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3 May 2018
Maine Men Sentenced for Illegally Trafficking American EelsRead the Press Release
Today, William Sheldon was sentenced in federal district court in Portland, Maine, to six months in prison followed by three years supervised release for trafficking juvenile American eels, also called “elvers” or “glass eels,” in violation of the Lacey Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division.
Sheldon was also ordered to pay a fine of $10,000, forfeit $33,200 in lieu of a truck he used during the crime, and may not possess a license to purchase or export elvers as a special condition of his supervised release. Also sentenced today for elver trafficking offenses was Timothy Lewis, who received a sentence of six months in prison followed by three years supervised release, with the special condition that he too may not possess a license to purchase or export elvers. Lewis was also ordered to pay a $2500 fine. Thomas Reno was also sentenced today to one year probation.
In the factual statement accompanying his guilty plea in October 2017, Sheldon, a licensed Maine elver dealer, admitted to trafficking nearly $550,000 worth of illegal elvers, and to taking specific steps to evade law enforcement detection. Lewis admitted to trafficking nearly $500,000 worth of illegal elvers, and Reno admitted to trafficking over $100,000 worth of illegal elvers.
“Today’s sentences establish that the United States will not tolerate interstate and international transactions involving illegally taken wildlife,” said Acting Assistant Attorney General Wood. “Despite their best efforts to evade law enforcement, these defendants were ultimately brought to justice, and we are very proud to have worked with our partners at the federal, state and local level to achieve this result.”
“With today’s sentencings, the success of Operation Broken Glass continues,” said Acting Assistant Director Edward Grace for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “By working with our partners, we are actively working to dismantle an international wildlife trafficking scheme that not only harms American eels, but U.S. business owners and others who rely on healthy ecosystems for both ecological and economical purposes. Together, we will continue to protect native wildlife and our national resources for the continuing benefit of the American people."
These sentences were the result of “Operation Broken Glass,” a multi-jurisdiction United States Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for twenty-one individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver, and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Operation Broken Glass targeted illegal elver poaching in states without open fisheries, and the subsequent illegal transport and export of those elvers.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department, and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.
Los Lunas Man Sentenced to Prison for Assaulting Isleta Pueblo WomanRead the Press Release
ALBUQUERQUE – Brandon J. Todd, 36, of Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for his conviction for assaulting an intimate partner by strangulation or suffocation. Todd will be on supervised release for three years after completing his prison sentence.
The Isleta Pueblo Tribal Police Department arrested Todd on Aug. 1, 2017, and charged him in a criminal complaint with assaulting an intimate partner by strangulation and domestic assault by a habitual offender. According to the complaint, Todd assaulted the victim, an Isleta Pueblo woman, on July 26, 2017, in the Isleta Pueblo within Bernalillo County, N.M., by throwing items at her head and strangling her with his arms. The victim suffered bruising to her eyelids, red marks and swelling on her left temple, and a bump on her head.
Todd was indicted on Sept. 21, 2017, and was charged with assaulting an intimate partner by strangulation or suffocation. According to the indictment, Todd committed the crime on July 25, 2017, on the Isleta Pueblo in Bernalillo County.
On Jan. 18, 2018, Todd pled guilty to the indictment and admitted that on July 25, 2017, he strangled the victim by wrapping his legs around her legs, putting his arms around her neck, and applying pressure and squeezing her neck. Todd further admitted that he caused the victim to suffer pain, and impeded her normal breathing and blood circulation.
This case was investigated by the Isleta Pueblo Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Lewis County woman sentenced for her role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Makyna Kancso, of Crawford, West Virginia, was sentenced today to 15 months incarceration for distributing oxycodone, United States Attorney Bill Powell announced.
Kancso, age 23, pled guilty to one count of “Distribution of Oxycodone” in September 2017. She admitted to distributing oxycodone in Upshur County in June 2015.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded 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.
Senior U.S. District Judge Irene M. Keeley presided.
Lawrence Woman Pleads Guilty to Making False Statements on Naturalization ApplicationRead the Press Release
BOSTON – A Lawrence woman pleaded guilty today in federal court in Boston to making false statements on her naturalization application.
Francisca De La Cruz, 50, pleaded guilty to one count of making false statements in an immigration document. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for July 26, 2018.
On Nov. 25, 2013, De La Cruz submitted an Application for Naturalization in which she omitted the fact that she had been arrested and criminally charged in 2006, and that when she was arrested, she identified herself to police as “Mercedes Abrue,” which was a false name.
The charge provides for a sentence of no greater than five years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Lathrop Man Sentenced for $1.7 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Lathrop, Mo., man was sentenced in federal court today for a $1.7 million fraud scheme related to the sale of his business.
Todd Edwin Rood, 53, of Lathrop, was sentenced by U.S. District Judge Gary A. Fenner to four years in federal prison without parole. The court also ordered Rood to pay $1,347,608 in restitution and a money judgment to the government of $1,207,979, which covers his gain.
Rood, the former owner of Rood Machine & Engineering (RME) in Kearney, Mo., pleaded guilty to application fraud on Dec. 6, 2017. Rood admitted that he made false statements to the purchaser’s bank about his assets and liabilities during the sale of his business in a scheme to defraud RME’s buyers and their financial institution. The loss to the bank and the buyers was $1,347,608.
The victims of Rood’s fraud scheme agreed to purchase RME for $2,050,0001 based on his financial documents, which overstated RME’s financial vitality. The purchasers sought a $1,744,000 loan; to obtain the loan, they were required to infuse RME with $200,000 cash. In addition, the purchasers paid $62,000 in closing costs to obtain the loan. The loan was guaranteed by the Small Business Administration.
According to court documents, the purchasers also undertook a “quick sale” of their home in Georgia to buy RME on the timetable set forth by Rood, who falsely claimed to have terminal colon cancer. They incurred a loss of $40,000 on their home as a result.
Rood falsified documents in 2015 and 2016 outlining the assets and liabilities of his business. According to court documents, Rood had his bookkeeper classify tow loans for $121,327 as income, and to re-classify $120,000 in loans from his parents in 2013 and 2014 as income in 2014. Rood also directed his bookkeeper to record as income seven fictitious sales in 2015 totaling $342,500. By altering his bookkeeping, Rood inflated his income by approximately $583,827. All of this was in advance of the sale in order to inflate his income, lower his liabilities, and enhance the appearance of Rood’s business to a prospective buyer.
Under the terms of his plea agreement, Rood must pay the purchasers $262,000 in restitution for their closing costs and cash infusion into RME, which they made in reliance on the information underlying Rood’s false certification to which he is pleading guilty.
This case was prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI.
Laplace Man Indicted on Firearms and Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that GARRETT STEPHENS, age 35, of LaPlace, was indicted today by a federal grand jury for charges of distributing and conspiring to distribute methamphetamine. STEPHENS was also indicted for possessing a firearm during a drug trafficking crime, and other offenses.
According to the indictment, since August 30, 2017, STEPHENS conspired to distribute and possess with the intent to distribute more than fifty grams of methamphetamine. In addition, STEPHENS is charged with distribution of five grams or more of methamphetamine and distribution of fifty grams or more of methamphetamine.
STEPHENS is also charged with possessing a firearm during a drug trafficking crime, namely, a Kel-Tech .380 caliber handgun. STEPHENS is charged with being a felon in possession of a firearm, based on a prior drug felony conviction in St. James Parish.
If convicted of the drug conspiracy, STEPHENS faces a maximum term of imprisonment of life imprisonment, a fine of up to $10,000,000, at least five years of supervised release, and a mandatory $100 special assessment. If convicted of possessing a firearm during a drug trafficking crime, STEPHENS faces a maximum term of imprisonment of life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a mandatory $100 special assessment. If convicted of being a felon in possession of a firearm, STEPHENS faces a maximum term of imprisonment of ten years, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
Keshena Man Indicted for Involuntary Manslaughter on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on May 1, 2018, a federal grand jury returned a one-count indictment against a man involved in a fatal motor vehicle accident in the Legend Lake area of the Menominee Indian Reservation. The indictment charges Saswaen Waukechon (age: 38) of Keshena, an enrolled member of the Menominee Indian Tribe of Wisconsin, with Involuntary Manslaughter, in violation of Title 18, United States Code, Section 1112. If convicted, Waukechon faces up to 8 years in prison, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about January 13, 2018, while driving under the influence of an intoxicant, Waukechon was involved in a single-vehicle accident that resulted in the death of a passenger.
The Menominee Tribal Police Department, Wisconsin State Patrol, Wisconsin State Laboratory of Hygiene, and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Kentucky Man Charged with Attempting to Fraudulently Obtain $1 Million from Victims' FundRead the Press Release
CINCINNATI – A federal grand jury has charged Matthew Ashcraft, also known as Andrew McCormick, 32, of Covington, Ky., with wire fraud and aggravated identity in an indictment returned here yesterday. Ashcraft, who was arrested today by FBI agents, allegedly devised a scheme in attempt to defraud a victims’ fund in a lawsuit against the Roman Catholic Diocese of Covington.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
In 2003, a lawsuit was settled in the case of John Doe, et. al. v. Roman Catholic Diocese of Covington. As part of the settlement, a $90 million fund was created for victims of abuse. A minor’s fund of $4.5 million was created for those victims who were minors during the claim period. Submissions to the fund were available until 2015.
According to the indictment, in 2006, Ashcraft filed a claim seeking compensation for alleged abuse involving the Roman Catholic Diocese of Covington, et. al. The claim was approved for an award to Ashcraft in 2007 in the amount of $750,000.
In 2014, Ashcraft allegedly obtained the birth certificate of another individual, created an email address in that person’s name, and submitted a fraudulent claim for compensation in the Catholic Diocese of Covington lawsuit. Using the victim’s name, date of birth and social security number, Ashcraft caused the submission of a compensation request for approximately $1 million.
Ashcraft is charged with one count of wire fraud, a crime punishable by up to 30 years in prison, and one count of aggravated identity theft, which carries a potential additional two years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Christy L. Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Jury Finds Vallejo Man Guilty of Passing Counterfeit CurrencyRead the Press Release
SACRAMENTO, Calif. — A federal jury found John Lamont Winn, 53, of Vallejo, guilty today of passing counterfeit $100 bills, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, on June 13, 2017, Winn and two associates passed approximately $6,600 over six transactions in less than one hour at a casino in Lincoln, California. Those bills were detected as counterfeit by the casino’s bank. On June 16, 2017, Winn and another associate passed approximately $29,200 in counterfeit currency at two banks in Vallejo. The bills were held aside by the bank on the basis of their appearance, and they were later determined by the Secret Service to be counterfeit.
This case is the product of an investigation by the United States Secret Service. Assistant U.S. Attorneys Matthew G. Morris and Quinn Hochhalter are prosecuting the case.
Winn is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on August 2, 2018. Winn faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Convicts Jamaican National of Naturalization FraudRead the Press Release
On April 25, 2018, a federal jury in Miami convicted Michael Roy Fraser, a Jamaican national, of naturalization fraud.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; and Linda M. Swacina, Miami and Caribbean District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Fraser was convicted, at trial, of Procurement of Citizenship or Naturalization Unlawfully, in violation of Title 18, United States Code, Section 1425(a) and Misuse of Evidence of Citizenship or Naturalization, in violation of Title 18, United States Code, Section 1423.
According to evidence presented at trial, in 2007, Fraser, a Jamaican national, paid a U.S. citizen between $8,000 and $10,000 to enter into a fraudulent marriage, so he could unlawfully obtain U.S. residency and qualify for citizenship. Based on the fraudulent marriage, Fraser acquired residency, and in 2013, he became a U.S. citizen. About two months after obtaining a U.S. passport, Fraser filed for divorce against his U.S. citizen spouse and sooner after married the mother of his child, also a Jamaican national. Fraser then filed immigration paperwork to have his Jamaican-citizen spouse obtain U.S. legal permanent residency.
During a review of Fraser’s Jamaican spouse’s application for permanent residency, a USCIS officer detected various discrepancies that ultimately led to the discovery of the fraud. Specifically, the officer noticed that Fraser’s new Jamaican spouse claimed to have been living with Fraser during a time Fraser claimed to be married to his previous, U.S. citizen spouse. Further, the officer discovered that Fraser and his Jamaican spouse had a child together, who was born a year before Fraser’s fraudulent marriage took place, and which Fraser failed to disclose throughout his own applications to become a permanent resident and U.S. citizen
This matter was referred to USCIS Fraud Detection National Security (FDNS) immigration officers who worked closely with U.S. Immigration and Customs Enforcement (ICE) agents to investigate the fraudulent scheme. USCIS works with law enforcement and intelligence community partners to resolve potential fraud and national security and public safety concerns and aggressively pursues benefit fraud cases in collaboration with federal law enforcement agencies.
Sentencing is scheduled for July 10, 2018 at 2:00 p.m., before U.S. District Court Judge Beth F. Bloom, in Miami.
Mr. Greenberg commended the investigative efforts of ICE-HSI and USCIS. This case is being prosecuted by Assistant U.S. Attorney David Turken and ICE Special Assistant United States Attorney Monica Atkins.
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.
Indictment: Kansas EMT Stole Morphine from VialsRead the Press Release
WICHITA, KAN. – An EMT in Jackson County, Kan., is charged with stealing morphine from vials, U.S. Attorney Stephen McAllister said.
Colby W. Vanwagoner, 32, Mayetta, Kan., is charged with two counts of tampering with consumer products and one count of making a false statement to federal investigators. A grand jury indictment returned April 26 and unsealed May 2 alleges the crimes took place while Vanwagoner was working for the Jackson County Emergency Medical Service in Holton, Kan.
The indictment alleges Vanwagoner tampered with vials of morphine sulfate. It is alleged he replaced morphine with saline solution and put the vials back into narcotic boxes on ambulances or in office stocks. Tests showed the concentration of morphine in vials that had been tampered with was low as 1 percent or less.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the on the tampering charges and up to five years and a fine up to $250,000 on the charge of lying to investigators. The Food and Drug Administration – Office of Criminal Investigations investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE DECIDERIO ALVARADO-CARDOZA, age 31, a citizen of Honduras, pleaded guilty yesterday to a one-count indictment charging him with illegal reentry of a removed alien after deportation, in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, on February 26, 2018, ALVARADO-CARDOZA was found to have reentered the United States after he was been previously deported on January 8, 2011.
ALVARADO-CARDOZA faces a term of imprisonment of up to two years, a fine of up to $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for June 13, 2018.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Spiro Latsis is in charge of the prosecution.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Duane A. Evans announced that JOSE REYES-GABRIELES, age 33, a native of Honduras, was sentenced today after pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Lance M. Africk sentenced REYES-GABRIELES to 6 months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on December 7, 2017, REYES-GABRIELES was found in the United States after having been previously deported from the United States on April 17, 2008.
U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Hartford Man Sentenced to 46 Months in Prison for Distributing Drugs to 2 Overdose VictimsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN MORALES, 45, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by five years of supervised release, for distributing drugs involved in two overdose deaths in December 2016.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on December 24, 2016, Hartford police officers and emergency medical personnel responding to reports of unresponsive individuals discovered two male overdose victims in different locations on Zion Street in Hartford. A 33-year-old victim was pronounced deceased shortly after he was discovered in the rear parking lot of an apartment complex on Zion Street. At the scene, officers seized various items of drug-related paraphernalia. Officers found a 25-year-old victim on the rear porch of an apartment on Zion Street. The victim was transported to the hospital and later pronounced deceased.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the 33-year-old victim’s death was caused by a combination of cocaine, heroin and fentanyl, and the 25-year-old victim’s death was caused by a combination of cocaine, ethanol and fentanyl.
The investigation revealed that MORALES supplied fentanyl-laced heroin that both victims consumed shortly before they died.
In January and February 2017, members of the FBI’s Northern Connecticut Violent Crime Gang Task Force conducted seven controlled purchases of heroin from MORALES. Subsequent lab analysis confirmed the presence of fentanyl in six of the seven controlled purchases.
MORALES was arrested on a federal complaint on February 16, 2017. On January 29, 2018, he pleaded guilty to one count of distribution of heroin and fentanyl.
Judge Bryant ordered MORALES, who is released on a $100,000 bond, to report to prison on June 6.
The FBI’s Northern Connecticut Violent Crime Gang Task Force includes members from the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Hamden Man Sentenced to 30 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MIQUEL LEWIS, 21, of Hamden, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, on September 6, 2017, LEWIS was arrested after members of the DEA New Haven Task Force and Hamden Police Department conducted a court-authorized search of LEWIS’s Hamden residence and seized 510 bags of heroin, approximately five grams of crack cocaine, narcotics paraphernalia, a loaded .38 caliber revolver and a loaded .45 caliber revolver. A subsequent search of a rental vehicle located in the driveway of the residence revealed a loaded .40 caliber firearm, which had been reported stolen in New Haven.
On January 30, 2018, LEWIS pleaded guilty to one count of possession of heroin and cocaine base (“crack”) with intent to distribute, and one count of possession of a firearm by a convicted felon.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Grant County man sentenced to nearly six years for meth distribution and a firearm violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marvin Ellis Grubb, Jr., of Maysville, West Virginia, was sentenced this week to 70 months incarceration for distributing methamphetamine and illegally possessing a firearm, United States Attorney Bill Powell announced.
Grubb, age 41, pled guilty to one count of “Possession with the Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of a Firearm” in March 2018. Grubb admitted to distributing more than 50 grams methamphetamine. He also admitted to illegally possessing a .357 caliber pistol. The crimes occurred in August 2016 in Grant County.
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.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Potomac Highlands Drug & Violent Crimes Task Force, and the Grant County Sheriff’s Office.
U.S. District Judge John Preston Bailey presided.Granby Man Sentenced to 360 Years in Prison for Sexual Exploitation of Five ChildrenRead the Press Release
SYRACUSE, NEW YORK – Clif J. Seaway, age 61, of Granby, New York, was sentenced today to serve 360 years in prison in connection with his convictions for two counts of Conspiracy to Sexually Exploit Children and ten counts of Sexual Exploitation of a Child, following a four-day jury trial in December 2017, announced United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II, and Kevin M. Kelly, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations (HSI). Seaway was also sentenced to serve a life-term of supervised release if he is released from imprisonment. He is also required to register as a sex offender.
The evidence at trial established that Clif J. Seaway conspired with co-defendants Tammy Lamere and Tammy Martin to sexually exploit five minor children from 2001 through 2013 in Oswego, Onondaga, and Jefferson Counties, and produced thousands of sexually explicit photos and videos of that abuse. During the trial, the jury viewed numerous videos and photographs made by the defendant of his sexual exploitation of all five victims and heard testimony from one who is now an adult. The trial evidence also included the defendant’s recorded confession to New York State Police Investigators.
“Clifford Seaway earned and received hard time for horrifying crimes. This lengthy sentence is appropriate punishment for the defendant’s prolonged sexual exploitation of five minor victims. Our commitment to continuing to work with our law enforcement partners to make sure that such child predators are held accountable for their crimes is complete and unyielding,” said United States Attorney Grant C. Jaquith.
State Police Superintendent George P. Beach II said, “This sentence reflects the severity of the crimes committed against those who are most vulnerable, our children. The State Police and our law enforcement partners will continue to seek justice for those who have been victimized and have zero tolerance for those who prey on children. We want to thank the agencies involved for their partnership and hard work ensuring the defendant will serve time for these deplorable crimes.”
“Seaway and others sexually exploited children for more than a decade and recorded these depraved acts. Today's sentencing makes abundantly clear the severe consequences that await those engaged in this horrific behavior," said HSI Buffalo Special Agent in Charge Kevin Kelly. "HSI continues to protect those that are most vulnerable and will continue to make these types of cases a priority along with our state and local partners.”
Co-defendant Tammy Lamere pled guilty and is scheduled to be sentenced on May 23, 2018. Co-defendant Tammy Martin pled guilty and is scheduled to be sentenced on June 7, 2018.
This case was investigated by the New York State Police and Homeland Security Investigations (HSI) with assistance provided by the Onondaga County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Carina H. Schoenberger.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Gang Members Who Smuggled Drugs into Virginia Prisons Sentenced to PrisonRead the Press Release
Roanoke, VIRGINIA – Five members of the Mad Stone Bloods (MSB) gang were sentenced this week in the U.S. District Court for the Western District of Virginia in Roanoke for their roles in a criminal conspiracy that involved the smuggling of drugs and other contraband into Virginia prisons, and the facilitation of the sale of drugs outside the prisons, with the help of complicit corrections officers.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia made the announcement.
“Gangs that operate out of our prison systems not only bring drugs and violence into prison facilities – they also breed drug-fueled violence in our communities,” said Acting Assistant Attorney General Cronan. “The Criminal Division will continue to work together with local, state, and federal law enforcement partners to ensure that these career criminals and those who conspire with them are brought to justice.”
“Our office will continue to work with our state and local partners to target gang members who engage in violence, drug trafficking, and other illegal activities,” said U.S. Attorney Cullen.
On May 1, Terrance Nathaniel Brown, aka War, 29, was sentenced to serve 20 years in prison on a drug conspiracy conviction. Clifford Alexander Jennings, aka Big Cliff, 48, of Salem, Virginia, was sentenced to serve 12 years in prison on narcotics conspiracy offenses. Ronnie Monroe Nicholas Jr., aka RG, 37, of Crewe, Virginia, was sentenced to serve 12 years in prison on a racketeering conspiracy conviction. Michael Jamal Jones, aka M. Stone, 30, of Brooklyn, New York, was sentenced to serve 41 months in prison on a drug conspiracy conviction. Jermaine Shiquill Epps, aka Money, 28, of Madison Heights, Virginia, was sentenced to serve 24 months in prison on a drug conspiracy conviction.
According to admissions made in connection with the guilty pleas of Nicolas and Epps, and the evidence presented at the trials of Brown, Jennings, and Jones, the MSB gang operates in Virginia, New York, New Jersey, Connecticut, North Carolina, Georgia, Texas and Maryland, and engages in activities involving murder, narcotics trafficking, wire fraud and mail fraud both in and outside of prisons. The gang’s national leaders are based in New York and MSB leaders in Virginia report to those New York leaders.
According to admissions made in connection with the guilty pleas of Nicolas and Epps, and the evidence presented at the trials of Brown, Jennings, and Jones, the Mad Stone Bloods conspired to distribute and possess with the intent to distribute cocaine, crack cocaine, marijuana and heroin. In addition, gang members conspired with Virginia Department of Corrections employees, including correctional officers and an inmate counselor, to smuggle controlled substances, cellular phones and accessories and other contraband into various Virginia Correctional facilities to aid incarcerated MSB members.
The investigation was conducted by the FBI’s Richmond and Norfolk Divisions, the Virginia State Police, the Virginia Department of Corrections, the Norfolk Police Department, the Harrisonburg Police Department, the Rockingham County Sheriff’s Office and the Rockingham County Commonwealth’s Attorney. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Grayson A. Hoffman for the Western District of Virginia are prosecuting the case.
Four Defendants Plead Guilty for Their Roles in A Major Drug Trafficking Operation in Lockport, NyRead 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 four defendants pleaded guilty in connection with a large drug trafficking organization operating out of Lockport, NY:
• Ramone Westbrook, 35, of Niagara Falls NY, and Rico Freeman, 34, of Lockport NY, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine and face a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $20,000,000 fine; • In addition, co-defendants Kurtis Washington, 27, and Darius Dix, 27, both of Lockport, NY, pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine which is punishable by a mandatory minimum penalty of five years in prison, a maximum of 40 years and fine of $5,000,000.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between May 2016 and June 2017, defendant Westbrook operated a high traffic and extremely profitable cocaine and crack cocaine distribution network. Westbrook obtained cocaine and crack cocaine from several sources of supply in Atlanta, Georgia, North Carolina and New York City and from a local source of supply in Niagara Falls. Westbrook then supplied co-defendant Rico Freeman for further distribution in the Lockport area during the course of the conspiracy.
On May 24, 2017, federal agents executed a search warrant at Ramone Westbrook’s residence on Whitney Avenue in Niagara Falls. When agents forced entry, the defendant jumped off a second story balcony and fled from law enforcement but was captured immediately. A search of the residence recovered over a kilogram of cocaine, crack cocaine, two money counters, drug scales, and $22,295.00 in drug proceeds.
Defendants Washington and Dix were also part of the drug trafficking organization, distributing cocaine and crack cocaine in the Lockport area.
On four occasions between March 3, 2017, and May 11, 2017, Washington sold cocaine to a Niagara County Drug Task Force confidential source. Washington was arrested by Buffalo Police officers on June 19, 2017. He was in possession of 26 grams of cocaine Washington tried to flee during a pat-down search and attempted to discard the cocaine.
On February 14, 2017, Dix sold a quantity of cocaine to a confidential informant working with law enforcement officers. He was arrested on December 27, 2016 by Lockport Police officers who recovered 10 grams of cocaine from Dix.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, Special Agent Shane Nastoff, and Task Force Officer Eric Herrington; the Lockport Police Department, under the direction of Chief Michael Niethe; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Rico Freeman is scheduled to be sentenced on August 6th at 9:15 a.m., before U.S. District Judge Lawrence J. Vilardo. Sentencing for the remaining defendants will be scheduled at a later date.
Founder of Irvine-based Financial Services Firm Arrested in Scheme that Allegedly Stole more than $4 Million from InvestorsRead the Press Release
SANTA ANA, California – The CEO of an Irvine-based financial services and insurance company was arrested this morning on federal charges of defrauding about a dozen victims who thought their money was being invested in a certificate of deposit at a major bank.
The scam allegedly run out of Five Star Financial Services of America, LLC targeted the retirement accounts and savings of elderly investors and other vulnerable victims, according to a federal criminal complaint that notes one 70-year-old victim lost nearly all of his $1.6 million investment with Five Star.
This morning, FBI and IRS special agents arrested Memet Fatih Biyikoglu, 50, of Palm Desert, who was Five Star’s chief executive officer and was known to some victims as “John B.” Biyikoglu is expected to make his initial court appearance this afternoon in United States District Court in Santa Ana.
Anna Marie Holt, 58, of Fountain Valley, who was the president and chief operating officer of Five Star, is expected to self-surrender to authorities this afternoon. Holt also is expected to make her first court appearance this afternoon in federal court in Santa Ana.
A third defendant named in the criminal complaint – Ida Shaghoian, 38, of Palm Desert, a sales agent with Five Star and Biyikoglu’s ex-wife – is currently being sought by federal agents.
According to the affidavit in support of the criminal complaint, Biyikoglu, Shaghoian and Holt solicited investors to put retirement funds, savings, and other assets in a certificate of deposit held at JP Morgan Chase Bank with promises that the investments were safe and would generate large returns.
In reality, the Chase bank CD did not exist, and the defendants used the victims’ money for their own personal use, which included paying for real estate, jewelry and a Ferrari, the complaint alleges. As part of the scheme, victims were given bogus Chase Bank statements to make it appear their money had been legitimately invested.
To date, the investigation has identified 11 victims who transferred at least $4,088,338 to Five Star in 2014 and 2015, according to the complaint. Several of the victims lost their entire retirement savings.
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 charge of conspiracy to commit wire fraud carries a statutory maximum sentence of 20 years in federal prison.
The investigation into Five Star Financial Services is being conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
Former attorney indicted for failing to report nearly $400,000 he used to pay personal expensesRead the Press Release
A former attorney from Hiram was indicted for failing to report nearly $400,000 that he used to pay personal expenses.
Robert J. Andrews, Jr., 75, was indicted on two counts of making and filing false tax returns.
Andrews opened several bank accounts in the names of businesses he controlled or was involved with, including Ace Demo, Gem Collar LLC, Rocky Mountain Logging Company LLC and Falcon LLC, according to the indictment.
Andrews diverted money from corporate accounts for his own personal benefit and failed to report those transfers of money – which he used for personal expenses -- as income. Andrews failed to report approximately $396,617 as taxable income in 2012 and 2013, according to the indictment.
"Robert Andrews, Jr., a once trusted attorney, is now facing criminal tax charges for failing to report more than $396,000 of income on his tax returns,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Robert J. Patton.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former UPMC Radiologist Pleads Guilty to Health Care Fraud and Unlawfully Prescribing VicodinRead the Press Release
PITTSBURGH, PA – A former radiologist at the University of Pittsburgh Medical Center waived indictment and pleaded guilty in federal court to charges of unlawfully distributing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Marios D. Papachristou, 43, of Allison Park, PA, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Papachristou conspired to create and submit unlawful prescriptions for Vicodin, and then unlawfully dispensed those controlled substances to other persons not specifically named in the Indictment. Papachristou also committed health care fraud for allegedly submitting fraudulent claims to UPMC Health Plan, for payments to cover the costs of the unlawfully prescribed Vicodin.
"Today’s guilty plea marks the first conviction in a case investigated by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud," stated U.S. Attorney Brady. "The data we are receiving provides important information about prescription opioids, prescribers and pharmacies that is being used to start or strengthen our investigations."
Judge Schwab scheduled sentencing for October 10, 2018, at 10 a.m. The law provide a maximum sentence of 20 years in prison and a fine of $1,000,000 for unlawfully dispensing Schedule II controlled substances; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the prosecution of this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
Former High Point Regional Hospital Accountant SentencedRead the Press Release
GREENSBORO, N.C. B A former High Point Regional Hospital employee who stole close to $4 million from the hospital was sentenced yesterday in federal court in Winston-Salem, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable Thomas D. Schroeder sentenced KIMBERLY RUSSELL HOBSON, 46, of Kernersville, North Carolina, to a 102 month term of imprisonment on charges of wire fraud, bank fraud, and aggravated identity theft. HOBSON pleaded guilty in February.
“Today’s stiff sentence serves notice that white collar criminals will be brought to justice. No one is above the law in the Middle District of North Carolina,” said U.S. Attorney Martin. “Thank you to the law enforcement officers with the Department of Treasury, U.S. Secret Service, Guilford County Sheriff’s Department, and High Point Police Department who have worked diligently to uncover Ms. Hobson’s fraud and seek restitution for the hospital.”
HOBSON was employed in accounting and finance at High Point Regional Hospital for more than 20 years, ending in August 2017. Over a period of approximately ten years, HOBSON wrote checks to cash, to herself, and to other family members, which were then deposited in HOBSON’s personal bank account. She also directed payments from hospital accounts to her personal loans and credit cards, and used a hospital-issued credit card for personal expenses. HOBSON also diverted direct deposits of payroll from nine other employees by intermittently substituting her bank account for the direct deposit account of the other employees.
In total, HOBSON’s schemes to steal hospital funds for her own benefit caused a total loss to the hospital of $3,880,075.53. HOBSON was ordered to pay restitution in the full amount of the loss to the hospital and to an insurance company which covered a portion of the loss.
HOBSON is also subject to a forfeiture judgment in the amount of $2,675,000, and numerous vehicles and other assets purchased by HOBSON with stolen money have been seized and forfeited. All monies recovered through forfeiture will be applied to pay restitution until the restitution is paid in full.
The case was investigated by the Department of Treasury - Office of Inspector General, United States Secret Service, Guilford County Sheriff's Department, and High Point Police Department. The case was prosecuted by Assistant United States Attorneys Robert M. Hamilton, Lynne P. Klauer, and Anand P. Ramaswamy.
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Former Cumming police officer sentenced to prison for accepting bribes and computer fraudRead the Press Release
ATLANTA – Nathan VanBuren, a former Cumming police officer, was sentenced to federal prison for accepting bribes and unlawfully accessing a confidential law enforcement database.
“VanBuren violated his oath of office and broke the laws he swore to uphold and enforce,” said U. S. Attorney Byung J. “BJay” Pak. “His crimes undermine the hard work of his fellow officers, as well as the community’s trust and respect for police officers.”
“The actions of VanBuren are extremely disheartening to the many men and women in law enforcement, who work hard every day with integrity and commitment. The FBI will continue to dedicate significant resources toward investigating anyone who tarnishes their reputation by straying from his or her oath,” said David J. LeValley, Special Agent in Charge of FBI Atlanta.
“It is paramount that public officials, especially sworn law enforcement officers, committing crimes be held accountable for their actions,” said Georgia Bureau of Investigation Director Vernon Keenan. “The GBI will continue to work with our local and federal partners to ensure that corruption cases are aggressively investigated and prosecuted in order to maintain the faith and trust of the public.”
“VanBuren betrayed the public trust and the trust of the hard working men and women of this agency, said Chief Casey Tatum, Cumming Police Department. “Anytime a law enforcement officer uses their position to victimize someone, justice demands they be held accountable.”
According to U.S. Attorney Pak, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a home in Cumming, Georgia, at which time a citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren asked the citizen for a loan claiming that his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In reality, VanBuren’s salary was not being garnished and his son was not ill. The citizen reported VanBuren’s actions and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen met with and provided VanBuren with $5,000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked VanBuren to search a sensitive police database to determine whether an individual was an undercover police officer. In exchange for $1,000, VanBuren unlawfully accessed the law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
Nathan VanBuren, 35, of Cumming, Georgia was sentenced by U.S. District Judge Orinda D. Evans to one year, six months in prison to be followed by two years of supervised release. VanBuren was convicted of honest services wire fraud and computer fraud on October 26, 2017, after a jury trial.
This case was jointly investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The Cumming Police Department and Forsyth County Sheriff’s Office assisted with the investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CEO of Volkswagen AG Charged with Conspiracy and Wire Fraud in Diesel Emissions ScandalRead the Press Release
An indictment was unsealed earlier today charging Martin Winterkorn, 70, the former chairman of the management board of Volkswagen AG (VW), with conspiracy and wire fraud in connection with VW’s long-running scheme to cheat U.S. diesel vehicle emissions requirements.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, EPA Administrator Scott Pruitt, and Special Agent in Charge Timothy R. Slater of FBI’s Detroit Division, made the announcement.
The superseding indictment was issued by a federal grand jury sitting in the Eastern District of Michigan and charges Winterkorn with four counts of violating federal law. The first count charges that Winterkorn conspired with other senior VW executives and employees to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The remaining three counts charge Winterkorn with wire fraud in connection with the scheme.
“If you try to deceive the United States, then you will pay a heavy price,” said Attorney General Sessions. “The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company. These are serious allegations, and we will prosecute this case to the fullest extent of the law. I want to thank the Criminal Division’s Fraud Section, the Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Michigan as well as our partners at the EPA, FBI and in Germany for their hard work on this important case.”
“Volkswagen deceived American regulators and defrauded American consumers for years,” said U.S. Attorney Schneider. “The fact that this criminal conduct was allegedly blessed at Volkswagen’s highest levels is appalling. The U.S. Attorney’s Office is committed to pursuing accountability for corporate crimes, and the Winterkorn prosecution is a reflection of that commitment.”
“The indictment of former VW CEO Martin Winterkorn should send a clear message that EPA and its law enforcement partners will seek to hold corporate officers accountable for alleged criminal activities at their company,” said EPA Administrator Pruitt.
“Today’s indictment of Volkswagen AG’s former CEO, Martin Winterkorn, sends a clear message that businesses both here in the United States and abroad are expected to conduct their business honestly,” said FBI Special Agent in Charge Slater. “Accountability will be sought for any individuals or corporations that cheat American consumers or harm the environment by circumventing the standards set by our legal system.”
The indictment of Winterkorn represents the most recent charges in an ongoing investigation by U.S. criminal authorities into unprecedented emissions cheating by VW. In March 2017, VW pleaded guilty to criminal charges that it deceived U.S. regulatory agencies, including the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), by installing so-called defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests. The defeat devices consisted of software designed to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions, in which case harmful nitrogen oxide (NOx) emissions increased significantly.
As part of its plea agreement with the Department, VW paid a criminal penalty of $2.8 billion. VW also agreed to the imposition of an independent corporate compliance monitor for the duration of its probation, which is at least three years. Subsequently, Larry Thompson was appointed as VW’s monitor.
Winterkorn, who served as VW’s management board chairman and thus VW’s highest ranking executive from January 2007 until September 2015, is the ninth individual against whom U.S. criminal authorities have announced charges in connection with this matter. Two former VW engineers, Oliver Schmidt, 48, and James Liang, 63, both German citizens, pleaded guilty to participating in the conspiracy alleged in the indictment and are currently serving sentences of 84 months and 40 months in prison, respectively, imposed by U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Five additional defendants, including former VW executives and senior managers, were indicted in January 2017, but have not been apprehended. Similar to Winterkorn, each of them is believed to be a German citizen and to reside in Germany. Finally, one former manager of VW’s subsidiary Audi AG, Giovanni Pamio, 61, an Italian citizen, has been charged by complaint and currently remains in Germany pending extradition.
The indictment of Winterkorn alleges that he was informed of VW’s diesel emissions cheating in May 2014 and again in July 2015. The indictment further alleges that Winterkorn, after having been clearly informed of the emissions cheating, agreed with other senior VW executives to continue to perpetrate the fraud and deceive U.S. regulators.
As the indictment sets forth, in the spring of 2014 a study commissioned by the International Council on Clean Transportation (the ICCT study) tested road emissions of two VW diesel vehicles sold in the United States. The results of the study showed significantly elevated NOx levels of the two VW vehicles, with one emitting up to 35 times above the allowable legal limit. VW management quickly learned of the results of the study and discussed potential consequences flowing from the revelations. Specifically, the indictment alleges that Bernd Gottweis, a senior manager then responsible for product safety issues, met with employees of the engine development department to discuss the ICCT study. Upon learning of the facts revealed by the study and the risks facing the company, Gottweis remarked that he needed to speak with Winterkorn immediately. Shortly thereafter, on May 22, 2014, Gottweis wrote a one-page memorandum describing the results of the ICCT study and warning that VW could not give a well-grounded explanation for the dramatically increased NOx emissions and that it could be assumed that the authorities would investigate whether the vehicles contained test-recognition software. Gottweis’s memorandum was then attached to a cover note authored by a then-senior VW executive, and addressed to Winterkorn.
As alleged in the indictment, following publication of the ICCT study in the spring of 2014 the company knowingly continued to deny the existence of emissions cheating in its vehicles until late summer 2015. Instead, VW sought to deceive U.S. regulators about the causes for the significant discrepancies between emissions tests and emissions values measured on the road.
By the summer of 2015, however, the indictment alleges that U.S. regulators threatened to withhold authorization for VW to sell Model Year 2016 diesel vehicles in the United States until VW answered their questions about the discrepancies uncovered by the ICCT study. The diesel situation in the United States became increasingly alarming to VW senior management, culminating in a meeting on July 27, 2015 at VW’s headquarters in Wolfsburg, Germany, internally referred to as the “damage table meeting.” During that meeting, which was chaired by Winterkorn and attended by several senior VW executives, engine development department employees, with the help of a PowerPoint presentation, described to the attendees, and Winterkorn specifically: (1) how VW was deceiving U.S. regulators, including precisely what information had been disclosed and what had not yet been disclosed; and (2) the potential consequences of VW being caught cheating.
The indictment alleges that upon being presented with those and other facts, Winterkorn did not order his subordinates to disclose the cheating but instead agreed to continue to deceive U.S. authorities. Part of that strategy, which Winterkorn allegedly approved at the July 27, 2015 meeting, and which informed VW’s steps over the next several weeks, included sending Oliver Schmidt to meet with a senior CARB official on Aug. 5, 2015, in order to obtain the release of the Model Year 2016 vehicles without revealing the fundamental reason for the higher NOx measurements on the road: that software had been intentionally installed in VW vehicles so the vehicles could detect and evade emissions testing. Consistent with Winterkorn’s alleged directive from the July 27 meeting, VW executives also approved a script for an Aug. 19, 2015 meeting with CARB that continued to conceal VW’s cheating. At the meeting, however, in direct contravention of the instructions from his superiors, a VW employee, in answering a direct question from CARB, revealed that VW had been using software in its 2.0 liter diesel vehicles to cheat U.S. emissions tests. On Sept. 3, 2015, VW officially admitted that it had installed defeat devices in various 2.0 liter diesel vehicles sold in the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI and EPA Criminal Investigation Division are investigating the case. The prosecution is being handled by Deputy Chief Benjamin D. Singer and Trial Attorney David M. Fuhr from the Criminal Division’s Fraud Section, White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Trial Attorney Jennifer L. Blackwell from the DOJ’s Environment and Natural Resources Division. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Former CEO of Volkswagen AG Charged with Conspiracy and Wire Fraud in Diesel Emissions ScandalRead the Press Release
An indictment was unsealed earlier today charging Martin Winterkorn, 70, the former chairman of the management board of Volkswagen AG (VW), with conspiracy and wire fraud in connection with VW’s long-running scheme to cheat U.S. diesel vehicle emissions requirements.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, EPA Administrator Scott Pruitt, and Special Agent in Charge Timothy R. Slater of FBI’s Detroit Division, made the announcement.
The superseding indictment was issued by a federal grand jury sitting in the Eastern District of Michigan and charges Winterkorn with four counts of violating federal law. The first count charges that Winterkorn conspired with other senior VW executives and employees to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The remaining three counts charge Winterkorn with wire fraud in connection with the scheme.
“If you try to deceive the United States, then you will pay a heavy price,” said Attorney General Sessions. “The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company. These are serious allegations, and we will prosecute this case to the fullest extent of the law. I want to thank the Criminal Division’s Fraud Section, the Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Michigan as well as our partners at the EPA, FBI and in Germany for their hard work on this important case.”
“Volkswagen deceived American regulators and defrauded American consumers for years,” said U.S. Attorney Schneider. “The fact that this criminal conduct was allegedly blessed at Volkswagen’s highest levels is appalling. The U.S. Attorney’s Office is committed to pursuing accountability for corporate crimes, and the Winterkorn prosecution is a reflection of that commitment.”
“The indictment of former VW CEO Martin Winterkorn should send a clear message that EPA and its law enforcement partners will seek to hold corporate officers accountable for alleged criminal activities at their company,” said EPA Administrator Pruitt.
“Today’s indictment of Volkswagen AG’s former CEO, Martin Winterkorn, sends a clear message that businesses both here in the United States and abroad are expected to conduct their business honestly,” said FBI Special Agent in Charge Slater. “Accountability will be sought for any individuals or corporations that cheat American consumers or harm the environment by circumventing the standards set by our legal system.”
The indictment of Winterkorn represents the most recent charges in an ongoing investigation by U.S. criminal authorities into unprecedented emissions cheating by VW. In March 2017, VW pleaded guilty to criminal charges that it deceived U.S. regulatory agencies, including the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), by installing so-called defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests. The defeat devices consisted of software designed to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions, in which case harmful nitrogen oxide (NOx) emissions increased significantly.
As part of its plea agreement with the Department, VW paid a criminal penalty of $2.8 billion. VW also agreed to the imposition of an independent corporate compliance monitor for the duration of its probation, which is at least three years. Subsequently, Larry Thompson was appointed as VW’s monitor.
Winterkorn, who served as VW’s management board chairman and thus VW’s highest ranking executive from January 2007 until September 2015, is the ninth individual against whom U.S. criminal authorities have announced charges in connection with this matter. Two former VW engineers, Oliver Schmidt, 48, and James Liang, 63, both German citizens, pleaded guilty to participating in the conspiracy alleged in the indictment and are currently serving sentences of 84 months and 40 months in prison, respectively, imposed by U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Five additional defendants, including former VW executives and senior managers, were indicted in January 2017, but have not been apprehended. Similar to Winterkorn, each of them is believed to be a German citizen and to reside in Germany. Finally, one former manager of VW’s subsidiary Audi AG, Giovanni Pamio, 61, an Italian citizen, has been charged by complaint and currently remains in Germany pending extradition.
The indictment of Winterkorn alleges that he was informed of VW’s diesel emissions cheating in May 2014 and again in July 2015. The indictment further alleges that Winterkorn, after having been clearly informed of the emissions cheating, agreed with other senior VW executives to continue to perpetrate the fraud and deceive U.S. regulators.
As the indictment sets forth, in the spring of 2014 a study commissioned by the International Council on Clean Transportation (the ICCT study) tested road emissions of two VW diesel vehicles sold in the United States. The results of the study showed significantly elevated NOx levels of the two VW vehicles, with one emitting up to 35 times above the allowable legal limit. VW management quickly learned of the results of the study and discussed potential consequences flowing from the revelations. Specifically, the indictment alleges that Bernd Gottweis, a senior manager then responsible for product safety issues, met with employees of the engine development department to discuss the ICCT study. Upon learning of the facts revealed by the study and the risks facing the company, Gottweis remarked that he needed to speak with Winterkorn immediately. Shortly thereafter, on May 22, 2014, Gottweis wrote a one-page memorandum describing the results of the ICCT study and warning that VW could not give a well-grounded explanation for the dramatically increased NOx emissions and that it could be assumed that the authorities would investigate whether the vehicles contained test-recognition software. Gottweis’s memorandum was then attached to a cover note authored by a then-senior VW executive, and addressed to Winterkorn.
As alleged in the indictment, following publication of the ICCT study in the spring of 2014 the company knowingly continued to deny the existence of emissions cheating in its vehicles until late summer 2015. Instead, VW sought to deceive U.S. regulators about the causes for the significant discrepancies between emissions tests and emissions values measured on the road.
By the summer of 2015, however, the indictment alleges that U.S. regulators threatened to withhold authorization for VW to sell Model Year 2016 diesel vehicles in the United States until VW answered their questions about the discrepancies uncovered by the ICCT study. The diesel situation in the United States became increasingly alarming to VW senior management, culminating in a meeting on July 27, 2015 at VW’s headquarters in Wolfsburg, Germany, internally referred to as the “damage table meeting.” During that meeting, which was chaired by Winterkorn and attended by several senior VW executives, engine development department employees, with the help of a PowerPoint presentation, described to the attendees, and Winterkorn specifically: (1) how VW was deceiving U.S. regulators, including precisely what information had been disclosed and what had not yet been disclosed; and (2) the potential consequences of VW being caught cheating.
The indictment alleges that upon being presented with those and other facts, Winterkorn did not order his subordinates to disclose the cheating but instead agreed to continue to deceive U.S. authorities. Part of that strategy, which Winterkorn allegedly approved at the July 27, 2015 meeting, and which informed VW’s steps over the next several weeks, included sending Oliver Schmidt to meet with a senior CARB official on Aug. 5, 2015, in order to obtain the release of the Model Year 2016 vehicles without revealing the fundamental reason for the higher NOx measurements on the road: that software had been intentionally installed in VW vehicles so the vehicles could detect and evade emissions testing. Consistent with Winterkorn’s alleged directive from the July 27 meeting, VW executives also approved a script for an Aug. 19, 2015 meeting with CARB that continued to conceal VW’s cheating. At the meeting, however, in direct contravention of the instructions from his superiors, a VW employee, in answering a direct question from CARB, revealed that VW had been using software in its 2.0 liter diesel vehicles to cheat U.S. emissions tests. On Sept. 3, 2015, VW officially admitted that it had installed defeat devices in various 2.0 liter diesel vehicles sold in the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI and EPA Criminal Investigation Division are investigating the case. The prosecution is being handled by Deputy Chief Benjamin D. Singer and Trial Attorney David M. Fuhr from the Criminal Division’s Fraud Section, White Collar Crime Unit Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Trial Attorney Jennifer L. Blackwell from the DOJ’s Environment and Natural Resources Division. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
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Former Arkansas State Senator and Consultant Convicted for Bribery SchemeRead the Press Release
A former Arkansas State Senator and an Arkansas consultant have been convicted for a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks funneled through the consultant’s business, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.
Jonathan E. Woods, 40, of Springdale, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud, 12 counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Randell G. Shelton Jr., 38, of Alma, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud, 10 counts of honest services wire fraud and one count of honest services mail fraud.
“Jonathan Woods abused his position as an Arkansas State Senator by soliciting and accepting kickbacks and Randall Shelton helped him cover it up by funneling the kickbacks through his consulting company,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials and those that help them conceal their crimes.”
“Abuse of the public trust cannot be tolerated and must be met with severe consequences,” said U.S. Attorney Kees. “I hope this verdict serves as a warning to all those that have been entrusted with serving the people.”
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 49, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, before Judge Brooks to one count of honest services wire fraud. Sentencings will be scheduled at a later date.
The FBI and IRS investigated the case. Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas are prosecuting the case.
Former Arkansas State Senator and Consultant Convicted for Bribery SchemeRead the Press Release
Fayetteville, AR – Former Arkansas State Senator and an Arkansas consultant have been convicted for a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks funneled through the consultant’s business, announced Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Jonathan E. Woods, 40, of Springdale, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud in violation of Title 18 U.S.C. § 1349, twelve counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Randell G. Shelton Jr., 38, of Alma, Arkansas, was convicted of one count of conspiracy to commit honest services mail and wire fraud in violation of Title 18 U.S.C. § 1349, ten counts of honest services wire fraud and one count of honest services mail fraud.
“Jonathan Woods abused his position as an Arkansas State Senator by soliciting and accepting kickbacks and Randall Shelton covered it up by funneling the kickbacks through his consulting company,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials and those that help them conceal their crimes.”
“Abuse of the public trust cannot be tolerated and must be met with severe consequences.” said U.S. Attorney Kees. “I hope this verdict serves as a warning to all those that have been entrusted with serving the people.”
According to the evidence presented at trial, Woods served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas, to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Oren Paris III, 49, of Springdale, Arkansas, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, 2018, before Judge Brooks to one count of honest services wire fraud. Sentencings will be scheduled at a later date.
The FBI and IRS investigated the case. First Assistant U.S. Attorney Kenneth Elser, Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas and Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section prosecuted the case.
Florida Couple Pleads Guilty to Role in Scheme that Imported Steroids from China for Sale over the InternetRead the Press Release
BOSTON – A Florida couple pleaded guilty yesterday in federal court in Boston to their roles in a scheme that imported raw steroids from China and sold them over the internet to customers across the United States.
Michael Fulton, 46, and Rhonda Fulton, 52, both of Palm Bay, Fla., pleaded guilty to conspiracy to distribute steroids. U.S District Court Judge Mark L. Wolf scheduled their sentencings for Aug. 27, 2018.
From January 2016 to September 2016, an undercover agent purchased steroids listed for sale on ustraininggear.com, a website that advertised various types of steroids for sale. The website provided instructions on how to place orders and pay for steroids, and further provided an email address operated by co-conspirator Mark Lopilato, of Sanger, Texas, to place orders.
Customers ordered steroids from Mark Lopilato who forwarded the orders by email to Rhonda and Michael Fulton. Michael Fulton processed and prepared raw steroids according to the customers’ orders, and Rhonda Fulton packaged and mailed them. Mark Lopilato and the Fultons ordered the raw steroids through the internet from China, then paid for and received the raw steroids by mail. Mark Lopilato paid the Fultons for the preparation, packaging and mailing of the steroids to customers; he also paid Michael Lopilato, his brother in N.H., to maintain and operate the website.
In January 2017, the Fultons and Michael and Mark Lopilato were arrested and charged for their roles in the steroid scheme. The related searches revealed more than 60,000 dosage units of raw steroids, a tableting machine, steroid packaging and shipping materials, and approximately $20,000 in cash. As a result of a federal warrant, agents also seized the website ustraininggear.com.
Mark and Michael Lopilato pleaded guilty in February 2018. Michael is scheduled to be sentenced on June 6, 2018. Mark’s sentencing has not yet been scheduled.
The charge of conspiracy to distribute steroids provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $500,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; North Reading Police Chief Michael Murphy; North Andover Police Chief Charles Gray; and Burlington Police Chief Mike Kent made the announcement. Assistant U.S. Attorney Katherine Ferguson of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Five Pennsylvania physicians charged with unlawfully distributing buprenorphine and defrauding Medicare and MedicaidRead the Press Release
WASHINGTON - Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:
- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. 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 defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Pennsylvania Physicians Charged with Unlawfully Distributing Buprenorphine and Defrauding Medicare and MedicaidRead the Press Release
Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. 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 defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing, and the U.S. Department of Justice - Criminal Division’s Fraud Section’s Health Care Fraud Unit assisted in the investigation.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Five Pennsylvania Physicians Charged with Unlawfully Distributing Buprenorphine and Defrauding Medicare and MedicaidRead the Press Release
WASHINGTON, DC – Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The defendants named in the indictments are:
- Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
- Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
- Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
- Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
- Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.
According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia. The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction. The defendants are also charged with conspiracy to unlawfully distribute buprenorphine. Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions. “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."
“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady. “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully. These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”
“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction. I have made clear that a medical degree provides you no protection from prosecution. We will persevere,” added U.S. Attorney Powell.
“Alleged abuses of the health care system destroy the basic trust between providers and patients and between taxpayers and the government,” said FBI Special Agent in Charge Bob Johnson. “I commend the work of our health care fraud task force and want this to be a message to the community and physicians that these investigations are a high priority for the FBI.”
“Buprenorphine is used to help people struggling with substance use disorder from heroin and other narcotic pain killers. The allegations in this indictment against these five doctors are deeply troubling, as these doctors distributed this drug not to assist those struggling with addiction, but solely for profit,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “As part of our overall mission to address the opioid crisis, the DEA will continue to aggressively target the rogue practitioners that contribute to this epidemic.”
For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances; a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud. 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 defendants.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five Gang Members Who Smuggled Drugs into Virginia Prisons Sentenced to PrisonRead the Press Release
Five members of the Mad Stone Bloods (MSB) gang were sentenced this week in the U.S. District Court for the Western District of Virginia in Roanoke for their roles in a criminal conspiracy that involved the smuggling of drugs and other contraband into Virginia prisons, and the facilitation of the sale of drugs outside the prisons, with the help of complicit corrections officers.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia made the announcement.
“Gangs that operate out of our prison systems not only bring drugs and violence into prison facilities – they also breed drug-fueled violence in our communities,” said Acting Assistant Attorney General Cronan. “The Criminal Division will continue to work together with local, state, and federal law enforcement partners to ensure that these career criminals and those who conspire with them are brought to justice.”
“Our office will continue to work with our state and local partners to target gang members who engage in violence, drug trafficking, and other illegal activities,” said U.S. Attorney Cullen.
On May 1, Terrance Nathaniel Brown, aka War, 29, was sentenced to serve 20 years in prison on a drug conspiracy conviction. Clifford Alexander Jennings, aka Big Cliff, 48, of Salem, Virginia, was sentenced to serve 12 years in prison on narcotics conspiracy offenses. Ronnie Monroe Nicholas Jr., aka RG, 37, of Crewe, Virginia, was sentenced to serve 12 years in prison on a racketeering conspiracy conviction. Michael Jamal Jones, aka M. Stone, 30, of Brooklyn, New York, was sentenced to serve 41 months in prison on a drug conspiracy conviction. Jermaine Shiquill Epps, aka Money, 28, of Madison Heights, Virginia, was sentenced to serve 24 months in prison on a drug conspiracy conviction.
According to admissions made in connection with the guilty pleas of Nicolas and Epps, and the evidence presented at the trials of Brown, Jennings, and Jones, the MSB gang operates in Virginia, New York, New Jersey, Connecticut, North Carolina, Georgia, Texas and Maryland, and engages in activities involving murder, narcotics trafficking, wire fraud and mail fraud both in and outside of prisons. The gang’s national leaders are based in New York and MSB leaders in Virginia report to those New York leaders.
According to admissions made in connection with the guilty pleas of Nicolas and Epps, and the evidence presented at the trials of Brown, Jennings, and Jones, the Mad Stone Bloods conspired to distribute and possess with the intent to distribute cocaine, crack cocaine, marijuana and heroin. In addition, gang members conspired with Virginia Department of Corrections employees, including correctional officers and an inmate counselor, to smuggle controlled substances, cellular phones and accessories and other contraband into various Virginia Correctional facilities to aid incarcerated MSB members.
The investigation was conducted by the FBI’s Richmond and Norfolk Divisions, the Virginia State Police, the Virginia Department of Corrections, the Norfolk Police Department, the Harrisonburg Police Department, the Rockingham County Sheriff’s Office and the Rockingham County Commonwealth’s Attorney. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Grayson A. Hoffman for the Western District of Virginia are prosecuting the case.
Federal Jury Convicts Lumberton Man for Drug Trafficking and Firearm OffensesRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today in Federal court, TRANQUERE SANCHEZ IRONS, a 30-year-old resident of Lumberton, was convicted following a two-day trial before Senior United States District Judge Malcolm J. Howard. The jury found IRONS guilty of Possession with the Intent to Distribute a Quantity of Cocaine Base (Crack), Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Being a Felon in Possession of a firearm. Sentencing is scheduled for August 7, 2018. IRONS faces up to life imprisonment.
The evidence at trial showed that on March 3, 2017, Officers with the Lumberton Police Department were conducting a license checkpoint. Officers noticed a vehicle, driven by IRONS, avoid the checkpoint and begin traveling at a high rate of speed. Officers pursued IRONS who ended up crashing his vehicle into two other vehicles. IRONS exited his vehicle and fled on foot but was captured by law enforcement officers. Officers searched IRONS’ vehicle and found a loaded Bryco .380 pistol, a loaded 9mm magazine, an AK-47, cocaine and crack cocaine, and digital scales.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Lumberton Police Department. John H. Bennett prosecuted the case on behalf of the United States.
FCI Danbury Inmate Charged with Possessing a WeaponRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging JOHN FAUCHER, 40, with possession of contraband in a federal prison.
The indictment alleges that, on March 12, 2018, FAUCHER, an inmate at the Federal Correctional Institution in Danbury (FCI Danbury), possessed a weapon or an object designed or intended to be used as a weapon.
If convicted of the charge, FAUCHER faces a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Ecuadoran Leader of Heroin Distribution and Money Laundering Ring Sentenced to PrisonRead the Press Release
The leader of a heroin distribution ring who laundered the proceeds back to his native Ecuador was sentenced today in U.S. District Court in Seattle to 57 months in prison, announced U.S. Attorney Annette L. Hayes. FREDY RAMON GUTAMA-GUTAMA, 26, who resided in Lynnwood, Washington, conspired with his brother and others to make drug sales in various parks in north Seattle and hide their drug supply in various publicly accessible locations. At the sentencing hearing U.S District Judge Thomas S. Zilly said “Heroin is a terrible epidemic in our country…. This defendant was participating in the distribution of a significant amount of heroin…. He sold 500 doses in one sale, and left heroin in places where there was access to everyone, including children.”
“This defendant and his heroin dealing contributed to the opioid crisis affecting our neighborhoods and communities,” said U.S. Attorney Hayes. “In addition, in an effort to avoid getting caught, he and his co-conspirators stashed their drugs in publicly accessible places, often near public parks, thus putting kids and others at unnecessary risk.”
According to records filed in the case, the defendants repeatedly sold heroin to a person working with law enforcement and sent the cash proceeds both across the country and to Ecuador. While under law enforcement surveillance, the conspirators stashed some of their drugs in a rockery in the Roosevelt neighborhood of north Seattle that was very near the park and children’s playground at the Ravenna-Eckstein Community Center. Law enforcement seized the drugs. The conspirators were also observed making drug sales at Green Lake Park and in Northacres Park. The men hid their drugs in a public place to reduce their risk of being caught by law enforcement with significant quantities of heroin in their possession.
FREDY RAMON GUTAMA-GUTAMA was indicted in March 2017, and pleaded guilty in January 2018 to conspiracy to distribute heroin and conspiracy to commit money laundering. His brother, Fabian Martin Gutama-Gutama, 20, pleaded guilty and was sentenced last month to 18 months in prison. Both men will likely be deported following their prison terms.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Sarah Vogel and Kate Vaughan.
If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 1 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website . If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (1 866 833 6546) to talk to a teen volunteer.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation.
Jonathan Julian Garcia, 38, a Dominican national residing in Roxbury, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year in prison and three years of supervised release. Garcia will be subject to deportation upon completion of his sentence. In January 2018, Garcia pleaded guilty to one count of illegal reentry of a deported alien.
Garcia was previously deported on Feb. 3, 2015. In October 2017, law enforcement encountered Garcia in Westwood and determined him to be illegally present in the United States.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Cudahy Man Indicted on Child Pornography and Child Enticement ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on May 1, 2018, a federal grand jury returned an indictment against Adam J. Westphal (age: 41) of Cudahy, Wisconsin. Westphal faces charges of attempted production of child pornography, distribution of child pornography, and the attempted enticement of a minor to engage in sexual activity, contrary to Title 18, United States Code, Sections 2251(a), 2252A, and 2422(b). He faces a mandatory minimum sentence of 15 years and up to a lifetime of incarceration in federal prison.
According to court filings, Westphal joined an online chat room named “taboo” under the user name “daddyinyouagain.” Soon thereafter, he began sending sexually explicit videos and photographs of pre-pubescent children to a person whom he believed to be a 34 year-old mother of a 14 year-old daughter, but was in actuality an undercover investigator with the state’s Internet Crimes Against Children (ICAC) Task Force. Eventually, Westphal made arrangements to travel to a residence in Neenah, Wisconsin, for the purpose of engaging in sexual activity with the 14 year-old girl and with the intent of making a pornographic video of the encounter which he could later share on the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force and the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Crofton Man Sentenced to 25 Years in Prison for Coercion and Enticement of A MinorRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Piere Ceradoy, age 37, of Crofton, Maryland, to 25 years in prison, followed by a lifetime of supervised release for coercion and enticement of a minor.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, between February 2016 and April 2017, Ceradoy repeatedly enticed a minor female to take photographs and stream live videos of herself engaging in sexually explicit conduct and send those images and videos to Ceradoy using a mobile phone and the Internet. During the course of the exploitation of the victim, Ceradoy frequently threatened to expose the victim by disseminating the explicit files, and regularly threatened to kill the victim and her family. Ceradoy also sent images and videos of himself engaged in sexually explicit conduct with the victim. The victim was 13 years old.
Ceradoy engaged in this conduct after two convictions in 2014 relating to aggravated sexual abuse, sexual abuse, and abusive sexual conduct involving a minor. During this time, he was on parole for a sex offense conviction in the state of Washington, and was registered as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur praised HSI Baltimore, the Maryland State Police and the Franklinton, North Carolina Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Court Shuts Down Charleston, South Carolina Tax Return PreparerRead the Press Release
A federal court in Charleston, South Carolina permanently enjoined Jacqueline Lowndes from preparing federal tax returns for others. The court also ordered Lowndes to mail a copy of the injunction order to all customers for whom she prepared a return for tax years 2012 through 2016. Lowndes agreed to the civil injunction order entered against her.
According to the complaint, Lowndes prepared federal income tax returns for customers that reported false, improper or inflated deductions which understated the customers’ income tax liabilities and increased their refunds. Lowndes also allegedly falsely claimed the Earned Income Tax Credit on behalf of customers who did not qualify for the credit by exaggerating the customers’ losses and expenses, falsely claiming dependents for customers, and falsely changing the filing status of customers. Returns prepared by Lowndes underreported tax liabilities or overstated tax refunds by over $600,000, according to the complaint.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Charged with Unlawful Possession of AmmunitionRead the Press Release
BOSTON – A Burlington man with at least four prior felony convictions was charged today in federal court in Boston with unlawfully possessing ammunition.
Brendan Sheils, 32, was indicted on one count of being a felon in possession of ammunition. In March 2018, Sheils was charged in federal court by complaint after he was arrested by state authorities.
According to the charging documents, in February 2018, a cooperating witness alerted law enforcement that while at Sheils’ residence in November 2017, the cooperating witness observed Sheils with ammunition and cleaning a large black gun.
On Feb. 23, 2018, law enforcement officers executed a state search warrant at Sheils’ home, where they seized a firearm (which turned out to be a “ghost gun,” an unregistered firearm created by purchasing the component parts and assembling the firearm by hand), 28 rounds of 5.56 caliber Lake City Army ammunition, one round of .223 caliber Federal ammunition, and one found of .22LR caliber Federal ammunition.
Sheils is prohibited from possessing firearms or ammunition due to prior felony convictions, which include: a 2009 conviction for resisting arrest; a 2013 conviction for possession with intent to distribute a Class A controlled substance; a 2013 conviction for assault with a dangerous weapon, specifically, a handgun; and two separate 2013 convictions for possession of a firearm without an identification card.
Sheils faces a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. 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 Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colombian alien pleads guilty to using stolen identity to obtain ID, driver’s license in MonroeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that an illegal alien from Colombia pleaded guilty Wednesday to using a stolen birth certificate and Social Security card to obtain identification cards in Monroe.
Jimmy Hurtado, 35, of Colombia, pleaded guilty before U.S. District Judge Terry A. Doughty to one count of falsely representing to be a citizen of the United States, one count of false representation and use of a Social Security number, and one count of aggravated identity theft. According to the guilty plea, Hurtado used the identity of a United States citizen from Puerto Rico in 2010 to obtain a state-issued identification card from the Monroe Department of Public Safety Office. He supplied a birth certificate and a Social Security number. He renewed the identification card in 2011 and 2012 and obtained a driver’s license using the same documents he used to obtain the state-issued identification card.
Hurtado faces up to three years in prison for the false representation count, five years in prison for the Social Security count, and a mandatory two years in prison for the identity theft count, which is to run consecutively to sentences of the other two counts. He also faces three years of supervised release and a $250,000 fine. The court set sentencing for July 11, 2018.
The U.S. Postal Inspection Service, ATF and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Citrus Heights Man Indicted for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Emanuel Mois, 25, of Citrus Heights, was arraigned today on an indictment charging him with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Mois knowingly received visual depictions of minors engaged in sexually explicit conduct between November 2016 and February 2017.
This case is the product of an investigation by the Federal Bureau of Investigation and the Citrus Heights Police Department, with assistance from the Roseville Police Department. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
If convicted, Mois faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Charleston Man and Airport Service Business Plead Guilty to Hazardous Waste ChargeRead the Press Release
CHARLESTON, W.Va. – Brian Scott Miller, the President of Executive Air Terminal, Inc., and Executive Air Terminal, Inc. each pled guilty to the felony offense of Storage of Hazardous Waste without a Permit, announced United States Attorney Mike Stuart. Executive Air provides fueling and other services for private and commercial airplanes at Yeager Airport in Charleston. Miller is the owner and president of Executive Air. Stuart praised the work of the Environmental Protection Agency (EPA), West Virginia Department of Environmental Protection and the Yeager Airport Police Department.
“Business owners have a responsibility to legally and safely dispose of hazardous waste,” said United States Attorney Mike Stuart. “And everyone will be held accountable for violating these responsibilities.”
Miller, 56, of Charleston, faces up to 5 years of in prison, a $250,000 fine, supervised release for three years, and a special assessment when he is scheduled to be sentenced on July 19, 2018 by United States District Judge Joseph R. Goodwin. Executive Air faces a corporate fine of up to $500,000.
Executive Air’s business of fueling and servicing planes generated hazardous waste. The waste was stored in unlabeled 55 gallon drums that were kept on site. By September of 2015, Executive Air had accumulated 37 drums of waste fluid, of which 27 drums were hazardous under federal law. The 27 drums of hazardous waste included a mix of oil, aviation gas, and jet fuel, and each drum was hazardous because it was either ignitable, toxic, or both. Executive Air did not have the federally required permit to store such a large quantity of hazardous waste. Miller admitted that he knew about the drums of waste material at Executive Air. In his plea agreement, Miller admitted that he directed that employees of Executive Air to dispose of the waste drums in September of 2015. Instead of hiring a licensed hazardous waste hauler, the employees moved the drums in the middle of the night to a farm outside Charleston, West Virginia. The drums were further moved to a building in Charleston where they were discovered by the U.S. Environmental Protection Agency Criminal Investigation Division in November 2015. Once discovered, the drums were then sent to a licensed hazardous waste disposal facility for proper disposal.
Assistant United States Attorney Erik S. Goes and Special Assistant United States Attorney Perry D. McDaniel are handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Carroll County Public School Teacher Indicted for Child Pornography Production and Related Charges Including Attempted Enticement of A Minor to Engage in Illegal Sexual ActivityRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On May 2, 2018, a federal grand jury returned a superseding indictment against Kenneth Brian Fischer, age 40, of Westminster, Maryland for production of child pornography, attempted production of child pornography, transportation of child pornography, receipt of child pornography, and using a facility of interstate commerce to attempt to entice a minor to engage in sexual activity.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff James T. DeWees of the Carroll County Sheriff’s Office; Colonel Edwin C. Roessler Jr. of the Fairfax County, Virginia Police; the Carroll County State’s Attorney’s Office, and the Fairfax County Commonwealth's Attorney’s Office.
According to the eight-count indictment, Fischer was a resident of Carroll County, Maryland and was employed as a teacher by the Carroll County School System. Fischer used social media applications, including Kik and Grindr, to meet and communicate with underage minor males for the purpose of enticing and directing the minors to produce depictions of sexually explicit conduct and send them to Fischer.
In or about August 2017, law enforcement identified Fischer after he communicated with an undercover agent posing as a minor male on Grindr. Law enforcement subsequently executed a search warrant at Fischer’s home in Westminster, Maryland and seized various electronic devices. A search on a cell phone revealed that Fischer had been communicating with five real minors beginning in November 2014 and continuing through his arrest in September 2017.
According to the indictment, Fischer enticed three minor males to engage in sexually explicit conduct for the purpose of producing child pornography. Fischer also attempted to entice two minor males to engage in sexually explicit conduct for the purpose of producing child pornography. Fischer also sent e-mail messages containing videos and still images of one of the minor males engaged in sexually explicit conduct. Fischer received an image of another one of the minor males engaged in sexually explicit conduct.
Fischer was previously arrested in Westminster, Maryland on related charges and has been in custody since September 13, 2017.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Maryland State Police, the Carroll County Sheriff’s Office, the Carroll County State’s Attorney’s Office, the Fairfax County Police, and the Fairfax County Commonwealth’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Cambridge Hedge Fund Manager Sentenced for Investment Fraud SchemeRead the Press Release
BOSTON – The owner of two Cambridge-based investment advisory firms was sentenced today in federal court in Boston in connection with a scheme to defraud hedge fund investors.
Yasuna J. Murakami, 45, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to six years in prison and three years of supervised release. The Court also ordered Murakami to pay $10,520,634 in restitution and forfeit a luxury sports car that was purchased with proceeds of the fraud. In January 2018, Murakami pleaded guilty to wire fraud.
Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which he established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund. Between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts that he controlled. He used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores. Murakami used new investor contributions to make Ponzi scheme-like payments to earlier investors who had made redemption requests and to place investments in his own name.
As part of the fraud, Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing that their investments were safe.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms in May 2017. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. In January 2017, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, prosecuted the case.
Buffalo Man Pleads Guilty to Selling Crack Cocaine in BuffaloRead 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 Nathanial Myers, 26, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribute 280 grams or more of crack cocaine, before Chief U.S. District Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that between February and July of 2015, the defendant, along with several others, distributed crack cocaine base throughout the areas of Lombard, Rother, Gibson, and Playter Streets in Buffalo. During this same time, Myers would supply the crack cocaine to his co-conspirators for further re-sale.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.Sentencing is scheduled for August 9, 2018, at 10:00 a.m. before Judge Geraci.
Buffalo Man Pleads Guilty to Drug 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 Jesus Rojas, 32, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution of, cocaine and crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between October 27, 2016, and October 23, 2017, the defendant sold cocaine to a confidential source working with law enforcement officers on five separate occasions. On January 5, 2017, a search warrant was executed at Rojas’s residence on Military Road in Tonawanda. Officers seized over 25 grams of marijuana and a digital scale. A second search warrant was executed on October 23, 2017, and officers seized another quantity of marijuana.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 20, 2018, before Judge Arcara.
Brazilian National Pleads Guilty to Aggravated Identity Theft in Card-Skimming SchemeRead the Press Release
U.S. Attorney Duane A. Evans announced that Herik Lucian Enedino Dos Santos (“DOS SANTOS”), age 32, a citizen of Brazil, pleaded guilty yesterday before U.S. District Judge Sarah S. Vance to aggravated identity theft.
According to the court documents, Dos Santos and three other Brazilian nationals were arrested by members of the Louisiana Financial Crimes Task Force at a hotel in the Algiers neighborhood of New Orleans on August 3, 2017. Federal and state law enforcement officers found the defendants in possession of re-encoded credit cards that contained stolen debit card information from actual customers. These individuals also possessed embossers, encoders, ATM skimmers, false identification, and other contraband. In a coordinated investigation in Oklahoma City, U.S. Secret Service agents arrested another Brazilian national who had been mailing skimmers, pinhole cameras, and other tools for credit card fraud to the four New Orleans-based members of this conspiracy.
Dos Santos pleaded guilty to one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. He faces a mandatory sentence of two years in prison, one year of supervised release, and a $250,000.00 fine or a fine equal to the greater of twice the gross gain or twice the gross loss caused by this offense. Judge Vance scheduled the sentencing for August 22, 2018.
U.S. Attorney Evans praised the agencies that contributed to this investigation, which was a coordinated effort among federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Department, and the New Orleans Police Department. U.S. Attorney Evans thanked the U.S. Secret Service Oklahoma City Field Office and the Midwest City, OK Police Department for their assistance. Assistant United States Attorney Matthew Payne is in charge of the prosecution.
Boston Gang Member Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A member of the Vine/Forest Street gang was sentenced yesterday in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Daiquan Lucas, a/k/a “Sav Montana,” 25, of Boston, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison and six years of supervised release. While on supervised release, Scott will be precluded from entering the Orchard Gardens Housing Development and from being in contact or associating with approximately 20 individuals from the same area. In December 2017, Lucas pleaded guilty to distribution of cocaine base within 1,000 feet of a school.
On Dec. 11, 2015, Lucas sold cocaine base, a/k/a crack cocaine, to a cooperating witness near a school in Roxbury. Lucas is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city that have produced numerous crimes of violence.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.