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19 April 2018
San Diego Laboratory Agrees to Pay $2 Million to Settle False Claims Act Allegations Related to Unnecessary Breast Cancer TestingRead the Press Release
Biotheranostics Inc. has agreed to pay $2 million to resolve allegations that it submitted and caused the submission of false claims to Medicare for Breast Cancer Index (BCI) tests that were not reasonable and necessary for the diagnosis and treatment of breast cancer, the Department of Justice announced today. Biotheranostics is a diagnostic laboratory testing company located in San Diego, California.
“Health care providers are responsible for ensuring that the services they provide to Medicare beneficiaries are both reasonable and necessary,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Laboratories that knowingly submit claims for non-reimbursable services will be held accountable.”
By statute, Medicare can only pay for laboratory tests that are reasonable and necessary for the diagnosis or treatment of a patient’s illness or injury. The United States alleged that Biotheranostics knowingly promoted and performed the BCI test for breast cancer patients who had not been in remission for five years and who had not been taking tamoxifen, and thus for whom the test was not reasonable and necessary based on published clinical trial data and clinical practice guidelines.
“Fighting health care fraud will continue to be a priority of this office,” said United States Attorney Adam L. Braverman for the Southern District of California. “As this settlement demonstrates, we will vigorously investigate and hold responsible laboratories and other providers that choose to submit claims to federal health care programs for unauthorized or unnecessary services.”
The United States’ investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, and the Department of Health and Human Services Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Sacramento Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Tony Cong Van, 31, of Sacramento, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Van was arrested on February 2, 2018, after a traffic stop resulted in the seizure of a Glock 27 pistol with a high-capacity magazine loaded with 29 rounds of ammunition. Because Van was previously convicted of felonies in Sacramento County, he is prohibited from possessing firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento Police Department, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, Van faces a maximum statutory penalty of 10 years in prison and 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 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.
Round Rock Man Faces Federal Counterfeiting ChargesRead the Press Release
Authorities in Austin today arrested 58-year-old Steve Kim on federal counterfeiting charges, announced United States Attorney John F. Bash, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
A federal grand jury indictment returned this week charges Kim with one count of conspiracy to defraud the United States and one count of trafficking in counterfeit goods. According to the indictment, from January 2010 until June 2, 2017, Kim knowingly sold more than $325,000 worth of counterfeit sports apparel on eBay. A vast majority of the items was acquired in China and shipped to his home in Round Rock. Those items included National Basketball Association (NBA), Major League Baseball (MLB), National Football League (NFL), and National Hockey League (NHL) jerseys and hats.
On June 2, 2017, federal and state authorities executed a search warrant at the defendant’s residence and seized more than 2,300 items bearing counterfeit markings to include NBA, MLB, NFL, NHL, Reebok, Louis Vuitton, New Era and others. Suggested retail value of the seized items exceeds $189,000.
Upon conviction, Kim faces up to five years in federal prison on the conspiracy charge and up to ten years in federal prison on the counterfeit goods charge.
HSI Austin, with assistance from the Austin Police Department and the Williamson County Sheriff’s Office, investigated this case. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Reserve Man Sentenced to 60 Months in Prison for Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that RESHAD FRANK, age 40, of Reserve, was sentenced today for charges relating to narcotics trafficking.
FRANK pled guilty on October 12, 2017, to conspiring to distribute and to possess with the intent to distribute a quantity of cocaine hydrochloride.
Judge Jane Triche Milazzo sentenced FRANK to 60 months in the Bureau of Prisons, as well as 3 years of supervised release following the term of imprisonment.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Recently Apprehended Fugitive ChargedRead the Press Release
BOSTON – A man who was a fugitive for 20 years was indicted today in federal court in Boston in connection with failing to appear in court for a sentencing hearing in 1997.
Luis Alberto Solano-Pimental, 51, was indicted on one count of failure to appear. Solano-Pimentel was arrested on March 6, 2018, in Rhode Island after eluding law enforcement for 20 years. He has been detained since his arrest.
In 1997, Solano-Pimental pleaded guilty to passport fraud in federal court in Boston, but failed to appear on his scheduled sentencing date. Solano-Pimental remained a fugitive until he was arrested in Warwick, R.I.
The charge of failure to appear 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; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; John Gibbons, United States Marshal for the District of Massachusetts; and Jamie A. Hainsworth, United State Marshal for the District of Rhode Island, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Randolph Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Randolph man was indicted today in federal court in Boston on child pornography charges.
Michael Lee, 51, was indicted on one count of sexual exploitation of children and one count each of distribution, receipt, and possession of child pornography. In December 2017, Lee was charged in a criminal complaint and arrested and has been in federal custody since.
According to court records, a search warrant at Lee’s Randolph home was conducted as part of an ongoing investigation into the online trade of child pornography through the use of Kik, an instant messaging app. Lee admitted to the agents to trading images and videos of child pornography with other Kik users, including a New Hampshire man who provided Lee with images and videos documenting the sexual abuse of the man’s eight-year-old daughter. Preliminary on-scene forensic analysis of Lee’s cell phone corroborated his admissions.
The charge of sexual exploitation of children carries a mandatory minimum sentence of 15 years and up to 30 years in prison. The charge of possession of child pornography carries a sentence of no greater than 10 years in prison. The charges of distribution and receipt of child pornography carry a mandatory minimum sentence of five years and up to 20 years in prison. All four charges provide for a minimum of five years and up to a lifetime of supervised release and a fine of up to $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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Plymouth Robbery Results in Federal Prison TimeRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that today, GERALD KENNETH McCALOP, 24, of Butner was sentenced in United States District Court today. The charges stem from the July 20, 2017 robbery of the Jewel Shoppe in Plymouth.
Senior United States District Judge Malcolm J. Howard sentenced McCALOP TO 85 months in prison for his guilty plea to robbery of a business engaged in interstate commerce, and brandishing a firearm during and in relation to a crime of violence. McCALOP pled guilty to his participation in the robbery of the Jewel Shoppe, a jewelry store located on Water Street in Plymouth. On July 17, 2017, McCALOP and his co-defendants, Andre Cooper and Michael Leverette, entered the Jewel Shoppe armed with two handguns. The defendants held all the victims at gunpoint and one victim was tied up. The owner managed to set off the silent alarm and Plymouth Police Department officers responded within moments. When the officers arrived, the robbers were in the back trying to force their way out of the store. All three were then arrested. In the back of the store, the officers recovered jewelry, $150.00 in cash and two handguns. McCALOP provided a statement to the officers admitting his actions and implicating his co-defendants in the planning of the robbery.
Cooper and Leverette pled guilty in March 2018 to robbery and firearm charges, including felon in possession of firearms. Each are set for sentencing the week of June 12, 2018.
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.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Plymouth Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney John Bennett is prosecuting the case.
Plymouth Man Sentenced to 45 Months’ Imprisonment for Illegally Possessing A Firearm as A Convicted FelonRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 18, 2018, United States District Court Judge Robert D. Mariani sentenced Donald Korus, age 40, of Plymouth, Pennsylvania, to 45 months’ imprisonment for illegally possessing a firearm as a convicted felon.
According to United States Attorney David J. Freed, Korus unlawfully possessed a stolen handgun during an altercation outside his Plymouth home on October 2, 2015. Korus pointed the gun at two victims, who were outside Korus’s home to repossess a vehicle, and threatened them. In the ensuing struggle, the gun discharged, firing a single shot into the floor of the vehicle. Korus intentionally gave false testimony during an evidentiary hearing, resulting in additional jail time.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Plymouth Borough Police Department. Assistant United States Attorney Sean A. Camoni prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Pittsburgher with Previous Heroin Conviction in Federal Court Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Glaudis Lawrence, 45, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around January 2016, and continuing until in and around July 2016, in the Western District of Pennsylvania and elsewhere, Lawrence conspired with others to distribute and possess with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance. Lawrence has a prior federal felony drug-trafficking conviction that also involved heroin.
Judge Hornak scheduled sentencing for August 16, 2018, at 2:00 p.m. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Organized Crime and Drug Task force (OCDETF), comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with assistance from the Borough of McKees Rocks Police Department, the Borough of Ambridge Police Department, the Borough of Sewickley Police Department, the Crescent Township Police Department, the City of Aliquippa Police Department, the Borough of New Brighton Police Department, and the Pennsylvania Attorney General’s Office conducted the investigation that led to the prosecution of Lawrence.
Picayune Man Sentenced to 72 Months in Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss – Dennis Earl Smith, 49, of Picayune, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to 72 months in federal prison followed by three years of supervised release for distributing methamphetamine, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
Smith pled guilty on January 11, 2018, to one count of possession with intent to distribute methamphetamine. He was part of a five-person indictment against a group of individuals who were distributing methamphetamine in the Picayune area. During the course of the investigation, law enforcement purchased two ounces of pure methamphetamine from Smith.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Owners of Hardin and Bullitt County Moving Companies Sentenced for Defrauding the ArmyRead the Press Release
LOUISVILLE, Ky. – The owners of three moving companies, located in Bullitt and Hardin Counties in Kentucky, were sentenced today in United States District Court by Senior Judge Charles R. Simpson, to serve 15 months in prison, serve a three year period of supervised release, and pay a $7,500 fine, for overbilling the United States Army for Household Good Shipment moves of Soldiers, announced United States Attorney Russell M. Coleman. There is no parole in the federal prison system.
"This is a victory for taxpayers and a warning to those who would line their pockets by engaging in a fraud against the United States, ” stated United States Attorney Russell Coleman. This office is committed to working with our federal partners in pursuing criminal charges and financial penalties against dishonest government contractors.”
“These sentencings should serve as a deterrent to defense contractors at any level who would engage in dishonest and fraudulent practices in order to increase their profit margin,” said Brian Hauck, Special Agent-in-Charge of the U.S. Army Criminal Investigation Command's North Central Fraud Field Office. "We will diligently pursue those engaged in criminal activity that impacts the integrity of U.S. Government programs and resources within our purview."
“U.S. Armed Forces members sacrifice a great deal while serving their country, including making frequent duty station moves with their families and household goods,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “It is unacceptable for any DoD contractor to manipulate military Permanent Change of Station moves through corrupt practices to line their pockets while providing essential transportation services to our Warfighters. These sentences highlight the effectiveness of DCIS investigations, in concert with our law enforcement partners, to combat fraud, waste, and abuse throughout the Department of Defense.”
Lonnie Curl, 63, of Brooks, Kentucky, is jointly and severally liable with the codefendant, William Kenneth Montgomery, 59, of Shepherdsville, Kentucky for the full amount of restitution due totaling $132,413.26 to the United States Army.
Both defendants admitted in open court in their plea agreements that they owned Lynn Moving and Storage, E-Town Moving and Storage, and Shadowens Moving and Storage. The three companies provided household good shipment (HHG) moves to members of military through the transportation office located at Ft. Knox in Radcliff, Kentucky, in the Western District of Kentucky. Curl and Montgomery engaged in a conspiracy to fraudulently increase the weight of HHG shipments and overbill the United States Department of the Army for HHG shipments. Curl and Montgomery agreed to instruct and instructed employees to increase the weight of HHG shipments by adding fuel prior to a final shipment weight and adding a pallet of paper weighing between 1000 to 2000 pounds, among other methods. Curl and Montgomery agreed to cause and caused the fraudulently inflated weight tickets to be submitted to the Army for payment, and agreed to cause and caused fraudulently inflated payments to be issued to Lynn Moving and Storage, E-Town Moving and Storage, and Shadowens Moving and Storage. The amount of the overpayments was $132,413.26. Both
Curl and Montgomery acted as managers and supervisors of five or more employees that were encouraged and instructed to participate in the conspiracy to increase the weight of HHG shipments billed to the United States Department of the Army.
Further, the companies and its owners admitted to violating the False Claims Act and on January 10, 2018 agreed to pay $264,826.52 in civil penalties and damages. The Consent Judgment resolved a lawsuit filed by the United States in the Western District of Kentucky styled United States of America v. Lynn Moving and Storage, Inc. et al., Civil Action No. 3:18-cv-000190-CRS (WDKY).
The criminal case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Defense Criminal Investigative Service and the Army Criminal Investigative Division. The civil case was handled by Assistant Untied States Attorney Ben Schecter.
montgomery_curl_sentencing_4_19_18_final_0.docOwner of Schools that Illegally Allowed Foreign Nationals to Remain in U.S. as ‘Students’ Sentenced to 15 Months in Federal PrisonRead the Press Release
LOS ANGELES – The owner of four schools that enrolled hundreds of foreign nationals who fraudulently obtained immigration documents allowing them to remain in the United States as “students” – even though they rarely, if ever, attended classes – was sentenced today to 15 months in federal prison and ordered to forfeit more than $450,000.
Hee Sun Shim (also known as Leonard Shim and Leo Shim), 54, of Hancock Park, was sentenced by United States District Judge George H. Wu. Shim, who was ordered to begin serving his sentence in 60 days, was further ordered to forfeit to the government $431,508 seized from bank accounts and $34,860 in cash seized during the execution of a federal search warrant at his former residence in Beverly Hills in March 2015.
Shim pleaded guilty last year to one count of conspiracy to commit immigration fraud and one count of immigration document fraud in relation to what prosecutors called “a sophisticated, extensive, and lucrative fraud scheme that operated for many years in the Koreatown area of Los Angeles.”
Shim, along with two co-defendants – ran a “pay-to-stay” scheme through three schools in Koreatown – Prodee University/Neo-America Language School; Walter Jay M.D. Institute, an Educational Center (WJMD); and the American College of Forensic Studies (ACFS). A fourth school in Alhambra – Likie Fashion and Technology College – was also involved in the scheme, which ran for at least five years.
Prodee and the other schools issued immigration documents to foreign nationals who were not bona fide students, had no intention of attending the schools, and sometimes lived outside of California – including in the states of Washington and New York. As part of the conspiracy, Shim created bogus student records, including transcripts, for some of the students for the purpose of deceiving immigration authorities. In exchange for the immigration documents that allowed them to remain in the United States, the purported “students” made “tuition” payments to Shim and his co-conspirators to “enroll” and remain enrolled at the schools.
The investigation in this case began in 2011 after a compliance team with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Student and Exchange Visitor Program, made an unannounced site visit to Prodee University’s main campus on Wilshire Boulevard. During the visit, the team observed only one English language class with three students in attendance, even though records indicated nearly 1,000 foreign students were enrolled at Prodee’s two campuses. That same day, an unannounced visit to ACFS found only one religion class in session with a single student present, even though the school had more than 300 foreign students in active status.
As detailed in court papers, Prodee and its affiliated schools were authorized to issue a document that certified a foreign national had been accepted to a school and would be a full-time student. The document – “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” which is commonly called a Form I-20 – made a student eligible to obtain an F-1 student visa that would allow the student to enter and remain in the United States while the student was making normal progress toward completing a full course of study.
“As [Shim] and his co-conspirators knew, these Form I-20s were based on false claims, false statements, and fraud since the purported foreign students had no intention of attending school and were not bona fide students,” Shim admitted in his plea agreement.
Two other defendants charged in this case – Hyung Chan Moon and Eun Young Choi – previously pleaded guilty to conspiracy and immigration document fraud. Moon is scheduled to be sentenced by Judge Wu on May 17, and Choi is scheduled to be sentenced on June 7.
The investigation into the Prodee schools was conducted by HSI, which received substantial assistance from U.S. Citizenship and Immigration Services’ Fraud Detection and National Security Division.
This case is being prosecuted by Assistant United States Attorneys Wilson Park of the Violent and Organized Crime Section, Lindsey Dotson of the Public Corruption and Civil Rights Section, and Katie Schonbachler of the Asset Forfeiture Section.
Oakland Residents Charged with Cocaine Distribution Offenses and Related CrimesRead the Press Release
OAKLAND - A federal grand jury indicted six individuals, all of whom are Oakland residents, for distributing drugs in the area of 85th Avenue and International Boulevard in East Oakland, announced United States Attorney Alex G. Tse; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill A. Snyder; and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Chris Nielsen. The indictments were unsealed today.
The six defendants all were charged in separate indictments as part of a larger crackdown against drug distributers in the area. The indictments charge conduct occurring between February 2017 and April 2018, and each defendant is charged with distribution of cocaine, cocaine base, or both. In addition, two defendants, Timothy Crawford and Ridell Lambert, are charged with being felons in possession of a firearm. The precise charges against each defendant, as well as their ages, are set out in the chart below:
Defendant
Age
Charges
Statute
Timothy Crawford
55
Distribution of 28 Grams or More of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii)
Distribution of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Felon in Possession of a Firearm
18 U.S.C. §922(g)(1)
Alan Johnson
40
Distribution of 28 Grams or More of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii)
Distribution of Cocaine and/or Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Ridell Lambert
30
Distribution of 28 Grams or More of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii)
Distribution of Cocaine and/or Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Felon in Possession of a Firearm
18 U.S.C. §922(g)(1)
Wilmon Ingram
40
Distribution of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Karlos Ely
52
Distribution of 28 Grams or More of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii)
Keith Woodson
34
Distribution of Cocaine and/or Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalties for the crimes of which the defendants have been accused are as follows:
Distribution of 28 Grams or More of Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(iii)
Minimum 5 years prison
Maximum 40 years
Minimum 4 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $5,000,000 fine
Distribution of Cocaine and/or Cocaine Base
21 U.S.C. §§ 841(a)(1) and (b)(1)(C)
Maximum 20 years imprisonment
Maximum lifetime supervised release following incarceration
Minimum 3 years supervised release
Maximum $1,000,000 fine
Felon in Possession of a Firearm
18 U.S.C. § 922(g)(1)
Maximum 10 years in prison
Maximum 3 years supervised release
Maximum $250,000 fine
Additional fines, forfeitures, denial of federal benefits, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants, except Crawford, were arrested yesterday as part of a criminal enforcement operation and made their initial appearances this morning in federal court before Kandis A. Westmore, U.S. Magistrate Judge. Magistrate Judge Westmore scheduled appearances for defendants Johnson and Ingram on April 23, 2018, and Lambert and Woodson on April 24, 2018, to consider their detention status. Judge Westmore scheduled an appearance for Ely on April 23, 2018, to identify his counsel. No federal appearance has been scheduled yet for Crawford.
In addition to these federal defendants, Arthur Long, 33, and Deshawn Murphy, 26, both from Oakland, are being prosecuted by the Alameda District Attorney’s Office for alleged violations of California Health and Safety Code § 11352. Questions about the state charges may be directed to the District Attorney’s Office.
Assistant U.S. Attorneys Helen Gilbert and Shailika Kotiya are prosecuting the case. The prosecutions are the result of an investigation by the ATF and the DEA with assistance from the Oakland Police Department. The investigation is part of this district’s Organized Drug Enforcement Task Force program.
New York Woman Pleads Guilty in Complex Fraud Scheme Involving Credit Card Payment ProcessingRead the Press Release
PITTSBURGH, PA –A New York resident pleaded guilty in federal court to a charge of conspiracy to commit bank, mail, and wire fraud, United States Attorney Scott W. Brady announced today.
Svetlana Kapralova, 30, of Astoria, New York, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Kapralova was involved in a complex fraud that involved fraudulently processing credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs and of products violating trademark infringement laws. Kapralova participated in the conspiracy designed to conceal from the credit card companies the fact she and her co-conspirators used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity. The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold a product other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
Judge Cercone scheduled sentencing for August 31, 2018 The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. 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.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police, and United States Postal Inspection Service conducted the investigation that led to the prosecution of Kapralova.
New York Man Pleads Guilty to Credit Card FraudRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, today announced that XIAO BIN XU, 22, of Bayside, New York, waived his right to be indicted and pleaded guilty yesterday before Chief U.S. District Janet C. Hall in New Haven to one count of access device fraud.
According to court documents and statements made in court, between July 2014 and April 2015, XU was a member of a group of individuals from New York that engaged in counterfeit credit card transactions at retail stores along the East Coast. Mei Bao Lu was the ringleader of the group and Yang-Shi Lin was Lu’s second-in-command. As part of the scheme, Lu provided several individuals (“buyers”) with counterfeit credit cards, which had been produced from credit card information skimmed from cardholders, and directed the buyers to purchase gift cards and luxury merchandise using the counterfeit cards. Lu then sold the items to other individuals at a discount in order to be fenced or sold on the black market. XU was one of the buyers in the group and also recruited other individuals to serve as buyers. The group engaged in fraudulent credit card transactions at retail stores in Connecticut, Florida, Maine, Massachusetts, New York, New Jersey, Pennsylvania and West Virginia.
In total, the group members used 120 counterfeit credit cards, issued by 18 victim financial institutions, to make a total of approximately $179,000 in fraudulent purchases.
The investigation began in February 2015 when the Clinton Police Department and other police departments in nearby Connecticut towns received several complaints from citizens about unauthorized charges on their credit and debit cards. The investigation revealed that many of the complaining citizens had all dined at the same Clinton restaurant during a two-week period in early February 2015.
Chief Judge Hall scheduled sentencing for July 24, 2018, at which time XU faces a maximum term of imprisonment of 10 years. XU has been released on bond since his arrest on September 10, 2015.
Lu and Lin, both of Flushing, New York, previously pleaded guilty to related charges. On February 5, 2018, Chief Judge Hall sentenced Lin 12 months and one day of imprisonment. On February 7, Chief Judge Hall sentenced Lu to 18 months of imprisonment.
Several other members of LU’s group were charged and convicted for credit card related offenses in state and federal courts in Maine, New Jersey, New York, and West Virginia.
This investigation has been conducted by Homeland Security Investigations and the Clinton Police Department. The U.S. Secret Service, Millburn (N.J.) Police Department, New York Police Department, New York State Police, Acton (Mass.) Police Department, and Barboursville (W. Va.) Police Department assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
New York Man Admits Violent Multi-State Criminal Rampage Involving Kidnapping, Assault, and ArsonRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted engaging in a violent, multi-state crime spree in which he kidnapped his former girlfriend, assaulted a federal employee, and set fire to a used car dealership, U.S. Attorney Craig Carpenito announced.
Luis Figueroa, 37, pleaded guilty before Senior U.S. District Judge Stanley R. Chesler in Newark federal court to Counts One, Three, Five and Six of an indictment charging him with kidnapping, possession of a firearm by a convicted felon, assaulting an employee of the United States, and arson.
According to documents filed in this case and statements made in court:
On the morning of June 6, 2014, Figueroa – armed with a shotgun – waited outside the Hazleton, Pennsylvania apartment of his former girlfriend, identified as “Victim 1” in the indictment. When Victim 1 emerged from the apartment, Figueroa physically assaulted Victim 1, including striking Victim 1 in the head with the shotgun.
Afterwards, Figueroa led Victim 1 to a red SUV, where he forced Victim 1 into the backseat. Figueroa then drove Victim 1 across state lines to New Jersey, eventually stopping at rest stop area near the Kittatinny Point Visitor’s Center, on federal property. After Figueroa left the red SUV to dispose of the shotgun in a nearby wooded area, Victim 1 climbed into the driver’s seat of the red SUV and drove away to safety.
After returning and discovering both Victim 1 and the red SUV were missing, Figueroa approached a National Park Service employee – identified in the indictment as “Victim 2” – who was blowing leaves. Figueroa led Victim 2 to a nearby storage room, where he slammed Victim 2’s head against a door and threatened to harm Victim 2 further if Victim 2 did not hand over Victim 2’s car keys. Victim 2 complied, and Figueroa fled the scene in Victim 2’s red minivan.
Figueroa drove Victim 2’s red minivan to Paterson, New Jersey, where Figueroa entered a used car dealership operated by a person with whom Figueroa had a business relationship. Figueroa asked an employee for a portable gas canister, which he filled shortly thereafter at a nearby gas station.
Figueroa then returned to the dealership, went to a small office building on the dealership property, and doused the structure with gasoline. After a brief struggle with a dealership employee, Figueroa ignited a match and set the building on fire, engulfing the structure in flames. Figueroa set himself on fire in the process, as well. Figueroa extinguished himself with a nearby garden hose, and then fled the scene in a white SUV.
Law enforcement officers searched for Figueroa and the white SUV, eventually locating it on the George Washington Bridge heading into New York. Figueroa ignored officers’ commands to stop, leading to a high-speed chase in which Figueroa rammed the white SUV into multiple police vehicles. At one point, Figueroa got out of the white SUV and fled on foot. Officers placed Figueroa under arrest shortly thereafter.
According to the terms of the plea agreement, if accepted by the court, Figueroa will receive a term of 26 years in prison. Sentencing is scheduled for July 19, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge John B. Devito in Newark Field Division, with the investigation leading to today’s plea. He also thanked the Hazelton City Police Department, the Luzerne County, Pennsylvania, District Attorney’s Office, the N.J. State Police, the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
New York City Pharmacy Owner Pleads Guilty to Committing $8.5 Million Fraud on Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SAJID JAVED, an owner and operator of nine different pharmacies in the New York City area, pled guilty today to participating in a health care fraud scheme that used his pharmacies to submit more than $8.5 million in fraudulent claims to Medicare and Medicaid. JAVED was arrested in 2016 as part of an unprecedented nationwide sweep led by the Medicare Fraud Strike Force, resulting in criminal and civil charges against more than 300 individuals for their alleged participation in health care fraud schemes involving approximately $900 million in false billings. JAVED pled guilty in Manhattan federal court today before the Honorable Vernon S. Broderick.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Sajid Javed fraudulently billed Medicare and Medicaid more than $8.5 million for drugs that were never actually dispensed. He did this by inducing others to forego their prescription medications for kickbacks. This scheme not only put patients at risk, it also contributed to the multibillion-dollar theft of federally funded public health care subsidies.”
According to the Complaint and the Superseding Information filed in Manhattan federal court, and statements made in connection with JAVED’s guilty plea:
While owning and operating nine different pharmacies in Brooklyn and Queens, JAVED perpetrated a multimillion-dollar scheme to defraud Medicare and Medicaid programs by seeking reimbursement for prescription drugs that were never distributed to customers. From January 2013 through July 2015, JAVED obtained more than $8.5 million in reimbursements from Medicare and Medicaid for prescription drugs that his pharmacies never actually dispensed to customers. JAVED tricked Medicare and Medicaid into paying these reimbursements by obtaining prescriptions from individuals who were willing to forego delivery of the medications in exchange for a share of the reimbursements. JAVED offered to pay, and in fact paid, such kickbacks in furtherance of the unlawful scheme.
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JAVED, 47, of Fresh Meadows, Queens, pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
JAVED is scheduled to be sentenced by Judge Broderick on August 24, 2018, at 2:30 p.m.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the Department of Health and Human Services Office of the Inspector General.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Sarah E. Paul are in charge of the prosecution.
New Orleans Woman Pleads Guilty to Assaulting Postal WorkerRead the Press Release
U.S. Attorney Duane A. Evans announced that ANITRA SMITH, age 37, a resident of New Orleans, pleaded guilty today to a one-count bill of information with assaulting, resisting, or impeding certain officers or employees, in violation of Title 18, United States Code, Section 111(a).
According to the bill of information, SMITH assaulted an employee of the U.S. Postal Service while that person was on duty. SMITH faces a maximum term of imprisonment of one year, a maximum fine of $100,000, a maximum term of supervised release of one year, and a mandatory $25 special assessment.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
New Orleans Man Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that GARRET TEMPLETON, age 33, of New Orleans, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, TEMPLETON pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine. TEMPLETON faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release.
U.S. District Judge Ivan L.R. Lemelle set sentencing for TEMPLETON on July 18, 2018.
According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area. LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied Anna THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and TEMPLETON in Louisiana. Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and Dawn CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
New Orleans Man Charged with Gun and Drug OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that TERRELL MUSE, age 24 of New Orleans, was indicted April 12 by a federal grand jury.
According to the indictment, MUSE, a convicted felon, illegally possessed two firearms and quantities of crack cocaine and heroin. If convicted on the charges, MUSE faces a term of imprisonment of up to 10 years, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.
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 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.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Orleans Police Department. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.
More Than a Dozen Defendants Charged in Federal Drug Probe on West Side of ChicagoRead the Press Release
CHICAGO — More than a dozen individuals, including the owner of an auto body shop where drugs were stashed, are facing criminal charges as part of a federal investigation into drug trafficking on the West Side of Chicago.
The investigation, dubbed “Operation Broken Roe,” centered on drug sales in the city’s Little Village and West Garfield Park neighborhoods, and resulted in the seizure of distribution quantities of heroin, fentanyl, MDMA pills and cocaine. Authorities also seized 12 illegal firearms, including an assault rifle, and nearly $60,000 in narcotics proceeds.
One of the defendants publicly advertised the sale of MDMA pills – commonly known as ecstasy – on social media. His Instagram posting displayed a photo of dozens of pills, alongside a telephone number. Another defendant owned an auto body shop where illegal narcotics were mixed, packaged and stored.
The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.
Criminal complaints and affidavits filed in federal court in Chicago charge 14 defendants with various drug offenses. Several of the defendants were arrested Wednesday. Detention hearings will be held on April 24, 2018, before U.S. Magistrate Judge Jeffrey Cole. Five other defendants were charged in state complaints and will appear at a later time in Cook County Criminal Court.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Eddie Johnson, Superintendent of the Chicago Police Department; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Cook County State’s Attorney’s Office and the Internal Revenue Service Criminal Investigation, Chicago Field Office, provided valuable assistance.
According to the charges, JONATHAN REYNA, 25, of Berwyn, and MARCO MENDOZA, 24, of Lyons, operated a drug trafficking organization that distributed heroin and fentanyl in the Chicago area. COREY BENSON, 23, of Chicago, participated in the organization by regularly distributing Reyna’s and Mendoza’s narcotics and collecting payment from customers, according to the charges. ANTON COLE, 23, of Chicago, ANTON LITTLE JR., 20, of Chicago, and DEVONTAY JOHNSON, 26, of Chicago, worked with Benson to distribute heroin to customers. PRINCE BRUNT, 36, of Chicago, who owns the auto body shop in the 3300 block of West Cermak Road in Chicago, participated in the organization by permitting Benson to manufacture and store narcotics at the shop, according to the charges. LARRY JONES, 55, of Chicago, and COMMANDER WHITE, 27, of Chicago, also distributed Reyna’s and Mendoza’s narcotics, the complaint states.
Undercover law enforcement officers purchased various quantities of heroin and MDMA pills from Johnson in the summer and fall of 2017, the complaints state. The purchases occurred near a residence in the 4300 block of West Wilcox Street in Chicago, where NATASHA SUMMERVILLE, 30, of Chicago, maintained a drug stash house, the charges allege. It was Johnson – using the profile name deadendboi_vtay – who publicly posted the photo of the MDMA pills on Instagram, the complaint states. Johnson’s sources for the pills were MAURICE CARROLL, 28, of Chicago, and HENRY MERRILL, 31, of Chicago, the charges allege.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Elizabeth R. Pozolo and Aaron R. Bond are representing the government.
Moline Man Sentenced to Two Years in Prison for Falsifying Records, Making False Statements Under Oath in Bankruptcy ProceedingsRead the Press Release
ROCK ISLAND, Ill. -- A Moline, Ill., man, Samir A. Patel, 49, was sentenced today for bankruptcy fraud. Chief U.S. District Judge James E. Shadid ordered Patel, of the 3600 block of 73rd Street, to serve 24 months in prison, and upon release from prison, to remain on supervised release for a three-year term.
On Oct. 17, 2017, Patel pleaded guilty to the charges as alleged in the indictment that he falsified records and lied under oath related to bankruptcy proceedings. After filing a bankruptcy petition in June 2013 to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code, in August and September 2013, Patel provided the Bankruptcy Trustee with altered bank statements and summaries of his bank account.
In addition, Patel admitted that he falsely testified under oath in a bankruptcy proceeding, a September 2013 meeting of creditors, that a $5,000 wire transfer deposit into his account was a loan from a friend of his wife to help the couple pay living and business expenses. In fact, the deposit was a $315,000 wire transfer from a law firm related to a business transaction and which Patel was attempting to conceal from creditors and the Bankruptcy Trustee.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service and the IRS Criminal Investigation Division, in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney John K. Mehochko prosecuted the case.
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana. “I am grateful to U.S. Attorney Childress and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by today’s sentencing.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Minnesota Doctor Agrees to Pay $30,000 to Resolve Alleged Controlled Substances Act ViolationRead the Press Release
United States Attorney Gregory G. Brooker today announced a $30,000 civil settlement with DR. MICHAEL T. SCHULENBERG, a Minnesota physician. The civil settlement stems from allegations that DR. SCHULENBERG violated the Controlled Substances Act.
According to an investigation conducted by the Drug Enforcement Administration (“DEA”), on April 14, 2016, DR. SCHULENBERG, prescribed Schedule 2 controlled substances in the name of an individual, knowing that the controlled substances were intended to be used by another individual, in violation of the Controlled Substances Act.
As a licensed physician in the State of Minnesota registered with the DEA as a practitioner authorized to dispense Schedule 2-5 controlled substances, DR. SCHULENBERG is subject to requirements of the Controlled Substance Act as administered by the DEA. The U.S. Attorney’s Office and DEA contend that DR. SCHULENBERG’S conduct amounted to a civil violation of the Controlled Substances Act.
“Doctors are trusted medical professionals and, in the midst of our opioid crisis, they must be part of the solution,” said U.S. Attorney Greg Brooker. “As licensed professionals, doctors are held to a high level of accountability in their prescribing practices, especially when it comes to highly addictive painkillers. The U.S. Attorney’s Office and the DEA will not hesitate to take action against healthcare providers who fail to comply with the Controlled Substances Act. We are committed to using every available tool to stem the tide of opioid abuse.”
DEA Minneapolis-St. Paul Division Assistant Special Agent in Charge Kenneth Solek said, “As Minnesota and the Nation struggle in the throes of an opioid crisis, the Drug Enforcement Administration will always strive to ensure that those responsible will be held accountable, no matter what their position may be.”
As part of the settlement, DR. SCHULENBERG has agreed to pay $30,000 to the United States within thirty days of the effective date of the agreement.
According to the settlement agreement, DR. SCHULENBERG entered into a Memorandum of Agreement (“MOA”) with the DEA under which he agreed to comply with heightened compliance requirements for logging and reporting his prescriptions of controlled substances to the DEA for a period of two years. DR. SCHULENBERG agreed to the following terms and conditions:
- Maintain log(s) of all controlled substances prescribed, including the initials and address of the patient, date, quantity, strength, dosage and diagnosis for the controlled substance.
- Allow DEA personnel to access and inspect the log(s) and all other required controlled substance records, reports and inventories and to enter his registered location at any time during business hours, without prior notice, to verify compliance with the Agreement.
- Submit to DEA copies of controlled substance log(s) on a quarterly basis.
- Allow DEA access to prescribing history using the State of Minnesota Prescription Monitoring Program and, upon demand by DEA, provide a prescribing history report to the DEA from the Minnesota Board of Pharmacy.
This matter was investigated by the DEA Minneapolis-St. Paul Division and was handled by Assistant U.S. Attorney Bahram Samie of the Civil Division of the U.S. Attorney’s Office for the District of Minnesota.
In reaching this settlement, DR. SCHULENBERG did not admit liability and the government did not make any concessions regarding the legitimacy of the claims.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Duane A. Evans announced that ERNESTO CONTRERAS-REYES, age 42, a citizen of Mexico, was sentenced today after pleading guilty to a one-count indictment charging him with illegal use of a Social Security number.
U.S. District Judge Ivan L.R. Lemelle sentenced CONTRERAS-REYES to time served, and he was placed on supervised release for one year. Following the completion of his sentence, CONTRERAS-REYES will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mescalero Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Russel Patrick Bearshield, 30, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison for his assault conviction. He will be on supervised release for two years after completing his prison sentence.
The BIA arrested Bearshield on June 23, 2017, on a criminal complaint charging him with assaulting a Mescalero Apache woman on Sept. 9, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M. Bearshield assaulted the woman by throwing a television at her, and by punching, striking and kicking her in the face.
On Oct. 5, 2017, Bearshield pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the guilty plea, Bearshield admitted that on Sept. 9, 2016, he assaulted the victim by punching her several times with a closed fist. As the result of the assault, the victim suffered a fractured orbital bone, which required surgery.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought 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.
Luzerne County Woman Sentenced to Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Brianna Rattigan, age 25, of Wilkes-Barre, Pennsylvania, was sentenced on April 18, 2018, to serve one year in prison by Senior U.S. District Court Judge James M. Munley, for her role in a heroin trafficking conspiracy that operated in Luzerne County during February through November 2014.
According to United States Attorney David J. Freed, Rattigan previously pleaded guilty to conspiracy to possess with intent to distribute more than 100 grams of heroin. Rattigan admitted to allowing her sister, Megan Fox, to store between 100 and 400 grams of heroin in Rattigan’s residence. That quantity of heroin is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Megan Fox previously pleaded guilty to running the heroin trafficking operation while the leader of the drug ring, Desmond Mercer, was in prison. Fox was sentenced to 30 months in prison. Mercer was sentenced to 14 years in prison.
Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Rattigan was indicted by a federal grand jury in February 2016, as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Munley also ordered Rattigan to serve three years on supervised release following her prison sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lincoln Man Convicted of Methamphetamine ChargesRead the Press Release
United States Attorney Joseph P. Kelly announced that on April 19, 2018, Rodney P. Mazzulla, 57, of Lincoln, Nebraska, was convicted by a federal jury of three charges involving the distribution of pure methamphetamine. Mazzulla was convicted of conspiracy to distribute and possess with intent to distribute 50 grams or more of actual (pure) methamphetamine between 2013 and April of 2017. He was also convicted of two counts of possession with intent to distribute actual (pure) methamphetamine. The trial began in federal court in Lincoln on Monday, April 16, 2018, before United States District Judge John M. Gerrard. The jury received the case on Thursday afternoon and deliberated for a total of approximately five hours before returning their verdict on Friday morning.
On April 2, 2017, a search warrant was executed at a large storage garage in southwest Lincoln. Mazzulla was found to be living in a camper inside the garage. Officers found at least 49 grams of pure methamphetamine, a loaded 9mm pistol, a digital scale, and packaging materials in the camper. A second firearm was found elsewhere in the garage. On April 22, 2017, a second search warrant was executed at the same storage building. Mazzulla was again found inside. At that time, officers found at least 210 grams of pure methamphetamine hidden under the hood of a van parked in the garage. Witnesses testified about Mazzulla’s involvement in the distribution of methamphetamine in the Lincoln area prior to the April, 2017, searches. In addition, evidence was presented regarding a contact made by Lincoln officers with Mazzulla in July of 2015 in which he was found to be in possession of a small amount of methamphetamine. At that time, Mazzulla told officers he had been selling methamphetamine since 2013 and that he had sold one to two ounces per week over the prior year.
Sentencing is scheduled for July 13, 2018. Mazzulla faces a possible sentence of not less than 10 years nor more than life imprisonment and a fine of up to $10,000,000.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lincoln County Man Sentenced to Prison for Failing to Register as a Sex OffenderRead the Press Release
BECKLEY, W.Va. – A South Carolina man who moved to Lincoln County and failed to register as a sex offender was sentenced to 2 years in federal prison today, announced United States Attorney Mike Stuart. Cody Matthew Wroblewski, 33, of Harts, will spend 10 years on federal supervised release following his sentence. Stuart praised the work of the United States Marshals Service and the West Virginia State Police.
“Sex offenders that do not register as required must be held accountable,” said United States Attorney Mike Stuart. “The safety of our children depends on it.”
Wroblewski admitted that from January 2017 until his arrest on August 30, 2017, he failed to register as a sex offender as required by the Sex Offender Registration and Notification Act. On August 30, 2017, Wroblewski was located and arrested at his residence on Bag Harts Creek Road in Lincoln County. Wroblewski was required to register as a sex offender because of a 2011 South Carolina conviction for third degree criminal sexual conduct involving a minor victim. He was also previously convicted in 2012 in South Carolina for failing to update his sex offender registration.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. United States District Judge Irene C. Berger presided over the sentencing hearing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Las Vegas Man Charged with Selling Hundreds of Firearms Without A LicenseRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who allegedly sold hundreds of firearms without a license, some of which were subsequently used in crimes, was charged in federal court today, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Sylvester Mitchell, 47, made his initial appearance in court before U.S. District Magistrate Judge Peggy Leen. He was charged by a federal criminal complaint with one count of dealing in firearms without a license. The charge carries a maximum term of five years in prison. A preliminary hearing is set for May 16, 2018.
As alleged in the criminal complaint that was unsealed today, Mitchell purchased approximately 438 firearms between January 2004 and November 2017. Of those firearms, approximately 42 were subsequently recovered and found to have been illegally possessed, used in a crime, or suspected to have been used in a crime. Those firearms were recovered in Southern California, Nevada, and Mexico. Two of the most recent recoveries were from homicide scenes in Las Vegas, Nevada. Over the course of 2017, Mitchell purchased 199 firearms for a total cost of $58,942.
The complaint alleges that Mitchell, who did not have a license to sell firearms, placed several advertisements offering firearms for sale on Backpage.com. ATF records showed a pattern of Mitchell purchasing new firearms from Federal Firearm Licensees (FFLs) on a weekly basis and that he went to multiple FFLs on the same day. In some instances, he purchased firearms from FFLs and posted the firearms for sale on Backpage.com a few days or weeks later. It further alleges that between June 1, 2017 and September 14, 2017, law enforcement conducted multiple undercover firearms purchases from Mitchell based on his Backpage.com advertisements. Among the purchases was an AR-15 rifle.
A criminal complaint contains allegations that the defendant has committed a crime, and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton is prosecuting the case.
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Lance Armstrong Agrees to Pay $5 Million to Settle False Claims Allegations Arising from Violation of Anti-Doping Provisions of U.S. Postal Service Sponsorship AgreementRead the Press Release
WASHINGTON – Former professional cyclist Lance Armstrong agreed to pay the United States $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (“PEDs”) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (“USPS”), which sponsored Armstrong’s cycling team during six of the seven years Armstrong appeared to have won the Tour de France, the Department of Justice announced today.
“No one is above the law,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “A competitor who intentionally uses illegal PEDs not only deceives fellow competitors and fans, but also sponsors, who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable.”
From 1996 through 2004, the USPS sponsored a professional cycling team. The sponsorship agreements required the team to follow the rules of cycling’s governing bodies, including the rules prohibiting the use of certain performance enhancing substances and methods. Between 1999 and 2004, Lance Armstrong was the lead rider on the team, and he appeared to win cycling’s most prestigious event, the Tour de France, six consecutive times.
“This settlement resolves allegations that Lance Armstrong violated the terms of his team’s sponsorship by the U.S. Postal Service,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “We will continue to work with our federal partners to protect taxpayer dollars and to ensure that those who do business with the federal government fulfill their contractual obligations.”
The United States’ lawsuit against Armstrong alleged that Armstrong and his team regularly and systematically employed PEDs, in violation of the USPS sponsorship agreements. The lawsuit further alleged that Armstrong made numerous false statements, directly and through team managers and spokesmen, to USPS management and to the public denying his PED use to induce the USPS to renew its sponsorship of the team in late 2000, and to increase the sponsorship fees (and, by extension, Armstrong’s own salary) in light of Armstrong’s apparent Tour de France victories in 1999 and 2000. In addition, the lawsuit alleged that Armstrong took active measures to conceal his PED use during the USPS sponsorship, and even after the sponsorship ended, including lying under oath about his PED use in a 2005 arbitration proceeding involving his entitlement to a bonus for the 2004 Tour de France result; suing the Times of London and one of its sources – a former team masseuse – for libel; and threatening other people with similar lawsuits and other forms of retribution for disclosing their knowledge or suspicions of his doping activities.
“The Postal Service has strongly supported the Department of Justice’s intervention and pursuit of this case, as it always has been our position that Lance Armstrong misled the Postal Service,” said Thomas J. Marshall, U.S. Postal Service General Counsel and Executive Vice President. “This matter has now been resolved in a manner that imposes consequences for that wrongful action. With this case, as in all other instances, the Postal Service vigorously defends our brand and our position as a trusted government institution.”
In October 2012, the U.S. Anti-Doping Agency (“USADA”) issued a report and decision finding that Armstrong and his USPS teammates had engaged in a persistent and concerted doping program designed to enable Armstrong to win the Tour de France. In the wake of the USADA report, Armstrong was stripped of all of his competitive cycling results, including the seven Tour de France wins, and was banned from participating in competitive sports. Armstrong admitted to his extensive PED-use in a nationally televised interview with Oprah Winfrey in January 2013.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contracting process. In this instance, we worked hand-in-hand with the Civil Division, the United States Attorney’s Office and the U.S. Postal Service Office of the General Counsel. Today’s result will have a positive impact on the entire contracting process.”
The allegations against Armstrong were originally brought in a whistleblower complaint filed in June 2010 by Floyd Landis, a former teammate of Armstrong, who admitted that he, too, had participated in PED use as member of the USPS-sponsored team. Landis filed his complaint under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act permits the government to intervene in the whistleblower suit, as the government did here, in part. Landis will receive $1,100,000 as his share of the settlement.
The settlement announced today represented a coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the Offices of Inspector General and the General Counsel for the United States Postal Service, in their investigation and litigation of this matter.
The lawsuit is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al., No. 10-cv-976 (CRC) (D.D.C.). The claims against Armstrong contained in the complaint are allegations only and do not constitute a determination of liability.
Lance Armstrong Agrees to Pay $5 Million to Settle False Claims Allegations Arising from Violation of Anti-Doping Provisions of U.S. Postal Service Sponsorship AgreementRead the Press Release
Former professional cyclist Lance Armstrong agreed to pay the United States $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (“PEDs”) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (“USPS”), which sponsored Armstrong’s cycling team during six of the seven years Armstrong appeared to have won the Tour de France, the Department of Justice announced today.
“No one is above the law,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “A competitor who intentionally uses illegal PEDs not only deceives fellow competitors and fans, but also sponsors, who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable.”
From 1996 through 2004, the USPS sponsored a professional cycling team. The sponsorship agreements required the team to follow the rules of cycling’s governing bodies, including the rules prohibiting the use of certain performance enhancing substances and methods. Between 1999 and 2004, Lance Armstrong was the lead rider on the team, and he appeared to win cycling’s most prestigious event, the Tour de France, six consecutive times.
“This settlement resolves allegations that Lance Armstrong violated the terms of his team’s sponsorship by the U.S. Postal Service,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “We will continue to work with our federal partners to protect taxpayer dollars and to ensure that those who do business with the federal government fulfill their contractual obligations.”
The United States’ lawsuit against Armstrong alleged that Armstrong and his team regularly and systematically employed PEDs, in violation of the USPS sponsorship agreements. The lawsuit further alleged that Armstrong made numerous false statements, directly and through team managers and spokesmen, to USPS management and to the public denying his PED use to induce the USPS to renew its sponsorship of the team in late 2000, and to increase the sponsorship fees (and, by extension, Armstrong’s own salary) in light of Armstrong’s apparent Tour de France victories in 1999 and 2000. In addition, the lawsuit alleged that Armstrong took active measures to conceal his PED use during the USPS sponsorship, and even after the sponsorship ended, including lying under oath about his PED use in a 2005 arbitration proceeding involving his entitlement to a bonus for the 2004 Tour de France result; suing the Times of London and one of its sources – a former team masseuse – for libel; and threatening other people with similar lawsuits and other forms of retribution for disclosing their knowledge or suspicions of his doping activities.
“The Postal Service has strongly supported the Department of Justice’s intervention and pursuit of this case, as it always has been our position that Lance Armstrong misled the Postal Service,” said Thomas J. Marshall, U.S. Postal Service General Counsel and Executive Vice President. “This matter has now been resolved in a manner that imposes consequences for that wrongful action. With this case, as in all other instances, the Postal Service vigorously defends our brand and our position as a trusted government institution.”
In October 2012, the U.S. Anti-Doping Agency (“USADA”) issued a report and decision finding that Armstrong and his USPS teammates had engaged in a persistent and concerted doping program designed to enable Armstrong to win the Tour de France. In the wake of the USADA report, Armstrong was stripped of all of his competitive cycling results, including the seven Tour de France wins, and was banned from participating in competitive sports. Armstrong admitted to his extensive PED-use in a nationally televised interview with Oprah Winfrey in January 2013.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contracting process. In this instance, we worked hand-in-hand with the Civil Division, the United States Attorney’s Office and the U.S. Postal Service Office of the General Counsel. Today’s result will have a positive impact on the entire contracting process.”
The allegations against Armstrong were originally brought in a whistleblower complaint filed in June 2010 by Floyd Landis, a former teammate of Armstrong, who admitted that he, too, had participated in PED use as member of the USPS-sponsored team. Landis filed his complaint under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act permits the government to intervene in the whistleblower suit, as the government did here, in part. Landis will receive $1,100,000 as his share of the settlement.
The settlement announced today represented a coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the Offices of Inspector General and the General Counsel for the United States Postal Service, in their investigation and litigation of this matter.
The lawsuit is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al., No. 10-cv-976 (CRC) (D.D.C.). The claims against Armstrong contained in the complaint are allegations only and do not constitute a determination of liability.
Judge Sentences Convicted Felon to Jail Time for Illegally Possessing PistolRead the Press Release
PITTSBURGH, Pa. - A felon from Pittsburgh, Pennsylvania, has been sentenced in federal court to six months’ imprisonment, followed by three years’ supervised release, on his conviction of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Aaron Lyons, 23, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about August 27, 2015, Lyons, a convicted felon, was in possession of a .40 caliber Taurus pistol. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Department of Alcohol, Tobacco, Firearms and Explosives, and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Lyons. 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.
Jamestown Man Pleads Guilty to Food Stamp FraudRead 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 Joseph M. Gullotti, 57, of Jamestown, NY, pleaded guilty to food stamp benefits fraud before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that the defendant owned and operated Fresh Cut Meats & More at 631 Newland Avenue in Jamestown. Gullotti, as the owner of Fresh Cut, was authorized to accept and redeem food stamps. The U.S. Department of Agriculture prohibits a retailer from accepting food stamps for ineligible items such as beer, cigarettes, and hot prepared food, from giving cash for the benefits, and from using the benefits to pay for items purchased on credit.
Between January 2015 and March 21, 2017, the defendant and others accpeted food stamp benefits to pay for merchandise purchased on credit by a beneficiary including ineligible items. During that time, Gullotti and others engaged in approximately $173,515 of unlawful transactions.The plea is the result of an investigation by the U.S. Department of Agriculture, under the direction of Special Agent-in-Charge Bethanne M. Dinkins; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for August 23, 2018, at 11:00 a.m. before Judge Wolford.
Jackson Man Pleads Guilty under Project EJECT for Illegally Possessing a Firearm and NarcoticsRead the Press Release
Jackson, Miss. – Jermaine Lockett, 47, of Jackson, pled guilty today, before United States District Judge Tom S. Lee, to being a felon in possession of a firearm and possessing controlled substances with intent to distribute, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives.
On December 17, 2017, officers with the Jackson Police Department were on patrol in the area of East Frontage Road and Canton Mart Road. An officer observed a vehicle driving erratically in the area and attempted a traffic stop. The driver failed to stop and instead increased speed and fled. The vehicle hit another vehicle before coming to a stop. Lockett ran from the vehicle and was found to be in possession of methamphetamine and fentanyl. A firearm was also recovered from the vehicle. Lockett was arrested and charged.
On March 30, 2018, a criminal information was filed charging Lockett on two counts – being a felon in possession of a firearm and possessing with intent to distribute methamphetamine and fentanyl. He had been previously convicted of felony evasion and possession of stolen property on April 7, 2011, in Madison County Circuit Court; and being a felon in possession of a firearm on November 6, 2008, in Hinds County Circuit Court.
Lockett is scheduled to be sentenced by Judge Lee on July 18, 2018 at 9:30 a.m., and faces a maximum sentence of 20 years in federal prison and a $250,000 fine.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members. AUSA Erin Chalk is prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
Investigation of Puerto Rico to Connecticut Cocaine Trafficking Ring Results in Indictment against 7 MenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, announced that a federal grand jury in Hartford returned an indictment today charging seven individuals with trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
Charged in the indictment are:
ERICK SUAREZ, 29, of New Britain
LUIS COLLAZO-RIVERA, 37, of Caguas, Puerto Rico
JERRY RODRIGUEZ, a.k.a. “Bebo,” 28, of Hartford
LUIS GONZALEZ-OFARRIL, 23, of New Britain
LUIS TORRES, 35, of New Britain
GREGORY TORRES, 39, of Hartford
JOSE ROMERO-MAYSONET, 30, of Loiza, Puerto RicoAs alleged in court documents and statements made in court, since December 2017, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service has been investigating a drug trafficking organization that was sending Priority Mail parcels containing kilogram-quantities of cocaine through the U.S. Mail from Puerto Rico to Connecticut and elsewhere. The investigation revealed that Suarez coordinated shipments of cocaine from Collazo-Rivera, Romero-Maysonet and others in Puerto Rico to addresses in New Britain, Hartford, Newington, East Hartford and Bridgeport, as well as Springfield, Massachusetts. To date, investigators have identified more than 50 suspect parcels mailed by the drug trafficking organization from Puerto Rico. Investigators intercepted five of the suspect parcels, each of which contained approximately one kilogram of cocaine.
On April 10, 2018, investigators arrested Rodriguez, Gonzalez-Ofarril, Luis Torres and Gregory Torres in Connecticut, and Collazo-Rivera and Romero-Maysonet in Puerto Rico. On that date, a search of Rodriguez’s Hartford residence revealed approximately 400 grams of cocaine, approximately 160 grams of heroin, items used to process and package narcotics for street sale, and a loaded .45 caliber handgun. Also on that date, investigators searched Suarez’s residence, as well as two storage units used by Suarez and one storage unit used by Rodriguez in West Hartford. The search of Suarez’s storage units revealed approximately $40,000 in cash and a search of Rodriguez’s storage unit revealed additional items used to process and package narcotics.
Suarez was arrested on April 12.
The indictment charges each of the defendants with one count of conspiracy to distribute and to possess with intent to distribute cocaine. If convicted of this charge, based on their conduct and the quantity of cocaine involved in the conspiracy, Suarez, Collazo-Rivera and Rodriguez face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Gonzalez-Ofarril, Luis Torres, Gregory Torres and Romero-Maysonet face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
The indictment also charges Rodriguez with one count of possession with intent to distribute cocaine, an offense that carries a maximum term of imprisonment of 20 years, and one count of possession with intent to distribute 100 grams or more of heroin, an offense that carries a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Suarez, Collazo-Rivera and Rodriguez have been detained since their arrests. Gonzalez-Ofarril, Luis Torres, Gregory Torres and Romero-Maysonet are released on bonds pending trial.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, are assisting the investigation. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Inmate at FCI-Berlin Pleads Guilty to Attempted Drug PossessionRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that John McLaurin, 28, an inmate at FCI-Berlin pleaded guilty to one count of attempting to possess a prohibited object within a federal prison. McLaurin admitted that he was attempting to possess a synthetic cannabinoid, commonly referred to as K2.
According to documents filed with the court and statements made at the change of plea hearing, in September 2017, McLaurin placed a greeting card in the mail at the prison. Prison staff intercepted the card and found a note hidden in the card. The note provided instructions for obtaining K2 and smuggling it into the prison.
A sentencing hearing is scheduled for July 31, 2018.
The Bureau of Prisons investigated this case. This case is being prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Houston-Area Man and Woman Sentenced for Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas – A Houston-area man and woman have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Johntre Johnson, 21, of Houston, pleaded guilty on Aug. 22, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 96 months in federal prison today by U.S. District Judge Ron Clark. Nakendra Dominique McKnight, 32, of Humble, Texas, pleaded guilty on Aug. 22, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 90 months in federal prison today by Judge Clark.
According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Johnson and McKnight were charged along with six others in a five-count indictment returned on Mar. 22, 2017.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.
Houston Man Sentenced to 25 Months in Prison for Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that JOACOBO JOSE SANTOS, age 44, of Houston, Texas, was sentenced today for charges relating to narcotics trafficking.
SANTOS pled guilty on August 17, 2017, to conspiring to distribute 500 grams or more of cocaine hydrochloride.
Judge Nannette Jolivette Brown sentenced SANTOS to 25 months in the Federal Bureau of Prisons, as well as three years of supervised release following the term of imprisonment.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration. Assistant U.S. Attorneys Jeff Sandman and James Baehr are in charge of the prosecution.
Hells Angels Gang Member Sentenced to 15 Years in Prison for Distributing Methamphetamine in Exchange for Stolen FirearmsRead the Press Release
RIVERSIDE, California - A member of the Hells Angels outlaw motorcycle gang has been sentenced to 180 months in federal prison for distributing methamphetamine that he provided in exchange for stolen firearms.
Brian Shane Henson, 40, of Merced, was sentenced on Monday by United States District Judge Jesus G. Bernal.
In early 2017, while he was a prospective member of the Merced Chapter of the Hells Angels motorcycle club, Henson negotiated a deal to sell one pound of methamphetamine and four ounces of marijuana in exchange for 20 stolen firearms, according to court documents. Unbeknownst to Henson, he negotiated the deal with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 25, 2017, after negotiating the deal for about one week, Henson and co-defendant Hussein Fawas Eltareb, a full-patch member of the Hells Angels, drove approximately seven hours from Merced to Needles, California to meet the undercover agent. After arriving in Needles, according to prosecutors, Henson gave the undercover agent one pound of methamphetamine and one-quarter pound of marijuana, and Henson took possession of the 20 firearms, which he placed in the trunk of Eltareb’s car.
Immediately after the exchange, law enforcement officers arrested Henson and Eltareb. At this time, authorities recovered a loaded .38-caliber revolver, which was hidden next to the driver’s seat in Eltareb’s vehicle.
Henson pled guilty in October to distribution of methamphetamine and possessing firearms in furtherance of a drug trafficking crime and was sentenced to the mandatory minimum sentence of 180 months in federal custody.
After a bench trial in December, Judge Bernal found Eltareb, 27, of Merced, guilty of conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Judge Bernal is scheduled to sentence Eltareb on May 21, at which time he too will face a mandatory minimum sentence of 180 months in federal prison.
This case was investigated by the ATF’s Flagstaff, Arizona Field Office. The ATF received assistance from the Coconino County Narcotics Task Force, the Mohave County General Narcotics Task Force, and the California Highway Patrol.
The case is being prosecuted by Assistant United States Attorney Lindsay Bailey of the Organized Crime and Drug Enforcement Task Force and Assistant United States Attorney Roger Hsieh of the General Crimes section.
Helena Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
HELENA – Mario Antonio Alicea, a 28-year-old Helena resident, was sentenced today to 37 months in prison followed by 3 years supervised release after pleading guilty to felon in possession of firearms on November 16, 2017. U.S. District Judge Charles C. Lovell handed down the sentence.
On April 25, 2016, Alicea sold a Ruger, model Mark II, .22 caliber semi-automatic pistol for $180. It was loaded with eight rounds of ammunition but there was not a round in the chamber. At around the same time, Alicea also sold methamphetamine to a confidential informant. After he was arrested, Alicea admitted that he traded methamphetamine to acquire the gun.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Missouri River Drug Task Force and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Hammond Man Sentenced to 108 Months in PrisonRead the Press Release
HAMMOND- Marquis Medellin, 31 years old, of Hammond, Indiana, was sentenced before Hammond District Court Judge Philip Simon following his conviction for conspiracy to commit racketeering activity as a member of the Latin King street gang, announced U.S. U.S. Attorney Thomas L. Kirsch II.
Medellin was sentenced to 108 months imprisonment and 2 years of supervised release upon completion of his prison term.
The Court held Medellin responsible for his managerial role in the Indiana Latin Kings and for activity involving at least 5 kilograms of cocaine from 2006 through 2015.
This case was jointly investigated by the FBI GRIT Task Force and ATF/HIDTA Task Force, and was prosecuted by AUSAs David J. Nozick and Dean R. Lanter.
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Guatemalan Man Charged with Unlawfully Re-entering the United States Following Previous RemovalRead the Press Release
SYRACUSE, NEW YORK – Marcial De Leon-Aguilar, 31, a citizen of Guatemala was charged today with unlawfully re-entering the United States after previously having been removed, announced United States Attorney Grant C. Jaquith and Thomas Feeley, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Buffalo, New York.
The defendant made his initial appearance today in United States District Court in Syracuse, New York, and was ordered held without bail pending a hearing on April 24, 2018. A copy of the publicly filed criminal complaint is attached hereto. The defendant was arrested on April 18, 2018 by U.S. Immigration and Customs Enforcement (ICE) Officers in Rome, New York.
The charge filed against Marcial De Leon-Aguilar carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and if a conviction is obtained, could result in his removal or deportation from the United States.1 A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.”
This case is being investigated by United States Department of Homeland Security, Immigration and Customs Enforcement (ICE).
Attachment:
Criminal Complaint
1 Deportation and removal proceedings are separate civil matters litigated in Immigration Court and are not adjudicated as part of a criminal prosecution.
Georgia Man Sentenced Man Sentenced to More Than Eight Years for Methamphetamine Distribution ConspiracyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Roger Darryl Brooks, 49, of Dallas, Georgia, to 100 months in prison and five years of supervised release for trafficking methamphetamine, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina
Wayne Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Chris Francis of the Rutherford County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, Brooks and his codefendant, Tony Lee Stanfield, were involved in a drug conspiracy that trafficked large amounts of methamphetamine to Rutherford County and elsewhere. Court records show that Brooks was the main source of supply in Georgia, and Stanfield was responsible for delivering the drugs to Western North Carolina.
Law enforcement arrested Stanfield in January 2017, when he attempted to deliver nearly half a kilogram (464 grams) of 96% pure methamphetamine to Rutherford County. According to plea-related documents, Brooks was the supplier of methamphetamine that Stanfield was attempting to deliver to an individual in Rutherford County.
Brooks pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Stanfield was previously sentenced to 10 years in prison for his role in the drug conspiracy.
ATF and the Rutherford County Sheriff’s Office led the investigation. Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Gangster Disciples Member Indicted for 2007 Tennessee MurderRead the Press Release
A federal grand jury in Nashville, Tennessee returned a superseding indictment today charging a Gangster Disciples member with murder in aid of racketeering and use of a firearm resulting in death, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran for the Middle District of Tennessee and Special Agent in Charge Marcus S. Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.
Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee, is charged in a 45-count superseding indictment. Whitlock is already in custody in connection with this investigation, having been indicted on federal drug conspiracy charges in June 2017 and on federal racketeering charges in December 2017.
“According to today’s superseding indictment, Gangster Disciples member Rex Andrew Whitlock allegedly laid in wait for a member of a rival gang outside a gas station in Clarksville, followed him down the street and murdered him,” said Acting Assistant Attorney General Cronan. “The Department of Justice is committed to prosecuting gangs like the Gangster Disciples and to eradicating the scourge of violence that this gang and others like it have inflicted on too many communities.”
“This superseding indictment reflects the government’s ongoing efforts to hold the Gangster Disciples organization accountable for acts of violence in Middle Tennessee over the past decade,” said U.S. Attorney Cochran. “By this prosecution, we also seek to bring closure to the family of a victim of gang violence in Clarksville and justice to the community that suffered as a result of this crime. As this investigation continues, we will continue to bring charges like these whenever the evidence permits.”
“This superseding indictment highlights our commitment to vigorously investigate those criminal gangs who terrorize our neighborhoods,” said ATF Special Agent in Charge Watson. “All citizens have an absolute right to feel safe in their respective communities. ATF and its partners are committed to investigating and removing those individuals who illegally possess firearms and commit crimes.”
According to the superseding indictment, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, in the early morning hours of Sept. 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.
This extensive investigation was conducted by the ATF, the Tennessee Bureau of Investigation, the Montgomery County Sheriff’s Office, the Clarksville Police Department, the Rutherford County Sheriff’s Office, the Murfreesboro Police Department, the Gallatin Police Department, the Kentucky State Police and the 19th Judicial District Drug Task Force. Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ben Schrader are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
Gangster Disciples Member Indicted for 2007 Clarksville MurderRead the Press Release
A federal grand jury in Nashville, Tennessee returned a superseding indictment today, charging a Gangster Disciples member with murder in aid of racketeering and use of a firearm resulting in death, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Marcus S. Watson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Nashville Field Division.
Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee, is charged in a 45-count superseding indictment. Whitlock is already in custody in connection with this investigation, having been indicted on federal drug conspiracy charges in June 2017 and on federal racketeering charges in December 2017.
“This superseding indictment reflects the government’s ongoing efforts to hold the Gangster Disciples organization accountable for acts of violence in Middle Tennessee over the past decade,” said U.S. Attorney Cochran. “By this prosecution, we also seek to bring closure to the family of a victim of gang violence in Clarksville and justice to the community that suffered as a result of this crime. As this investigation continues, we will continue to bring charges like these whenever the evidence permits.”
“According to today’s superseding indictment, Gangster Disciples member Rex Andrew Whitlock allegedly laid in wait for a member of a rival gang outside a gas station in Clarksville, followed him down the street, and murdered him,” said Acting Assistant Attorney General Cronan. “The Department of Justice is committed to prosecuting gangs like the Gangster Disciples and to eradicating the scourge of violence that this gang and others like it have inflicted on too many communities.”
“This superseding indictment highlights our commitment to vigorously investigate those criminal gangs who terrorize our neighborhoods,” said ATF Special Agent in Charge, Marcus S. Watson. “All citizens have an absolute right to feel safe in their respective communities. ATF and its partners are committed to investigating and removing those individuals who illegally possess firearms and commit crimes.”
According to the superseding indictment, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, in the early morning hours of September 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.
If convicted, Whitlock potentially faces imposition of the death penalty.
This extensive investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tennessee Bureau of Investigation; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; and the 19th Judicial District Drug Task Force. Assistant United States Attorney Ben Schrader and U.S. Department of Justice Trial Attorney Ivana Nizich are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
Fort Thompson Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 19, 2018, by U.S. District Judge Roberto A. Lange.
Jordan Traversie, age 27, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on January 17, 2018. He pled guilty on February 8, 2018.
The conviction stems from Traversie failing to register as a sex offender as required by federal law between October 23, 2017, and November 1, 2017. Traversie had previously been convicted of a sex offense in federal court which requires him to register until 2039.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Fort Smith Man Sentenced to over 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Kamel J. Lincoln, age 38, of Fort Smith, was sentenced today to 188 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, in September of 2016, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in the Fort Smith area by Lincoln. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from Lincoln. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 11.728 grams of actual methamphetamine.
Lincoln was indicted by a federal grand jury in October 2017 and entered a guilty plea in January 2018.
This case was investigated by the Drug Enforcement Administration (DEA), Alcohol Tobacco and Firearms (ATF), Crawford County Sheriff’s Office, Fort Smith Police Department, Barling Police Department, Sebastian County Sheriff’s Office, Van Buren Police Department and the 12th/21st Judicial District Drug Task Force. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
HOUSTON - The former general manager of the procurement subsidiary of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Cesar David Rincon Godoy (Cesar Rincon), 50, a citizen of Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted Cesar Rincon’s plea and imposed a personal money judgment in the amount of $7,033,504.71 against the defendant, who agreed to the entry of an order of forfeiture. Sentencing is scheduled for July 9, 2018.
Cesar Rincon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. According to admissions made in connection with Cesar Rincon’s plea, between January 2012 and June 2013, he conspired with De Leon, Villalobos, Isturiz, Reiter and others, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, Cesar Rincon admitted he accepted bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, in exchange for taking official acts in his capacity as general manager of PDVSA’s procurement subsidiary in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. Cesar Rincon further admitted he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in the United States and Switzerland held in the names of individuals or entities other than Cesar Rincon. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the Foreign Corrupt Practices Act (FCPA) for their respective roles in the bribery scheme. They currently await sentencing.
As part of his plea agreement, Cesar Rincon also admitted to soliciting and receiving bribes from other owners of energy companies based in the United States in exchange for his assistance in helping those individuals and their companies win business with PDVSA and obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. In total, Cesar Rincon admitted to conspiring with others to launder at least $7,033,504.71 in proceeds from the various bribery schemes in which he participated.
The charges against De Leon, Villalobos, Isturiz and Reiter remain pending. Each of the four remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA. De Leon was extradited from Spain on March 9 and was ordered detained pending trial following a detention hearing held on April 10 before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas. Villalobos and Reiter remain in Spanish custody pending extradition and Isturiz remains at large.
Cesar Rincon becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 11 individuals in connection with the investigation.
ICE-HSI in Houston is conducting the ongoing investigation with assistance from ICE-HSI in Boston and Madrid as well as from IRS - Criminal Investigation. Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson are prosecuting the case along with Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and John-Alex Romano of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
The former general manager of the procurement subsidiary of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Cesar David Rincon Godoy (Cesar Rincon), 50, a citizen of Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted Cesar Rincon’s plea and imposed a personal money judgment in the amount of $7,033,504.71 against the defendant, who agreed to the entry of an order of forfeiture. Sentencing is scheduled for July 9.
Cesar Rincon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. According to admissions made in connection with Cesar Rincon’s plea, between January 2012 and June 2013, he conspired with De Leon, Villalobos, Isturiz, Reiter and others, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, Cesar Rincon admitted that he accepted bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, in exchange for taking official acts in his capacity as general manager of PDVSA’s procurement subsidiary in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. Cesar Rincon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in the United States and Switzerland held in the names of individuals or entities other than Cesar Rincon. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the Foreign Corrupt Practices Act (FCPA) for their respective roles in the bribery scheme. They currently await sentencing.
As part of his plea agreement, Cesar Rincon also admitted to soliciting and receiving bribes from other owners of energy companies based in the United States in exchange for his assistance in helping those individuals and their companies win business with PDVSA and obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. In total, Cesar Rincon admitted to conspiring with others to launder at least $7,033,504.71 in proceeds from the various bribery schemes in which he participated.
The charges against De Leon, Villalobos, Isturiz and Reiter remain pending. Each of the four remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA. De Leon was extradited from Spain on March 9, and was ordered detained pending trial following a detention hearing held on April 10, before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas. Villalobos and Reiter remain in Spanish custody pending extradition and Isturiz remains at large.
The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cesar Rincon becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Cesar Rincon, Roberto Rincon, and Shiera, the Justice Department has announced the guilty pleas of a total of 11individuals in connection with the investigation.
ICE-HSI in Houston is conducting the ongoing investigation with assistance from ICE-HSI in Boston and Madrid, as well as from IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and John-Alex Romano of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Production Manager at Portland Manufacturing Company Charged for Role in Product Certification Fraud Scheme Involving NASA and the Missile Defense AgencyRead the Press Release
A former production manager at an aluminum extrusion manufacturer was charged in an indictment filed April 18, for his alleged participation in a decade-long fraud scheme involving the fraudulent certification of mechanical properties for parts manufactured by his former employer.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Officer Renee Juhans of the National Aeronautics and Space Administration’s (NASA) Office of Inspector General (OIG), Special Agent in Charge Loren “Renn” Cannon of the FBI’s Portland Field Office, Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office, and Special Agent in Charge John Khin of DCIS’s Southeast Field Office made the announcement.
Dennis Merkel, 71, of Portland, Oregon, was charged in an indictment filed in the District of Oregon with two counts of major fraud against the government. Merkel is scheduled to be arraigned on April 30, before U.S. District Judge Marco A. Hernández of the District of Oregon.
The indictment alleges that between May 1996 and December 2006, Merkel, as a production manager at a Portland-area aluminum extrusion manufacturing facility, carried out a scheme to falsify tensile test results on hundreds of occasions, which were typed onto test certificates provided to the manufacturing facility’s customers. Aluminum extrusions are manufactured for a variety of applications, including aeronautic uses such as rockets and military hardware. There are industry-set specifications for measuring the mechanical properties of extrusions, which are determined by conducting a tensile test. Merkel allegedly sent and caused to be sent testing certifications containing falsified mechanical properties test results in connection with government contracts for NASA and the Missile Defense Agency. The indictment alleges that Merkel and others carried out the scheme to conceal failing tensile test results, increase profits and productivity, and obtain bonuses, which were calculated in part based on a production metric.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the NASA OIG, the FBI’s Portland Field Office and DCIS. The case is being prosecuted by Trial Attorneys Jennifer G. Ballantyne and Emily C. Scruggs of the Criminal Division’s Fraud Section.