal prison, announced United States Attorney Mike Stuart. William Henry Stephens, Jr., 45, of Inkster, previously pled guilty to possession with intent to distribute 100 grams or more of heroin in federal court in Huntington. Stuart commended the work of the Huntington FBI Drug Task Force.
“Stephens was a gun-toting drug dealer peddling a wide variety of dangerous drugs,” said United States Attorney Mike Stuart. “Putting him behind bars is yet another big win for law enforcement and our citizens.”
On June 29, 2017, members of the Huntington FBI Drug Task Force executed a search warrant at 702 Washington Avenue in Huntington. Prior to the search, investigators conducting surveillance observed Stephens coming and going from the residence and conducting what appeared to be drug transactions. During the search, investigators seized approximately 140 grams of heroin, 44 grams of crack, and a firearm. Stephens admitted that he possessed the heroin and crack for distribution. Stephens also admitted that he possessed additional drugs, including heroin and cocaine, along with multiple firearms which seized by investigators during a separate search warrant previously executed on December 15, 2016. As part of his plea agreement, Stephens admitted to all the drug trafficking and firearms activity charged in the indictment.
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 brought 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.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mexican National Pleads Guilty to Immigration CrimeRead the Press Release
Defendant has two prior felony convictions and three prior deportations
HUNTINGTON, W.Va. – A Mexican national man pled guilty yesterday to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Eduardo Martinez-Campeano, 47, faces up to ten years of incarceration, a $250,000 fine, three years of supervised release, and a $100 special assessment when he is sentenced on September 4, 2018. Martinez-Campeano is also subject to deportation proceedings at the conclusion of any sentence imposed. U.S. Attorney Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement.
“Two prior felony convictions. Three prior deportations.” said United States Attorney Mike Stuart. “This is exactly why we need the wall – to stop repeat violators and those refusing to comply with our immigration system.”
On April 10, 2018, Martinez-Campeano was traced to a hotel in Huntington, West Virginia by members of ICE after receiving a tip that defendant was in the country illegally and working at a restaurant in Barboursville, West Virginia. ICE agents approached Martinez-Campeano and he surrendered to them. Agents promptly confirmed that Martinez-Campeano was not in the United States legally, and took him into federal custody.
Martinez-Campeano fingerprints matched him to a 2007 Missouri felony Forgery conviction. After his felony sentence in Missouri was discharged, Martinez-Campeano was deported from the United States. Martinez-Campeano reentered the United States and was removed from the United States for a second time in 2010. Sometime afterword, Martinez-Campeano reentered the United States and was captured in Texas. He was convicted of the federal criminal offense of Reentry of a Removed Alien in 2012. Once again, defendant Martinez-Campeano was deported from the United States. Martinez-Campeano illegally reentered the United States for a fourth time prior to his capture in 2018. Martinez-Campeano admitted to ICE agents that he was a Mexican citizen subject to deportation proceedings.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
Follow us on Twitter: SDWVNews and USAttyStuart
###Mexican National Indicted for Immigration Document Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence today returned a five-count indictment charging a Mexican national with immigration document fraud and aggravated identity theft.
The indictment charges Eufemio Aguilar, 50, of Providence with four counts of knowingly forging, counterfeiting, altering and falsely making and possessing a Lawful Permanent Residence Card and social security card, and one count of aggravated identity theft.
The return of the grand jury indictment is announced by United States Attorney Stephen G. Dambruch, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, Providence Police Chief Colonel Hugh T. Clements, Jr., Central Falls Police Chief Colonel James J. Mendonca and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents and information presented to the Court at the time of Aguilar’s arrest and detention on May 22, 2018, it is alleged that since at least August 2017, Aguilar has been creating and selling fraudulent federal government documents, such as fraudulent lawful resident cards and social security cards. It is alleged that he created and sold the documents from his Providence residence.
On at least three occasions Homeland Security Investigations agents and Providence Police detectives arranged for the creation and delivery of fraudulent immigration documents and/or social security cards from Aguilar for $100 dollars each.
On May 22, 2018, Homeland Security Investigations agents and Providence Police, with the assistance of Central Falls and Warwick Police, executed a federal court-authorized search warrant at Aguilar’s residence and seized, among other items, five laptop computers, two document producing machines and supplies used in the manufacture of government documents, several fraudulent government documents and $27,000 in cash.
The case is being prosecuted by Assistant U.S. Attorneys Richard W. Rose and John P. McAdams.
An arraignment date has not yet been scheduled. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Media Advisory: Press Conference to Announce SAFE Initiative in WaterlooRead the Press Release
CEDAR RAPIDS, IA – There will be a press conference held on Thursday, June 7, 2018, at 12:00 p.m. in the Harold E. Getty Council Chambers located at 715 Mulberry St., in Waterloo, Iowa. United States Attorney Peter E. Deegan, Jr., Waterloo Police Chief Daniel Trelka, representatives from federal and local law enforcement, and community members will be present at the press conference. The purpose of the press conference is to announce the Safer Areas For Everyone (SAFE) initiative, a new initiative involving law enforcement and the Waterloo community to enhance efforts to combat violent crime.
Other participants in SAFE are the Bureau of Alcohol, Tobacco, and Firearms, the Federal Bureau of Investigation, the Iowa Department of Corrections, the Black Hawk County Attorney’s Office, and members of the community. SAFE is an initiative in furtherance 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 neighborhoods safer for everyone.
Event Details
When: June 7, 2018
Where: Harold E. Getty Council Chambers, 715 Mulberry St., Waterloo
Time: 12:00 p.m.
A press release will be provided and interview opportunities will be available. Follow us on Twitter @USAO_NDIA.
McKeesport Man Illegally Possessed Heroin and a PistolRead the Press Release
PITTSBURGH, PA – A resident of McKeesport, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Isaiah Pridgen, age 20, pleaded guilty yesterday to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Pridgen possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance. Further, on that same date, Pridgen possessed a Taurus Millennium, .45 caliber pistol, in furtherance of said drug trafficking crime.
Judge Fischer scheduled sentencing for November 2, 2018, at 11 a.m. The law provides for a total sentence of not less than 5 years and up to life in prison, a fine not to exceed $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania Office of Attorney General, and the McKeesport Police Department conducted the investigation that led to the prosecution of Pridgen.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime, including violent crime caused by drug trafficking, and to make 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.
Massachusetts Man Sentenced to 210 Months in Prison for Child Pornography OffensesRead the Press Release
Concord - United States Attorney Scott W. Murray announced that Eric Treantos, 38, of Lynn, Massachusetts was sentenced today to serve 210 months in prison for child pornography offenses.
According to court documents and statements made in court, in August of 2015, a police officer in Australia was conducting an undercover investigation into possible possession and distribution of child pornography through the internet. The officer identified a suspect who had posted suspicious images, including a number of images depicting a girl who appeared to be under the age of 10. The undercover police officer and the suspect later exchanged emails and the suspect sent the officer additional images of the same young girl.
An investigation into the email account showed that the suspect was in New Hampshire when he sent emails to the undercover police officer in Australia. Investigators later identified the suspect as Treantos. Treantos was arrested on September 23, 2015, and has been in custody since that date.
Treantos pleaded guilty on July 31, 2017, to possession of child pornography and distribution of child pornography. After his prison sentence, Treantos will be on supervised release for the rest of his life.
“The distribution of child pornography is a particularly horrific crime that can gravely damage its innocent victims,” said U.S. Attorney Murray. “The U.S. Attorney’s Office works closely with its law enforcement partners to identify and prosecute those who exploit children by distributing these terrible images. This case is yet another example of that great teamwork.”
“Today’s significant sentence is a clear demonstration of the consequences awaiting, and should serve as a sobering reminder to, those who engage in the possession and distribution of child pornography” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigrations and Customs and Enforcement’s Homeland Security Investigations (HSI), Boston “We strongly applaud the close coordination among our Australian partners, the U.S. Attorney’s Office and the New Hampshire Internet Crimes Against Children Task Force (ICAC) with our team of dedicated HSI agents that brought about this sentencing. This case highlights the critical importance of local, state, federal and international law enforcement cooperation in fighting the growth of these very disturbing crimes that can reach from local communities out across the world and back again.”
This case was investigated by U.S. Immigrations and Customs and Enforcement’s Homeland Security Investigations, Boston, with assistance from Queensland Police Service in Australia, and was prosecuted by Assistant United States Attorney Arnold H. Huftalen.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Mass. Man Indicted for Attempted Enticement of a Minor, Travel to Engage in Illicit Sex, Attempting to Transfer Obscene Material to a MinorRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence today returned a three-count indictment charging Cody J. Hansen, 34, of Orange, MA, with attempted enticement of a minor, attempted transfer of obscene material to a minor, and travel with the intent to engage in illicit sexual conduct, announced by United States Attorney Stephen G. Dambruch, Rhode Island State Police Superintendent Colonel Ann C. Assumpico, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
Hansen was arrested on May 22, 2018, by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force when he arrived at a designated location where it is alleged he believed he would meet with a person who would assist him in meeting with and have sexual contact with a 12-year-old and an 8-year-old girl.
He was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan.
According to court documents, it is alleged that on April 20, 2018, a Rhode Island State Police trooper assigned to the ICAC Task Force responded to an online classified advertisement of an individual seeking to engage in illicit sexual activity. The trooper responded in an undercover capacity, first posing as the boyfriend of a woman with two minor children, age 8 and 12, then as the 12-year-old girl. It is alleged that the conversation turned sexually explicit, and, during one of many email exchanges over the next month, Hansen allegedly sent a sexually explicit picture to the person he thought to be the 12-year-old girl. During the communications, the trooper and Hansen arranged to meet in Rhode Island.
According to court documents, on May 22, Hanson arrived at a designated location, entered the state police trooper’s undercover vehicle, and discussed with the trooper his intent to have sexual contact with the 12 and 8-year-old girls. On the trooper’s signal, members of the ICAC Task Force surrounded the vehicle and took Hansen into custody.
An arraignment date on the indictment has not yet been scheduled. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Martinsburg man indicted on a drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Martinsburg, West Virginia man was indicted today by a federal grand jury on cocaine and heroin distribution charges, United States Attorney Bill Powell announced.
Jarod Arthur Blakney, also known as “Papi,” age 28, is charged with one count of “Distribution of Heroin,” one count of “Aiding and Abetting Distribution of Cocaine Base,” and three counts of “Distribution of Cocaine Base.” Blakney is accused of selling heroin and cocaine in Berkeley County in May and June of 2017.
Blakney faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Martin Man Sentenced for Accessory After the Fact and Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Martin, South Dakota, man convicted of Accessory After the Fact (Murder) and Conspiracy to Distribute a Controlled Substance, was sentenced on May 24, 2018, by Chief Judge, Jeffrey L. Viken, U.S. District Court.
Scott Edison Benson, age 31, was sentenced to 10 years in federal custody, to run consecutive with a second federal sentence of 8 1/3 years, followed by 4 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Benson previously pleaded guilty to Accessory After the Fact, on January 19, 2018. On the same day, in an unrelated matter, Benson also pleaded guilty to Conspiracy to Distribute a Controlled Substance.
On May 27, 2017, Benson and two other males drove to meet Christopher E. Janis near Sharps Corner. While Benson was arranging a purchase of prescription pills with Janis, one of the other males with Benson appeared at the driver-door window by Janis. Benson witnessed the male shoot Janis, and saw the second male take the handgun and shoot him several additional times. Christopher E. Janis died from the multiple gunshot wounds. Benson ran back to his vehicle and drove away with the two males. The firearm used by the men in the shooting belonged to Benson. At no time after Benson witnessed the men shoot Janis did he make any attempt to render aid or contact law enforcement. The two men with Benson have been indicted and their cases are currently pending.
Benson was also part of a conspiracy to distribute methamphetamine from January 2016 through approximately May 30, 2017, around the Pine Ridge Reservation, particularly in the Martin, Allen, and Kyle areas. He distributed to others for consumption at least 350, but less than 500 grams, of methamphetamine.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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.
These two cases were investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Task Force, Bureau of Indian Affairs Office of Justice Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Oglala Sioux Tribe Department of Public Safety, South Dakota Division of Criminal Investigations, and the Rapid City Police Department. Assistant U.S. Attorney Kathryn N. Rich prosecuted both cases.
Benson was immediately turned over to the custody of the U.S. Marshals Service.
Man Pleads Guilty to Drug Trafficking and Firearms ChargesRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty yesterday to running a drug trafficking conspiracy and illegally dealing over 200 firearms.
According to court documents, beginning in August 2015 and continuing through his arrest in March 2018, Bobby Perkins, Jr., 29, supervised a conspiracy to distribute marijuana, ecstasy, cocaine, crack cocaine, and heroin in Fredericksburg and Stafford County. During the course of the conspiracy, Perkins routinely carried on his person semi-automatic pistols to avoid being robbed of his drugs and the proceeds of his drug-distribution activities. Additionally, Perkins supplied his co-conspirators with firearms, which they used in furtherance of the conspiracy.
Separately, during an approximately five-month period in 2015, in Stafford County, Hanover County, and Henrico County, Perkins engaged in the business of dealing in firearms without a license. Perkins acquired and re-sold over 200 semi-automatic pistols, at least 106 of which have been recovered by law enforcement. Most of the firearms were recovered in Washington, D.C., with others found in Maryland, Virginia, New York, New Jersey, and Pennsylvania. Perkins knew that several of the individuals to whom he sold the firearms were convicted felons.
Perkins pleaded guilty to conspiracy to distribute controlled substances, using and carrying a firearm during and in relation to a drug-trafficking crime, and dealing in firearms without a license. He faces a mandatory minimum of ten years and a maximum of life in prison when sentenced on August 31. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea. Assistant U.S. Attorneys Alexander E. Blanchard and Carina A. Cuellar are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-214.
MS-13 Member Pleads Guilty to Conspiring to Participate in a Violent Racketeering EnterpriseRead the Press Release
A Maryland gang member pleaded guilty yesterday to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13, including his participation in a drug robbery intended to support the gang.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Robert K. Hur of the District of Maryland; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office; Acting Special Agent in Charge Scott W. Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Office; Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department and Montgomery County State’s Attorney John McCarthy made the announcement.
Jeffry Rodriguez aka “Hyper,” 22, a citizen of El Salvador who was residing in Capitol Heights, Maryland, pleaded guilty before the Honorable Judge Paula Xinis in the District of Maryland to conspiracy to participate in a racketeering enterprise.
“The Department of Justice is focused on dismantling transnational criminal organizations like MS-13, which is one of the most dangerous gangs in America,” said Acting Assistant Attorney General Cronan. “I want to thank our dedicated federal prosecutors and federal law enforcement officers with Homeland Security Investigations, the DEA, and the FBI, as well as our state and local partners in Prince George’s County and Montgomery County for all of their hard work on this case. Yesterday’s guilty plea is our next step toward taking the despicable MS-13 off our streets for good.”
“MS-13 is one of the most violent and ruthless gangs on the streets today,” said U.S. Attorney Hur. “Using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle this organization to make our communities in Maryland safer.”
According to the plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Rodriguez admitted that from at least August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on Aug. 9, 2016, he and other MS-13 members conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, on Aug. 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims. During the struggle, the victims sustained serious bodily injuries including gunshot and stab wounds. In addition, both Rodriguez and his co-conspirator sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
Eleven of Rodriguez’s co-defendants remain charged in the sixth superseding indictment with various racketeering violations, drug trafficking conspiracy, and extortion conspiracy. The trial of the 11 remaining defendants is scheduled to commence on March 12, 2019.
Rodriguez is scheduled to be sentenced on Aug. 29.
An indictment is merely an allegation. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, the Hyattsville Police Department and the Montgomery County State’s Attorney’s Office investigated the case. Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner are prosecuting the case.
MS-13 Member Pleads Guilty to Conspiring to Participate in A Violent Racketeering EnterpriseRead the Press Release
June 5, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland - Jeffry Rodriguez, a/k/a “Hyper,” age 22, of Capitol Heights, Maryland pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13, including his participation in a drug robbery intended to support the gang.
United States Attorney Robert K. Hur for the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office; Acting Special Agent in Charge Scott W. Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Office; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy made the announcement.
Rodriguez pleaded guilty before the Honorable Paula Xinis, U.S. District Court for the District of Maryland, to conspiracy to participate in a racketeering enterprise.
“The Department of Justice is focused on dismantling transnational criminal organizations like MS-13, which is one of the most dangerous gangs in America,” said Acting Assistant Attorney General Cronan. “I want to thank our dedicated federal prosecutors and federal law enforcement officers with Homeland Security Investigations, the DEA, and the FBI, as well as our state and local partners in Prince George’s County and Montgomery County for all of their hard work on this case. Today’s guilty plea is our next step toward taking the despicable MS-13 off our streets for good.”
United States Attorney for the District of Maryland Robert K. Hur noted “MS-13 is one of the most violent and ruthless gangs on the streets today. Using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle this organization to make our communities in Maryland safer.”
According to the plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Rodriguez admitted that from at least August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on August 9, 2016, he and other MS-13 members conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, on Aug. 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims. During the struggle, the victims sustained serious bodily injuries, including gunshot and stab wounds. In addition, both Rodriguez and his co-conspirator sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, entered another vehicle in which another MS-13 member was waiting, and traveled to a local hospital, where Rodriguez was admitted for treatment.
Eleven of Rodriguez’s co-defendants remain charged in the sixth superseding indictment with various racketeering violations, drug trafficking conspiracy, and extortion conspiracy. The trial of the 11 remaining defendants is scheduled to commence on March 12, 2019.
Judge Paula Xinis has scheduled sentencing on August 29, 2018.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the HSI Baltimore Office; the FBI; the DEA, and the Prince George’s County, the Hyattsville, and the Montgomery County Police Departments for their work in the investigation. Hur thanked Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this Organized Crime Drug Enforcement Task Force Case.
Lummi Tribal Member Sentenced to Six Years in Prison for Sexual Abuse of a MinorRead the Press Release
A 20-year-old member of the Lummi Tribe was sentenced Monday June 4, 2018 to six years in prison and 20 years of supervised release for sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. JASON LITTLE SKY JAMES JR, of Bellingham, Washington, was indicted in November 2017, and pleaded guilty in March 2018. U.S. District Judge James L. Robart noted the need to protect the public from JAMES JR., who will be required to register as a sex offender following his release from prison.
According to records filed in the case, between December 2016 and September 2017, JAMES, JR engaged in sexual acts with a minor female who was 13 or 14 years old. At the time of the sex acts, JAMES JR was a registered sex offender, having been convicted in Whatcom County Superior Court of indecent liberties in 2015. In the 2015 case, JAMES JR was convicted of engaging in sexual acts with a minor female who was then 13-years-old.
The cases came to light when the minor female reported the sex acts to a trusted adult, and the investigation revealed that JAMES JR. was aware of the victims’ young age at the time he engaged in sexual acts.
The case was investigated by the Lummi Police Department and the FBI. The case is being prosecuted by Assistant United States Attorneys J. Tate London and Chantelle D. Dial. Mr. London is a Tribal Liaison for the U.S. Attorney’s Office. Ms. Dial is an Indian Country Fellow, part of the Attorney General’s Honors Program.
Las Cruces Man Sentenced to Prison for Federal Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – John Houghtaling, 58, of Las Cruces, N.M., was sentenced today in federal court to 30 months in prison for his conviction on heroin and methamphetamine trafficking charges. Houghtaling will be on supervised release for four years after completing his prison sentence.
Houghtaling was arrested on July 25, 2017, on a criminal complaint charging him with heroin and methamphetamine trafficking offenses. According to the complaint, Homeland Security Investigations (HSI) agents found approximately three ounces of heroin and three ounces of methamphetamine in Houghtaling’s vehicle during a consensual search of the vehicle on Interstate 10 in Grant County, N.M.
Houghtaling was indicted on Nov. 1, 2017, and was charged with conspiracy to distribute heroin and methamphetamine from Sept. 18, 2016 through Sept. 20, 2016, and possession of heroin and methamphetamine with intent to distribute on Sept. 20, 2016. According to the indictment, Houghtaling committed the offenses in Grant County. Houghtaling entered a guilty plea to the indictment on Dec. 5, 2017, without the benefit of a plea agreement.
This case was investigated by the Deming office of HSI and the HIDTA Region VII Drug Task Force, a multi-agency task force that conducts long term investigations targeting regional, national and international drug trafficking organizations that operate in Luna, Hidalgo and Grant counties and follow-up on cases resulting from U.S. Border Patrol and New Mexico State Police interdiction efforts.
The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Bryan C. Lawson, 22, of Las Cruces, N.M., pled guilty today in federal court to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
The Las Cruces Police Department (LCPD) arrested Lawson in March 2018, after finding approximately 274 grams of methamphetamine in Lawson’s vehicle during a routine traffic stop. According to the complaint, Lawson was on supervised release for a prior methamphetamine trafficking felony conviction at the time of his arrest.
During today’s proceedings, Lawson pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Lawson admitted that on March 18, 2018, in Dona Ana County, N.M., he possessed approximately 223.6 grams of methamphetamine inside the vehicle he was driving when he was stopped by LCPD officers. Lawson also admitted that it was his intention to distribute the drugs to others.
At sentencing, Lawson faces an enhanced penalty of a statutory mandatory minimum term of imprisonment of ten years and a maximum of life, instead of the otherwise applicable five to 40 years of imprisonment, because of his prior felony drug trafficking conviction. Lawson remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the Las Cruces Police Department and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
KC Man Sentenced to 15 Years for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Russell S. Lawson, 45, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years and eight months in federal prison without parole.
On Nov. 20, 2017, Lawson pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possessing a firearm in furtherance of a drug-trafficking crime. Lawson admitted that he distributed at least 408.61 grams of pure methamphetamine during the conspiracy.
Undercover law enforcement officers and a confidential source made numerous purchases of methamphetamine from several members of the conspiracy, including Lawson. In his plea agreement, Lawson specifically admitted to a series of drug transactions that occurred at his residence from Nov. 10, 2015, to June 16, 2016.
On Nov. 17, 2016, law enforcement officers executed a search warrant at Lawson’s residence and seized a Browning .22-caliber semi-automatic handgun from Lawson as well as three rifles from his residence. Lawson admitted that he had been in possession of the handgun on Jan. 11, 2016, when he told an undercover officer that he expected to be robbed and hoped that they would come to the house so he could “headshot” them. Officers also discovered additional methamphetamine in the residence.
Lawson is the fifth defendant to be sentenced, among six defendants who have been convicted in this case. William L. Dunkin, 47, of Kansas City, Mo., was sentenced on May 24, 2018, to 10 years and nine months in federal prison without parole. Derek A.F. Fields, 33, of Kansas City, Mo., was sentenced on Feb. 22, 2018, to four years in federal prison without parole. Tiffani L. Campbell, 40, of Kansas City, Mo., was sentenced on Jan. 31, 2018, to 10 years in federal prison without parole. Barbara L. Daniels, 54, of Kansas City, Mo., was sentenced on Jan. 11, 2018, to three years in federal prison without parole. Paul V. Chavez, 29, of Kansas City, Mo., pleaded guilty and is scheduled to be sentenced on July 26, 2018.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Drug Enforcement Administration and the Jackson County Drug Task Force.
Jury Convicts Former Sheriff’s Deputy of Child Pornography PossessionRead the Press Release
SYRACUSE, NEW YORK – A jury today voted to convict Peter W. Farnum, age 41, of Clifton Park, New York, of possessing child pornography, following a 2-week trial.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The evidence at trial established that Farnum, a former sergeant with the Saratoga County Sheriff’s Office, possessed more than 1,000 image and video files on his family computer that contained child pornography. These included, among many others, image files that Farnum imported through the computer’s RealPlayer application while he conducted online research related to his position with the Sheriff’s Office and while his wife was in the hospital.
Following the verdict, Senior United States District Judge Norman A. Mordue remanded Farnum to custody pending sentencing on a date to be determined. Farnum faces up to 10 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Farnum will also have to register as a sex offender.
This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Jury Convicts Another Sacramento Man of Fraud in Connection with Arson Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, after a seven-day trial, a federal jury found Saber A. Shehadeh, 75, of Sacramento, guilty of three counts of mail fraud related to an arson fraud scheme, U.S. Attorney McGregor W. Scott announced. Shehadeh was remanded into custody following the verdict.
According to evidence presented at trial, Saber Shehadeh made a series of false statements to State Farm Insurance Company to get insurance money after two fires destroyed buildings he owned at the corner of 10th and E Streets in Sacramento’s Alkali Flat neighborhood. The fires occurred on December 27, 2009, and August 15, 2010, and ultimately destroyed a historical building where Saber Shehadeh ran a business called Tru Value Market. Prior to the fires, the financial condition of Shehadeh’s Tru Value Market had declined. He experienced suspension from USDA’s food stamp program, bounced mortgage checks, and frequent overdrafts on his business bank account, and his alcohol license was placed in jeopardy due to a conviction for food stamp fraud and receiving stolen property.
After the second fire, Saber Shehadeh became a silent partner in a supposed construction company that was then used to submit inflated invoices for post-fire cleanup to State Farm. During State Farm’s investigation of the insurance claims, Saber Shehadeh made a series of false statements about the status of his market prior to the fires, and submitted fraudulent documents and made false statements about the debris removal performed after the second fire. Saber Shehadeh received over $1.4 million in insurance proceeds after the fires, enabling him to pay off his mortgage and still have several hundred thousand dollars left over to invest in new businesses and to share with family members, including his co-defendant Jamal Shehadeh.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
On February 10, 2018, Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony and was sentenced to 30 years in prison. According to his plea agreement, Jamal Shehadeh set or caused to be set the first fire at Saber Shehadeh’s 10th and E Street property. On April 17, 2018, another co-defendant, Brian Stone, was convicted of 13 counts of mail and wire fraud after a separate jury trial and is currently scheduled to be sentenced on July 12, 2018.
Saber Shehadeh is scheduled to be sentenced on September 6, 2018, by U.S. District Judge Morrison C. England Jr. Shehadeh faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jemez Pueblo Man Sentenced to Prison for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Raymond Gachupin, 24, an enrolled member and resident of Jemez Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 78 months in prison for his conviction on a voluntary manslaughter charge. Gachupin will be on supervised release for three years after completing his prison sentence.
The FBI and Jemez Pueblo Tribal Police Department arrested Gachupin in July 2016, on a criminal complaint charging him with killing a Jemez Pueblo man by suffocating him on July 1, 2016, in Jemez Pueblo in Sandoval County, N.M. Gachupin subsequently was indicted on July 28, 2016, and was charged with second-degree murder.
On Jan. 19, 2018, Gachupin pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Gachupin admitted that on July 1, 2016, he strangled the victim during a physical altercation. Gachupin further admitted that the victim became unconscious, suffered a cardiac event, and died as the result of Gachupin’s actions.
This case was investigated by the Albuquerque office of the FBI and the Jemez Pueblo Tribal Police Department. Assistant U.S. Attorneys Joseph M. Spindle and Elisa Dimas prosecuted the case.
Jefferson Man Charged with Receipt of Child PornographyRead the Press Release
United States Attorney Duane A. Evans announced today that DONALD TROSCLAIR, age 56, of Jefferson, Louisiana, was charged on Friday, June 1, 2018, in a one-count Indictment with receipt of images and videos depicting the sexual exploitation of children, including children as young as approximately two years old. Trosclair was taken into custody on June 4, 2018.
If convicted, TROSCLAIR faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and its Violent Crimes Against Children Task Force, including representatives from the Kenner Police Department, Jefferson Parish Sheriff’s Office, and Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
Indictments: Five Massage Parlor Operators Were Engaged in ProstitutionRead the Press Release
TOPEKA, KAN. – Three indictments were unsealed today alleging massage parlors in Topeka and Lawrence were fronts for prostitution, U.S. Attorney Stephen McAllister said.
Five people were charged in federal grand jury indictments alleging prostitution businesses generated millions of dollars in revenue. Charges included conspiracy, interstate racketeering, bank fraud and money laundering.
Defendants charged include:
Ma Li Vanskike, 67, operator of ABC Massage (formerly Naima Therapy) in Lawrence is charged with one count of interstate racketeering and five counts of money laundering. An indictment alleges she laundered more than $1 million in revenues over a period of five years at Harrah’s Casino in North Kansas City, Mo.
Weiling Nielsen, 53, and Erik Nielsen, operators of Jasmine Massage in Topeka, Naima Asian Massage in Lawrence and Serenity Health Spa in Lawrence, are charged with two counts of conspiracy, two counts of bank fraud, five counts of money laundering, and one count of racketeering. An indictment alleges they bought and sold California real estate worth millions of dollars while falsely representing themselves to lenders as restaurant managers in Lawrence.
Lian Hua Li, 55, and Michael Mills, 61, are charged with two counts of conspiracy, two counts of interstate racketeering and four counts of money laundering. An indictment alleges Li operated Sunflower Massage (formerly Jasmine Massage) in Topeka and S-Therapy in Salina, and that Mills worked with her. The indictment alleges Mills transported female sex workers from the airport to massage parlors and assisted Li in laundering cash proceeds of prostitution. The indictment alleges some of the money was laundered through casinos in Kansas.
Upon conviction, the alleged crimes carry the following penalties:
Conspiracy: Up to 5 years in federal prison and a fine up to $250,000.
Racketeering: Up to five years and a fine up to $250,000.
Money laundering and money launder conspiracy: Up to 20 years and a fine up to $500,000.
Bank fraud: Up to 30 years and a fine up to $1 million.
The FBI investigated with the assistance of the Douglas County Sherriff’s Office, the Topeka Police Department and the Salina Police Department. Assistant U.S. Attorney Christine Kenney is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.