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30 May 2018
Doctor Employed by FDNY at World Trade Center Monitoring Clinics Charged with Stealing $156,757 in Unearned SalaryRead the Press Release
Earlier today, a complaint was unsealed in federal court in Brooklyn charging Michael Poyin Chang, a medical doctor, with engaging in a scheme to steal wages in connection with his employment by the New York City Fire Department (FDNY) at World Trade Center Monitoring Clinics in Orange County, New York, and Queens, New York. Dr. Chang was arrested today and is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the arrest.
“Dr. Chang allegedly stole taxpayer money designated for the medical care of FDNY first responders who put their lives and health at risk in order to save others endangered by the World Trade Center terrorist attack,” stated United States Attorney Donoghue. “This Office will continue to root out fraud such as this, to ensure that these funds are spent on addressing the health needs of those who answered the call without hesitation on 9/11.”
“Physicians take an oath to do no harm, but this Fire Department physician violated that code by collecting more than $150,000 in public funds for nearly a year's worth of work he didn't perform, according to the charges,” stated DOI Commissioner Peters. “Instead of providing care to FDNY first responders involved in World Trade Center rescue and recovery efforts, this defendant allegedly manipulated City timekeeping records, including taking undocumented vacation days. Stealing time is fraud, and DOI will continue to pursue City employees who alter these payroll records for their own personal gain.”
According to the complaint, from June 2010 through December 16, 2016, Dr. Chang was a part-time employee of the FDNY. Dr. Chang’s duties included performing physical examinations of active FDNY members and retirees, as well as follow-up treatments including the prescribing of medication to patients. Dr. Chang was paid based upon the entries he made reporting his work hours in the CityTime electronic database. Dr. Chang falsely represented that he had worked 81 days between January 2011 and October 2016, when he was scheduled to be on vacation and the World Trade Center Orange County Annex was closed. Dr. Chang’s travel records, obtained from the United States Customs and Border Protection Service, show that he was travelling outside the United States on at least 34 of those 81 days. Dr. Chang reported via CityTime that he had worked an additional 220 days when his prearranged work schedules maintained by the FDNY Deputy Chief Medical Officer showed that he was neither scheduled to work nor see patients. In total, Dr. Chang received $156,757 for work that he did not perform. The World Trade Center Monitoring Clinic and its annexes were partially funded by the federal Center for Disease Control in each of the years Dr. Chang was employed by the FDNY.
The charges in the complaint are merely allegations, and the defendant is presumed to be innocent unless and until proven guilty. If convicted, Dr. Chang faces up to 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Michael H. Warren is in charge of the prosecution.
The Defendant:
MICHAEL POYIN CHANG
Age: 59
Residence: Paramus, New JerseyE.D.N.Y. Docket No. 18-MJ-470
District Man Sentenced to Five Years in Prison for Federal Firearm and Drug Trafficking OffenseRead the Press Release
WASHINGTON – Delonta Phillips, 29, of Washington, D.C., was sentenced today to five years in prison on a federal charge stemming from a police pursuit that led to the recovery of a loaded firearm and a significant quantity of marijuana from the vehicle he had been driving.
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).
Phillips pled guilty in March 2018, 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. The plea, which was contingent upon the Court’s approval, called for a sentence of five years in prison, to be followed by five years of supervised release. The Honorable Senior Judge Thomas F. Hogan accepted the plea and sentenced the defendant accordingly.
According to the government’s evidence, on Oct. 11, 2017, at approximately 2:15 p.m., ATF agents and a MPD Task Force Officer conducted surveillance in the 3400 block of 24th Street SE for Phillips, who was the subject of pending warrants.
Upon seeing Phillips, law enforcement attempted to arrest him. Phillips quickly entered the driver’s side door of a burgundy Cadillac DeVille and fled from law enforcement. Agents immediately followed Phillips’s vehicle and put out a vehicle description over the radio. Agents observed the vehicle turn left onto Southern Avenue SE, right onto Naylor Road at Suitland Parkway, left onto eastbound Suitland Parkway, exit onto the Suitland Road off ramp, make a left onto Suitland Road, and finally come to a stop in the 3700 block of Regency Parkway, in Suitland, Md. Agents observed Phillips exit the front driver’s side door of the vehicle and flee on foot into the woods. An ATF agent pursued Phillips into the woods, while another agent remained with the vehicle and coordinated the response of multiple law enforcement officers in setting up a perimeter around the ravine to prevent Phillips’s escape.
While securing the vehicle, agents observed a back pack on the driver’s side floor of the back seat. Inside the back pack, agents subsequently recovered a Glock 26, 9mm-caliber firearm, with an extended magazine containing 28 rounds of ammunition, and a jar and full gallon Ziploc bag of marijuana. At approximately 3:15 p.m., Phillips was discovered hiding underneath a ledge in the ravine, while submerged in water. Law enforcement subsequently determined that the recovered firearm had been reported stolen to the Anne Arundel County, Md., Police Department
At the time of his arrest, Phillips was on supervised release following an earlier guilty plea to a firearms offense in the Superior Court of the District of Columbia. He now could face formal revocation of his supervised release in that case.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Chittum, and Chief Newsham commended the work of those who investigated the case from ATF and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Christopher Macchiaroli, and Paralegal Specialists Candace Battle and Teesha Tobias.
District Court Issues Order to Prevent California Individual from Distributing Adulterated Fish or Fishery ProductsRead the Press Release
A federal court enjoined Michel G. Blanchet of Los Angeles, California, from preparing, processing, and distributing adulterated fish or fishery products without first taking required remedial action, the Department of Justice announced today.
The injunction ordered by the U.S. District Court for the Central District of California requires Blanchet to implement various consumer safety measures before resuming the preparation, processing or distribution of fish or fishery products. The injunction stems from a complaint the Department filed on Oct. 3, 2017, at the request of the U.S. Food and Drug Administration (FDA).
Blanchet was the owner and President of a business in Los Angeles, California, that processed and distributed fish or fishery products, including salmon, trout, and sturgeon.
Blanchet agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the settlement, Blanchet represented that he is not engaged in receiving, preparing, processing, holding or distributing fish or fishery products. Under the permanent injunction, if Blanchet intends to resume such activity, he must notify FDA in writing in advance, comply with specific remedial measures set forth in the injunction, and allow his facility to be subject to FDA inspection.
“The Department of Justice is committed to ensuring that processors and distributors of seafood products comply with laws designed to protect consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice continues to work with the FDA to ensure that consumers are protected from potentially unsafe food.”
According to the complaint, FDA inspected Blanchet’s business on numerous occasions, including two times in 2016. The complaint alleged that Blanchet failed to comply with federal regulations by failing to adequately control the risk of Listeria monocytogenes (L. mono) and Clostridium botulinum (C bot.) toxin formation in vacuum-packed fish or fishery products. The regulations require every fish and fishery product processor to conduct, or have conducted for it, a hazard analysis to determine whether there are food safety hazards that are reasonably likely to occur during the processing of each kind of fish or fishery product that it processes.
According to the complaint, FDA’s analysis of environmental samples collected during its January-February 2016 inspection revealed the presence of L. mono contamination in multiple locations throughout Blanchet’s business. The complaint also alleged that FDA’s analysis of environmental samples collected during its subsequent inspection in July-August 2016 also revealed the presence of L. mono contamination in multiple locations throughout the business.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch, with the assistance of Associate General Counsel for Enforcement Roselle Oberstein of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Defendants sentenced for illegally purchasing 36 guns and smuggling them from Georgia to Trinidad and TobagoRead the Press Release
ATLANTA - Errol Alfred, a/k/a “Major,” and Kerry Fernandez, a/k/a “Trini,” have been sentenced for their respective roles in illegally purchasing and trafficking at least 36 firearms from Georgia to Trinidad and Tobago during a one-year period. Jordan Dunham, a co-defendant in the case, has also been sentenced for illegally purchasing some of the shipped firearms for the two men.
“Our office is committed to identifying and stopping the flow of firearms into the illegal black market,” said U.S. Attorney Byung J. “BJay” Pak. “These individuals had no regard for the safety of the citizens here or abroad when they smuggled their illegally purchased firearms for personal gain.”
“The unlawful acquisition and trafficking of firearms is a serious crime that feeds and intensifies the violence that plagues so many communities here and abroad,” said Special Agent in Charge Arthur Peralta. “This investigation illustrates the collective resolve of ATF and its law enforcement partners to stem the flow of illegal firearms within the U. S. or anywhere these criminals choose to operate.”
“In this case, the Commerce Department’s Bureau of Industry and Security, Office of Export Enforcement, Atlanta Resident Office worked closely with the U.S Attorney’s Office for the Northern District of Georgia and ATF to disrupt a smuggling scheme to illegally export firearms,” said Robert Luzzi, Special Agent in Charge, Office of Export Enforcement. “We will continue to aggressively pursue arrests and convictions that, as in this case, ultimately shut down such illegal export schemes.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between August 2013 and September 2014, Alfred and Fernandez purchased at least 36 firearms from a local firearms licensee for the purpose of shipping the firearms to Trinidad and Tobago for resale. To avoid detection by law enforcement, Alfred and Fernandez used “straw purchasers” to buy many of the firearms on their behalf. Alfred subsequently hid the illegally purchased guns in shipping barrels (unbeknownst to the shipping company), and Alfred and Fernandez then smuggled the weapons to Trinidad, where an unknown associate sold the firearms for profit.
The defendants were sentenced for the following offenses:
●Errol Alfred, a/k/a “Major,” 40, of Atlanta, Georgia was sentenced to five years in federal prison, to be followed by three years of supervised release on May 30, 2018. Alfred pleaded guilty to conspiring to smuggle firearms out of the U.S., submitting false or misleading export information, delivery of firearms to a common carrier for international shipment without written notice, fifteen counts of making a false statement during the purchase of a firearm, and two counts of access device fraud on February 6, 2018.
●Kerry Fernandez, a/k/a “Trini,” 34, of Atlanta, Georgia was sentenced to two years and three months in prison, to be followed by three years of supervised release on April 19, 2018. Fernandez pleaded guilty to conspiring to smuggle firearms out of the U.S, and making a false statement during the purchase of a firearm on June 22, 2017.
●Jordan Dunham, 26 of Norcross, Georgia was sentenced to six months in prison, to be followed by three years of supervised release on April 19, 2018. Dunham pleaded guilty to two counts of making a false statement during the purchase of a firearm on August 17, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bureau of Industry and Security, Office of Export Enforcement.
Assistant U.S. Attorney Skye Davis prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Corbin Man Sentenced to 360 Months for Devising Murder-for-Hire SchemeRead the Press Release
LONDON, Ky. — William Timothy Sutton, 55, of Corbin, Ky., was sentenced today to 360 months in federal prison, by United States District Court Judge Gregory VanTatenhove, on four counts of interstate murder-for-hire and one count of possession of firearms by a convicted felon.
Sutton was found guilty by a federal jury in January of this year. The evidence at trial established that, in March of 2017, while incarcerated in the Whitley County Detention Center, Sutton offered to pay a fellow inmate to murder the Whitley County Attorney, the Whitley/McCreary County Commonwealth’s Attorney, and two ex-girlfriends. The evidence further established that Sutton mailed a letter to a relative from jail, asking the relative to provide the would-be hitman with one of Sutton’s own firearms to further the scheme. Law enforcement became aware of the plan, interceded, and ultimately arrested Sutton.
“The sentence imposed illustrates the seriousness of the offense,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Through his abhorrent actions, the defendant victimized four people and attempted to undermine the sanctity of the judicial process and the rule of law.” “Protecting the public from violence and ensuring the integrity of our system of justice are core principles of the Department of Justice and central priorities of our Office. In our efforts to make our community safer, we will continue to confront and prosecute criminal conduct that undermines these principles.”
“I want to commend the work of our valued law enforcement partners, whose efforts made this prosecution possible. Their work on this investigation thwarted a significant threat to the victims’ safety and to the integrity of our judicial system.”
“ATF is committed to working with our law enforcement partners to protect citizens from those who threaten public safety through violent criminal behavior,” stated Stuart L. Lowrey, Special Agent In-charge, ATF Louisville Division. Defendant Sutton is a convicted felon who illegally possessed a firearm and threatened the lives of public servants committed to keeping our communities safe. We support today’s lengthy sentence as a deterrent to this criminal behavior.”
Under federal law, Sutton must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
United States Attorney Duncan; Stuart L. Lowrey, Special Agent In-Charge, ATF; and Commissioner Rick Sanders of the Kentucky State Police, jointly announced the sentence.
The ATF, the Kentucky State Police, and the Whitley County Detention Center conducted the investigation. Assistant United States Attorney W. Samuel Dotson represented the United States.
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 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, local strategies to reduce violent crime.
Convicted Felon Admits to Being in Possession of a FirearmRead the Press Release
PROVIDENCE, RI – A 25-year-old New Bedford, MA, man previously convicted and incarcerated for possessing a loaded firearm without a permit pleaded guilty in federal court in Providence today to being a felon in possession of a firearm.
United States Attorney Stephen G. Dambruch and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the guilty plea of Angel Pizarro to one count of felon in possession of a firearm.
According to information presented to the Court, an investigation by ATF agents determined that on May 10, 2017, Pizarro visited a Tiverton, R.I., shooting range where he handled and discharged a variety of firearms. Surveillance video at the firing range depicted Pizarro handling, loading and firing three firearms.
According to Court records, Pizarro was convicted in Massachusetts state court in 2012 of possessing a loaded firearm without a permit and sentenced to 18 months of incarceration.
Pizarro is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 21, 2018.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Citizen of Ukraine Pleads Guilty to Participating in Wire Fraud ConspiracyRead the Press Release
CONCORD - Yuriy Khalabuda, 37, a citizen of Ukraine, pleaded guilty to conspiracy to commit wire fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Khalabuda and another person used scanned images of Best Buy gifts cards on their cell phones to buy Apple products from the Best Buy store in Salem, New Hampshire, in April and May 2017. On May 13, 2017, an employee of the Salem store observed Khalabuda use scanned images of gift cards to buy merchandise worth more than $2,200 and notified the Salem Police Department. Later that day, Khalabuda was arrested by the Salem Police Department for driving without a driver’s license. While investigating Khalabuda’s use of the gift cards, the Salem Police Department obtained a warrant to search a cell phone he possessed at the time of his arrest. During the search, investigators found text messages showing that Khalabuda knew that the gift cards he used at the Salem store had been obtained fraudulently.
Khalabuda will be sentenced on September 12, 2018.
“Unfortunately advances in technology provide more opportunities for fraud,” said U.S. Attorney Murray. “Prosecuting individuals who fraudulently obtain money and property is an important priority for the U.S. Attorney’s Office. The prosecutors in this office will continue to work diligently with our federal, state and local law enforcement partners to aggressively prosecute fraudulent conduct in its many forms.”
"Individuals like Mr. Khalabuda who defraud local businesses drive up prices for all consumers,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “This case should serve as a warning to others that the FBI and our law enforcement partners will aggressively investigate those who commit financial fraud and take advantage of others through their criminal behavior."
The case was investigated by the Salem Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert Kinsella.
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Canaan Woman Sentenced to 70 Months for Distributing Fentanyl, Heroin, Cocaine and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Toni Juliano, 30, of Canaan, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 70 months in prison and five years of supervised release for possession with the intent to distribute fentanyl, heroin, cocaine and cocaine base, commonly known as “crack.” The defendant pled guilty on December 11, 2017.
According to court records, on September 6, 2017, officers seized about 173 grams of heroin, 60 grams of crack and 113 grams of cocaine from the defendant’s hotel room. On September 27, 2017, officers seized about 100 grams of heroin, 91 grams of fentanyl, 88 grams of cocaine, and $38,222 from a second hotel room used by the defendant. At the time of the two seizures, the defendant was on bail and awaiting sentencing on a state charge of unlawful trafficking in scheduled drugs.
In imposing the sentence, Judge Woodcock described Juliano as “major drug dealer in Central Maine” who was responsible for distributing a “staggering” amount of controlled drugs.
The case was investigated by the Waterville Police Department with assistance provided by the U.S. Drug Enforcement Administration and the Maine Attorney General’s Office, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Bronx Man Sentenced to Three Years Imprisonment Following Alien Smuggling TrialRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Denny Reyes, 28, of Bronx, New York, was sentenced on May 29, 2018, in United States District Court in Burlington, Vermont, to serve concurrent terms of thirty-six and ten months in federal prison after his conviction at trial for Aiding and Abetting Alien Smuggling for Financial Gain and the Unlawful Transportation of Illegal Aliens within the United States. U.S. District Court Judge Christina Reiss also ordered Reyes to serve a two-year period of supervised release following his prison term, and to pay a $200 special assessment.
According to court records and proceedings, on February 6, 2015, federal and state law enforcement agents surveilled Reyes as he drove from New York City to Highgate Springs, Vermont. Shortly after midnight on February 7, law enforcement followed Reyes as he drove to the top of Highgate Springs, on a road that ends at the border between the U.S. and Canada. There, waiting law enforcement agents watched as Reyes sat in his parked car, poised to act as the paid get-away driver for three illegal aliens whom law enforcement had just observed walking across the border from Canada and into the U.S. with the help of a foot guide. As soon as the three illegal aliens ran for Reyes’ car, law enforcement announced their presence and attempted to make apprehensions. The foot guide evaded law enforcement and absconded back to Canada on foot. Reyes and the three illegal aliens were arrested shortly after they also attempted to flee the area, in Reyes’ car. Reyes thereafter exercised his right to proceed to trial. On December 21, 2017, a jury returned a verdict of guilty as to both of the crimes charged against him.
United States Attorney Christina Nolan commended the efforts of the Border Patrol and its state and federal partners for their cooperation and success in maintaining the integrity of our northern border.
“Swanton Sector appreciates the support of the U.S. Attorney’s Office in Burlington in their diligent prosecution of this case. When criminals face a real consequence, it acts as a deterrent to those who would break the law,” said U.S. Border Patrol Swanton Sector Acting Deputy Chief Patrol Agent Bradley Curtis, “This case is an excellent example of what can be accomplished when using the whole-of-government approach.”
The United States was represented in this matter by First Assistant U.S. Attorney Kevin Doyle, Criminal Chief Eugenia Cowles, and Assistant U.S. Attorney Abigail Averbach. Denny Reyes was represented by the Office of the Federal Public Defender. The case was jointly investigated by members of the U.S. Border Patrol, Customs and Border Protection; Vermont State Police; and the Drug Enforcement Administration.
Bronx Man Sentenced to 41 Months in Prison for Role in Drug Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man who was arrested in Warren County on Christmas Eve in 2014 was sentenced today to 41 months in prison for his role in an international drug trafficking organization, U.S. Attorney Craig Carpenito announced.
Vionel Rondon Cortorreal, 29, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In December 2014, Cortorreal and Dany Francisco-Valerio, 44, of Bronx, New York, conspired with members of the drug trafficking organization to transport and distribute kilogram quantities of heroin. On Dec. 24, 2014, Cortorreal and Francisco-Valerio were arrested in Warren County, New Jersey while transporting 15 kilograms of heroin contained in a hidden compartment in a vehicle they were operating. Francisco-Valerio was previously sentenced to 51 months in prison by Judge Sheridan.
Three other members of the conspiracy, Harry Madrid, 26, of Anaheim, California, his brother, Wilson Madrid, 32, of Norcross, Georgia, and Henry Zamora, 38, of DeKalb, Illinois, previously entered guilty pleas for their roles on behalf of the organization. Harry Madrid has been sentenced to 46 months in prison while Wilson Madrid and Zamora both received seven-year prison sentences from Judge Sheridan.
In addition to the prison term, Judge Sheridan sentenced Cortorreal to three years of supervised release.
U.S. Attorney Carpenito praised special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson, officers from the N.J. State Police under the direction of Acting Superintendent Colonel Patrick J. Callahan, and officers from the DeKalb (Illinois) Police Department, under the direction of Chief Gene Lowrey, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office OC/Gangs Unit in Newark and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Brink’s Armored Truck Robber Sentenced to 27 Years ImprisonmentRead the Press Release
Memphis, TN – A Memphis man was sentenced to 324 months in federal prison for committing armed robberies effecting interstate commerce. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on April 29, 2016, two armed men robbed two Brink’s Armored Truck Services employees outside of Regions Bank located at 3535 Austin Peay Highway. One of the Brink’s employees was in the process of loading two cash cassettes, containing $192,000, into the ATM, when one of the robbers approached the employee at gunpoint, while the second robber remained parked nearby in a truck. The second employee, who remained in the Brink’s truck, rammed the robbers’ truck knocking to the ground the robber standing outside the truck. The robber in the truck sped off leaving the second robber on the ground with a broken leg. Law enforcement arrested 49-year-old Cornelius Richmond on the scene. The other alleged robber, Roderick Herron, 52, is currently awaiting trial.
U.S. Attorney D. Michael Dunavant said: "Armed robberies are brazen and disturbing acts of violence that terrorize our businesses and community, and must be met with significant sentences such as this one. These dangerous offenders have sown violence and greed, and will now reap the full measure of consequences for their criminal conduct."
Richmond’s 27-year prison sentence was also based on his participation in the April 26, 2016, "smash and grab" robbery of Circle K located at 1205 N. Germantown Parkway in Cordova, TN. Richmond and allegedly Herron drove a stolen GMC Truck through the front window of the store, and once inside, they took the store’s ATM and bill pay machines by dragging the machines out of the store.
On May 23, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Richmond to 324 months in federal prison.
This case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Kevin P. Whitmore is prosecuting this case on the government’s behalf.
Brandon Man Sentenced to More Than Five Years in Prison for Credit Card Takeover and Identity Theft SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Junior Jean-Noel (21, Brandon) to five years and one month in federal prison for credit card fraud and identity theft. The court also entered a money judgment in the amount of $292,291.05, which constitute the proceeds of the fraud.
He pleaded guilty on February 23, 2018.
According to court documents, between March and October 2017, Jean-Noel, a.k.a. Jay Mulla, alone and with others, obtained stolen Capital One credit card account information. Jean-Noel then called Capital One, posing as the true account holders, and requested that replacement credit cards be sent to addresses under his control. Once he received the replacement cards, he and others acting at his direction used them to purchase gift cards and merchandise. In total, Jean-Noel engaged in the takeover and unauthorized use of 13 different Capital One credit card accounts, all without the knowledge or permission of the account holders’, many of whom were elderly. As part of the account takeover and as an attempt to defeat the bank’s fraud detection efforts, Jean-Noel called Capital One from “spoofed” telephone numbers that made it appear as if the true account holders were calling. He also made fabricated payments to the accounts in order to increase the credit limits and his access to the funds. Jean-Noel and others working at his direction made purchases with these unauthorized credit cards totaling $292,291.05. They attempted an additional $52,307.58 worth of transactions that were declined.
This case was investigated by United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Boston Man Sentenced to 6½ Years for Illegally Possessing FirearmsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Keon Shine, 28, of Boston, Massachusetts, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 6½ years in prison and three years of supervised release for being a felon in possession of firearms. Shine pled guilty on November 29, 2017.
According to court records, on April 8, 2017, Shine and co-defendant, Dane Mitchell, drove to a shooting range in Gray, Maine, where they rented firearms, purchased ammunition, and fired the weapons. Boston Police Department officers identified Shine, Mitchell and the shooting range from videos that were uploaded to Snapchat. Shine was prohibited from possessing firearms as a result of his 2011 Massachusetts felony convictions for receiving a stolen motor vehicle and assault and battery with a dangerous weapon.
On May 14, 2018, Mitchell, who was also prohibited from possessing firearms, was sentenced to 27 months in prison and three years of supervised release.
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boston Police Department’s Youth Violence Strike Force and prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime 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.
Boone Woman Sentenced for Meth ConspiracyRead the Press Release
A woman who distributed approximately 20 pounds of methamphetamine was sentenced on May 29, 2018, to more than 5 years in federal prison.
Angela Kaye Olson, 49, from Boone, Iowa, received the prison term after a March 15, 2017, guilty plea to one count of conspiracy to distribute methamphetamine.
Evidence at sentencing showed that Olson had three different sources of methamphetamine and sold approximately twenty pounds in total within a six-month period. Olson, who is a felon, admitted to unlawfully possessing firearms and on one occasion, trading a firearm for methamphetamine.
Olson was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Olson was sentenced to 68 months’ imprisonment. She must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Olson is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ajay Alexander and investigated by DEA Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3050-MWB.
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Bloomfield Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Season Smith, 41, of Bloomfield, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Smith and co-defendant Jeffrey Kline, 45, of Farmington, N.M., were charged on in a two-count indictment filed on April 11, 2017, with conspiracy and possession of methamphetamine with intent to distribute. The indictment alleged that the defendants committed the offenses on Feb. 10, 2017, in San Juan County, N.M.
During today’s proceedings, Smith pled guilty to possessing methamphetamine with intent to distribute. In entering the guilty plea, Smith admitted that on Feb. 10, 2017, law enforcement officers stopped Kline and her while they were traveling from Arizona to New Mexico after they picked up methamphetamine from a source of supply. Smith further admitted that the officers seized approximately 511.7 grams of methamphetamine, 13.6 grams of heroin and drug paraphernalia when they executed a lawful search of her purse.
At sentencing, Smith faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Her sentencing hearing has yet to be scheduled.
Kline previously pled guilty on July 26, 2017, to possession of methamphetamine with the intent to distribute, and was sentenced on April 9, 2018, to 120 months in prison followed by six years of supervised release.
The case was investigated by the Farmington office of the FBI and the Farmington Police Department. Assistant U.S. Attorney Eva Fontanez is prosecuting the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of making communities in New Mexico safer places for people to live and work.
Billings Man Sentenced to Statutory Maximum for Illegal Firearms PossessionRead the Press Release
BILLINGS—Jimmy Mark Walker, a 36-year old resident of Billings, was sentenced on Friday, May 25, 2018 to 120 months of imprisonment and 3 years of supervised release after pleading guilty to felon in possession of a firearm. United States District Judge Susan P. Watters issued the sentence.
On August 24, 2016, law enforcement officers arrested Walker’s co-defendant, Huston Curran, after finding him in possession of a small quantity of methamphetamine and a short-barreled shotgun. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives were able to determine through investigation that Curran was being supplied with methamphetamine by Walker. On the evening of August 24, 2016, agents went to Walker’s residence along with members of the Montana Department of Probation and Parole, since Walker was under the supervision of the State of Montana at the time for a felony offense. When agents attempted to make contact with Walker, he retreated into his garage and a standoff ensued for the next four hours. Finally, members of the Billings SWAT team were able to convince Walker to surrender without incident.
When executing a search warrant of Walker’s garage, they discovered 12 firearms, including assault rifles capable of carrying large capacity magazines, stolen firearms, one firearm with an obliterated serial number, a ballistic vest, and drug paraphernalia. At sentencing, the district court determined that Walker possessed the firearms in connection with methamphetamine trafficking. The sentence imposed was the statutory maximum for Walker’s offense of conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was 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.
Baltimore Man Sentenced to 19 Years in Prison for Armed Bank RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Timothy Allen McNeal, age 31, of Baltimore, Maryland today to 19 years in prison, followed by 3 years of supervised release, for armed robbery, conspiracy, brandishing a firearm during a crime of violence, and being a felon in possession of a firearm. McNeal had been convicted on these charges by a federal jury on February 26, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Matthew Varisco of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Gary L. Gardner of the Howard County Police Department.
According to evidence presented at trial, on August 4, 2016, McNeal and his brother, Markus Fields, age 28, of Baltimore, robbed the Howard County Education Federal Credit Union (HCEFCU) in Ellicott City, Maryland at gunpoint. Surveillance video captured the robbery, during which both Fields and McNeal entered the credit union wearing ski masks to cover their faces. Fields entered first, carrying a black backpack. McNeal entered after, carrying a rifle-style long gun with a large magazine visible on the top. McNeal pointed the gun at a bank teller and a customer, forcing the victims to the ground. Fields opened the teller drawer and began rifling through it. McNeal pointed the gun toward the supervisor’s office, forcing the employee inside to exit the office and, ultimately, open the credit union’s safe. After opening the safe, the employee was ordered to the ground, where she remained while McNeal and Fields removed the cash inside.
McNeal and Fields then used zip ties that they had stored in their backpack to tie and restrain the credit union customer and employees. McNeal and Fields then left the HCEFCU by climbing out of a back window.
McNeal, Fields, and their mother, an employee of the Howard County School District, were all account holders at the HCEFCU. On August 4, 2016, a few hours after the robbery, McNeal and Fields went to Wal-Mart and purchased two large televisions. On August 6, 2016, two days after the robbery, Fields purchased a maroon Lexus with cash. On August 8, 2016, McNeal posted a photograph of a maroon Lexus with the caption “we working.” On August 17, 2016, overdue rent was paid on Fields’ and McNeal’s residence.
During execution of a search warrant, law enforcement recovered black ski masks, clothing matching the clothing worn by McNeal during the bank robbery, banded cash, and cell phones from Fields and McNeal’s residence.
Co-defendant Fields pleaded guilty to armed bank robbery on February 9, 2018, and on May 8, 2018, was sentenced by Judge Blake to ten years in prison, followed by three years of supervised release.
United States Attorney Robert K. Hur commended the FBI, the ATF, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work on the investigation. Mr. Hur thanked Assistant United States Attorneys Lauren Perry and Burden Walker, who prosecuted the case.
29 May 2018
Waterbury Man Involved in Credit Card "Bust-Out" Scheme is SentencedRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, announced that JANZAYB KHAN, 29, of Waterbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to five years of probation for his involvement in a credit card “bust-out” scheme that defrauded more than a dozen financial institutions, and for attempting to cover up his role during a bankruptcy proceeding.
According to the court documents and statements made in court, KHAN provided his personal information to a co-conspirator so that the co-conspirator could obtain credit cards in KHAN’s name. In total, the co-conspirator obtained 31 credit cards in KHAN’s name from more than a dozen financial institutions. In many cases, the credit card applications contained false statements about KHAN’s income, assets, address and employment history. Then, within a short period in January 2013, nearly all of the available credit on the cards were rapidly utilized or “busted out.” More than $59,000 was spent on cash advances, gift cards and precious metals. Some of the proceeds from the cash advances were deposited and/or transferred to bank accounts in the name of KHAN’s co-conspirator and/or the co-conspirator’s relatives.
In addition, almost $70,000 was charged in sham transactions at three merchants, who then issued checks from the proceeds that were later deposited into bank accounts in the name of the co-conspirator and/or the co-conspirator’s relatives.
The co-conspirator paid KHAN approximately $10,000 in cash for his role in the scheme.
After the bust-out, there was more than $165,954 in accumulated debt on the 31 cards in KHAN’s name. In June 2013, KHAN filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court and attempted to discharge all of his credit card debt. In his bankruptcy court filings, KHAN falsely stated that the majority of his debt was due to gambling losses as casinos. KHAN also made a number of other false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court later denied the discharge of KHAN’s debts.
KHAN was arrested on a federal criminal complaint on April 4, 2017. On December 11, 2017, he pleaded guilty to one count of conspiracy to commit bank fraud and one count of making a false oath in a bankruptcy proceeding.
This matter is being investigated by the U.S. Secret Service and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Warm Springs Woman Sentenced to 13 Years in Federal Prison for Assault with Intent to Commit MurderRead the Press Release
PORTLAND, Ore. – Rhyan Leigh Smith, 26, of Warm Springs, Oregon, was sentenced today to 13 years in federal prison for assault with intent to commit murder of two family members and using a firearm in furtherance of a crime of violence.
“The defendant’s violent conduct towards family members is inexplicable and indefensible,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This kind of violence is an attack on the victims and the members of the Warm Springs community. Let us hope that the sentence imposed brings some measure of solace and closure to the victims of these crimes, and healing to the community.”
According to court documents, in the early morning hours of March 16, 2016, Smith returned to a house she had periodically resided in with five of her family members. At approximately 8:00 a.m., Smith retrieved a pistol she had taken from the owner without permission. Smith conversed briefly with a family member in doorway of the family member’s bedroom before shooting him five times. A second family member heard the gunshots and tried to stop Smith, but Smith shot her multiple times. Both victims suffered life-threatening injuries.
The Warm Springs Police Department and the FBI responded to the house and found Smith hiding in sagebrush near the house with an AR-15 rifle. Investigators later found a camouflage rifle bag with multiple AR-15 magazines, loose ammunition and a 9mm pistol in a vehicle at the house.
Smith previously pleaded guilty to two counts of assault with the intent to commit murder and one count of possession of a firearm in furtherance of a crime of violence on Wednesday, February 7, 2018.
This case was investigated by the FBI and the Warm Springs Police Department and prosecuted by William Narus and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.
On March 3, 1994, the FBI initiated “Operation Safe Trails” with the Navajo Department of Law Enforcement in Flagstaff, Arizona. The operation, which would later evolve into the Safe Trails Task Force (STTF) Program, unites FBI and other federal, state, local, and tribal law enforcement agencies in a collaborative effort to combat the growth of crime in Indian Country. STTFs allow participating agencies to combine limited resources and increase investigative coordination in Indian Country to target violent crime, drugs, gangs, and gaming violations.
Walmart, Sam’s Club to Pay $825,000 to Resolve Fraud Allegations Concerning Auto Refilling Medicaid PrescriptionsRead the Press Release
United States Attorney Gregory G. Brooker and Minnesota Attorney General Lori Swanson today announced that Wal-Mart Stores, Inc. and Sam’s West, Inc. (d/b/a Sam’s Club) have agreed to pay a total of $825,000 to resolve allegations that they violated the False Claims Act and Minnesota False Claims Act by submitting claims for payment to Minnesota’s Medicaid program in violation of rules prohibiting Medicaid prescriptions from being automatically refilled.
Minnesota’s Medicaid program, called Medical Assistance, is jointly funded by the federal government and State of Minnesota to provide health care to low-income Minnesotans. Along with at least 20 other states, Minnesota does not allow pharmacies to automatically refill prescriptions paid for by Medical Assistance without an explicit request from the beneficiary for each refill. This policy provides an important control against wasted or unnecessary prescriptions that are reimbursed by taxpayer funds.
According to the allegations in the amended complaint, Walmart and Sam’s Club pharmacies routinely enrolled Medical Assistance beneficiaries in the companies’ auto-refill program, and billed Medical Assistance for prescriptions in violation of state rules and regulations. In addition, according to the allegations, pharmacy employees reported the violation to company managers, yet Walmart and Sam’s Club continued to automatically refill Medical Assistance prescriptions.
U.S. Attorney Greg Brooker said, “Businesses that participate in federally and state funded healthcare programs have a responsibility to ensure compliance with the rules, specifically rules that are in place to avoid unused prescription medications and wasted taxpayer funds.”
“We are pleased to have worked with our federal partners in the U.S. Attorney’s Office to ensure that providers who participate in this health care safety net program fairly follow the rules,” said Minnesota Attorney General Lori Swanson.
Walmart and Sam’s Club will pay $412,500 to the federal government and $412,500 to the State of Minnesota to settle the claims.
In these civil settlements, Walmart and Sam’s Club have denied the allegations of wrongdoing and False Claims Act liability.
This settlement resolves allegations filed in a civil lawsuit originally brought by a whistleblower under the qui tam provisions of the federal False Claims Act and Minnesota False Claims Act, which allow private parties to bring suit on behalf of the government for false claims and to share in any recovery. The government often relies on whistleblowers to bring fraud schemes to light that might otherwise go undetected.
The case was handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota and the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office, with substantial assistance provided by the Office of Inspector General of the U.S. Department of Health and Human Services.
The case is United States of America and the State of Minnesota ex rel. Ryan Mesaros v. Wal-Mart Stores, Inc., and Sam’s West, Inc. (d/b/a/ Sam’s Club), Civil No. 14-CV-3105 (DSD/LIB). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
United States Settles Lawsuit Alleging That Contractor Falsely Overcharged the U.S. Navy for Ship Husbanding ServicesRead the Press Release
Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) have agreed to pay $20,000,000 to resolve allegations that they violated the False Claims Act by knowingly overbilling the U.S. Navy under contracts for ship husbanding services, the Department of Justice announced today. Inchcape is a marine services contractor headquartered in the United Kingdom.
Inchcape provided goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape provided ships with food and other subsistence items, waste removal, telephone services, ship-to-shore transportation, force protection services and local transportation. The lawsuit alleged that from 2005 to 2014, Inchcape knowingly overbilled the Navy for these services by submitting invoices that overstated the quantity of goods and services provided, billing at rates in excess of applicable contract rates, and double-billing for some goods and services.
“Federal contractors may only charge the government for costs allowed by their federal contracts,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice will take action against contractors that knowingly submit inflated claims to the armed forces—or any other agency of the United States—as those inflated claims wrongfully divert taxpayer dollars.”
“We trust contractors supporting our warfighters to act with the utmost integrity and expect them to comply with their obligations to bill the government as called for by their contracts,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “This settlement reflects our Office’s strong commitment to holding accountable those who violate these fundamental principles, no matter where they may be located.”
"This settlement demonstrates that the Department of the Navy will continue to hold contractors accountable for the agreements they make to supply our fleet,” said Secretary of the Navy Richard V. Spencer. “The Department expects strict adherence to higher standards within the Department and expects the same from its contractors."
“Fraud is an abuse of the system that siphons resources away from the American warfighter,” said Jeremy Gauthier, Special Agent in Charge of the Naval Criminal Investigative Service’s Washington D.C. field office. “NCIS will continue to work with our law enforcement partners to hold responsible those who would put personal gain above corporate integrity.”
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff. Under the act, a private citizen may bring suit on behalf of the United States for false claims and share in any recovery. The government may intervene in the case, as it did here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it. As part of today’s resolution, the whistleblowers will receive approximately $4.4 million.
The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Columbia, with assistance from the Department of the Navy and the Naval Criminal Investigative Service.
The case is captioned United States ex rel. Rudolph v. Inchcape Shipping Services Holdings Limited, et al., No. 1:10-cv-01109 (D.D.C). The claims alleged in the case are allegations only, and there has been no determination of liability.
United States Settles Lawsuit Alleging That Contractor Falsely Overcharged the United States Navy for Ship Husbanding ServicesRead the Press Release
WASHINGTON – Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) have agreed to pay $20,000,000 to resolve allegations that they violated the False Claims Act by knowingly overbilling the U.S. Navy under contracts for ship husbanding services, the Department of Justice announced today. Inchcape is a marine services contractor headquartered in the United Kingdom.
Inchcape provided goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape provided ships with food and other subsistence items, waste removal, telephone services, ship-to-shore transportation, force protection services and local transportation. The lawsuit alleged that from 2005 to 2014, Inchcape knowingly overbilled the Navy for these services by submitting invoices that overstated the quantity of goods and services provided, billing at rates in excess of applicable contract rates, and double-billing for some goods and services.
“Federal contractors may only charge the government for costs allowed by their federal contracts,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice will take action against contractors that knowingly submit inflated claims to the armed forces—or any other agency of the United States—as those inflated claims wrongfully divert taxpayer dollars.”
“We trust contractors supporting our warfighters to act with the utmost integrity and expect them to comply with their obligations to bill the government as called for by their contracts,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “This settlement reflects our Office’s strong commitment to holding accountable those who violate these fundamental principles, no matter where they may be located.”
“This settlement demonstrates that the Department of the Navy will continue to hold contractors accountable for the agreements they make to supply our fleet,” said Secretary of the Navy Richard V. Spencer. “The Department expects strict adherence to higher standards within the Department and expects the same from its contractors."
“Fraud is an abuse of the system that siphons resources away from the American warfighter,” said Jeremy Gauthier, Special Agent in Charge of the Naval Criminal Investigative Service’s Washington D.C. field office. “NCIS will continue to work with our law enforcement partners to hold responsible those who would put personal gain above corporate integrity.”
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape, Noah Rudolph, Andrea Ford and Lawrence Cosgriff. Under the act, a private citizen may bring suit on behalf of the United States for false claims and share in any recovery. The government may intervene in the case, as it did here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it. As part of today’s resolution, the whistleblowers will receive approximately $4.4 million.
The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the District of Columbia, with assistance from the Department of the Navy and the Naval Criminal Investigative Service.
The case is captioned United States ex rel. Rudolph v. Inchcape Shipping Services Holdings Limited, et al., No. 1:10-cv-01109 (D.D.C). The claims alleged in the case are allegations only, and there has been no determination of liability.
United States Obtains $114 Million Judgment Against Three Individuals for Paying Kickbacks for Laboratory Referrals and Causing Claims for Medically Unnecessary TestsRead the Press Release
On May 23, 2018, the United States District Court in the District of South Carolina entered judgment for the United States in the amounts of $111,109,655.30 against defendants LaTonya Mallory, Floyd Calhoun Dent III and Robert Bradford Johnson, and for an additional $3,039,006.56 against Johnson and Dent, the Department of Justice announced today. The judgment follows the January 31, 2018, jury verdict finding the three individuals liable for violating the False Claims Act (FCA) by paying remuneration to physicians in exchange for patient referrals, in violation of the Anti-Kickback Statute, and causing two laboratories to bill federal health care programs for medically unnecessary testing.
“Improper financial relationships between physicians and laboratories can distort a physicians’ best judgment for their patients, in addition to undermining patient health and trust,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad Readler. “Executives and other individuals who break the law will be held personally accountable for their actions."
During a two-week jury trial held in Charleston, South Carolina, the government introduced evidence that the defendants paid physicians remuneration disguised as processing and handling fees of between $10 and $17 for each patient they referred to two blood testing laboratories: Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia; and Singulex Inc., of Alameda, California. The government also introduced evidence that the kickback scheme resulted in physicians referring patients to HDL and Singulex for medically unnecessary tests, which were then billed to federal health care programs.
The jury found Mallory, HDL’s former CEO, and Johnson and Dent, who marketed and sold HDL’s and Singulex’s tests, jointly and severally liable for causing the submission of 35,074 false claims, worth $16,601,591, submitted to Medicare and TRICARE by HDL. The jury also found defendants Dent and Johnson jointly and severally liable for an additional 3,813 false claims, worth $467,935, submitted by Singulex. As provided by the FCA, the Court trebled those damage amounts, offset settlement payments received from HDL and Singulex for the same claims, and awarded $63.8 million in penalties requested by the United States, for a total judgment of $114,148,661.86.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The Court’s damages award in this case recognizes the seriousness of what these defendants did,” said Sherri A. Lydon, U.S. Attorney for the District of South Carolina. “Paying kickbacks to cause unnecessary tests injures patients, the Medicare Program, and American taxpayers and the District of South Carolina will continue to pursue those who participate in such conduct.”
“This judgment affirms that individuals who cheat Medicare and TRICARE will not be allowed to enjoy their ill-gotten gains,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “This office joins with its Department of Justice colleagues in our mutual commitment to investigate misconduct and recover funds unlawfully obtained from federal healthcare programs.”
“Laboratories that pay kickbacks to physicians in exchange for referrals of business exploit patients and taxpayer-funded health care programs,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services, Office of Inspector General. “Our agency is dedicated to investigating such corrosive kickback schemes, as they undermine the public’s trust in medical professionals, and the integrity of government health care programs.”
“The FBI will continue to aggressively investigate allegations of criminal misconduct between companies and individuals who engage in kickback schemes at the expense of the U.S. government,” said Acting Assistant Director of the Criminal Investigative Division Chris Hacker. “We recognize the importance of those who came forward and brought allegations to light and realize that we cannot do our work without the public’s help.”
The claims resolved by the court’s order were originally brought in three lawsuits filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The Act permits the United States to intervene in and take over the whistleblower suit, as the United States did, in part, in the three consolidated actions against Mallory, Dent, Johnson and others in August 2015. The whistleblowers’ share of any recovery has yet to be determined.
The cases were litigated by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorneys’ Offices for the District of South Carolina and the District of Columbia. The U.S. Attorney’s Office for the Middle District of North Carolina, HHS-OIG, the FBI’s Columbia Field Office and FBIHQ’s Major Provider Response Team, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service assisted with the investigation.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.).
United States Citizen Sentenced to 35 Years for Providing Material Support to Al-ShabaabRead the Press Release
Maalik Alim Jones, 33, of Baltimore, Maryland, was sentenced today to 35 years in prison, to be followed by five years of supervised release, for conspiring to provide material support to al-Shabaab, a designated foreign terrorist organization based in Somalia, conspiring to receive military training from al-Shabaab, and carrying and using an AK-47 machinegun, rocket-propelled grenades, and other destructive devices in furtherance of his support for al-Shabaab. Jones pleaded guilty on Sept. 8, 2017, to a three-count Superseding Information.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement. U.S. District Judge Paul G. Gardephe imposed Jones’s sentence.
“U.S. citizens who travel overseas to fight with a terrorist organization – which is what Jones did – betray our country and pose a serious threat to our national security,” said Assistant Attorney General Demers. “The National Security Division remains committed to committed to identifying and stopping terrorists like Jones, and we will hold them accountable. Credit goes to all those who worked so tirelessly to bring Jones to justice.”
“We may never know what drove Maalik Jones to travel to Somalia and pledge allegiance to al Shabaab, a terrorist organization that has vowed to destroy America,” said U.S. Attorney Berman. “But we do know that with today’s sentence, Jones is no longer a threat to America’s ideals.”
According to the Complaint, the Indictment, the Superseding Information, and statements made in court proceedings, including at sentencing:
In July 2011, Jones left Baltimore to join al-Shabaab in Somalia. Jones traveled to New York City, then flew via commercial aircraft to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, Jones traveled by land from Kenya to Somalia, which is a common travel route for foreign fighters traveling to Somalia to join al-Shabaab.
In Somalia, Jones joined al-Shabaab and was a member of the terrorist organization for approximately four years. During this time, Jones trained, worked and fought with al-Shabaab in Somalia. Among other things, Jones received three months of military training at an al-Shabaab training camp, where he learned, among other things, how to operate an AK-47 assault rifle and rocket-propelled grenades. Upon completion of this training, Jones also was assigned to al-Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al-Shabaab.
In particular, after joining Jaysh Ayman, Jones and his Jaysh Ayman unit participated in a battle in Afmadow, Somalia, against Kenyan government soldiers. Jones, armed with an AK-47 rifle, engaged in the fighting until he was injured by a missile and then hospitalized. After his release from the hospital, Jones continued to operate with al-Shabaab and, in particular, Jaysh Ayman.
Jones has appeared with other al-Shabaab fighters in videos that were recovered from an al-Shabaab fighter who participated in and was killed during the aforementioned Lamu Attack. In one of the videos, Jones can be seen holding a firearm, and in the company of several al-Shabaab fighters. The al-Shabaab fighters are depicted greeting each other, hugging each other and carrying firearms.
On Dec. 7, 2015, Jones was taken into custody by Somali authorities while he was attempting to procure a boat to depart Somalia for Yemen.
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Mr. Demers and Mr. Berman praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD. Mr. Berman also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
Assistant U.S. Attorneys Andrew J. DeFilippis and Shawn G. Crowley of the Southern District of New York, and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
United States Citizen Sentenced to 35 Years in Prison for Providing Material Support to Al ShabaabRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, Assistant Attorney General for National Security, announced that MAALIK ALIM JONES was sentenced today to 35 years in prison for conspiring to provide material support to al Shabaab, a designated Foreign Terrorist Organization based in Somalia, conspiring to receive military training from al Shabaab, and carrying and using an AK-47 machinegun, rocket-propelled grenades, and other destructive devices in furtherance of his support for al Shabaab. In 2011, JONES, a United States citizen, traveled to Somalia, where he took up arms and provided military support to al Shabaab for approximately four years. On September 8, 2017, JONES pled guilty to a three-count Superseding Information. U.S. District Judge Paul G. Gardephe imposed JONES’s sentence in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “We may never know what drove Maalik Jones to travel to Somalia and pledge allegiance to al Shabaab, a terrorist organization that has vowed to destroy America. But we do know that with today’s sentence, Jones is no longer a threat to America’s ideals.”
Assistant Attorney General John C. Demers said: “U.S. citizens who travel overseas to fight with a terrorist organization – which is what Jones did – betray our country and pose a serious threat to our national security. The National Security Division remains committed to committed to identifying and stopping terrorists like Jones, and we will hold them accountable. Credit goes to all those who worked so tirelessly to bring Jones to justice.”
According to the Complaint, the Indictment, the Superseding Information, and statements made in court proceedings, including at sentencing:
In February 2008, the U.S. Department of State designated al Shabaab as a Foreign Terrorist Organization. Al Shabaab has used violent means – including targeted assassinations of civilians and journalists, and the use of improvised explosive devices, rockets, mortars, and automatic weapons – to, among other things, destabilize the government of Somalia, quell the Somali population, and force the withdrawal of foreign troops in Somalia. A former leader of al Shabaab, whose exhortations were echoed by the leadership of al Qaeda, called for foreign fighters to join al Shabaab in a “holy war” in Somalia. As a result of al Shabaab’s recruitment efforts, men from other countries – including the U.S. – have traveled to Somalia to engage in violent jihad.
Since al Shabaab’s designation as a Foreign Terrorist Organization in February 2008, it has made several public statements demonstrating its intent to harm U.S. interests. For example, in April 2008, al Shabaab released a statement declaring a campaign against the U.S. Similarly, after an al Shabaab member was killed in May 2008, al Shabaab leaders announced that the mujahidin would “hunt the U.S. government” and that governments supporting the U.S. and Ethiopia should keep their citizens out of Somalia. In April 2009, al Shabaab claimed responsibility for mortar attacks against a U.S. congressman who had been visiting Somalia, and in February 2012, the then-Emir of al Shabaab swore allegiance to Ayman al-Zawahiri, the Emir of al Qaeda, stating that al Shabaab “will hereby merge into al Qa’ida.”
Al Shabaab also maintains a specialized fighting force, known as Jaysh Ayman, that is responsible for carrying out commando-style attacks and cross-border raids in which fighters, among other things, travel across the land border between Somalia and Kenya to target individuals and conduct attacks against civilian and military targets in Kenya. Among the attacks executed by Jaysh Ayman fighters are: (i) a June 16, 2014, attack in which al Shabaab fighters opened fire in a hotel bar in Mpekatoni, Kenya, killing approximately 40 people; (ii) a July 2014 attack in Hindi, Kenya, in which approximately 12 al Shabaab fighters opened fire at a trading center and set fire to government buildings and a church, killing nine people; and (iii) a June 14, 2015, attack in which al Shabaab fighters ambushed a Kenyan Defense Force base in Lamu County, Kenya, using various weapons, including AK-47 rifles and rocket-propelled grenades, killing two Kenyan Defense Force soldiers (the “Lamu Attack”).
In July 2011, JONES left Baltimore, Maryland, to join al Shabaab in Somalia. JONES traveled to New York City, then flew via commercial aircraft to Kenya, with stopovers in Morocco and the United Arab Emirates. After arriving in Kenya, JONES traveled by land from Kenya to Somalia, which is a common travel route for foreign fighters traveling to Somalia to join al Shabaab.
In Somalia, JONES joined al Shabaab and was a member of the terrorist organization for approximately four years. During this time, JONES trained, worked, and fought with al Shabaab in Somalia. Among other things, JONES received three months of military training at an al Shabaab training camp, where he learned, among other things, how to operate an AK-47 assault rifle and rocket-propelled grenades. Upon completion of this training, JONES also was assigned to al Shabaab’s specialized fighting force, Jaysh Ayman, and participated in combat against soldiers of the Kenyan government on behalf of al Shabaab.
In particular, after joining Jaysh Ayman, JONES and his Jaysh Ayman unit participated in a battle in Afmadow, Somalia, against Kenyan government soldiers. JONES, armed with an AK-47 rifle, engaged in the fighting until he was injured by a missile and then hospitalized. After his release from the hospital, JONES continued to operate with al Shabaab and, in particular, Jaysh Ayman.
JONES has appeared with other al Shabaab fighters in videos that were recovered from an al Shabaab fighter who participated in and was killed during the aforementioned Lamu Attack. In one of the videos, JONES can be seen holding a firearm, and in the company of several al Shabaab fighters. The al Shabaab fighters are depicted greeting each other, hugging each other, and carrying firearms.
On December 7, 2015, JONES was taken into custody by Somali authorities while he was attempting to procure a boat to depart Somalia for Yemen.
* * *
In addition to the prison term, JONES, 33, of Baltimore, Maryland, was sentenced to five years of supervised release.
Mr. Berman and Mr. Demers praised the investigative work of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. He also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs, and the U.S. Department of State, for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Andrew J. DeFilippis and Shawn G. Crowley, and Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section, are in charge of the prosecution.
U.S. Obtains $114 Million Judgment Against Three Individuals for Paying Kickbacks for Laboratory Referrals and Causing Claims for Medically Unnecessary TestsRead the Press Release
WASHINGTON – On May 23, 2018, the United States District Court in the District of South Carolina entered judgment for the United States in the amounts of $111,109,655.30 against defendants LaTonya Mallory, Floyd Calhoun Dent III and Robert Bradford Johnson, and for an additional $3,039,006.56 against Johnson and Dent, the Department of Justice announced today. The judgment follows the January 31, 2018, jury verdict finding the three individuals liable for violating the False Claims Act (FCA) by paying remuneration to physicians in exchange for patient referrals, in violation of the Anti-Kickback Statute, and causing two laboratories to bill federal health care programs for medically unnecessary testing.
“Improper financial relationships between physicians and laboratories can distort a physicians’ best judgment for their patients, in addition to undermining patient health and trust,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad Readler. “Executives and other individuals who break the law will be held personally accountable for their actions.
During a two-week jury trial held in Charleston, South Carolina, the government introduced evidence that the defendants paid physicians remuneration disguised as processing and handling fees of between $10 and $17 for each patient they referred to two blood testing laboratories: Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia; and Singulex Inc., of Alameda, California. The government also introduced evidence that the kickback scheme resulted in physicians referring patients to HDL and Singulex for medically unnecessary tests, which were then billed to federal health care programs.
The jury found Mallory, HDL’s former CEO, and Johnson and Dent, who marketed and sold HDL’s and Singulex’s tests, jointly and severally liable for causing the submission of 35,074 false claims, worth $16,601,591, submitted to Medicare and TRICARE by HDL. The jury also found defendants Dent and Johnson jointly and severally liable for an additional 3,813 false claims, worth $467,935, submitted by Singulex. As provided by the FCA, the Court trebled those damage amounts, offset settlement payments received from HDL and Singulex for the same claims, and awarded $63.8 million in penalties requested by the United States, for a total judgment of $114,148,661.86.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The Court’s damages award in this case recognizes the seriousness of what these defendants did,” said Sherri A. Lydon, U.S. Attorney for the District of South Carolina. “Paying kickbacks to cause unnecessary tests injures patients, the Medicare Program, and American taxpayers and the District of South Carolina will continue to pursue those who participate in such conduct.”
“This judgment affirms that individuals who cheat Medicare and TRICARE will not be allowed to enjoy their ill-gotten gains,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “This office joins with its Department of Justice colleagues in our mutual commitment to investigate misconduct and recover funds unlawfully obtained from federal healthcare programs.”
“Laboratories that pay kickbacks to physicians in exchange for referrals of business exploit patients and taxpayer-funded health care programs,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services, Office of Inspector General. “Our agency is dedicated to investigating such corrosive kickback schemes, as they undermine the public’s trust in medical professionals, and the integrity of government health care programs.”
“The FBI will continue to aggressively investigate allegations of criminal misconduct between companies and individuals who engage in kickback schemes at the expense of the U.S. government,” said Acting Assistant Director of the Criminal Investigative Division Chris Hacker. “We recognize the importance of those who came forward and brought allegations to light and realize that we cannot do our work without the public’s help.”
The claims resolved by the court’s order were originally brought in three lawsuits filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The Act permits the United States to intervene in and take over the whistleblower suit, as the United States did, in part, in the three consolidated actions against Mallory, Dent, Johnson and others in August 2015. The whistleblowers’ share of any recovery has yet to be determined.
The cases were litigated by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorneys’ Offices for the District of South Carolina and the District of Columbia. The U.S. Attorney’s Office for the Middle District of North Carolina, HHS-OIG, the FBI’s Columbia Field Office and FBIHQ’s Major Provider Response Team, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service assisted with the investigation.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.).
U.S. Military Base Employee Admits Bribery Scheme Involving Government ContractsRead the Press Release
NEWARK, N.J. – A civilian employee at Picatinny Arsenal today admitted his role in a scheme that traded bribes and other gratuities for favorable treatment on government contracts, U.S. Attorney Craig Carpenito announced.
Joseph Gooch, 60, of Morristown, New Jersey, pleaded guilty before U.S. District Judge John Vazquez in Newark federal court to an information charging him with accepting or receiving things of value in return for favorable assistance with government contracts and making false claims against the United States.
According to documents filed in this case and statements made in court:
Gooch was assigned as a general engineer and was authorized by the U.S. Army to act as its representative on contracts made with federal contracting companies. As such, he had the authority to evaluate a contracting company’s work and could influence whether additional contracts should be granted.
From January 2006 through December 2017, Gooch conspired with other Picatinny Arsenal employees and employees of a defense contracting firm identified in the information as “Company A” to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at least $150,000 to $250,000, in exchange for government contracts and other favorable assistance for Company A at Picatinny Arsenal.
Gooch also conspired with other Picatinny Arsenal and Company A employees to file false bills to the United States that wrote off the cost of the bribes as “materials” needed on the government contracts.
The conspiracy charge to which Gooch pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 11, 2018.
Irene Pombo, a Company A employee, and her daughter, Nicole Pier, another Picatinny Arsenal employee, pleaded guilty to their roles in the conspiracy in March 2018 and await sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: Stacy Biancamano Esq., Chatham, New Jersey
U.S. Attorney Joins Forces with Federal, State and Local Leaders and Experts to Combat the Devastating Environmental Effects of Public-Land Marijuana GrowsRead the Press Release
SACRAMENTO, Calif. — Today, federal, state, and local leaders joined with experts to highlight the devastating damage that illegal, public-land marijuana grows do to our national forests, the wildlife who inhabit them, and the streams and waterways that flow through them.
Making the announcement today were U.S. Attorney McGregor W. Scott; U.S. Department of Agriculture’s Forest Service Director of Law Enforcement and Investigations Tracy Perry; California Attorney General Xavier Becerra; U.S.D.A. Pacific Southwest Regional Forester Randy Moore; Integral Ecology Research Center Director Dr. Mourad Gabriel; California National Guard Major General David Baldwin; Fresno County Sheriff Margaret Mims; Siskiyou County Sheriff Jon Lopey; and the Director of High Intensity Drug Trafficking Areas (HIDTA) program Bill Ruzzamenti.
Every year, acres of marijuana are illegally planted throughout the nation’s pristine public lands; the damage is widespread and long-lasting. While law enforcement have worked for years to eradicate these illegal marijuana grows, new data has emerged to show how they cause far-reaching harm to the environment and threaten public safety.
“Growing marijuana on federal public lands is, and has always been, illegal, and the destruction it wreaks on the environment must be stopped,” said U.S. Attorney Scott. “Our national parks and forests are priceless treasures held in trust for the public to enjoy for generations to come. But these assets are being destroyed by criminal organizations that cultivate millions of marijuana plants on these lands each year for profit. The growing scientific evidence showing the depth and scale of this destruction to the forests, wildlife and waterways is a wake‑up call that we must heed. My office is committed to raising awareness about this issue and joining with our partners to put an end to this profound problem.”
U.S. Department of Agriculture’s Forest Service Director of Law Enforcement and Investigations Tracy Perry stated, “The illegal cultivation of marijuana on National Forest System lands poses a significant risk to the public, to Forest Service employees, and to the environment. The Forest Service is committed to working in partnership with our federal, state and local cooperators to ensure that our National Forests are a safe place to visit and that our precious natural resources are protected for present and future generations.”
“The illegal growth of cannabis is undeniably a major threat to public safety. It is also killing our wildlife, polluting our waters, and destroying our public lands,” said Attorney General Xavier Becerra. “At the California Department of Justice, we work hard with our federal and local law enforcement partners to combat illegal marijuana planting under our Campaign Against Marijuana Planting (CAMP) program. We will enforce California’s cannabis laws to protect our people and those who play by the rules in this emerging industry and we will hold accountable those who don’t.”
Dr. Gabriel of the Integral Ecology Research Center said: “California now has contaminated water, soil, plants and wildlife due to the clandestine actions of those cultivating marijuana on our public lands. We are at a precipice where we can either ignore the prologue of the past when public resources were illegally exploited for monetary gain or proactively conserve these national public lands for future generations to use and enjoy.”
Those who plant and tend the illegal grows use toxic fertilizers, pesticides, and rodenticides that find their way into the soil and streams, and consequently infect, poison, and kill plants and wildlife. Research shows that these poisons are carried away from the grow sites and are ingested by threatened species as well as species that are hunted and consumed by humans for food. One of the deadliest pesticides, carbofuran, which is banned on all crops grown for human consumption, has been increasingly used at these sites with experts finding signs of it at 78 percent of all known grow sites. According to Dr. Gabriel, of the Integral Ecology Research Center, who presented today, 70 percent of northern spotted owls, a federally listed species, tested positive for pesticides. The poisons also find their way into water supplies for towns and cities downstream.
Those responsible for the illegal cultivation also leave behind piles of garbage and waste, including PVC pipes, irrigation lines, gardening tools and human waste, which add to the blight on these previously undisturbed habitats. In addition to the poison and waste, the cultivators divert water to the marijuana plants, drying up streams and reservoirs used for plants, animals and humans. According to Dr. Gabriel, by even a conservative estimate, a single marijuana plant uses about six gallons of water per day. The 1.1 million illegal marijuana plants removed in California in 2016 would have used approximately 1.3 billion gallons of water, which is as much as the consumption of up to three months in the municipality of San Francisco.
According to HIDTA Director Bill Ruzzamenti: “Many public land trespass marijuana cultivation sites and complexes are operated by drug trafficking organizations that are ultimately controlled by Mexican drug cartels. Every year, agents arrest scores of Mexican nationals illegally growing marijuana. While relatively few suspects talk to police, some do, and some claim to be affiliated with Mexican drug cartels, usually naming the Sinaloa Cartel. In 2017, an investigation of a public land marijuana grow site complex in Siskiyou County yielded indications of involvement by the Cartel Jalisco Nueva Generación (CJNG or Jalisco New Generation).”
By bringing together subject matter experts, federal, state, and local law enforcement can reclaim illegal marijuana grow sites, and protect the environment and the public. These efforts will be supported by Congress’s recent appropriate of money to the Forest Service to use in combating this problem.
Two Foreign Nationals Sentenced for Illegally Reentering the United StatesRead the Press Release
Defendants were from Guatemala and Mexico and both had prior illegal entry convictions
HUNTINGTON, W.Va. – Two men, Roberto Tulul-Ambrocio and Victor Santa Maria-Cleofas were both sentenced for the felony offense of Reentry of a Removed Alien, given credit for the time they spent incarcerated, and were both immediately remanded for deportation proceedings, announced United States Attorney Mike Stuart. Tulul-Ambrocio, 30, of Guatemala, has been in federal custody since January 16, 2018. Santa Maria-Cleofas, 47, had been in custody since March 15, 2018. United States Attorney Mike Stuart praised the work of Immigration and Customs Enforcement (ICE).
“I embrace legal immigration,” said United States Attorney Mike Stuart. “But we will not tolerate those who time and time again try to evade the system and enter the United States illegally.”
On January 16, 2018, Mr. Tulul-Ambrocio, was arrested by ICE officers in Hurricane traveling to a restaurant where he worked. The ICE agents confirmed that Tulul-Ambrocio, was not in the United States legally, and he was taken into federal custody. Fingerprints taken from the defendant matched him to two prior removals in 2011. He was also convicted of illegally entering the United States in Arizona. After this conviction, Tulul-Ambrocio, was again deported from the United States on November 25, 2011 Tulul-Ambrocio then reentered the United States without legal permission from the Secretary of Homeland Security. Tulul-Ambrocio is a citizen of Guatemala.
On March 15, 2018, Mr. Santa Maria-Cleofas, was arrested by ICE officers in Hurricane also traveling to the same restaurant. The ICE agents confirmed that Santa Maria-Cleofas, was not in the United States legally, and he was taken into federal custody. Fingerprints taken from the defendant matched him to four prior removals in 2001, 2004, 2008 and 2010. He was also convicted of illegally entering the United States in Arizona in 2010. After this conviction, Santa Maria-Cleofas was again deported from the United States on December 1, 2010. Santa Maria-Cleofas then reentered the United States without legal permission from the Secretary of Homeland Security. Santa Maria-Cleofas is a citizen of Mexico.
Assistant United States Attorney Erik S. Goes prosecuted both matters. United States District Judge Robert C. Chambers presided over the sentencing hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Tahlequah Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Eric Lynn Garman, age 35, of Tahlequah, Oklahoma, pled guilty to Possession Of Certain Material Involving The Sexual Exploitation Of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by up to 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that between on or about August 14, 2017, to on or about November 30, 2017, in the Eastern District of Oklahoma, the defendant did knowingly possess, attempt to possess and access with intent to view, matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), which said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, 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 Edward Snow represented the United States.
Southern California Drug Trafficker Sentenced to 17 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Francisco Nuno-Urenda, 41, of Los Angeles, California, was sentenced today to 17 years in federal prison for his role in a drug trafficking scheme that brought distribution quantities of methamphetamine, marijuana, cocaine, and heroin into Oregon. Nuno-Urenda was also ordered to pay $75,000 and will be on supervised release for five years at the conclusion of his prison sentenced.
According to court documents, Nuno-Urenda was a drug trafficker based in California who sourced drugs from Mexico and shipped them throughout the U.S. He supplied numerous drug trafficking organizations including a network that operated in the Portland metropolitan area. Nuno-Urenda was indicted along with 15 other codefendants, most of whom were lower level conspirators. Investigators determined that Nuno-Urenda maintained contact with approximately 15 suppliers in Mexico who were connected to two or three different Mexican drug cartels.
Nuno-Urenda previously pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine on Thursday, February 15, 2018.
This case was investigated by the FBI and was prosecuted by Kemp L. Strickland, Assistant U.S. Attorney for the District of Oregon.
South Florida Resident Pleads Guilty to Impersonating a Member of the Saudi Royal FamilyRead the Press Release
On May 25, 2018, Anthony Gignac, a/k/a “Khaled Al-Saud,” a/k/a “Khalid Al-Saud,” a/k/a “Khalid Bin Al-Saud,” a/k/a “Khalid Bin Sultan Al-Saud,” a/k/a “Sultan Bin Khalid Al Saud,” 47, of Miami, pled guilty to one count of impersonating a foreign diplomat or foreign government official, in violation of Title 18, United States Code, Section 915, one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a), and one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 922(g)(1).
Defendant Gignac fraudulently assumed the identity of a member of the Saudi Royal family in order to build relationships worldwide, including in South Florida, receive gifts and conduct a large-scale scheme to defraud would-be investors.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Fred Stolper, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), made the announcement.
In June of 2015, Gignac and one of his co-conspirators created a fraudulent investment company, Marden Williams International LLC (“MWI”). MWI sought financial investments from individuals and businesses worldwide for purported business opportunities that did not in fact exist. As part of their efforts, Gignac and his co-conspirators falsely represented to potential financial investors that the defendant was a member of the Saudi Royal family and had exclusive business opportunities for them to invest in, because of the defendant’s royal status. One of the fraudulent investment schemes was purported to be a pre-initial private offering of a legitimate private Saudi Arabian business. One victim invested approximately $5,000,000 into the fraudulent scheme.
Beginning in March of 2017, Gignac presented himself as a member of the Saudi Royal family in an attempt to purchase a multi-million dollar hotel in Miami. Gignac stayed at the hotel using a credit card in the name of a member of the Saudi Royal family, without that individual’s authorization. When visiting the hotel, Gignac drove a Ferrari with diplomatic license plates.
Gignac also claimed ownership of a residence on Fisher Island and had a “Sultan” nameplate at the front door. He falsely told others that he had diplomatic immunity and was required to check in with the U.S. Department of State every few hours. Gignac was given gifts, including expensive paintings and jewelry, based on his false representations.
In addition, on November 19, 2017, Gignac flew into John F. Kennedy International Airport in New York, from London, using a passport in the name of another individual.
As a result of this fraudulent scheme, law enforcement executed a search warrant at Gignac’s residence in Miami and discovered two fraudulent diplomatic license plates, a fraudulent DSS Special Agent badge, unauthorized credit cards and financial documents in the name of a member of the Saudi Royal family, ammunition, thousands of dollars in U.S. currency, jewelry and artwork.
According to the court record, Gignac had falsely claimed, in the past, to be a member of the Saudi Royal family.
The defendant faces a maximum of 10 years in prison for impersonating a foreign diplomat or foreign government official, a maximum of 20 years in prison for conspiracy to commit wire fraud, and a mandatory consecutive term of 2 years in prison for the aggravated identity theft charge of conviction.
Mr. Greenberg commended the investigative efforts of the DSS in this matter. The case is being prosecuted by Assistant United States Attorney Trinity Jordan.
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
Roanoke Rapids Man Sentenced for Felon in Possession of a Firearm and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Terrance W. Boyle sentenced MICHAEL RAKIM BELFIELD, 30, of Roanoke Rapids to 144 months of imprisonment followed by 5 years of supervised release.
BELFIELD was named in a three-count Indictment filed on December 13, 2016. On May 9, 2017, BELFIELD pled guilty to one-count of Possession of a Firearm by Convicted Felon and one-count of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime.
The investigation began in 2015 when the Roanoke Rapids Police Department received information that BELFIELD was selling cocaine at his residence in Roanoke Rapids. A confidential source (CS) made three controlled purchases of cocaine from BELFIELD at his residence.
On April 16, 2015, officers with the Halifax City/County Drug Task Force executed a search warrant at BELFIELD’S residence, where BELFIELD was present. BELFIELD informed officers that a firearm was in his bedroom. Officers subsequently located a .40 caliber handgun loaded with 13 rounds of ammunition, 38 bindles of heroin inside the ammunition box, .5 gram of crack cocaine, a digital scale with white powder residue, razor blade with white powder residue, and plastic baggies from BELFIELD’S bedroom.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Roanoke Rapids Police Department, Halifax County Sheriff’s Office, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), and the North Carolina Crime Laboratory conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Pueblo Resident Sentenced for Stealing Mail from Back of Mail TruckRead the Press Release
DENVER – Guadalupe Joseph Huerta, age 35, of Pueblo, Colorado, was sentenced late last week to serve 21 months in federal prison by U.S. District Court Judge Raymond P. Moore for stealing mail from the back of a mail truck, U.S. Attorney Bob Troyer and U.S. Postal Inspector in Charge of the Denver Division Craig Goldberg announced. After serving his prison sentence, Huerta was ordered to serve 3 years on supervised release. There was no order of restitution as law enforcement recovered mail before Huerta could leave the area. The defendant appeared at the sentencing hearing in custody and was remanded at its conclusion.
Huerta was indicted by a federal grand jury in Denver on June 6, 2017. He pled guilty on February 21, 2018, and was sentenced on May 23, 2018.
On April 25, 2017 at approximately 3:20 p.m., a Pueblo resident saw a man taking a bin of mail from the back of a Postal vehicle. The resident called her spouse, who notified the Pueblo Police Department. When a police officer arrived on scene, he observed the described male, the defendant, on his phone and standing with a bin of mail at his feet. When the officer exited his vehicle, the defendant took off running and dropped his jacket. A foot chase ensued and backup arrived. The defendant jumped fences, ran through a cemetery, and eventually ended up in a shed. When officers ordered the defendant out of the shed, he burst through the back of the shed and continued running. At some point, the defendant tried to use an appliance on the street to jump a six-foot privacy fence. He slipped and officers engaged in a physical struggle. The defendant eventually ended up on the ground, but had to be Tasered twice to be handcuffed. Shortly after, the resident positively identified the defendant as the person who had broken into the postal vehicle.
The black leather coat dropped on the ground by the defendant after seeing the police officer had a set of keys marked “US Mail”. It also had 6 items of mail, 7 checks totaling $33,218, and 2 credit cards among other items. In total, there were 100 victims.
“For more than 240 years, the United States Postal Service has worked to provide everyone in the United States with secure, efficient and affordable mail service,” said U.S. Attorney Bob Troyer. “Mail thieves like Huerta deprive us of this essential service. Thanks to an engaged community member, excellent law enforcement, and our prosecutors, even this mail got delivered.”
“The Postal Inspection Service applauds the efforts of our Colorado Springs Postal Inspectors and the Pueblo Police Department, as they worked together to apprehend a subject related to an obvious mail theft,” said Craig Goldberg, Inspector In Charge of the Denver Division of the U.S. Postal Inspection Service. “Postal Inspectors are dedicated to protecting the mail from all those who seek to use or obtain mail for illegal purposes, and we will continue working with our law enforcement partners to identify and hold accountable those individuals who attempt to disrupt the safe delivery of the U.S. Mail,” said Goldberg.
This case was investigated by the Pueblo Police Department and the U.S. Postal Inspection Service. The defendant was prosecuted by Assistant U.S. Attorney Hetal J. Doshi.
Previously Convicted Felon from Newark Sentenced to 162 Months in Prison for Firearms Possession, Drug Distribution OffensesRead the Press Release
NEWARK, N.J. – A Newark man with at least six felony convictions in New Jersey courts was sentenced today to 162 months in prison on multiple counts of illegal firearms possession and drug distribution, U.S. Attorney Craig Carpenito announced.
Carlos Bess, 39, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with two counts of illegal possession of a firearm as a convicted felon and four counts of distribution and possession with intent to distribute heroin and cocaine. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since June 2015, agents with the Drug Enforcement Agency (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating the sales of narcotics, including heroin and cocaine, as well as the unlawful possession of firearms by convicted felons. The investigation has revealed that on July 23, 2015, Bess unlawfully possessed two Rebel Arms AR-15 rifles. On Sept. 30, 2015, and Dec. 1, 2015, Bess sold heroin to another individual in Newark. During a search of a residence controlled by Bess in Newark, federal agents recovered an additional five firearms illegally possessed by Bess—a loaded .357 revolver, 2 loaded .380 pistols, a loaded 9 millimeter pistol, a 12-gauge shotgun. Agents also recovered more heroin and more than 500 grams of cocaine.
U.S. Attorney Carpenito credited special agents with the ATF, under the direction of Special Agent in Charge John Devito in Newark, and special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark.
Defense Counsel: Frank P. Arleo Esq., West Orange, New Jersey
Prattville Man, Shelby County Woman Indicted for Child Pornography, EnticementRead the Press Release
BIRMINGHAM – A federal grand jury today indicted an Alabama couple on child pornography charges, announced U.S. Attorney Jay E. Town and ICE Homeland Security Investigations Special Agent in Charge Jere T. Miles.
A two-count indictment filed in U.S. District Court charges KENNETH EARL HOOKS, 35, of Prattville, and SARAH PAULINE MORRIS, 28, of Shelby County, with producing child pornography and enticing a young child to engage in sexual activity for the purpose of creating obscene images between December 2016 and August 2017.
Police in California found Hooks and Morris living in a desert area on the southern tip of the state after locating a red Mitsubishi Montero with an Alabama license plate there, according to a May 4 federal criminal complaint and arrest affidavit issued for Hooks in the Northern District of Alabama. The red Mitsubishi was registered to Morris and police were searching for it because security cameras at a Walmart in Brawley, Calif., caught her driving it on March 30 when security officers at the store saw Morris attempting to film two young girls in a bathroom stall, according to the affidavit.
“ICE-HSI and U.S. Marshals proved in this case that federal law enforcement is resolved to see child predators prosecuted, and that resolve doesn’t waiver when fugitives flee across state lines,” Town said. “Our net will always be bigger than their map.”
Producing child pornography carries a penalty of 15 to 30 years in prison and a maximum $250,000 fine. Enticing a minor to engage in sexual activity in order to produce child pornography carries a sentence of 10 years to life in prison and a maximum $250,000 fine.
Immigrations and Customs Enforcement’s HSI investigated the case, which Assistant U.S. Attorney Xavier Carter is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Parma man sentenced to 16 years in prison for leading cocaine conspiracyRead the Press Release
A Parma man was sentenced to 16 years in prison for leading a cocaine conspiracy.
Gilbert Mendez, 40, previously pleaded guilty to conspiracy to possess with intent to distribute cocaine, distribution of cocaine and related crimes.
Mendez obtained at large amounts of cocaine from suppliers. Mendez and co-conspirators then cooked the drug into crack cocaine, which they stored at stash houses on West 54th Street and Finn Avenue, according to court documents.
Mendez and others sold the drugs from an auto body shop on West 63rd Street and other locations, according to court documents.
This case was investigated by Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
The case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler, Margaret A. Sweeney and Patrick P. Burke.
Operator of North Jersey Tax Preparation Business Convicted of Tax FraudRead the Press Release
NEWARK, N.J. – A Kissimmee, Florida, man was convicted at trial today of tax fraud, U.S. Attorney Craig Carpenito announced.
Sixto Rodriguez, 55, was found guilty of all 17 counts of an indictment charging him with three counts of filing false tax returns on behalf of himself and fourteen counts of aiding and assisting in the preparation and presentation of false tax returns on behalf of his tax preparation clients. He was convicted following a one-week trial before U.S. District Judge Kevin McNulty.
According to documents filed in this case and statements made in court:
From 2004 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.
Rodriguez inflated education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. On average, for the clients charged in the indictment, this resulted in his clients receiving more than $4,000 in refunds per return, to which they were not entitled. Rodriguez also failed to report more than $230,000 in net profits he made from his business from 2007 through 2009 and personally avoided paying more than $89,000 in taxes as a result.
The charges on which Rodriguez was convicted each carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 21, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s conviction.
The government is represented by Senior Litigation Counsel Daniel V. Shapiro of the Economic Crimes Unit in Newark and Assistant U.S. Attorney David M. Eskew, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Operation Kryptonite: Savanna Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dustin Lee Hall, age 31, of Savanna, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A), punishable by not less than 10 years imprisonment, up to a $10,000,000 fine, or both.
The Indictment alleged that beginning in or about April 17, 2017, and continuing until on or about December 26, 2017, in the Eastern District of Oklahoma and elsewhere, the defendant, did willfully and knowingly combine, conspire, confederate and agree, and with others known and unknown to the Grand Jury, to commit offenses against the United States.
The charges arose from a joint investigation entitled “Kryptonite” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, 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 Kristin Harrington represented the United States.
Old Town Woman Sentenced to 3½ Years for Maintaining a Drug Involved PremisesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Alialin Doughty, 29, of Old Town, Maine, was sentenced in U.S. District Court by Chief Judge Nancy Torresen to 3½ years in prison and three years of supervised release for maintaining a drug involved premises. Doughty pled guilty on October 25, 2017.
According to court records, between April 2013 and July 2015, Doughty allowed her Bangor apartment to be used by Yanel Greene, Mario Lee and others to store, package and sell over 2.2 kilograms of cocaine base, commonly known as “crack,” 154 grams of heroin and oxycodone.
In sentencing the defendant, Chief Judge Torresen said that “a lot of poison had been pumped into the community” through the defendant’s apartment and that the defendant’s conduct was aggravated by her 2009 state drug conviction for essentially the same kind of conduct -- making her apartment available as a location for drug dealers to operate.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
North Alabama Man Indicted for Trafficking Drugs, Including FentanylRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Madison man for conspiracy to distribute methamphetamine, Fentanyl and Alprazolam in Madison County and elsewhere in the Northern District of Alabama, announced U.S. Attorney Jay E. Town and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
A seven-count indictment filed in U.S. District Court charges JOSEPH WILLIAM DAVIS, 25, with the drug-distribution conspiracy in 2016 and 2017, and with possessing firearms, a Glock G22 semi-automatic handgun and a Bushmaster Carbon 15 semi-automatic rifle, in furtherance of the conspiracy. As part of the conspiracy, Davis possessed with intent to distribute 50 grams or more of methamphetamine on March 2, 2017, in Madison County, and both possessed and attempted to possess with the intent to distribute Alprazolam, an anti-anxiety medication, on March 8, in Cullman County, according to the indictment.
On March 2, the indictment also charges, Davis possessed with intent to distribute 40 grams or more of Fentanyl, a synthetic opioid at least 50 times more potent than heroin, and possessed with intent to distribute both cocaine and Alprazolam.
“Drug traffickers bring gun violence to our neighborhoods and peddle their deadly poison without regard to the pain and ruin they leave behind,” Town said. “The Postal Inspection Service is one of the many law enforcement agencies working with the U.S. Attorney’s Office to ensure these drug dealers are caught, prosecuted and sent to prison.”
The penalty for the conspiracy charge and for the distribution charge involving 50 grams or more of methamphetamine is 10 years to life in prison and a maximum $10 million fine. The penalty for possessing firearms in furtherance of drug-trafficking crimes is five years to life in prison, served consecutively to any other prison term imposed, and a maximum $250,000 fine.
Possessing with intent to distribute 40 grams or more of Fentanyl carries a five- to 40-year prison sentence and a maximum $5 million fine. Possessing cocaine with intent to distribute carries a maximum penalty of 20 years in prison and a $250,000 fine. Possession of Alprazolam with intent to distribute carries a maximum penalty of five years in prison and a $250,000 fine.
U.S. Postal Inspectors, the Drug Enforcement Administration, Huntsville-Madison County STAC, and the Cullman County Sheriff's Department investigated the case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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New Orleans Man Pleads Guilty to Producing Child PornographyRead the Press Release
United States Attorney Duane A. Evans announced today that JON C. BALLAY, age 58, of New Orleans, Louisiana, pleaded guilty today before United States District Judge Jay Zainey to one count of producing images depicting the sexual exploitation of a fourteen-year-old female.
According to court documents, on May 23, 2017, law enforcement authorities executed a search warrant at the Olde Town Inn, located at 2311 North Rampart Street, in New Orleans, Louisiana. During the execution of the search warrant, authorities found and recovered the victim with BALLAY and seized several electronic devices belonging to BALLAY, including a Samsung Galaxy Express Prime cellular telephone affiliated with a local phone number. BALLAY used cellular phones to take approximately twenty (20) sexually explicit images of the victim between May 15, 2017 and May 22, 2017, at multiple hotels in the greater New Orleans area.
Sentencing before Judge Zainey has been scheduled for August 28, 2018. BALLAY faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum term of thirty (30) years, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and specifically the FBI New Orleans Violent Crimes Against Children Task Force, which includes members of the Jefferson Parish Sheriff’s Office, the Kenner Police Department, and the Louisiana State Police. The case is being prosecuted by Assistant United States Attorneys Jordan Ginsberg and David Howard Sinkman.
Navajo Woman from Navajo, N.M., Sentenced to Ten Years for Federal Assault and Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Elmira Curley, 22, an enrolled member of the Navajo Nation who resides in Navajo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison for her conviction on assault and child abuse charges. Curley will be on supervised release for five years after completing her prison sentence.
The FBI and Navajo Nation Division of Public Safety arrested Curley on July 6, 2016, on an indictment charging her with abusing a child resulting in great bodily harm. The indictment alleged that Curley committed the crime on the Navajo Indian Reservation in McKinley County, N.M., on March 14, 2016.
On Feb. 13, 2018, Curley pled guilty to a two-count felony information charging her with assault resulting in serious bodily harm and child abuse. In her plea agreement, Curley admitted that on March 14, 2016, she committed the crimes of assault and child abuse in Navajo, N.M., which is on the Navajo Indian Reservation. Curley admitted committing these crimes by putting the legs and feet of a nine-month-old infant into a bathtub of scalding hot water and causing the infant to sustain severe burns. Curley acknowledged that the infant-victim was hospitalized for several weeks for medical treatment and received skin grafts to repair some of the second- and third-degree burns she sustained as the result of the assault and abuse.
The Gallup, N.M., and Phoenix, Ariz., offices of the FBI and the Window Rock, Ariz., office of the Navajo Nation Division of Public Safety investigated this case, which was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Mexican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Mexican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Carlos Altunar-Rueda, 25, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 4, 2018.
On Feb. 8, 2017, law enforcement officers in Boston encountered Altunar-Rueda and determined him to be illegally present in the United States. Altunar-Rueda was previously deported on Feb. 23, 2013.
Altunar-Rueda faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JOEL FLORES-GONZALES, age 42, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien.
According to the court documents, FLORES-GONZALES previously removed from the United States on June 20, 2016. He was later found in the Eastern District of Louisiana on March 12, 2018, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
FLORES-GONZALES faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Jay C. Zainey set sentencing for July 17, 2018.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican Businessman Sentenced to 75 Months in Prison for Orchestrating Fraud Scheme Against the Mexican Government to Obtain over $20 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CARLOS DJEMAL NEHMAD was sentenced today to 75 months in prison for orchestrating a scheme to fraudulently obtain over $20 million in tax refunds from the government of Mexico by creating the appearance of legitimate business activity through the transfer of over $100 million through dozens of shell companies in the United States and Mexico. DJEMAL’s sentence was imposed today in Manhattan federal court by U.S. District Judge Alvin K. Hellerstein. In addition to his prison sentence, DJEMAL was ordered to forfeit cash, artwork, and his shareholdings of Investabank, a Mexican bank in which DJEMAL was part owner.
U.S. Attorney Geoffrey S. Berman said: “Carlos Djemal Nehmad created an international network of shell companies in the United States and Mexico to defraud the Mexican government of millions of dollars. Today’s sentence is the cost of Djemal’s attempt to use the United States financial system to perpetrate fraud.”
According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Beginning in or about June 2011 through in or about at least May 2016, DJEMAL orchestrated a scheme to defraud the Mexican government of tax revenue relating to Mexico’s value added tax (“VAT”). The Mexican government imposes VAT on goods sold from one Mexican company to another; however, when certain goods (such as cellular phones) are exported from Mexico, the previously paid VAT is refunded to the exporter. DJEMAL created companies in Mexico and recruited individuals in the United States to create and control dozens of companies in the United States (“Front Companies”) purportedly doing business as importers and exporters of cellular phones in order for DJEMAL to fraudulently obtain VAT refunds from the Mexican government.
In order to carry out the scheme, DJEMAL caused Front Companies in Mexico to purchase outdated cellular phones from other companies seeking to sell outdated inventory. DJEMAL then caused these phones to be exported to Front Companies in the United States owned and operated by others that he recruited to the scheme. During the export process, DJEMAL obtained fraudulent invoices and created export documents that falsely inflated the value of the phones being exported, thereby enabling him to fraudulently seek inflated VAT refunds from the Mexican tax authority.
Once the phones were shipped to the United States, they were transferred to one or more Front Companies in the United States only to be shipped back to a different Front Company in Mexico. Through this process, the phones were shipped repeatedly in a circular fashion between Front Companies controlled by DJEMAL and his co-conspirators in Mexico and the United States, enabling DJEMAL to obtain multiple fraudulent VAT refunds for the same phones.
In order to create the appearance of legitimate cell phone sales, each transfer of phones was generally accompanied by a transfer of funds to and from accounts held in the name of the relevant Front Companies. Between approximately June 2011 to approximately May 2016, DJEMAL and his co-conspirators moved more than $100 million through dozens of accounts maintained by Front Companies in this fashion, including through accounts maintained at a financial institution in the Southern District of New York, in order to obtain over $20 million in VAT refunds from the Mexican government.
In addition to the 75-month prison term, DJEMAL was sentenced to three years of supervised release and ordered to forfeit and pay restitution in the amount of $21 million.
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Mr. Berman praised the outstanding investigative work of Internal Revenue Service, Criminal Investigations, Department of Homeland Security, Homeland Security Investigations and Customs and Border Protection, the Federal Deposit Insurance Corporation, Office of the Inspector General, and the helpful assistance of the Mexican Tax Administration Service, the Mexican Secretary of Finance and Public Credit, and the Mexican Office of the General Prosecutor.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Daniel M. Tracer is in charge of the prosecution.
Media Advisory: Press Conference to Announce Project Safe Neighborhood Gun Charges and ArrestsRead the Press Release
CEDAR RAPIDS, IA – There will be a press conference held on Wednesday, May 30, 2018, at 1:30 p.m. at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids. United States Attorney Peter E. Deegan, Jr. and representatives from federal and local law enforcement, including the Cedar Rapids, Waterloo, and Dubuque police departments, will be present at the press conference. The purpose of the press conference is to announce recent Project Safe Neighborhood gun charges and arrests in Eastern Iowa.
Project Safe Neighborhoods (PSN) is a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Event Details
When: May 30, 2018
Where: United States Attorney’s Office, 111 Seventh Ave SE
Time: 1:30 p.m.
A press release will be provided and interview opportunities will be available. Follow us on Twitter @USAO_NDIA.
McKean-FCI Inmate Sentenced to Spend 3 More Months in Prison for Possessing MarijuanaRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, pleaded guilty and was sentenced in federal court to three months in jail on his conviction of possession of contraband in prison, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jarrod William Burrell, 40. The sentence was imposed to run consecutively to the sentence Burrell is currently serving.
According to information presented to the court, on or about August 29, 2017, Burrell was in possession of contraband, namely a quantity of marijuana while an inmate at the McKean Federal Correctional Institution.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Burrell.
Massachusetts Man Sentenced to Nearly 8 Years for Bank and Credit Card Fraud and Tax EvasionRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Steven Nygren, 51, of Salem, Massachusetts, was sentenced Friday in U.S. District Court by Judge John A. Woodcock, Jr. to 95 months in prison and five years of supervised release for bank fraud, unauthorized use of credit card numbers, and tax evasion. He was also ordered to pay over $815,000 in restitution.
According to court records, from June 2014 through August 2015, Nygren used his position as financial manager of a Brooklin, Maine business to embezzle and forge 63 business checks worth over $732,000 and to charge $62,000 to business credit cards for unauthorized personal purchases. From 2010 through 2016, Nygren also evaded the payment of over $1,000,000 in previously assessed federal taxes and penalties for tax years dating back to 1996.
In announcing the lengthy sentence, Judge Woodcock noted that “cheating others has been a way of life for [Nygren].”
The investigation was conducted by the Maine State Police, the FBI, and the Internal Revenue Service, Criminal Investigation.
Mason County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Mason County man was sentenced today to 18 months in prison, announced United States Attorney Mike Stuart. Conrad D. Berkley, II, 37, of Gallipolis Ferry, previously pled guilty to being a felon in possession of a firearm. Stuart commended the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“It’s simple – convicted felons are prohibited from possessing guns,” said United States Attorney Mike Stuart. “As part of Project Safe Neighborhoods (PSN), we are working with ATF and state and local law enforcement partners to identify and prosecute felons like Berkley that have chosen to ignore federal gun laws.”
On April 3, 2017, Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives went to Drew’s Jewelry, Gun and Pawn in Gallipolis Ferry, West Virginia to determine if anyone had recently sold an AK-47 rifle to the store. Agents discovered that Berkley had sold a Century Arms, model RAS 47 to the store on March 27, 2017 for $148.00. Berkley was prohibited from possessing any firearm under federal law because of a 2007 conviction in Cabell County Circuit Court for Unlawful Wounding.
Assistant United States Attorney Stephanie S. Taylor is responsible for the prosecution.
United States District Judge Robert C. Chambers imposed the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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