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Tuesday 10 April 2018
Historian Sentenced for Theft of Government Records from the National ArchivesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On April 9, 2018, United States District Judge Theodore D. Chuang sentenced Antonin DeHays, age 33, of College Park, Maryland, to 364 days in prison followed by three years of supervised release (the first eight months on home detention), as well as 100 hours of community service, for theft of government records from the National Archives and Records Administration (NARA). Judge Chuang also ordered DeHays to pay $43,456.96 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Assistant Inspector General for Investigations Jason Metrick of the National Archives and Records Administration - Office of Inspector General.
According to the plea agreement, beginning in December 2012, and continuing through June 2017, DeHays stole and knowingly converted for his own use U.S. service members’ dog tags and other records from the public research room at the National Archives at College Park, Maryland. Specifically, DeHays stole at least 291 U.S. service members’ dog tags and at least 134 other records from the National Archives at College Park. Some of these dog tags bore evidence of damage, such as dents and charring due to fire sustained during crashes of Allied aircraft that were shot down or crash-landed within German-controlled areas of Europe during World War II.
For example, on December 9, 2016, DeHays visited the National Archives at College Park and stole two dog tags, one silver and one brass, issued to a downed Tuskegee Airman, who died when his fighter plane crashed in Germany on September 22, 1944. DeHays gave the brass dog tag to a military aviation museum in exchange for the opportunity to sit inside a Spitfire airplane. On a different occasion, DeHays stole two dog tags that were linked together with a wire loop. One of the dog tags was issued to a U.S. serviceman who served in World War II, and the other dog tag was issued to his father, who had served in World War I.
DeHays stole other records, in addition to dog tags, from the National Archives at College Park, including identification cards, personal letters, photographs, a bible, and pieces of downed U.S. aircraft.
Although DeHays kept some of the stolen U.S. dog tags and other stolen records for himself and gave others as gifts, he sold the majority of the stolen items on eBay and elsewhere. Before selling the dog tags, DeHays sometimes removed from the dog tags markings made in pencil which could have been used to identify the dog tags as having been stolen from the National Archives. On one occasion, DeHays sent a text message to a potential buyer stating that certain dog tags for sale were “burnt and show some stains of fuel, blood . . . very powerful items that witness the violence of the crash.” On a different occasion, DeHays sent a text message to a potential buyer stating that a dog tag for sale was “salty” (bearing the signs of war-related damage) and that an officer ID and American Red Cross ID for sale were “partially burned.”
United States Attorney Robert K. Hur commended NARA – Office of Inspector General and the U.S. Department of the Treasury – Office of Inspector General for their work in the investigation. Mr. Hur also thanked Assistant United States Attorney Nicolas A. Mitchell, who prosecuted the case.
Helena Man Sentenced for Methamphetamine DistributionRead the Press Release
HELENA—John Shannon Finley, Jr., 24, of Helena, Montana, was sentenced to 121 months in prison, 10 years supervised release, and a $100 surcharge by Senior United States District Court Judge Charles C. Lovell on Tuesday, April 10, 2018 for conspiracy to possess with the intent to distribute methamphetamine. Finley, Jr. was arrested after making several trips to Washington state to obtain methamphetamine. The court found Finley, Jr. was responsible to possessing with intent to distribute between 4,000-12,000 individual doses of methamphetamine.
The charge against Finley, Jr. is the result of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Tom Bartleson prosecuted the case.
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.
Galesburg, Ill. Woman Sentenced to 200 Months in Prison for Methamphetamine OffenseRead the Press Release
DAVENPORT, Iowa – On April 9, 2018, United States District Court Judge Rebecca Goodgame Ebinger, sentenced Taren Coupland, age 32, of Galesburg, Illinois, to 200 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Marc Krickbaum. Coupland was ordered to serve five years of supervised release following her term of imprisonment and pay $100 to the Crime Victims’ Fund.
On December 22, 2017, Coupland pleaded guilty to the charge that arose from a joint investigation by the United States Drug Enforcement Administration Task Force and the Davenport Police Department Tactical Operations Bureau. Coupland was involved in a methamphetamine conspiracy from May 1, 2017, through August 3, 2017, and during that time, she was responsible for distributing over 5,600 grams of ice methamphetamine.
This matter was investigated by the United States Drug Enforcement Administration Task Force, Davenport Police Department Tactical Operations Bureau, and Iowa Department of Public Safety, DCI Criminalistics Laboratory. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Galesburg, Ill. Man Sentenced to 240 Months in Prison for Methamphetamine OffenseRead the Press Release
DAVENPORT, Iowa – On April 9, 2018, United States District Court Judge Rebecca Goodgame Ebinger sentenced Jason David Chaney, age 31, of Galesburg, Illinois, to 240 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Marc Krickbaum. Chaney was ordered to serve five years of supervised release following his term of imprisonment and pay $100 to the Crime Victims’ Fund.
On December 22, 2017, Chaney pleaded guilty to the charge that arose from a joint investigation by the United States Drug Enforcement Administration Task Force and the Davenport Police Department Tactical Operations Bureau. Chaney was involved in a methamphetamine conspiracy from May 1, 2017, through August 3, 2017, and during that time he was responsible for distributing over 6,800 grams of ice methamphetamine.
This matter was investigated by the United States Drug Enforcement Administration Task Force, Davenport Police Department Tactical Operations Bureau, and Iowa Department of Public Safety, DCI Criminalistics Laboratory. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Fort Totten Man Indicted for MurderRead the Press Release
FARGO – United States Attorney Christopher C. Myers announced that John Willard Greywind, age 42, was charged by an Indictment returned on March 22, 2018, for Second Degree Murder and Voluntary Manslaughter.
The Indictment alleges that on November 13, 2017, Greywind, who is enrolled in the Spirit Lake Sioux Tribe, killed Jogenia Lopez Austin, his girlfriend, and the acts occurred within Indian country, that is, within the exterior boundaries of the Spirit Lake Indian Reservation. The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, and Devils Lake Police Department.
This case is being prosecuted by First Assistant U.S. Attorney Keith Reisenauer.
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Former federal prison guard pleads guilty to accepting bribes to smuggle contraband into prison for inmatesRead the Press Release
ATLANTA – Melvin Thomas, a former prison guard at the Atlanta United States Penitentiary (“USP”) has pleaded guilty to accepting bribe payments in exchange for smuggling contraband into the prison.
“Corruption in prisons undermines the public’s faith in the criminal justice system and puts the safety of prison staff and inmates at risk,” said U.S. Attorney Byung J. “BJay” Pak. “Thomas took bribes instead of honoring his oath. He compromised his commitment to his fellow officers and the citizens who expect prison guards to have the utmost integrity.”
“The OIG remains committed to rooting out corruption within our federal prisons. Today’s guilty plea demonstrates that those who betray the trust of their fellow correctional officers and citizens will face consequences for doing so,” stated Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Miami Field Division.
According to U.S. Attorney Pak, the charges and other information presented in court: From approximately July 2009 to April 2017, Thomas was a correctional officer at the U.S. Penitentiary in Atlanta, Georgia. USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta prohibits inmates from using or possessing tobacco products. Nevertheless, as a prison guard, Thomas accepted several bribe payments from an inmate in exchange for smuggling tobacco into the prison. In total, the inmate paid Thomas approximately $3,500 for the contraband that he smuggled into the prison.
On February 14, 2018, Melvin Thomas, 40, Rocky Mount, North Carolina, was charged via criminal information with the bribery of a public official. Sentencing is scheduled for July 10, 2018, before U.S. District Judge Timothy C. Batten, Sr.
This case is being investigated by the Department of Justice Office of Inspector General.
Assistant U.S. Attorney Ryan Huschka is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Treasurer Pleads Guilty to Embezzling from Gladstone Firefighters UnionRead the Press Release
KANSAS CITY, Mo. – A former treasurer of the Gladstone, Mo., firefighters union pleaded guilty in federal court today to embezzling more than $26,000 from the union.
Charles E. Duddy, 58, of Platte City, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge John T. Maughmer to an information that charges him with the embezzlement and theft of union funds.
Duddy was the treasurer of the Gladstone Firefighters IAFF Union Local 3228 from 2012 through April 2016. In his capacity as treasurer, Duddy had access to Local 3228’s debit card and was authorized to use the debit card only for Local 3228’s expenses.
By pleading guilty today, Duddy admitted that he used Local 3228’s bank account to make $26,479 in personal expenditures, including expenditures for the payment of his property taxes, title loans, groceries and dining.
Duddy has paid $10,000 in restitution to Local 3228 for the stolen funds. Under the terms of today’s plea agreement, Duddy must pay a money judgment for the remaining balance of $16,479.
Under federal statutes, Duddy is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the FBI.
Former Fulton County Tannery Owner Charged with Illegally Storing Hazardous WasteRead the Press Release
ALBANY, NEW YORK – Robert James Carville, age 56, of West Palm Beach, Florida, was arrested today on charges that he illegally stored hazardous waste in an abandoned tannery building in Johnstown, New York, where Carville had owned and operated a tannery known as Carville National Leather.
The announcement was made by United States Attorney Grant C. Jaquith and Tyler Amon, Special Agent in Charge for the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), Regions 1 and 2.
Carville was arrested today in West Palm Beach and appeared before a United States Magistrate Judge in the United States District Court for the Southern District of Florida. He is scheduled to be arraigned in Albany federal court on April 16.
The indictment alleges that Carville knowingly stored hundreds of gallons of hazardous waste, including chromium, lead, and both ignitable and corrosive chemicals, without a permit for more than two years beginning in April 2014 at the abandoned Carville National Leather facility located at 10 Knox Avenue in Johnstown, New York, in violation of the Resource Conservation and Recovery Act (RCRA).
The indictment also alleges that Carville failed to report the release of these hazardous substances by failing to notify appropriate governmental agencies that he had abandoned these hazardous chemicals, in violation of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as the Superfund law.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Carville carry a maximum sentence of 3 years in prison, a maximum fine of more than $41 million (based on the number of days of violations alleged in the indictment), and a term of post-imprisonment supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by EPA-CID and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Spills and other environmental violations can be reported to EPA’s Superfund National Response Center hotline at 1-800-424-8802 or online at epa.gov/tips.
Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Filing Deadline ApproachesRead the Press Release
CHICAGO — Federal authorities today announced criminal charges against several Chicago-area defendants for a variety of alleged tax schemes. With tax season in full swing, the prosecutions serve as a warning that individual taxpayers are responsible for the contents of their own return.
The criminal prosecutions announced today include charges against two Chicago tax preparers who allegedly assisted clients in obtaining thousands of dollars in fraudulent refunds, as well as charges against individuals accused of knowingly filing false tax returns or willfully failing to file tax returns as required.
In addition to potential criminal penalties, including incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil penalties. The nation’s tax deadline this year is April 17.
“Tax offenses are neither victimless nor without consequence,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “Taxes are how governments provide essential services. Our office strives to preserve the integrity of the federal tax system through vigorous criminal enforcement of the internal revenue laws.”
“Federal income tax compliance should be equally shared among all of the roughly 9.5 million Chicagoland residents,” said Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS-CI will continue focusing investigative efforts on individuals who contribute to the tax gap and do not comply with the law. With the filing deadline approaching, Chicagoans who might be thinking about cheating should think twice or risk the consequences.”
In an indictment returned last month, a federal grand jury charged JOHN OCWIEJA, 49, of Chicago, with six counts of willfully failing to file an income tax return. Ocwieja allegedly failed to file individual returns for the calendar years 2011 through 2016. Ocwieja has pleaded not guilty to the charges. A status hearing is set for May 9, 2018, before U.S. Magistrate Judge M. David Weisman. The government in Ocwieja’s case is represented by Assistant U.S. Attorney Andrianna Kastanek.
In another tax prosecution, professional tax preparer ANNA PLATOS, 58, of Hickory Hills, is charged with 19 counts of preparing and filing false and fraudulent income tax returns, and one count of obstructing the IRS. Platos, who owned Chicago-based Midway Accounting, filed the returns on behalf of numerous individuals for the tax years 2011 and 2012, according to the indictment. The returns claimed false tax deductions for car and truck expenditures, medical expenses, charitable gifts, and educational expenses, the indictment states. Platos has pleaded not guilty to the charges. A status hearing is set for May 8, 2018, before U.S. District Judge Amy J. St. Eve. The government in Platos’s case is represented by Assistant U.S. Attorney James P. Durkin.
The other professional tax preparer recently charged is IRVING BROWN SR., 69, of Chicago, who operated Irving Brown Sr. Tax Services. According to the indictment, Brown understated his own taxable income for the tax years 2011 and 2012, and he filed returns for taxpayers that he knew to contain false business losses. Brown also allegedly obstructed an IRS audit by fabricating documents and causing a taxpayer to submit them to the IRS. He is charged with two counts of subscribing a false tax return, twelve counts of aiding and abetting the filing of a false tax return, and one count of interfering with the administration of internal revenue laws. Brown has pleaded not guilty to the charges. A status hearing is set for May 9, 2018, before U.S. District Judge Robert W. Gettleman. The government in Brown’s case is represented by Assistant U.S. Attorney Andrew Erskine.
The U.S. Attorney’s Office also recently charged TARA D. SMITH, of Charlotte, N.C., with one count of willfully filing a false income tax return on her own behalf. Smith pleaded guilty to the charge earlier this week. In a plea agreement, Smith admitted that for the calendar year 2014, she filed a return that falsely claimed her total income was approximately $18,260, when she knew that her total income substantially exceeded that amount. Smith’s sentencing is set for July 20, 2018, before U.S. District Judge Sara L. Ellis. The government in Smith’s case is represented by Assistant U.S. Attorney Erika L. Csicsila. The City of Chicago Inspector General’s Office assisted in the Smith investigation.
A criminal information filed this month charges MICHAEL CIELAK, 54, of Chicago, with filing false tax returns. The charges allege that Cielak operated a business that generated scrap metal, and that he failed to report the income he received from the sale of scrap. Cielak will be arraigned on April 17, 2018, before U.S. Magistrate Judge Daniel G. Martin. The government in Cielak’s case is represented by Assistant U.S. Attorney Patrick King.
Earlier this month, the U.S. Attorney’s Office charged BARRY POTICHA, 73, of Northbrook, with scheming to impede the IRS. According to the charges, Poticha worked as the office manager and bookkeeper for two Chicago-area staffing companies. From 2000 through 2010, Poticha allegedly prepared and filed fraudulent tax returns to avoid the payment of employment taxes owed by the companies. Poticha will be arraigned on April 16, 2018, before U.S. District Judge Gary Feinerman. The government in Poticha’s case is represented by Assistant U.S. Attorney Kathryn E. Malizia.
A federal grand jury earlier this month indicted LATASHA MOSS, 30, of Cicero, with theft of government funds in relation to the theft of federal income tax refunds issued for returns filed in the name of other individuals. Moss will be arraigned on April 12, 2018, before U.S. Magistrate Judge Jeffrey T. Gilbert. The government in Moss’s case is represented by Assistant U.S. Attorney Sean K. Driscoll.
The public is reminded that charges are not evidence of guilt. The defendants with pending charges are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website: https://www.irs.gov/help-resources.
FARC Members and Associates Charged with Conspiring to Import Cocaine into the United StatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jesse Garcia, Assistant Andean Regional Director of the U.S. Drug Enforcement Administration (“DEA”), announced today that four members and associates of the Revolutionary Armed Forces of Colombia (the “FARC”)—SEUXIS PAUCIS HERNANDEZ-SOLARTE, a/k/a “Jesus Santrich,” MARLON MARIN, ARMANDO GOMEZ, a/k/a “El Doctor,” and FABIO SIMON YOUNES ARBOLEDA—were arrested yesterday in Colombia for conspiring and attempting to import cocaine into the United States. The United States is seeking the defendants’ extradition from Colombia.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants conspired to ship thousands of kilograms of cocaine from Colombia to the streets of the U.S. Thanks to the investigative work of the DEA, they are now under arrest and face significant criminal charges.”
Assistant Regional Director Jesse Garcia said: “This significant enforcement operation demonstrates that there remains within the Government of Colombia willing partners, determined to support the United States and DEA’s counter drug mission in Colombia, who are also willing to pursue justice no matter where the investigations lead. This investigation was heavily supported by DEA’s Sensitive Investigative Unit (SIU) program and Colombian Attorney General Nestor Humberto Martinez.”
As alleged in the Indictment unsealed in federal court:[1]
From June 2017 up to April 2018, HERNANDEZ-SOLARTE, MARIN, GOMEZ, and YOUNES ARBOLEDA worked together to produce and distribute approximately 10,000 kilograms of cocaine from Colombia to the United States and elsewhere. During this time, the defendants were members and associates of the FARC. HERNANDEZ-SOLARTE was a high-ranking member of the FARC leadership and a candidate to be seated in Colombia’s House of Representatives. During the course of their cocaine trafficking, HERNANDEZ-SOLARTE, MARIN, GOMEZ, and YOUNES ARBOLEDA represented that they had access to laboratories to supply the cocaine and to U.S.-registered airplanes to transport the drugs within and through Colombia. The defendants also supplied kilograms of cocaine to others as, among other things, a demonstration of their access to ton quantities of cocaine.
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The Indictment charges HERNANDEZ-SOLARTE, 51, MARIN, 39, GOMEZ, 70, and YOUNES ARBOLEDA, 72, all of Colombia, with one count of conspiring to import cocaine into the United States, and two counts of attempting to import cocaine into the United States. If convicted, the defendants face a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on each count.
Mr. Berman praised the outstanding efforts of the DEA’s Sensitive Investigation Unit, Bogota Country Office, and Miami Field Office, as well as the U.S. Department of Justice’s Office of International Affairs. He also thanked the Criminal Division’s Narcotics and Dangerous Drugs Section Judicial Attaches in Colombia, who provided substantial assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Matthew J. Laroche and Jason A. Richman are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. The potential mandatory minimum and maximum sentence in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Essex County, New Jersey, Man Admits Defrauding Customers, Stealing Their Credit Card InformationRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted failing to deliver goods his business sold to customers, stealing his customers’ credit card information and falsely claiming that purchases on his own account were fraudulent, U.S. Attorney Craig Carpenito announced.
Scott Spina Jr., 20, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Spina was in the business of selling high-end items, including sneakers, to customers that included professional athletes. Spina contracted with parties to provide high-end goods and collected payment for them, but failed to deliver the goods. He also made personal purchases using credit card information provided by his customers and others without their authorization. Spina also contacted his credit card company and falsely claimed that numerous purchases on his account were fraudulent. He admitted he obtained or sought to obtain more than $550,000 in money or goods.
The wire fraud charge carries a maximum penalty of 20 years in prison, and a fine of $250,000, or twice the gross gain to the defendant or twice the gross loss to others, whichever is greater. Sentencing is scheduled for July 23, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation leading to today’s guilty plea. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the East Hanover Police Department, under the direction of Chief Christopher F. Cannizzo; and the West Orange Police Department, under the direction of Chief James P. Abbott, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Vincent Scoca Esq., Bloomfield, New Jersey
East Stroudsburg Man Sentenced to 9 Months’ Imprisonment for Stealing Deceased Mother’s Social Security BenefitsRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 6, 2018, United States District Court Judge A. Richard Caputo sentenced Steven M. Caravella, age 28, who formerly resided in East Stroudsburg, Pennsylvania, to a time-served sentence of approximately nine months’ imprisonment and two years of supervised release for stealing social security benefits paid to his mother by the Social Security Administration.
According to United States Attorney David J. Freed, Caravella used a government-issued debit card to obtain the social security benefits for approximately one year after his mother’s death, and before the Social Security Administration was advised of her death. Caravella obtained approximately $7,762 in benefits between August 2012 and July 2013, as a result of the theft.
The case was investigated by the Social Security Administration’s Office of the Inspector General. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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East Hills Man Charged with Distributing Heroin and FentanylRead the Press Release
PITTSBURGH, Pa. – One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named Tory Bryant, 31, as the sole defendant.
According to indictment, on March 13, 2018, Bryant possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance, a quantity of fentanyl, a Schedule II controlled substance, and a quantity of crack cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Wilkinsburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dorchester Grocery Store Settles Allegations of Food Safety Law ViolationsRead the Press Release
BOSTON – A Dorchester grocery store – warned on four occasions since February 2014 by federal inspectors about food safety violations – has entered into a consent decree with the government pursuant to which it shall not violate food safety laws, and faces strict penalties if violations are found in the future.
Phu Cuong Enterprises LLC, a Dorchester grocery store, has entered into a consent decree that permanently enjoins it from violating the Federal Meat Inspection Act and the Poultry Products Inspection Act. The government filed its complaint after a series of USDA inspections of Phu Cuong Market showed that the defendant purchased and sold meat and poultry products that were not inspected by the Food Safety and Inspection Service of the United States Department of Agriculture (USDA), and that it failed to maintain appropriate business records concerning the purchases of these products. The proposed consent decree has been filed with the court and is awaiting judicial approval. Under the consent decree, USDA investigators will have broad access to Phu Cuong Market’s premises to inspect inventory and records, and the defendant will face significant monetary penalties for any further violations.
“The sale of uninspected meat and poultry products is a significant health risk to consumers,” said United States Attorney Andrew E. Lelling. “Through this consent decree, we hope to prevent this business from jeopardizing the health of future customers.”
“After numerous warnings, this company continued to put American families at risk,” said Paul Kiecker, Acting Administrator for Food Safety and Inspection Service of the U.S. Department of Agriculture. "This action shows that FSIS investigators are on the job protecting public health and will continue to do so.”
U.S. Attorney Lelling and Acting Administrator Kiecker made the announcement today. The case was handled by Assistant U.S. Attorney Steven Sharobem of Lelling’s Civil Division.
Detroit One Collaboration Leads to Guilty Plea of Latin Counts Gang Member for Racketeering ConspiracyRead the Press Release
The Detroit One collaboration of local, state, and federal law enforcement has led to the twelfth and final guilty plea of a Latin Counts street gang member for racketeering conspiracy involving murder and attempted robbery, U.S. Attorney Matthew Schneider announced today.
Defendant Kyle Voltz, 28, of Lincoln Park, pleaded guilty to racketeering conspiracy in federal court in Ann Arbor before U.S. District Judge Judith Levy. Voltz faces 30 years in prison.
According to the racketeering indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleged that the Latin Counts committed murders, assaults, trafficking in drugs and stolen firearms, robberies, and breaking and entering homes and businesses. The indictment alleged that the gang used violence to stake out its “turf” and to intimidate both rival gang members and the citizens of southwest Detroit.
As part of his guilty plea, Voltz took responsibility for participating in the killing of Terrence McClearen and the shooting of another victim on August 18, 2013, and for assaulting and attempting to rob a different victim on April 29, 2014. Three other Latin Counts gang members have already been sentenced for their roles in the murder of McClearen.
Recently the head of the Latin Counts in Michigan, Isidro Garza, was sentenced in federal court to 10 years in prison for leading the gang while incarcerated in the Michigan Department of Corrections, where he was serving 25-50 years for a 1993 gang related homicide.
On January 29, 2018, Benjamin Beightol also pleaded guilty to racketeering conspiracy. He faces 10 years in prison. As the “Minister of Information,” Beightol was responsible for leading the Latin Counts and disseminating Garza’s directions and messages to lower ranking Latin Counts gang members.
Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and the FBI Violent Gangs Task Force, which consists of representatives of Homeland Security Investigations, Detroit Police Department, Lincoln Park Police Department, Michigan Department of Corrections, and Michigan State Police, investigators were able to merge separate probes of various members of this organization and its activities into one encompassing investigation.
“The Detroit One partners are systematically and aggressively prosecuting the street gangs that cause violent crime in our neighborhoods,” Schneider said. “Detroit is a safer place when violent gang members are off our streets and behind bars.”
"The significant arrests and prosecutions made by Detroit One make certain that the citizens of Detroit and the region can once again start to feel safe in their communities" said Chief James Craig. "We will maintain our focus and remain stead-fast in our pledge to bringing swift justice to all those who commit violent acts against our city."
“The Detroit One’s unified approach to investigating violent street gangs such as the Latin Counts, exemplifies our ongoing commitment to rid our communities of these violent criminals”, said Timothy R. Slater, Special Agent in Charge, FBI Detroit
“This investigation highlights the effectiveness of the Detroit ONE initiative in bringing to justice street gangs whose pervasive criminal acts significantly diminish the quality of life in our communities," said Steve Francis, special agent in charge of HSI Detroit. "HSI will continue to aggressively target those responsible from contaminating our communities with a broad range of criminal activity."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicides and other violent crimes in Detroit. By working together, local, state, and federal law enforcement agencies strive to maximize their ability to identify and arrest individuals and groups initiating violence in Detroit. Since its launch in 2013, homicides are down 30% and non-fatal shootings are down 45%, when comparing the homicide and shooting totals from 2012 to the totals in 2017.
The case is being prosecuted by Assistant United States Attorneys Matthew Roth, Andrea Hutting, and Louis Crisostomo.
Denver Man Sentenced to Prison for Child PornographyRead the Press Release
DENVER – Andrew Workman, age 26 of Lone Tree, Colorado was sentenced today by the Hon. R. Brooke Jackson in U.S. District Court to 97 months of imprisonment, followed by five years of supervised release. He will also have to register as a sex offender. Workman was indicted by a Grand Jury in October, 2015, for receipt and possession of child pornography.
According to court filings and hearings, Workman was a member of a child pornography board called “Playpen” that was hidden on the dark web via the Tor network. The FBI obtained approval from a federal court in the Eastern District of Virginia to deploy a Network Investigative Technique (NIT) to pierce through the anonymity provided by the Tor network and obtain IP addresses for the users of the website, including Workman. Using the IP address information, the FBI obtained a search warrant for Workman’s house in Colorado. When agents arrived to execute the search warrant, Workman was in the act of downloading child pornography video files onto his computer using peer to peer software. An exam of his computer showed that Workman was in possession of over 1,200 images and videos of child pornography, many of which showed toddlers and babies suffering violent sexual abuse.
In June 2016, Workman moved to suppress the evidence against him and challenged the legality of the search warrants. In September 2016, the District Court granted the motions and suppressed the evidence. The United States appealed the ruling. In July 2017, the United States Court of Appeals for the Tenth Circuit reversed. On November 3, 2017, Workman pleaded guilty to one count of receipt of child pornography.
“Workman robbed children of their innocence. Today he pays with years of his life,” said United States Attorney Bob Troyer. “Prosecutors in my office, together with our law enforcement partners, are working right now to take offenders like Workman out of the darkness, and put them behind bars. Our children deserve no less.”
“Combating the exploitation and victimization of children is one of the FBI’s top priorities,” said FBI Denver Special Agent in Charge, Calvin Shivers. “Today’s sentence demonstrates those who prey on children will be prosecuted to the fullest extent of the law.”
The case was investigated by the FBI Denver and the Denver Police Department. Assistant United States Attorneys David Tonini and Judith A. Smith, Chief of the Cybercrime and National Security Section, represented the United States in the District Court. Attorney John P. Taddei of the Department of Justice’s Criminal Division, Appellate Section, handled the appeal.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Cypriot National Pleads Guilty to Money LaunderingRead the Press Release
A Cypriot national pleaded guilty today in federal court in Boston, Massachusetts to money laundering.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration’s (DEA) New England Division; Special Agent in Charge Harold H. Shaw of the FBI Boston Field Division and Special Agent in Charge Kristina O’Connell of the Internal Revenue Service Criminal Investigation (IRS-CI) in Boston, made the announcement.
Esam Sakkal, 40, a national of Cyprus, pleaded guilty to one count of money laundering conspiracy and two counts of laundering of monetary instruments. U.S. District Court Judge Rya W. Zobel scheduled sentencing for July 10. In June 2017, Sakkal and his brother, Nabeel Sakkal, aka Traycho Marinov Mitchov, Nabil Cieckal and Nabil Imadein Bazul Siggal, a dual national of Cyprus and Jordan, were indicted. Nabeel Sakkal remains a fugitive.
At the plea hearing, Sakkal admitted his role in the charged criminal conduct, including that he advised his brother regarding methods to transport cash obtained from an undercover agent and that he attempted to launder money from drug sales when he met with an undercover agent in Warsaw, Poland. Sakkal further admitted that he agreed to obtain money from the undercover agent, and agreed to cause the money to be wired to the United States.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by DEA New England Division, FBI Boston and IRS-CI Boston. Assistant U.S. Attorney Linda Ricci, Chief of Lelling’s Narcotics and Money Laundering Unit, and Trial Attorney Randall Warden of the Justice Department’s Money Laundering and Asset Recovery Section, are prosecuting the case. The Criminal Division’s Office of International Affairs also provided significant assistance.
Cypriot National Pleads Guilty to Money LaunderingRead the Press Release
BOSTON – A Cypriot national pleaded guilty today in federal court in Boston to money laundering.
Esam Sakkal, 40, a national of Cyprus, pleaded guilty to one count of money laundering conspiracy and two counts of laundering of monetary instruments. U.S. District Court Judge Rya W. Zobel scheduled sentencing for July 10, 2018. In June 2017, Sakkal and his brother, Nabeel Sakkal, a/k/a Traycho Marinov Mitchov, a/k/a Nabil Cieckal, a/k/a Nabil Imadein Bazul Siggal, a dual national of Cyprus and Jordan, were indicted. Nabeel Sakkal remains a fugitive.
According to court documents, on numerous occasions between 2009 and 2014, the Sakkals met with a United States undercover law enforcement agent posing as a member of a drug organization whose role it was to launder money from drug sales. According to court documents, the Sakkals laundered money given to them by the undercover agent, believing the money to be proceeds from drug sales.
The charges of conspiracy to commit money laundering and laundering monetary instruments provide for a sentence, as to each count, of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Linda Ricci, Chief of Lelling’s Narcotics and Money Laundering Unit, and Trial Attorney Randall Warden of the Justice Department’s Money Laundering and Asset Recovery Section, are prosecuting the case.
Crime Victims' Rights and Resources Awareness EventRead the Press Release
Crime Victims’ Rights and Resources Awareness Event on Wednesday, April 11, 2018, beginning at 9:55a.m. WHAT: The United States Attorney’s Office and the Office of the Tulsa County District Attorney will present this inaugural event. The event will honor crime victims and provide community resources to aid in their healing and quest for justice. WHO: Deputy Mayor Michael Junk
United States Attorney Trent Shores
Tulsa Police Chief Chuck Jordan Tulsa
County Sheriff Vic Regalado Tulsa
County District Attorney Steve Kunzweiler
One Fire (Cherokee Nation) Director Nikki Maker Limore
Muskogee/Creek Nation Program Director Shawn Partridge
Crime Victim survivor of the OSU Homecoming Parade tragedy
20 local service agencies will be present.
Oklahoma Blood Institute will be on site for donations of blood in honor of crime victims. WHEN: April 11, 2018, 9:55 a.m. to 2:00 p.m. CDT WHERE: County Courthouse Plaza, 500 S. Denver St., Tulsa, Oklahoma 74103Crestview Man Sentenced to 120 Months in Prison for Possessing Firearms and DrugsRead the Press Release
PENSACOLA, FLORIDA – Terrell Jerome Cochran, 42, of Crestview, Florida, was sentenced yesterday to serve 120 months in prison after pleading guilty on October 4, 2017, to possession with intent to distribute more than 50 grams of a mixture and substance containing methamphetamine, and possession of firearms and ammunition by a convicted felon. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2017, in response to a residential alarm, deputies met with Cochran, a previously convicted felon, outside his residence. While speaking with Cochran, deputies noticed a strong marijuana odor coming from inside. Investigators then obtained and executed a search warrant on Cochran’s residence. During the search, investigators located and seized a FA Cugir 7.62x39 millimeter rifle, a Ruger 9 millimeter pistol, 136.7 grams of a mixture and substance containing methamphetamine, and a small amount of marijuana and cocaine from inside the residence. The rifle was loaded with an extended magazine containing 30 rounds of ammunition, and the pistol was loaded with six rounds of ammunition.
The case resulted from the investigation by the Okaloosa County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney J. Ryan Love.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Christopher Cook Sentenced to 212 Months for Being Armed Career Criminal Unlawfully in Possession of Firearm in Jan. 2015, when he Shot an Albuquerque Police OfficerRead the Press Release
ALBUQUERQUE – Christopher Cook, 40, of Albuquerque, N.M., was sentenced this morning in U.S. District Court in Santa Fe, N.M., to 212 months in prison for being an armed career criminal unlawfully in possession of a firearm and ammunition on Jan. 3, 2015, the day he shot and seriously injured Officer Lou Golson of the Albuquerque Police Department (APD). Cook will be on supervised release for three years after completing his prison sentence.
The sentence was announced by U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief of Police Michael Geier of the Albuquerque Police Department (APD).
Cook previously pled guilty in the Second Judicial District Court for the State of New Mexico to state charges arising from the Jan. 3, 2015, shooting of Officer Golson, including shooting at or from a motor vehicle (great bodily harm), aggravated battery on a police officer and receiving or transferring a motor vehicle. Cook was sentenced on the state charges on July 10, 2016, to 20 years in state custody.
Cook’s convictions on both federal and state charges were the result of a collaborative investigative effort involving the U.S. Attorney’s Office, Second Judicial District Attorney’s Office, ATF, FBI, U.S. Marshals Service, APD, Bernalillo County Sheriff’s Office, and New Mexico State Police.
Cook initially was charged with being a felon in possession of a firearm in a criminal complaint filed by ATF on Jan. 6, 2015. The criminal complaint alleged that Cook unlawfully possessed a firearm and ammunition on Jan. 3, 2015, when Cook shot APD Officer Golson during a traffic stop in Bernalillo County, N.M. On March 10, 2015, Cook was indicted on that same charge. According to court records, Cook was prohibited from possessing either firearms or ammunition on Jan. 3, 2015, because he previously has been convicted of at least eleven felony offenses, including two involving attempted aggravated assaults on peace officers.
On Sept. 9, 2016, Cook entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, the U.S. Marshals Service, the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico State Police with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
Cook is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of removing them from communities in New Mexico for as long as possible.
Charleston Woman Pleads Guilty to Meth Distribution ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman entered a guilty plea today to a federal drug trafficking crime, announced United States Attorney Mike Stuart. Baylee Gibson, age 19, of Bench Road, pled guilty to distribution of 5 grams or more of methamphetamine.
Stuart praised the work of the Metropolitan Drug Enforcement Network Team (MDENT).
“It’s always tragic when young people make bad choices that forever alter the course of their lives,” said United States Attorney Stuart. “Becoming a drug dealer is one of the worst choices anyone could make and, as a result, this defendant will be spending much of her young adulthood in federal prison.”
On August 25, 2017, an agent with MDENT arranged to meet Gibson and purchase one ounce of methamphetamine for $1200. The agent had spoken to Gibson on the telephone and had arranged the price and quantity.. Gibson told the agent to meet her at a parking lot just off the campus of West Virginia State University (WVSU) on Baron Drive in Institute. This was the site of a previous methamphetamine sale by Gibson. The agent met Gibson as planned. After a brief discussion, Gibson took $1200.00 of prerecorded buy money, got out of the agent' s car and walked towards the campus of WVSU. Additional MDENT agents were positioned around the campus conducting surveillance. Gibson then met with another individual, later identified as her co defendant, Kyle Keith Russell, and returned to the agent's car. There, Gibson provided the agent with a clear plastic bag with a substance that field tested positive as methamphetamine. The substance was sent to the Mid-Atlantic DEA laboratory where it was tested. The testing showed the substance was 23.39 grams of pure methamphetamine. Gibson arranged and sold methamphetamine to the same undercover agent on August 22, 2017, and twice on August 30, 2017. The agent arranged all three of those additional sales directly with Gibson. Those sales took place in the same manner and at the same location as the count of conviction. Kyle Keith Russell was Gibson’s source of supply for those sales. Russell’s jury trial is scheduled for May 15, 2018.
Gibson faces up to 40 years imprisonment and up to a $5 million fine when she is sentenced on July 10, 2018. United States District Court Judge John T. Copenhaver presided over the plea hearing. Assistant United States Attorney R. Gregory McVey handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Buffalo Man Pleads Guilty to Production of Child PornographyRead 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 Michael Milton, Sr., 42, of Buffalo, NY pleaded guilty to production of child pornography, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum of 30 years, and a fine of $250,000.
Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that on August 14, 2015, the defendant coerced a 17 year-old minor (Victim 1) to engage in sexual intercourse and oral sexual activity inside a 2003 Chevrolet Tahoe vehicle that Milton owned at the time. The defendant also produced visual depictions of the sexual activity using a cellular telephone which were then were stored a hard drive. The investigation determined that Milton engaged in sexual contact with Victim 1 on various occasions between at least December 21, 2014, and November 6, 2015. During that sexual contact, the defendant used his cellular telephone and a camera to create images and videos of Victim 1 engaging in sexually explicit conduct which he stored on different electronic storage devices.
Milton was previously convicted of Rape in Erie County Court involving Victim 1 and another minor female.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge, Kevin P. Lyons, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for July 12, 2018, at 2:30 p.m. before Judge Geraci.
Brothers Sentenced for Roles in Vegas-to-Columbus Oxy RingRead the Press Release
COLUMBUS, Ohio – Two Columbus brothers were sentenced in U.S. District Court for their roles in leading a narcotics trafficking conspiracy. Marcus L. Pryor, 38, was sentenced to 140 months in prison and Marquis L. Pryor, 26, was sentenced to 93 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, the two brothers had been diverting oxycodone pills from the Las Vegas area to Columbus since at least 2012. Law enforcement officials seized numerous U.S. mail packages containing thousands of oxycodone pills and large amounts of cash being sent between Las Vegas and Columbus in connection with this drug trafficking organization.
Agents made additional seizures connected to the defendants at airports and during traffic stops. For example, law enforcement seized 771 pills from Marquis Pryor in June 2016 and a mail parcel addressed to Marquis Pryor containing more than $17,000 in drug proceeds in June 2015.
Airline records show Marcus Pryor traveled between Las Vegas and Columbus no less than 30 times between 2012 and 2017. Similarly, Marquis Pryor took at least 20 flights between the two cities.
The co-conspirators also engaged in financial transactions – making use of wire transfers, bank accounts, and prepaid debit cards – involving hundreds of thousands of dollars to conceal the nature and source of their profits and promote the drug trafficking organization’s activities. Money was used to purchase airline tickets, pay for hotel rooms and cover other costs associated with bringing the drugs to Columbus for distribution.
The Pryor brothers were indicted by a grand jury in June 2017. In August 2017, each defendant pleaded guilty to one count of conspiracy to possess with intent to distribute oxycodone and one count of conspiracy to commit money laundering.
“Marcus and Marquis Pryor orchestrated a significant opioid distribution ring in the Columbus area,” U.S. Attorney Glassman said. “The organization distributed hundreds of thousands of oxycodone pills in our district and laundered in excess of one million dollars. Thanks to cooperative law enforcement efforts from a number of agencies, that operation is now dismantled.”
Marcus and Marquis Pryor also enlisted other co-conspirators to further the drug trafficking organization’s goals by, for example, sending and receiving parcels containing Oxycodone pills or drug proceeds and transporting pills or cash on their persons.
In October 2017, Maisha Caples and Michael Griffin were each sentenced for the same drug distribution and money laundering conspiracy crimes as the Pryors. Caples was sentenced to 45 months in prison and Griffin was sentenced to 80 months in prison.
U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS Criminal Investigation, USPIS and Ohio Bureau of Criminal Investigation, as well as Assistant United States Attorney Brian J. Martinez, who is representing the United States in this case.
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Brookville Man Sentenced to 13 Years in Prison for Receiving Child Pornography through AppRead the Press Release
DAYTON – Zachery Van Meter, 21, of Brookville, Ohio, was sentenced in U.S. District Court to 156 months in prison for receiving child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Preble County Sheriff Michael L. Simpson and Perry Township Police Chief Bob Bowman announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, Van Meter created a Kik messenger app account in July 2016. From then until February 2017, Van Meter used Kik to receive images of child pornography from others and to communicate with others about the sexual exploitation of children.
During the course of these conversations, Van Meter took at least 15 photographs of clothed juveniles who were known to the defendant and sent these photographs to others in an effort to receive more child pornography files.
Van Meter received at least 30 sexually explicit photographs of children, including at least one that portrayed sadistic and/or masochistic conduct involving the binding of a child’s arms and legs by black material to a hook on the floor. Based on his conduct, Van Meter received a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors.
Van Meter pleaded guilty in November 2017.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Preble County Sheriff’s Office and Perry Township Police Department, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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British Lawyer Found Guilty After Trial for His Participation in Multimillion-Dollar Tax Fraud Scheme Involving Swiss Bank AccountsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a federal jury today found MICHAEL LITTLE guilty of charges that he participated in an 11-year tax fraud scheme in which he advised and helped an American family to defraud the Internal Revenue Service by hiding approximately $14 million in overseas Swiss bank accounts and by other means, failed to file his own personal tax returns, and assisted in the filing of false tax returns. The three-week-long trial took place before U.S. District Judge P. Kevin Castel, who is scheduled to sentence LITTLE on September 6, 2018.
U.S. Attorney Geoffrey S. Berman stated: “Michael Little assisted an American family in evading taxes on $14 million in undeclared offshore inheritance money. Over the course of a decade, he helped the family illegally funnel millions of dollars of that inheritance from Swiss bank accounts into the United States, in order to avoid IRS detection. Especially at this time of year, this case serves as a reminder that failure to pay one’s fair share of taxes can result in a felony conviction.”
According to the allegations contained in the Complaint, Indictment, and the evidence presented in Court during the trial:
LITTLE, a British attorney who resides in England and is licensed to practice law in New York, was a business associate of the patriarch of the Seggerman family, an American family residing in the United States. In August 2001, after the patriarch died, LITTLE and a lawyer from Switzerland (the “Swiss Lawyer”) met with his widow and adult children at a hotel in Manhattan, and advised them that the patriarch had left them approximately $14 million in overseas accounts that had never been declared to U.S. taxing authorities. LITTLE and the Swiss lawyer also advised the various family members on steps they could take to continue hiding these assets from the IRS. In particular, LITTLE discussed with the family members various methods by which they could bring the money into the United States from the Swiss accounts while evading detection by the IRS. Among other means, he advised family members that they could bring money back to the United States in small increments, or “little chunks,” through means such as traveler’s checks, or by disguising money transfers to the United States as being related to the sales of artwork or jewelry. Various members of the Seggerman family agreed to work together with LITTLE and the Swiss Lawyer to repatriate the offshore funds.
In accordance with the plan he orchestrated, LITTLE assisted in opening an undeclared Swiss account for the purpose of holding and hiding the widow’s inheritance funds. LITTLE also enlisted the assistance of a New Jersey accountant to prepare false and fraudulent tax returns and to keep falsified accounting records for a corporate entity in the United States, controlled by the widow and used to receive inheritance funds repatriated from the Swiss account. Between 2001 and 2010, LITTLE caused over $3 million to be sent surreptitiously from the undeclared Swiss account to the United States corporate entity for the widow’s benefit. LITTLE also worked with the New Jersey accountant to establish a sham mortgage that allowed another Seggerman family member to access approximately $600,000 of undeclared inheritance funds held in a Swiss account.
In or about 2010, LITTLE became aware of an IRS criminal investigation into the scheme. In an attempt to cover up his involvement, LITTLE communicated with a tax attorney and the accounting firm that had prepared the widow’s individual tax returns. LITTLE provided false information to the tax lawyer and the accounting firm about the nature of the transfers from the Swiss account to the United States, claiming that the transfers represented “pure gifts” from a non-U.S. person who had “absolutely no relationship” to the widow. Based on LITTLE’s misrepresentations, the accounting firm filed inaccurate tax returns for the years 2001 through 2010, which categorized the transfers of over $3 million to the widow as foreign gifts.
LITTLE has been a lawful permanent resident of the United States, also known as a green card holder, since 1972. As a lawful permanent resident, he had an obligation to file annual tax returns reporting his worldwide income to the IRS. In or about 2005, LITTLE was admitted to the New York State Bar as an attorney. Between 2005 and at least late 2008, LITTLE resided full time in New York City, where he worked and earned hundreds of thousands of dollars of income as an attorney representing clients. During the period of 2001 to 2010, LITTLE also earned other legal fees, along with hundreds of thousands of dollars more in fees for his work on behalf of the Seggerman family. LITTLE failed to file any tax returns with the IRS between 2005 and 2010. He further failed to file, for years 2007 through 2010, annual Reports of Foreign Bank and Financial Accounts (“FBARs”) in connection with foreign bank accounts he controlled, which held in excess of $10,000 each year.
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LITTLE, 67, who resides in Hampshire, England, was convicted of obstructing and impeding the due administration of the internal revenue laws, failing to file personal income tax returns from 2005 to 2010, willfully failing to file reports of foreign bank and financial accounts, conspiracy to defraud the United States, and aiding and assisting the preparation of false tax returns. The failure to file personal income tax returns charges each carry a maximum sentence of one year in prison, the obstruction charge and the aiding and assisting the preparation of false tax returns charges each carry a maximum sentence of three years in prison, and the willful failure to file reports of foreign bank and financial accounts and conspiracy charges each carry a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the IRS. Mr. Berman also thanked the U.S. Department of Homeland Security, Office of Fraud Detection and National Security, United States Citizenship and Immigration Services, New York State Department of Taxation and Finance, and FinCEN for their substantial assistance in the investigation and trial.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher DiMase, Dina McLeod, and Andrew Dember are in charge of the prosecution.
Bristol, Virginia Man Sentenced on Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Bristol man, who maintained a residence used for drug distribution and at which two acts of violence occurred, was sentenced in U.S. District Court in Abingdon, United States Attorney Thomas T. Cullen announced.
John James Lapis, 40, was sentenced yesterday to imprisonment for a term of 42 months to be followed by supervised release for a term of 36 months. Lapis previously pleaded guilty to one count of maintaining a place for the distribution of controlled substances. At his guilty plea hearing, Lapis admitted to being a drug user who maintained a residence on Safari Drive in Bristol, Virginia for the purpose of allowing others to buy and sell controlled substances. In exchange for the use of the residence, Lapis received drugs for his own use.
Between January 2016 and June 2017, the Washington County Sheriff’s Office responded to over 50 complaints at the residence, including over 100 calls and texts concerning activity at the residence. These calls and texts included complaints of heavy traffic in and out of the residence. In response, law enforcement conducted traffic stops of vehicles leaving the Safari Drive location. During some of the stops, narcotics were found. During one attempted traffic stop, a driver did not follow the officers’ directions and a police chase took place. After apprehending the driver, officers found a large amount of methamphetamine and a firearm in the vehicle. In June 2017, a search warrant was executed at the residence, and a small amount of methamphetamine was found.
In October 2016, a drug trafficker was shot and killed at the residence. Through numerous interviews by law enforcement, it was determined that the victim was killed, at least in part, due to a drug debt. In February 2017, another shooting took place at the residence, again over a drug debt.
The investigation of the case was conducted by the Town of Abingdon Police Department, Bristol Police Department, Washington County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Boston Man Sentenced for Dealing FirearmsRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for dealing firearms.
Deon Young, 33, of Hyde Park, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. In January 2018, Young was convicted of one count of conspiracy to sell firearms without a license and one count of dealing in firearms without a federal license.
On Sept. 19, 2016, without being licensed to do so, Young and co-conspirator Troy Armstrong sold a Colt .45 caliber semi-automatic pistol to a cooperating witness working with federal law enforcement. On Oct. 4, 2016, Young and Armstrong again sold a firearm - a Hi-Point model, .45 caliber semi-automatic pistol - to the same cooperating witness. Both illegal transactions took place in the Bunker Hill Housing Authority neighborhood of Charlestown and were captured on covert surveillance cameras.
In September 2017, Armstrong was sentenced to three years in prison after pleading guilty to being a felon in possession of a firearm and ammunition.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorneys Lori Holik, Chief of Lelling’s Major Crimes Unit, and Nicholas Soivilien, also of the Major Crimes Unit, prosecuted the case.
Binghamton Man Enters Guilty Plea to Drug Trafficking and Gun PossessionRead the Press Release
BINGHAMTON, NEW YORK – Calvin Johnson, age 42, of Binghamton, entered a guilty plea yesterday to a two-count indictment charging him with conspiracy to possess with intent to distribute controlled substances, and possession of a firearm by a felon, announced United States Attorney Grant C. Jaquith, Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), City of Binghamton Police Chief Joseph Zikuski. and New York State Police Superintendent George P. Beach II. Johnson pled guilty as jury selection was about to begin in his trial in Syracuse, New York.
In pleading guilty to conspiracy to possess with intent to distribute and distribute controlled substances, Johnson admitted that from September of 2009 through March 26, 2014, he and co-conspirators Saquan Johnson, Courtney Douglas, Lamont Clemons, Leslie Hughes, and Gerald Norfleet, were members of a drug trafficking conspiracy that operated in Broome County, New York. The defendant and the others conspired to acquire cocaine base (crack cocaine), cocaine, marijuana, and heroin from New York City and then transported these to the Binghamton, New York area for storage and local distribution.
As part of his guilty plea, Johnson admitted that he personally distributed 2,000 grams of cocaine base (crack cocaine), 6 kilograms or more of cocaine, 1,500 kilograms or more of marihuana, and 200 grams or more of heroin. Johnson also pled guilty to possessing a Ruger 9mm Model P95 firearm with an obliterated serial number as a felon.
Sentencing is scheduled for August 16, 2018 in Syracuse. The parties have jointly recommend the Court impose a sentence of 420 months (35 years) imprisonment, and a 10-year term of supervised release.
This case was investigated by Federal Bureau of Investigation (FBI), New York State Police (NYSP), Binghamton Police Department, Broome County Sheriff’s Department, and the Johnson City Police Department. The matter is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Beaverton Man Sentenced for Impersonating U.S. Intelligence Official in Letter to Iraqi Prime MinisterRead the Press Release
PORTLAND, Ore. – Wathiq Al-Ibraheemi, 34, of Beaverton, Oregon, was sentenced today to two years of probation for the unauthorized use of an official insignia.
According to court documents, in November 2015, Al-Ibraheemi wrote a letter to the Prime Minister of Iraq, Haider al-Abadi, on false letterhead of the U.S. Office of the Director of National Intelligence (ODNI). In the letter, Al-Ibraheemi, using the alias William J. Peterson, urged the Iraqi Prime Minister to replace the director of the Iraqi National Intelligence Service. Al-Ibraheemi signed the letter as the Middle East Section Chief of ODNI’s Office of the Deputy Director for Intelligence Integration. The Office of the Inspector General of the Intelligence Community later confirmed for the FBI that the letter was a fraudulent document.
Al-Ibraheemi served as an interpreter for the U.S. Military in Iraq during Operation Iraqi Freedom. He immigrated to the U.S. in 2009 under the Significant Public Benefit Parole Program and was sponsored by a U.S. Army officer with whom he had served in Iraq. Al-Ibraheemi settled in Beaverton in 2012 and enrolled as an engineering student at Portland State University.
This case was investigated by the FBI and prosecuted by Craig Gabriel, Assistant U.S. Attorney for the District of Oregon.
Bandon Educational Assistant and Coach Pleads Guilty to Child Pornography ChargesRead the Press Release
MEDFORD, Ore. – On Monday, April 9, 2018, Sean Jeffrey Haga, 32, of Bandon, Oregon, pleaded guilty to one count of child sexual exploitation.
On June 17, 2016, Haga shared child pornography online using Kik Messenger with an undercover FBI task force officer. Haga told the undercover officer that he wanted to travel to have sex with the officer’s minor daughter and that he possessed photos of himself sexually abusing a minor victim. Haga sent multiple pictures depicting the abuse to the undercover officer.
The FBI worked through the night to identify the person associated with the online user ID, the location from which it was being used, and the identity of the resident at that location. Based on the information collected, FBI agents in the Medford Resident Agency were able to obtain search and arrests warrants. Haga was arrested on June 18, 2016 without incident.
Haga was formerly employed as an educational assistant, track coach and basketball coach in the Bandon School District.
Haga faces a maximum sentence of 30 years in prison, a $250,000 fine and a five-year term of supervised release. He is also subject to a 15-year mandatory minimum prison sentence. Haga will be sentenced on July 19, 2018 before U.S. District Court Judge Anne L. Aiken.
This case was investigated by the FBI and prosecuted by Amy Potter, Assistant U.S. Attorney for the District of Oregon.
BGF Member Sentenced to 258 Months in Prison for Racketeering Conspiracy and Shooting Outside NightclubRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge James K. Bredar sentenced Montel Harvey, a/k/a “Telly,” age 26, of Baltimore, Maryland, today to 21½ years in prison, followed by five years of supervised release for conspiring to participate in a racketeering enterprise known as the Black Guerilla Family’s Greenmount Avenue Regime. As part of his plea agreement, Harvey admitted that on June 8, 2013, he committed a non-fatal shooting outside a nightclub in downtown Baltimore. The Court found at sentencing that a total prison term of 25 years was appropriate, but adjusted the sentence downward to account for the fact that Harvey has served approximately three and a half years in prison in connection with a related state case.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Division; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Darryl DeSousa; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Harvey was a member of the BGF Greenmount Regime, formerly known as the Young Guerilla Family, or YGF. Between 2005 and 2016, Harvey agreed with other BGF members to engage in crimes to further the interest of the gang, including drug distribution, murder, robbery, witness tampering, and witness retaliation. Harvey admitted that he personally engaged in drug trafficking and attempted murder in furtherance of the BGF. Specifically, Harvey admitted to drug trafficking on four separate occasions between June 29, 2012, and July 6, 2013.
According to his plea agreement, on June 8, 2013, in the 300 block of West Fayette Street, Harvey shot a victim using a 9mm handgun. At the time of the shooting, the victim was engaged in a physical confrontation with BGF member Wesley Brown outside the Mirage nightclub, where Harvey and other BGF members had gathered to celebrate Brown’s birthday.
United States Attorney Robert K. Hur commended ATF Baltimore, FBI Baltimore, the Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys Peter J. Martinez and Christina A. Hoffman, who prosecuted the case.
Atlantic County Man Charged with Robbing Marlton BankRead the Press Release
CAMDEN, N.J. – A Brigantine, New Jersey, man appeared in federal court today to face allegations that he robbed a PNC Bank in Marlton, New Jersey, on Dec. 8, 2017, U.S. Attorney Craig Carpenito announced.
Matthew Burney, 43, is charged by complaint with one count of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.
According to the complaint:
On Dec 8, 2017, Burney, while wearing a mask that covered the lower part of his face, allegedly entered the PNC Bank in Marlton and threatened to shoot the occupants if they activated the alarm. He pointed what appeared to be semi-automatic handgun at one of the tellers, threatened to shoot her, and demanded all the money from her teller drawer. The teller gave Burney some cash. Burney then approached a second teller, demanded money from her, and then fled the bank after she gave him more cash. Burney was arrested on Dec. 15, 2017 and has been in state custody since that time.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI Trenton Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the Evesham, New Jersey, police department, under the direction of Chief Christopher Chew; the Bristol Township, Pennsylvania, police department, under the direction of Chief Robert Coulton, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Cofina, with the investigation.
The government is represented by Senior Litigation Counsel Norman Gross of the U.S. Attorney’s Office in Camden.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Trenton
Armed Career Criminal Sent to Prison on Firearms ChargeRead the Press Release
CORPUS CHRISTI, Texas - A local man has been ordered to federal prison following his conviction of illegal possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Adam Alfredo Flores, 36, of Corpus Christi, pleaded guilty Jan. 4, 2018, to felon in possession of a firearm.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Flores to 180 months imprisonment to be immediately followed by three years of supervised release. Flores had previously been convicted in state court for numerous felonies. In handing down the sentence today, the court determined him to be an armed career criminal.
In July 2017, officers with the Corpus Christi Police Department (CCPD) conducted a traffic stop on a vehicle for disregarding a stop sign. Flores was identified as the front seat passenger, at which time authorities discovered a loaded .22 caliber handgun underneath his seat. Flores, who had a previous felony conviction, is prohibited from possessing firearms and ammunition per federal law.
He was taken into custody as a part of Operation City Shield, a coordinated federal, state and local law enforcement effort to identify violent offenders, stop gun violence and protect the community.
In custody since his arrest, Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the CCPD conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Arizona Women Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
PHOENIX – Yesterday, U.S. District Judge G. Murray Snow sentenced Carlita Frances O’Neal, 43, of Phoenix, Ariz., to 13 months in federal prison, followed by three years of supervised release. O’Neal had previously pleaded guilty to making false a claim against the United States in connection with her filing of a false tax return. O’Neal’s co-defendant, Jeannine Lynn Clark, 58, of Florence, Ariz., was sentenced to eight months in federal prison, followed by three years of supervised release. Clark had also previously pleaded guilty to making a false claim in connection with her filing of a false tax return. Both women were ordered to pay restitution to the Internal Revenue Service.
Between 2011 and 2013, O’Neal and Clark prepared false tax returns for themselves and their acquaintances using made up income and withholding information, which enabled them to qualify for the Earned Income Tax Credit and increase the false tax refund claimed on the returns. Initially, Clark recruited individuals into the fraudulent scheme by claiming she could get them a large tax refund using only basic information such as their name, address, Social Security number, and date of birth. O’Neal then used the personally identifying information gathered by Clark to prepare fraudulent federal income tax returns and submit them to the IRS electronically. To increase the amount of the false tax refund, O’Neal used fictitious wage and withholding information for the taxpayers. O’Neal received a portion of each false tax refund and paid Clark a referral fee for each individual Clark recruited. O’Neal and Clark later stopped working together, but both of them continued preparing false tax returns on their own using the same fraudulent methods. In total, between 2011 and 2013, O’Neal and Clark prepared and filed approximately 75 fraudulent tax returns, which falsely claimed tax refunds totaling more than $300,000.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Bridget Minder, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00732-GMS
RELEASE NUMBER: 2018-034_O’Neal_Clark
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Acting Assistant Attorney General John P. Cronan Delivers Remarks at the 35th International Drug Enforcement ConferenceRead the Press Release
Remarks as prepared for delivery
It is a privilege to speak with you representing the U.S. Department of Justice. As the Acting Assistant Attorney General of the Department of Justice’s Criminal Division, I oversee approximately 700 attorneys spread across 17 sections and offices, mostly in Washington D.C., but also many stationed in offices around the world. Among other things, prosecutors in the Criminal Division investigate and prosecute transnational organized crime, large-scale international narcotics trafficking, international money laundering, and cyber-related crimes including the use of the dark web to engage in illegal activity. The Criminal Division also houses our Office of International Affairs, which handles all of our foreign legal assistance matters.
I am honored today to have the opportunity to speak with this assembly of proud, brave, and accomplished law enforcement officers. This is a critical conference, taking place at this critical time. Today more than ever, we must take stock of not only the successes we have achieved, but more importantly of the hard work that lies ahead of us, as we join together in the ongoing fight against international drug trafficking.
Our fight against drug cartels and transnational criminal organizations is the very definition of a fight that transcends borders. It is a shared fight. It is a fight against ever-evolving and innovating threats and methods. And it is a fight in which we as law enforcement collectively can, and must, do better.
The costs have never been higher. Today, in the United States, we are facing the deadliest drug crisis in our history. Approximately 64,000 Americans died from drug overdoses in 2016. That was the highest drug death toll – and the fastest increase in that death toll – in American history. One American dies of a drug overdose every nine minutes. Drug overdoses are now the leading cause of death for Americans under the age of 50.
These numbers are staggering, but their sheer scale can almost numb us to the reality of profound human loss that the drug crisis is causing. Each one of those deaths is a tragedy that reverberates through families and communities, multiplying its corrosive, debilitating effects. Effects that are borne by the dead, for sure, but also effects that are borne, perhaps more painfully, by the living whom they leave behind. These insidious effects are what make the scourge of opioids, including prescription drugs, heroin, and synthetic drugs like fentanyl, so dangerous and terrifying.
The traffickers who manufacture and distribute the destructive drugs that are ravaging our communities know precisely what they are doing, and they also are only too aware of our efforts to thwart them. That is why drug traffickers are forging underground marketplaces, exploiting the Internet and cryptocurrencies, and simultaneously challenging the stability and security of our financial institutions. Drug traffickers are moving money to the tune of hundreds of billions of dollars in ill-gotten profits. The task for those of us in law enforcement is to not only stanch the flow of drugs, but also the flow of illicit money.
Today, I want to talk about that specific problem: the flow of illicit money. Money is the lifeblood of any criminal organization, be it a pill mill, a transnational drug cartel, or a terrorist organization. Money is the very reason that criminal enterprises exist and persist. If we can map out, and stamp out, the financial networks through which the money is moving, we will go a long way in paralyzing these criminal organizations well before we have to endure, first-hand, the destructive effects of their poisons in our communities.
How do we stem the tide of illicit money?
First, we need to follow not just the money, but also the marketplaces. We need to stay one step ahead when it comes to identifying, regulating, tracking, and seizing the marketplaces that criminals are using for their illegal activities. In this day and age, sophisticated criminals are constantly forging and finding new platforms on which they can buy and sell, recruit, and launder. And naturally, markets that operate in the shadows, hidden from law enforcement, are those most appealing to criminals. We need to bring those shadowy markets into the light.
The so-called “dark web” is illustrative of this challenge. It is, by its nature, transnational. It relies on anonymity software that masks the true identities of visitors and their locations. It conceals IP addresses. And because of its hidden nature, the dark web is both a haven and a hub for some of the most prolific drug suppliers and criminal actors across the globe.
Dark web markets have been used to traffic in deadly drugs, illegal weapons, toxic chemicals, stolen identities, stolen credit cards, child pornography, and even people’s credentials for online accounts. With the click of a mouse, you can have synthetic opioids delivered right to your doorstep. And dark web markets have been used to launder hundreds of millions of dollars derived from illegal transactions. Illicit money flows are finding their way into new corners of the Internet each day.
The transnational economy of the dark web demands a transnational response. And we are delivering.
Working closely together with our international partners, we have shut down some of the worst offenders on the dark web. Last July, the U.S. Department of Justice executed the largest takedown of a dark web market in history when we seized AlphaBay. The AlphaBay site was the largest criminal marketplace on the Internet, at its peak hosting upwards of 40,000 vendors, 200,000 users, and 220,000 drug sale listings. We have tied purchases made on AlphaBay to multiple overdose deaths across the United States, including the tragic death of a 13-year-old boy whose classmate purchased a synthetic opioid on AlphaBay.
With the cooperation of Europol and our host country, the Netherlands, as well as our partners in Thailand, Lithuania, Canada, the United Kingdom, France, and Germany, we seized AlphaBay’s servers and infrastructure. We froze millions of dollars’ worth of cryptocurrencies that represented AlphaBay’s illicit proceeds. We arrested the site administrator in Thailand. And we are pursuing his and his wife’s assets throughout the world, from Thailand, Cyprus, and Lichtenstein to Antigua and Barbuda.
Shortly after the AlphaBay seizure, Dutch authorities, with support from Europol, took down the Hansa marketplace. Hansa was the third largest criminal marketplace on the dark web, also trading high volumes of illegal drugs and goods. The Hansa takedown also was a highly coordinated international operation – and it was an operation carefully designed to maximize impact by seizing and covertly taking over control of Hansa for about a month. This allowed law enforcement to monitor activities on the platform and collect valuable information on significant law enforcement targets who were using the market for criminal purposes.
In January of this year, U.S. Attorney General Jeff Sessions created the Joint Criminal Opioid Darknet Enforcement team, known as J-CODE. J-CODE reflects the United States’ recognition that a major driver of the increase in opioid overdose deaths is the growing black market trade of illicit fentanyl and fentanyl analogues on the Internet. J-CODE effectively doubles our investment in the fight against online drug trafficking on the dark web, dedicating dozens more FBI agents, intelligence analysts, and professional staff to this long-term effort. And J-CODE puts an emphasis on the need for international coordination and working with our overseas Drug Enforcement Administration and FBI offices to shut down the dark web markets peddling deadly drugs.
Just a few months into its creation, we already have seen successes from the work being done by the J-CODE team. Last week, the Attorney General announced initial results of Operation Disarray, which is the J-CODE’s first coordinated law enforcement operation targeting opioid trafficking on the dark web. During the week of March 27, U.S. law enforcement made eight arrests, conducted more than 160 interviews of people who had bought or sold opioids and other drugs online, identified 19 overdose deaths, and executed numerous search warrants, resulting in the seizure of weapons, drugs, and counterfeit currency.
Transnational criminals who wish to take advantage of the perceived secrecy of the dark web should beware: law enforcement is smart to your techniques, and we will labor tirelessly across borders, with the full support of our governments, to dismantle your operations.
Together, we are inflicting significant blows on dark web markets. And, if we continue to work collectively, we will do more. If we are to keep pace with illegal markets as they shift and grow and change platforms, we too will need to be nimble and adaptive.
We need to work together to follow the virtual money flows, while being vigilant as we monitor the ever-fluid landscape and features of cryptocurrencies. We need to ensure that we seize not just end products, but the markets themselves. We must target not just the market creator, but the creator’s assets, enablers, and financial network. The very features of markets on the dark web that make them so attractive to bad actors pose a challenge – but also an opportunity – for law enforcement to be smarter, probe deeper, and move faster.
How else can we stem the tide of illicit money?
We also need to aggressively combat money laundering, using all tools in our law enforcement toolbox – marrying traditional criminal prosecution with civil forfeiture, financial sanctions, and rigorous enforcement of compliance obligations on financial institutions.
As we all know, drug cartels are adept at filtering “dirty” money through various transactions until the funds appear to be “clean” proceeds from legitimate activities, rendering them available for use. This enables criminals to readily mask, move, and access their ill-gotten gains without jeopardizing their illegal activities. They do this through traditional money laundering methods, such as black market peso exchanges, cash couriers, and trade-based money laundering. But they also employ increasingly complex schemes – utilizing shell companies, or transfers through reputable financial institutions, lawyers, and other professionals that enshroud their illegal proceeds in a veneer of legitimacy.
At the U.S. Department of Justice, we seek to leverage the full panoply of tools at our disposal to combat the means and methods of money launderers. That, of course, includes criminal prosecutions of those who violate our money laundering laws.
One of our recent investigations, for example, targeted an alleged drug trafficking and money laundering organization largely based in Sinaloa, Mexico. Since at least 2012, the organization allegedly transported massive amounts of cocaine, heroin, and methamphetamine into the United States. But that was not all; the organization also allegedly smuggled their drug trafficking proceeds from the United States back into Mexico, laundering more than an estimated $100 million dollars. Some money allegedly was laundered through Mexican money exchange houses, while other money allegedly was deposited with U.S. banks and wire-transferred to Mexican accounts controlled by the organization.
Our prosecutors brought criminal charges against 15 defendants, including individuals responsible for the movement of the illicit proceeds. To date, eight of those defendants, including the owner of a currency exchange house in Sinaloa and a peso broker operating out of Sinaloa, have pleaded guilty and been sentenced to significant jail time.
But the law enforcement tools at our disposal are not limited to bringing criminal charges. Take, for example, the case of Jorge Cifuentes-Villa, who is facing criminal prosecution in the United States. Cifuentes-Villa led a drug trafficking and money laundering organization closely tied to the Sinaloa Cartel and he has been designated by the United States as a Consolidated Priority Organization Target, a designation reserved for the most dangerous and prolific narcotics traffickers.
In addition to the criminal charges against Cifuentes-Villa, our prosecutors also brought two multi-million dollar civil forfeiture actions against assets tied to Cifuentes-Villa’s drug trafficking activities. Meanwhile, the U.S. Department of Treasury levied financial sanctions against Cifuentes-Villa, identifying him as a Specially Designated Narcotics Trafficker, to effectively cut him off from transactions with any U.S. persons or businesses.
The path to civil forfeiture of Cifuentes-Villa’s assets began with a vehicle stop in 2009. A single money courier was found in possession of approximately $780,000 in drug proceeds. With that lead, investigators traced money through various companies’ bank accounts that were used to launder on the cartel’s behalf. They traced the money all the way back to transactions eight years before the vehicle stop. Investigators learned that in 2001, a shell company in the British Virgin Islands had received approximately $11 million in funds. And that $11 million subsequently was moved through eight brokerage accounts, before it finally landed in two accounts at Wells Fargo Advisors.
The tracing showed that the shell company had received the funds from yet another entity in the British Virgin Islands, an entity that was owned by a man who went by the name, Sergio Osuna-Villareal. We identified Sergio Osuna-Villareal as an alias of Jorge Cifuentes-Villa. The investigation revealed that Cifuentes-Villa had transferred more than $10 million in drug proceeds to the shell company as liquidation of the assets of his murdered drug partner. And in 2012, we sought forfeiture – successfully – of both the approximately $11 million from the Wells Fargo Advisors’ accounts and a $1.2 million condominium in Miami, Florida that we also traced to Cifuentes-Villa.
Those examples underscore the array of tools that we stand ready to deploy against money launderers for drug cartels. With the close cooperation of our international partners, we not only can bring wrongdoers to justice in our courts, but we also can trace where their money traveled and how and when. We can then reclaim their ill-gotten gains, block their assets, and prevent U.S. persons from dealing with them.
We also must be forward-leaning in holding accountable the enablers that move or legitimize the funds of drug traffickers. Just as cartels zero in on any weak link in the chain – by exploiting financial institutions with ineffective anti-money-laundering protocols – we too will continue to aggressively target financial institutions that turn a blind eye to the mass transit of illicit proceeds through their accounts.
To be sure, the examples I have mentioned over the past few minutes barely scratch the surface of the money flows that fuel and refuel the global drug trade. But as with the dark web, the very money laundering tactics that the criminals hope will throw us off should embolden us, focus us, and bring us together.
And it is by working together that we are able to most effectively target those illicit proceeds. Money laundering mechanisms are transnational by design. The painstaking work by our agents and prosecutors of mapping out those networks necessitates foreign wiretaps, foreign cooperating sources, and foreign law enforcement surveillance. It calls for timely sharing of international financial intelligence and prompt responses to mutual legal assistance requests. It requires foreign agents to authenticate photographs, wiretaps, and seizure evidence, and provide eyewitness testimony. On all these fronts and more, we can and must better synchronize our efforts.
Drug cartels count on our inability to connect the dots across borders and financial institutions. But with concerted international efforts to target illicit proceeds from every legal angle, we can more effectively connect those very dots and unravel the illicit networks driving the drug crisis.
Thank you, and I look forward to working with you all.
Accused Computer Hacker Returned to United States to Appear in U.S. CourtRead the Press Release
An accused computer hacker sought by the United States was recently returned to the United States to stand trial. On March 30, 2018, Yevgeniy Aleksandrovich Nikulin, 30, of Moscow, Russia, made his initial appearance in federal court, following his extradition from the Czech Republic. He was charged by the United States in 2016 with illegally accessing computers belonging to LinkedIn, Dropbox, and Formspring. Nikulin was arrested in October 2016, pursuant to a U.S.-issued INTERPOL Red Notice processed by INTERPOL Washington—the U.S. National Central Bureau. He had been in the custody of the Czech Republic since then. The United States submitted an official request to the Czech government for his extradition in November 2016. On March 29, 2018, the Minister of Justice of the Czech Republic ordered Nikulin extradited to the United States. Read more about the Federal case against Nikulin here:
The INTERPOL Red Notice
- Each INTERPOL member country maintains a National Central Bureau (NCB) staffed by its own highly trained law enforcement officials.
- An INTERPOL Red Notice is a request to locate and provisionally arrest an individual pending extradition. It is issued by the INTERPOL General Secretariat at the request of a member country’s NCB or an international tribunal based on a valid national arrest warrant. It is not an international arrest warrant.
- INTERPOL cannot compel any member country to arrest an individual who is the subject of a Red Notice. Each member country decides for itself what legal value to give a Red Notice within their borders.
- When INTERPOL publishes a Red Notice this is simply to inform all member countries that the person is wanted based on an arrest warrant or equivalent judicial decision issued by a country or an international tribunal. INTERPOL does not issue arrest warrants.
Monday 9 April 2018
Virginia Man Pleads Guilty to Producing Child Pornography Depicting Victims in the PhilippinesRead the Press Release
A Manassas, Virginia man pleaded guilty today to using the Internet to pay women to sexually abuse children as young as six years old in the Philippines while he produced numerous images of the abuse.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
According to court documents, from at least October 2011 until February 2012, Dwayne Stinson, 53, used an electronic payment service to pay women in the Philippines he was chatting with to sexually abuse children while he directed the abuse. He admitted that some of the children were as young as six or seven years old. The defendant contemporaneously produced numerous screenshot images of the abuse and stored them on his computer.
Stinson pleaded guilty to one count of production of child pornography before U.S. District Judge Liam O’Grady. His sentencing is scheduled for Aug. 24, 2018.
The Prince William County Police Department and Northern Virginia/District of Columbia Internet Crimes Against Children Task Force (NOVA/DC ICAC) assisted in the investigation. CEOS Trial Attorney James E. Burke IV and Assistant U.S. Attorney Whitney Russell for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Two Tennessee Health Care Executives Charged for Role in $4.6 Million Medicare Kickback SchemeRead the Press Release
Two Tennessee health care executives were charged in an indictment unsealed today for their alleged participation in a $4.6 million Medicare kickback scheme involving durable medical equipment (DME).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Director Mark Gwyn of the Tennessee Bureau of Investigation (TBI) Medicaid Fraud Control Unit made the announcement.
John Davis, 40, of Brentwood, Tennessee, and Brenda Montgomery, 69, of Camden, Tennessee, were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and seven counts of paying and receiving health care kickbacks. Davis is the former CEO of Comprehensive Pain Specialists (CPS), a large, multi-state pain management company. Montgomery is the owner, founder and CEO of CCC Medical Inc., a DME company with five locations in Tennessee and headquartered in Camden. Davis and Montgomery were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Alistair E. Newbern of the Middle District of Tennessee.
“The charges against John Davis and Brenda Montgomery, alleging almost three quarters of a million dollars in illegal health care kickbacks and the submission of over $4.6 million in fraudulent claims to Medicare, demonstrate the Department of Justice’s commitment to protect taxpayer dollars and to hold corporate executives accountable for fraudulent and abusive conduct,” said Acting Assistant Attorney General Cronan. “Kickbacks such as those alleged in the indictment distort markets and undermine public trust. The Criminal Division and our law enforcement partners will continue to root out fraud, waste and abuse in our health care programs, no matter how complex the schemes.”
“Our Medicare program is designed to help those who are most vulnerable and in need of medical services and equipment,” said U.S. Attorney Cochran. "Stealing funds from our health care system places the vulnerable at greater risk and diverts public funds into the pockets of the greedy individuals who exploit those with the greatest need. We will be un-relenting in our efforts to bring to justice, those individuals and corporations who choose to profit at the expense of the health of those individuals with the greatest need.”
“Kickback schemes like this one do not benefit patients or the Medicare program,” said Special Agent in Charge Jackson. “These arrangements are simply designed to line the pockets of the defendants at the expense of the taxpayer.”
“In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs,” said DCIS Special Agent in Charge Khin. “These defendants selfishly put greed and personal gain before the safety and well-being of our military members, their families, and retirees, who deserve the best medical care available.”
“Having the support and cooperation of our partner local, state and federal agencies is critical in our combined efforts to protect Tennesseans from individuals attempting to derive a personal benefit at the expense of patients and taxpayers,” said TBI Director Gwyn.
The indictment alleges that from at least June 2011 until at least June 2017, Montgomery agreed to pay Davis, the CEO of CPS, illegal kickbacks in exchange for Medicare referrals for DME ordered by CPS employees that Davis referred to CCC Medical. As alleged in the indictment, Montgomery agreed to pay Davis 60 percent of Medicare proceeds collected on claims billed for DME ordered by CPS providers and referred by Davis. In addition, the indictment alleges that Davis and Montgomery took a number of steps to conceal their illegal agreement, including making kickback payments through a nominee, creating and filing false tax documents, and, for Davis, intervening as CEO to prevent the owners of CPS from obtaining their own Medicare DME supplier numbers that would have allowed CPS to bill for its own Medicare DME orders.
Beginning in or around May 2015, according to the indictment, Davis and Montgomery renegotiated their illegal agreement to further obscure their personal contract from Medicare and from CPS owners and employees. The indictment alleges that from approximately May 2015 until approximately November 2015, Montgomery agreed to pay Davis $200,000 for the sham purchase of a shell entity known as ProMed Solutions LLC (ProMed). Davis and Montgomery renegotiated the sham transaction after Montgomery complained that her referrals from CPS had been lower than expected, and Montgomery ultimately paid $150,000 for the shell, ProMed, according to allegations in the indictment. The true purpose of this payment was to induce Davis to continue driving CPS referrals to CCC Medical, the indictment alleges.
The indictment alleges that Montgomery, through CCC Medical, submitted over $4.6 million in fraudulent claims to Medicare, and that Medicare paid a total of $2.6 million on those claims. Further, the indictment alleges that Montgomery paid more than $770,000 in illegal kickbacks to Davis.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by HHS-OIG, DCIS and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Trial Attorney Anthony Burba of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee and are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws throughout the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have collectively billed the Medicare program for over $12.5 billion.Twin Brothers Indicted for Being Felons in Possession of FirearmsRead the Press Release
BOSTON – Twin brothers from Hyannis were charged in federal court in Boston with being felons in possession of firearms and ammunition.
Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, both 25, were charged in an indictment unsealed today with one count each of being a felon in possession of firearms and ammunition. Denzel Smith was arrested today and appeared before U.S. District Court Magistrate Judge Judith G. Dein, who ordered him detained pending a detention hearing, which is scheduled for tomorrow. Di’lon Smith is currently in state custody; his initial appearance in federal court has not yet been scheduled.
The indictment alleges that on Nov. 29, 2017, the Smith brothers, who were each previously convicted of a felony, possessed a Smith & Wesson .22 caliber revolver, a Heckler & Koch .9 caliber pistol, six rounds of .22 caliber ammunition, and 18 rounds of .9 caliber ammunition.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Bakersfield Brothers Plead Guilty to Operating a Warehouse to Manufacture and Distribute Synthetic CannabinoidsRead the Press Release
FRESNO, Calif. — Brothers Yousef Aezah, 28; Adhim Aezah, 23; and Dirar Aezah, 19, all of Bakersfield, pleaded guilty today to maintaining a drug-involved premise for the purpose of manufacturing and distributing synthetic cannabinoids or “spice,” U.S. Attorney McGregor W. Scott announced. As part of the guilty pleas, the defendants agreed to forfeit more than $1 million in U.S. currency that was seized from them during their arrests.
According to the plea agreements, the defendants maintained a warehouse in Bakersfield that they used to manufacture and distribute synthetic cannabinoids, including AB-CHMINACA, a Schedule I controlled substance.
This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The defendants remain out of custody and are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 16, 2018. The defendants face a maximum statutory penalty of 20 years in prison and a $500,000 criminal fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tennessee Man Indicted for Hate Crime and Lying to the FBIRead the Press Release
The Department of Justice today announced that Christopher Beckham, 32, of Nashville, Tennessee, was indicted by a federal grand jury in the Middle District of Tennessee on charges of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act and lying to the FBI. Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Don Cochran of the Middle District of Tennessee made the announcement.
According to the indictment, on or about Oct. 24, 2017, in the Middle District of Tennessee, Beckham saw two teenage girls wearing hijabs and said “Allahu Akbar!” and “Go back to your country!” He then attacked the girls’ father by swinging a knife and punching at him, and shouted derogatory comments at the family. Moreover, according to the indictment, on or about March 12, 2018, Beckham falsely claimed to FBI special agents that he saw the girls trying to break into cars; that he never swung a knife at their father; and that, after he pulled out his knife, the girls yelled “Allahu Akbar!,” and then either one or both of them hit him on the back of the head.
If convicted on the hate crime charge, Beckham faces a maximum sentence of ten years in prison, three years of supervised release, and a fine of up to $250,000. The charge of making false statements to the FBI provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara Beth Myers of the Middle District of Tennessee and Trial Attorneys Christine M. Siscaretti and Rachel Kincaid of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Supporting Crime Victims’ RightsRead the Press Release
Recent statistics show Americans are the victims of 20 million crimes each year, affecting both individuals and communities. Since 1981, a week in April has been designated as National Crime Victims’ Rights Week, to bring attention to the rights of victims, highlight the impact crime has on families, friends and the community, and promote laws, policies, and programs to help victims of crime. This week provides an opportunity for communities to reflect on the history of the victims’ rights movement, celebrate its progress and renew commitments to ensure all victims of crime have the rights and services they need to recover and receive the justice they deserve. The Department of Justice Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year, April 8-14, 2018, is designated as National Crime Victims’ Rights Week. The theme, Expand the Circle: Reach All Victims, emphasizes the importance of how the investment of communities in crime victims expands the opportunity for them to disclose their victimization, connect with services, and receive the support they need. Building relationships and engaging our communities across professional, cultural, economic, and other divides to remove barriers to reporting and accessing services is essential to supporting the needs of all victims of crime. In 2004, Congress passed the Crime Victims’ Rights Act, giving victims in federal criminal proceedings certain enforceable rights. The U.S. Attorney's Office for the Eastern District of Tennessee is committed to ensuring crime victims associated with prosecutions handled by our office are provided with all the rights they are entitled to by law. Our district, like federal districts across the country, has dedicated personnel to ensure victims are treated with fairness and respect as they journey through the federal criminal justice system. Among other things, our victim assistance specialists provide notice of case events; inform victims of their rights, and keep victims informed about case proceedings. The U.S. Attorney’s Office plays a vital role in helping to fund state victim compensation and assistance programs through its collection of court-ordered fines and assessments. The Crime Victims Fund, administered by OVC, supports a variety of programs and services that focus on helping victims in the immediate aftermath of crime and continue to support them as they rebuild their lives. Fines and assessments ordered by the U.S. District Court and collected by the U.S. Attorney’s Office go directly into the Crime Victims Fund to be distributed to every U.S. state and territory to finance their victim compensation and assistance programs. The prosecutors in the U.S. Attorney’s Office for the Eastern District of Tennessee have always been committed to supporting and providing service to victims of all federal crimes, including violent crimes, fraud, identity theft, human trafficking, elder abuse and exploitation, and sexual crimes against children. And, we will continue to prosecute the individuals who commit these crimes, sending a message to other would-be perpetrators that their actions will not be tolerated. I encourage everyone to participate in events in your community during National Crime Victims’ Week. While this particular week is dedicated to all crime victims, there are specific victim-related observances throughout the year in which you can also participate. For additional information about these events as well as National Crime Victims’ Rights Week, please visit OVC’s website at www.ovc.gov. J. Douglas Overbey United States Attorney Eastern District of TennesseeSinaloa Cartel Trafficker Sentenced; Jesus Manuel Salazar-Nunez Sent Tractor-Trailers Packed with Methamphetamine, Cocaine and Heroin into the United StatesRead the Press Release
Assistant U.S. Attorney Matthew J. Sutton (619) 546-8941
NEWS RELEASE SUMMARY – April 6, 2018
SAN DIEGO – Sinaloa Cartel drug trafficker Jesus Manuel Salazar-Nunez was sentenced to 135 months in prison today and 5 years of supervised release for his role in a drug trafficking cell responsible for shipping methamphetamine, cocaine, and heroin from Mexico for importation into San Diego.
According to court records, in 2015, Drug Enforcement Administration agents intercepted the communications of Salazar-Nunez and other high-level Sinaloa Cartel members making arrangements for tractor-trailers to travel from Sinaloa, Mexico to Baja California, Mexico, carrying methamphetamine, cocaine, and heroin hidden among canned food and drinks, frozen shrimp and vegetable boxes and other household goods. Once they arrived at a Tijuana warehouse, the narcotics were unloaded, distributed to couriers and smuggled into San Diego, California.
Salazar-Nunez recruited drivers, made arrangements with narcotics customers to use their transportation services, deposited narcotics proceeds into various Mexican bank accounts, and designed items to make it appear that the tractor-trailer loads contained all legitimate items. On September 16, 2015, agents arrested Salazar-Nunez when he flew into Hartsfield-Jackson Atlanta International Airport from Guadalajara, Mexico.
On August 14, 2017, the day scheduled for his trial, Salazar-Nunez entered a guilty plea before United States District Court Judge Dana M. Sabraw to an indictment charging him with conspiracy to import methamphetamine, cocaine, and heroin into the United States. As part of his guilty plea in the case, Salazar-Nunez admitted to making arrangements for four tractor-trailer shipments. Thanks to the cooperation of United States and Mexican law enforcement, all four of these tractor-trailers were seized in March, April, and August of 2015 in Mexico.
In court today, Judge Sabraw explained that a severe sentence was warranted because of the enormous size and lengthy scope of Salazar-Nunez’s drug trafficking activities. Noting that Salazar-Nunez used his education and professional achievements, as a college educated businessman, to help move hundreds of kilograms of narcotics month after month from Mexico to San Diego, Judge Sabraw said to Salazar-Nunez: “You are not an ordinary defendant….and you need to recognize how wrong it was.”
“Today marks yet another severe blow to the operations of the Sinaloa Cartel,” stated United States Attorney Adam L. Braverman. “The Cartel’s drug trafficking empire continues to be diminished and their power eroded with this prosecution. The dedicated efforts of our law enforcement partners in San Diego and Mexico, who greatly assisted with these seizures, shows our continued commitment to dismantle the Sinaloa Cartel.”
“Our communities might not know Mr. Salazar-Nunez by name, but they are very familiar with living in the aftermath of lives destroyed by drug addiction,” said DEA San Diego Special Agent in Charge Karen Flowers. “Addiction fed by his greed has robbed many San Diegans of their future. The San Diego law enforcement community will continue to keep the pressure on and save lives.”
This case is part of a five-year investigation led by the Southern District of California, that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel. This investigation has also offered one of the most comprehensive views to date of the inner workings of one of the world’s most prolific, violent and powerful drug cartels. Cartel members and associates were targeted in this massive investigation involving multiple countries, numerous law enforcement agencies around the United States, a number of federal districts and over 250 court-authorized wiretaps in this district alone.
This investigation is also the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States was represented in court by Assistant U.S. Attorney Matthew J. Sutton.
DEFENDANT Criminal Case No. 15-CR-2380-DMS
Jesus Manuel Salazar-Nunez Age: 35 Culiacan, Mexico
SUMMARY OF CHARGES
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
Customs and Border Protection, Office of Field Operations
Customs and Border Protection, Office of Border Patrol
United States Marshals Service
Internal Revenue Service
Federal Bureau of Investigation
United States Attorney’s Office, Northern District of Georgia
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego Law Enforcement Coordination Center
Mexico’s Secretaria de la Defensa Nacional (SEDENA)
Mexico’s Procuraduria General de la Republica (PGR)
Schenectady Man Pleads Guilty to Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – Anthony M. DeRose, a/k/a “Gus,” age 23, of Schenectady, New York, pled guilty today to possessing and intending to sell furanyl fentanyl, a synthetic opioid.
The announcement was made by United States Attorney Grant C. Jaquith.
On August 21, 2017, Schenectady County Sheriff’s Deputies arrested DeRose on an outstanding warrant. They searched him and found, inside his right pants pocket, one clear plastic bag containing 145 smaller white bags or envelopes, each of which contained furanyl fentanyl. As part of his plea, DeRose admitted that he intended to distribute the furanyl fentanyl, which has been a federally controlled substance since November 29, 2016.
United States District Judge Mae A. D’Agostino will sentence DeRose on August 7, 2018. He faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Schenectady County Sheriff’s Office and the U.S. Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Rochester Couple Charged with Sexually Exploiting A 10 Year Old ChildRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bonnie Hughes and John Kohlmeier, Jr., both of Greece, NY, were arrested and charged by criminal complaint with production, receipt, and possession of child pornography, and coercing and enticing a minor to engage in unlawful sexual activity. The charges carry a mandatory minimum sentence of 15 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, in early 2018, defendant Kohlmeier was having sexually explicit conversations with a 10-year female (minor victim) via cellular telephone. On March 19, 2018, defendant Hughes, at Kohlmeier’s request, took two sexually explicit photographs of the minor victim. Subsequently, Kohlmeier and Hughes engaged in sexual conduct with the minor victim.The Greece Police Department previously arrested Kohlmeier and Hughes, and they are currently be held in state custody on state charges.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Greece Police Department, under the direction of Chief Patrick D. Phelan; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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.
Robert K. Hur Is Sworn in as the 48th United States Attorney for the District of MarylandRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States Chief District Judge James K. Bredar swore in Robert K. Hur today as the 48th United States Attorney for the District of Maryland.
As U.S. Attorney, Mr. Hur is the chief federal law enforcement officer in the District of Maryland. Mr. Hur will oversee the investigation and litigation of all criminal and civil cases brought on behalf of the United States in the District of Maryland. He will supervise an office of approximately 88 Assistant U.S. Attorneys and 72 support personnel, who handle a high volume of important cases including domestic and international terrorism, narcotics trafficking, organized crime, gang violence, public corruption, cybercrime, financial and healthcare fraud, and civil rights violations.
Before taking office as U.S. Attorney, Mr. Hur served as Principal Associate Deputy Attorney General with the Department of Justice in Washington, DC. In that position, Mr. Hur was a member of the Department’s senior leadership team and the top aide to Deputy Attorney General Rod J. Rosenstein, assisting him with oversight of all components of the Department.
Mr. Hur served as an Assistant U.S. Attorney in the District of Maryland from 2007 to 2014, where he prosecuted gang violence, firearms offenses, and narcotics trafficking, as well as white-collar offenses including financial institutions fraud, public corruption, mortgage fraud, tax offenses, computer network intrusions, and intellectual property theft. He received the Attorney General’s Distinguished Service Award for superior performance and excellence as a lawyer.
Before joining the U.S. Attorney’s Office, Mr. Hur served as Special Assistant and later Counsel to the Assistant Attorney General in charge of the Criminal Division, where he handled counterterrorism, corporate fraud, and appellate matters.
In addition to his service with the Department of Justice, Mr. Hur was a litigation partner with a major law firm in Washington, D.C., where he represented companies and individuals facing criminal and regulatory enforcement actions before the Department of Justice, the Securities and Exchange Commission, and other federal agencies, as well as related civil litigation.
Mr. Hur began his legal career as a law clerk for the late William H. Rehnquist, Chief Justice of the United States, and Judge Alex Kozinski of the U.S. Court of Appeals for the Ninth Circuit.
Mr. Hur received his A.B. degree, magna cum laude with highest honors, from Harvard College. He received his J.D. from Stanford Law School, where he served as Executive Editor of the Stanford Law Review.
Rancho Santa Fe Couple Sentenced to Prison for Roles in Concealing $1.5 Million in Bankruptcy Assets, Evading $6 Million in Taxes and Committing Bank FraudRead the Press Release
Assistant U. S. Attorneys Michael J. Heyman and Joseph J.M. Orabona
NEWS RELEASE SUMMARY – April 6, 2018
SAN DIEGO – On April 5, 2018, J. Douglass Jennings, a disbarred California attorney, was sentenced to 34 months in federal prison for committing bankruptcy fraud (concealment of assets) and for tax evasion. His wife Peggy Jennings was sentenced to four months in federal custody for committing bank fraud.
Mr. Jennings once touted in a commercial that he managed “one of the nation’s leading estate and tax planning law firms.” He appeared on talk-shows and authored two books, including what he claimed in court filings was “highly regarded and one of the best and most complete estate planning treatises to date.” Mr. Jennings also practiced what he described in an advertisement as a “faith-based” approach to financial planning, with some referring to him as “Uncle Doug.”
In January 2010, Mr. and Mrs. Jennings filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the Southern District of California, In re J. Douglass Jennings, Jr. and Peggy L. Jennings, Case No. 11-04720. On September 11, 2017, Mr. Jennings pleaded guilty to devising a scheme to defraud his unsecured creditors by concealing numerous assets and income during the bankruptcy. Those assets and income, valued at nearly $1.5 million, included:
- A stock interest in a real-estate venture valued at approximately $1 million;
- A 53.2 foot luxury yacht known as the “Sea Eagle” valued at approximately $150,000;
- Antique silver items valued at approximately $165,139; and
- $138,694 in salary payments and other benefits in violation of a Bankruptcy Court order.
Mr. Jennings also pleaded guilty to evasion of tax payments in the amount of $5,927,093.00.
At the sentencing hearing, the Honorable Gonzalo Curiel quoted one of the victims of the fraud who described Mr. Jennings as having “manufactured a diabolical morass of massive complexity around his bankruptcy.” Judge Curiel further described Mr. Jennings’ conduct as “callous, uncaring, and deceitful.” Mr. Jennings was sentenced to 34 months in custody for this conduct and his lack of remorse. The sentence was also imposed to deter Mr. Jennings from committing fraudulent conduct in the future since he was already “planning his comeback and planning his resurrection.” The judgment additionally included an order to pay restitution to victims in the amount of $1,453,833.00 and restitution to the IRS in the amount of $5,927,093.00.
Peggy Jennings was sentenced to bank fraud in the related action, United States v. Peggy L. Jennings, Case No. 17CR2306-GPC. Mrs. Jennings had forged her mother’s signature on loan documents, fraudulently transferred funds into her mother’s bank accounts to make it appear that her mother had substantial income, submitted false documents to the bank, and intended to cause the bank losses exceeding more than $226,000. Mrs. Jennings was sentenced to 4 months in custody and ordered to pay a $50,000 fine and $145,481.71 in restitution.
“The bankruptcy system is designed to provide honest debtors a fresh start,” said United States Attorney Adam L. Braverman. “Manipulation of that system through fraudulent acts can cause significant harm and suffering to innocent victims, and will be vigorously pursued.”
“Mr. Jennings’ abuse of his position and manipulation of the system for his own personal gain will not be tolerated,” said IRS-CI Special Agent in Charge R. Damon Rowe. “This case is an example of fraud and deceit at the highest level. Jennings utilized his reputation and experience to lure victims and perpetrate his scheme. Investigating these types of cases and ensuring those responsible are brought to justice continue to be a top priority for the IRS- Criminal Investigation Division.”
“This sentencing reinforces the FBI’s commitment to restoring the public’s faith in the bankruptcy system through the unwinding of this intricate web of deception, bringing this husband and wife team to justice,” said FBI Special Agent in Charge John A. Brown. “Through our partnerships with the Internal Revenue Service and other government institutions, the FBI will continue to pursue and prosecute criminals who defraud American citizens and the U.S. Government.”
“I am grateful to U.S. Attorney Braverman and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by these successful criminal prosecutions,” stated Tiffany L. Carroll, Acting U.S. Trustee for the Southern District of California, Hawaii, Guam, and the Northern Mariana Islands (Region 15). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 15 is headquartered in San Diego with offices in Honolulu and Guam.
DEFENDANT Case Number 17CR2722-GPC
J. Douglas Jennings, Jr. Age: 73 Rancho Santa Fe, CA
SUMMARY OF CHARGES FOR J. DOUGLASS JENNINGS:
Bankruptcy Fraud – Title 18, U.S.C., Section 152(1)
Evasion of Tax Payment – Title, 26 U.S.C., Section 7201
DEFENDANT Case Number 17CR2306-GPC
Peggy L. Jennings Age: 72 Rancho Santa Fe, CA
SUMMARY OF CHARGES FOR PEGGY L. JENNINGS:
Bank Fraud – Title 18, U.S.C., Section 1344
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Putnam County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
Defendant faces at least five and up to 20 years in federal prison
HUNTINGTON, W.Va. – A Parkersburg man pled guilty today to a child pornography crime, announced United States Attorney Mike Stuart. Stephen Craig Sluss, 59, of Scott Depot, entered his guilty plea to receiving child pornography. U.S. Attorney Stuart praised the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and Department of Homeland Security - Homeland Security Investigations.
U.S. Attorney Stuart said, “I commend the law enforcement officers dedicated to investigating these disgusting crimes, as well as the members of my team who prosecute these cases. Protecting our children from predators is some of the most difficult and important work we do.”
Sluss admitted that on April 1, 2017, he received videos of prepubescent minors engaged in sex acts. The videos were received by Sluss via the Internet. The investigation revealed that Sluss was using a web-based chatting service to access and download child pornography. Sluss further admitted to possessing over 600 images and videos of minors engaged in sex acts, and that some of those images involved sadistic conduct.
Sluss faces at least five and up to 20 years in federal prison when he is sentenced on July 19, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald are in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Pittsburgh Man Pleads Guilty to Cocaine TraffickingRead the Press Release
PITTSBURGH – A former resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of trafficking cocaine, United States Attorney Scott W. Brady announced today.
Johnny Lee Jones, 46, of Pittsburgh, PA, pleaded guilty before United States District Judge Cathy Bissoon.
In connection with the guilty plea, on March 13, 2017, Jones knowingly, intentionally, and unlawfully possessed with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
Judge Bissoon scheduled sentencing for September 6, 2018, at 2:15 p.m. The law provides for a maximum total sentence of not less than 5 years and up to 40 years imprisonment, a maximum fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bethel Park Police Department conducted the investigation that led to the prosecution of Jones.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.