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4 June 2018
Northern District of Florida to Receive Two Attorney Positions to Fight Violent CrimeRead the Press Release
TALLAHASSEE, FLORIDA – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and Christopher P. Canova, U.S. Attorney for the Northern District of Florida, 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 United States Attorneys nationwide to assist in priority areas. These allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 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.
The two new AUSA positions allocated to the Northern District of Florida will focus on violent crime.
U.S. Attorney Canova said: “Attorney General Sessions’s announcement of more prosecutors to fight crime punctuates his mission to make our communities safer. He continues to support law enforcement officers and prosecutors by providing the resources, tools, and discretion to bring evil-doers to justice. My office will use these two new AUSA positions to prosecute the predators who terrorize our communities. Everyone should feel safe to walk the sidewalks and let their children play in the yard.”
“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.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Tonawanda Pharmacist Arrested, Charged with Prescription FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Patrick R. McQuade, 29, of North Tonawanda, NY, was arrested and charged by criminal complaint with possession of a controlled substance by fraud. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that according to the complaint, the defendant is a New York State licensed pharmacist currently employed as a Clinical Staff Pharmacist at Niagara Falls Memorial Medical Center. McQuade was previously employed by the Rite Aid Corporation from January 2015 until his firing in December 2017. The defendant was fired after an internal investigation discovered that McQuade created fictitious patient accounts which enabled him to create fraudulent prescriptions using Rite Aid’s inventory system. After creating a fraudulent prescription, the defendant then dispensed and diverted the controlled substances for personal use.
The complaint states that McQuade created 20 fictitious patient profiles and 47 fraudulent prescriptions to dispense a total of 1,874 dosage units of Alprazolam, Phentermine, Cialis, and Synjardy of varying strengths. Internal investigators verified that none of the doctors listed on the prescriptions had prescribed the medications to the fictitious patients.
McQuade made an initial appearance today before U.S Magistrate Judge H. Kenneth Schroder and was released on conditions. One of those conditions prevents the defendant from continuing to dispense controlled substances.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New Haven Man Sentenced to 40 Months in Federal Prison for Illegally Possessing Firearm and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT EPPS, 25, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 40 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on August 28, 2017, EPPS participated in the sale of a stolen Smith and Wesson .223 caliber semi-automatic rifle and two rifle magazines containing a total of 39 rounds of .223 caliber ammunition. On that date, EPPS transported the rifle and ammunition to a parking lot in New Haven. He then removed the firearm and ammunition from the trunk of his vehicle and handed the items to another person who, in turn, handed them to the purchaser.
EPPS’ criminal history includes state felony convictions for narcotics distribution and identity theft.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 2, 2018, EPPS pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
NDAL U.S. Attorney's Office Receives Four New Prosecutor Positions from 311 Announced by Attorney General SessionsRead the Press Release
BIRMINGHAM – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney Jay E. Town for the District of Northern Alabama 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 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,” Sessions said. “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 31-county Northern District of Alabama, three of the newly allotted AUSAs will focus on reducing violent crime, including through more aggressive gun and drug-trafficking prosecutions. A fourth newly added AUSA will focus on affirmative civil enforcement, seeking monetary recoveries from corporations and individuals who have defrauded the United States through health care or other government procurement fraud.
“This announcement solidifies the commitment that the Department of Justice has in reducing crime, especially violent crime, and protecting the public fisc in Northern Alabama,” Town said. “The steadfast leadership of Attorney General Sessions continues to impact positively every district in the United States, and these new prosecutors will bolster our ability to execute the violent crime priorities of the Department of Justice. Our side of the battlefield can never be too crowded.”
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Moss Point Man Sentenced to over 24 Years in Federal Prison for MethamphetamineRead the Press Release
Gulfport, Miss. – Demetrius Darnell Mason, 40, of Moss Point, was sentenced on Thursday by U.S. District Judge Louis Guirola, Jr. to serve 292 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Stephen G. Azzam with the Drug Enforcement Administration (DEA). Mason was also ordered to pay a $7,500 fine.
On November 29, 2017, after receiving information involving drug trafficking activity, DEA agents observed FedEx deliver a package to a residence in Biloxi, Mississippi. Mason retrieved the package from the residence and then led police on a high-speed chase through a residential neighborhood. DEA agents arrested Mason and found almost a kilogram of methamphetamine in the package.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Modesto Man Pleads Guilty to Attempting to Provide Material Support to a Terrorist OrganizationRead the Press Release
FRESNO, Calif. — Everitt Aaron Jameson, 26, of Modesto, pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney McGregor W. Scott made the announcement.
According to the plea agreement, between September 2017 and December 20, 2017, Jameson voiced support for ISIS knowing that the organization was engaging in terrorist activity and terrorism. Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.” Jameson also expressed support online for the October 31, 2017, terrorist attack in New York City, as well as other terrorist attacks. In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they needed done here and noted that his time in the military had trained him for combat and war. According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.
Later, Jameson met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS and offered to carry out violent acts and provide financial support for the terrorist organization.
According to the plea agreement, on December 16, 2017, Jameson discussed what he could offer to the cause. Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack. He also noted that he could get PVC pipe, nails and powder for explosive devices, and asked for remote timing devices from that person, Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape. Jameson also offered to provide money to the cause.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker are prosecuting the case with Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section.
Jameson is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on September 4, 2018. Pursuant to the plea agreement, Jameson faces a 15-year prison term, followed by a lifetime of supervised release. Under the agreement, the court may accept or reject the parties’ agreement about the appropriate sentence.
Mexican and Honduran Men Pled Guilty to Smuggling and Transporting Fourteen Illegal Aliens in Derby, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two persons have pled guilty to the smuggling and transporting of fourteen illegal aliens who traveled on foot from Quebec to Derby, Vermont in October 2017. The two defendants are Alberto Alvarado-Castro, 30, a Mexican citizen, and Hector Perez-Alvarado, 25, a Honduras citizen.
Alberto Alvarado-Castro pled guilty to smuggling aliens for financial gain, which carries a three-year mandatory minimum sentence and a ten-year maximum sentence. The parties agreed that Alvardo-Castro’s sentence should be three years, which is still subject to the Court’s approval. Hector Perez-Alvarado pled guilty to transporting aliens for financial gain, which carries a ten-year maximum sentence. The parties have not agreed to a specific sentence for Perez-Alvarado. United States Chief Judge Geoffrey W. Crawford will conduct both sentencings, which are currently scheduled for September 27, 2018 in Rutland. Both defendants are detained and in the custody of the U.S. Marshals Service.
According to the complaint affidavit and the statements made at the recent hearings, late in the evening of October 7, 2017, Alberto Alvarado-Castro guided the fourteen aliens through the woods on the border to a van parked in Derby, which was driven by Hector Perez-Alvarado. In multiple trips, Perez-Alvardo drove the aliens to a motel in Derby, where, on the last trip, they were all apprehended by the U.S. Border Patrol. Eleven of the smuggled illegal aliens were Guatemala citizens and three were Mexican citizens. The Government alleges that Alvarado-Castro has multiple prior felony burglary convictions in the United States.
This matter was investigated by the United States Border Patrol and Homeland Security Investigations. “This case serves as an excellent example of the dedication and hard work put forth by Border Patrol agents to keep our country and communities safe,” said U.S. Border Patrol Swanton Sector Acting Chief Patrol Agent Robert Garcia. “Our agents did an outstanding job thwarting this smuggling attempt and the U.S. Attorney's Office did an excellent job prosecuting it.”
The Assistant U.S. Attorney prosecuting this matter is Joe Perella. Elizabeth Quinn, Esq., of the Federal Public Defender’s Office represents Perez-Alvarado. David Watts, Esq., of Burlington represents Alvarado-Castro. Robert Sussman, Esq., of Burlington represents Perez-Ramirez.
Matthews, N.C. Man Is Arrested in Murder-For-Hire PlotRead the Press Release
CHARLOTTE, N.C. – A Matthews, N.C. man was arrested on Friday, June 1, 2018, for attempting to hire a hitman via the internet to murder a Charlotte area resident, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Bryant Riyanto Budi, 26, appeared in federal court today before U.S. Magistrate Judge David C. Keesler.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Murray in making today’s announcement.
According to allegations in the filed Complaint, in April and May 2018, Budi contacted an HSI undercover agent (UCA) located in Buffalo, New York via the internet to conduct a murder-for-hire. The Complaint alleges that Budi used online usernames, encrypted messaging platforms, and encrypted email services to disguise his true identity from the undercover agent. During the course of communications between Budi and the UCA, Budi hired the UCA to murder an individual who resides in the Charlotte area, identified in the Complaint as “C.S.”
The complaint further alleges that separately, in April and May 2018, Budi also contacted an FBI online covert employee (OCE) via the internet to purchase a lethal dose of a radioactive substance. In his communications with the OCE, Budi expressed his intent to use the radioactive substance to kill an unnamed individual. Budi also instructed the FBI OCE to ship the radioactive substance to an address in Charlotte. The Complaint alleges that on May 22, 2018, the OCE advised Budi a package containing the radioactive substance was shipped. On May 31, 2018, the package containing an inert substitute for the radioactive material ordered by Budi was delivered to an address in Charlotte as instructed by Budi. On June 1, 2018, at approximately 11:15 p.m., Budi was arrested.
Budi is charged with one count of using interstate commerce facilities in the commission of murder-for hire, which carries a maximum prison term of 10 years.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray praised the outstanding work of HSI in Buffalo, New York and Charlotte; the FBI in Charlotte and supporting FBI field offices; the FBI’s Weapons of Mass Destruction Directorate in Washington, D.C.; the U.S. Attorney’s Office for the Western District of New York, and the Department of Justice’s National Security Division.
Assistant U.S. Attorney Casey Arrowood of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution, assisted by Trial Attorney Bridget Behling, of the National Security Division’s Counterterrorism Section.
Maryland Man Sentenced to 35 Years in Prison for Production of Child PornographyRead the Press Release
June 4, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Richard D. Bennett sentenced Eric Nathaniel Sammons, age 25, of Trappe, Maryland today to 35 years in prison, followed by lifetime supervised release, for production of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Superintendent of the Maryland State Police William M. Pallozzi, and Acting Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office.
According to his plea agreement, between 2014 and 2016, Sammons sexually exploited four minors and produced images of the minors engaged in sexually explicit conduct. Additionally, Sammons maintained a collection of child pornography on his digital devices.
Prior to May 25, 2016, Sammons set up a hidden camera in the bathroom of a twelve-year-old male victim and recorded a series of 47 videos.
On approximately October 6, 2015, Sammons took a series of 32 photographs of Jane Doe 1, including images that depicted the child partially naked and in various poses.
From approximately May 26, 2016 through September 2016, Sammons was living in the detached garage of a residence in Caroline County. During this time, he sneaked into the bedroom of two female victims, ages 3 and 5, and produced 11 pornographic images of Jane Doe 2 and Jane Doe 3 engaged in sexually explicit conduct while they slept.
Sammons’ digital devices were forensically examined. Investigators found images and videos of child pornography on the devices and determined that his mobile phone, the digital camera, and the video camera were used to produce the child pornography. The devices contained the images of the victims that Sammons had produced and over 3,000 images additional files of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left side of the page.
United States Attorney Robert K. Hur commended Homeland Security Investigations, the Talbot County Narcotics Task Force, the Maryland State Police, and the State’s Attorney’s Offices and Child Protective Services of Caroline and Talbot Counties for their work in the investigation. Mr. Hur thanked Assistant United States Attorney Paul Budlow, who is prosecuting the case.
Manchester Man Pleads Guilty to Oxycodone Trafficking ChargesRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced that Christopher Chandonnais, 26, of Manchester, pleaded guilty in federal court to oxycodone trafficking charges.
According to court documents and statements made in court, on October 19, 2017, the Nashua Police Department conducted surveillance of the defendant making a drug sale to another drug distributor. They subsequently searched the defendant’s vehicle and recovered approximately 90 oxycodone pills and over $11,000. The investigation confirmed that the defendant regularly sold oxycodone pills and made a profit of approximately $10 per pill sold.
Chandonnais pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, controlled substances and possession of controlled substances with intent to distribute. He is scheduled to be sentenced on September 14, 2018.
“The opioid problem in our state is fueled, in part, by the use and abuse of oxycodone,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to prosecute those who unlawfully distribute these substances.”
This matter was investigated by the Nashua Police Department, with assistance from the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
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Manager of Southeast Washington Barbershop Pleads Guilty to Federal Narcotics and Firearms ChargesRead the Press Release
WASHINGTON – Darryl Smith, 41, the manager of a Southeast Washington barbershop, pled guilty today to federal narcotics and firearms offenses stemming from an investigation into drug trafficking at the business and surrounding area.
The announcement was made by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Smith pled guilty in the U.S. District Court for the District of Columbia to one count of possession of a firearm in furtherance of a drug trafficking offense and one count of possession with the intent to distribute PCP. The plea agreement, which is contingent upon the Court’s approval, calls for a sentence of 80 months of incarceration, to be followed by five years of supervised release. The Honorable Amit P. Mehta scheduled sentencing for Aug. 15, 2018.
On Dec. 24, 2017, Smith was arrested by MPD while in the possession of a loaded firearm and packaged capsules of fentanyl after he fled officers following a drug transaction in the 2400 block of Martin Luther King, Jr. Avenue SE, where the Next Level Cuts barbershop is located. Smith also was arrested following a search warrant executed at the barbershop and surrounding property on Feb. 1, 2018. In addition to recovering three firearms from the barbershop and adjoining property, law enforcement seized more than $7,000 in cash, more than 800 grams of PCP, more than 300 grams of heroin, and boxes of Suboxone strips.
Smith, of Washington, D.C., was indicted on federal charges in February 2018.
Two co-defendants are still facing charges. Anthony Fields, 44, of Washington, D.C., was indicted for drug trafficking offenses arising from the Feb. 1, 2018 seizure. James Venable, 46, of Fort Washington, Md., was indicted on narcotics and firearms charges, stemming from two separate drug trafficking offenses committed in the District of Columbia, one of which alleges his distribution of narcotics outside the barbershop. Both have pled not guilty.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Chittum, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli and Paralegal Specialist Candace Battle.
Maine Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
BOSTON – A Maine man pleaded guilty today in federal court in Worcester to his role in a drug trafficking conspiracy.
Thomas Walker, 43, of Pemaquid, Maine, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and cocaine, specifically cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 28, 2018. In 2017, Walker and four others, Vito Nuzzolilo, of Worcester; Kristin Little, of Worcester; Melissa Rock, of Pemaquid, Maine; and Ricardo Ortega-Vasquez, a Dominican national residing in New York City, were indicted for their roles in the conspiracy.
According to court documents, a court-authorized wiretap intercepted Rock and Walker speaking with Nuzzolilo about purchasing cocaine for re-distribution in Maine. On April 10, 2017, Rock contacted Nuzzolilo to ask if he would “front” a quantity of cocaine for Walker; she then traveled to Nuzzolilo’s apartment in Worcester. On April 15, 2017, Walker arranged to obtain cocaine from Nuzzolilo’s apartment, and Nuzzolilo directed Little to provide two ounces of cocaine to Walker. On April 23, 2017, Walker again visited Nuzzolilo’s apartment to obtain cocaine. On April 27, 2017, Walker spoke with Nuzzolilo about obtaining additional cocaine, promising that his “workers” had cash to cover it. Rock and Walker then traveled to Nuzzolilo’s Worcester apartment, and, after leaving the apartment, were stopped by law enforcement and found in possession of more than 50 grams of cocaine.
Walker faces a sentence of up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Rock, Little, and Ortega-Vasquez have also pleaded guilty and are awaiting sentencing. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Mabank, Texas Man Sentenced to 240 Months in Federal PrisonRead the Press Release
DALLAS — Noel Guest, 62, of Mabank, Texas, was sentenced last week by U.S. District Judge Jane J. Boyle to 240 months in federal prison, following his guilty plea in November 2016 to transportation and shipment of child pornography, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Guest has been in custody since his arrest in May 2016.
According to the factual resume filed in the case, the Federal Bureau of Investigation (FBI) was investigating a specialized peer-to-peer file-sharing program (P2P) in an undercover capacity. This specialized P2P program functions as a closed network similar to Facebook, where users choose who to invite into their network and what to share with their invited contacts.
On May 13, 2016, a search warrant was executed at Guest’s residence in Mabank, Texas and agents seized several electronic devices. A forensic examination revealed that the electronic devices contained over 602 images of child pornography and 2 videos of child pornography. The examination also revealed that Guest chatted with other like-minded individuals on the P2P network to obtain their passwords for their shared materials and that he also traded child pornography with them by providing them with the password to his child pornography collections and that Guest made available approximately 4344 shared files of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Plano Police Department investigated the case. Assistant U.S. Shane Read prosecuted.
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Legg Mason, Inc. Agrees to Pay $64 Million in Criminal Penalties and Disgorgement to Resolve FCPA Charges Related to Bribery of Gaddafi-Era Libyan OfficialsRead the Press Release
Legg Mason, Inc. (Legg Mason), a Maryland-based investment management firm, has entered into a non-prosecution agreement with the Department of Justice and agreed to pay $64.2 million to resolve the Department’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Legg Mason’s participation, through a subsidiary, in a Libyan bribery scheme.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Eric Hylton, Deputy Chief, Internal Revenue Service Criminal Investigation (IRS-CI), made the announcement.
According to Legg Mason’s admissions, between 2004 and 2010, a Legg Mason subsidiary, Permal Group Ltd. (Permal), partnered with Société Générale S.A. (Société Générale), a multinational bank headquartered in Paris, France, to solicit business from state-owned financial institutions in Libya. During this time, Société Générale paid bribes through a Libyan “broker” in connection with 14 investments made by Libyan state-owned financial institutions. For each transaction, Société Générale paid the Libyan broker a commission of between one and a half and three percent of the nominal amount of the investments made by the Libyan state institutions. In connection with seven of the transactions, Société Générale paid commissions to the Libyan broker to benefit Legg Mason, through its subsidiary Permal, which managed funds invested by the Libyan state institutions. In total, Société Générale paid the Libyan Intermediary over $90 million, portions of which the Libyan broker paid to high-level Libyan officials in order to secure the investments from various Libyan state institutions for Société Générale. As a result of the corrupt scheme, Société Générale obtained 13 investments and one restructuring from the Libyan state institutions worth a total of approximately $3.66 billion, and earned profits of approximately $523 million. Legg Mason, through Permal, managed seven of these investments and earned profits of approximately $31.6 million.
Legg Mason entered into a non-prosecution agreement and agreed to pay $64.2 million to resolve the matter. This payment includes a penalty of $32.625 million to be paid to the U.S. Treasury within five days of the agreement, and disgorgement of $31.617 million, which will be credited against disgorgement paid to other law enforcement authorities within the first year of the agreement. As part of the non-prosecution agreement, Legg Mason has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to report to the Department on the implementation of its enhanced compliance program.
The Department reached this resolution based on a number of factors, including that Legg Mason did not voluntarily and timely disclose the conduct at issue, but fully cooperated in the investigation and fully remediated. Moreover, Legg Mason’s misconduct involved only mid-to-lower level employees of Permal, a subsidiary company, and was not pervasive throughout Legg Mason or Permal; Société Générale – and not Legg Mason or Permal – maintained the relationship with the Libyan broker and was responsible for originating and leading the scheme; the profits earned by Legg Mason and Permal were less than one-tenth of the profits earned by Société Générale; and neither Legg Mason nor Permal has a history of similar misconduct.
The FBI’s New York Field Office and IRS-CI’s New York office are investigating the case.
Assistant U.S. Attorneys David C. Pitluck and James P. McDonald of the Eastern District of New York, and Trial Attorneys Dennis R. Kihm and Gerald M. Moody, Jr. of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this investigation.
The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in this matter. France’s Parquet National Financier, the United Kingdom’s Serious Fraud Office, the Federal Office of Justice in Switzerland and the Office of the Attorney General in Switzerland also provided significant cooperation.
Legg Mason Inc. Agrees to Pay $64 Million in Criminal Penalties and Disgorgement to Resolve FCPA Charges Related to Bribery of Gaddafi-Era Libyan OfficialsRead the Press Release
Legg Mason Inc. (Legg Mason), a Maryland-based investment management firm, has entered into a non-prosecution agreement with the Department of Justice and agreed to pay $64.2 million to resolve the Department’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) in connection with Legg Mason’s participation, through a subsidiary, in a Libyan bribery scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI New York Field Office and Deputy Chief Eric Hylton of IRS Criminal Investigation made the announcement.
According to Legg Mason’s admissions, between 2004 and 2010, a Legg Mason subsidiary, Permal Group Ltd. (Permal), partnered with Société Générale S.A. (Société Générale), a multinational bank headquartered in Paris, France, to solicit business from state-owned financial institutions in Libya. During this time, Société Générale paid bribes through a Libyan “broker” in connection with 14 investments made by Libyan state-owned financial institutions. For each transaction, Société Générale paid the Libyan broker a commission of between one and a half and three percent of the nominal amount of the investments made by the Libyan state institutions. In connection with seven of the transactions, Société Générale paid commissions to the Libyan broker to benefit Legg Mason, through its subsidiary Permal, which managed funds invested by the Libyan state institutions. In total, Société Générale paid the Libyan Intermediary over $90 million, portions of which the Libyan broker paid to high-level Libyan officials in order to secure the investments from various Libyan state institutions for Société Générale. As a result of the corrupt scheme, Société Générale obtained 13 investments and one restructuring from the Libyan state institutions worth a total of approximately $3.66 billion, and earned profits of approximately $523 million. Legg Mason, through Permal, managed seven of these investments and earned profits of approximately $31.6 million.
Legg Mason entered into a non-prosecution agreement and agreed to pay $64.2 million to resolve the matter. This payment includes a penalty of $32.625 million to be paid to the U.S. Treasury within five days of the agreement, and disgorgement of $31.617 million, which will be credited against disgorgement paid to other law enforcement authorities within the first year of the agreement. As part of the non-prosecution agreement, Legg Mason has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to report to the Department on the implementation of its enhanced compliance program.
The Department reached this resolution based on a number of factors, including that Legg Mason did not voluntarily and timely disclose the conduct at issue, but fully cooperated in the investigation and fully remediated. Moreover, Legg Mason’s misconduct involved only mid-to-lower level employees of Permal, a subsidiary company, and was not pervasive throughout Legg Mason or Permal; Société Générale – and not Legg Mason or Permal – maintained the relationship with the Libyan broker and was responsible for originating and leading the scheme; the profits earned by Legg Mason and Permal were less than one-tenth of the profits earned by Société Générale; and neither Legg Mason nor Permal has a history of similar misconduct.
The FBI’s New York Field Office and IRS-CI’s New York office are investigating the case. Trial Attorneys Dennis R. Kihm and Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David C. Pitluck and James P. McDonald of the Eastern District of New York are prosecuting this matter. The Criminal Division’s Office of International Affairs provided significant assistance in this investigation.
The Department appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission in this matter. France’s Parquet National Financier, the United Kingdom’s Serious Fraud Office, Switzerland’s Office of the Attorney General and Federal Office of Justice also provided significant cooperation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s Fraud Section FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Las Vegas Man Sentenced to 14 Years for Meth, Heroin TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Las Vegas, Nev., man was sentenced in federal court today for his role in a conspiracy to distribute large amounts of methamphetamine in Greene County, Mo.
Adrian Ortiz-Corrales, 44, of Las Vegas, was sentenced by U.S. District Judge M. Douglas Harpool to 14 years in federal prison without parole.
On Aug. 17, 2017, Ortiz-Corrales pleaded guilty to participating in a conspiracy to distribute methamphetamine, participating in a conspiracy to commit money laundering, six counts of money laundering, possession with intent to distribute methamphetamine and possession with intent to distribute one kilogram or more of heroin.
In total, the quantity of pure methamphetamine involved in the conspiracy, which lasted from October 2013 to Feb. 29, 2016, weighed in excess of 4.5 kilograms. The methamphetamine distributed during the conspiracy, according to court documents, primarily originated from Mexico and was smuggled to Missouri.
According to court documents, a steady stream of purchasers came to the home of the conspiracy’s leader, co-defendant Patrick R. Brigaudin, 55, of Springfield, to purchase methamphetamine from him, or to deliver methamphetamine to him.
On Feb. 29, 2016, co-defendant Eduardo Diaz, 54, also of Las Vegas, transported approximately 12 pounds (5.4 kilograms) of methamphetamine and six pounds of heroin to Brigaudin’s residence. When he arrived in Missouri, Diaz picked up Ortiz-Corrales and they traveled together to Brigaudin’s residence to deliver the methamphetamine and heroin. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Brigaudin was sentenced on March 21, 2018, to 30 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to a related money-laundering conspiracy.
Diaz was sentenced on April 4, 2018, to 12 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
Ortiz-Corrales is among 13 defendants who have been sentenced in this case. One co-defendant has pleaded guilty and awaits sentencing, while another co-defendant is a fugitive.
This case is being prosecuted by United States Attorney Timothy A. Garrison and Supervisory Assistant U.S. Attorney Randall Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Largest Increase in AUSAs in Decades Allocates Two Prosecutors to the District of Western Tennessee to Focus on Violent Crime and Civil EnforcementRead the Press Release
Attorney General Jeff Sessions and U.S. Attorney for the District of Western Tennessee, D. Michael Dunavant 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 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 District of Western Tennessee, one of these AUSAs will focus on violent crime and one on civil enforcement.U.S. Attorney D. Michael Dunavant said: "The Department of Justice has been very responsive and generous in the resources that have been allocated to the Western District of Tennessee within the last few months. On December 21, 2017, the Attorney General announced that the Western District of Tennessee would receive two (2) new and additional federal prosecutor positions that have now been solely dedicated and assigned to aggressively prosecute violent crimes cases in Memphis and Jackson. Now, with this additional violent crime prosecutor position, we can continue to increase our caseloads in the area of firearms, gangs, and violent crimes in Memphis and across West Tennessee. Likewise, with the allocation of the new Civil ACE position, our office will be better positioned to affirmatively litigate cases in the growing areas of health care fraud, elder abuse, nursing home complaints, and prescription opioid diversion. We are thankful for all of these resources from the Department of Justice, and we are committed to the effective use of these new positions to reduce violent crime and handle complex civil litigation on behalf of the United States."
To see more information on the locations of the 311 Assistant United States Attorney positions click here.Largest Increase in AUSAs in Decades Allocates Prosecutors to Focus on Violent Crime, Civil Enforcement, and Immigration CrimesRead the Press Release
On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the Eastern District of Louisiana Duane A. Evans 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 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 Eastern District of Louisiana, one (1) additional AUSA will be hired for this position. The AUSA will be tasked with affirmative civil enforcement, with an emphasis on health-care fraud and opioid diversion matters. U.S. Attorney Evans commented: “This district has historically enjoyed a robust criminal and civil health-care fraud practice. In addition to combating the opioid crisis in Louisiana, this additional AUSA will help us expand outreach efforts with federal agencies and community partners to increase the quality and quantity of civil referrals.”
Kiel, Wisconsin Man Arrested for Food TamperingRead the Press Release
United States Attorney Matthew D. Krueger announced today that Jonathan Tilman Lane, from Kiel, Wisconsin, was arrested and appeared in federal court in Milwaukee to face charges of tampering with a consumer product.
The criminal complaint alleges that on two separate occasions during March 25-28, 2018, Lane, an employee at Johnsonville Sausage, LLC, placed foreign objects into sausage links. Video surveillance, determined that on March 25, 2018, Lane placed a cigarette paper in a sausage link and on March 28, 2018, Lane placed a wire connector in a sausage link while the items were on the processing line. Both times, the items were removed before the sausage links were packaged. Due to the public risk of Lane’s behavior, Johnsonville closed down the operation and discarded all products that they believed could have been affected.
Lane is charged with two counts of tampering with a consumer product and acting with reckless disregard for the risk that another person would be placed in danger of death or bodily harm and manifesting an extreme disregard to such a risk. As to each count, the Lane face a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to a representative of Johnsonville, none of the tampered products left their facilities. United States Attorney Krueger stated, “We commend Johnsonville Sausage, LLC for its security measures and quick action to prevent any harm to consumers.”
The case is being investigated by the United States Department of Agriculture, Office of Inspector General (USDA/OIG). Assistant United States Attorney Karine Moreno-Taxman is assigned to the prosecution of this case.
This case was charged by a criminal complaint. The public is reminded that the complaint contains only allegations of criminal conduct, and the defendant is presumed innocent until proven guilty in a court of law.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Justice Department Reaches Agreements with the Ville Platte Police Department and the Evangeline Parish Sheriff’s OfficeRead the Press Release
The Justice Department today announced that it reached an agreement with the City of Ville Platte and a separate agreement with the Evangeline Parish Sheriff’s Office (Louisiana) to end the pattern or practice by the Ville Platte Police Department (VPPD) and the Evangeline Parish Sheriff’s Office (EPSO) of conducting arrests in violation of the Fourth Amendment to the United States Constitution. After a thorough investigation, the United States concluded that it had reasonable cause to believe that these agencies had arrested and held people in jail—sometimes without obtaining a warrant and without probable cause to believe that the detained individuals had committed a crime—in violation of the Fourth Amendment. VPPD and EPSO sometimes used these arrests, called “investigative holds,” as a regular part of their criminal investigations, inducing people to provide information to officers under threat of continued wrongful incarceration.
Under the agreement, VPPD and EPSO will develop policies and provide training and adequate supervision to officers to ensure the pattern or practice of unlawful seizures does not continue. The agencies also will increase transparency by collecting and reporting data on its Fourth Amendment activities.
The Department’s investigation into EPSO and VPPD began in April 2015 and concluded in an investigative findings report, released on Dec. 19, 2016. The Department determined through interviews with command staff, detectives, officers, and a cross-section of community members, as well as review of documents including jail logs, arrest records, and more, that the investigative hold practice was routine at EPSO and VPPD. Both agencies acknowledged that they sometimes used holds to investigate criminal activity for as long as anyone at the agency can remember. Because these “investigative holds” were conducted without probable cause, they violated the Fourth Amendment’s protection against unreasonable searches and seizures.
“Police officers across the country are called upon to protect and safeguard members of their communities by investigating criminal activity. Officers are afforded the authority needed to do so, including the power to arrest and detain individuals when there is proper legal justification,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “It is imperative that officers use that authority within the boundaries of the law. Both agencies cooperated fully throughout this matter, and we are eager to continue to work together with the Ville Platte Police Department, the Evangeline Parish Sheriff’s Office, and the local municipalities to help ensure that their officers can protect the public and investigate crime without violating the civil rights of members of the public.”
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The Act also allows the Justice Department to remedy such misconduct through civil litigation. The Special Litigation Section of the Justice Department’s Civil Rights Division in Washington, D.C. enforces the Act.
To read the report of the investigation, please click here. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Jacksonville Man Sentenced to Five Years in Federal Prison for Receiving Child Sex Abuse Images from A Convicted Sex Offender over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Stanley Hagan, Jr. (33, Jacksonville) to five years in federal prison for receiving child pornography over the internet. Hagan was also ordered to register as a sex offender.
According to court documents, Darren Dozier, a convicted child sex offender, was released from prison in 2015 and established a residence in Philadelphia. While there, he molested an 8-year-old child and produced images and videos of this abuse. On December 19, 2015, and again on August 7, 2016, Hagan engaged in sexually explicit online conversations with Dozier. During these conversations, Hagan pretended to be a 15-year old girl and, during the December conversation, Dozier offered to send Hagan sexually explicit images of his minor victim. Hagan accepted the offer. Dozier then sent Hagan four images depicting Dozier sexually abusing the child. Hagan also asked Dozier to send him a sexually explicit video of the child. During an interview with FBI agents in Jacksonville on August 30, 2017, Hagan admitted that he had solicited and received these images from Dozier.
This case was investigated by the FBI in Jacksonville and Philadelphia. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case that was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illegal Alien Sentenced to 41 Months in Federal Prison for Possessing AR-15 Style Rifle and a Handgun in Connection with Drug TraffickingRead the Press Release
United States Attorney Matthew D. Krueger announced that on June 1, 2018, United States District Court Judge J.P. Stadtmueller sentenced Edy Matute to 41 months in prison for being an illegal alien in possession of firearms in violation of 18 U.S.C. §§ 922(g)(5)(A) & 924(a)(2). Matute also received a sentencing enhancement for possessing the firearms in connection with drug trafficking.
As part of an investigation into a large-scale drug and firearm trafficking organization originating in the Southern District of Illinois, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant on Matute’s Milwaukee residence on December 5, 2017. The agents recovered a chrome Taurus PT945 handgun and a Bushmaster AR-15 style rifle. They also recovered a grocery bag that contained two “kilo wrappers” that tested positive for cocaine residue. At the time of the search warrant, Matute, who is a citizen of Honduras and unlawfully in the United States, had been convicted of driving under the influence three times and was in immigration removal proceedings.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Zachary J. Corey. The related cases in the Southern District of Illinois are being prosecuted by Assistant United States Attorney Kit Morrissey.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Idabel Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nickey Lynn Anderson, age 35, of Idabel, Oklahoma, pled guilty to Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both. However, if the court deems the defendant to be an Armed Career Criminal, the offense is punishable by not less than 15 years imprisonment.
The Indictment alleged that on or about August 5, 2017, within the Eastern District of Oklahoma, the defendant, Nickey Lynn Anderson, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm and ammunition, to-wit: One (1) Jimenez, Model JA-25, .25 automatic caliber pistol, serial number 059829; and Six (6) rounds G.F.L. (Giuilio Fiocchi, Lecco) .25 automatic caliber ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Idabel Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
ISIS Supporter Sentenced for Lying in Attempt to Join MilitaryRead the Press Release
NORFOLK, Va. – A Williamsburg man who told an FBI undercover employee that he wanted to commit jihad was sentenced today to five years in prison for passport fraud and making false statements in his application to join the United States military.
According to court documents, Shivam Patel, 28, was working in China in the summer of 2016 when he flew to the Kingdom of Jordan, was arrested, detained, and then returned to the United States. Patel told an undercover employee and a confidential source that he wanted to join a “Muslim army” and commit jihad. After returning to the United States, he applied to join the Army and Air Force. When asked about his prior foreign travel as part of his applications, Patel did not disclose his trips to China or Jordan. After he was asked to show an Army recruiter his passport, which would have revealed his prior travel to the recruiter, he filed an application for a new passport, falsely claiming that he had accidentally thrown his old passport away. Special agents from the FBI recovered that passport, which documented his undisclosed travel, when they arrested him in July 2017.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorney Andrew C. Bosse and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted 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. 2:17-cr-120.
Greenville Man Sentenced for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced CHICOBE ANTRELL WILLIAMS, 33, of Greenville, North Carolina to 151 months imprisonment, followed by 3 years of supervised release.
WILLIAMS was named in an Indictment filed on April 11, 2017 charging him with four counts of distribution of a quantity of cocaine base (crack). On January 8, 2018, WILLIAMS pled guilty to one count of distribution of a quantity of cocaine base (crack).
According to the investigation, in October 2015, investigators with the Greenville Police Department and agents with the Federal Bureau of Investigation began investigating the narcotics distribution activity of WILLIAMS. A confidential informant was utilized to make four controlled purchases of cocaine base (crack) from WILLIAMS. WILLIAMS utilized others to assist in his narcotics distribution. In addition to the controlled purchases, WILLIAMS was arrested with crack in his possession.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Greenville Police Department. Assistant United States Attorney Dena King represented the government.
Fugitive Lawyer Pleads Guilty for His Escape and Role in $550 Million Social Security Fraud SchemeRead the Press Release
A former fugitive and social security disability lawyer pleaded guilty in federal court today for his role in scheming to defraud the Social Security Administration (SSA) of more than $550 million, retaliating against an informant and fleeing from the United States.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Tracey D. Montaño of the IRS Criminal Investigation (IRS-CI) Nashville, Tennessee Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 58, of Pikeville, Kentucky, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to one count of conspiracy to defraud the United States, one count of conspiracy to escape and one count of conspiracy to retaliate against an informant. Sentencing is set for Sept. 7 at 1 p.m. ET.
“At the Department of Justice, a key mission is protecting the federal treasury on behalf of the American people,” said Attorney General Sessions. “In this case, the defendant’s scheme fraudulently obligated the Social Security Administration to pay over half a billion dollars in lifetime disability benefits, and then he fled the country. Thanks to the hard work of the FBI, DOJ lawyers, and our partners with the Social Security Administration, the IRS-CI, HHS-OIG, and our allies in Honduras, this criminal plot did not fully succeed. This case shows yet again that to track down criminals and hold them to account, this Department will cross continents and work with authorities around the globe.”
“The SSA-OIG thanks all of our law enforcement partners for their assistance during the investigation of Mr. Conn’s fraud scheme and subsequent efforts to locate and apprehend Mr. Conn,” said SSA-OIG Special Agent in Charge McGill. “Despite his best efforts to escape justice, Mr. Conn is ultimately being held accountable for defrauding SSA and U.S. taxpayers.”
“Eric Conn preyed upon the sick and vulnerable for his personal gain,” said FBI Special Agent in Charge Hess. “Rather than face the consequences of his crimes, he chose to flee and attempted to hide from those he had betrayed. Today’s plea will ensure he is now held accountable.”
“When individuals are approved for certain social security benefits, they automatically became entitled to Medicare and Medicaid,” said HHS-OIG Special Agent in Charge Jackson. “As a result, a large portion of Conn’s fraudulent scheme drained federal health care plans and cheated needy patients out of the limited dollars available for these vital taxpayer-funded programs.”
According to the plea, from October 2004 to December 2017, Conn participated in a scheme with former SSA administrative law judge David Black Daugherty, multiple doctors, including clinical psychologist Alfred Bradley Adkins, and others to submit thousands of falsified medical documents to the SSA to fraudulently obtain disability benefits totaling more than $550 million for thousands of individuals. According to the plea, upon a former SSA employee discovering and providing information about the scheme to federal agents, Conn and former SSA administrative law judge Charlie Paul Andrus conspired and acted to have the former SSA employee terminated in an effort to discredit the employee. Finally, Conn admitted that after pleading guilty in March 2017, and prior to being sentenced on June 2, 2017, he fled the country with the help of Curtis Lee Wyatt by severing the electronic monitoring device from his ankle and fleeing across the Mexican border.
Conn was originally charged in April 2016, along with Daugherty and Adkins, in an 18-count indictment with conspiracy to commit mail and wire fraud and other related offenses in connection with the disability fraud scheme. Conn subsequently pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and he was sentenced in absentia on July 14, 2017 to 12 years in prison on those charges. After his flight from the United States, Conn was charged, along with Wyatt, in September 2017, in a seven-count indictment with conspiracy to escape, escape and other related offenses. On Dec. 5, 2017, Conn was returned to the United States from Honduras after being apprehended by Honduran authorities. Conn’s plea today is expected to resolve the outstanding charges against him. In addition to the 12 years in prison Conn is currently serving, he now faces an additional 15 years in prison. As part of the plea agreement, Conn agreed to recommend to the Court at sentencing that the Court sentence him to the maximum possible sentence, a 15-year sentence, and run that sentence consecutive to the 12-year sentence previously imposed, for a total of 27 years in prison.
Andrus pleaded guilty in June 2016 to a one-count information charging him with conspiracy to retaliate against an informant, and was sentenced Aug. 7, 2017 to six months in prison. Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on Aug. 25, 2017, to four years in prison. Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements, and was sentenced on Sept. 22, 2017, to 25 years in prison. Wyatt pleaded guilty in March 2018, and is scheduled to be sentenced on June 29.
The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating the case. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorneys Elizabeth G. Wright of the District of Maryland and Trey Alford of the Western District of Missouri as well as Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Four Plead Guilty to Tax Charges in Postal Service Vehicle Maintenance InvestigationRead the Press Release
PROVIDENCE, RI – Four individuals pleaded guilty in U.S. District Court in Providence to federal tax charges arising out of an investigation into payments to vendors who performed maintenance on United States Postal Service vehicles in Rhode Island, announced United States Attorney Stephen G. Dambruch, Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.
On Friday, June 1, 2018, Ronald Long, 54, and Cheryl Melton Long, 48, of Warwick, each pleaded guilty to one count of conspiracy to defraud the United States.
On May 23, 2018, Gary Neirinckx, 60, a now retired Postmaster from Warwick, pleaded guilty to one count of filing a false tax return.
On February 22, 2018, Donald Tonks, 57, pleaded guilty to one count of failure to file a tax return.
According to information presented to the Court, the cases originated as a fraud investigation related to billing by companies controlled by Ronald and Cheryl Long, which functioned as vendors to the United States Postal Service by providing mechanical repair work to Postal Service vehicles. The Longs’ business utilized various corporate names, however virtually all of the Long’s business derived from work performed on United States Postal Service vehicles. By dollar amount, the Longs’ businesses were the largest non-fuel vendor of the Postal Service in Rhode Island between 2006 and 2014. Ronald Long directed and controlled the business; Cheryl Long was primarily responsible for maintaining financial records and paying bills.
Gary Neirinckx was a Postal service employee who held various roles with the Postal Service including Postmaster in Warwick. In 2015, while still employed by the Postal Service, Neirinckx opened a business in Warwick co-owned by Ron and Cheryl Long. Neirinckx had utilized Long’s services at the Warwick Post Office and subsequently referred the Longs to other postmasters.
A review by investigators of the Longs’ bank records between 2010 and 2015, showed that the Longs were paying nearly all of their personal living expenses out of their business bank account, including rent for their residence, utilities, expenses related to their children and expenses related to their boat. The investigation also revealed the Longs were paying employees in cash and that a series of checks were found to be made out to cash and with the notation of “G” on the memo line. The investigation revealed that the checks were cashed and the same amounts were simultaneously deposited into Neirinckx’s personal bank account by Cheryl Long.
At the time of his guilty plea, Neirinckx admitted that he recommended the Longs and their mechanical services to other postmasters, but that he never ordered work be sent their way. In return for doing so he accepted payment from the Longs. The investigation determined that the Longs paid Neirinckx $66,300, which he failed to report as income on his tax returns. Neirinckx also admitted that deductions for charitable contributions he reported on his tax returns were fabricated.
Ronald and Cheryl Long provided false information to their tax return preparer which resulted in the filing of false tax returns, which did not accurately report their individual and household income. The Long’s did not file a federal income tax return for the year 2011, and filed various false corporate and income tax returns for the years 2012 through 2015.
Donald Tonks was an employee of the Longs until approximately September 2014, when he and the Longs agreed to divide the business with the Postal Service. Tonks started his own business and generally took over services for post offices in southern Rhode Island, such as South Kingstown, Wakefield, Charlestown and Westerly. Around the time Tonks started working for the Longs, he stopped filing federal income tax returns, despite being required to do so.
On May 23, 2018, Donald Tonks was sentenced by United States Magistrate Judge Lincoln D. Almond to two years probation, ordered to perform 200 hours of community service, and pay full restitution to the IRS in the amount of $92,624.
Gary Neirinckx is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 7, 2018. Ronald Long and Cheryl Long are scheduled to be sentenced by Chief Judge William E. Smith on September 28, 2018.
The cases are being prosecuted by Assistant U.S. Attorneys John P. McAdams and Denise M. Barton. The matter was investigated by the United States Postal Service-Office of Inspector General, and the IRS-Criminal Investigation Division.
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Fort Myers Pain Management Physician Pleads Guilty to Healthcare Offenses and Agrees to $2.8 Million Civil Settlement with the United StatesRead the Press Release
Fort Myers, FL – Dr. Michael Frey, M.D. (46, Fort Myers) has pleaded guilty to two counts of conspiracy to receive healthcare kickbacks. He faces a maximum penalty of five years in federal prison for each count. Dr. Frey also faces a term of supervised release of up to three years for each count. A sentencing date has not yet been set.
In addition to his guilty plea, Dr. Frey has agreed to a civil settlement under which he will pay $2.8 million to the United States to resolve allegations that he violated the False Claims Act in a number of ways, including receiving illegal kickbacks and by ordering medically unnecessary laboratory tests.
During the relevant period, Dr. Frey was a practicing interventional pain management specialist and one of the two principal owners of Advanced Pain Management Specialists, P.A., which is located in Fort Myers.
According to the plea agreement, beginning in 2010, Dr. Frey conspired with the owners of A&G Spinal Solutions, LLC, a durable medical equipment provider operating in Fort Myers, to receive compensation in exchange for referrals to A&G Spinal. Dr. Frey was paid a percentage of A&G Spinal’s profits based on his referrals and referrals from other providers at Advanced Pain. A&G Spinal rewarded Dr. Frey through checks made payable to his wife. Through this arrangement, A&G Spinal created the impression that Mrs. Frey was an employee of A&G Spinal, when she was not. The two principals of A&G Spinal, Ryan Williamson and William Pierce, have pleaded guilty to conspiring to pay healthcare kickbacks to Dr. Frey and are currently awaiting sentencing.
In addition, from 2013 to 2015, Dr. Frey also received cash payments from Ryan Williamson in exchange for referrals of compound pharmaceutical pain cream prescriptions. Williamson has also pleaded guilty for his role in this arrangement.
In his plea agreement, Dr. Frey also admitted that he had received kickbacks in the form of speaker fees paid to him in connection with his participation in largely bogus Insys Therapeutics, Inc. speaker event programs. Insys manufactures a fentanyl sublingual spray known as SUBSYS. Insys paid kickbacks to Dr. Frey to induce him to write prescriptions for their product.
The civil settlement announced today also resolves allegations that, between 2013 and 2016, Dr. Frey caused the submission of false claims to Medicare and TRICARE by ordering definitive Urine Drug Testing (“UDT”) in circumstances where such testing was not reasonable and medically necessary. Definitive UDT testing was financially lucrative for the Advanced Pain physicians because it was performed at Advanced Pain’s own in-house laboratory and was billed by the practice.
In addition, the civil settlement resolves kickback allegations associated with anesthesia services provided by Anesthesia Partners of SWFL, LLC that was owned by Dr. Frey and his partner Dr. Jonathan Daitch. Anesthesia Partners provided anesthesia services exclusively for the procedures performed by the Advanced Pain physicians. They contracted with Certified Registered Nurse Anesthetists (“CRNAs”) to provide the anesthesia services. These CRNAs were paid a contracted rate, and Anesthesia Partners would bill Medicare and TRICARE directly for the anesthesia services they provided. This arrangement resulted in improper reimbursements to Dr. Frey as one of the owners of Anesthesia Partners. The United States contends that Dr. Frey’s ownership interest in Anesthesia Partners, and the funds he received through this ownership interest, induced him to refer his patients for anesthesia services to Anesthesia Partners.
“This was an alarming case of a physician who abused his position of trust for money,” said U.S. Attorney Chapa Lopez. “This global resolution is a great example of a coordinated healthcare fraud enforcement effort by our criminal and civil divisions, and of our commitment to hold healthcare providers accountable when they violate the law.”
“Dr. Frey deluded himself into believing that accepting thinly-veiled bribes was an easy path to riches. Instead he faces years in prison and a multi-million dollar settlement,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Dr. Frey’s fate shows, yet again, that those intent on stealing from government health programs will be held accountable.”
“This plea agreement and settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that medical service providers do not unjustly enrich themselves by wasting and diverting precious taxpayer dollars. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE,” said Special Agent in Charge John F. Khin, Southeast Field Office.
This case is being prosecuted criminally by Assistant United States Attorneys Rachel Jones and Simon Eth and civilly by Assistant United States Attorney Kyle S. Cohen, with assistance from the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General and the U.S. Postal Service Office of Inspector General.
Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former U.S. Navy Sailor Pleads Guilty to Credit Card Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Jarrod M. Langford, 26, of Orlando, Florida, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiracy to commit credit card fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Langford, while serving with the United States Navy in Lemoore, California, conspired with others to fraudulently acquire and use credit card account numbers to purchase and resell over the internet voucher codes that were redeemable for consumer items such as wristwatches, jewelry, computer software applications and electronic devices. Langford used various methods to fraudulently acquire other peoples’ credit card information, including purchasing the information over the internet. In September 2012, Langford fraudulently possessed more than 2,500 records of credit card account numbers and the associated account holders’ personal identifying information, such as names, addresses, telephone numbers, and email addresses.
To hide his actual location and conceal his involvement in his fraudulent activities, Langford installed an application on his computers that would establish a virtual private network (VPN) in order to conduct anonymous encrypted internet sessions and give the appearance that he was located outside of California. In his plea agreement, Langford admitted to fraudulently purchasing approximately $340,000 of consumer products and unauthorized voucher codes redeemable for such items.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Langford is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on September 9, 2018. Langford faces a maximum statutory penalty of five years in prison for the conspiracy charge, an additional two years in prison for the aggravated identity theft charge, and a $250,000 fine. 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.
Former Defense Intelligence Officer, Resident of Utah Arrested for Attempted EspionageRead the Press Release
SALT LAKE CITY – Ron Rockwell Hansen, 58, a resident of Syracuse, Utah, and a former Defense Intelligence Agency (DIA) officer, was arrested Saturday afternoon on federal charges including the attempted transmission of national defense information to the People’s Republic of China. FBI agents took Hansen into custody while he was on his way to Seattle-Tacoma International Airport in Seattle, Washington, to board a connecting flight to China.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney John Huber for the District of Utah, and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Field Office announced the charges.
“Ron Rockwell Hansen is a former Defense Intelligence Agency officer who allegedly attempted to transmit national defense information to the People's Republic of China's intelligence service (PRCIS) and also allegedly received hundreds of thousands of dollars while illegally acting as an agent of China,” said Assistant Attorney General Demers. “His alleged actions are a betrayal of our nation's security and the American people and are an affront to his former intelligence community colleagues. Our intelligence professionals swear an oath to protect our country’s most closely held secrets and the National Security Division will continue to relentlessly pursue justice against those who violate this oath.”
“These allegations are very troubling in their description of conduct that runs contrary to how we identify ourselves as Americans,” said U.S. Attorney Huber. “On the other hand, revealed details of this lengthy investigation reflect effective performance and dedication on the part of the men and women of the FBI and their partners.”
“The allegations in this complaint are grave as it appears Mr. Hansen engaged in behavior that betrayed his oath and his country,” said Special Agent in Charge Barnhart. “This case drives home the troubling reality of insider threats and that current and former clearance holders will be targeted by our adversaries. The FBI will aggressively investigate individuals who put our national security at risk.”
Hansen will have an initial appearance Monday, at 5 p.m. EDT/3 p.m. MDT in U.S. District Court in Seattle. He is charged in a 15-count complaint, signed by Chief Federal Magistrate Judge Paul M. Warner in Utah Saturday, with attempting to gather or deliver national defense information to aid a foreign government. The complaint also charges Hansen with acting as an unregistered foreign agent for China, bulk cash smuggling, structuring monetary transactions, and smuggling goods from the United States.
According to court documents:
Hansen retired from the U.S. Army as a Warrant Officer with a background in signals intelligence and human intelligence. He speaks fluent Mandarin-Chinese and Russian. DIA hired Hansen as a civilian intelligence case officer in 2006. Hansen held a Top Secret clearance for many years, and signed several non-disclosure agreements during his tenure at DIA and as a government contractor.
Between 2013 and 2017, Hansen regularly traveled between the United States and China, attending military and intelligence conferences in the U.S. and provided the information he learned at the conferences to contacts in China associated with the PRCIS. Hansen received payments for this information by a variety of methods, including cash, wires and credit card transactions. He also improperly sold export-controlled technology to persons in China. From May of 2013 to the date of the complaint, Hansen received not less than $800,000 in funds originating from China.
In addition, Hansen repeatedly attempted to regain access to classified information after he stopped working on behalf of the U.S. Government. Hansen’s alerting behavior ultimately resulted in the participation of a law enforcement source from whom Hansen solicited classified information. Hansen disclosed to the source his ongoing contact with the PRCIS, including in-person meetings with intelligence officers during his trips to China. Hansen told the source the types of information his contacts in China were interested in and discussed working with the source to provide such information to the PRCIS. Hansen suggested he and the source would be handsomely paid.
Complaints are not findings of guilt. An individual charged in a complaint is presumed innocent unless or until convicted of the crimes in court. Hansen faces a maximum penalty of life in prison, if convicted of attempted espionage. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
Special agents of the FBI, IRS, U.S. Department of Commerce, the U.S. Department of Defense, U.S. Army Counterintelligence, and the Defense Intelligence Agency are involved in the investigation. U.S. Army Counterintelligence, the FBI Seattle Division, the IRS, the U.S. Department of Commerce, and the Weber County Sheriff’s Office assisted in law enforcement operations Saturday in Utah and Seattle.
Assistant U.S. Attorneys Robert A. Lund, Mark K. Vincent and Karin Fojtik of the District of Utah, and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Alicia H. Cook, a former Assistant U.S. Attorney in Utah and now a trial attorney in the National Security Division, is assisting with the case.
Prosecutors from the U.S. Attorney’s Office for the Western District of Washington (Seattle) assisted with this case.
Former Defense Intelligence Officer Arrested for Attempted EspionageRead the Press Release
Ron Rockwell Hansen, 58, a resident of Syracuse, Utah, and a former Defense Intelligence Agency (DIA) officer, was arrested Saturday afternoon on federal charges including the attempted transmission of national defense information to the People’s Republic of China. The FBI agents took Hansen into custody while he was on his way to Seattle-Tacoma International Airport in Seattle to board a connecting flight to China.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney John Huber for the District of Utah, and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Field Office announced the charges.
“Ron Rockwell Hansen is a former Defense Intelligence Agency officer who allegedly attempted to transmit national defense information to the People's Republic of China's intelligence service (PRCIS) and also allegedly received hundreds of thousands of dollars while illegally acting as an agent of China,” said Assistant Attorney General Demers. “His alleged actions are a betrayal of our nation's security and the American people and are an affront to his former intelligence community colleagues. Our intelligence professionals swear an oath to protect our country’s most closely held secrets and the National Security Division will continue to relentlessly pursue justice against those who violate this oath.”
“These allegations are very troubling in their description of conduct that runs contrary to how we identify ourselves as Americans,” said U.S. Attorney Huber. “On the other hand, revealed details of this lengthy investigation reflect effective performance and dedication on the part of the men and women of the FBI and their partners.”
“The allegations in this complaint are grave as it appears Mr. Hansen engaged in behavior that betrayed his oath and his country,” said Special Agent in Charge Barnhart. “This case drives home the troubling reality of insider threats and that current and former clearance holders will be targeted by our adversaries. The FBI will aggressively investigate individuals who put our national security at risk.”
Hansen will have an initial appearance Monday, at 5 p.m. EDT in U.S. District Court in Seattle. He is charged in a 15-count complaint, signed by Chief Federal Magistrate Judge Paul M. Warner in Utah Saturday, with attempting to gather or deliver national defense information to aid a foreign government. The complaint also charges Hansen with acting as an unregistered foreign agent for China, bulk cash smuggling, structuring monetary transactions and smuggling goods from the United States.
According to court documents:
Hansen retired from the U.S. Army as a Warrant Officer with a background in signals intelligence and human intelligence. He speaks fluent Mandarin-Chinese and Russian. DIA hired Hansen as a civilian intelligence case officer in 2006. Hansen held a Top Secret clearance for many years, and signed several non-disclosure agreements during his tenure at DIA and as a government contractor.
Between 2013 and 2017, Hansen regularly traveled between the United States and China, attending military and intelligence conferences in the U.S. and provided the information he learned at the conferences to contacts in China associated with the PRCIS. Hansen received payments for this information by a variety of methods, including cash, wires and credit card transactions. He also improperly sold export-controlled technology to persons in China. From May of 2013 to the date of the complaint, Hansen received not less than $800,000 in funds originating from China.
In addition, Hansen repeatedly attempted to regain access to classified information after he stopped working on behalf of the U.S. Government. Hansen’s alerting behavior ultimately resulted in the participation of a law enforcement source from whom Hansen solicited classified information. Hansen disclosed to the source his ongoing contact with the PRCIS, including in-person meetings with intelligence officers during his trips to China. Hansen told the source the types of information his contacts in China were interested in and discussed working with the source to provide such information to the PRCIS. Hansen suggested he and the source would be handsomely paid.
Complaints are not findings of guilt. An individual charged in a complaint is presumed innocent unless or until convicted of the crimes in court. Hansen faces a maximum penalty of life in prison, if convicted of attempted espionage. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
Special agents of the FBI, IRS, U.S Department of Commerce, the Department of Defense, U.S. Army Counterintelligence, and the Defense Intelligence Agency are involved in the investigation. U.S. Army Counterintelligence, the FBI Seattle Division, the IRS, the U.S. Department of Commerce, and the Weber County Sheriff’s Office assisted in law enforcement operations Saturday in Utah and Seattle.
Assistant U.S. Attorneys Robert A. Lund, Mark K. Vincent and Karin Fojtik of the District of Utah, and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Prosecutors from the U.S. Attorney’s Office for the Western District of Washington assisted with this case.
Former Background Investigator for Federal Government Pleads Guilty to Making a False StatementRead the Press Release
WASHINGTON – Jeffrey S. Kahn, 51, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Jessie K. Liu and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management.
Kahn, of Saratoga Springs, Utah, pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Ketanji Brown Jackson scheduled sentencing for Aug. 16, 2018. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of the plea, Kahn has agreed to pay $77,649 in restitution to the federal government.
According to a statement of offense submitted to the Court, Kahn was employed by KeyPoint Government Solutions as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services, which now is known as OPM’s National Background Investigations Bureau. All of the criminal conduct in this case took place while Kahn worked under contract on behalf of Federal Investigative Services.
Between May 2013 and August 2013, in more than 18 Reports of Investigations on background investigations, Kahn represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
Kahn’s false representations have required OPM to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $77,649 to the U.S. government.
OPM has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Kahn, 23 other background investigators and two record checkers have been convicted of charges.
With a staff of more than 9,900 federal and contract employees, the National Background Investigations Bureau (NBIB) conducts approximately 95 percent of all personnel background investigations for the federal government. NBIB processed over 2.5 million background investigations in the 2017 fiscal year.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the plea, U.S. Attorney Liu and Acting Inspector General Vint praised the efforts of Special Agent Christopher J. Sulhoff, OPM, Office of the Inspector General, and Philip Kroop and Kevin Cassidy, OPM, NBIB. They also acknowledged the work of Paralegal Specialists Aisha Keys and Joshua Fein of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
Florida Man Sentenced to 26 Months in Prison for Conspiring to Illegally Export Defense Articles to RussiaRead the Press Release
Vladimir Nevidomy, 32, of Hallandale Beach, Florida, was sentenced to 26 months in prison, to be followed by three years of supervised release, for conspiring to illegally export military-grade night vision and thermal vision devices, and ammunition primers to Russia.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement after sentencing by U.S. District Judge Kathleen Williams.
According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State. Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export.
After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to his co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida. In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia.
On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia. On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok. These ammunition primers were seized by U.S. Customs and Border Protection.
These night vision rifle scopes, thermal monocular and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List. A certified license history check revealed that neither Nevidomy, a Ukraine-born naturalized U.S. citizen, nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers.
Nevidomy was sentenced today to concurrent time, in Case No. 17-CR-60137, after previously pleading guilty to passport fraud and conspiracy to commit passport fraud in the Southern District of Florida.
Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and HSI. This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced to 26 Months in Prison for Conspiring to Illegally Export Defense Articles to RussiaRead the Press Release
Vladimir Nevidomy, 32, of Hallandale Beach, Florida, was sentenced to 26 months in prison, to be followed by three years of supervised release, for conspiring to illegally export military-grade night vision and thermal vision devices, and ammunition primers to Russia.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office, and Special Agent in Charge Mark Selby of Homeland Security Investigation’s (HSI) Miami Field Office made the announcement after sentencing by U.S. District Judge Kathleen Williams.
According to information contained in court documents, from as early as April 2013 through November 2013, customers in Russia contacted Nevidomy by email requesting night vision rifle scopes, thermal monoculars and ammunition primers, all of which were on the U.S. Munitions List and subject to export control by the U.S. Department of State. Nevidomy proceeded to obtain at least three ATN MARS 4x4 night-vision rifle scopes and an ODIN 61BW thermal multi-purpose monocular from U.S. vendors by falsely representing to the vendors that the items were not for export.
After the U.S. vendors sent the night vision devices to Nevidomy in South Florida, he exported them to his co-defendant in Russia by either concealing the defense articles in household goods shipments sent through a freight forwarding company or using a private Russian postal service that operated in South Florida. In June 2013, Nevidomy aided and abetted the export of the ATN MARS 4x4 night-vision rifle scopes from the U.S. to the co-defendant in Russia, and in August 2013, he exported the ODIN 61BW thermal multi-purpose monocular from the U.S. to the co-defendant in Russia.
On or about July 19, 2013, the same co-defendant sent an email to Nevidomy requesting 1,000 large-rifle ammunition primers to be shipped to Vladivostok, Russia. On or about Oct. 2, 2013, Nevidomy attempted to export 1,000 Sellier & Bellot ammunition primers from the U.S. to the co-defendant in Vladivostok. These ammunition primers were seized by U.S. Customs and Border Protection.
These night vision rifle scopes, thermal monocular and ammunition primers required a license or other authorization from the U.S. Department of State before being exported from the U.S. since they were on the U.S. Munitions List. A certified license history check revealed that neither Nevidomy, a Ukraine-born naturalized U.S. citizen, nor his associates ever applied or attempted to apply for an export license from the State Department for the night-vision equipment or ammunition primers.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and HSI. This case was prosecuted by Assistant U.S. Attorneys Michael Thakur and Rick Del Toro of the Southern District of Florida, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
Five Men Indicted in Louisiana for Conspiracy to Smuggle BirdsRead the Press Release
Five men have been charged in New Orleans with crimes related to illegally exporting birds protected under the Convention on International Trade in Endangered Species (CITES) from the United States to Taiwan. William McGinness, 59, of Buena Park, California; Paul Tallman, 55, of Destreham, Louisiana; Rene Rizal, 62, of La Mirada, California; Wayne Andrews, 46, of Royal Oaks, California and Alex Madriaga, 76, of Buena Park, California; were each indicted in federal court in the eastern District of Louisiana today.
On May 31, 2018, a five-count indictment was returned charging McGinness, Tallman, Rizal, Andrews and Madriaga with conspiracy to smuggle CITES-protected birds from the United States to Taiwan. McGuinness was also charged with smuggling birds to Taiwan and three counts of making and submitting false records under the Lacey Act, and Tallman was charged with smuggling and one count of making and submitting false records under the Lacey Act.
The indictment alleges, among other things, that McGinness, a resident of California, and his co-conspirators created false statements and submitted them to the United States Fish and Wildlife Service (USFWS) in order to illegally export CITES-protected birds from the Port of New Orleans to Taiwan. The shipment included 90 CITES-protected birds, including parrots, macaws, cockatoos and corellas. Several of the birds were in crates that were falsely labeled. The USFWS seized 14 of the birds at the airport in Houston, Texas before they were exported.
The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service.
“These indictments demonstrate our commitment, shared with the U.S. Fish and Wildlife Service, to investigate and prosecute those engaged in illegal trade of protected animals,” said Acting Assistant Attorney General Wood. “We will continue to collaborate with our partners at the federal, state and local levels to prosecute wildlife smuggling.”
"Today’s indictments were the result of a complex investigation into the wildlife trafficking of protected birds,” said Acting Assistant Director Grace. “Wildlife trafficking is a serious crime that is detrimental to species around the world. I am very proud of our special agents and wildlife inspectors who helped bring these defendants to justice."
The United States and approximately 182 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Species are listed on “appendices,” based on the level of protection necessary to protect the species.
The case was investigated by the USFWS and the Justice Department’s Environmental Crimes Section. The government is represented by Environmental Crimes Section Trial Attorney Mary Dee Carraway.
Five Florida residents admit to fraud charges involving gas station skimmersRead the Press Release
CLARKSBURG, WEST VIRGINIA – Five Florida residents have admitted to their involvement with a gas station skimming fraud scheme, United States Attorney Bill Powell announced.
Three pled guilty to one count each of “Conspiracy to Commit Access Device Fraud” and one count each of “Access Device Fraud-Use of Unauthorized Access Device.” They are:
• Meylan Montalvo Gomez, of Hialeah, Florida, age 27
• Yosan Pons Sosa, of Miami, Florida, age 29
• Lazaro Serrano Diaz , of Miami, Florida, age 27Naudi Reyes Fernandez, of Miami, Florida, age 37, pled guilty to one count of “Conspiracy to Commit Access Device Fraud” and one count of “Access Device Fraud-Possession of Device-Making Equipment.”
Yarai Fuentes Quinones, of Hialeah, Florida, age 26, pled guilty today to one count of “Access Device Fraud-Use of Unauthorized Access Device.”
Each admitted to their roles in a conspiracy spanning four states that involved using skimming devices at gas pumps, using technology to upload the account information, and creating fraudulent cards with said accounts to make unauthorized transactions at different businesses in West Virginia and elsewhere.
Gomez, Sosa, and Diaz are each facing up to up to seven and a half years incarceration and fine of up to $125,000 for the conspiracy count and up to 10 years incarceration and a fine of up to $250,000 for the access device count. Fernandez is facing up to seven and a half years incarceration and fine of up to $125,000 for the conspiracy count and up to 15 years incarceration and a fine of up to $250,000 for the possession of a device count. Quinones is facing 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.
The United States is also seeking forfeiture of the following:
a. approximately thirty-three (33) gift cards containing an unknown value; b. approximately $72,495.73 in United States Currency; c. approximately $28,498.00 worth of Western Union money orders; d. approximately $10,300.00 worth of MoneyGram money orders; e. one magnetic stripe card reader-writer-encoder f. two laptops g. six cell phones
The United States is also seeking a money judgement against each of the defendants.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation, United States Secret Service, West Virginia State Police and the Monongalia County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Dyno-Nobel, Inc. Ordered to Pay $250,000 for Failing to Notify Federal Authorities of Anhydrous Ammonia DischargesRead the Press Release
PORTLAND, Ore. – Today in federal court, U.S. District Judge Michael H. Simon ordered Dyno Nobel, Inc., the owner of a urea plant near St. Helens, Oregon, to pay $250,000 for violating section 103(b) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), following a series of large-scale ammonia discharges in July and August 2015. Dyno Nobel will also serve a two-year term of probation for the class-E felony.
According to Dyno Nobel’s plea agreement with the government, the company’s St. Helens plant discharged more than six tons of anhydrous ammonia vapor—a hazardous substance—into the air over the course of a three-day period starting on July 30, 2015. A subsequent investigation revealed that several failed attempts to restart the urea plant had caused a series of massive discharges from the facility, triggering numerous complaints of foul odors, eye irritation, and difficulty breathing from citizens of nearby Columbia City, Oregon.
Although Dyno Nobel personnel knew that excessive ammonia emissions were occurring, no effort was made to alert the authorities at the National Response Center until August 7, 2015—more than a week after the first discharge. Federal law requires such reports to be made “immediately.”
Dyno Nobel, Inc. is a Delaware corporation and wholly owned subsidiary of IPL Group. The company previously pleaded guilty to the violation on February 23, 2018.
This case was investigated by EPA Criminal Investigations; it was prosecuted by Assistant U.S. Attorney Ryan W. Bounds and Special Assistant U.S. Attorney Karla Gebel Perrin.
Dr. Pepper Executive Sentenced to Prison for Fraud, Tax EvasionRead the Press Release
PROVIDENCE, RI – A national sales executive for Dr. Pepper/Seven Up, Inc., a subsidiary of Dr. Pepper Snapple Group (Dr. Pepper), was sentenced Friday to 33 months in federal prison for submitting more than $1.7 million dollars worth of fraudulent invoices to Dr. Pepper through a promotions and marketing company he formed in his wife’s name.
In February, Michael Lynch, 53, of Newport, R.I., admitted to the Court that in April 2003, he incorporated Seacoast Unlimited Marketing and Promotions, LLC (Seacoast) in his wife’s name, and through Seacoast, from January 2007 until November 29, 2017, submitted to Dr. Pepper more than 200 fraudulent invoices totaling $1,716,949 for services such as promotional signs and banners, delivery of sample products to retail stores and the offering of discount prices to retail stores. None of the services billed to and paid for by Dr. Pepper were provided.
Additionally, Lynch admitted that he failed to declare any of the income he derived through Seacoast on the joint federal tax filings he filed with his wife. The tax loss applicable to the defendant’s conduct totals $386,320.
Lynch pleaded guilty on February 27, 2018, to wire fraud and filing a false tax return.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Lynch to serve 2 years supervised release upon completion of his term of incarceration, to pay full restitution to Dr. Pepper, and to pay taxes owed to the Internal Revenue Service.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 33 – 41 months. The government recommended the court impose a sentence of 33 months incarceration. Lynch’s sentence is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.
The matter, investigated by the FBI and by IRS Criminal Investigation, was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for stealing the identity of a U.S. citizen from Puerto Rico.
Wilkin Pena Soto, 31, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years and one day in prison and three years of supervised release. Pena Soto will also be subject to deportation proceedings. In March 2018, Pena Soto pleaded guilty to one count of passport fraud and one count of aggravated identity theft.
In August 2017, Pena Soto applied for a passport at an Attleboro Post Office purporting to be a U.S. citizen. On the application, he represented that the name, Social Security number, and date of birth of a Puerto Rican man were his. He supported the application with a birth certificate and Massachusetts driver’s license in the U.S. citizen’s name. Pena Soto also committed aggravated identity theft in connection with the passport application.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Admits to Being Armed Career Criminal, Trafficking Fentanyl, Heroin, Cocaine and MethRead the Press Release
PROVIDENCE – A Dominican national convicted and incarcerated multiple times on federal and state drug trafficking charges today admitted in federal court to being an armed career criminal while trafficking fentanyl, heroin, cocaine and methamphetamine, announced United States Attorney Stephen G. Dambruch andBrian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
A 10-month Rhode Island DEA Drug Task Force investigation into the drug trafficking activities of Marcio Alexandro Martinez-Lara, 45, of Providence, included numerous controlled purchases of fentanyl, heroin and cocaine from Martinez-Lara. On July 19, 2017, members of the DEA Drug Task Force, with the assistance of the Woonsocket, Cranston and Providence Police Departments, executed court-authorized search warrants at Martinez-Lara’s residence and business in Providence, a drug stash house he operated in Cranston, and two vehicles in his control.
During the searches law enforcement seized more than 1,182 grams of fentanyl, 1,148 grams of heroin, 106 grams of methamphetamine, 28 grams of cocaine and a loaded firearm. As members of law enforcement were preparing to execute the search warrants, agents and officers encountered and detained Martinez-Lara outside his stash house in Cranston. They seized 100 grams of fentanyl found concealed inside Martinez-Lara’s underwear.
According to court records, in October 1997, Martinez-Lara was convicted in U.S. District Court on cocaine trafficking charges and subsequently sentenced to 121 months in federal prison and 5 years supervised release; in April 1998, Martinez-Lara was convicted in Rhode Island state court on delivery of schedule I/II controlled substances and conspiracy charges and sentenced to 10 years in state prison – 18 months to serve with 102 months suspended with probation; in September 2012, Martinez-Lara was convicted in Rhode Island state court on delivery of schedule I/II controlled substances and obstruction of a police officer and sentenced to 5 years in state prison – 12 months to serve with 48 months suspended with probation.
On June 9, 2016, Martinez-Lara was arrested by Providence Police and released on bail on a charge of delivery of heroin. He was awaiting trial at the time of his arrest in this investigation by members of the DEA Drug Task Force.
At the time of his arrest, Martinez-Lara identified himself to law enforcement as being Sandro Martinez. Law enforcement has since determined that his actual name is Marcio Alexandro Martinez-Lara.
Martinez-Lara, who has been detained in federal custody since his arrest on July 19, 2017, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 20, 2017.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Destin Man Sentenced to 240 Months in Prison for Shipping Jewelry Stolen During Walton County BurglariesRead the Press Release
PENSACOLA, FLORIDA – Mark Joshua Mitchell, 40, of Destin, was sentenced today to 240 months in prison, after pleading guilty on June 22, 2017, to seven counts of interstate transportation of stolen property. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On various dates in 2015 and 2016, victims contacted the Walton County Sheriff’s Office to report that their residences had been burglarized and that jewelry and other items had been stolen during the burglaries. The victims reported six different burglaries in Santa Rosa Beach, Panama City Beach, and Destin. The stolen items included multi-carat diamond engagement rings, a three-piece platinum wedding ring set, other jewelry, cash, and Mexican gold coins. Mitchell then shipped diamonds taken from the rings or the entire stolen item to Missouri and Louisiana.
The investigation in this case was led by the Walton County Sheriff’s Office. The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) provided assistance. This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Clearwater Property Manager Sentenced for Equity Skimming and Bankruptcy FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Michael Rubino (59, Clearwater) to 13 months in federal prison for bankruptcy fraud and equity skimming. Rubino had pleaded guilty on January 31, 2018.
According to court documents, Rubino devised a scheme to defraud mortgage lenders that were holding recorded mortgage notes, as well as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Agency (“FHA”), which guaranteed the mortgage notes. In furtherance of his scheme, Rubino searched Pinellas County Clerk of Court records to find properties in various stages of foreclosure. He then contacted distressed homeowners who had already defaulted on their mortgages and had vacated their properties. Rubino offered to take control of, manage, and rent the properties to new tenants. Rubino told the homeowners that he would use the rental income he obtained to pay the mortgages and, in some instances, pay the homeowner a portion of the rent he collected. At no time did Rubino hold any legal or equitable interest in these properties, or have authorization from the mortgage lenders, Fannie Mae, or FHA, to rent out the properties. Further, he failed to remit any of the collected rent monies to FHA, as required by law.
Additionally, in order to prevent Fannie Mae and the mortgage lenders from lawfully foreclosing on properties secured by mortgage notes, Rubino engaged in a bankruptcy fraud scheme whereby he filed fraudulent bankruptcy petitions in the names of the distressed homeowners, without their knowledge or consent, just prior to the scheduled foreclosure sale. These fraudulent bankruptcies triggered the automatic stay provision of the bankruptcy code, preventing the mortgage note holders from conducting the foreclosure sale. The fraudulent bankruptcy petitions filed by Rubino allowed him to continue to collect rent monies to which he was not entitled.
This case was investigated by the U.S. Department of Housing and Urban Development - Office of Inspector and the Federal Housing Finance Agency - Office of Inspector General. The Office of the U.S. Trustee for the Middle District of Florida also provided substantial assistance. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Child Predator Sentenced to 144 Months in Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that Chief U.S. District Court Judge Brian A. Jackson sentenced ANDREW EASTERLY, age 21, of Baton Rouge, Louisiana, to serve 144 months in federal prison following his conviction for transportation of child pornography. EASTERLY will also be required to serve a 10-year term of supervised release and register as a convicted sex offender upon his release from prison.
This criminal case began when law enforcement officials received a tip that EASTERLY, utilizing user names “youngones” and “littleones69,” shared a number of sexually explicit images of children, ages 5 to 14, to an online social media website. A subsequent forensic examination of EASTERLY’s electronic devices revealed at least 300 additional images and videos of sexually explicit depictions of minors, including toddlers and prepubescent children. During the course of the investigation, law enforcement officials learned that EASTERLY had also produced his own child pornography involving at least seven different victims, ages 1 to 17. Most of the child pornography produced by EASTERLY was the result of him surreptitiously photographing and recording unaware children in various states of nudity and engaging in private, personal activities such as using the restroom, showering, or changing clothes at his college dorm and at his parent’s home.
U.S. Attorney Fremin stated, “Through his despicable and reprehensible actions, this defendant earned every bit of his 144-month prison sentence. Protecting our children from child predators like ANDREW EASTERLY will continue to be a top priority of this office. We look forward to continuing to work with the public and our excellent federal, state, and local law enforcement partners to aggressively pursue offenders who target the most vulnerable members of our community.”
“Individuals who engage in the trade of child pornography steal the innocence of children and re-victimize them each time the evidence of their exploitation is shared online,” said Homeland Security Investigations New Orleans Special Agent in Charge Jere T. Miles. “This case shows HSI investigators are actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”
This matter was a joint investigation between the United States Attorney’s Office, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the U.S. Department of Homeland Security – Homeland Security Investigations, with assistance from the Baton Rouge Police Department, and the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jamie A. Flowers, Jr.
Chicago Man Sentenced to 82 Months in Prison for Illegally Re-entering the U.S.Read the Press Release
SOUTH BEND – Jose Martin Garcia-Escobar (a.k.a. Jose Garcia), age 39, of Chicago, Illinois, was sentenced before South Bend District Court Robert L. Miller, Jr for illegally re-entering the U.S. after being deported and after being convicted of felony offenses, announced U.S. Attorney Kirsch.
Garcia was sentenced to 82 months in prison.
According to documents in this case, Garcia had been removed from the U.S. on three separate occasions with the last one being July 14, 2016. He has prior felony offenses of manufacture and delivery of cannabis along with being a felon in possession of a firearm.
This case was investigated by the FBI and was handled by Assistant U.S. Attorney Joel R. Gabrielse.
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California Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Everitt Aaron Jameson, 26, of Modesto, pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney McGregor W. Scott for the Eastern District of California made the announcement.
According to the plea agreement filed, beginning in or around September 2017 until around Dec. 20, 2017, Jameson voiced support for ISIS, knowing that the organization was engaging in terrorist activity and terrorism. Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.” Jameson also expressed support on-line for the Oct. 31, 2017, terrorist attack in New York City, as well as other terrorist attacks. In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they need done here and noted that his time in the military had trained him for combat and things of war. According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.
Later, he met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS and offered to carry out violent acts and provide financial support for the terrorist organization. Specifically, on Dec. 16, 2017, Jameson discussed what he could offer to the cause. Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack. He also noted that he could get PVC pipe, nails and powder for explosive devices, and asked for remote timing devices from that person. Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape. Jameson also offered to provide money to the cause.
Jameson is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on Sept. 4. If the Court accepts the plea agreement, the parties have agreed that the defendant should be sentenced to 15 years in prison and a life term of supervised release.
This case was investigated by the FBI. Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker of the Eastern District of California, and Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
Brooklyn Gang Member Convicted of Racketeering and Two MurdersRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Frank Smith, also known as “Fresh,” a member of a Coney Island-based street gang known as “Rival Impact,” on charges of racketeering and two counts each of murder-in-aid-of racketeering and causing a death through the use of a firearm. The verdict followed a three-week trial before United States District Judge Frederic Block. When sentenced, Smith faces two mandatory terms of life imprisonment for the murders of Terrance Serrano and Rashawn Washington.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“With today’s jury verdict, Frank Smith has been held accountable for murders and drug dealing arising out of his allegiance to a violent Brooklyn street gang,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work tirelessly to dismantle violent street gangs and to eradicate the menace they pose to our communities.” Mr. Donoghue thanked the agents and detectives from the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their outstanding investigative work on the case.
Between January 2000 and January 2014, Smith was a member of the Rival Impact street gang, a racketeering enterprise based at the Mermaid Houses in Coney Island. For more than a decade, the gang engaged in heroin and crack distribution and violence, including murders, attempted murders, robberies and assaults. Rival Impact had been at war for some time with members of “Thirty-O,” a street gang based in and around the Coney Island Houses. After a Rival Impact gang member Vincent Carmona was slain by “Thirty-O” crew members, Smith plotted killing members of Thirty-O, specifically Terrance Serrano and Rashawn Washington, whom he believed shot Carmona. On October 4, 2010, Smith and a Rival Impact gang member drove to East 19th Street in Manhattan where they found a parked car belonging to Serrano and Washington. After Serrano and Washington approached and entered the car, Smith ran to the car and opened fire, killing both men sitting inside.
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.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Maria Cruz Melendez, Jennifer M. Sasso and Josh Hafetz are in charge of the prosecution.
The Defendant:
FRANK SMITH (also known as “Fresh”)
Age: 33
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-346 (FB)
Berrien County Resident Sentenced to 36 Months in Prison for Federal Tax EvasionRead the Press Release
Lori Lynn Pawielski ordered to pay $511,433 to the Internal Revenue Service
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Lori Lynn Pawielski, 52, of Buchanan, Michigan, was sentenced to three years in federal prison for tax evasion. The Honorable Robert J. Jonker, U.S. District Judge, also ordered Pawielski to serve three years of supervised release following prison and to pay $511,433 in restitution to the IRS and $1,962,611 in restitution to private party victims.
Pawielski’s sentencing was the result of her pleading guilty to one count of attempting to evade or defeat tax for calendar year 2015 by preparing and signing a false and fraudulent Form 1040 tax return. The charge alleged that the Form 1040 tax return falsely claimed that her taxable income was $149,160 when in fact it was $330,166. The charge also alleged that the tax due and owing for calendar year 2015 was $84,516, not $28,941 as reported on the tax return. She admitted those facts, and also was held responsible for additional tax due and owing for calendar years 2009-2014.
Pawielski’s tax evasion arose out of her embezzlement of more than $1.9 million from her former employer between 2009 and 2016 by writing 271 checks to herself without authorization. She further admitted that she concealed her embezzlement by altering the company’s accounting software to make it appear those checks were issued to suppliers. Pawielski admitted that she failed to report that additional income to the IRS on her 2009-2015 federal tax returns.
U.S. Attorney Birge remarked, “Ms. Pawielski must pay a debt to society in terms of prison time and pay back her former employer what she stole and pay the government what she owes in taxes. The message should be clear here: Those who cheat on their taxes will be both brought to justice and made to pay what they owe. If you’re attempting to evade your taxes, we will work with the Internal Revenue Service to make sure you are held accountable and pay your fair share.”
This matter was investigated by the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant U.S. Attorney Christopher O’Connor.
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Berkeley County man admits to heroin chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Ross Valentine, of Martinsburg, West Virginia, has admitted to heroin distribution, United States Attorney Bill Powell announced.
Valentine, age 35, pled guilty one count of “Aiding and Abetting Possession With Intent to Distribute Heroin.” Valentine admitted to possessing and distributing heroin in September 2017 in Berkeley County.
Valentine faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Lara Omps-Botteicher and Special Assistant U.S. Attorney Elizabeth Grant, also with the West Virginia Attorney General’s Office, are prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney General Sessions Announces New Assistant United States Attorney PositionsRead the Press Release
SALT LAKE CITY – Attorney General Jeff Sessions and U.S. Attorney for the District of Utah John W. Huber announced Monday that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce immigration laws, and help roll back the devastating opioid crisis. The announcement was made on the 500th day of the Trump Administration.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys (AUSAs) to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement attorneys, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction and Litigation Task Force, which targets the opioid crisis at every level of the distribution system.
Utah will get six attorney positions from the new allocations. Three of these AUSAs will target violent crime prosecutions, two will focus on immigration crimes, and one will handle civil enforcement cases, Huber says.
“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.”
“President Trump and Attorney General Sessions have provided key positions to assist my office in carrying out our responsibilities in Utah. The U.S. Attorney’s Office in Utah strives to be a high-performing office, with focus on productivity, efficiency, and effectiveness in administering justice. Today’s announcement of these new positions may also be viewed as recognition of Utah’s successful efforts,” Huber said today. “We will put these positions to good use as we continue our commitment to reducing violent crime in Utah neighborhoods.”
Attorney General Sessions Announces 311 New Federal Prosecutor PositionsRead the Press Release
ALBANY, NEW YORK – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and United States Attorney Grant Jaquith 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 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.”
In the Northern District of New York, three new AUSAs will be hired: one new AUSA will focus on violent crime, one will focus on civil enforcement, and one will focus on prosecuting immigration crimes.
United States Attorney Grant Jaquith said: “We are grateful to Attorney General Sessions for allocating three additional Assistant United States Attorneys to the Northern District of New York. These reinforcements will enhance our vigorous efforts to curtail violent crime, combat the opioids epidemic, and enforce criminal immigration laws throughout our large district, including our 310-mile border with Canada.”