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Friday 13 April 2018
Former CFO Sentenced for Embezzling $6.5 Million from KC CompanyRead the Press Release
KANSAS CITY, Mo. – The former chief financial officer of a Kansas City, Mo., company was sentenced in federal court today for embezzling more than $6.5 million from his employer.
Douglas Lee Ferrell, 34, of Kansas City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. The court also ordered Ferrell to pay $1,940,462 in restitution to his victims, which is the remaining loss amount after Ferrell’s partial repayment of restitution.
On Aug. 3, 2017, Ferrell pleaded guilty to wire fraud and money laundering.
Ferrell, hired as a family friend of his employer, began working for Scarbrough International at its headquarters in Kansas City, Mo., in 2005 as an account representative and became the company’s chief financial officer in 2012. Scarbrough International is a privately owned, U.S. Customs Broker and international freight forwarder.
Ferrell admitted that he embezzled approximately $6,523,742 from the company for his own use and enjoyment. Over a nearly eight-year period, from Sept. 1, 2006, to June 10, 2014, Ferrell engaged in a scheme to embezzle company funds by making unauthorized personal charges to the company’s credit card and PayPal accounts, and then using company funds to pay those charges.
Ferrell also made a number of financial transactions of funds that he knew were the proceeds of fraud, including a $650,000 wire transfer (that contained at least $475,625 in fraud proceeds) to Cayman National Bank in the Cayman Islands to purchase a beach house. Ferrell wired a total of more than $2,250,000 to purchase that property. Ferrell also used embezzled funds to ship furnishings from the United States for the property and for additional construction and improvements to the property, including over $77,000 in payments to a Cayman Islands tile company. After the improvements, paid for with additional embezzled funds, the property was valued at over $2.6 million.
According to court documents, Ferrell concealed his embezzlement through the years of controlling the company’s financial affairs and finding ways to blame others for the company’s financial woes. For example, Ferrell would scour the expenses of other employees, calling them out for their wastes of company funds, while he embezzled substantially greater sums. Ferrell also was involved in recommending persons to lay off while the company was going through the financial crisis in 2010, even though during 2010, Ferrell stole roughly $600,000. While not all of the 11 layoffs resulted from Ferrell’s fraud, a meaningful number did.
Ferrell’s fraud only stopped when American Express cancelled the company’s credit card on Friday, June 6, 2014. The following Monday, June 9, Ferrell told the Scarbroughs that he was leaving the company because he was pursuing the deal of a lifetime. That same week, American Express contacted the company and explained that the company’s American Express card was cancelled due to Ferrell’s charges. At that point, the company reviewed records and disclosed the fraud. Shortly thereafter, the Scarbroughs confronted Ferrell by phone about his embezzlement. On June 12, 2014, Ferrell met with the Scarbroughs and their attorneys, confessed to his fraud, and outlined a plan to liquidate assets to repay what he embezzled.
This case was prosecuted by Assistant U.S. Attorney Brian P. Casey. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Former Albertville City Judge Sentenced to 17 ½ Years in Prison for Child PornographyRead the Press Release
BIRMINGHAM – A federal judge on Wednesday sentenced an Albertville lawyer and former part-time municipal judge to 17½ years in prison on a child pornography crime, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
STEVEN VINCENT SMITH, 54, pleaded guilty in November to one count of receiving child pornography on a computer between January 2015 and March 2016. U.S. District Court Judge Virginia E. Hopkins sentenced Smith and ordered him to serve 10 years of supervised release following his prison term.
“This defendant swore to honor the law and uphold justice, but instead he committed loathsome crimes on the most vulnerable of victims,” Town said. “His innocent victims will grow into being survivors while Smith will spend most of his remaining breaths inside of a cell.”
According to the government’s sentencing memorandum, Smith “committed a shocking number of sex crimes.” Along with distributing child pornography on the internet and possessing thousands of images of child pornography, including photos of graphic sexual assaults on toddlers, Smith also molested a child, according to the sentencing memorandum. He also solicited the production of child pornography and advised other sexual predators on how to groom and molest children, the memorandum said.
Smith’s crimes spanned years, with forensic evidence showing him “discussing the rape of children and distributing child pornography as early as 2010,” according to the memorandum.
The FBI investigated the case in conjunction with the Alabama Law Enforcement Agency. Assistant U.S. Attorney Manu Balachandran prosecuted the case.
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Five Defendants Indicted for Selling Heroin and Fentanyl That Led to the Deaths of Six IndividualsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 23-count indictment charging four defendants with conspiracy to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. Charged in the conspiracy are:
• Robert Moore, a/k/a Fonz, a/k/a Charmy, 39 of Williamsville, NY;
• Reese Moore, a/k/a Detroit, 25 of Buffalo; NY
• Kevin Abernathy, a/k/a B, 31 also of Buffalo; and
• Joshua Levine, 21 of Lancaster, NY.Robert Moore is also charged with five counts of causing death from the distribution of heroin and/or fentanyl and 12 counts of possession with intent to distribute, and distribution, of heroin, fentanyl, and butyryl fentanyl. Joshua Levine is charged with one count of causing death from the distribution of heroin and fentanyl and two counts of possession with intent to distribute, and distribution, of fentanyl. The additional charges against Robert Moore and Joshua Levine carry a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $20,000,000 fine.
In addition to the conspiracy charge, Reese Moore (Robert’s brother) is charged with three counts of distribution of fentanyl and Kevin Abernathy is charged with one count of distribution of fentanyl. Those charges carry a mandatory minimum penalty of 10 years, a maximum of life in prison, and a $10,000,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that according to the indictment, the defendants distributed heroin, fentanyl, and butyryl fentanyl for over two years in the City of Buffalo and surrounding areas. Many of the sales occurred on residential streets in Buffalo, in parking lots of businesses in Amherst and Lancaster, and several times at a local mall. The defendants are responsible for distributing thousands of doses of opiates and causing multiple overdoses, including the five charged deaths. The decedents include a 21-year-old Lockport woman, a 45-year-old Buffalo man, and three Lancaster men, ages 24, 31, and 36. All five were reportedly in treatment for their addictions when they relapsed and immediately overdosed from the potent fentanyl.
Robert Moore was arrested on March 16, 2017, after authorities executed a search warrant at his home on Glenwood Drive in Williamsville. Law enforcement officers recovered 200 doses of fentanyl inside the residence. Over $49,000 in cash, over $440,000 in jewelry, and a 2009 Audi S5 Quattro were also seized from Moore’s residence.
Levine was also arrested on March 16, 2017 following the execution of a search warrant at his residence on Aurora Street in Lancaster. Officers recovered 26 doses of fentanyl inside his residence.
Robert Moore and Joshua Levine have been detained since their arrest in March 2017. Reese Moore and Kevin Abernathy were arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy. They are being held pending a detention hearing on April 17, 2018 at 2:00 p.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
In a separate case, a federal grand jury has returned a second superseding indictment charging Oliver Kimmons, a/k/a Ollie, a/k/a Ali, 49, of Lockport NY, with distribution of fentanyl causing death, conspiracy to distribute heroin and fentanyl, possession of heroin, fentanyl, and cocaine with intent to distribute, maintaining two drug-involved premises and human sex trafficking. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum of life and a $20,000,000 fine.
Assistant U.S. Attorney Meghan Tokash, who is handling the case, stated that according to the second superseding indictment, on January 30, 2015, the defendant distributed fentanyl which resulted in the death of an individual identified as “H.C.”Kimmons was previously indicted on other drug and sex trafficking charges. According to the previous indictment, over the course of three years, the defendant solicited young, opiate-addicted women to have sex with paying customers. In exchange, Kimmons provided the victims with drugs. The defendant drove the victims to farms, dairies, and Indian Reservations in Western New York where they engaged in sex acts with paying customers. Kimmons collected the money from customers and then “paid” his victims in heroin. The defendant also had sex with the victims in exchange for drugs.
“All told, at least six people lost their lives as a result of the conduct charged in these indictments,” said U.S. Attorney Kennedy. “Not only did those charged with causing the deaths of others peddle their poison for profit, but they did so by preying upon some of the most vulnerable members in our community. That makes them predators, and it is my Office’s job to work with our federal, state, and local partners in law enforcement, as we did here, to remove predators from our community.”
“This indictment is a significant step in bringing drug dealers to justice for causing overdose deaths as a result of their illegal actions,” stated DEA Special Agent-in-Charge James J. Hunt. “I commend the men and women who worked diligently on this investigation.”
New York State Police Superintendent George P. Beach stated, “The New York State Police and our Community Narcotics Enforcement Team remain committed to working with our partners in law enforcement to identify dealers, put them out of business and to send a clear message to anyone trafficking these dangerous and deadly drugs - you will be found, you will be prosecuted, and you will go to prison.”
Amherst Police Chief John Askey stated, “Our communities, families and friends continue to suffer as the result of the opiate epidemic. This case demonstrates the determination and commitment of law enforcement at all levels in Western NY. We will aggressively investigate, arrest and prosecute those individuals and groups that deal and profit while knowing the devastating effects of their actions. Congratulations to the law enforcement professionals and prosecutors for your outstanding work.”
These indictments are the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Amherst Police Department, under the direction of Chief John C. Askey; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause, and Lieutenant Kevin Reyes; the Lancaster Police Department, under the direction of Chief Gerald J. Gill, Jr.; the Buffalo Police Department Narcotics Squad, under the direction of Commissioner Byron C. Lockwood; the Lockport Police Department, under the direction of Chief Michael Niethe; the Depew Police Department, under the direction of Chief Stan Carwile; the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Federal Jury Convicts Man on Firearm OffensesRead the Press Release
DALLAS — Darius Fields, 27, of Dallas, Texas was found guilty Wednesday following a three-day trial before Chief U.S. District Judge Barbara M.G. Lynn for aiding and abetting the false statement to a federally licensed firearms dealer to acquire a firearm, commonly called “lying-and-buying” or making a “straw purchase,” announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Fields was convicted on one count of acquiring a firearm from a licensed firearms dealer by false or fictitious statement, one count of false statement with respect to information required to be kept in records of a licensed firearms dealer, and one count of convicted felon in possession of a firearm and ammunition. Fields faces a maximum statutory penalty of 25 years in federal prison and a $250,000 fine. He has been in custody since his arrest in July 2017. A sentencing date will be set by the court in the near future.
According to evidence presented at trial, Fields, a convicted felon who was being sought as a person of interests in a state kidnapping investigation, was found at a motel in Irving on the night of June 29, 2017. When the police made contact with Fields at the motel, they smelled the odor of marijuana and entered the room for a protective sweep. There, they found Fields’ girlfriend and co-defendant, LaPorshya Polley, emerging from the bathroom after attempting to flush marijuana down the toilet. They also observed a box of ammunition in plain view on a desk. Using flashlights, the police also observed a partially concealed AK-47 weapon in the back of a black Honda Accord parked directly in front of Fields’ motel room. The police then secured a search warrant for the motel room and the Honda Accord.
Inside the motel room, according to evidence presented, the police seized the box of ammunition, a small amount of marijuana, two cell phones belonging to Fields, and approximately $5,000 in cash. They also found a loaded FNH pistol—with a round in the chamber and the safety in the “fire” position—in Polley’s bag of clothing. In the Honda Accord, the police seized a loaded AK-47 pistol. Polley had purchased both weapons. The police, in fact, discovered that Polley had recently purchased the FNH pistol from DFW Gun Range in Dallas. The police obtained security video recordings of Polley’s purchase from the gun dealer. The recording depicted a classic “straw purchase” of the firearm, as it showed Fields and Polley arriving together at the gun dealer, but walking in at different times to act as if they weren’t together. The video also showed Fields and Polley ignoring one another and acting as if they were not together. Finally, the video showed Fields monitoring Polley’s interaction with the gun salesman, and once Fields observed that Polley was wrapping up the purchase he walked back out to the car and waited for Polley. Text messages found on one of Fields’ cell phones showed that after Polley purchased the pistol, but before she left the gun dealer, she texted Fields about the type of ammunition that he wanted for the weapon. Lastly, when Polley walked out of the gun dealer with the FNH pistol and ammunition and got inside the car driven by Fields, Fields waited before driving off—reflecting that he was examining Polley’s purchase. When Polley purchased the FNH pistol—which she paid approximately $1,400 in cash—she stated on the transaction record that she was buying the pistol for herself and not for anyone else.
Fields contended that the firearms and ammunition found by the police were for Polley and that he did not knowingly possess them. He also contended that Polley purchased the FNH pistol for herself and not for him and, therefore, she did not lie to DFW Gun Range or put false information in the gun dealer’s records. On Fields’ cell phones, the police discovered numerous pictures of Fields displaying firearms and two videos of Fields shooting firearms at a gun range in February 2017. The court permitted the government to introduce this evidence as it shed light on Fields’ knowledge and intent. Fields, however, countered that the pictures of him displaying guns were “prop” guns, not real ones, and a defense witness even incredulously claimed that the videos of Fields shooting at the gun range depicted “blank guns”—even though the video showed bullets striking the dirt behind the targets.
The case was investigated by the FBI and the Irving Police Department. Assistant U.S. Attorneys Gary Tromblay and Camille Sparks prosecuted.
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Federal Grand Jury Returns Twenty-Eight IndictmentsRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that a Grand Jury, sitting in Macon Georgia, has returned indictments against twenty-eight defendants. An indictment is only an allegation of criminal conduct. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. “I want to thank our Federal and State law enforcement partners for their hard work bringing these cases before the Federal Grand Jury” said United States Attorney Peeler.
Those charged are:
NORRIS LOWE, aged 45, and KEISHA BUSSEY, aged 44, both of Atlanta, GA are charged in an indictment alleging:
Mr. Lowe is charged with Possession with Intent to Distribute Cocaine (Count 1), Possession of Marijuana (Count 2), Felon in Possession of a Firearm (Count 3) and Possession of Firearms in Furtherance of a Drug Trafficking Offense (Count 4). Mr. Lowe faces a maximum sentence of 20 years, a maximum $1 million fine, or both, for Count 1; 12 months, a maximum $25,000 fine, or both, for Count 2; 10 years, a maximum $250,000 fine, or both, for Count 3 and life imprisonment, a $250,000 maximum fine, or both, for Count 4, if convicted.
Ms. Bussey is charged with Possession with Intent to Distribute Cocaine (Count 1), Felon in Possession of a Firearm (Count 3), Possession of Firearms in Furtherance of a Drug Trafficking Offense (Count 4). If convicted, Ms. Bussey faces a maximum penalty of 20 years, a $1 million maximum fine, or both, on Count 1; 10 years, a $250,000 maximum fine, or both, for Count 3 and life imprisonment, a maximum $250,000 fine, or both, for Count 4.
The case was investigated by the Perry Police Department. Assistant U.S. Attorney Charles L. Calhoun is prosecuting the case for the government.
JARON THOMAS, aged 26, of Eastman, GA, is charged with Possession of a Firearm with an Obliterated Serial Number and faces a maximum sentence of five years, a maximum fine of $250,000, or both, if convicted. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Charles L. Calhoun is prosecuting the case for the government.
SHAYANA A. TRUITT, aged 27, of Stone Mountain, GA, and JOHN ANTHONY WILLIAMS, aged 36, of Spartanburg, SC are charged as below:
Ms. Truitt is charged with Possession of a Stolen Firearm (Count 1) and Possession of Marijuana and Methamphetamine (Count 3). If convicted, Ms. Truitt faces maximum sentence of 1 year, a maximum fine of $1000, or both, for Count 1 and a maximum 10 years, a $250,000 fine, or both, on Count 2.
Mr. Williams is charged with Possession of a Stolen Firearm (Count 1), Possession of a Firearm by a Convicted Felon (Count 2) and Possession of Marijuana and Methamphetamine (Count 3). If convicted, Mr. Williams faces a maximum sentence of 1 year imprisonment, a maximum fine of $1000, or both, on Count 1; a maximum of 10 years imprisonment, a maximum fine of $250,000, or both, for Count 2; and a maximum sentence of 10 years, a maximum fine of $250,000, or both, for Count 3.
The case was investigated by the Hart County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Tamara Jarrett is prosecuting the case for the government.
JOSE CALDERON A/K/A “FLACO”, aged 40, a citizen of Mexico, is charged with Conspiracy to Possess with Intent to Distribute Methamphetamine. If convicted, Mr. Calderon faces a maximum sentence of life imprisonment, a maximum $10 million fine, or both. The case was investigated by the Georgia Bureau of Investigation, the Georgia Department of Corrections and the U.S. Drug Enforcement Administration. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the government.
FREDDIE LAMAR JOHNSON, aged 34, of Athens, GA, is charged with Possession with Intent to Distribute Marijuana (Count 1), Possession of a Firearm in Furtherance of Drug Trafficking (Count 2), Possession of a Firearm by a Convicted Felon (Count 3), Possession with Intent to Distribute Marijuana within 1000 Feet of a School (Count 4), and Possession of Oxycodone (Count 5). Mr. Johnson faces a maximum sentence of five years imprisonment, a $250,000 maximum fine, or both, on Count 1; a maximum sentence of life imprisonment, a maximum sentence of $250,000, or both, on Count 2; a maximum sentence of 10 years imprisonment, a maximum fine of $250,000, or both, on Count 3; a maximum sentence of 10 years, a maximum fine of $500,000, or both, on Count 4, and a maximum sentence of one year imprisonment, a maximum fine of $100,000, or both, on Count 5, if convicted. The case was investigated by the Athens-Clarke County Police Department and is being prosecuted by Assistant U.S. Attorney Graham A. Thorpe.
Four individuals were indicted for alleged Illegal Reentry after having been deported and removed from the United States. All of the cases were investigated by the Department of Homeland Security Immigration and Customs Enforcement. Assistant U.S. Attorney Michael T. Solis is prosecuting the cases for the government.
- DERMER DUBON-SERRANO, aged 22, a citizen of Honduras, is charged with Illegal Reentry, having been deported and removed from the United States on or about September 13, 2013 and March 4, 2016. If convicted, Mr. Dubon-Serrano faces a maximum of two years in prison, a $250,000 fine, or both.
- ALEJANDRO GODINEZ-MORALES A/K/A GABRIEL VASQUEZ-TORRES, aged 31, a citizen of Mexico, is charged with Illegal Reentry having been deported and removed from the United States on or about March 13, 2008; May 23, 2011; January 30, 2012; August 14, 2014 and March 6, 2017. If convicted, he faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both.
- JUAN PEZA-RAMIREZ a/k/a JOSE HERNANDEZ-SALDANA, aged 44, a citizen of Mexico, is charged with Illegal Reentry having been deported and removed from the United States on or about January 19, 2007, October 21, 2011 and April 24, 2012. If convicted, he faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both.
- EFRAIN HERRERA-ALAS, aged 28, a citizen of El Salvador, is charged with Illegal Reentry, having been deported and removed on May 8, 2004. If convicted, he faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both.
JAMES T. PARKER, aged 35 of Leary GA, is charged with Possession of a Firearm by a Convicted Felon. He faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both, if convicted. The case was investigated by the Albany Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Jim Crane.
Twelve individuals were indicted for their alleged participation in a Wire Fraud Conspiracy:
- GARLAND ALFORD, aged 75, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Counts 2-9). If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- ETHELENE ALFORD, aged 75, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Counts 2-9). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- ANTONIO GARDNER, aged 34, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 17). If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- VICTORIA HENRY, aged 46, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 19). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- JENNIFER JOHNSON, aged 29, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (15). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- RENEE KIMBLE, aged 40, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 16). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- CRYSTAL MAXWELL, aged 35, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 10). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- WENDY MITCHELL A/D/A WENDY PRICKETT, aged 43, of Nashville, TN, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 11). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- ROSANNA ROUPE, aged 32, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 12). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- JEANIE SHEFFIELD, aged 34, of Colquitt, GA, is charged with Wire Fraud Conspiracy (Count 1) and SMAP Fraud (Count 14). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- KAYLA WALLACE, aged 25, of Donalsonville, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 18). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
- KANEESHA WOOTEN, aged 23, of Bainbridge, GA, is charged with Wire Fraud Conspiracy (Count 1) and SNAP Fraud (Count 13). If convicted, she faces a maximum sentence of 20 years in prison, a $250,000 fine, or both.
This case was investigated by the U.S. Department of Agriculture’s Office of Inspector General and is being prosecuted by Assistant U.S. Attorney K. Alan Dasher.
DEMETRIUS CLARK, aged 32 of Columbus, GA, is charged with Access Device Fraud (Count 1) and Aggravated Identity Theft (Counts 2-5). If convicted, he faces a maximum sentence of 10 years’ imprisonment, a $250,000 fine, or both, on Count 1 and two years in prison, to be served consecutively, on Counts 2 through 5. The case was investigated by the Columbus Police Department and the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Melvin E, Hyde, Jr. is prosecuting the case for the government.
BRYANT HOOKER, aged 29 of Athens, GA, is charged with Possession of a Firearm by a Prohibited Person. Mr. Hooker faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both, if convicted. The case was investigated by the Athens-Clarke County Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Graham A. Thorpe is prosecuting the case for the government.
ROBERT IVAN MASK, is charged with Possession with Intent to Distribute Methamphetamine and faces a maximum sentence of life in prison, a $10 million fine, or both, if convicted. The Brooks County Sheriff’s Office and the U.S. Drug enforcement Administration investigated the case. Assistant U.S. Attorney Julia C. Bowen is prosecuting the case for the government.
RYNE MICHAEL SEETO, aged 31, of Fort Washington, MD, is charged with Failure to Register as a Sex Offender and faces a maximum sentence of 10 years in Federal prison, a $250,000 fine, or both, if convicted. The Houston County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney Paul C. McCommon, III is prosecuting the case for the government.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Employees of a North Carolina Tax Return Preparation Business Plead Guilty to Preparing Fraudulent Tax ReturnRead the Press Release
WASHINGTON - Two Winston-Salem, North Carolina, tax return preparers pleaded guilty today to aiding in the preparation of a false tax return for an Internal Revenue Service (IRS) undercover agent, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G. T. Martin of the Middle District of North Carolina.
According to documents and information provided to the court, Kristyn Dion Daney and Rakeem Lenell Scales worked at a tax return preparation businesses named Fast Tax of Winston-Salem Inc. in Winston-Salem. Fast Tax was owned by Shannon DeWayne Patterson, who pleaded guilty to aiding in the preparation of a false tax return last November, and two other individuals.
As part of their pleas, Scales and Daney admitted that in March 2015 they assisted in preparing a false tax return for an IRS undercover agent. They further admitted that at the beginning of the 2014 tax filing season, they were instructed at training sessions held by one of the Fast Tax co-owners to manipulate the information on clients’ returns to maximize tax refunds.
In total, Daney admitted to aiding in the preparation of approximately 193 false tax returns, which claimed approximately $495,984.04 in fraudulent tax refunds. Scales admitted to aiding in the preparation of approximately 29 false tax returns, which claimed approximately $74,535.20 in fraudulent tax refunds.
U.S. District Judge Loretta C. Biggs scheduled sentencing for Sept. 11. Each defendant faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Robert J. Boudreau and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Employees of A North Carolina Tax Return Preparation Business Plead Guilty to Preparing Fraudulent Tax ReturnRead the Press Release
WASHINGTON - Two Winston-Salem, North Carolina, tax return preparers pleaded guilty today to aiding in the preparation of a false tax return for an Internal Revenue Service (IRS) undercover agent, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G. T. Martin of the Middle District of North Carolina.
According to documents and information provided to the court, Kristyn Dion Daney and Rakeem Lenell Scales worked at a tax return preparation businesses named Fast Tax of Winston-Salem Inc. in Winston-Salem. Fast Tax was owned by Shannon DeWayne Patterson, who pleaded guilty to aiding in the preparation of a false tax return last November, and two other individuals.
As part of their pleas, Scales and Daney admitted that in March 2015 they assisted in preparing a false tax return for an IRS undercover agent. They further admitted that at the beginning of the 2014 tax filing season, they were instructed at training sessions held by one of the Fast Tax co-owners to manipulate the information on clients’ returns to maximize tax refunds.
In total, Daney admitted to aiding in the preparation of approximately 193 false tax returns, which claimed approximately $495,984.04 in fraudulent tax refunds. Scales admitted to aiding in the preparation of approximately 29 false tax returns, which claimed approximately $74,535.20 in fraudulent tax refunds.
U.S. District Judge Loretta C. Biggs scheduled sentencing for Sept. 11. Each defendant faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Robert J. Boudreau and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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District Man Pleads Guilty to Repeatedly Sexually Assaulting GirlRead the Press Release
WASHINGTON – A 24-year-old man from Washington, D.C. pled guilty today to two counts of second-degree child sexual abuse for engaging in sexual acts in his home with a cousin who was 9 and 10 years old at the time, announced U.S. Attorney Jessie K. Liu.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia. The Honorable Danya A. Dayson scheduled sentencing for June 22, 2018. Once released from prison, the defendant will be placed on a period of supervised release. He will also be required to register as a sex offender for 10 years.
According to the government’s evidence, between Sept. 1, 2016 and Oct, 31, 2017, the defendant engaged in sexual acts with the young girl at his residence in Southeast Washington. He was arrested on Feb. 13, 2018, and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu praised detectives from the Metropolitan Police Department’s Youth Division; as well as employees of the girl’s school, who upon learning of the sexual abuse, immediately notified the police. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
District Man Pleads Guilty to Robbing Two Banks in Downtown Washington Last SummerRead the Press Release
WASHINGTON – Timothy L. Jennings, Sr., 61, of Washington, D.C., has pled guilty to robbing two banks last summer in downtown Washington, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jennings pled guilty on April 12, 2018, in the U.S. District Court for the District of Columbia, to two counts of bank robbery. Each charge carries a statutory maximum of 20 years in prison. Under federal sentencing guidelines, Jennings faces a possible range of 57 to 71 months in prison. He also must pay a total of $1,367 in restitution to the two banks. The Honorable Tanya S. Chutkan scheduled sentencing for June 21, 2018.
According to the government’s evidence, Jennings carried out the first robbery on July 17, 2017, at approximately 9:05 a.m., targeting a SunTrust Bank in the 900 block of 17th Street NW. Jennings told a teller: “This is a robbery and I have a gun and I'll shoot you,” and demanded money. The teller handed him a total of $926 and Jennings fled the scene.
The second robbery took place four days later, on July 21, 2017, at approximately 9:20 a.m. This time, Jennings entered an M&T Bank in the 500 block of 12th Street NW and handed the teller a note demanding money. The teller handed him $441 and Jennings fled.
In his plea, Jennings also accepted responsibility for two additional bank robberies, which took place later on the morning of July 21, within an hour of the M&T Bank robbery. In both incidents, he left the banks without money. One attempt took place at a BB&T branch in the 800 block of Connecticut Avenue NW and the other at a Bank of America branch in the 800 block of 17th Street NW. Hours after these incidents, officers from the Metropolitan Police Department located Jennings and arrested him. He has been in custody ever since.
At the time of these offenses, Jennings had been on supervised release for a few months after serving more than 10 years in prison for a series of three bank robberies.
In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They expressed appreciation for the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Detroit Man Pleads Guilty to Targeting Casino Patrons in Robberies and CarjackingsRead the Press Release
The Detroit One collaboration of local, state, and federal law enforcement has led to the guilty plea of a Detroit man for conspiring to rob patrons of Detroit-area casinos at gunpoint that evolved into armed carjackings and identity theft, announced U.S. Attorney Matthew Schneider.
Joining in the announcement was Timothy Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Col Kriste Kibbey Etue, Michigan State Police.
Chief Judge Denise Page Hood accepted the guilty of Damon Washington, 27, of Detroit. Washington’s plea agreement calls for a sentence of 39 to 41 years in prison.
According to court records, the plan started in August 2017 and lasted until police arrested Washington during an attempted carjacking on October 2, 2017. Washington initially intended only to rob casino patrons of their winnings, but the robberies quickly escalated into carjackings during which Washington and his co-conspirator would cause a traffic accident and then rob victims of their money, phone, and wallets before carjacking them. Police searched Washington’s home after his arrest and discovered he had identity documents for his robbery and carjacking victims, three dozen fraudulent credit cards, and equipment to produce more counterfeit credit cards.
The case was investigated by the FBI Violent Crime Task Force, which includes representatives of the Michigan State Police and Detroit Police. The case is being prosecuted by Assistant U.S. Attorneys Jeanine Brunson and Shane Cralle.
Desoto County Student Arrested and Denied Bail for Internet ThreatsRead the Press Release
OXFORD, Miss. – US Attorney William C. Lamar and Christopher Freeze, Special Agent in Charge at the FBI announced today that Nathan Caleb Brown, age 19, of Desoto County, Mississippi, appeared today before United States Magistrate Judge Roy Percy at the Federal Courthouse in Oxford, Mississippi pursuant to a Criminal Complaint and Arrest Warrant charging him with transmitting threats in interstate commerce using social media platforms, such as Twitter, in violation of Title 18, United States Code, Section 875(c).
At the conclusion of a preliminary hearing and detention hearing, Magistrate Judge Percy determined that there was probable cause to believe that Nathan Caleb Brown had communicated threats via the internet regarding Snapchat headquarters as well as threats referencing a school shooting similar to the 1999 Columbine mass shooting and ordered Brown detained pending presentation of the case to the Grand Jury.
The public is reminded that a Criminal Complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the United States has the burden of proving guilt beyond a reasonable doubt.
Convicted Felon Pleads Guilty to Possession of a FirearmRead the Press Release
Jackson, Miss – Johnnie Lee Luckett, 45, of Jackson, pled guilty today, before U.S. District Judge Henry T. Wingate, to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 6, 2017, Jackson police officers stopped Johnnie Lee Luckett for speeding on Woodrow Wilson Avenue in Jackson. At that time, a small plastic bag of marijuana could be seen in his hands. He was arrested and charged with possession of marijuana. During the inventory of the car, police officers found a Taurus 9mm Pistol. Luckett admitted to having the firearm.
Judge Wingate will sentence Luckett on June 25, 2018, and he faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms Explosives. It is being prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
Cleveland man charged with armed robbery of Cleveland bankRead the Press Release
A Cleveland man was indicted for the armed robbery on a bank on Chester Avenue last year.
Joshua Gilchrist, 35, was indicted on one count of armed bank robbery and one count of using a firearm during a crime of violence.
Gilchrist used a firearm when he robbed the Key Bank on Chester Avenue in Cleveland on Dec. 8, 2017, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chevy Chase Man Charged with Production of Child Pornography ArrestedRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – Jonathan Oldale, age 54, of Chevy Chase, Maryland, was arrested on April 13, 2018, based on a criminal complaint charging him with production of child pornography.
The arrest 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; Police Chief Thomas Manger of the Montgomery County Police; and Montgomery County State’s Attorney John McCarthy.
According to the complaint, the investigation of Oldale began when officers from the Montgomery County Police Department responded to Silver Stars Gymnastics and Fitness in Silver Spring, Maryland based on the report of a suspicious situation. An employee at the business had found a camera hidden inside a backpack in a restroom. The backpack had been placed under a wet floor sign directly in front of the bathroom’s only toilet. The camera itself was hidden inside a non-functioning automobile key fob. When the employee recovered the camera, it was hot to the touch and had a very small, illuminated light indicating the device was in the “on” position. Further investigation revealed that the backpack belonged to Oldale, and that the backpack had also been left in the bathroom three weeks prior.
In May 2017, the Montgomery County Police Department executed a search warrant at Oldale’s home in Chevy Chase, Maryland. A detective with the Montgomery County Police Department’s Electronic Crimes Unit completed a digital forensic examination of electronic evidence seized from the home. A program used to securely delete (i.e., “clean”) files from computers was discovered. The detective also identified installations of a browser that enables anonymous communication and access to the “dark web.” The distribution and sharing of child exploitation images and videos is one illegal activity known to take place on the “dark web.”
In addition, the forensic analysis uncovered various computer artifacts indicating that the user had accessed files with names indicative of child exploitation material. Forensic analysis also revealed references to a known, but then-defunct website from the “dark web” that had provided users access to child pornography. The website had been shut down by law enforcement in December 2016.
Based on this evidence, the Montgomery County Police Department executed a second search warrant at Oldale’s residence in July 2017. Cameras containing SD memory cards were seized from Oldale’s office. Subsequent forensic examination of the SD cards revealed hundreds of videos filmed in the bathroom of the residence. The videos show that multiple cameras were used simultaneously to record activities in the bathroom. The videos depict children taking off their clothes or bathing suits, taking showers, and getting dressed. At least 30 children were filmed. The videos also depict Oldale checking camera angles.
Further investigation by the Montgomery County Police and the Federal Bureau of Investigation revealed that when children attended “splash parties” at Oldale’s residence, the children would become covered in grass. According to a witness, Oldale made children take showers before they went home.
Oldale faces a maximum sentence of 30 years in prison for production of child pornography.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the Montgomery County Police Department and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph Baldwin and Timothy Hagan, who are prosecuting the case.
Chesapeake Man Sentenced to Prison for Child PornographyRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to eight years in prison, followed by 20 years of supervised release, for possessing hundreds of thousands of images of child sexual abuse.
According to court documents, Charles McClung, 64, was a member of an online bulletin board dedicated to trading child pornography. The board was hosted on the dark net and had over 1,500 members. Agents with Homeland Security Investigations (HSI) began an investigation into the board in September 2015, and McClung was identified downloading content from the board in December 2015. As a result of the investigation, HSI and other law enforcement executed a federal search warrant of McClung’s residence in Chesapeake and found hundreds of thousands of images of child pornography.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-105.
Charges Filed Against Nine Members of Kensington Area “TRUHITTAZ” Drug Trafficking GroupRead the Press Release
PHILADELPHIA – A 44-count Second Superseding Indictment, unsealed today, charges nine people with conspiring to distribute phencyclidine (“PCP”) and cocaine base (“crack”) in the Kensington section of Philadelphia, announced United States Attorney William M. McSwain.
Charged are: James Grimes, a/k/a “Speedy,” “Dink,” “HM,” 27, Hassain Griffin, a/k/a “Glizzy,” “Frizzy,” “ODOG,” “GlizzytheHitta,” 23, Andrew Gault, a/k/a “Fly,” “Butterknife King,” “BKK,” 26, Katina Grimes, a/k/a “Snoop,” “SnoopdaHitta,” 29, Tyreeq Lenair, a/k/a “Bear,” 26, Quran Justice, a/k/a “Skee,” 21, Wayne Brunson, a/k/a “Weez,” 23, Unterrio Parris, a/k/a “Dudda,” “Didda,” 24, Anthony Hill, a/k/a “Turk,” “Turt,” 27, all living in Philadelphia.
In addition to the conspiracy count, the defendants are charged in multiple counts of distribution of phencyclidine, distribution of cocaine base, possession with the intent to distribute phencyclidine, possession with the intent to distribute cocaine base, distribution of controlled substances within 1000 feet of a school, possession with intent to distribute controlled substances within 1000 feet of a school, maintaining a drug house, unlawful use of a communication facility in furtherance of a drug trafficking crime, possession of a firearm in furtherance of a drug trafficking crime, use and carrying of a firearm in furtherance of a drug trafficking crime (see attached chart).
“This was an organized, methodical and violent group of drug dealers who used force to protect their business and their turf,” said U.S. Attorney McSwain. “This organization and others like it effectively hold neighborhoods hostage. If law abiding citizens are going to live without fear, we have to do everything possible to shut these organizations down.”
According to the Second Superseding Indictment, the conspiracy existed from approximately June 2014 to November 2016. Defendants James Grimes and Hassain Griffin led and organized the drug trafficking group that referred to itself as the “TruHittaz” (hereinafter, “the TruHittaz DTG”). The TruHittaz DTG conducted their drug trafficking activities on and around the 700 and 800 blocks of East Willard and East Madison Streets in Philadelphia, PA. The TruHittaz DTG obtained quantities of phencyclidine, cocaine base, heroin, marijuana, and other controlled substances from suppliers, both outside and within the Eastern District of Pennsylvania. The TruHittaz DTG then distributed in excess of 1 kilogram of phencyclidine, 280 grams of cocaine base, and quantities of heroin, marijuana, and other controlled substances in and around their drug territory.
"This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms. These offenders prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by these violent gangs. These arrests should significantly impact the violent drug related violence that has wreaked havoc throughout Philadelphia.”
The TruHittaz DTG separated and packaged bulk quantities of liquid phencyclidine and cocaine base into different distribution quantities, and then distributed and sold the drugs to customers in and around their drug territory. A large part of the area in which the TruHittaz distributed and possessed with the intent to distribute drugs was located within 1,000 feet of several area schools.
The TruHittaz DTG classified themselves and each other as “bosses” or “shot callers,” “caseworkers,” “trappers,” and “lookouts,” delineating their role(s) in the organization. “Lookouts” watched for and alerted other members of the TruHittaz DTG to the presence of law enforcement in the area. “Trappers” sold drugs on the block, and “caseworkers” oversaw and supervised those sales. The “bosses” (also referred to as “shot callers” and “top callers”) of the TruHittaz DTG supplied controlled substances to the block and set the prices of, and received payments for, the controlled substances sold on the block. The TruHittaz DTG sold drugs in and around their drug territory 7 days a week and 24 hours per day. The TruHittaz DTG divided drug sales into day and night shifts, with the day shift running approximately 10:00 a.m. to 10:00 p.m. and the night shift running from 10:00 p.m. to 10:00 a.m. The TruHittaz DTG staffed these shifts with lookouts, one to two caseworkers, and at least two trappers –one of whom sold phencyclidine and the other of whom sold cocaine base. When one member of the TruHittaz DTG – at any level of the group – was unavailable, another member stepped into that role.
Members of the TruHittaz DTG had specific hand signals and logos to denote their membership in the TruHittaz including a hand signal that formed an “H” for “Hittaz.” Members of the TruHittaz DTG used coded language to refer to the type and amount of phencyclidine, cocaine base, and other controlled substances for sale, such as, “hard” and “the ball game” (to refer to crack), “dime” and “basketball” (to refer to a packet/bundle of crack), “oranges” (to refer to larger quantities of crack) “dippers” or “dips” (to refer to cigarettes dipped in liquid PCP), “wet,” and “water” (to refer to liquid PCP), “fat bitches,” “a hizzy,” and a “soda” (to refer to various quantities of liquid PCP), “soccer balls” (to refer to marijuana), and “footballs” (to refer to heroin). Members of the TruHittaz DTG also used the phrases “the jungle” and “the block” to refer to their territory at or around the 700 and 800 blocks of East Willard and East Madison Streets and the term “trapping” to refer to selling controlled substances. The TruHittaz also used coded language to warn each other of the presence of law enforcement, such as, “Mayback” to refer to the presence of police officers in vehicles, “Rollers” to refer to the presence of police officers on bicycles, and “Phantoms” to refer to the presence of police officers on foot.
Members of the TruHittaz DTG tried to get customers to buy from them individually, and sold drugs in concert with each other, with members providing Adippers@ B cigarettes dipped in liquid phencyclidine and small bags of crack cocaine that were sold for $10 with increased dollar value correlating to an increased quantity of drugs. Members of the TruHittaz DTG also sold controlled substances in larger amounts, including a half-ounce, an ounce, and up to sixteen ounces of PCP and/or ounce or bulk quantities of crack cocaine. When multiple members sold drugs in concert with each other, each participating member received a portion of the profits from the sale relative to his/her contribution. Individuals acting as “lookouts” for the TruHittaz DTG also received a portion of the profits of drug sales for the shift worked by the lookout. All members of the TruHittaz DTG, regardless of their role at a given time, were paid in proportion to the amount of drugs sold on a given shift, so that the higher the quantity of drugs sold, the higher the profit each member received.
The TruHittaz DTG used residences in Philadelphia as “stash houses” and “trap houses” to store and package bulk quantities of PCP, crack cocaine, and other controlled substances for distribution and to collect and store the proceeds from their drug sales. These houses included 7606 Castor Avenue, Apartment B (also referred to as “the AP”), 763 East Willard Street, 744 East Madison Street, 755 East Madison Street (also referred to as “the trap house”), 810 East Willard Street, as well as vacant lots on both 800 East Willard and East Madison Streets, and abandoned properties.
The TruHittaz DTG used several vehicles to transport controlled substances to the block, to store controlled substances for the block, to transport controlled substances to drug customers at various locations, and to pick up proceeds of drug sales. These vehicles included: a black GMC Yukon Denali; a dark blue Dodge Charger; a maroon Pontiac Montana van; a silver Lincoln MKS; and a silver Chrysler 300.
Members of the TruHittaz DTG did not permit non-DTG members to sell drugs in their territory. To protect their territory, drug trafficking activities, drug customers, and drug proceeds, members of the TruHittaz DTG purchased, routinely carried, and sometimes used loaded firearms, and also kept firearms in hidden locations, including the “stash” house at 744 East Madison Street and at or around vacant lots at both 800 East Willard and East Madison Streets. Members of the TruHittaz DTG referred to these firearms as “gats,” “ratchets,” “tools,” and/or “block guns.” Members of the TruHittaz DTG used juveniles, to carry firearms and sell controlled substances to customers of the TruHittaz DTG. The “bosses” and “upper management” of the TruHittaz DTG threatened and/or used force against other TruHittaz members and “taxed” other members (by requiring them to pay money to the bosses and upper management) to ensure the quality of the drugs sold on the block and/or that drug sales were conducted in accordance with their wishes.
Members of the TruHittaz DTG routinely warned each other of the presence of law enforcement in the area and used counter-surveillance tactics to prevent detection of their drug trafficking activities by law enforcement. Members of the TruHittaz DTG used cellular telephones (“main phones”), disposable telephones (“burners” or “burner phones”), and social media to arrange for and facilitate the distribution and purchase of phencyclidine, cocaine base, and other controlled substances, and discarded or otherwise changed their burner phones every fourteen-to-thirty days to avoid detection by law enforcement.
If convicted of all counts, each defendant faces lengthy prison terms (see chart).
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys MaryTeresa Soltis and Kelly A. Lewis Fallenstein.
Canadian Drug Firm Admits Selling Counterfeit and Misbranded Prescription Drugs Throughout the United StatesRead the Press Release
MISSOULA – Kristjan Thorkelson, a resident of Manitoba, Canada, together with several Canadian companies associated with Thorkelson, including Canada Drugs, Rockley Ventures, and River East Supplies, admitted today to widespread illegal sales of misbranded and counterfeit prescription drugs in the United States. Chief U.S. District Court Judge Dana Christensen sentenced the Canadian companies to forfeit $29,000,000 of the proceeds of their illegal scheme, to pay a fine of $5,000,000, and to five years of probation. The court sentenced Thorkelson individually to pay a fine of $250,000 and to five years of probation with the first six months in home confinement. Thorkeleson and the associated companies were also ordered to permanently cease their illegal operations, surrender to the United States all domain names and websites from their businesses, and cooperate with the United States Justice Department and the Food and Drug Administration (FDA) in any further criminal investigations.
In 2010, it came to the attention of the FDA that Canada Drugs was shipping to health care providers in the United States prescription drugs that were unapproved in the United States, labelled with foreign languages, and that lacked adequate instructions for use. During this time, Thorkelson was CEO of Canada Drugs. Further investigation revealed that various entities affiliated with Canada Drugs were smuggling unapproved and misbranded drugs intended for sale in foreign countries into the United States, including for sale to providers in Montana. To facilitate its sales, Canada Drugs purchased other companies engaged in this business and used the brand names, drug inventories, and customer lists of those companies to further its illegal operations. One of those companies was Montana HealthCare Solutions, owned by Montana resident Paul Bottomley, who was separately prosecuted for similar conduct. In order to avoid detection, Canada Drugs and its affiliated companies falsified customs forms concerning the value of the drugs shipped into the United States.
In two instances, Canada Drugs, through its subsidiary River East Supplies, distributed counterfeit cancer drugs Avastin and Altuzan (the Turkish version of the drug) in the United States. Testing of vials of the drugs recovered from these shipments revealed that both contained no active ingredient. In 2012, Thorkelson and others at Canada Drugs became aware that they had shipped counterfeit Avastin and Altuzan to medical clinics in the United States. Thorkelson denied “selling or offering Avastin,” even while the company attempted to recall the suspect drugs. At no time did Thorkelson notify the FDA or other authorities in the United States that counterfeit cancer drugs containing no active ingredient had been shipped to providers in the United States.
United States Attorney Kurt Alme stated, “By circumventing the FDA approval process, Thorkelson and the Canada Drugs companies jeopardized the health and safety of Americans. The FDA approval process is important for the protection of public health and safety, and we will diligently prosecute those who put unknown and unapproved substances into the American prescription drug market. But as this case shows, American providers and consumers need to beware when purchasing drugs on the internet.”
“FDA regulations are in place to protect patients and help ensure the medicines they receive are safe and effective,” said Catherine A. Hermsen, acting director of the FDA’s Office of Criminal Investigations. “The U.S. drug supply is among the safest in the world, but when drugs from outside the FDA’s closed supply chain enter the U.S., patients are put at risk. For the protection of consumers, the FDA will continue to pursue and bring to justice those who attempt to evade FDA’s regulations.”
The case was prosecuted by Assistant U.S. Attorney Chad Spraker and Special Assistant United States Attorney Paul Joseph, and investigated by the U.S. FDA Office of Criminal Investigations. The Criminal Division’s Office of International Affairs also provided significant assistance in this matter. The Department also thanks its law enforcement colleagues in Canada, the United Kingdom, and Barbados.
California Man Arrested for Threatening Congressman via FacebookRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen announced today the arrest of a California man accused of using social media to communicate threats against a member of the United States House of Representatives.
The United States Attorney’s Office charged Eun Soo Lee, 28, of Cypress, California, in a criminal complaint with one count of making a threatening communication to injure another person through interstate commerce. Lee was arrested Thursday in California and will have his initial appearance in U.S. District Court in Abingdon on Tuesday, April 17, 2018 at 11:00 a.m.
“The First Amendment does not protect individuals who use social media and other online forms of communication to threaten violence,” United States Attorney Cullen stated. “This United States Attorney’s Office will continue to hold accountable those who use social media to threaten others.”
According to the criminal complaint and affidavit, on May 5, 2017, Facebook user “Fwafefewawe Gawefawef,” later identified to be Lee, sent a number of threatening messages to United States House of Representatives Member “TG’s” Facebook account.
The threatening messages included but were not limited to:
“I would love to kick you hard in the face, breaking it. Then I’d cut your stomach open with a chainsaw, exposing your intestines. Then I’d cut your windpipe in two with a boxcutter. Hopefully you’ll get what’s coming to you. F**cking bitch”
“You’re dead if I ever meet you in real life, fu**cker. I’ll fu**ing kill you.”
“I would love to fu**ing send your fu**ing useless ass to the hospital in intensive care, fighting for your worthless life.”
Investigators interviewed Lee on July 13, 2017 in Cypress, California at which time he admitted to sending threatening messages to Congressman “TG.” Lee said he sent the threats because he was frustrated with the “”TG’”s views. Lee also admitted to sending similar threatening messages to other elected officials.
The investigation of the case was conducted by the United States Capitol Police and the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Buffalo Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that a Jay Neal, 39, of Buffalo, NY, pleaded guilty to eight counts including conspiracy to possess with intent to distribute 100 grams or more heroin, possession with intent to distribute, and distribution of, heroin, maintaining a drug involved premises, possession of a firearm in furtherance of drug trafficking activity, being a felon in possession of a firearm, and possession of a defaced firearm before Chief U.S. District Judge Frank P. Geraci, Jr. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of 45 years, and a $5,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on October 20, 2015, Neal sold a quantity of heroin to a confidential source working with the Drug Enforcement Administration. The following day, on October 21, 2015, Neal once again agreed to sell a quantity of heroin. Neal drove to a residence at 87 Mariner St. in Buffalo. About an hour later, Neal and co-defendant Quashawn Lawrence were arrested by police. At the time of his arrest, Neal was armed with a 9mm handgun and had $10,000 in cash. A search warrant executed inside 87 Mariner recovered two guns, ammunition, 10 grams of heroin inside a dresser drawer, and multiple scales.In 1997, Neal was convicted in state court of Attempted Murder and Robbery in the 1st Degree. As a result of his convictions, Neal is legally prohibited from possessing a firearm.
Lawrence was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.Sentencing is scheduled for July 12, 2018 at 3:30 p.m. before Judge Geraci.
Buffalo Man Pleads Guilty to Cocaine Conspiracy Which Operated Near A Buffalo SchoolRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Cleophus Dentmond, aka “Face,” 28, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine, or both.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that the defendant conspired with Stevie Alejandro who operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School. Between May 2017 and October 18, 2017, the defendant participated in the cocaine conspiracy with co-defendants Alejandro, Aaron Hill, Gilbert Guzman, Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
During the conspiracy, Alejandro conducted negotiations with an undercover law enforcement officer regarding the sale, cost, amount, and delivery of cocaine. Then, Dentmond, or one of his co-conspirators, would conduct the drug transaction with the undercover officer. All proceeds went back to Alejandro. A total of 14 cocaine sales took place with the undercover officer.
Charges are pending against defendants Hill, Guzman, and Ramos. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for July 25, 2018, at 1:00 p.m. before Judge Arcara.
British Citizen Extradited from Morocco for Defrauding Investors of More Than $36 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that RENWICK HADDOW has been extradited to the United States from Morocco and is expected to appear in the United States District Court for the Southern District of New York today. HADDOW was charged by Complaint in June 2017 for engaging in schemes to defraud victims by making material misrepresentations and misappropriating investment funds in companies created by HADDOW called Bitcoin Store Inc. (“Bitcoin Store”) and Bar Works Inc. (“Bar Works”), as well as related entities HADDOW controlled. In July 2017, HADDOW was arrested in Morocco on the basis of a provisional arrest warrant for participating in these schemes.
According to the allegations in the Complaint[1]:
RENWICK HADDOW is a citizen of the United Kingdom. From November 2014 through June 2017, HADDOW solicited investments in start-up companies he created and controlled, including Bitcoin Store — a purported online platform for purchasing, selling, and storing the digital currency known as “Bitcoin”—and Bar Works, which purports to be a company that adapts former restaurants, bar premises, and other locations into co-working spaces. When doing so, HADDOW made material misrepresentations about, among other things, the management, operations, and historical performance of those companies.
For example, HADDOW concealed his interest in Bitcoin Store and fabricated the purported “experienced team of leading investment professionals” working at the company. In connection with Bar Works, HADDOW adopted the alias “Jonathan Black” to further hide his role in the schemes. HADDOW claimed that “Jonathan Black” had an extensive background in finance and had a role in setting up “Car Share,” a car-sharing app.
HADDOW solicited investments through agent brokers and through his control of InCrowd Equity Inc. (“InCrowd”), which represented itself as a type of crowdfunding portal through which investors could purchase shares of start-ups supposedly vetted by InCrowd. HADDOW did so without disclosing to investors that he had an ownership interest in both InCrowd, on the one hand, and Bitcoin Store and Bar Works, on the other. HADDOW also misappropriated without permission funds purportedly invested in Bitcoin Store and Bar Works for his own use and the use of others.
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RENWICK HADDOW, 49, has been charged with two counts of wire fraud — one relating to the Bitcoin Store scheme and the other relating to the Bar Works scheme. Each charge carries a maximum sentence of 20 years in prison.
Mr. Berman praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has brought civil actions against the defendant, for its assistance. Mr. Berman also thanked Moroccan Ministry of Justice, the General Directorate of National Security of Morocco, the U.K. Financial Conduct Authority, the United States Marshals Service, and the Department of Justice’s Office of International Affairs, and noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Vladislav Vainberg, Justin V. Rodriguez, Brooke E. Cucinella, and Martin Bell are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Brentwood, Tennessee Man Sentenced for Possessing Unregistered Sub-Machine GunsRead the Press Release
BRENTWOOD, TENNESSEE MAN SENTENCED FOR POSSESSING UNREGIGISTERED SUB-MACHINE GUNS
NASHVILLE, Tenn. – April 12, 2018 – Jerry Christopher Bostick, 58, of Brentwood, Tennessee, was sentenced yesterday in U.S. District Court, to pay a $100,000 fine and serve five years on probation, with the first six months on home confinement, for possessing unregistered sub-machine guns, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Bostick was indicted in October 2015 for possessing a .45 caliber sub-machine gun and a 9mm sub-machine gun, which were not registered in the National Firearms Registry as required by law. Bostick pleaded guilty to the charges in the indictment on July 18, 2017.
Chief U.S. District Judge Waverly Crenshaw, Jr., also ordered the firearms to be forfeited and that Bostick serve 500 hours of community service.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and prosecuted by Assistant U.S. Attorney Joseph Montminy.
Aruban Telecommunications Purchasing Official Pleads Guilty to Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
An Aruban official residing in Florida pleaded guilty today to money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.
Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement.
Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, Florida, was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government. Koolman pleaded guilty before U.S. District Judge Frederico A. Moreno of the Southern District of Florida to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on June 27.
In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Parker’s sentencing is scheduled for April 30.
According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager. Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the FCPA. Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts, he admitted. He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bankcard that drew money from a United States-based bank account, he further admitted. In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admitted providing favored vendors with Setar’s confidential information.
The FBI’s International Corruption Squads is investigating the case. Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida are prosecuting the case. The Criminal Division’s Office of International Affairs also provided significant assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Aruban Telecommunications Purchasing Official Pleads Guilty to Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
An Aruban official residing in Florida pleaded guilty today to money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.
U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division and Special Agent in Robert F. Lasky of the FBI’s Miami Field Office made the announcement.
Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, Florida, was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government. Koolman pleaded guilty before U.S. District Judge Frederico A. Moreno of the Southern District of Florida to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on June 27.
In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Parker’s sentencing is scheduled for April 30.
According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager. Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the FCPA. Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts, he admitted. He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bankcard that drew money from a United States-based bank account, he further admitted. In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admitted providing favored vendors with Setar’s confidential information.
The FBI is investigating the case. Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida and Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided significant assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Arrest Made in Eastern North Carolina Synthetic Drug CaseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces the arrest of Akram Abdel-Aziz, 50, on drug related charges.
Abdel-Aziz is charged in a criminal complaint with the possession with intent to distribute a quantity of 5F-ADB, a synthetic cannabinoid listed as a Schedule I controlled substance. Known locally by the label “Black Magic” and other similar names, the substance was sold as a liquid vaporizer product at vape shops in Onslow, Craven, Wilson, Cumberland, New Hanover, and Pamlico counties. The product came to the attention of authorities following more than 40 persons requiring medical attention after ingesting the product, for symptoms such as seizures, loss of consciousness, hallucinations, paranoia, and cardiac arrest.
Abdel-Aziz is currently in custody.
The allegations above are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation of this case was conducted by the U.S. Naval Criminal Investigative Service, the United States Drug Enforcement Administration, the U.S. Army Criminal Investigative Command, U.S. Marine Corps Criminal Investigative Division, North Carolina State Bureau of Investigation, Alcohol Law Enforcement Division, Jacksonville Police Department, Onslow County Sheriff’s Office, Wilson County Sheriff’s Office, Cumberland County Sheriff’s Office, Craven County Sheriff’s Office, Wayne County Sheriff’s Office, Wilson Police Department and other federal, state and local law enforcement agencies.
Antigo Man Indicted on Firearm and Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on April 10, 2018, a federal grand jury returned a three-count indictment against Shane A. Tillman (age: 33) of Antigo, Wisconsin.
The indictment alleges that Tillman conspired with others to distribute methamphetamine and did so while in the possession of a firearm, contrary to Title 21, United States Code, Sections 846 and 841(a) and Title 18, United States Code, Section 924(c). It further alleges that Tillman’s status as a convicted felon prohibited him from ever possessing a firearm pursuant to Title 18, United States Code, Section 922(g)(1). Tillman faces up to a life sentence if convicted of the charges alleged.
Tillman was arraigned before a federal Magistrate Judge on April 12, 2018, and will remain in federal custody pending trial.
Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This case was investigated by the Langlade County Sheriff’s Office and the Antigo Police Department with assistance from the Brown County Drug Task Force. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Amtrak Employee Charged with Accepting BribesRead the Press Release
Timothy Miller, 36, of Philadelphia, Pennsylvania was charged today by Information with one count of federal program bribery, announced United States Attorney William M. McSwain.
According to the Information, Miller worked for the National Railroad Passenger Corporation (“Amtrak”) Procurement & Logistics Department as its Lead Contract Administrator responsible for procuring equipment and services and for managing the account for Amtrak diesel and locomotive seat cushion vendors. Amtrak is a recipient of federal grant funds from the United States Department of Transportation.
“The defendant in the case was responsible for millions of dollars in contracts in what was supposed to be a fair bidding process. As the filing alleges, he simply sold out his position,” U.S. Attorney McSwain said.
The Information charges that, from about August of 2015 through June of 2017, Miller awarded more than $7.6 million in contracts to a small manufacturing firm, in exchange for bribes of approximately $20,000 and other things of value, including trips to Rehoboth Beach arranged by two executives at the firm.
“We’re very proud of our joint efforts with the cross-agency team of investigators who helped bring this case to light,” said George Dorsett, assistant Inspector General for Investigations with Amtrak’s Office of Inspector General. “We commend their continued dedication, and we remain dedicated to supporting the U.S. Attorney’s Office as this case progresses.”
If convicted, the defendant faces a maximum possible sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years’ supervised release.
The case was investigated by the Amtrak Office of Inspector General, the Federal Bureau of Investigation, U. S. Department of Transportation Office of Inspector General, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
After Stand-Off Authorities in San Antonio Arrest Robbery CrewRead the Press Release
In San Antonio this morning, authorities arrested four individuals for their alleged role in the robbery of a San Antonio pawn shop yesterday, announced United States Attorney John F. Bash; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division; and, San Antonio Police Chief William McManus.
A federal criminal complaint and supporting affidavit filed in federal court today charges those arrested this morning--40-year-old Daniel Ray Rodriguez, 22-year-old Daniel Ray Rodriguez, Jr., 24-year-old Xavier Noel Musquiz and 36–year-old Cesar Rodriguez—and 22-year-old Martin Ramirez Hernandez with one count of Robbery Affecting Interstate Commerce. The complaint alleges that on April 12, 2018, the defendants robbed a Cash America Pawn in San Antonio at gun point. The defendants stole approximately 30 firearms, several hundred pieces of jewelry, and an undetermined amount of United States currency.
Overnight, San Antonio Police officers and ATF agents set up surveillance of a residence in San Antonio. The five men were believed to be inside the house. Over the course of the stand-off, four of the five suspects were arrested. Law enforcement is still looking for Hernandez. If anyone has information on where Hernandez is, please call the San Antonio Police Department or 911.
All four arrested this morning remain in federal custody.
Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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.
2 South L.A. Men Indicted on Federal Charges of Robbing Undercover Secret Service Agent during Counterfeit Money InvestigationRead the Press Release
LOS ANGELES – A federal grand jury this afternoon returned an indictment that charges two men in a scheme to rob an undercover agent with the United States Secret Service at gunpoint under the pretense of selling the law enforcement officer counterfeit money.
Richard Taron Henderson, aka “Profit,” 22, and Tyre Jordan Simmons, aka “Reckless,” also 22, were named today in a six-count indictment that alleges one transaction involving counterfeit United States currency and an armed robbery of the undercover agent.
Both men are charged with conspiracy, robbery, assaulting a federal officer with a deadly weapon, and using a firearm during a crime of violence. Henderson is further charged with dealing counterfeit money, and Simmons is accused of being a felon in possession of a firearm.
The indictment alleges an October 18, 2017 incident in which Henderson allegedly sold 250 counterfeit $20 Federal Reserve Notes as part of a Secret Service investigation into the trafficking of counterfeit money.
As the investigation continued, Henderson allegedly negotiated a deal to sell $40,000 in counterfeit money. However, according to the indictment, the deal was a pretense to rob the undercover agent who was attempting to purchase the counterfeit money.
On March 26, Henderson arranged the meeting in South Los Angeles and prepared for it by stuffing clothes into a duffel bag to make it appear that the bag was filled with counterfeit money, according to the indictment. Henderson dispatched Simmons to meet with the undercover agent. During the meeting, Simmons allegedly produced a Taurus 9mm handgun, pointed it in the face of the undercover agent and robbed him of $4,500 in genuine United States currency and the keys to the undercover USSS vehicle. In committing the robbery, Henderson and Simmons put the life of the undercover agent in jeopardy by using a dangerous weapon.
Simmons, who was convicted of robbery in the Los Angeles County Superior Court in 2016, allegedly was a felon in possession of a firearm during the robbery.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Simmons is scheduled to be arraigned on the indictment on April 19, and Henderson’s arraignment is set for the following day. Henderson and Simmons were previously arrested in this case pursuant to a criminal complaint, and Simmons remains in custody without bond.
If they were to be convicted, Henderson would face a statutory maximum sentence of 20 years for the counterfeit money charge. Both defendants would face up to 50 years for the charges related to the alleged robbery, plus a mandatory seven-year sentence related to the use of the firearm. And, Simmons would face up to 10 years in prison for being a felon in possession of a firearm.
This investigation is being conducted by the United States Secret Service.
The case is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
Thursday 12 April 2018
Webster Man Sent to Prison for Receiving Child Pornography VideosRead the Press Release
HOUSTON – A 31-year old resident of Webster has been ordered to prison following his conviction on one count of receipt of child pornography and one count of possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Jake Nicholas Luera pleaded guilty June 27, 2017.
Today, U.S. District Judge David Hittner ordered him to prison for a total of 136 months after which he must immediately serve 15 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Luera came to the attention of law enforcement following an investigation dubbed Operation Back to School in August 2015 which targeted the online solicitation of minors. During the operation, Luera engaged in online chats with an undercover officer posing as a 15-year-old female and drove to a location where he believed he would make sexual contact with her.
Following his arrest, authorities searched his home in Webster. They discovered and seized various items of computer media which a forensic analysis revealed more than 4,000 images and 75 videos of child pornography involving young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, including bondage.
At the time of his plea, Luera admitted he received and saved the images and videos on multiple storage devices.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Metro Internet Crimes Against Children Task Force conducted the investigation at the Pearland Police Department in conjunction with Immigration and Customs Enforcement’s Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Walla Walla Man Sentenced to Six Months in Federal Prison for Embezzling $40,000 from United Steelworkers Local UnionRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that Jason A. Richard, age 42, of Walla Walla, Washington, was sentenced after having pleaded guilty on December 14, 2017, to embezzling labor union funds. United States District Judge Salvador Mendoza Jr. sentenced Richard to a 6-month term of imprisonment, to be followed by a 2-year term of court supervision following release from Federal prison. The Court also ordered Richard to pay $30,649 in restitution. During the sentencing hearing, Judge Mendoza described Richard’s embezzlement as a “chronic and continuous abuse of trust.”
According to information disclosed during court proceedings, the United States Department Labor office of Labor-Management Standards (OLMS) initiated an investigation of Richard after receiving information from United Steelworkers Local Union 12-990 (USW LU 12-990) auditors that Richard embezzled labor union funds. Richard was the Secretary-Treasurer of USW LU 12-990, which is a labor organization located in Wallula, Washington. As Secretary-Treasurer, Richard had access to USW LU 12-990’s funds and was responsible for the union’s financial transactions. OLMS’s investigation revealed that Richard embezzled $40,049 from the union during a ten-month period. Richard used the funds to pay personal expenses. Richard paid $9,400 back to the union not long after his embezzlement was discovered.
Joseph H. Harrington said, “Prosecuting union embezzlement and other white collar crime continues to be a high priority for our office. I commend the investigators from the Department of Labor office of Labor-Management Standards for their excellent investigative work on this case. We will continue to work closely with our law enforcement partners to aggressively prosecute financial crimes in the Eastern District of Washington.”
This case was investigated by the Department of Labor Office of Labor-Management Standards. This case was prosecuted by George J.C. Jacobs, III and Dan Fruchter, Assistant United States Attorneys for the Eastern District of Washington.
Virginia Beach Business Owner Sentenced for $3.9 Million FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man was sentenced today to 10 years in prison for money laundering in connection with a fraud scheme that resulted in a loss of at least $3.9 million.
According to court documents, Edward Zinner, 58, operated Ocean Equity, a collection of businesses that engaged in credit card processing and merchant cash advances. In operating Ocean Equity, Zinner and others acting on his behalf, provided false representations to private investors/lenders to obtain over $4.5 million in funds.
In addition to the $4.5 million from private investors/lenders, Zinner obtained six business loans for Ocean Equity in the amount of $3 million. In obtaining these loans, Zinner falsely represented that the loans would not be used for personal, family, or household purposes. However, Zinner spent large amounts of company money on personal expenditures, including, travel, vehicle expenses, gambling, day-trading, mortgage payments, renovations to his personal residence, medical bills, personal credit cards, a rock band, and other expenditures. From 2011 to 2016, approximately $2 million was transferred from the Ocean Equity accounts to Zinner’s personal accounts.
Zinner closed down Ocean Equity in early 2016, and at the time he still owed at least $3.9 million in business loans and loans from private investors/lenders.
The Court sentenced Zinner to the statutory maximum penalty of 10 years in prison, followed by three years of supervised release. Zinner was also ordered to pay over $4 million in restitution to his victims.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Bethany J. Lipman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-3.
United States Files Complaint Seeking Forfeiture of Oil Painting Recovered by FBI Nearly 30 Years After Its Theft in New YorkRead the Press Release
WASHINGTON – The United States has filed a civil complaint seeking the forfeiture of an oil painting by Marc Chagall that was recovered by the FBI decades after it was stolen from collectors in New York. The United States intends to return the artwork to its rightful owners.
The announcement was made by U.S. Attorney for the District of Columbia Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
The artwork, “Othello and Desdemona,” is an oil painting on canvas created by Chagall in 1911, in the early stages of his career. It depicts a male, Othello, in the left foreground holding a sword in his hand and looking at a female figure, Desdemona, lying on a bed in the right background. It now is in the possession of the FBI and is currently being held at an FBI facility in Washington, D.C. This piece was previously displayed at an art gallery in Switzerland in the 1960s.
The complaint was filed in the U.S. District Court for the District of Columbia and seeks forfeiture of the painting on the basis that it represents the proceeds of the interstate transportation of stolen property and possession of stolen goods.
“For nearly 30 years, this magnificent painting was in the control of people who had no legal right to it,” said U.S. Attorney Liu. “It was stolen from New York collectors who had owned it since the 1920s, and they never saw it again. Now, thanks to the tireless efforts of the FBI, it has been located and will be returned to the collectors’ estate. This case shows that law enforcement will never stop its dogged pursuit of justice, and will do all it can to recover stolen treasures.”
“As the FBI returns this painting to the estate of its proper owners, we do so with the purpose of preserving history,” said Assistant Director in Charge McNamara. “This piece of artwork is of significance not just for its monetary value, but for its place in the world of art and culture. The FBI continues to commit investigative resources to recover cultural property.”
According to the complaint, the painting had been rightfully owned by Ernest and Rose Heller, art collectors who lived in New York. The Hellers, who are now deceased, had amassed a collection of artwork from their travels in Europe and other parts of the world. By 1988, they had collected more than 20 paintings and 12 sculptures, which they kept in their apartment.
In August of 1988, they came home to their apartment and discovered that the painting, along with other artwork and sculptures, had been stolen. The piece by Chagall had a label indicating that its owners were “Mr. + Mrs. E.S. Heller, New York.” The property was insured by an insurance company, which paid the Hellers a lump sum following the theft.
Following the burglary, Interpol listed the Chagall painting as a stolen artwork. An FBI investigation revealed that the painting was stolen from the apartment by an individual who worked in the building. That individual was convicted in a federal district court of interstate transportation of stolen property and mail fraud related to the theft and sale of other works of art stolen from other apartment buildings. Prior to the arrest of this individual, he attempted to sell the painting to a third party. That third party took the painting from the suspected thief in the late 1980s or early 1990s.
After that, this third party attempted to consign the painting to an art gallery in Washington, D.C., but without proof of ownership, the gallery refused to accept the painting. The gallery suggested that the individual contact law enforcement, which resulted in the FBI obtaining custody of the painting.
Upon completion of the forfeiture proceedings, the painting will be returned to the Rose Heller estate. At that time, and in consultation with the insurer’s representative, Art Recovery International, the painting will be sold at auction. The Heller estate will repay the insurance company for their disbursement from the proceeds of the sale, pay any related legal expenses, and donate the remainder of the sale proceeds to the estate’s beneficiaries: the McDowell Colony, a haven for artists in New Hampshire (80%), Columbia University (10%), and NYU Medical Center (10%), all 501(c)(3) tax-exempt non-profit corporations.
In a news article that appeared days after the theft, Ernest Heller was quoted as saying that he especially liked the Chagall. “It’s all in the hands of the police,” Mr. Heller said at the time. “Sometimes they’re (stolen paintings) returned but I doubt it.”
Christopher A. Marinello, CEO of Art Recovery International, the firm that is working with the insurer, issued a statement saying, “We are extremely grateful to the FBI and the U.S. Attorney’s Office for doggedly pursuing this case 30 years after the theft. This sends a resounding message to art thieves everywhere that in the U.S.A., the passage of time will not defeat the original owner’s right to bring a claim in recovery.”
The lawsuit is captioned United States v. One Oil Painting Entitled Othello and Desdemona by Marc Chagall. The claims made in the complaint are only allegations and do not constitute a determination of liability.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Zia M. Faruqui, Brian P. Hudak, and Anthony Scarpelli, Special Assistant U.S. Attorney Sean Welsh, and Paralegal Specialist Toni Anne Donato, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
Union County, New Jersey, Man Sentenced to 115 Months in Prison for Robbing Four BanksRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 115 months in prison for robbing four banks in January 2017, including a TD Bank in Bergen County, New Jersey, U.S. Attorney Craig Carpenito announced.
Israel Cosme, 36, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with four counts of bank robbery. Judge Salas imposed the sentence today in Newark federal court. Cosme was originally arrested Jan. 24, 2017 in connection with two of the bank robberies committed in Maryland.According to documents filed in this case and statements made in court:
Cosme admitted that on Jan. 15, 2017, he robbed a TD Bank in Little Ferry, New Jersey. During the robbery, Cosme verbally demanded money and told a teller that he would shoot her if she didn’t comply.
Cosme also admitted robbing a TD Bank in New York on Jan. 12, 2017; a TD Bank in Essex, Maryland, on Jan. 22, 2017; and a TD Bank in Baltimore, Maryland, on Jan. 23, 2017. During all three of these robberies, Cosme handed tellers a note demanding money and stating that he had a gun.
In addition to the prison term, Judge Salas sentenced Cosme to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation. He also thanked the Little Ferry Police Department, under the direction of Chief Ralph Verdi, for its assistance.The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
U.S. Attorney’s Office Observes National Crime Victims’ Rights Week with Events, including Resource Fair to Honor Victims & SurvivorsRead the Press Release
LOS ANGELES – In observance of National Crime Victims’ Rights Week, the United States Attorney’s Office has hosted a presentation and resource fair to honor victims and survivors. The office also conducted a Victim Service Awards ceremony to honor law enforcement personnel who have provided the highest level of assistance to victims and survivors of crime.
Each year in April, the Department of Justice observes National Crime Victims’ Rights Week to honor victims of crime and those who advocate on their behalf. The theme this year is “Expand the Circle: Reach All Victims.” President Trump proclaimed April 8 through 14, 2018, as National Crime Victims’ Rights Week.
The United States Attorney’s office, in partnership with Mount Saint Mary’s University, on Tuesday evening hosted a victim rights presentation and a resource fair with the goal of ensuring that every crime victim has access to services and support. The event honored victims and their advocates, and highlighted services available to victims of crime.
United States Attorney Nicola T. Hanna was joined at Tuesday’s event by representatives from the Federal Bureau of Investigation, the Los Angeles District Attorney’s Office, the Los Angeles City Attorney’s Office, the Los Angeles Police Department, and non-profit victim support service organizations. The Pet Prescription Team made a presentation on how therapy dogs can provide vital support to crime victims. The speakers emphasized how law enforcement, mental health professionals, community-based organizations and local residents can work in tandem to support crime victims.
“The United States Attorney’s Office is committed to serving and protecting victims – no matter the type of crime that has affected them,” said United States Attorney Nicola T. Hanna. “Whether the victim has suffered physical, financial or emotional trauma, our staff practices a victim-centered approach that assures victims’ rights are protected and all available services are provided.”
Tuesday night’s event at Mount Saint Mary’s University’s Doheny campus also included representatives from the Coalition to Abolish Slavery & Trafficking; the National Center for Missing and Exploited Children; the Los Angeles Mayor’s Office, Crisis Response Team (CRT); Strength United; the YWCA of Los Angeles; and the Los Angeles LGBTQ Center.
In another event this week, the United States Attorney’s Office held its annual Victim Service Awards ceremony on Wednesday to honor local and federal law enforcement agents and prosecutors who consistently strive to provide a focused, victim-centered approach to supporting victims of crime and next of kin on cases handled by the office.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Victim Witness Assistance Program of the United States Attorney’s Office provides a variety of services and assistance to victims and witnesses. Further information about the local program can be found on its website or by calling (888) 228-0315.
U.S. Attorney applauds Justice Department’s nationwide initiative to combat sexual harassment in housingRead the Press Release
WHEELING — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
U.S. Attorney Bill Powell is applauding this increase of awareness, as sexual harassment in the housing market has been an issue in the Northern District of West Virginia.
“Sexual harassment cannot be tolerated anywhere anytime. It is especially heinous when it happens in someone’s own home, a place where everyone deserves to feel the most protected and safe. This office has made it clear that sexual harassment in the housing industry will be prosecuted. This initiative will make clear to landlords and their employees that this type of behavior is unacceptable and that consequences will follow,” said U.S. Attorney Bill Powell, the Northern District of West Virginia.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
U.S. Attorney McSwain Names New Leadership TeamRead the Press Release
PHILADELPHIA – William M. McSwain, U.S. Attorney for the Eastern District of Pennsylvania, has named the office’s new senior executive leadership team.
McSwain, who was sworn in last week, named Assistant U.S. Attorney Jennifer Arbittier Williams to be his First Assistant U.S. Attorney, effective immediately. Williams is currently the office’s Chief of National Security and Cybercrime. For her work as a prosecutor, she was given the Anti-Defamation League’s SHIELD award which recognizes law enforcement success in the fight against hate crime and extremism. She also successfully prosecuted the first case charging material support of terrorists in the history of the district – the so-called “Jihad Jane” case. “It will be an honor to serve as First Assistant,” said Williams. “After serving for 16 years as a prosecutor in this office, I look forward to bringing my experience in fighting terrorism and cybercrime to a new leadership role.”
McSwain named former U.S. Attorney Louis Lappen as Deputy U.S. Attorney. Lappen had served as the U.S. Attorney since November 2017 and as the Acting U.S. Attorney since 2016. As First Assistant U.S. Attorney from 2010 until 2016, he supervised the Criminal, Civil, and Administrative divisions of the office. He has served as an Assistant United States Attorney in the Eastern District since 1997, investigating and prosecuting a variety of cases, including white collar crime, corruption, child exploitation, violent crime, and narcotics distribution. Lappen successfully prosecuted a high-ranking police officer for corruption and securities fraud matters involving hundreds of millions of dollars in losses. He has received numerous awards and commendations including the American Bar Association’s Norm Maleng Minister of Justice Award. “This office has a history of success and stability,” said Lappen. “I’m looking forward to working closely with the U.S. Attorney in maintaining our culture of excellence.”
Denise Wolf, an Assistant U.S. Attorney in the Criminal Division since 2003, has been named Chief of the Criminal Division, effective April 24, 2018. Wolf has served in the white collar/economic crimes unit of the Criminal Division, along with the firearms and corruption units. She has handled a wide variety of cases, including the prosecution Philadelphia Traffic Court judges and court administrators for ticket-fixing, which led to the Pennsylvania legislature abolishing the Traffic Court. In addition, in 2006, Wolf received the Attorney General Award and other commendations for her role in the prosecution of Eli Lily pharmaceutical. “It’s very humbling to be named Chief of the Criminal Division, and I am looking forward to the challenge,” said Wolf. “I’ll be working with some of the most talented prosecutors in the country.”
McSwain has named Gregory David, an Assistant U.S. Attorney in the Civil Division since 2010, as Chief of the Civil Division, also effective April 24, 2018. David has played a key role in several significant civil cases, including a multi-district False Claims Act investigation that led to a $150 million settlement against the largest home health care company in the country. For his work, David received the Department of Justice Civil Division’s Special Commendation. He will supervise all civil matters including affirmative civil enforcement actions and defense of the federal government in civil litigation. “This is one of the most successful and trailblazing civil divisions in the country,” David said. “I look forward to working with and leading a deep bench of talented Assistant U.S. Attorneys.”
“We have an amazing group of talented and dedicated public servants in this office,” said McSwain. “I’m excited about our new leadership team. I look forward to working with them and supporting them in every way possible.”
U.S. Attorney and IRS Warn Potential Tax Cheats to Timely File Accurate and Complete Tax ReturnsRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation Division, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including listing recent tax fraud prosecutions and sentences.
“Millions of individuals file their federal income tax returns in a timely and accurate manner but unfortunately, there are some who choose not to pay their fair share,” said United States Attorney David J. Freed. “These individuals are taking advantage of the honest taxpayers who finance the government’s operations and subject themselves to criminal prosecution.”
“As the 2018 tax season draws to a close, everyone is reminded of their obligation to file tax returns that accurately reflect all of their income and expenses” said Guy Ficco, Special Agent in Charge of the Philadelphia Field Office. "The Special Agents of IRS Criminal Investigation will continue to pursue the prosecution of those who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes."
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for filing false federal tax returns and committing tax evasion. Defendants have received substantial sentences for tax fraud, ranging from several years in prison to home confinement. Restitution is mandatory and often includes substantial interest and penalties. For example, the following individuals were charged and/or sentenced for tax fraud recently:
FILING FALSE TAX RETURNS AND TAX EVASION
- Donna Marie Wozniak, age 57, of New Freedom, Pennsylvania, pled guilty on August 14, 2017, to a two-count criminal information charging her with embezzlement in connection with healthcare and tax evasion. Wozniak was the business manager for Susquehanna Valley Surgery Center (SVSC), Harrisburg, Pennsylvania from 2000 through 2014. As part of Wozniak’s job duties, she received invoices form vendors of SVSC that needed to be paid from SVSC’s general operating account. Upon receipt of these invoices, Wozniak would then review the invoices to decide when and how much each vendor would be paid. Wozniak obtained blank checks ostensibly for payment to vendors. During a forensic audit of SVSC's financial records, it was discovered that Wozniak made a portion of the signed blank SVSC checks payable to herself and that these checks were cleared through SVSC's M&T Bank account. Wozniak cashed or deposited a total of $4.3 million utilizing multiple bank accounts she maintained. In order to conceal her theft, Wozniak created false invoices from legitimate SVSC vendors. Wozniak would then falsify entries into the QuickBooks accounting software maintained by SVSC, showing the checks and payments were being made to the vendors. Wozniak admitted to the theft of SVSC funds and was terminated from SVSC in November of 2014. Wozniak failed to report the embezzled income on her Federal Income Tax Returns for a total tax loss of $1,312,000. Wozniak was sentenced to 71 months’ imprisonment and ordered to pay $5,587,026.13 in restitution.
- Richard J. Morgan, age 54, of Shavertown, Pennsylvania, pled guilty on July 7, 2017, for committing bank fraud and interfering with the administration of the Internal Revenue laws. Morgan owned and operated Wilkes-Barre Bookkeeping LLC, a Shavertown, Pennsylvania-based business that provided payroll services to its clients. Local businesses contracted Morgan to pay employee payroll and salary expenses, to file IRS Form 941 Employer Quarterly Federal Tax Returns, and to remit employment tax liabilities to federal, state and local taxation authorities. For three of his clients, Morgan failed to file the IRS Forms 941 and remit the employment taxes to the appropriate authorities, instead embezzling the funds for his own personal use. Between March 2010 and October 2016, Morgan embezzled $376,224.85 from those clients, all while lying to them about his activities. Morgan also served as a Treasurer for a non-profit corporation and was tasked with selling its assets and winding up its operations when it closed in February 2010. Instead, after paying the non-profit corporation’s outstanding liabilities, Morgan embezzled the remaining residual sales proceeds of $68,172. Morgan was sentenced on February 13, 2018, to 38 months’ imprisonment and was ordered to pay $494,618.85 in restitution to his victims and the IRS.
- Nicholas A. Long, age 30, of Mechanicsburg, Pennsylvania, pled guilty on October 4, 2017, to an information charging him with the willful failure to pay federal payroll taxes owed by his business, Harrisburg Commercial Interiors, LLC during 2013. An Internal Revenue Service (IRS) investigation revealed that Long, through his solely owned commercial drywall business, Harrisburg Commercial Interior, LLC (HCI), willfully did not pay $216,304 in payroll taxes during 2013 and 2014. The IRS investigation began when several HCI employees contacted the IRS because they did not receive their 2013 income tax refunds. As the owner of HCI, Long exercised primary control over the financial affairs of the business, was solely responsible for issuance of all paychecks, and had sole signature authority on HCI's business bank account. Although he issued payroll checks totaling $730,788 in gross wages during 2013 and 2014, Long did not file the requisite Employer's Quarterly and Annual Federal Tax Returns, Forms and 940, with the IRS, nor pay over the $160,399 he withheld from his employees’ pay checks to the government. Long was sentenced on March 9, 2018, to one year and one day imprisonment and ordered to make full restitution in the amount of $216,304.
- Michael Powers, age 53, of New Cumberland, Pennsylvania, who owns and operates Powers Auto Repair in New Cumberland, pled guilty on September 11, 2017, to understating his true income by $238,381 on his 2010 income tax return. The tax owed on that unreported income amounted to $42,774. Under the terms of his plea agreement, Powers will make restitution to the Internal Revenue Service (IRS) in that amount plus another $26,198 for unpaid taxes owed on unreported income of $208,979 for tax year 2012. Thus, the total loss to the IRS as a result of Powers’ underreporting of income was $68,972. Powers was sentenced on March 12, 2018, to one year probation and home confinement and ordered to pay $68,972 in restitution.
- Sopheak Kim, age 68, of Harrisburg, Pennsylvania, pled guilty on March 28, 2018, to willful failure to collect or pay employment tax and corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Service. Kim owned and operated Trojan Services, Inc., a Harrisburg-based company which contracted to provide labor to local companies. From 2010 through 2013, Kim failed to maintain business records relating to the operation of Trojan Services, Inc., to include records relating to employees, payroll and tax withholdings. The total tax loss alleged is approximately $250,110. Kim is awaiting sentencing.
- Atef Hussein, age 48, of Hagerstown, Maryland, pled guilty on October 30, 2017, to income tax evasion. Hussein, former owner/operator of the Fairground Diner in Carlisle, Pennsylvania, understated income and taxes due, resulting in false income tax returns for tax years 2012 through 2015. The tax loss for that period totaled $122,003. Hussein is scheduled to be sentenced on May 30, 2018.
- Geraldo Ramos, age 44, of Harrisburg, Pennsylvania, pled guilty on November 13, 2017, to conspiracy to submit false claims and submitting false claims against the United States regarding income tax refunds. Between 2010 and 2014, Ramos acted as a tax return preparer and filed numerous false and fraudulent tax returns for family and friends claiming $58,659 in refunds they were not entitled to receive. As a result, the IRS paid the conspirators $52,711, which was shared with Ramos. The fraudulent tax returns included misrepresenting Schedule C income, listing fictitious dependents and manipulating filing status. Ramos is scheduled to be sentenced on April 24, 2018.
- Donald Royce, age 41, of Scranton, Pennsylvania, was indicted on May 16, 2017, for tax preparation fraud charges. Royce was a tax preparer in Scranton who defrauded a number of local residents in 2014. The indictment alleges that Royce prepared fraudulent tax returns for multiple taxpayers causing more than $250,000 in losses. Royce gave the taxpayers a client copy of their tax return, then made material fraudulent changes to the client copy, and submitted the false return to the Internal Revenue Service (IRS) for his financial benefit. The indictment further alleges that Royce took clients’ IRS payment checks and deposited them directly in to his own account without ever remitting the amount to the IRS, all without the taxpayers’ knowledge. Royce is awaiting trial.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are continuing a major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax returns.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS would like to warn taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into their bank accounts. Criminals steal client data from tax professionals and filing fraudulent tax returns, these criminals use the taxpayers' real bank accounts for the deposit. Thieves are then using various tactics to reclaim the refund from the taxpayers, and their versions of the scam may continue to evolve. In one version of the scam, criminals posing as debt collection agency officials acting on behalf of the IRS contacted the taxpayers to say a refund was deposited in error, and they asked the taxpayers to forward the money to their collection agency. In another version, the taxpayer who received the erroneous refund gets an automated call with a recorded voice saying he is from the IRS and threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of their Social Security Number. The recorded voice gives the taxpayer a case number and a telephone number to call to return the refund.
The IRS urges taxpayers to follow established procedures for returning an erroneous refund to the agency. The IRS also encourages taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts. Taxpayers receiving erroneous refunds also should contact their tax preparers immediately. Here are the official ways to return an erroneous refund to the IRS. If the erroneous refund was a direct deposit:
- Contact the Automated Clearing House (ACH) department of the bank/financial institution where the direct deposit was received and have them return the refund to the IRS.
- Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) to explain why the direct deposit is being returned.
If the erroneous refund was a paper check and hasn't been cashed:
- Write "Void" in the endorsement section on the back of the check.
- Submit the check immediately to the appropriate IRS location listed below.The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check.
- Don't staple, bend, or paper clip the check.
- Include a note stating, "Return of erroneous refund check because (and give a brief explanation of the reason for returning the refund check)."
The erroneous refund was a paper check and you have cashed it:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) (see telephone and local assistance for hours of operation) and explain to the IRS assistor that you need information to repay a cashed refund check.
- Write on the check/money order: Payment of Erroneous Refund, the tax period for which the refund was issued, and your taxpayer identification number (social security number, employer identification number, or individual taxpayer identification number).
- Include a brief explanation of the reason for returning the refund.
- Repaying an erroneous refund in this manner may result in interest due the IRS.
For your paper refund check, here are the IRS mailing addresses to use based on the city (possibly abbreviated). These cities are located on the check’s bottom text line in front of the words TAX REFUND:
- ANDOVER – IRS, 310 Lowell Street, Andover, MA 01810
- ATLANTA – IRS, 4800 Buford Highway, Chamblee, GA 30341
- AUSTIN – IRS, 3651 South Interregional Highway 35, Austin, TX 78741
- BRKHAVN – IRS, 5000 Corporate Ct., Holtsville, NY 11742
- CNCNATI – IRS, 201 West Rivercenter Blvd., Covington, KY 41011
- FRESNO – IRS, 5045 East Butler Avenue, Fresno, CA 93727
- KANS CY – IRS, 333 W. Pershing Road, Kansas City, MO 64108-4302
- MEMPHIS – IRS, 5333 Getwell Road, Memphis, TN 38118
- OGDEN – IRS, 1973 Rulon White Blvd., Ogden, UT 84201
- PHILA – IRS, 2970 Market St., Philadelphia, PA 19104
Education is the best way to avoid these common schemes. To learn more about other scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov.
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Two Sentenced for Roles in Drug Trafficking ConspiracyRead the Press Release
Abingdon, VIRGINIA – Two of seven individuals who conspired to distribute more than 50 grams of crystal methamphetamine in Southwest Virginia from sources in Tennessee and Kentucky were sentenced Tuesday in U.S. District Court in Abingdon, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring announced.
Todd Houston Conyer, 30, of Pennington Gap, Va., was sentenced Tuesday, April 10 to a term of imprisonment of 60 months. He had previously pleaded guilty to conspiring to distribute methamphetamine.
In a separate hearing on the same day, Leslie Ann Clasby, 42, of Jonesville, Va., was sentenced to a term of 84 months of imprisonment. Clasby likewise had previously pleaded guilty to conspiring to distribute methamphetamine.
“Crystal methamphetamine is a dangerous drug that poses significant risks to those who use it,” U.S. Attorney Thomas Cullen said. “I appreciate the efforts of our law-enforcement partners and their hard work in dismantling this illegal enterprise.”
“My team is committed to aggressively prosecute those engaged in the distribution of dangerous drugs,” said Attorney General Mark Herring. “We work hard to make our communities safer and appreciate our partnership with federal, state, and local law enforcement agencies to achieve this important goal.”
According to evidence presented at previous hearings by Virginia Assistant Attorney General and Special Assistant United States Attorney Suzanne Kerney-Quillen and Assistant United States Attorney Randy Ramseyer, the defendants engaged in a conspiracy to distribute and possess with the intent to distribute crystal ice methamphetamine from April 1, 2016, through November 7, 2016. Court documents demonstrated that the conspiracy involved over 50 grams of crystal ice methamphetamine, acquired from multiple sources in Tennessee and Kentucky, and several firearms. Numerous undercover purchases of crystal ice were conducted by the Southwest Virginia Drug Task Force at Sturgill’s residence in Jonesville, Virginia, where much of the activity concerning the conspiracy occurred.
The remaining five defendants in the case, Jeremy Rick Sturgill, Tony Lynn Ketron, Jason Dale Moore, William Benjamin Brewer, and Kristina Karen Burton have all pleaded guilty to related drug and firearms charges and will be sentenced later in April 2018.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Lee County Sheriff’s Office, the Scott County Sheriff’s Office, the Virginia State Police, the Jonesville Police Department, and the Southwest Virginia Drug Task Force investigated the case. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States involving Leslie Ann Clasby. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States involving all other defendants.
Two Portland Marijuana Proprietors Accused of Tax CrimesRead the Press Release
PORTLAND, Ore. – Today in separate criminal informations, tax charges were filed in federal court against two Portland-based marijuana business owners. Nathan Wheeler, 42, of Portland, was charged with one count each of wire fraud and tax evasion. Matthew Price, 32, also of Portland, faces four counts of willfully failing to file income tax returns.
According to court documents, Wheeler, a certified public accountant, is alleged to have engaged in a scheme to defraud clients and investors of more than $4.4 million while also evading income taxes. Wheeler and others operated Bridge City Advisors, LLC, offering accounting, investment, and legal services to clients throughout Portland. Wheeler also held an Oregon medical marijuana license to grow and distribute marijuana. He is accused of using investor funds, without their knowledge or consent, in part, to build and expand his marijuana enterprise. In carrying out his fraud, he sometimes prepared false account statements to keep clients from discovering the unauthorized use of funds.
Beginning in August 2013, Price was part owner and operator of a Portland-based medical marijuana dispensary. In 2014, Price and his business partner opened two additional retail locations, a second in Portland and one in Eugene, Oregon. Between 2011 and 2014, Price allegedly received substantial income from the business and a marijuana farmers’ market he previously owned and operated. During this four-year period, Price is accused of failing to file individual income tax returns, resulting in a tax loss of nearly $263,000.
Both defendants are expected to make their first appearance in federal court on Wednesday, April 25, 2018.
A criminal charge is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Two Erie Residents Indicted on Drug Charges Resulting in DeathRead the Press Release
ERIE, Pa. – A federal grand jury in Erie, Pennsylvania, has returned separate indictments charging two Erie residents with violating federal drug laws, United States Attorney Scott W. Brady announced today.
"To combat the deadly opioid epidemic, the U.S. Attorney’s Office will use every lawful tool in our arsenal to identify and prosecute drug traffickers whose products poison our citizens," stated U.S. Attorney Brady. "The federal statute pertaining to drug distribution resulting in serious bodily injury or death carries a 20-year mandatory minimum sentence and up to life in prison. Severe penalties are warranted when drug dealers knowingly distribute drugs that kill our fellow citizens."
Erie County District Attorney Jack Daneri added, "Local law enforcement in this county will continue to work closely with our federal partners to put maximum effort at addressing the opioid overdose epidemic. We will continue to work with the Drug Enforcement Administration and the U.S. Attorney, and we will make referrals for federal prosecution where the facts warrant."
A seven-count indictment, returned yesterday, named Damon Dupree Henderson, aka Dee, aka Db, age 28, as the sole defendant.
According to the indictment presented to the court, Henderson sold a quantity of fentanyl and a quantity of cocaine that caused the death of R.R.T. on June 15, 2017. The indictment also charges Henderson with possessing with intent to distribute various amounts of heroin, fentanyl, a heroin/fentanyl mixture, cocaine, and crack cocaine on or about June 20, 2017.
A three-count indictment, also returned yesterday, named Derrick Lamont Hemphill, Sr., aka G, aka Shelly, age 27, as the sole defendant.
According to the indictment presented to the court, Hemphill sold fentanyl that caused the death of K.A.J. on November 26, 2017. The indictment also alleges that on November 26, 2017, Hemphill possessed with intent to distribute fentanyl and a heroin/fentanyl mixture.
For Henderson, the law provides for a maximum total sentence of life in prison, a fine of $12,000,000, or both. For Hemphill, the law provides for a maximum total sentence of life in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting these cases on behalf of the government.
The Erie County District Attorney’s Office County Detective Bureau, the Erie County District Attorney’s Office Drug Task Force, the Millcreek Township Police Department, and the Erie Police Department, with assistance from the Drug Enforcement Administration, conducted the investigation leading to the indictments in these cases.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Drivers Plead Guilty to Conspiracy to Transport Illegal AliensRead the Press Release
Gulfport, Miss. – Ever Anibal Silva-Escobar also known as Ever Silva Escobar, age 18, and a citizen of El Salvador, pled guilty today before U.S. District Judge Louis Guirola, Jr. to conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Acting Special Agent in Charge Thomas M. Annello, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Previously, on April 3, 2018, Kenneth Samuel Hernandez-Valdez also known as Kenneth Hernandez, an 18-year old citizen of Honduras, pled guilty before Judge Guirola to the same offense as part of the same conspiracy. Both Silva-Escobar and Hernandez-Valdez were found guilty with Hernandez-Valdez scheduled to be sentenced by Judge Guirola on June 27, 2018, and Silva-Escobar scheduled to be sentenced on July 17, 2018. They each face a potential maximum sentence of 10 years in prison and a $250,000 fine, as well as special assessments that could total $5,100.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. Silva-Escobar was the driver of one of the SUVs and Hernandez-Valdez was the driver of the other SUV. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter.
Neither of the drivers had a valid driver’s license, and both were found to be in the United States illegally. Each vehicle contained eight passengers who also were found to be illegal aliens. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS.
Silva-Escobar, who was working and living in Houston, Texas, and Hernandez-Valdez, who had attended high school in Texas and speaks both English and Spanish, confirmed that they knew their passengers were illegal aliens and that they were being paid to transport them from Texas. They also admitted that they were friends with each other, and were willing participants in the conspiracy to transport illegal aliens.
Also pleading guilty to separate felonies, were three of the passengers in the SUVs. Pedro Lopez-Alvarez also known as Pedro Alvarez-Baten, age 21, a citizen of Guatemala; Silvano Doroteo Morales-Ventura, age 23, a citizen of Mexico; and Wilmer Antonio Rubi-Padilla, age 25, a citizen of Honduras, pleaded guilty on April 10, 2018, before Judge Guirola, to the crime of Unlawful Re-entry by an Alien After Deportation or Removal.
Lopez-Alvarez, Morales-Ventura and Rubi-Padilla were found guilty of their felony offenses and are scheduled to be sentenced by Judge Guirola on July 3, 2018. Each of the three men faces a potential maximum 2 years imprisonment, not more than 1 year supervised release, a maximum $250,000 fine, and a special assessment of $100.
Finally, in addition to their potential maximum sentences of imprisonment, supervised release and fines, all of the defendants from this incident will be subject to Department of Homeland Security removal proceedings upon the completion of their sentences.
The case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Two Defendants Indicted in Brooklyn Federal Court for Foreign Exchange Trading ScamsRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Tae Hung Kang, also known as “Kevin Kang,” and John Won with conspiring to commit wire and securities fraud, securities fraud, and conspiring to commit money laundering, in connection with schemes involving foreign exchange trading that targeted members of the Korean-American community. Kang was also charged with substantive wire fraud. The defendants were arrested today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, Kang and Won lured investors with false promises of great profits to be made in the foreign exchange market, and then stole their money,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, is committed to investigating and prosecuting fraudsters who prey upon the investing public.” Mr. Donoghue expressed his appreciation to the United States Commodities and Futures Trading Commission and the FBI Field Office in Atlanta for their assistance during the investigation.
“As alleged, Kang and Won pursued victims with specific placement of advertisements in Korean-language newspapers, preying upon the kinship of their target group and exploiting their affiliation with this particular community,” stated FBI Assistant Director-in-Charge Sweeney. “In addition, they falsely represented their trading credentials while persuading investors to contribute additional money in stock—money that was eventually misappropriated. The FBI will continue to dedicate resources to uncovering financial crimes of all kinds, especially those that seek to capitalize on the trust and affinity of innocent victims.”
As alleged in court documents, dozens of investors in the Eastern District of New York were defrauded in connection with the two charged schemes, both of which involved foreign exchange trading. Foreign exchange trading refers to trading one currency for another in an effort to profit from fluctuating exchange rates. In connection with the first alleged scheme, investors were enticed by advertisements placed by the defendants in Korean-language newspapers and other promotional materials to open foreign exchange trading accounts that would be managed by Kang, Won and others at their company FOREXNPOWER. Kang and Won promised investors double-digit returns, claiming to have a secret algorithmic trading method that would generate large profits with minimal risk. In fact, Kang and Won had minimal trading experience, their algorithmic trading method never performed as promised, and investors suffered substantial losses.
In the second scheme, investors were persuaded by the defendants to invest their money into stock issued by Safety Capital Management, Inc. (“Safety Capital”), which did business as FOREXNPOWER. These investors were told their investments would be pooled by Kang and others to conduct foreign exchange trading, or to expand the FOREXNPOWER business, and, again, promised a large return on their investment. Ultimately, nearly all of the money that was invested in Safety Capital stock, totaling at least $700,000, was misappropriated by the defendants. The defendants used the stolen money to pay for advertisements targeting investors and promoting FOREXNPOWER.
If convicted of wire fraud conspiracy, the defendants each face up to 20 years’ imprisonment.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.
The Defendants:
TAE HUNG KANG (also known as “Kevin Kang”)
Age: 55
Bayside, New YorkJOHN WON
Age: 49
Flushing, New YorkE.D.N.Y. Docket No. 18-CR-184 (WFK)
Two Austin Area Men and an Arizona Machine Gun Manufacturer Charged in Connection with Firearms Smuggling SchemeRead the Press Release
In Austin today, federal charges were filed against two Austin area residents and an Arizona machinegun manufacturer in connection with a firearms smuggling scheme that involved machine guns and assault weapons, announced United States Attorney John F. Bash; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; and, United States Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division.
A two–count Information charges 28–year-old Tyler Carlson of Austin, 69-year-old Michael Fox of Georgetown, TX, and 62–year-old Tracy Garwood of Scottsdale, AZ, with one count of conspiracy to violate multiple federal laws, including possessing and transferring unregistered machineguns and unlawfully exporting firearms to Mexico. Additionally, Carlson is charged with one substantive count of possession of an unregistered machinegun.
“We need to vigorously enforce the firearm laws that are on the books, and these charges are part of that mission,” stated United States Attorney John F. Bash.
According to the Information, Carlson worked with others to acquire and unlawfully smuggle 200 firearms, including .50 caliber rifles, and hundreds of thousands of rounds of ammunition to Mexico.
Additionally, according to the Information, Carlson worked with Michael Fox, a former law enforcement officer and federal firearms licensee, to illegally acquire multiple M-134G Minigun machineguns. The M-134G is a six-barrel rotary machine gun that can fire between 2,000 and 6,000 rounds of ammunition per minute. Fox then contacted Garwood, owner of Garwood Industries in Scottsdale, who agreed to help with the construction and supply Fox with M-134G parts.
Garwood submitted false paperwork to the ATF claiming he had destroyed multiple M-134G rotor housings—a key component of the M-134G that must be serialized and registered with the ATF. Instead, according to the Information, Garwood unlawfully transferred possession of those rotor housings to Fox.
On February 8, 2017, authorities recovered three M134G rotor housings while executing a search warrant at Fox’s residence in Georgetown, Texas. Two of the rotor housings were ones that Garwood told ATF were destroyed.
The Information also states that prior to the search warrant, Fox successfully built multiple M-134G machineguns, unlawfully transferred them to Carlson, who in turn transferred them to an unnamed person. That person successfully smuggled M-134G machineguns to Mexico.
“Firearms trafficking is a priority for ATF because of the increased potential for those guns to be acquired by the criminal element,” said ATF Special Agent in Charge Fred Milanowski.
“By arresting weapons smugglers, law enforcement cuts the supply of firearms to the drug cartels, who fuel violence and pose a threat to citizens on both sides of the border,” said Special Agent in Charge Shane Folden, HSI San Antonio.
“The Postal Inspection Service is committed to protecting the financial systems of the Postal Service by investigating money laundering activities involving the misuse of Postal Service products and money orders to facilitate criminal activity. We remain steadfast in our resolve to seek justice to the end and defend the nation’s mail service from illegal use. This goal is achieved through collaborative investigative efforts with other law enforcement agencies,” stated USPIS Inspector in Charge Adrian Gonzalez
Upon conviction, Carlson faces up to 10 years on the substantive unlawful possession of a machinegun charge, and each defendant faces up to five years in federal prison on the conspiracy charge. No further court dates are scheduled at this time.
The ATF, HSI, USPIS are conducting this investigation. The U.S. Marshal Service assisted with the deportation of Carlson from Mexico. The Southern District of Texas and the District of Arizona provided assistance during this investigation. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An Information is merely a charge and should not be considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
Town of Ticonderoga Agrees to Bring Drinking Water System into ComplianceRead the Press Release
Acting Assistant Attorney General Jeffrey H. Wood for the Environment and Natural Resources Division, U.S. Attorney Grant C. Jaquith for the Northern District of New York, Regional Administrator Pete Lopez for the U.S. Environmental Protection Agency (EPA), and New York State Attorney General Eric T. Schneiderman announced today that the Town of Ticonderoga, New York has entered into a consent decree to bring the town into compliance with the federal Safe Drinking Water Act and Part 5 of the New York State Sanitary Code. Under the terms of the agreement, Ticonderoga will switch the source of about half of the drinking water it provides to a groundwater source.
“Clean drinking water is a priority for all Americans. This agreement is carefully crafted to ensure that the Town of Ticonderoga is able to make required upgrades to its drinking water systems in a timely, cost-effective, and appropriate manner, while also ensuring that local residents are notified immediately if drinking water contamination is found,” said Acting Assistant Attorney General Wood for the Justice Department’s Environment and Natural Resources Division. “We will continue to work with our federal, state, and local partners to ensure compliance with the Safe Drinking Water Act.”
“With this agreement, and with support and technical assistance from the state and federal government, Ticonderoga has a path forward to ensure that the people of Ticonderoga receive clean drinking water,” said EPA Regional Administrator Pete Lopez.
“It is fitting that a town named for its location as the junction of two majestic waterways has committed to provide clean and protected water to its residents,” said United States Attorney Grant C. Jaquith. “We will continue to work with the Environment and Natural Resources Division, the EPA, and state and local authorities to ensure compliance with the federal Safe Drinking Water Act and to protect public health in Ticonderoga and throughout the Northern District of New York.”
“Every New Yorker should have access to safe, clean drinking water, and this agreement ensures that for Ticonderoga residents,” said Attorney General Schneiderman. “My office is proud of this collaborative victory and remains committed to improving environmental safety and public health across our state.”
The Town of Ticonderoga owns and operates an unfiltered drinking water system with an uncovered finished water reservoir that provides drinking water to approximately 5,000 customers. The water system does not meet state and federal regulatory requirements. The town has been out of compliance with a federal Safe Drinking Water Act regulation called the Long Term 2 Enhanced Surface Water Treatment Rule (LT2). Specifically, the system does not have proper treatment for Cryptosporidium. The LT2 rule specifically targets public water systems with surface water as their source, which have higher potential risks of Cryptosporidium contamination. These systems are required to treat unfiltered surface water for Cryptosporidium, which can lead to serious and potentially fatal gastrointestinal illness. The illness poses greater risks to people with weakened immune systems, such as young children, pregnant women, and the elderly. The rule also requires that reservoirs that hold finished drinking water (water that is ready to drink) be covered to protect them from contamination.
Under the terms of the consent decree filed yesterday, the Town of Ticonderoga will install wells to draw drinking water from the groundwater and install a storage tank to ensure a clean and protected water supply—projects that will cost approximately $13 million. The town will also complete improvements to the Baldwin Road filter plant by June 2020. While the work to accomplish these capital improvements is being completed, the consent decree requires the town notify the public immediately if sampling indicates any elevated risk of Cryptosporidium contamination.
In addition to the work required to ensure its system meets federal and state requirements, Ticonderoga has agreed to two additional actions under EPA’s Supplemental Environmental Projects policy. First, the town has agreed to establish a program to notify residents of water system outages or concerns, including boil-water notices. This notification program will also enable notification of other emergencies, including sewer or gas line breakages, flooding, police activity, and severe weather, by phone call, email, or text message. Second, the town will establish a pharmaceutical disposal program to anonymously accept any unwanted pharmaceutical products. The program will reduce the quantity of pharmaceuticals released to the environment that might otherwise make their way into the community’s drinking water. The town will also pay a $50,000 penalty to be divided evenly between the United States and New York State.
The consent decree has been lodged with the U.S. District Court for the Northern District of New York and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
For more information on the Safe Drinking Water Act, please visit: www.epa.gov/sdwa
Three people indicted for illegally reentering the U.S. after multiple deportationsRead the Press Release
Three people were indicted for illegally reentering the United States after multiple deportations.
Misael De Jesus Constanza Hernandez, 29, a citizen of El Salvador, was found in Ohio last month after having previously been deported three times, according to the indictment.
Victor Guadalupe Gonzales, 46, a citizen of Mexico, was found in Ohio last month after having been previously deported twice, according to the indictment.
Rafael Eustate-Santos, a citizen of the Dominican Republic, was found in Ohio last month after having been previously deported twice, according to the indictment.
The cases were investigated by Immigration and Customs Enforcement, Department of Homeland Security. They are being prosecuted by Assistant U.S. Attorneys Kathryn Andrachick, Brian Deckert and Danielle Angeli.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three men plead guilty to concealing sending money to Anwar Al-AwlakiRead the Press Release
Three men pleaded guilty to their roles in concealing the provision of thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.
The guilty pleas were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Ibrahim Zubair Mohammad, 38; Asif Ahmed Salim, 37; and Sultane Room Salim, 43, each pleaded guilty this week to one count of concealment of financing of terrorism. They are expected to be sentenced later this year.
“These defendants provided thousands of dollars to finance terrorism, then used every effort to conceal their activity from law enforcement,” U.S. Attorney Herdman said. “This case demonstrates that we will work around the clock and across the globe to ensure that anyone who seeks to do our nation harm, whether on the battlefield or through the banking system, will be held accountable.”
“These three individuals have now accepted responsibility for taking steps to conceal that they gave funds to a known terrorist,” said Special Agent in Charge Anthony. “The identification of the provision of these funds to a dangerous terrorist and the subsequent investigation demonstrates how members of the FBI's Joint Terrorism Task Force worked with our international law enforcement partners to mitigate threats in order to protect our citizens.”
A fourth defendant, Yahya Farooq Mohammad, pleaded guilty last year to one count of conspiracy to provide and conceal material support or resources to terrorists and one count of solicitation to commit a crime of violence. Farooq Mohammed admitted to conspiring to travel to Yemen to provide thousands of dollars, equipment, and other assistance to Al-Awlaki. He also admitted to soliciting an undercover FBI employee posing as a hitman to kidnap and murder U.S. District Judge Jack Zouhary. He was sentenced to 27 ½ years in prison last year.
Ibrahim Mohammad, was an Indian citizen who studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim was a U.S. citizen who studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago area from 2006 through 2012, until he moved to the Columbus area, according to court documents.
The three defendants who pleaded guilty this week acted to conceal supplying funds to Anwar Al-Awlaki in 2009. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, advocated violence against the United States and supported and was involved in attempted terrorist attacks against civilians, according to court documents.
Farooq Mohammad travelled with two other people to Yemen in 2009 to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki, according to court documents. The money Farooq Mohammad provided included approximately $17,000 that had been provided by Asif and Sultane Salim in the United States. Ibrahim Mohammad facilitated the transfer of the money to Farooq Mohammad overseas for him to take to Awlaki in Yemen.
After law enforcement began investigating the financial transactions involved in the funds provided to Awlaki, Ibrahim Mohammad, Asif Salim, and Sultane Salim attempted to conceal the source of the funds provided to Awlaki by lying to investigators and deleting emails from their accounts that were related to the transactions.
The case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Michael J. Freeman of the Northern District of Ohio, and Trial Attorneys David Smith and Gregory Gonzalez of the National Security Division’s Counterterrorism Section.
Three People Charged with Interstate Gun Trafficking Conspiracy Spanning from Virginia to New JerseyRead the Press Release
NEWARK, N.J. – A Virginia woman who is an active-duty member of the U.S. Navy and a New Jersey couple have been charged with conspiring to illegally purchase five semi-automatic handguns bound for New Jersey, U.S. Attorney Craig Carpenito announced today.
Tesora Amanda Cortes Trejorojas, 23, of Norfolk, Virginia; Azia Sinclair, 28, of Newark; and Shyheim Tyson, a/k/a “Shy,” 22, of Newark, are charged by a superseding complaint with one count of conspiring to transport and receive in New Jersey firearms purchased and obtained outside the State of New Jersey. Sinclair had previously been charged by complaint filed in Newark federal court on March 12, 2018, for receiving a firearm, which had been shipped or transported in interstate commerce.
Trejorojas was arrested this morning and will appear this in Norfolk, Virginia, federal court. Sinclair and Tyson will appear on April 26, 2018, before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
In November 2017, Trejorojas and Sinclair allegedly engaged in numerous text messages with each other planning for Trejorojas to purchase firearms in Virginia, which Sinclair and her boyfriend, Tyson, would then transport back to New Jersey.
On Nov. 11, 2017, Sinclair and Tyson drove from New Jersey to Trejorojas’ residence in Norfolk. The three of them then went to a gun store in Norfolk, where Trejorojas purchased five semiautomatic handguns, as well as 200 rounds of ammunition, with cash provided by Sinclair and Tyson. The next day, Sinclair and Tyson drove back to New Jersey with the five handguns and ammunition.
Approximately five hours after Sinclair and Tyson arrived back in New Jersey, an individual was arrested in Orange, New Jersey, after police officers responded to the sound of gunshots. During the arrest, police officers recovered one of the five handguns that Sinclair and Tyson had transported from Virginia to New Jersey.
In March 2018, law enforcement executed a search warrant on Sinclair’s residence in Newark, and found another of the guns that Sinclair and Tyson had transported from Virginia to New Jersey in November 2017.
The conspiracy to deal in firearms without a license carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, and Special Agent in Charge Thomas L. Chittum III, Washington Field Division, with the investigation leading to today’s charges. He also thanked the N.J. State Police; the Newark Department of Public Safety: and Naval Criminal Investigative Service (NCIS) in Norfolk for their assistance.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Trejorojas: TBD
Sinclair: Linda Foster Esq., Assistant Federal Public Defender
Tyson: TBDThree Men Plead Guilty to Concealing Sending Funds to Anwar Al-AwlakiRead the Press Release
Ibrahim Zubair Mohammad, 38; Asif Ahmed Salim, 38; and Sultane Room Salim, 43, pleaded guilty this week to one count of concealment of financing of terrorism, for their roles in concealing the provision of thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division announced the pleas.
A fourth defendant, Yahya Farooq Mohammad, pleaded guilty last year to one count of conspiracy to provide and conceal material support or resources to terrorists and one count of solicitation to commit a crime of violence. Farooq Mohammed admitted to conspiring to travel to Yemen to provide thousands of dollars, equipment and other assistance to Al-Awlaki. He also admitted to soliciting an undercover FBI employee posing as a hitman to kidnap and murder U.S. District Judge Jack Zouhary. He was sentenced to 27 ½ years in prison last year.
Ibrahim Mohammad, an Indian citizen, studied engineering at the University of Illinois Urbana-Champaign from 2001 through 2005. In or around 2006, he moved to Toledo, Ohio, and married a U.S. citizen. He became a lawful permanent resident of the United States in or around 2007.
Asif Salim, a U.S. citizen, studied at Ohio State University between 2000 and 2005. He became a resident of Overland Park, Kansas, in 2007. His brother, Sultane Salim, is also a U.S. citizen who resided in the Chicago area from 2006 through 2012, until he moved to the Columbus area, according to court documents.
The three defendants who pleaded guilty this week acted to conceal supplying funds to Anwar Al-Awlaki in 2009. Al-Awlaki, a key leader of Al Qaeda in the Arabian Peninsula, advocated violence against the United States and supported and was involved in attempted terrorist attacks against civilians, according to court documents.
Farooq Mohammad travelled with two other people to Yemen in 2009 to meet Awlaki. They were unable to meet with Awlaki, so instead travelled to Sana’a, Yemen, to meet with one of his associates. Farooq Mohammad and his two fellow travelers gave the associate approximately $22,000 to be given to Awlaki, according to court documents. The money Farooq Mohammad provided included approximately $17,000 that had been provided by Asif and Sultane Salim in the United States. Ibrahim Mohammad facilitated the transfer of the money to Farooq Mohammad overseas for him to take to Awlaki in Yemen.
After law enforcement began investigating the financial transactions involved in the funds provided to Awlaki, Ibrahim Mohammad, Asif Salim and Sultane Salim attempted to conceal the source of the funds provided to Awlaki by lying to investigators and deleting emails from their accounts that were related to the transactions.
This case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Michael J. Freeman of the Northern District of Ohio, and Trial Attorneys David Smith and Gregory Gonzalez of the National Security Division’s Counterterrorism Section.
The Woodlands Retina Center Settles Claim to Ensure Accessibility for People with DisabilitiesRead the Press Release
HOUSTON - The U.S. Attorney’s Office has resolved a claim that The Woodlands Retina Center violated the American with Disabilities Act (ADA) when it refused to treat a disabled patient because he was accompanied by a service animal, announced U.S. Attorney Ryan K. Patrick.
The United States initiated an investigation after receiving a complaint that alleged The Woodlands Retina Center discriminated against people with disabilities and denied equal access to medical services to people with disabilities who use service animals. The individual alleged The Woodlands Retina Center told him they had a “no dog policy” and refused to treat him because a service animal accompanied him during an eye appointment.
Under the ADA, persons with disabilities who are accompanied by their service animals shall be afforded the opportunity to participate in or benefit from the goods, services, facilities, privileges, advantages or accommodations equal to that afforded to other individuals. The government is authorized to commence a civil action when it is believed discrimination exists, seeking damages and full compliance with the ADA including requiring the owners and operators of places of public accommodations to make reasonable modifications to policies, practices and procedures.
Dr. Wael Abdelghani owns The Woodlands Retina Center, which is a professional office and a place of public accommodation under the ADA.
“This settlement resolves an allegation of discrimination based on disability,” said Patrick. “The announcement today should make clear that our medical professionals must provide reasonable accommodations to people with disabilities and that every member of our society is entitled to equal access to medical services.”
The settlement agreement requires The Woodlands Retina Center to adopt a service animal policy that will ensure it accepts and treats disabled patients accompanied by service animals.
The settlement agreement also requires The Woodlands Retina Center to pay the individual who made the claim compensatory damages.
Finally, the settlement agreement provides that the U.S. Attorney’s Office monitors the center to ensure it is meeting its obligations under the ADA.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta handled this matter on behalf of the U.S. Attorney’s Office.