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Thursday 29 March 2018
Medina County man indicted for armed robbery of bank in GraftonRead the Press Release
A Medina County man was indicted for the armed robbery of a bank in Grafton.
Matthew J. Kroffke, 37, brandished a firearm when he robbed the Chemical Bank located at 351 North Main Street on Feb. 23, according to the indictment.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Maryland State Senator Pleads Guilty to Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –Maryland State Senator Nathaniel Thomas Oaks, age 71, of Baltimore, Maryland, pleaded guilty today to one count of wire fraud and one count of honest services wire fraud.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreement, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
According to the statement of facts in support of the plea agreement, on September 21, 2015, a cooperating individual introduced Oaks to an FBI confidential human source, “Mike Henley,” who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by Henley. During the meeting, Oaks offered to assist Henley with business development in Maryland.
During the months following the September 21, 2015 meeting between Henley and Oaks, Henley consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to Henley in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that Henley told Oaks that he was interested in developing in the City. Oaks told Henley that he wanted to help with the HUD project.
According to the plea agreement, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead which contained materially false and fraudulent representations to a person whom he believed to be a HUD official in order to assist Henley in obtaining federal grant funds from HUD. Henley paid Oaks $10,300 for his assistance.
According to the statement of facts in support of the plea agreement, on September 22, 2016, Henley paid Oaks $5,000 in exchange for Oaks’ agreement to file a bond bill request with the Maryland Department of Legislative Services (DLS) seeking $250,000 in state funds for the Project. Oaks filed the bill request with DLS later that day. On November 21, 2016, Oaks forwarded an email to Henley that had been sent to him by DLS. The email attached the draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by Henley was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
On or about January 9, 2017, Oaks confessed to two FBI agents that he has accepted the first two payments from Henley in exchange for issuing two letters to HUD on his official House of Delegates letterhead and that he knew the letters contained materially false statements in an effort to assist Henley with his housing project. Oaks further confessed to the agents that he had accepted the third payment from Henley in exchange for filing a request for DLS to draft the Bond Bill Legislation.
Oaks agreed to cooperate with the FBI in an investigation of Person #1 for possible violations of federal criminal laws. As part of that cooperation, and at the direction of the FBI, Oaks covertly recorded his telephone conversations and in-person meetings with Person #1 beginning on January 9, 2017 and continuing until March 30, 2017.
According to the plea agreement, on or about March 17, 2017, without recording or disclosing the existence of the conversation to the FBI, Oaks approached Person #1 at a bar in Annapolis and told him “what we talked about, just say no.” On March 30, 2017, Oaks again approached Person #1 in the hallway of a State government building in Annapolis and said “I’m going to ask you for something, just say no.” These statements were intended to dissuade Person #1 from engaging in the activity that was the subject of the criminal investigation and which activity Oaks and Person #1 had discussed in a recorded conversation earlier that day.
As a result of Oaks’ deliberate and intentional conduct in tipping off Person #1, the covert investigation of Person #1 and possibly other politicians was no longer viable.
Oaks faces a maximum sentence of 20 years in prison for the wire fraud count and 20 years in prison for the honest services wire fraud count. Oaks is scheduled to be sentenced July 17, 2018 at 11 a.m. in U.S. District Court in Baltimore.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
Man Who Concealed Service in Military Unit Involved in Srebrenica Massacre Sentenced for Immigration FraudRead the Press Release
Charlotte, N.C. – A Bosnian Serb residing in North Carolina was sentenced to 18 months in prison today for his criminal conviction of obtaining a Permanent Resident Card (I-551), commonly referred to as a “green card,” by making materially false claims and statements on his initial application for refugee status, which served as the basis for obtaining Lawful Permanent Resident status.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Milan Trisic, 55, who was residing in Charlotte, North Carolina, was sentenced by Judge Max O. Cogburn Jr. of the Western District of North Carolina. Trisic previously pleaded guilty on Dec.18, 2017, to possession of unlawfully obtained documents. Pursuant to an Order issued by Judge Coburn, upon completion of his term of imprisonment, Trisic will be transferred to ICE custody for removal to Bosnia and Herzegovina.
“Those who wish to live in the United States ought to respect our laws, support our national security, and pursue residency legally and honestly. Anything less is inexcusable,” said Attorney General Sessions. “The Department of Justice will not hesitate to take action against criminals who seek to come here on the basis of fraud and take advantage of our generous immigration system. I want to thank our Homeland Security Investigations (HSI) special agents and DOJ attorneys for all of their hard work pursuing justice in this case.”
“Using lies and deceit, Trisic exploited our legal immigration system to enter our country and later to become a permanent resident,” said U.S. Attorney Murray. “The sentence imposed by the Court is just punishment for Trisic’s blatant disregard for our nation’s immigration laws. My office is committed to protecting the integrity of our legal immigration process and prosecuting those who commit immigration fraud.”
“The men and women of ICE will continue to pursue those who violate the integrity of our immigration system to hide from the human rights violations they have committed,” said ICE Deputy Director Homan. “ICE Homeland Security Investigations in Charlotte, supported by ICE’s Human Rights Violators and War Crimes Center, worked for many years to pursue this case and uncover the facts about the human rights violations this individual committed. We thank our many partners at the Department of Justice for their tireless work in prosecuting this case. With this case and many others like it, the United States has demonstrated that we will not serve as a safe haven for those who commit egregious acts that violate basic human rights.”
According to the admissions made in connection with his plea, Trisic, an ethnic Serb with Bosnian citizenship, is a lawful permanent resident of the United States living in North Carolina. On Nov. 3, 2016, Trisic possessed a green card that was unlawfully obtained. In response to questions on his legal permanent resident application, Trisic knowingly concealed his military service in the Bratunac Brigade, a unit in the Army of the Serb Republic; concealed his criminal activity in Bosnia and Herzegovina; and lied about his whereabouts during the war in Bosnia and Herzegovina in the early and mid-1990s.
As part of his plea of guilty, Trisic admitted that he served in the Army of the Serb Republic as a member of the Bratunac Brigade during various tours of duty between April 1992 and January 1996, at a time when Bosnia and Herzegovina was in the midst of a civil war. Due to its proximity to Serbia, forces both aligned with and from Serbia began a violent ethnic expulsion campaign in 1992 against the non-Serbian population in and around Bratunac. Trisic admitted that he engaged in various unlawful activities while serving with the Bratunac Brigade, such as the unlawful beating, detention and transportation of Muslim prisoners. Additionally, Trisic admitted that the Bratunac Brigade, operating primarily in eastern Bosnia and Herzegovina, was one of the military units responsible for the July 1995 Srebrenica massacre that resulted in the deaths of between 7,000 and 8,000 Bosnian Muslim men.
Trisic also admitted that he knowingly lied about his whereabouts during the war in Bosnia and Herzegovina. In order to obtain refugee status, Trisic falsely claimed that he resided in Serbia during the war, when in fact he actually resided in Bratunac, Bosnia and Herzegovina, where he served as part of the Bratunac Brigade. Trisic later used his illegally obtained status as a refugee to unlawfully obtain permanent resident status in the United States.
This case is the result of an investigation conducted by ICE’s HSI and supported by the Human Rights Violators and War Crimes Center. Trial Attorneys Frank G. Rangoussis and Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kenneth Smith of the Western District of North Carolina are prosecuting the case.
Man Sentenced to Federal Prison for Second Federal Felony for Unlawfully Possessing a Gun or AmmunitionRead the Press Release
A convicted felon who unlawfully possessed ammunition was sentenced today to more than two years in federal prison.
Donald Joseph Boyce, age 59, from Guttenberg, Iowa, received the prison term after a September 5, 2017, guilty plea to possession of ammunition by a felon. At the guilty plea, Boyce admitted that on March 28, 2017, he possessed .303 caliber ammunition. Boyce had previously been convicted of a state felony drug manufacturing offense in 2002 and the federal felony offense of being an unlawful drug user in possession of a firearm in 2003. Officers from the Clayton County Sheriff’s Office found the ammunition in Boyce’s car during a traffic stop. They also located an Enfield .303 caliber rifle in the backseat. Boyce asked the officers to throw the gun in the river because he was felon and would be facing significant jail time. Boyce had methamphetamine in his pocket and was under the influence of a controlled substance at the time of his traffic stop.
Boyce was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Boyce was sentenced to 30 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Boyce is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Clayton County Sheriff’s Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-1019.
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Man Previously Convicted of Domestic Abuse Sentenced to Federal Prison for Unlawfully Possessing GunRead the Press Release
A Linn County man who unlawfully possessed a rifle as a domestic violence misdemeanant was sentenced March 28, 2018, to more than two years in federal prison.
Nathan Lee Lyon, age 33, from Cedar Rapids, Iowa, received the prison term after a November 9, 2017, guilty plea to possession of a firearm by a prohibited person. At the guilty plea, Lyon admitted that on May 10, 2017, he unlawfully possessed a rifle. Lyon had previously been convicted of assault causing bodily injury, a misdemeanor crime of domestic violence. Information at sentencing established that Lyon was driving a stolen a truck on May 10 when police officers stopped him. Lyon had placed the stolen firearm in the back of the truck. The firearm had been stolen from another person other than the owner of the truck.
Lyon was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Lyon was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Lyon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Cedar Rapids Police Department, Linn County Sheriff’s Office, Scott County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-75.
Follow us on Twitter @USAO_NDIA.
Louisville Skilled Nursing Facility to Pay $5,191,470. to Settle False Claims AllegationsRead the Press Release
LOUISVILLE, Ky. – New Oaklawn Investments, LLC, d/b/a Oaklawn Health and Rehabilitation Center and Elmcroft Senior Living, Inc., a Louisville based skilled nursing facility, agreed to pay $5,191,470 to resolve allegations that it violated the False Claims Act by submitting false claims for payment to the Medicare Program, announced United States Attorney Russell M. Coleman.
“Today’s settlement is the result of this office working in a coordinated effort with Medicare’s Unified Program Integrity Contractor, AdvanceMed, to ensure that taxpayer dollars are not misspent – especially when providing vital services to our senior community,” stated United States Attorney Russell Coleman. “The more than 5 million dollar settlement underscores our continued commitment to uncovering health care fraud.”
Oaklawn is a for-profit skilled nursing facility with 128 beds located in eastern Jefferson County, Kentucky, that was managed by Elmcroft.
The government contends that during the period from February 26, 2007 through February 26, 2010, Oaklawn improperly billed Medicare for patient rehabilitation services at the resource utilization (“RUG”) Code Series Rehabilitation Ultra High and Rehabilitation Very High, for certain services that were not reasonably or medically necessary.
Skilled nursing facilities use a clinical assessment tool known as the Resident Assessment Instrument to identify residents’ clinical condition, including strengths, weaknesses, preferences, functional status and expected use of services. Under Medicare Part A, skilled nursing facilities are required to classify residents into RUGs based on assessment data from the resident assessment. Therapy RUGs are divided into five levels of therapy (ultra high, very high, high, medium, or low), with Medicare generally paying the most for “ultra high” therapy.
The matter was handled by Assistant United States Attorney Benjamin S. Schecter with assistance from Medicare’s Unified Program Integrity Contractor, AdvanceMed.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
oaklawn_ettlement_agreement-_signed.pdfLaconia Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Robert Saint John, 31, of Laconia pleaded guilty in federal court to fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on May 31, 2017, the defendant and two other men pooled their money for the purpose of buying drugs. They drove together from Belmont, New Hampshire, to Lawrence, Massachusetts. In Lawrence, the men met with their drug supplier, purchased a quantity of fentanyl, and began to drive back to New Hampshire. On the highway near Derry, New Hampshire, the New Hampshire State Police conducted a traffic stop and seized a package containing approximately 111 grams of fentanyl.
Saint John pleaded guilty to one count of possession of fentanyl with intent to distribute and one count of conspiracy to distribute, and possess with intent to distribute, fentanyl. He is scheduled to be sentenced on July 17, 2018.
“Stopping the deadly flow of fentanyl into New Hampshire is a high priority of the U.S. Attorney’s Office,” said U.S. Attorney Murray. “Fentanyl has caused many overdose deaths in New Hampshire. In order to protect our community, we will continue to work closely with all of our law enforcement partners to identify and prosecute those who are responsible for distributing opioids in the Granite State.”
“With today’s guilty plea, Mr. Saint John is accepting responsibility for peddling this deadly synthetic opioid, responsible for killing so many - at an alarming rate - across New Hampshire. However, there’s much more work to be done,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.“ Mr. Saint John is only one of many, fueling the flow of illegal drugs into our neighborhoods. Together, with our law enforcement partners, the FBI will continue to do everything we possibly can to root out drug traffickers who seek to exploit vulnerable people suffering from addiction.”
This matter was investigated by the FBI, the New Hampshire State Police, and the Laconia Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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KC-Area Man Sentenced for Four Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo.-area man was sentenced in federal court today for robbing four banks in Independence, Mo., Liberty, Mo., and Kansas City, Mo., over a span of five months.
Tam Henry Holmes, 57, of the Kansas City metropolitan area, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole. The court also ordered Holmes to pay $25,005 in restitution.
On Oct. 23, 2017, Holmes pleaded guilty to four counts of bank robbery.
Holmes robbed Central Bank of Kansas City, 2301 Independence Ave., Kansas City, Mo., on Nov. 16, 2016. Holmes approached the teller counter and placed a note up against the bullet-proof glass and whispered “700.” The teller told investigators she could not read what was printed on the note, but Holmes continued to whisper “700” and she realized it was a robbery. The teller turned over $450 to Holmes, who then left the bank.
On April 1, 2017, Holmes robbed Bank of the West, 850 S. 291 Hwy., Liberty. When he entered the bank, Holmes held up a spiral notebook containing hand-written notations. The teller told investigators that she read the first couple of lines, which she recalled were, “this is a robbery, give me all your large bills.” The teller gathered money from her drawer and gave it to Holmes and he left the bank. The bank reported a loss of $8,300.
On April 3, 2017, Holmes robbed Greater Kansas City Public Safety Credit Union, 19341 E. US 40 Hwy., Independence. Holmes walked up to a teller counter and showed the teller two hand-written notes on two yellow Post-it notes. The notes said, “this is a robbery. Don’t pull any dye packs, bail or alarms. I know where you live.” The teller removed cash from her drawer and handed it to Holmes, and he left the bank. The credit union reported a loss of $12,205.
On April 15, 2017, Holmes robbed First Federal Bank of Kansas City, 3500 Noland Rd., Independence. Holmes held up a handwritten note that said, “give me all the money, hurry up, or I will hurt you.” The teller opened her drawer and handed Holmes $100 and $50 bills. She then stared at Holmes, who stated, “hurry up or I’ll do what the note says.” The teller then gave Holmes $20, $10 and $5 bills. Holmes took the money, put it in his pockets and walked out of the bank. The bank reported a loss of $4,050.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the FBI.
KC Paramedic Indicted for Stealing Fentanyl, Morphine from AmbulancesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., Fire Department paramedic has been indicted by a federal grand jury for stealing fentanyl and morphine from ambulances and replacing fentanyl with another substance.
Michael L. Fostich, 36, of Kansas City, Mo., was charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 27, 2018. That indictment was unsealed and made public today upon Fostich’s arrest and initial court appearance.
Fostich is charged with one count of obtaining a controlled substance by fraud (related to the theft of fentanyl and morphine) and one count of tampering with a consumer product (related to the replacement of fentanyl with another substance).
Fostich was employed at the Kansas City Fire Department (KCFD) as a paramedic from August 2014 to Dec. 11, 2016. Fostich had access to fentanyl and morphine, which were stored in sealed narcotics boxes and locked in safes on KCFD ambulances. Each sealed narcotics box contained two vials of fentanyl, each containing 100 micrograms of liquid fentanyl, two syringes of morphine, each containing 10 milligrams of liquid morphine, and two vials containing 5 milligrams of liquid midazolam. As a paramedic, Fostich was able to unlock the electronic safe and open the sealed narcotics boxes in order to administer controlled substances to patients, if necessary.
The federal indictment alleges that Fostich engaged in a scheme from Jan. 1, 2016, through Dec. 11, 2016, to fraudulently obtain fentanyl and morphine. As part of the scheme, Fostich allegedly prepared patient care records and state reporting forms that contained misrepresentations regarding his use of fentanyl and morphine.
According to the indictment, Fostich reported he was responsible for the use of 806 doses of fentanyl, which accounted for approximately 39 percent of all of the KCFD’s total reported use during that period of time. Fostich also reported he was responsible for the use of 636 doses of morphine, which accounted for approximately 63 percent of all of the KCFD’s total reported use of morphine during that period of time.
The federal indictment also alleges that Fostich tampered with a container of fentanyl on Dec. 11, 2016. Fostich removed fentanyl from the vials contained in a KCFD narcotics box and replaced them with another solution in the vials, the indictment says, with reckless disregard for the risk that another person would be placed in danger of death or bodily injury. Fostich allegedly placed the vials back in the narcotics box, attempted to reseal the narcotics box, and then placed the narcotics box back in a safe located on a KCFD ambulance.
The charges contained in this indictment are accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department, the FBI and the U.S. Food and Drug Administration – Office of Criminal Investigation.
Justice Department Reaches Agreement with the South Carolina Department of Corrections to Provide Effective Communication to Inmates with Hearing DisabilitiesRead the Press Release
The Justice Department today reached a settlement agreement with the South Carolina Department of Corrections (SCDC), to ensure that inmates with hearing disabilities are provided effective communication and the opportunity to participate equally in SCDC’s services, programs, and activities.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which inmates with hearing disabilities alleged that SCDC failed to provide them with sign language interpreters and other auxiliary aids and services, and excluded their participation in vocational and religious programs because they are deaf. SCDC cooperated with the Department throughout the investigation.
Among the terms of the agreement, inmates with hearing disabilities will not be excluded from participating in SCDC’s programs including vocational and religious services. The agreement also requires SCDC to provide services equal to those provided to inmates who are not deaf including auxiliary aides and services and qualified interpreters, in a timely manner, to ensure effective communication with the SCDC inmates with hearing disabilities. SCDC will also provide telecommunication services so that inmates with hearing disabilities may communicate with their families and attorneys the same as other inmates.
“SCDC cooperated fully with this investigation and has committed to ensuring effective communication and providing equal access to its programs and services for its inmates with hearing disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We congratulate SCDC for recognizing its obligations and moving promptly to take this step.”
“Access to services and programming is not only a right under the ADA for the inmates who are deaf and hard of hearing, in this instance, these services will enable the inmates to improve their job skills and better ready themselves for a law-abiding life,” said U.S. Attorney Beth Drake. “That’s good corrections policy that benefits the whole state.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, individuals may access the ADA Web page at http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Reaches Agreement with the South Carolina Department of Corrections to Provide Effective Communication to Inmates with Hearing DisabilitiesRead the Press Release
NOTE: The settlement agreement can be found here.
WASHINGTON – The Justice Department today reached a settlement agreement with the South Carolina Department of Corrections (SCDC), to ensure that inmates with hearing disabilities are provided effective communication and the opportunity to participate equally in SCDC’s services, programs, and activities.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which inmates with hearing disabilities alleged that SCDC failed to provide them with sign language interpreters and other auxiliary aids and services, and excluded their participation in vocational and religious programs because they are deaf. SCDC cooperated with the Department throughout the investigation.
Among the terms of the agreement, inmates with hearing disabilities will not be excluded from participating in SCDC’s programs including vocational and religious services. The agreement also requires SCDC to provide services equal to those provided to inmates who are not deaf including auxiliary aides and services and qualified interpreters, in a timely manner, to ensure effective communication with the SCDC inmates with hearing disabilities. SCDC will also provide telecommunication services so that inmates with hearing disabilities may communicate with their families and attorneys the same as other inmates.
“SCDC cooperated fully with this investigation and has committed to ensuring effective communication and providing equal access to its programs and services for its inmates with hearing disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We congratulate SCDC for recognizing its obligations and moving promptly to take this step.”
“Access to services and programming is not only a right under the ADA for the inmates who are deaf and hard of hearing, in this instance, these services will enable the inmates to improve their job skills and better ready themselves for a law-abiding life,” said U.S. Attorney Beth Drake. “That’s good corrections policy that benefits the whole state.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, individuals may access the ADA Web page at http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
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Inmate Imprisoned for Robberies is Charged with 2015 Robbery of North Fayette Township Jared Jewelry StoreRead the Press Release
PITTSBURGH, Pa. – An inmate who is now serving a prison sentence at FCI McKean has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of robbing a Pittsburgh-area Jared Jewelry store in 2015, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on March 28, named Lonnie James Moton, age 27, formerly of Detroit, Michigan.
According to the indictment, on October 23, 2015, Moton robbed Jared-The Galleria of Jewelry located at The Pointe in North Fayette Township. Moton is currently serving a sentence at FCI McKean for two other robberies he committed in 2015.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the North Fayette 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.
Inland Empire Man Arrested and Charged in Federal Court for Setting a Fire in Joshua Tree National ParkRead the Press Release
RIVERSIDE – A Twentynine Palms man appeared in federal court yesterday afternoon on a federal charge alleging that he illegally started the Oasis of Mara/Joshua Tree Fire, which damaged historic trees and other National Park resources in a 2.5-acre area behind the Oasis Visitor Center in Joshua Tree National Park on Monday night, March 26, 2018.
According to the criminal complaint filed Wednesday afternoon, National Park Service Law Enforcement Rangers arrested George William Graham, 26, of Twentynine Palms, at the scene of the fire. Graham was observed watching the blaze and admitted to law enforcement officers that he started the fire, which consumed a number of historic trees and other National Park Service lands and natural resources.
According to court records, Graham was known both to the San Bernardino Sheriff’s Department and the National Park Service as a California arson parolee, with prior law-enforcement contacts with both California and federal authorities.
Federal prosecutors filed a criminal complaint against Graham, which charges him with unlawfully setting timber afire, a felony offense punishable by up to five years of imprisonment and a fine of up to $250,000. Graham is detained in federal custody pending his next court appearance on April 11, 2018.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation is being conducted by the National Park Service, with assistance from the United States Bureau of Land Management, the San Bernardino Sheriff’s Department, and the San Bernardino County Fire Department.
The case is being prosecuted by Assistant United States Attorney Adam P. Schleifer of the General Crimes section.
Humboldt County Resident Indicted for Alleged Bank Robberies and Hobbs Act RobberyRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Harwood Francis McCovey for his alleged role in four bank robberies and the armed robbery of a Shell Gas Station in Humboldt County, announced Acting United States Attorney Alex. G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, in the summer of 2016, McCovey, 33, of Hoopa, Calif., committed four bank robberies and a robbery of a Shell Gas Station. McCovey is alleged to have used a dangerous weapon in the commission of each robbery. The alleged robberies occurred on the following dates and locations:
- July 20, 2016 – Bank in Eureka, CA
- July 27, 2016 – Credit union in Eureka, CA
- July 31, 2016 – Shell Gas Station in McKinleyville, CA
- August 4, 2016 – Credit union in Eureka, CA
- August 12, 2016 – Bank in Fortuna, CA
In sum, McCovey was charged with four counts of armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and one count of robbery affecting interstate commerce (Hobbs Act robbery), in violation of 18 U.S.C. § 1951(a).
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory penalty of 25 years in prison for each bank robbery and 20 years in prison for the Hobbs Act robbery charge. Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendant currently is in state custody and will be transferred to federal custody to appear on these charges. A hearing for defendant’s arraignment has not yet been scheduled.
Assistant U.S. Attorney Randy Leonard is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of investigations by the Eureka Police Department, the Fortuna Police Department, and the Humboldt County Sheriff’s Office with support from the Federal Bureau of Investigation’s Eureka Resident Agency.
Houston Physician and Pain Management Clinic Owner Convicted of Running “Pill Mill” That Provided Unlawful Prescriptions for Millions of Doses of Opioids and Other Controlled SubstancesRead the Press Release
A federal jury found a Houston physician and the owner of a pain management clinic guilty today for their roles in running a “pill mill” that provided tens of thousands of unlawful prescriptions for millions of doses of opioids and other controlled substances.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
After a nine-day trial, Gazelle Craig, D.O., 41, and Shane Faithful, 48, both of Houston, Texas, were convicted of one count of conspiracy to unlawfully distribute controlled substances and three counts of unlawfully distributing and dispensing controlled substances. A sentencing date has not yet been scheduled before U.S. District Judge David Hittner of the Southern District of Texas, who presided over the trial. Both defendants were remanded into the custody of the U.S. Marshal’s Service.
“Our great country is currently in the midst of the deadliest drug crisis in our history,” said Attorney General Sessions. “Sadly, even some trusted medical professionals like doctors, nurses and pharmacists have chosen to violate their oaths and exploit this crisis for cash. The consequences have been devastating. In this case, tens of thousands of pills flooded our streets because of the defendants’ actions. We will never know for certain the scale of the damage done. We do know that justice has been served, and so I want to thank everyone who helped secure this conviction, including the DEA and Department of Justice Trial Attorneys Scott Armstrong and Devon Helfmeyer. This conviction will not only help stop the diversion of prescription drugs, it will send a message to every would-be fraudster in America.”
According to evidence presented at trial, from March 2015 through July 2017, Craig, a licensed doctor, and Faithful, the clinic owner, ran Gulfton Community Health Center (Gulfton), which operated as an illegal pill mill. The evidence showed that Craig unlawfully wrote approximately 18,252 prescriptions for over 2.1 million dosage units of hydrocodone, a Schedule II controlled substance, and approximately 15,649 prescriptions for over 1.3 million dosage units of carisporodal, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
The trial evidence showed that Craig issued unlawful prescriptions for controlled substances to as many as 60 patients a day. “Crew leaders” ferried numerous patients to Gulfton so that Craig could provide them with unlawful prescriptions for controlled substances. Faithful and Craig charged approximately $300 for each prescription and required payment in cash. The evidence also revealed that the defendants divided each day’s cash proceeds, often in excess of $15,000, from the sale of the unlawful prescriptions.
Faithful and Craig made great efforts to prevent law enforcement from investigating Gulfton, the evidence showed. For example, they banned the use of any electronic devices in the clinic and prevented anyone from bringing bags into Gulfton. Approximately four armed security guards also patrolled Gulfton daily to control the crowds of people, who ranged from addicts to “crew leaders.”
This case was investigated by the DEA. Trial Attorneys Scott Armstrong and Devon Helfmeyer of the Criminal Division’s Fraud Section 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 around 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 falsely billed the Medicare program for over $12.5 billion.
Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, – NAHUM VERDE-ORTIZ, age 39, a citizen of Honduras was sentenced today after previously pleading guilty to a one-count indictment for illegal use of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. District Judge Eldon E. Fallon sentenced VERDE-ORTIZ to time served.
According to the indictment, on August 20, 2014, VERDE-ORTIZ used a social security number that did not belong to him to register for a safety training course that his employer required him to take before he could begin working for the company as a construction worker.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Hartford Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DRESHAWN NEWTON, also known as “Dre,” 28, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, NEWTON’s associate, Joel Gonzalez, also known as “Tuti,” was the focus of an investigation into the distribution of heroin and other controlled substances in and around Hartford by members and associates of Los Solidos and the Latin Kings. In November and December 2015, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made a total of six controlled purchases of heroin from Gonzalez at 71 Warrenton Avenue and 30-32 Putnam Street in Hartford. NEWTON participated in one of the controlled purchases on December 4, 2015. On that date, NEWTON gave 1,000 bags of heroin to an undercover officer in exchange for $2,250.
NEWTON has been detained since his arrest on December 17, 2015. On September 6, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Gonzalez pleaded guilty to a related charge and, on January 31, 2018, was sentenced to 77 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Hartford Gang Member Sentenced to More Than 3 Years in Federal Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TAYRENCE WILLIS, a.k.a. “T” and “T-Franklin,” 26, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 37 months of imprisonment, followed by four years of supervised release, for his role in a narcotics trafficking ring.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members, including WILLIS, acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
On October 8, 2016, investigators intercepted OSK members calls discussing firearms and planning a potentially violent act. Investigators immediately notified Hartford Police that violence might be imminent in the Orange and Cherry Street area, but before police could respond, at approximately 10:12 p.m., a man was chased and shot multiple times in front of 7-9 Cherry Street. The victim was located in the backyard of 51 Orange Street. He was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. Minutes after the shooting, WILLIS referenced the shooting during a wiretapped call. Subsequent analysis of surveillance video revealed WILLIS was on Cherry Street at the time and was a witness to the shooting.
WILLIS has been detained since his arrest on February 10, 2017. On November 21, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).
WILLIS’s criminal history includes convictions related to selling drug, unlawful firearm possession, and leading police on an extended and dangerous vehicle pursuit during which a firearm was thrown from the vehicle he was driving. WILLIS also has been a victim of two separate shootings.
Sixteen individuals were charged as a result of the investigation.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hancock County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Dziatkowicz, of Weirton, West Virginia, admitted today to possessing child pornography, United States Attorney Bill Powell announced.
Dziatkowicz, age 36, pled guilty to one count of “Possession of Child Pornography.” Dziatkowicz admitted to having child pornography in February 2015 in Hancock County, West Virginia.
Dziatkowicz faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Hancock County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
German Citizen Indicted for Major Fraud in Connection with A State Department GrantRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Katrin Verclas, age 50, a native and citizen of Germany residing in Washington, D.C., on a charge related to a scheme to defraud the U.S. Department of State of $1.231 million. The indictment was returned on March 26, 2018, and was unsealed upon the arrest of Verclas.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Steve A. Linick, Inspector General for the U.S. Department of State.
According to the indictment, Verclas, as director of MobileActive Corp, obtained a grant from the U.S. Department of State intended to support and promote U.S. global internet freedom efforts. Verclas represented to the U.S. Department of State that MobileActive was a non-profit organization pursuant to 26 U.S.C. § 501(c)(3) with the legal authority to apply for a grant, and that MobileActive had the financial capability to ensure proper planning, management, and completion of the grant project.
MobileActive was not a 501(c)(3) non-profit organization, and thus, did not have the legal authority to apply for the grant. Verclas spent much of the money from the U.S. Department of State on personal expenses and expenses unrelated to the grant. Verclas caused the U.S. Department of State to transfer $1.222 million into her control.
Verclas faces a maximum sentence of 10 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Schenning thanked Special Assistant U.S. Attorney Dominique Juliet Park and Assistant U.S. Attorney Bryan E. Foreman, who are prosecuting the case. Assistant U.S. Attorney Katharine A. Wagner with the U.S. Attorney’s Office, District of Massachusetts, provided substantial assistance.
Georgia Man Charged in Lottery ScamRead the Press Release
BOSTON – A Georgia man was indicted in federal district court in Boston yesterday in connection with his role in a bogus advance fee lottery scheme.
Peter Anthony Chin Jr., 34, of Atlanta, Ga., was indicted on one count of conspiracy to commit mail and wire fraud. On Feb. 22, 2018, Chin was arrested in Atlanta on a criminal complaint and appeared later that month in federal court Boston. He has been released on conditions since that time.
According to the indictment, from 2012 to 2017, Chin was part of a scheme that targeted elderly individuals throughout the United States, including Massachusetts. The victims were informed via phone, email and mail that they had won millions of dollars in a lottery, but that they had to pay the taxes on their purported winnings before the funds could be released. Chin’s co-conspirators directed the victims to mail or wire funds to Chin or to his associates. Chin kept a portion of the funds for himself and then distributed the rest as directed by his co-conspirators, including sending significant amounts to Jamaica.
As alleged in court documents, the following are two examples of the way in which the scheme operated. On Oct. 7, 2015, a Pennsylvania resident mailed a $34,900 cashier’s check for purported lottery taxes and fees to Chin at his then-address in Fairburn, Ga. Two days later, the cashier’s check was deposited into Chin’s checking account. In another example of the scheme, on March 1, 2013, a Masachusetts resident mailed a treasurer’s check for $93,633 to a co-conspirator in New York for purported lottery taxes and fees. Later that month, the co-conspirator wired $25,000 to a bank account held by Chin’s wife.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.
Genovese Organized Crime Family Associate Convicted of Murder Conspiracy and Other Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of SALVATORE DELLIGATTI, a/k/a “Fat Sal,” a/k/a “Jay,” for racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, murder-for-hire conspiracy, participation in an illegal gambling operation, and a firearms offense. The jury convicted DELLIGATTI yesterday on all six counts of the Indictment following a three-week trial before U.S. District Judge Katherine B. Forrest.
U.S. Attorney Geoffrey S. Berman said: “Salvatore Delligatti, in order to increase his standing in the Genovese Family, recruited a group of hitmen to murder an individual. But Delligatti’s hitmen were caught red-handed by the Nassau County Police Department and the Nassau County District Attorney’s Office before they could carry out their hit. Delligatti now stands convicted of this foiled murder plot and other crimes he committed with the Genovese Family. We thank our partners in Nassau County and at the FBI.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court during the trial:
From at least in or about 2008 through in or about May 2016, DELLIGATTI was an associate of the Genovese Organized Crime Family of La Cosa Nostra. During this period, DELLIGATTI conspired with others to participate in and conduct the affairs of the Genovese Family through a pattern of racketeering activity that included a murder conspiracy, an extortion conspiracy, and the operation of an illegal sports betting business. For example, as part of DELLIGATTI’s participation in the Genovese Family, DELLIGATTI committed the following crimes:
From in or about May 2014 through in or about June 2014, DELLIGATTI conspired with Robert DeBello, a “made” soldier, and Ryan Ellis, an associate of the Genovese Family, to murder a neighborhood “tough guy” from the Whitestone section of Queens. DELLIGATTI sought and obtained permission from DeBello to murder the intended victim. However, instead of carrying out the murder himself, as DeBello had authorized him to do, DELLIGATTI hired a crew of hitmen from the Bronx to ambush and kill the intended victim at his residence. DELLIGATTI provided the hitmen with a loaded .38 revolver and a get-away vehicle, and offered to pay them several thousand dollars for the murder. As a result of wiretap surveillance of DELLIGATTI by the Nassau County Police Department and the Nassau County District Attorney’s Office, the crew of hitmen was apprehended in the get-away vehicle just a few blocks from the intended victim’s residence on June 8, 2014. In their vehicle, law enforcement recovered the loaded revolver, a spray bottle containing a bleach solution, and other materials.
From in or about April 2014 through in or about May 2014, DELLIGATTI and others in the Genovese Family, including DeBello and Ellis, participated in a conspiracy to use threats of violence and economic harm to extort the owners and promoter of a night club located on the rooftop of a hotel in Queens.
From at least in or about 2013 through in or about 2015, DELLIGATTI participated with others in the Genovese Family, including DeBello and Ellis, in a large-scale bookmaking and sports betting operation that took bets from bettors in Manhattan and Queens, among other locations, and made use of an offshore wireroom. During and in furtherance of this gambling operation, DELLIGATTI and Ellis brought envelopes filled with cash to DeBello, the “made” soldier with whom they were committing these crimes.
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DELLIGATTI, 40, was found guilty of conspiring to participate in the Genovese Family through a pattern of racketeering activity, conspiring to murder and attempting to murder Joseph Bonelli in aid of racketeering, conspiring to commit murder-for-hire, possessing a firearm in furtherance of those crimes of violence, and participation in an illegal gambling operation. DELLIGATTI faces a maximum potential sentence of life in prison. DELLIGATTI is scheduled to be sentenced by Judge Forrest on August 16, 2018.
DELLIGATTI’s co-defendants, Robert DeBello and Ryan Ellis, previously pled guilty before Judge Forrest to racketeering conspiracy offenses for their roles in the murder conspiracy, the extortion conspiracy, and the illegal gambling operation that are described above.
Mr. Berman praised the outstanding investigative work of the Nassau County Police Department and the Federal Bureau of Investigation. He also thanked the Nassau County District Attorney’s Office and the United States Department of State, Diplomatic Security Service, for their assistance with the prosecution.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Jordan Estes, and Jason Swergold are in charge of the prosecution.
Garfield Heights man indicted for using a firearm while dealing carfentanil and heroinRead the Press Release
A Garfield Heights man was indicted in federal court for using a firearm while dealing carfentanil and heroin, said U.S. Attorney Justin E. Herdman.
Delamar D. Williams, 36, was indicted on one count of possession with intent to distribute heroin and carfentanil, one count of using a firearm in relation to drug trafficking and one count of being a felon in possession of a firearm.
Williams had 55.2 grams of a mixture of carfentanil and heroin on Oct. 19, 2017, as well as a 9 mm SCCY CPX-2 pistol. Williams possessed the firearm in relation to his drug trafficking and was also forbidden from having it because of numerous prior convictions for drug trafficking, according to the indictment.
Prosecutors are seeking to forfeit the firearm as well as $81,587 in cash seized as part of the investigation.
This case was investigated by the Drug Enforcement Administration and the Southeast Area Law Enforcement Task Force, which is made up of officers from Bedford, Bedford Heights, Garfield Heights, Maple Heights, Solon, Oakwood and Walton Hills Police Departments. It is being prosecuted by Assistant U.S. Attorney Patrick Burke.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Frederick Man Arrested for Human SmugglingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland –A federal grand jury indicted Martir Jandres a/k/a “Tono”, age 42, of Frederick, Maryland, on a charge of conspiracy to commit human smuggling related to a years long operation to smuggle illegal aliens into the United States through Texas and then transport them throughout the country. The indictment was returned on March 16, 2018, and unsealed today upon the arrest of Jandres and the execution of a search warrant at his residence.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Andre R. Watson of Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Sheriff Charles A. Jenkins of the Frederick County Sheriff’s Office.
According to the one-count indictment, between October 2016 and February 2017, Jandres allegedly conspired with numerous people in Central America, Mexico and the United States to facilitate illegal aliens entry to the United States without inspection by bypassing United States Border Patrol checkpoints. Once in the country, the aliens were placed in stash houses until transportation could be arranged with local “load drivers” to enable the aliens to leave the border area and travel to their interior destinations. On two occasions, undercover HSI agents posed as “load drivers” to transport aliens smuggled by Jandres.
Jandres faces a maximum sentence of 10 years in prison for the conspiracy.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation along with the Frederick County Sheriff’s Office and the Internal Revenue Service. Mr. Schenning thanked Special Assistant U.S. Attorney Brian M. Fish and Assistant U.S. Attorney Judson T. Mihok, who are prosecuting the case.
Federal grand jury indicts Shreveport financial planner, Houston pastor for defrauding investors out of more than $1 millionRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced today that a federal grand jury returned a 13-count indictment charging a Shreveport financial planner and a pastor of a Houston church of bilking investors out more than $1 million.
Gregory Alan Smith, 55, of Shreveport, and Kirbyjon H. Caldwell, 64, of Houston, Texas, are charged with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Additionally, Smith and Caldwell are charged in two separate counts of money laundering. According to the indictment, Smith used his influence and status as the operator and manager of Smith Financial Group LLC in Shreveport, and Caldwell used his influence and status as pastor at a prominent Houston church to lure investors to pay more than $1 million to invest in Historical Chinese bonds. These bonds were issued by the former Republic of China prior to losing power to the communist government in 1949. They are not recognized by China’s current government and have no investment value. Smith and Caldwell promised high rates of return, sometimes three to 15 times the value of the investments. Instead of investing the funds, the defendants used them to pay personal loans, credit card balances, mortgages, vehicle purchases and other personal expenses.
The defendants each face 20 years in prison for the conspiracy to commit wire fraud count and for the wire fraud counts. They also face 10 years in prison for the conspiracy to commit money laundering count and the money laundering counts. They also face a $1 million fine, restitution, forfeiture and five years of supervised release.
The FBI investigated the case. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Federal Jury Convicts Greensboro Man for Extensive Bank Lien Theft Scheme, Money Laundering, and Aggravated Identity TheftRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, XAVIER MILTON EARQUHART, 30, a Greensboro, NC resident, was convicted following a three-day jury trial before Senior United States District Judge W. Earl Britt. The jury found EARQUHART guilty of ten counts of Bank Fraud, two counts of Engaging in Monetary Transactions Involving Criminally Derived Property and one count of Aggravated Identity Theft and Aiding and Abetting. Following the jury trial, the jury further found that the defendant was obligated to forfeit more than $1.3 Million in fraudulent proceeds, more than $100,000 in recording studio equipment, and $300,000 in gold bullion and coins.
The evidence at trial showed that, in one bank fraud scheme, the defendant forged a deed on a property owned by an out of state landowner, and then channeled the property ownership through fictitious individuals and a holding company before personally taking title to the property. The defendant then attempted to secure $495,000 in home equity loans using the property as collateral, becoming successful on three such attempts.
In a second scheme, the evidence showed that the defendant forged bank lien releases on 8 properties, in some instances, by stealing the identities of bank employees, and in other instances, using fictitious notaries. The defendant created Delaware holding companies to conceal his activities. The defendant then sold the properties off to unknowing third parties. At trial, the evidence showed that because of the defendant’s actions, some homeowners lost the funds that they had invested into the properties. Other victims were left uncertain as to the ability of their families to remain in the homes due to the cloud upon their title.
Lastly, the evidence at trial included evidence from law enforcement concerning the tracing of the defendant’s fraudulent gains. Law enforcement used a note and key found in the defendant’s Prius to uncover a hidden trove of $300,000 worth of gold, concealed in a storage unit in Spring, Texas. Law enforcement also seized various items of valuable recording studio equipment.
At sentencing tentatively set for July 2018, EARQUHART faces up to 30 years imprisonment.
The investigation of this case was conducted by the IRS Criminal Investigation, with the assistance of the Federal Deposit Insurance Corporation Office of the Inspector General, the Wake County Register of Deeds, Wake County Sheriff’s Office, United States Secret Service and the Bankruptcy Administrator for the Eastern District of North Carolina. Assistant United States Attorney William M. Gilmore represented the government in this case.
Federal Jury Convicts Former Montana Resident of Wire Fraud and Money LaunderingRead the Press Release
BUTTE – Following an eight-day trial with testimony from thirty-two government witnesses, Joseph Brent Loftis, 63, of Corona Del Mar, California, was convicted by a Montana jury of five counts of wire fraud and two counts of money laundering. Loftis faces a maximum of 20 years imprisonment for each count of wire fraud and ten years of imprisonment for each count of money laundering. He further faces a maximum $250,000 fine and up to three years of supervised release on each count. After trial, Loftis stipulated to a forfeiture order of $1,662,749.10. Chief U.S. District Judge Dana L. Christensen presided over the case.
Evidence presented at trial by Assistant United States Attorneys Chad Spraker and Adam Duerk showed that from 2009 through 2013 Loftis solicited approximately $3 million from investors based upon false representations that he owned leases on the Blackfeet Indian Reservation. Loftis also made misrepresentations regarding whether he had received a degree from the University of Oklahoma, amounts of oil being produced from wells, and whether he was using an independent accounting firm.
After receiving investor funds, Loftis typically provided investors with a few checks totaling about $1000 and then stopped payments altogether. Once investors complained, Loftis provided excuses regarding disputes about ownership or issues with drilling. In some instances, Loftis offered to return the investors’ money and entered a rescission agreement for the investment. Loftis, however, failed to return the investors’ money or issued a check cancelled through a stop payment. Loftis also falsely represented to investors that he owned oil and gas leases in Oklahoma and Texas though Loftis had defaulted on purchase agreements for the leases.
In 2011, Loftis took steps to complete a transaction known as reverse merger in which Prism would become a subsidiary of a publically traded company. Based upon Loftis’s representations that he needed capital to continue Prism’s operations until his company could receive equity in the public markets, Loftis obtained a $1.9 million bridge loan from investor funds. After Loftis received the loan proceeds, he failed to carry out the steps needed to complete the merger and kept the bridge loan proceeds while spending $190,000 of the funds on a luxury RV.
Also in 2011, Loftis relocated to Texas and began soliciting funds from investors in a newly formed company Great Northern Energy. Loftis continued to misrepresent his education and denied having a criminal record despite a 1995 felony conviction for bank fraud and false statements to a financial institution.
Sentencing is scheduled for July 20, 2018, at 9:00 a.m., in the Russell Smith Courthouse in Missoula, Montana. The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Federal Jury Convicts Drug Dealer Who Sold Deadly Heroin and Will Receive Life in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Steven Craig Whyte, 29, of Kalamazoo, was convicted by a federal jury yesterday of five crimes, including conspiring to distribute heroin, possession of a firearm in furtherance of drug trafficking, and distribution of heroin resulting in death. Because Whyte was previously convicted of a drug distribution offense, he faces a mandatory life term at sentencing.
The evidence at trial demonstrated that from late 2015 through October 2016, Whyte conspired with other individuals to sell heroin in Kalamazoo, and to obtain firearms to protect the drugs and money received from selling it. In February 2016, during the execution of a search warrant at one of the homes used by Whyte, officers found heroin, drug packaging materials, and a firearm. Images from Whyte’s phone indicated that he utilized multiple firearms in aid of his drug trafficking. On October 15, 2016, Whyte sold heroin, via an intermediary, to Adam Boomers, 29, a life-long Portage, Michigan resident, who used it and then died.
"The opioid crisis is ravaging communities around the country, and West Michigan is no different," Birge said. "We grieve Adam’s loss with his family and with his community. The serious sentence in this case will send a message that the federal government will pursue those who deal deadly drugs to the fullest extent permissible under law."
"The DEA targets individuals like Whyte, who distribute poison and cause death in our communities. This case is an example of DEA’s focus on the worst offenders in West Michigan and the nation," said Timothy J. Plancon, Special Agent in Charge, Detroit Field Division.
"This conviction was a direct result of law enforcement’s efforts to focus on heroin dealers in the local communities," said Captain Brad Misner, Kalamazoo Valley Enforcement Team. "The community is safer today because of the hard work by so many involved; from the initial onset of the case, to the arrest and search warrants, to the eventual prosecution by the federal government. Mr. Whyte will no longer be able to push his product on individuals who are struggling with addiction and have fallen victim to this senseless drug."
This case was investigated by the Drug Enforcement Administration, Kalamazoo Valley Enforcement Team, and Kalamazoo Department of Public Safety. It was prosecuted by Assistant U.S. Attorneys Justin M. Presant and Stephen P. Baker.
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned an Indictment against the following:
Loris Man Indicted on Federal Gun Charges and Hobbs Act Armed Robbery. Fuquan Thompson, age 50, of Loris, South Carolina, was charged in a three-count indictment with Hobbs Act Armed Robbery, a violation of Title 18, United States Code, Section 1951(a), possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1), and possession of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Thompson could face is imprisonment of 27 years and a fine of $250,000.00.
This case was investigated by the Horry County Sheriff’s Department, Horry County Police Department, and the Bureau of Alcohol, Tobacco, Explosives, and Firearms and is being prosecuted by Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office.
Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Cesar Omar Torres-Santiesteban of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Torres-Santiesteban could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by ICE-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Another Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Rafael Altamirano-Ruiz of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Altamirano-Ruiz could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by ICE - Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Florence Woman Indicted for Embezzling Money from Social Security Administration. Jacqueline Britt-Briggs of Florence, South Carolina, was charged in a single-count indictment with embezzling money from the Social Security Administration, a violation of Title 18, United States Code, Section 641. The maximum penalty Britt-Briggs could receive is ten years imprisonment and a fine of $250,000.00.
The case was investigated by the Office of Inspector General for the Social Security Administration. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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East Stroudsburg Man Sentenced to 27 Months’ Imprisonment for Assaulting and Fleeing from Federal Park RangersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge James Munley sentenced Damari Roulhac, age 26, of East Stroudsburg, Pennsylvania, to 27 months’ imprisonment and two years of supervised release, for one count assaulting a United States Park Ranger, and one count for fleeing from United States Park Rangers. Roulhac was convicted on September 26, 2017, following a two-day jury trial before United States District Court Judge James M. Munley.
According to United States Attorney David J. Freed, the evidence presented during the trial showed that on the evening of July 1, 2016, United States Park Rangers patrolling the Delaware Water Gap National Recreation Area encountered Roulhac and ordered him to stop his vehicle. Roulhac refused to obey the Rangers’ instructions and accelerated his vehicle towards one of the Rangers, causing him to jump out of the way. When the Ranger then attempted to detain Roulhac, he accelerated again, striking the Ranger with the vehicle while fleeing the scene of the incident.
Roulhac was able to evade apprehension on July 1, 2016. However, Rangers tracked him down days later, at the Pike County Courthouse, when Roulhac was sentenced for an unrelated DUI conviction.
The case was investigated by Rangers from the National Park Service. Assistant United States Attorneys Phillip Caraballo and Evan Gotlob prosecuted the case.
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Dow Chemical Company Settles False Claims Act Allegations for $479,000Read the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that the Dow Chemical Company has agreed to pay the United States $479,000 to settle allegations that Poly-Carb, Inc. – a former Dow subsidiary – violated the False Claims Act by submitting fraudulent materials certifications related to a federally-funded highway resurfacing project.
In 2012, Poly-Carb, Inc. (then a subsidiary of Dow) was awarded a subcontract on a federally-funded project to apply a skid-resistant adhesive to several highways throughout South Carolina. To ensure the materials conformed to contract specifications, the contract required Poly-Carb to collect samples, have them tested by an independent third party, and send certifications of the results to the South Carolina Department of Transportation (SCDOT). Between 2012 and 2013, Poly-Carb submitted certifications to SCDOT, claiming another company had performed this third-party testing. The settlement agreement resolves allegations made by the United States Department of Transportation (USDOT) and the United States Department of Justice that Poly-Carb falsified these certifications to make them appear to be from a third-party, in violation of the False Claims Act.
“This is another example of how rigorous enforcement of the False Claims Act helps protect the public’s interest and taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Beth Drake. “It also reflects our ongoing commitment to protect our state and federal transportation agencies and the vital infrastructure programs they provide.”
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.
“It is important to ensure that taxpayers get what they pay for so that the quality of products used in federally funded transportation projects is not compromised,” said Marlies T. Gonzalez, Regional Special Agent-in-Charge at the USDOT’s Office of Inspector General. “We will continue working with the USDOT, Federal Highway Administration, and our partners at the U.S. Department of Justice to promote the detection and prosecution of fraud schemes which erode public confidence in the integrity of our nation’s transportation system.”
This case was handled by Assistant United States Attorneys Brook Andrews and James Leventis. The case was investigated by Special Agent Sara Oliver of the USDOT Office of Inspector General.
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Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Dominican national pleaded guilty today and was sentenced in federal court in Boston for illegally reentering the United States after deportation.
Antonio Felipe-Vasquez, 40, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin immediately sentenced Felipe-Vasquez to time served and three years of supervised release. Felipe-Vasquez will be subject to deportation proceedings.
In 2001, Felipe-Vasquez was encountered by immigration officials while serving a sentence at the Norfolk county House of Corrections. Upon completion of that sentence, Felipe-Vasquez was placed into removal proceedings, and on Nov. 20, 2001, he was deported to the Dominican Republic.
In September 2017, Felipe-Vasquez was arrested in Lynn and charged with heroin trafficking. Upon his arrest, his fingerprints were taken, which revealed his prior deportation. Felipe-Vasquez is scheduled for trial in the state matter in April 2018.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Miguel Guillen Percel, 43, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge William G. Young scheduled sentencing for June 4, 2018.
On July 20, 2017, Percel, who, at the time, was using the alias “Carlos Colon,” was arrested for a motor vehicle violation. When law enforcement officers took “Colon’s” fingerprints, they found that they matched those of Miguel Guillen Percel, who had previously been deported in October 2009. During an interview with law enforcement, Percel admitted his true name and prior deportation.
Percel faces a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Percel will be subject to deportation hearings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
District Court Orders Long Island Company to Stop Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
The United States District Court for the Eastern District of New York entered a consent decree today barring Riddhi USA Inc., of Ronkonoma, New York, and its owner, Mohd M. Alam, from distributing adulterated and misbranded dietary supplements pending required remedial action.
The consent decree approved by the U.S. District Judge Leonard D. Wexler requires Riddhi and Alam to destroy, within 15 days, all dietary supplements in their possession, custody or control. The injunction also requires Riddhi and Alam to implement consumer safety measures before resuming the manufacturing or distributing of dietary supplements. This includes hiring an independent expert to perform a comprehensive inspection of Riddhi’s facility and requiring the expert to certify that defendants are complying with current good manufacturing practice.
The consent decree resolves a suit filed on October 23, 2017, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, Riddhi and Alam manufactured, prepared, labeled, packed, held and distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations.
“Today’s consent decree shows that we will make every effort to ensure that dietary supplement manufacturers comply with good manufacturing practices,” stated U.S. Attorney for the Eastern District of New York Richard Donoghue. “This Office is committed to safeguarding consumers from adulterated and misbranded dietary supplements.”
“The injunction entered today demonstrates the Department of Justice’s continuing efforts to protect consumers from adulterated and misbranded dietary supplements,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “The Department of Justice will continue to work with the FDA to ensure that dietary supplement manufacturers provide accurate information about what is in their products.”
According to the complaint, FDA documented numerous significant deviations from current Good Manufacturing Practice regulations during its 2017 inspection of Riddhi’s facilities, including failures to: establish product specifications for identity, purity, strength, and composition of their finished dietary supplements; conduct at least one appropriate test to verify the identity of a dietary ingredient; and establish and follow written procedures for quality control operations. The complaint alleged that an FDA inspection ending in early 2016 found similar violations.
In addition, the complaint alleged that Riddhi and Alam misbranded their dietary supplements by failing to comply with certain labeling requirements in the federal Food, Drug, and Cosmetic Act. For example, as noted in the complaint, the defendants’ products are fabricated from two or more ingredients but fail to list any ingredients on their product labels or labeling. The complaint also alleged that some of the defendants’ products, including Prenatal Formula, Osteo Gest, Neuroxygen, Inflam-Ease and All-Ease, are misbranded because the products’ label or labeling failed to declare the place of business of the manufacturer, packer or distributor.
Riddhi and Alam agreed to resolve the complaint and be bound by the consent decree permanent injunction.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Edwin Cortes of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate General Counsel for Enforcement Roselle Oberstein of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
The Defendants:
RIDDHI USA, INC.
Ronkonkoma, New YorkMOHD M. ALAM
District Court Orders Long Island Company to Stop Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
A federal court enjoined Riddhi USA Inc., of Ronkonoma, New York, and its owner, Mohd M. Alam, from distributing adulterated and misbranded dietary supplements pending required remedial action, the Department of Justice announced today.
The injunction ordered by the U.S. District Court for the Eastern District of New York requires Riddhi and Alam to destroy, within 15 days, all dietary supplements that are in their possession, custody, or control. The injunction also orders Riddhi and Alam to implement various consumer safety measures before resuming the manufacturing or distributing of dietary supplements. This includes hiring an independent expert to perform a comprehensive inspection of Riddhi’s facility and requires the expert to certify that all current good manufacturing practice deviations brought to defendants’ attention have been corrected.
The injunction stems from a complaint the Department filed on Oct. 23, 2017, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, Riddhi and Alam manufactured, prepared, labeled, packed, held, and distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations.
“The injunction entered today demonstrates the Department of Justice’s continuing efforts to protect consumers from adulterated and misbranded dietary supplements,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to ensure that dietary supplement manufacturers provide accurate information about what is in their products.”
“Today’s consent decree shows that we will make every effort to ensure that dietary supplement manufacturers comply with good manufacturing practices,” stated U.S. Attorney for the Eastern District of New York Richard Donoghue. “This Office is committed to safeguarding consumers from adulterated and misbranded dietary supplements.”
According to the filed complaint, FDA documented numerous significant deviations from current good manufacturing practice regulations during its 2017 inspection of Riddhi’s facilities, including failures to: establish product specifications for identity, purity, strength, and composition of their finished dietary supplements; conduct at least one appropriate test to verify the identity of a dietary ingredient; and establish and follow written procedures for quality control operations. The complaint alleged that an FDA inspection ending in early 2016 found deviations in current good manufacturing practice.
In addition, the complaint alleged that Riddhi and Alam misbranded their dietary supplements by failing to comply with certain labeling requirements in the federal Food, Drug, and Cosmetic Act. For example, as noted in the complaint, defendants’ products are fabricated from two or more ingredients but fail to declare any ingredients on their product labels or labeling. The complaint also alleged that some of the defendants’ products, including Prenatal Formula, Osteo Gest, Neuroxygen, Inflam-Ease, and All-Ease, are misbranded because the products’ label or labeling failed to declare the place of business of the manufacturer, packer, or distributor.
The defendants agreed to resolve the complaint and be bound by a consent decree of permanent injunction. The district court adopted the resolution and entered a permanent injunction against Riddhi and Alam.
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Edwin Cortes of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate General Counsel for Enforcement Roselle Oberstein of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Credit Repair Business Owner Sentenced to 30 Months in Prison for Tax FraudRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of JOSEPH ARNOLD MCGLYNN, JR., 33, former owner, CEO and President of McGlynn Marketing, LLC, d/b/a United Credit Consulting (“UCC”), to 30 months in prison for failing to account for and pay over employment taxes to the Internal Revenue Service (“IRS”). MCGLYNN pleaded guilty on November 28, 2017, and was sentenced earlier today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, between approximately 2009 and 2016, MCGLYNN was the owner, CEO and President of UCC, a credit repair service company located in Burnsville, Minnesota. MCGLYNN was responsible for ensuring that UCC’s Employer’s Quarterly Federal Tax Returns were filed and that employment taxes were paid. However, although MCGLYNN caused employment taxes to be withheld from the wages of UCC employees, he failed to pay over such taxes to the IRS for multiple quarters between April 30, 2014 and April 30, 2017. Instead, MCGLYNN used the money to fund a lavish lifestyle, including luxury vacations, rentals of luxury vehicles, visits to strip clubs and purchases of luxury items such as jewelry, handbags and a boat. In total, MCGLYNN failed to pay to the IRS at least $159,157 in employment taxes.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorney Michelle E. Jones prosecuted the case.
Defendant Information:
JOSEPH ARNOLD MCGLYNN, JR., 33
Burnsville, Minn.
Convicted:
- Willful failure to account for and pay over employment taxes, 2 counts
Sentenced:
- 30 months in prison
- Two years of supervised release
- $ 159,157.26 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Counterfeit Cigarette Smuggler Sentenced to PrisonRead the Press Release
Pedro Ivan Flores, 43, a citizen of Peru, was sentenced by U.S. District Court Judge William P. Dimitrouleas to 16 months in prison for smuggling counterfeit cigarettes.
Benjamin G. Greenberg. United States Attorney for the Southern District of Florida and Justin D. Green, Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA OCI), Miami Field Office, made the announcement.
Flores previously pled guilty to participating in a conspiracy, which sought to sell and dispense and cause the sale and dispensing of a counterfeit tobacco product, to wit cigarettes, the containers and labeling of which, without authorization, bore the trade names of Marlboro Reds and Newport cigarettes, tobacco products listed with the FDA pursuant to Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), all in violation of Title 18, United States Code, Section 371.
According to the court record, including a jointly filed factual statement, the investigation began in January 28, 2013, when a FDA/OCI undercover agent met with Flores in Jamaica to discuss the sale of counterfeit Marlboro brand cigarettes. Thereafter, negotiating by email, a deal to sell and ship 1,100 “master cases” of counterfeit Marlboro Reds, for a total cost of $377,300.00 was reached. To pursue the deal, agents made an initial a wire transfer in the amount of $133,190 to an account located in Dubai, United Arab Emirates for the purchase of the counterfeit cigarettes.
In August 2013, undercover agents met with a previously sentenced co-defendant Gaurav Jayaseelan, who travelled to Miami to discuss the pending sale. During the recorded meeting, Jayaseelan told the agents that he and his father, were in the cigarette and alcohol business and claimed they owned their own tobacco manufacturing plant which could manufacture any tobacco brand. Jayaseelan later sent an email offering to provide counterfeit Newport cigarettes within four to five weeks. Subsequently, at Jayaseelan’s request, two cartons of Newport cigarettes to be used as samples for the manufacturing of the counterfeits were provided to an address in India.
In January 2014, Jayaseelan emailed that they would send 1,030 master cases of Newport cigarettes for a total wholesale price of $450,625. In May 2014, the shipment was seized at Port Everglades, in coordination with t. The counterfeit cigarettes had an estimated U.S. street value of more than $5.6 million. Throughout the conspiracy, Flores, by internet communications, served as a broker and a facilitator of the sales activity.
Flores was arrested in Peru in early 2017 and extradited to the United States.
Counterfeit cigarettes, which are sold without proper registration and testing may pose a greater health risk than consumers recognize, due to the presence of contaminants either not found in products originating from the lawful manufacturers, or which are present in greater concentrations.
Mr. Greenberg commended the investigative efforts of FDA-OCI and thanked the U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Peruvian Ministry of Justice and U.S. Marshals Service for their assistance in this matter. This matter was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Clayton man sentenced to 14 years in prison for trafficking methamphetamine, firearms chargesRead the Press Release
ALEXANDRIA, La. – United States Attorney Alexander C. Van Hook announced that a Clayton man was sentenced last week to 168 months in prison for possessing methamphetamine with intent to distribute and firearms charges.
Robert L. Snyder, 41, of Clayton, La., was sentenced Thursday, March 22, 2018, by U.S. District Judge Dee D. Drell on one count of possession with intent to distribute methamphetamine, one count of possession of an unregistered firearm and two counts of possession of a firearm by a convicted felon. He was also sentenced to two years of supervised release. Evidence admitted at the three-day trial that ended November 29, 2017 revealed that law enforcement agents learned that illegal drugs were being sold out of a Clayton residence. After a search of Snyder’s home, police found more than 100 grams of methamphetamine along with numerous firearms, $1,600 in cash and $10,000 in money orders. Law enforcement revisited the property on March 4, 2014 and found more firearms in the home. In total, law enforcement found 15 weapons and ammunition. Among the firearms was a .22 caliber rifle with the serial number removed.
The U.S. Marshals Service, FBI, ATF and the Concordia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Mary J. Mudrick prosecuted the case.
Chamberlain Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, man has been indicted by a federal grand jury for two counts of Aggravated Sexual Abuse of a Child.
James Blue, Jr., a/k/a “BJ”, age 37, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $500,000 fine, up to life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between 2011 and 2015, Blue knowingly engaged in, and attempted to engage in, sexual acts with two separate victims who has not attained the age of 12.
The charges are merely accusations and Blue is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Blue was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Canton man sentenced to more than 10 years in prison for using firearms while trafficking crack cocaineRead the Press Release
A Canton man was sentenced to more than 10 years in federal prison for drug and firearms crimes, said U.S. Attorney Justin E. Herdman.
Jack D. Wise, 40, was sentenced to 130 months in prison. He was previously found guilty of possession with intent to distribute crack cocaine and using a firearm in furtherance of drug trafficking.
Wise had 28 grams of crack cocaine, a handgun, a shotgun and more than 170 rounds ammunition when he was arrested on March 9, 2017, despite a previous conviction in Stark County Common Pleas Court for trafficking in LSD, according to the court documents.
“People who use firearms as a tool of their drug trafficking doubly put the community at risk,” Herdman said. “The ATF, Canton Police Department and the Stark County Sheriff’s Office did a tremendous job and have made our community safer.”
This case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the ATF, Canton Police Department and the Stark County Sheriff’s Office.
California Woman Sentenced to Lengthy Prison Term for Fraud and Tax EvasionRead the Press Release
PHOENIX – On March 28, 2018, U.S. District Judge Diane J. Humetewa sentenced Farzaneh Akhavi, 59, to 84 months in prison and ordered her to pay $1.7 million in restitution. Akhavi had previously pleaded guilty to bank and wire fraud, transactional money laundering, and tax evasion. Akhavi was immediately taken into custody.
Evidence showed that Akhavi used her influence to systematically defraud victims out of $1.7 million. First, she convinced victims to move from Orange County, Cal. to the Phoenix metropolitan area, using one victim’s name and Social Security number to open credit accounts and take out loans. Akhavi further used the victims’ money to buy a car and a house for herself, two properties for her daughter, items at high end clothing stores, and on travel related expenses. She convinced the victims to give her additional money by falsely promising to form a business partnership that included operating a restaurant and museum in Mesa, Ariz. She also exaggerated her political connections in an effort to convince the victims that she would advance their political careers in Arizona. Last, she committed tax evasion by failing to file taxes and account for the money she stole from the victims. In 2017, Akhavi purported to enter into a plea agreement that would have resulted in a prison sentence of less than 84 months, but the Court rejected it after discovering Akhavi had included a notation on the plea agreement, handwritten in Farsi, that translated to “innocent.” The final plea agreement in this case did not include such a notation.
“Through lies and deceit, Akhavi financially and emotionally devastated the victims,” stated First Assistant United States Attorney Elizabeth A. Strange. “The seven-year sentence in this case appropriately reflects the magnitude and brazen nature of her crimes.”
The investigation in this case was conducted by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The prosecution was handled by Kevin M. Rapp and Mark K. Kokanovich, Assistant United States Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR14-01066-PHX-DJH (MHB)
RELEASE NUMBER: 2018-031_ Akhavi
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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.
Buffalo Man Sentenced on Gun ChargeRead 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 Brandon Dell, 27, of Buffalo, NY, who was convicted of possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 72 months in prison by Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000.
Assistant U.S. Attorneys Timothy C. Lynch and Patricia Astorga, who handled the case, stated that the defendant was arrested on February 11, 2014, after he sold a quantity of cocaine to an individual working with the Drug Enforcement Administration. After the sake was complete, DEA agents followed Dell to his girlfriend’s residence on Newfield Street in Lackawanna.
During a search of the residence, agents and Lackawanna Police officers recovered 633 grams of cocaine; 24 grams of marijuana; approximately $22,225 in United States currency; two digital scales; a money counter; three firearms; ammunition; and two ballistic vests. In addition, agents seized gold and silver valued at approximately $12,000.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Lackawanna Police Department, under the direction of Chief James Michel.
Barclays Agrees to Pay $2 Billion in Civil Penalties to Resolve Claims for Fraud in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
BROOKLYN, NY – The United States has reached agreement with Barclays Capital, Inc. and several of its affiliates (together, Barclays) to settle a civil action filed in December 2016 in which the United States sought civil penalties for alleged conduct related to Barclays’ underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. Barclays will pay the United States two billion dollars ($2,000,000,000) in civil penalties in exchange for dismissal of the Amended Complaint.
Following a three-year investigation, the complaint in the action, United States v. Barclays Capital, Inc., alleged that Barclays caused billions of dollars in losses to investors by engaging in a fraudulent scheme to sell 36 RMBS deals, and that it misled investors about the quality of the mortgage loans backing those deals. It alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud, wire fraud, bank fraud, and other misconduct.
Agreement has also been reached with the two former Barclays executives who were named as defendants in the suit: Paul K. Menefee, of Austin, Texas, who served as Barclays’ head banker on its subprime RMBS securitizations, and John T. Carroll, of Port Washington, New York, who served as Barclays’ head trader for subprime loan acquisitions. In exchange for dismissal of the claims against them, Menefee and Carroll agree to pay the United States the combined sum of two million dollars ($2,000,000) in civil penalties.
The settlement was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Laura S. Wertheimer, Inspector General for the Federal Housing Finance Agency (FHFA-OIG).
“This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct,” stated United States Attorney Donoghue. “The substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS.”
“The actions of Barclays and the two individual defendants resulted in enormous losses to the investors who purchased the Residential Mortgage-Backed Securities backed by defective loans,” stated FHFA Inspector General Wertheimer. “Today’s settlement holds accountable those who waste, steal or abuse funds in connection with FHFA or any of the entities it regulates. We are proud to have partnered with the U.S. Department of Justice and the U.S Attorney’s Office for the Eastern District of New York on this matter.”
The scheme alleged in the complaint involved 36 RMBS deals in which over $31 billion worth of subprime and Alt-A mortgage loans were securitized, more than half of which loans defaulted. The complaint alleged that in publicly filed offering documents and in direct communications with investors and rating agencies, Barclays systematically and intentionally misrepresented key characteristics of the loans it included in these RMBS deals. In general, the borrowers whose loans backed these deals were significantly less creditworthy than Barclays represented, and these loans defaulted at exceptionally high rates early in the life of the deals. In addition, as alleged in the complaint, the mortgaged properties were systematically worth less than what Barclays represented to investors. These are allegations only, which the Defendants dispute, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The government’s case has been handled by this Office’s Civil Division. Senior Counsel F. Franklin Amanat, and Assistant United States Attorneys Matthew R. Belz, Charles S. Kleinberg, Evan P. Lestelle, Matthew J. Modafferi, Josephine M. Vella and Alex S. Weinberg have been in charge of the litigation. Mr. Donoghue thanks the FHFA-OIG for its assistance in conducting the investigation in this matter.
E.D.N.Y. Docket No. 16-CV-7057 (KAM/JO)
Link to the original press release announcing the filing of the suit: https://www.justice.gov/usao-edny/pr/united-states-sues-barclays-bank-recover-civil-penalties-fraud-sale-residential
Barclays Agrees to Pay $2 Billion in Civil Penalties to Resolve Claims for Fraud in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
The United States has reached agreement with Barclays Capital, Inc. and several of its affiliates (together, Barclays) to settle a civil action filed in December 2016 in which the United States sought civil penalties for alleged conduct related to Barclays’ underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007. Barclays will pay the United States two billion dollars ($2,000,000,000) in civil penalties in exchange for dismissal of the Amended Complaint.
Following a three-year investigation, the complaint in the action, United States v. Barclays Capital, Inc., alleged that Barclays caused billions of dollars in losses to investors by engaging in a fraudulent scheme to sell 36 RMBS deals, and that it misled investors about the quality of the mortgage loans backing those deals. It alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud, wire fraud, bank fraud, and other misconduct.
Agreement has also been reached with the two former Barclays executives who were named as defendants in the suit: Paul K. Menefee, of Austin, Texas, who served as Barclays’ head banker on its subprime RMBS securitizations, and John T. Carroll, of Port Washington, New York, who served as Barclays’ head trader for subprime loan acquisitions. In exchange for dismissal of the claims against them, Menefee and Carroll agree to pay the United States the combined sum of two million dollars ($2,000,000) in civil penalties.
The settlement was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Laura S. Wertheimer, Inspector General, of the Federal Housing Finance Agency Office of the Inspector General (FHFA-OIG).
“This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct,” stated United States Attorney Donoghue. “The substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS.”
“The actions of Barclays and the two individual defendants resulted in enormous losses to the investors who purchased the Residential Mortgage-Backed Securities backed by defective loans,” stated FHFA-OIG Inspector General Wertheimer. “Today’s settlement holds accountable those who waste, steal or abuse funds in connection with FHFA or any of the entities it regulates. We are proud to have partnered with the U.S. Department of Justice and the U.S Attorney’s Office for the Eastern District of New York on this matter.”
The scheme alleged in the complaint involved 36 RMBS deals in which over $31 billion worth of subprime and Alt-A mortgage loans were securitized, more than half of which loans defaulted. The complaint alleged that in publicly filed offering documents and in direct communications with investors and rating agencies, Barclays systematically and intentionally misrepresented key characteristics of the loans it included in these RMBS deals. In general, the borrowers whose loans backed these deals were significantly less creditworthy than Barclays represented, and these loans defaulted at exceptionally high rates early in the life of the deals. In addition, as alleged in the complaint, the mortgaged properties were systematically worth less than what Barclays represented to investors. These are allegations only, which the Defendants dispute, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The government’s case has been handled by this Office’s Civil Division. Senior Counsel F. Franklin Amanat, and Assistant United States Attorneys Matthew R. Belz, Charles S. Kleinberg, Evan P. Lestelle, Matthew J. Modafferi, Josephine M. Vella and Alex S. Weinberg have been in charge of the litigation. Mr. Donoghue thanks the FHFA-OIG for its assistance in conducting the investigation in this matter.
E.D.N.Y. Docket No. 16-CV-7057 (KAM/JO)
The press release from the Eastern District of New York orignially announcing the filing of the suit can be found here.
Barbour County woman admits to her role in a firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carla Denise Jones, of Volga, West Virginia, admitted today to her role in a firearms theft and sale scheme, United States Attorney Bill Powell announced.
Jones, age 55, pled guilty to one count of “Unlawful Possession of Firearm.” Jones, being a person prohibited from possessing a firearm, admitted to possessing two pistols, two rifles, and a shotgun in Barbour County in February 2017.
Jones faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Man Sentenced to 11 Years in Prison for Bank RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Tyrone Kevin Gregg, age 49, of Baltimore, Maryland, to eleven years in prison, followed by three years of supervised release for bank robbery while on supervised release for a prior federal conviction. Gregg previously pleaded guilty to one count of bank robbery and specifically admitted to robbing or attempting to rob eight other banks in Maryland and Virginia from December 2016 through June 2017. Gregg will be required to pay restitution to the victim banks.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Chief Tim Altomare of the Anne Arundel County Police Department; Chief J. Thomas Manger of Montgomery County Police Department; and Chief Edwin C. Roessler Jr. of the Fairfax County Police Department.
According to his plea agreement, on February 2, 2017 at approximately 10:50 am, Gregg entered a bank in Olney, Maryland where he approached the teller and said, “Give me all the money or I’ll blow your head off.” The teller complied, handing over cash from the till, and Gregg fled.
Gregg was indicted for committing nine bank robberies in Maryland and Virginia. In pleading guilty to the February 2017 robbery, Gregg acknowledged he committed the other eight bank robberies listed in the indictment—several of which also involved threats of violence as well as Gregg’s statements that he had a gun.
At the time of the robberies, Gregg was under conditions of supervised release following a 54-month prison sentence imposed by the Honorable Catherine C. Blake in the U.S. District Court for the District of Maryland as a result of convictions for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft. The 11-year sentence imposed by the Court also reflects Gregg’s punishment for violating the condition of supervised release requiring him not to commit and federal, state, and local crimes.
Acting United States Attorney Stephen M. Schenning commended the FBI, Baltimore County Police Department, Anne Arundel County Police, Montgomery County Police and Fairfax County Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Riley and Tamera Fine who are prosecuting the case.
Armed Robber Sentenced to 78 Months in Federal PrisonRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jaquan Latrel Samuel a/k/a “Trey,” a/k/a “Trap,” age 30, of Hartsville, SC, was sentenced in federal court in Florence, South Carolina, for Robbery of United States Government Property and Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence. United States District Judge Bryan Harwell, of Florence, sentenced Samuel to 78 months in federal prison with 5 years of supervised release to follow along with $400.00 in restitution to be paid to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The evidence presented at the guilty plea hearing established that on March 29, 2017, Jaquan Samuel robbed a person having lawful charge, custody, and control of $400.00 belonging to ATF by use of a firearm. During the hearing, Agents presented evidence that Samuel pointed a firearm at the victim in order to force the victim to give up the cash.
The case was investigated by agents of ATF, the Darlington County Sheriff’s Office, and the Hartsville Police Department. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell and William Lewis of the Columbia office handled the case.
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Arizona-Based Peer-To-Peer Bitcoin Trader Convicted of Money LaunderingRead the Press Release
PHOENIX – On March 28, 2018, Thomas Mario Costanzo, a.k.a. Morpheus Titania, of Mesa, Ariz., was found guilty of five counts of money laundering by a federal jury in Phoenix. The case was tried before U.S. District Judge G. Murray Snow. Sentencing is set before Judge Snow on June 11, 2018.
The evidence at trial showed that federal agents initiated an investigation of Costanzo in 2014, after identifying an advertisement he posted on a peer-to-peer bitcoin exchange website. In the advertisement, Costanzo advertised that he was willing to engage in cash transactions up to $50,000. When undercover federal agents approached Costanzo and told him that they were drug dealers, Costanzo provided them with bitcoin and told them it was a great way to limit their exposure to law enforcement. The jury found that over a two-year period, Costanzo took $164,700 in cash from the agents (whom he believed to be heroin and cocaine traffickers) and exchanged it for bitcoin in order to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds. The evidence at trial also showed that Costanzo used bitcoin to purchase drugs from others and that he provided bitcoin to individuals who were buying drugs via the internet.
The evidence at trial also showed how bitcoin operates. Bitcoin is a decentralized form of electronic currency. Bitcoin may be used for legitimate purposes, and anyone can obtain bitcoin from a commercial on-line exchange by paying about 1.5% as a commission and providing identity information to the exchange. In contrast, Costanzo charged between 7% and 10% in his peer-to-peer transactions and did not learn his customers’ identities.
Each of the five convictions for money laundering carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. The bitcoin involved in the final transaction is also subject to forfeiture by the United States.
The investigation in this case was jointly conducted by Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Scottsdale Police Department, with assistance from the Maricopa County Sheriff’s Office and the United States Postal Inspection Service. The prosecution was handled by Carolina Escalante, Gary Restaino, and Matthew Binford, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00585-PHX-GMS
RELEASE NUMBER: 2018-030_Costanzo
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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.
Ansonia Man Admits Participation in Naugatuck Valley Crack Distribution RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARQUICE RUMLEY, 27, of Ansonia, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
According to court documents and statements made in court, RUMLEY was a member of a drug trafficking organization that trafficked large quantities of crack cocaine throughout the Naugatuck Valley. The investigation revealed that members of the organization shared the same cellphone to service drug customers in shifts over a 24-hour period. Members of the drug trafficking organization also shared vehicles and serviced customers together. Between May and September 2017, investigators made multiple controlled purchases of crack from RUMLEY and other members of the drug trafficking organization.
RUMLEY was arrested on November 17, 2017.
Judge Meyer scheduled sentencing for July 3, 2018, at which time RUMLEY faces a maximum term of imprisonment of 20 years. RUMLEY is released on a $25,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Ansonia and Derby Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Frank Lara, 45, of Albuquerque, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Lara and co-defendant Esmeralda Dominguez, 33, of Glendale, Ariz., were charged by criminal complaint in July 2017, with methamphetamine trafficking offenses. According to the complaint, Lara and Dominguez distributed approximately 56.09 grams of 99% pure methamphetamine to an individual working with law enforcement on July 15, 2016, in Dona Ana County, N.M.
Lara and Dominguez subsequently were charged in a two-count indictment filed on Oct. 19, 2017, with participating in a conspiracy to distribute methamphetamine from July 14, 2016 through July 15, 2016, and distributing methamphetamine on July 15, 2016. According to the indictment, the defendants committed the crimes in Dona Ana County.
During yesterday’s proceedings, Lara pled guilty to the indictment without the benefit of a plea agreement. Dominguez previously entered a similar guilty plea on Feb. 20, 2018. At sentencing, each of the defendants faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. Sentencing hearings have yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DEA and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez.