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18 April 2018
Attorney General Jeff Sessions Appoints a U.S. Trustee and an Acting U.S. Trustee to Cover Two U.S. Trustee Program RegionsRead the Press Release
Attorney General Jeff Sessions has appointed Ilene J. Lashinsky as the U.S. Trustee for Kansas, New Mexico, and Oklahoma (Region 20) for an interim period, and Paul A. Randolph as the Acting U.S. Trustee for Kentucky and Tennessee (Region 8), the Executive Office for U.S. Trustees (EOUST) announced today. These appointments will be effective April 29, upon the retirement of Samuel K. Crocker, the current U.S. Trustee for these two Regions.
Ms. Lashinsky is the U.S. Trustee for the District of Arizona (Region 14), and Mr. Randolph is the Assistant U.S. Trustee in the U.S. Trustee Program’s St. Louis office. Under 28 U.S.C. § 585, the Attorney General may fill U.S. Trustee vacancies by appointing another individual to serve as an Acting U.S. Trustee or by designating an incumbent U. S. Trustee to serve in a second region. Both Ms. Lashinksy and Mr. Randolph bring a wealth of experience to these positions, having served in the U.S. Trustee Program for 16 and 28 years, respectively.
“On behalf of the U.S. Trustee Program, I congratulate and thank Mr. Crocker for his many years of invaluable service to the bankruptcy system, both as the U.S. Trustee and formerly as a private trustee,” said USTP Director Cliff White. “I also am grateful to our colleagues Ms. Lashinsky and Mr. Randolph for their commitment to the mission of the Program and their willingness to assume these additional roles.”
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. The USTP has 21 regions and 92 field office locations. Region 8 is headquartered in Memphis, Tennessee with additional offices in Chattanooga and Nashville, Tennessee, and Lexington and Louisville, Kentucky. Region 20 is headquartered in Wichita, Kansas, with additional offices in Oklahoma City and Tulsa, Oklahoma, and Albuquerque, New Mexico.
Alleged Drug Dealer Charged with Overdose Death in ManhattanRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest of DANIEL JONES and the unsealing of a Complaint charging him with distributing the heroin that resulted in the death of Robert Martin Hill in Manhattan. The Complaint also alleges that JONES conspired with others to distribute heroin between November 2017 and March 2018 in Manhattan, and that JONES distributed heroin on March 1 and March 6, 2018. JONES was arrested yesterday afternoon by the NYPD, and was presented today before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Daniel Jones peddled potentially lethal heroin in the East Village of Manhattan, and a dose he sold to Robert Martin Hill resulted in Hill’s death. Working with the NYPD we will continue to combat the epidemic of lethal opioids.”
According to the allegations in the Complaint[1]:
On November 18, 2017, Robert Martin Hill, a 54-year-old resident of Manhattan, overdosed in his apartment. The NYPD began investigating Mr. Hill’s death. An autopsy conducted following Mr. Hill’s death revealed that he died from a lethal dose of opioids. Four glassine bags were recovered from Mr. Hill’s pants pocket, which had the word “Gorilla” and a picture of a gorilla stamped in black ink. The residue in the glassine bags tested positive for heroin. The NYPD also obtained Mr. Hill’s cellphone.
As detailed in the Complaint, the NYPD was able to trace the last completed call that Mr. Hill made before he overdosed on November 18, 2017, to a cellphone used by JONES. The NYPD learned that JONES was the superintendent of the building where Mr. Hill resided, and that JONES continued to sell heroin near that building in the East Village. In March 2018, the NYPD made undercover buys of heroin from JONES on two occasions. During the second undercover buy, JONES stated that he sold heroin to Mr. Hill, that he knew Mr. Hill recently died, and that he sold Mr. Hill heroin that was packaged in glassines with a gorilla stamp.
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JONES, 53, of Manhattan, was charged with distribution and possession with intent to distribute heroin, and with conspiring to distribute heroin. JONES faces a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison based upon his distribution of the heroin that killed Mr. Hill.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael K. Krouse is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
17 April 2018
Zia Pueblo Man Sentenced to Prison for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Dale Dominic Galvan, 40, an enrolled member of the Zia Pueblo, who resides in Englewood, Colo., was sentenced today in federal court in Santa Fe, N.M., to 23 months in prison followed by one year of supervised release for his conviction on a child abuse charge.
Galvan was indicted on May 12, 2015, and was charged with abandonment or abuse of a child under the age of 18 on April 15, 2014, on the Santa Clara Pueblo in Rio Arriba County, N.M.
On Sept. 18, 2017, Galvan pled guilty to an information charging him with child abuse. In entering the guilty plea, Galvan admitted that on April 15, 2014, he exposed a two-year-old child to inclement weather by leaving the child in a vehicle for at least 20 to 45 minutes on a cold night with a temperature of about 29 degrees Fahrenheit. The child was dressed only in a t-shirt, without a diaper, socks, or pants and was found to be cold and shivering. Galvan further admitted that his actions caused and permitted a substantial and unjustifiable risk of serious harm to the safety and health of the child.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services, and the Santa Clara Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Wilmington Woman Indicted for Obstructing Homicide Investigation and Lying to the FBIRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that a federal grand jury sitting in Delaware returned a five-count indictment on April 12, 2018, charging Jaclyn McCain, 26, of Wilmington, with one count of obstruction of justice and four counts of lying to the FBI.
According to the Indictment, on June 6, 2017, in Newark, Delaware, a female victim was followed and ultimately taken from a location near her apartment. A short time later, shots were fired at the victim’s boyfriend on Rt. 896. The victim was then taken by car to Elkton, Maryland. The victim’s body was found later that day in Elkton, near where shots had been heard around noon. The car used in the murder was a silver Hyundai Sonata registered to McCain’s mother.
The Indictment describes McCain’s telephone communications just hours before the victim’s homicide in Elkton. The Indictment further alleges that McCain swapped cars with her boyfriend at about 8 a.m. that morning, leaving the Hyundai Sonata with him and driving away in his car. Video surveillance shows the Hyundai Sonata near the murder scene in Elkton.
The Indictment further details the connection between the events described above and the shooting of a six-year-old child later that same day in Wilmington. The shots that gravely injured the six-year-old were intended for the same individual (the victim’s boyfriend) targeted in the Rt. 896 shooting earlier that day.
Four weeks after the murder, the FBI interviewed McCain and told her that her mother’s Hyundai Sonata was used in a homicide. Agents also told her that the homicide was related to the shooting of the six-year old that occurred later that same day. The Indictment alleges that, in the interview, McCain on multiple occasions denied letting anyone use, drive, or borrow her mother’s car.
Internet searches from the defendant’s phone, as early as three nights after the homicide, reference a homicide that occurred in Elkton.
U.S. Attorney Weiss stated the following: “The investigation into the circumstances surrounding the homicide and shootings that occurred on June 6, 2017 is a matter of critical importance to this Office and our community. Witnesses to such events are expected to respond truthfully when questioned. The failure to do so will bring consequences. I want to thank the Federal Bureau of Investigation for their extraordinary and ongoing work on this case.”
If convicted of obstruction of justice as charged in the Indictment, the defendant faces a maximum sentence of twenty (20) years imprisonment.
This case is being investigated by the Wilmington Police Department, Delaware State Police, New Castle County Police Department, Elkton Police Department, Delaware Department of Justice, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. This case is being prosecuted by First Assistant U.S. Attorney Shannon T. Hanson and Assistant U.S. Attorney Alexander Mackler.
Criminal indictments are only allegations and are not evidence of guilt. The defendant is presumed to be innocent unless and until proven guilty.
Wilkes-Barre Man Sentenced to 6 Months’ Imprisonment for Stealing and Depositing Checks from Mail ReceptaclesRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that today United States District Court Judge A. Richard Caputo sentenced Michael Mejia, age 21, who resided in Wilkes-Barre, Pennsylvania, to a time-served sentence of approximately six months of imprisonment and two years of supervised release.
According to United States Attorney David J. Freed, from approximately May 11, 2017 through August 23, 2017, Mejia conspired with others to steal checks from mail receptacles throughout Luzerne County, deposit the checks into accounts under their control, and withdraw the funds in cash. As part of the sentence, Judge Caputo also ordered Mejia to pay $16,310.91 to the victims of his crimes.
The investigation was conducted by United States Postal Investigators. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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United States Attorney Office Seeks Sentence Enhancement Due to Prior ConvictionRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that a Grand Jury, sitting in Macon Georgia, previously returned an indictment against Michael O’Neal Walker who is also known by the names Kevin Omar Foster, Kevin Nunyi Lewis, Mosiah Omar Wright and Nunyi Jacob Wright. The indictment alleges that in Albany in November 2017, Mr. Walker was in possession of marijuana with the intent to distribute it and a firearm, a pink SCCY 9mm handgun, in furtherance of his drug trafficking activities.
Based on a sentence enhancement information filed in his case because of a prior conviction, the marijuana charge carries a maximum penalty of 10 years imprisonment and a maximum fine of $500,000. The gun charge carries a minimum mandatory term of imprisonment of five (5) years and a maximum possible term of imprisonment of life and a maximum fine of $250,000.
An indictment is only an allegation of criminal conduct. All defendants are presumed innocent unless and until proven guilty in a court of law beyond a reasonable doubt.
The case was investigated by agents of the Albany Dougherty Drug Unit and is being prosecuted by Assistant United States Attorney Leah McEwen.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Two New Jersey Men Arraigned in $2 Million Fraudulent Check Scheme Targeting Home Improvement StoresRead the Press Release
NEWARK, N.J. – Two men were arraigned today for their alleged roles in a phony check scheme that stole over $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.
Lessie Dickerson III, 33, of Union, New Jersey, and John Muyeka, 42, of Sayreville, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and two counts each of wire fraud. Muyeka is also charged with one count of producing false identification documents.Both defendants were arraigned this afternoon before U.S. District Judge Katharine S. Hayden in Newark federal Court and pleaded not guilty.
According to documents filed in this case and statements made in court:
Starting in December 2013 and continuing through February 2017, several individuals, including Dickerson and Muyeka, conspired to obtain merchandise or store credit from home-improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.
Muyeka allegedly produced false driver’s licenses from New Jersey and other states using photographs of his conspirators, along with fictitious names, addresses, and dates of birth. Muyeka provided the fraudulent identification documents to his conspirators.
Dickerson and others entered home-improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. Dickerson and others then typically “purchased” the items either by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that Dickerson and others had previously opened with a phony check.
During some of the transactions, Dickerson and others allegedly displayed the fake driver’s licenses that had been created by Muyeka, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.
In total, Dickerson, Muyeka, and others allegedly stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, South Carolina, and Texas.
Dickerson and Muyeka each face 20 years in prison and a $250,000 fine for the wire fraud charges. Muyeka faces 15 years imprisonment and a $250,000 fine for the producing false identification documents charge.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Defense counsel: Dickerson: Wanda M. Akin Esq., Newark
Muyeka: Ruth M. Liebesman Esq., Paramus, New JerseyTwo Men Sentenced for Series of Armed Robberies and Brandishing a Short-Barreled ShotgunRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two men were sentenced to federal prison for multiple armed robberies, including the armed robbery of Wells Fargo Bank in August 2016.
Kaleem Tikori Fredericks, 24, was sentenced yesterday to serve 130 months in prison after previously pleading guilty to armed bank robbery, brandishing a firearm during a crime of violence, Hobbs Act conspiracy, and Hobbs Act Robbery. Calel Calvis Alexis Crofford, 25, was sentenced in January 2018, to serve 10 years and 2 days in prison after previously pleading guilty to armed bank robbery, brandishing a firearm during a crime of violence, and Hobbs Act conspiracy.
According to court documents, between Aug. 11 and Aug. 18, 2016, Fredericks and Crofford conspired to commit a series of armed robberies. They pointed a loaded short-barreled shotgun, and a BB gun that appeared to be a real handgun, at customers and employees of a bank, three liquor stores, and a gas station. They also committed a smash-and-grab theft from a jewelry store. The series of robberies they committed are as follows:
- Aug. 11, 2016 – Fredericks and Crofford robbed the Captain Sparrow Liquor Store located at 1100 W. Benson Boulevard, using a short-barreled shotgun;
- Aug. 14, 2016 – Fredericks and Crofford robbed the Brown Jug Liquor Store located at 525 West Fireweed Lane, using a short-barreled shotgun;
- Aug. 15, 2016 – Fredericks and Crofford robbed the Tesoro Gas Station located at 545 Muldoon Road, using a loaded short-barreled shotgun;
- Aug. 15. 2016 – Fredericks and Crofford robbed the Brown Jug Liquor Store located at 119 Klevin Street, using a short-barreled shotgun;
- Aug. 18, 2016 – Fredericks and Crofford stole from the Jewelry World kiosk at the Dimond Center Mall;
- Aug. 18, 2016 – Fredericks and Crofford robbed Wells Fargo Bank, using a short-barreled shotgun and a BB gun.
Fredericks and Crofford stole a total of approximately $30,954, which they used to entertain themselves and then try to flee Alaska. Specifically, on Aug. 18, 2016, Fredericks and Crofford drove to Girdwood, Alaska, and disposed of the short-barreled shotgun, a backpack, and some of the clothes worn during the armed robberies. On that same day, they had purchased airline tickets and traveled to the Ted Stevens International Airport together in order to flee to St. Thomas, Virgin Islands.
The Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Anchorage Police Department (APD) conducted the investigation, with assistance from the Anchorage Airport Police, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas Walker.
Two Former Officers of the Memphis Police Department Indicted for Federal Narcotics and Violent Crimes ViolationsRead the Press Release
Memphis, TN – On April 17, 2018, a federal grand jury indicted two former officers of the Memphis Police Department for federal narcotics and violent crimes violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
As charged in the indictment, Kevin Coleman, 41, and Terrion Bryson, 26, conspired to distribute one kilogram or more of a mixture and substance containing heroin. Coleman was also indicted on 2 counts of Hobbs Act robbery.
U.S. Attorney D. Michael Dunavant said: "Official misconduct and corruption by law enforcement officers strikes at the very heart of the criminal justice system, and damages the trust and confidence of citizens in proper police authority. When police officers use their badges to become drug dealers and highway robbers, it is our duty to expose their corruption, hold them accountable, and protect society from their dishonesty. This indictment and significant potential sentences will hopefully deter other corrupt police behavior, restore the public’s faith in honest officers, and send a message that nobody is above the law."
Under federal law, it is illegal to conspire to distribute a scheduled controlled substance. This is a violation of Title 21, United States Code (USC), § 846. A violation of this section involving more than one kilogram of heroin is punishable by a term of not less than 10 years imprisonment, a fine of up to $10,000,000, and a term of supervised release of not less than five years.
It is also illegal under federal law to interfere with interstate commerce by taking property belonging to another without their consent under color of official right. This is a violation of Title 18 USC § 1951. A violation of this section is punishable by a term of not more than twenty years imprisonment, a fine of up to $250,000 and a term of supervised release of not more than three years.
Memphis Police Department Director Michael Rallings said: "We do not care what your profession is, and we do not care who you are; if you break the law and you are involved in illegal activity, we will arrest you."
"The conduct alleged in these indictments indicates a breach of the duty sworn to by all law enforcement officers, as well as crimes that erode trust with our community," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "The FBI will continue to work with our partners to identify, present for prosecution, and ultimately remove those bad actors who do a disservice to the dedicated and hard-working officers and besmirch the good name of all who risk their lives daily to protect and serve our communities."
Kevin Coleman and Terrion Bryson, both of Memphis, have been indicted for one count of conspiring to violate the federal drug laws between April 8 and April 12 of 2018. As set forth in the indictment, the defendants, acting upon information from a cooperating source, agreed to escort a vehicle carrying heroin to a storage facility in exchange for cash payment from an individual they believed to be a drug courier. The defendants obtained partial cash payment in advance of escorting the narcotics. During the course of escorting the narcotics, defendant Coleman used his status as a law enforcement officer and the incidents of his office including driving a marked police vehicle, wearing a police-issued uniform, displaying an official badge and identification, and carrying a firearm. During the course of escorting the narcotics, defendant Bryson entered the vehicle containing the narcotics as the vehicle entered the city of Memphis and accompanied the driver in the vehicle to the storage facility. Upon delivering the narcotics to the storage facility, defendant Bryson obtained the remainder of the cash payment.
Coleman was also indicted for two counts of Hobbs Act robbery occurring on March 7 and again on March 15 of 2018.
This case was investigated by the Memphis Police Department Organized Crime unit and the FBI’s Tarnished Badge Task Force. Assistant U.S. Attorney David Pritchard is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Two East Moline Men Sentenced to Prison Terms for Attempted Armed Robbery, Gun OffensesRead the Press Release
ROCK ISLAND, Ill. – Two East Moline, Ill., men, who were convicted in November for attempted armed robbery of a Rock Island home, were sentenced today. U.S. District Judge Sara Darrow ordered that Dalvent Jackson, 25, serve 30 years in federal prison. Deaunta Tyler, 30, was sentenced to 27 years, six months in prison. Co-defendant Ledell Tyler, 36, of Silvis, is scheduled to be sentenced on June 29, 2018.
A jury convicted each of the men on Nov. 15, 2017, of attempted robbery, discharging a firearm in furtherance of the attempted robbery, and being felons in possession of firearms. Evidence presented at trial established that on the evening of Jan. 7, 2017, the three men invaded a family home in Rock Island in search of drugs. During the attempted robbery, the defendants threatened to shoot various occupants of the home, including two pregnant women and several young children. Trial evidence also established that one of the men discharged a firearm during the robbery in an effort to further intimidate the victims. Approximately five hours after the attempted robbery, officers of the Rock Island Police Department arrested the men after they fled from a traffic stop and crashed their vehicle.
The Rock Island Police Department investigated the charges. Law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Illinois State Police also assisted in the investigation and testified at trial. The case was prosecuted by Assistant U.S. Attorneys Don Allegro and Kevin Knight.
Twelve Members and Associates of the Mac Baller Brims Set of the Bloods Gang Indicted for Drug TraffickingRead the Press Release
An indictment was unsealed today in federal court in Brooklyn, charging 12 members and associates of the Mac Baller Brims, a subgroup or “set” of the nationwide Bloods street gang (the “Mac Ballers”), with conspiracy to distribute and possess with intent to distribute crack cocaine and heroin. The alleged crimes were committed in and around the Louis H. Pink Houses in the East New York neighborhood of Brooklyn (the “Pink Houses”), as well as in the Claremont and University Heights neighborhoods of the Bronx and locations in the state of Maine. A second indictment, charging Hassen Ford with distributing crack cocaine in the Pink Houses, was also unsealed today. This morning, during the execution of search warrants at locations tied to the Mac Ballers in Brooklyn and the Bronx, members of law enforcement seized two firearms, quantities of heroin and crack cocaine, and drug paraphernalia. A starter pistol was also seized from Ford’s residence. The defendants’ arraignments are scheduled this afternoon before United States Magistrate Judge Cheryl L. Pollak.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictments.
“As alleged in court filings, the defendants are members of a Bloods set that has endangered communities by supplying illicit drugs and protecting their trafficking operation with firearms,” stated United States Attorney Donoghue. “Today’s arrests mark a milestone in dismantling the Mac Baller Brims and the threat they have posed to law abiding citizens in our District and beyond.”
“There is an odd glamorization of dealing drugs, firing guns and killing people in gang culture that defies comprehension. Someone allegedly bragging about almost going to jail because he was going to shoot someone shouldn’t be an accepted form of conversation or behavior,” said FBI Assistant Director-in-Charge Sweeney. “The FBI NY Metro Safe Streets Gang Task Force investigates gangs and arrests members because they pose a significant danger to the people in their communities. We are fully invested in the pursuit of these violent offenders who think it’s cool to threaten someone’s life.”
“Today’s arrests bring a dangerous set of blood gang members off our streets,” stated NYPD Police Commissioner O’Neill. “My thanks to the detectives, agents, and prosecutors whose work made today’s arrests and charges possible.”
As alleged in the indictments and other court filings, the defendant Kevin St. Hill was responsible for drug and gun-related crimes in the Pink Houses and is also a ranking member of the Mac Ballers. St. Hill received his drug supply, in part, from the defendant Mario Rabb, a Mac Baller member who sold crack cocaine and heroin on Webster Avenue in the Bronx. Rabb also supplied Mac Baller members Felix Collazo and Malcolm Hogue with quantities of drugs. The drug-trafficking operation was responsible for the distribution of significant amounts of crack cocaine and heroin in Brooklyn and the Bronx, as well as heroin in Maine.
Court-authorized wiretaps on phones used by several defendants confirmed that Lavon Barrett holds the highest-ranking position among non-incarcerated Mac Ballers, having been appointed as the “Don,” or leader, for “the whole t[o]wn” in late December 2017, and that St. Hill was appointed to oversee the Mac Ballers’ operations in Brooklyn. In other intercepted conversations, members of the gang related accounts of their using firearms and violence to protect their interests. For example, in a series of calls in November 2017, St. Hill threatened a group of individuals with a firearm (referred to as a “hammer”) in the Pink Houses: Barrett called codefendant Shatavia Walls and asked her to “bring the hammer downstairs.” Subsequently, Barrett recounted how close he came to actually shooting: “I was about to be in jail because I was about to fire.” In yet another intercepted call, Barrett and Collazo discussed Collazo’s need to get ammunition for his firearm “ASAP” because he had to “take care of something.” After offering Collazo bullets from Barrett’s firearm, Collazo promised he was going to “make a statement” and bragged about the resolve of the gang’s members to protect their turf: “Can’t f*** with the Macs” because Mac Ballers will “die for this sh**, ride for this sh**, and let it fly” – or shoot – “for this sh**.”
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the most serious charges, the defendants Barrett, Berthely, Collazo, Gethers, Rabb, Kevin St. Hill and Shawn St. Hill each face a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret Gandy and Andrey Spektor are in charge of the prosecution.
The Defendants:
LAVON BARRETT
Age: 31
Hempstead, New YorkMATTEW BERTHELY
Age: 32
Brooklyn, New YorkFELIX COLLAZO
Age: 37
Bronx, New YorkDWAYNE DAVIS
Age: 29
Brooklyn, New YorkSTEVEN GETHERS
Age: 31
Bronx, New YorkTERRY HEARD
Age: 50
Bronx, New YorkMALCOLM HOGUE
Age: 25
Bronx, New YorkMARIO RABB
Age: 45
Bronx, New YorkKEVIN ST. HILL
Age: 32
Brooklyn, New YorkSHAWN ST. HILL
Age: 32
Brooklyn, New YorkSHATAVIA WALLS
Age: 30
Brooklyn, New YorkCHARLES WARD
Age: 41
Bronx, New YorkE.D.N.Y. Docket Nos. 18-CR-185 (FB)
HASSEN FORD
Age: 43
Brooklyn, New YorkE.D.N.Y. Docket Nos. 18-CR-183 (AMD)
Tucson Man Sentenced to 30 Months’ Imprisonment for Aggravated Assault on the Pascua Yaqui Indian ReservationRead the Press Release
TUCSON, Ariz. – On Monday, April 16, 2018, Jaime Joshua Benitez, Jr., 28, of Tucson, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to 30 months’ imprisonment. Benitez had previously pleaded guilty to assault with the use of a dangerous weapon.
Benitez assaulted an acquaintance, a member of the Pascua Yaqui Indian Tribe, on the Pascua Yaqui Indian Reservation by striking him on the head with a simulated gun during a robbery of the victim.
The investigation in this case was conducted by the Pascua Yaqui Police Department. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, and Kendrick A. Wilson, Special Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-17-00754-TUC-RM (LAB)
RELEASE NUMBER: 2018-037_Benitez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Sentenced for Roles in Heroin ConspiracyRead the Press Release
Harrisonburg, VIRGINIA – The first three defendants in a 13-member conspiracy that trafficked more than 1,000 grams of heroin from Baltimore to Front Royal were sentenced Monday in U.S. District Court in Harrisonburg, United States Attorney Thomas T. Cullen announced.
Adrian Darnell Edwards, 22, of Front Royal, Va., was sentenced Monday to 190 months in prison. Alisha Marie Stocking, 21, of Toms Brook, Va., was sentenced to 48 months in prison. Stocking and Edwards both previously pleaded guilty to one count of conspiracy to possess with the intent to distribute 1,000 grams or more of heroin.
Randall Freeman, 40, of Manassas, Va., was sentenced Monday to 48 months in prison. Freeman previously pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin. On Tuesday, five additional members of the conspiracy: Tiara Bailey, Da’Shawn Edwards, Keon Hackley, Antwan Lucas, and Antwan Cottman are scheduled to be sentenced in U.S. District Court.
“The United States Attorney’s Office will vigorously prosecute those who traffic heroin into our communities and profit from the addiction of others,” United States Attorney Cullen said today. “This office will continue to work with our federal, state and local law enforcement partners to combat the flow of these deadly opioids from Baltimore and elsewhere and build cases that hold those accountable for their trafficking crimes.”
According to information and evidence presented at previous hearings by Assistant United States Attorney Donald R. Wolthuis, the conspiracy began as early as 2013 with the goal of trafficking heroin from Baltimore to the Front Royal area. On average, members of the conspiracy distributed one kilogram of heroin per week during the life of the conspiracy, which operated between 2013 and April 2016.
To insulate the identity of the sellers from the identifiy of the buyers, heroin customers in Virginia contacted a phone number in Maryland, either by voice call or text, which was controlled by conspiracy members and was known only as the “Chris phone.” “Chris” was not a real person, but rather was a fake name associated with the phone number customers contacted to place heroin orders. At the time an order was placed, customers were provided a street address in Baltimore where their order was to be picked up. When a customer arrived at the pre-determined address, the customer’s car was approached by other members of the conspiracy, a drug transaction took place, and the Virginia customers drove back to Front Royal. No socializing or small talk took place between the customer in the car and the seller on the street. The Virginia customers made these trips every day, sometimes multiple times per day. Once they returned to Front Royal, they both used the heroin and sold it to others.
The three defendants sentenced today were Virginia customers who trafficked heroin after it had arrived from Baltimore. According to information presented to the court, Edwards is a “chronic” heroin trafficker who had distributed the drug since 2013. He is also responsible for introducing his then girlfriend, co-defendant Alisha Stocking, to heroin and heroin distribution, when she was 16-years-old. The two were responsible for distributing more than 1,000 grams of the drug during the life of the conspiracy.
Freeman was a frequent traveler to Baltimore to purchase heroin. He sometimes traveled alone or with other members of the conspiracy. After purchasing the heroin, Freeman returned to the Front Royal area to use and distribute it.
The investigation of the case was conducted by the Drug Enforcement Administration’s Winchester Office, the Front Royal Office of the Virginia State Police Northwest Regional Drug and Gang Task Force, the Baltimore City Police Department, the Baltimore County Police Department, the Frederick, Maryland Sheriff’s Office, the Loudoun County, Virginia, Sheriff’s Office and the Howard County, Maryland, Sheriff’s Office. Assistant United States Attorney Donald R. Wolthuis is prosecuting the case for the United States.
Texas Man Sentenced to Ten Years for Federal Drug Trafficking and Firearms Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Michael Dwain Samples, 26, of Monahans, Tex., was sentenced this morning in federal court in Las Cruces, N.M., to 120 months in prison for his conviction on drug trafficking and firearms charges. Samples will be on supervised release for five years after completing his prison sentence.
The sentence was announced by U.S. Attorney John C. Anderson, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso and Chief Pete N. Kassetas of the New Mexico State Police.
“The everyday work of state and local law enforcement officials is a critical component in protecting our communities from the harmful impact of drugs. In this case, exceptional work by state police turned a routine traffic stop into a major federal drug trafficking prosecution,” said U.S. Attorney John C. Anderson. “The outstanding partnerships that we have between federal and state law enforcement officials in New Mexico is a force multiplier in our efforts to make our communities safer for our families and friends.”
“Homeland Security Investigations is committed to combating narcotics trafficking and other public safety threats impacting the citizens of New Mexico, said Acting Special Agent in Charge Jack P. Staton of HSI in El Paso. “Working with the New Mexico State Police, this investigation took dangerous drugs and firearms off the streets of eastern New Mexico.”
New Mexico State Police Chief Pete Kassetas said, “It is a priority of the New Mexico State Police to keep drugs and criminals off the streets of New Mexico. This case is one example of many in which law enforcement has done its job to prevent dangerous drugs and firearms from entering our communities. We will remain resolute in our commitment to finding these criminal elements and enforcing laws to keep our communities safe.”
Samples’ co-defendant Nicolas Robert Muniz, 26, also of Monahans, Tex., was charged by criminal complaint on June 5, 2017, after law enforcement officers seized approximately 504 grams of methamphetamine, 50 grams of marijuana, and firearms and ammunition from Muniz’s vehicle following a routine traffic stop. During the traffic stop, the officers deployed a drug detection canine on Muniz’s vehicle after observing that Muniz was acting in a suspicious and nervous manner. The officers searched the vehicle and found the drugs after the canine alerted the officers to the presence of controlled substances in the vehicle.
Samples and Muniz were subsequently charged in a six-count indictment on Sept. 13, 2017. Samples and Muniz were charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. Muniz was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. Samples was charged individually with being a felon in possession of a firearm and ammunition and possession of a firearm in relation to a drug trafficking crime. According to the indictment, the defendants committed the offenses on May 16, 2017, in Lea County, N.M. Samples and Muniz were prohibited from possessing firearms or ammunition because of their statuses as convicted felons.
On Oct. 31, 2017, Samples pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Samples admitted that on May 16, 2017, he traveled from Monahans, Texas, to Carlsbad, to purchase approximately 469 grams of methamphetamine with the intention of distributing the methamphetamine to others in exchange for money. Samples further admitted that on May 16, 2017, he was in possession of a firearm and ammunition despite his status as a convicted felon.
On Jan. 16, 2018, Muniz pled guilty to a four-count felony information charging him with conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, being a felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Muniz admitted that on May 16, 2017, he agreed to drive Samples from Monahans, Texas to Carlsbad, N.M., to purchase approximately 469 grams of methamphetamine. Muniz further admitted that there was a firearm loaded with several rounds of ammunition under Muniz’s seat in the vehicle Muniz was driving. Muniz admitted that he possessed the firearm and ammunition despite his status as a convicted felon on May 16, 2017, for protection and in furtherance of his drug trafficking activities. Muniz remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorneys Brock E. Taylor and Joni L. Autrey of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Tarboro Man Sentenced for Hobbs Act Robbery and Possession of a Firearm by a FelonRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced DARRICUS DIQUEL SUGGS, 23, of Tarboro, North Carolina to 97 months of imprisonment followed by 3 years of supervised release.
SUGGS was named in a two-count Indictment on November 2, 2017. On December 7, 2017, SUGGS pled guilty to one-count of Hobbs Act Robbery and Aiding and Abetting and one-count of Felon in Possession of a Firearm.
On November 21, 2016, SUGGS and James Leroy Everette, who previously pled guilty on January 11, 2018, entered the Speedway gas station located in Rocky Mount, North Carolina, wearing gloves and concealing their faces with shirts or a ski mask. Everette immediately leapt over the counter and instructed the victim clerk to open the cash register, at which time he grabbed the cash out of the register. The victim clerk advised investigators that one of the robbers threatened to “blow her head off” if she did not comply. The robbers then fled the scene with $382 in U.S. currency, which they ultimately divided among themselves.
Immediately after the aforementioned robbery, SUGGS and his accomplice drove to Wendell, North Carolina, where they broke into Perry’s Gun Shop. Upon arrival at the business, Sharpe used a cinder block to break through the glass door of the business. SUGGS and Everette then entered the business. SUGGS and Everette shattered a display case and stole 9 Smith and Wesson handguns before fleeing the scene. Within hours of the burglary, Everette was captured by law enforcement, and identified SUGGS as his accomplice in the Speedway robbery and burglary of Perry’s Gun Shop.
On November 22, 2016, investigators conducted a search of SUGGS’ residence and recovered the firearms stolen from Perry’s Gun Shop. The firearms, along with assorted 9mm and .380 caliber ammunition, were found in SUGGS’ bedroom. SUGGS was taken into custody and subsequently provided a statement to authorities during which he acknowledged his involvement in the robbery of Speedway. However, SUGGS denied entering Perry’s Gun Shop and maintained that he only “peeked” inside the store.
In conclusion, SUGGS is responsible for robbing a gas station and stealing 9 firearms from a gun shop. During the robbery of the Speedway gas station, the defendant and his accomplice stole $382 and threatened the victim clerk with death if she did not comply.
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.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rocky Mount Police Department and the Wendell Police Department conducted the criminal investigation of this case. Assistant United States Attorney James J. Kurosad handled the prosecution of this case for the government.
Tampa Resident Sentenced to More Than 20 Years in Federal Prison for Tricare Health Care Fraud SchemeRead the Press Release
A Tampa resident, who was previously convicted at trial, was sentenced to more than 20 years in federal prison for his involvement in a Tricare health care fraud scheme, receiving kickbacks and money laundering.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Southeast Field Office, Peter H. Kuehl, Acting Special Agent in Charge, U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, made the announcement.
Monty Ray Grow, 46, of Tampa, was sentenced by United States District Judge Federico A. Moreno to 262 months in prison and ordered to pay approximately $18 million in restitution. On February 5, 2018, a federal jury in Miami convicted Grow, of 18 criminal charges, including: conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; conspiracy to pay and receive health care kickbacks, in violation of Title 18, United States Code, 371; unlawful receipt of health care kickbacks, in violation of Title 42, United States Code, Section 1320a-7(b)(1)(A); and money laundering, in violation of Title 18, United States Code, Section 1957.
Evidence presented at trial established that during an eight-month period in 2014-15, Grow participated in a scheme to defraud the Tricare program out of tens of millions of dollars. Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families. That insurance benefit includes paying for any medications that a Tricare beneficiary needs. Defendant Grow enticed Tricare beneficiaries to order very expensive drugs that they did not need. Tricare, not the patients, paid the bill for these expensive drugs and the pharmacy split fifty percent of the profits with Grow. Evidence at trial established that Grow targeted Tricare beneficiaries and induced them to order expensive drugs they did not need by paying them either directly for their own prescriptions or indirectly for those of their family and friends. As a result of the fraudulent scheme, Grow received nearly $20 million in kickbacks from a Broward County pharmacy.
In furtherance of the conspiracy, Grow fraudulently inflated the price the pharmacy would bill to Tricare by manipulating the formulations and selling ingredients to the pharmacy that were artificially engineered in order to maximize profits. Grow also paid telemedicine companies whose doctors ratified prescriptions the defendant pre-selected, while knowing that doctors never examined a single patient. Finally, Grow laundered the criminal proceeds of his scheme through the purchase of luxury items.
To date, at least eight additional co-conspirators have pleaded guilty to federal criminal charges arising out of Grow’s fraud scheme, including Ginger Lay, 40, of Atlanta, Georgia; Paul Robinson, 40, of Ormond Beach, Florida; Deanna Dutting, 40, of Ormond Beach, Florida, Raymond Bear, 46, of Flemming Island, Florida; Robin Halliburton, 45 of Ponte Vedra, Florida; Michael Shane Matthews, 47, of Newberry, Florida, Michael Bowman, 43, of Jacksonville, Florida, and Sven Bjerke, 39, of Jacksonville, Florida. These individuals have collectively remitted property back to the United States valued in the approximate amount of $4 million. Mr. Greenberg commended the investigative efforts of DCIS, FDA-OCI and U.S. Army CID. This case was prosecuted by Assistant United States Attorneys Kevin J. Larsen and Jon Juenger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Resident Sentenced to Prison for Attacking CBP and TSA Officers at Miami International AirportRead the Press Release
A South Florida resident was sentenced today to more than 2 years in federal prison for assaulting Customs and Border Protection and Transportation Security Administration officers at Miami International Airport in the fall of 2017.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); Diane J. Sabatino, Director, Field Operations, Customs and Border Protection (CBP); and Daniel Ronan, Federal Security Director Miami International Airport, Transportation Security Administration (TSA), made the announcement.
Nivaldo Emilio Lopez, 33, of Miami, was sentenced by United States District Court Judge Cecilia M. Altonaga to 27 months in prison, to be followed by 3 years of supervised release and was ordered to pay $9,172 in restitution. Lopez previously pled guilty to two counts of assaulting, resisting, or impeding certain federal employees, in violation of Title 18, United States Code, Section 111.
According to the court record, on October 25, 2017, Lopez drove to Miami International Airport, left his vehicle curbside at Terminal D, and entered the airport. Once inside, Lopez began walking back and forth between checkpoints, waving his arms in the air and yelling loudly. Lopez also made statements to the effect that he was going to blow up the airport.
A concerned passenger notified law enforcement of Lopez’s conduct. A CBP officer responded and attempted to deescalate the situation. Lopez, however, became more aggressive and began yelling at the CBP officer. The officer put his baton at his side, at which point Lopez attacked the officer. The defendant struck the CBP officer in the head and a struggle ensued. During the struggle, Lopez bit the CBP officer’s hand, causing injuries that required medical attention at a local hospital.
During the course of the attack, an on-duty TSA officer working in Terminal D stepped in to help the CBP officer subdue the defendant. Lopez, however, continued to be aggressive, and struck the TSA officer in the face with a trashcan lid. Miami-Dade Police Department officers responded to the scene and used a taser to finally subdue the defendant.
Mr. Greenberg commended the investigative efforts of ICE-HSI and thanked CBP, TSA and the Miami-Dade Police Department for their assistance in this matter. This case was prosecuted by Assistant United States Attorney Trinity Jordan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
School Owner Pleads Guilty to $2 Million Bribery Scheme Involving VA Program for Disabled Military VeteransRead the Press Release
WASHINGTON – The owner of Atius Technology Institute (“Atius”), a privately owned, non-accredited school specializing in information technology courses, pleaded guilty today to bribing a public official at the U.S. Department of Veterans Affairs (VA) in exchange for the public official’s facilitation of over $2 million in payments that were supposed to be dedicated to providing vocational training for military veterans with service-connected disabilities. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Jessie K. Liu for the District of Columbia made the announcement.
Albert S. Poawui, 41, of Laurel, Maryland, pleaded guilty to an Information alleging one count of bribing a public official. The plea was entered before U.S. District Judge John D. Bates of the District of Columbia.
According to Poawui’s plea agreement, the Vocational Rehabilitation and Employment (VR&E) program is a VA program that provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
According to admissions made in connection with Poawui’s plea, in or about August 2015, Poawui and a VR&E program counselor agreed that Poawui would pay the counselor a seven percent cash kickback of all payments made by the VA to Atius. In exchange, the counselor steered VR&E program veterans to Atius and approved Atius’s invoices for payment.
Poawui admitted that the counselor and a second VR&E counselor approved payments to Atius without regard for the accuracy of necessary documentation in order to maximize the scheme’s profits. Between August 2015 and December 2017, Poawui and the scheme’s other participants caused the VA to pay Atius approximately $2,217,259.44. Poawui paid the first VR&E counselor over $155,000 as part of the illicit bribery scheme. These bribery payments were hand-delivered by Poawui or an Atius employee to the VR&E counselor or the counselor’s assistant, a veteran who was enrolled in the VR&E program.
Poawui also admitted that, with the knowing assistance of a second Atius employee, he made numerous false representations to the VA to enhance the scheme’s profits. For example, Poawui and the second employee certified to the VA that veterans attending Atius were enrolled in up to 32 hours of class per week, when in fact both knew that Atius offered a maximum of six weekly class hours. After the VA initiated an administrative audit of Atius, Poawui, the VR&E counselor and the Atius employee took steps to conceal the truth about earlier misrepresentations they had made to the VA.
Poawui’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General. Assistant U.S. Attorney Adrienne Dedjinou of the U.S. Attorney’s for the Office of the District of Columbia also investigated the matter. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Sonali D. Patel of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Reno Man Sentenced to A Total of over 16 Years in Prison for Possession with Intent to Distribute Methamphetamine After High-Speed Police ChaseRead the Press Release
RENO, Nev. – A wanted fugitive who shot at law enforcement during a high-speed chase through the northeast Reno area was sentenced today to 175 months in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Eugene Enrique Corona, 35, of Reno, pleaded guilty in November 2017, to possession with intent to distribute methamphetamine. Corona was a wanted fugitive for violation of his supervised release. In addition, he received a 24 month prison sentence to run consecutive to today’s sentence term for revocation on his supervised release violation.
According to the plea agreement, on January 18, 2017, a Washoe County Sheriff’s Office K9 unit attempted to stop Corona’s vehicle. However, he sped away, drove through a stop sign and a red traffic light, and almost caused two separate accidents — one at Wedekind Road and Sullivan Lane and the second at Wedekind Road and El Rancho Drive. During the pursuit, Corona fired a shot at law enforcement following him, then threw the firearm out of the driver’s side window. Corona lost control of his truck and crashed into the front yard of a residence on the corner of Montello Street and Wilder Street. He attempted to flee the scene on foot, but law enforcement was able to apprehend him. They recovered a Taurus 5 shot revolver near Wedekind Road and El Rancho Drive. Inside Corona’s truck, deputies found two clear bags with approximately 60 grams of methamphetamine and a digital scale.
The case was investigated by the Washoe County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, and the DEA. Assistant U.S. Attorney Megan Rachow prosecuted the case.
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Pharmacist Sentenced to 27 Months in Prison for Illegally Distributing Oxycodone from Medford, New Jersey ‘Pill Mills’Read the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, pharmacist was sentenced today to 27 months in prison for his role in a long-running conspiracy to illegally distribute and dispense large quantities of oxycodone and other controlled substances from two pharmacies located in Medford, New Jersey, U.S. Attorney Craig Carpenito announced.
David Goldfield, 60, of Medford Lakes, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count 1 of an indictment, charging him with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, and Counts 10 through 15, which charge him with multiple substantive counts of illegal distribution and dispensing of oxycodone. Judge Simandle imposed the sentence in Camden federal court.
According to documents filed in this case and statements made in court:
Goldfield was employed by Michael Ludwikowski, 46, of Medford, at Olde Medford Pharmacy and Medford Family Pharmacy. Goldfield admitted that from January 2010 through August 2013, he conspired with Ludwikowski to distribute and dispense oxycodone for individuals they knew were obtaining the pain killers for resale or for non-medical use.
Goldfield admitted, based upon his training and experience, as well as the “red flags” he observed, it was obvious that many of the oxycodone prescriptions that Goldfield and Ludwikowski filled were fraudulent. These red flags included prescriptions for oxycodone that appeared to have been “washed” or “bleached.” According to the indictment, this was achieved through a chemical process that removed the original writing for a non-narcotic substance. The customers then rewrote the prescriptions for their drug of choice, including oxycodone.
Other red flags included customers who were believed to be drug addicts, or believed to be selling or abusing the oxycodone; customers seeking oxycodone with residential addresses far from the Medford area, including for example, Camden, New Jersey; the same customer presenting oxycodone prescriptions in numerous different names, including the names of both men and women; and customers presenting oxycodone prescriptions for a 30-day supply multiple times a week.
On occasions that Goldfield had suspicions about the legitimacy of particular prescriptions, Ludwikowski allegedly told Goldfield to fill some of those prescriptions anyway. In addition, Goldfield admitted that he and Ludwikowski stored bottles of oxycodone in a pull-out drawer to which pharmacy employees working at the front counter would have easy access, rather than in a locked safe.
When Ludwikowski became concerned with the high number of oxycodone prescriptions that were being filled, Ludwikowski and Goldfield – in an attempt to evade law enforcement – turned away customers who were bringing in fraudulent prescriptions by telling them that the Drug Enforcement Administration (DEA) had reduced their supply of oxycodone.
In addition to the prison term, Judge Simandle sentenced Goldfield to three years of supervised release and fined him $4,900.Ludwikowski was convicted at trial of six counts in an indictment charging him with illegally distributing and dispensing oxycodone, a Schedule II controlled substance, and maintaining a drug-involved premises. He was sentenced April 12, 2018, to 15 years in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to today’s sentencing.
The government is represented Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.Defense counsel: Gilbert J. Scutti Esq., Voorhees, New Jersey
Owners of Maryland Auto Parts Company Indicted for Tax FraudRead the Press Release
A federal grand jury sitting in Greenbelt, Maryland, returned an indictment, which was unseal today, charging a married couple with conspiracy to defraud the United States and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
According to the indictment, Robert M. Underwood and Deborah J. Underwood, operated a used automobile parts and scrap metal business in Clinton, Maryland from 2009 through 2012 under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business allegedly purchased used and salvage cars, stripped them for parts to resell, and sold the remains to a Baltimore-based scrap yard.
The indictment charges that the Underwoods conspired to conceal the receipt of cash from the sale of scrap metal from their accountants and from IRS auditors. The indictment further alleges that the Underwoods filed false tax returns that did not include all the gross receipts of their business.
If convicted, the Underwoods face a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count. They also face a period of supervised release, restitution, and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David I. Salem and Tax Division Trial Attorney Michael Vasiliadis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owners of Maryland Auto Parts Company Indicted for Tax FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Robert M. Underwood, age 71, and his wife Deborah J. Underwood, age 62, both of Clinton, Maryland on charges of conspiracy to defraud the United States and four counts of filing false tax returns.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, the Underwoods operated a used automobile parts and scrap metal business in Clinton, Maryland from 2009 through 2012 under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business allegedly purchased used and salvage cars, stripped them for parts to resell, and sold the remains to a Baltimore-based scrap yard.
The indictment charges that the Underwoods conspired to conceal the receipt of cash from the sale of scrap metal from their accountants and from IRS auditors. The indictment further alleges that the Underwoods filed false tax returns that did not include all the gross receipts of their business.
If convicted, the Underwoods face a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count. They also face a period of supervised release, restitution, and monetary penalties.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur and Principal Deputy Assistant Attorney General Zuckerman thanked Special Agents of IRS Criminal Investigation, who investigated the case. Mr. Hur thanked Assistant U.S. Attorney David I. Salem and Tax Division Trial Attorney Michael Vasiliadis, who are prosecuting the case.
Occupational Therapist Owner of TSM Sentenced for Making False and Fraudulent Statements Related to Health Care BenefitsRead the Press Release
GREENEVILLE, Tenn. – On April 16, 2018, Jose Penaranda Tan, 58, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 12 months and one day in federal prison. In addition to his prison sentence, Tan must also pay restitution to Medicare, Medicaid (known as TennCare in the state of Tennessee), Cigna, Optum, and Blue Cross Blue Shield (BCBS) of Tennessee in an amount to be determined by Judge Greer.
Tan pleaded guilty in June 2017 to one count of a 35-count indictment charging him with health care fraud, false statements related to health care matters, and aggravated identity theft.
Tan was the owner and operator of Therapeutic Services of Morristown (TSM), a clinic providing occupational, physical, and speech therapy services, specializing in pediatric care. He worked at TSM as a therapist and as a supervisor of various employees, including the therapists and administrative assistants who were responsible for submitting bills to Medicare, TennCare, and private health insurance companies. A detailed account of his offenses is included in the indictment and plea agreement on file with the U.S. District Court.
Tan admitted that over the course of more than two years, he submitted, or caused to be submitted, almost 10,000 false and fraudulent claims to government and private insurers, totaling approximately $1 million. He instructed employees to bill insurers as if TSM therapists were providing individualized therapy sessions to patients, when in fact Tan directed therapists to treat patients in group settings. By falsely claiming that TSM therapists were providing individual therapy, rather than group therapy, Tan was able to secure higher rates of reimbursement from Medicare, TennCare, Cigna, Optum, and BCBS. Additionally, Tan knowingly and fraudulently used the National Provider Identifiers of former therapist employees to bill for therapy services that were provided by non-credentialed therapy assistants, rather than by qualified and credentialed therapists.
This fraud resulted in Medicare, TennCare, Cigna, Optum, and BCBS paying approximately $400,000 to TSM, to which the clinic was not entitled.
“The U.S. Attorney’s Office will continue to pursue charges against health care providers in the Eastern District of Tennessee who fraudulently bill and obtain payments from our federal healthcare benefit programs, such as Medicare and Medicaid, for services not provided. We will use all resources available to ensure the government is reimbursed for funds owed by these individuals and entities who receive payments to which they were not entitled,” said U.S. Attorney J. Douglas Overbey.
This therapist stole the identities of licensed providers and used them to obtain payments from federal health programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “He cheated his patients out of the care they deserved and is now paying the price for his actions.”
This case was investigated by the Department of Health and Human Services – Office of the Inspector General and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys David Gunn and T.J. Harker represented the United States.
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North Versailles Felon Will Spend 44 Months in Prison for Illegally Possessing Pistols and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 44 months’ imprisonment followed by three years’ supervised release and was ordered to pay a special assessment of $100 on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Antoine Walls, age 24.
According to information presented to the court, on August 25, 2016, Walls possessed a Glock 23 .40 caliber pistol, a Glock 27 .40 caliber pistol, and numerous rounds of .40 caliber ammunition. It is unlawful for Walls, who has previously been convicted of a felony offense, to possess a firearm and ammunition.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
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.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the Leet Township Police Department conducted the investigation leading to the successful prosecution of Antoine Walls.
North Suburban Bookkeeper Pleads Guilty to Causing More Than $24 Million in Tax Losses from Fraudulent Tax SchemesRead the Press Release
CHICAGO — The bookkeeper for two Chicago-area staffing companies has admitted in federal court that he conspired to defraud the IRS for at least a decade by falsifying corporate tax returns and W-2 forms to reduce the taxes assessed against the companies and their owners.
BARRY POTICHA, 73, of Northbrook, pleaded guilty Monday to one count of conspiracy to defraud the United States. Poticha admitted in a plea agreement that he caused a total federal tax loss of more than $24 million.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gabriel Grchan, Special Agent-in-Charge, IRS Criminal Investigation, Chicago Field Office. The government is represented by Assistant U.S. Attorney Kathryn E. Malizia.
Poticha admitted that beginning no later than 2000 and continuing through December 19, 2011, he conspired with an independent contractor to falsify information supplied to the IRS in the quarterly Employment Tax Returns (Form 941) filed by the companies, as well as in false W-2 forms the companies provided to their employees and the IRS. When employees discovered discrepancies in the W-2 forms, Poticha issued letters to conceal the fraud. This conduct resulted in a federal tax loss of approximately $24,450,609.
In addition to defrauding the IRS for the benefit of the employers and their owners, Poticha also admitted filing false personal income tax returns on his own behalf for tax years 2010 through 2015. In each of these years, Poticha fraudulently underreported his own income and over-reported his income tax withholding, resulting in a federal tax loss of $341,621 and a state tax loss of $32,604.
The conviction is punishable by up to five years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. District Judge Gary Feinerman set sentencing for Aug. 14, 2018, at 10:30 a.m.
New Orleans Man Pleads Guilty to Drug Conspiracy and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRIS WELLS, age 34, of New Orleans, pled guilty to several drug and firearms charges, including conspiracy to distribute and possess with intent to distribute one hundred grams or more of heroin and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including WELLS, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans.
On April 13, 2017, officers conducted surveillance of the individuals and observed WELLS conduct a hand-to-hand narcotics transactions with several individuals. As the officers continued their surveillance, they observed WELLS drive to Chalmette, Louisiana and return to New Orleans where an individual entered WELLS’s vehicle. After a brief period, the individual exited WELLS’s vehicle and walked toward the intersection of Frenchman and St. Claude Street. Officers approached the individual, who attempted to run but fell down and spilled approximately an ounce of heroin that he purchased from WELLS. In a post-arrest statement, the individual admitted that he routinely purchased heroin by calling one telephone that was shared by WELLS and two other persons. According to the individual, any one of the three would answer the phone and sell him an ounce of heroin on a weekly basis.
Officers and DEA Special Agents obtained a search warrant for WELLS’s residence at 406 East Liberaux Street in Chalmette, Louisiana. During the search, officers and agents seized 70 grams of heroin, 38 grams of cocaine base (“crack”), and a Smith & Wesson 9 mm semi-automatic pistol.
WELLS faces a minimum term of fifteen years’ imprisonment and a maximum of life imprisonment. U.S. District Judge Carl J. Barbier set sentencing for July 12, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney André Jones is in charge of the prosecution.
New Haven Man Sentenced to 41 Months in Prison for Role in Armed Robbery of Hamden Video Game StoreRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARIS SNOW, also known as “Eagle,” 25, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for participating in the armed robbery of a Hamden store in April 2016.
According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden. One of the men pulled out a gun and ordered the store’s three employees to get down on the ground. The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case. The employee complied and the four suspects took several items, including cellular telephones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830. The four ran out of the store to a waiting car.
Investigators subsequently identified SNOW, Rashon Gray, Tracey Biggs and Keara Northrup as the individuals who committed the armed robbery of the store. Gray brandished the firearm and threatened the store employee, SNOW pretended that he had a gun and took the cash box, and Biggs and Northrup stole merchandise. Investigators also learned that SNOW made threatening statements to and about one of the women who participated in the robbery with him.
SNOW has been detained since his arrest on June 2, 2017. On November 27, 2017, he pleaded guilty to one count of Hobbs Act Robbery
Gray, Biggs and Northrup all pleaded guilty to related charges. On April 9, 2018, Gray was sentenced to 77 months of imprisonment. Biggs and Northrup await sentencing.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
New Charge Filed Against Man Who Attempted to Bomb Downtown Oklahoma City BankRead the Press Release
OKLAHOMA CITY — A federal grand jury has returned a superseding indictment against Jerry Drake Varnell, 24, of Sayre, Oklahoma, for attempting to use a weapon of mass destruction at BancFirst in downtown Oklahoma City, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
The FBI arrested Varnell at approximately 1:00 am on August 12, 2017, after he allegedly attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst, at 101 North Broadway. The arrest was the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the alleged bomb plot developed. The explosives were inert, and the public was not in danger. FBI had received information that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government. Varnell has been in federal custody since his arrest.
On October 17, 2017, a federal grand jury charged Varnell with attempting to use an explosive device to damage and destroy BancFirst’s corporate offices. If convicted of that charge, he would face a maximum sentence of 20 years in prison and a mandatory minimum sentence of five years’ imprisonment. He would also be subject to supervised release for up to life.
Today’s superseding indictment adds a second charge: attempting to use a weapon of mass destruction, in particular an explosive or incendiary bomb, against property used in interstate commerce. If convicted of this new charge, he would face a maximum sentence of life in prison.
This investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; the Oklahoma Bureau of Narcotics and Dangerous Drugs; and the Oklahoma State Bureau of Investigation. The FBI worked in conjunction with BancFirst during the investigation. Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance. The case is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark R. Stoneman, with assistance from the Justice Department’s Counterterrorism Section.
The public is reminded that these charges are merely allegations and that Varnell is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to court records for further information.
Mooresboro, North Carolina, Woman Sentenced to Prison for Tax EvasionRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake announced today that Kelly Sue Reynolds, age 52, of Mooresboro, North Carolina, has been sentenced to 24 months in federal prison for tax evasion. Reynolds was sentenced by District Judge Timothy M. Cain in Anderson, South Carolina, who further ordered that upon her release from prison Reynolds is to serve a term of three years supervised release. Additionally, she is to make restitution totaling $556,760.03.
Assistant United States Attorney David C. Stephens of Greenville prosecuted the case. At the guilty plea he advised the court of the following facts. Reynolds was the bookkeeper for a firm located in Cherokee County, South Carolina. As part of her duties Reynolds paid bills for the firm, including the payment of various Federal Taxes. In 2014 the Internal Revenue Service (IRS) did an audit of the firm that Reynolds worked for due to the fact that certain taxes had not been paid. During the course of the audit Reynolds admitted that over a five year period she had embezzled $439,459.97 from her employer. She further stated that she had covered up the embezzlement by falsifying the books, showing that she had paid bills which she had in fact not paid. Included in the unpaid bills were the missing taxes which started the investigation. It was further determined that Reynolds had not filed personal tax returns during those years that she was embezzling funds and that based on her salary and the money she stole she owed the IRS $117,300.06 in personal income taxes. US Attorney Drake explained that income taxes are due both on illegally obtained funds as well as those legitimately earned.
U.S. Attorney Drake commended the IRS for their dedicated work on this and all of the cases they investigate in South Carolina each year.
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Mishawaka Man SentencedRead the Press Release
SOUTH BEND – Deandre Watson, 38, of Mishawaka, Indiana, was sentenced before South Bend District Court Judge Robert Miller, Jr for being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Watson was sentenced to 88 months imprisonment followed by 18 months of supervised release.
According to documents in this case, on September 30, 2016, Watson believing a man acted inappropriately towards his daughters, sought out that man in a nearby apartment building despite the fact that Watson had made a police report about that man earlier that day. Watson visited the man’s apartment with his daughters as well as a loaded 9mm handgun. Wilson hit the man with the firearm and locked the man in the trunk of his own car. The man’s girlfriend called police who arrived at the scene. Watson has been convicted of three other felony offenses prior to this incident.
This case was investigated by the ATF with the assistance of the Mishawaka and South Bend Police Departments. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
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Mexican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Mexican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Juan Carlos Cervantes-Rivera, 30, a Mexican national residing in Chelsea, was sentenced by U.S. District Court Judge Richard G. Stearns to eight months in prison and one year of supervised release. Cervantes-Rivera will be subject to deportation proceedings upon completion of his sentence. In January 2018, Cervantes-Rivera pleaded guilty to one count of illegal reentry of a deported alien.
Law enforcement encountered Cervantes-Rivera in Cambridge on Oct. 26, 2017, and determined him to be illegally present in the United States. Cervantes-Rivera was previously deported on four occasions.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Meth Trafficker Handed Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Richardson man has been ordered to federal prison following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Michael Cipriano pleaded guilty Dec. 18, 2017.
Today, Senior U.S. District Judge John Rainey sentenced Cipriano to 210 months imprisonment followed by five years of supervised release.
On July 26, 2017, law enforcement officers had received information that a vehicle would be travelling from Dallas to deliver methamphetamine to a location in Corpus Christi. As agents were conducting surveillance, Cipriano arrived at the location, at which time officers attempted to conduct a traffic stop of the vehicle. He then quickly fled the location, but Cipriano was quickly apprehended a short distance away without incident.
When officers searched the vehicle, they discovered a large plastic bag that contained a white crystal substance, which tested positive for methamphetamine. Laboratory analysis confirmed the substance had a purity of 97% and contained 967 grams of pure methamphetamine.
Cipriano has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Drug Enforcement Administration, Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Memphis Securities Broker-Dealer Indicted for Embezzling $5.7 Million from Employee Pension Benefit PlanRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Sherman Jumper, age 52, of Memphis, Tennessee was indicted on April 12, 2018, by a federal grand jury for embezzling $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer located in Clarence, Centre County, Pennsylvania.
According to United States Attorney David J. Freed, the indictment alleges that Jumper, a securities broker based in Memphis, Tennessee, forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016. The indictment also alleges that Jumper used the embezzled funds to make unauthorized loans and investments for the purchase of a tubing plant in Arkansas and three other business, to pay off $1.2 million of his personal loans, and to cover his personal legal fees. The indictment further alleges that Jumper received a personal interest in the businesses purchased with the embezzled pension funds, and his securities company, Alluvion Securities in Memphis, received over $1 million in fees from the sale of the Arkansas tubing plant.
The indictment alleges that the Snow Shoe Refractories Employee Pension Plan for Hourly Employees included about 129 active and retired employees. At the time the alleged $5.7 million embezzlement began, the pension plan assets were worth approximately $9.8 million.
The indictment charges Jumper with four counts of wire fraud, three counts of embezzlement from an employee pension benefit plan, and five counts of false statements and concealment of facts in pension benefit plan records.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the Financial Industry Regulatory Authority (FINRA), and the United States Securities and Exchange Commission. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 65 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Marion County man sentenced for firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rocmond Lewis, Sr., of Fairmont, West Virginia, was sentenced today to 18 months incarceration for an illegal firearm charge, United States Attorney Bill Powell announced.
Lewis, age 41, pled guilty to one count of “Unlawful Possession of a Firearm” in December 2017. Lewis, having previously being convicted of a felony in the Circuit Court of Marion County, West Virginia, admitted to possessing a .45 caliber pistol, a 9mm pistol, and a .380 caliber pistol. The crime occurred in March 2017 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.Major Takedown Dismantles Multi-State Heroin and Fentanyl NetworkRead the Press Release
United States Attorney Mike Stuart announced today a major takedown of drug traffickers and related drug networks recently indicted by a federal grand jury in Huntington, as well as other narcotics, violent crime and firearm related targets. Joining United States Attorney Stuart in the announcement were Drug Enforcement Administration Special Agent in Charge (SAC) Chris Evans, Federal Bureau of Investigation Assistant Special Agent in Charge (ASAC) Nick Boshears, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge (SAC) Stuart Lowrey, Homeland Security Investigations Assistant Special Agent in Charge (ASAC) Dave Abbate, Huntington Mayor Steve Williams, Huntington Interim Police Chief Hank Dial, West Virginia State Police Captain Mike LaFauci, West Virginia National Guard Adjutant General James Hoyer, Cabell County Prosecuting Attorney Sean “Corky” Hammers, U.S. Marshal Michael Baylous, Cabell County Sheriff Chuck Zerkle, Wayne County Sheriff Rick Thompson, Marshall University Police Chief Jim Terry and AHIDTA State Director Kenny Burner.
In response to a growing opiate epidemic and violent crime in southern West Virginia, United States Attorney Stuart announced the formation of Project Huntington on March 15th alongside federal, state and local law enforcement partners. Today, in a takedown of federal and state targets, nearly 100 defendants have been targeted for arrest including the execution of Operation Saigon Sunset and related search warrants in Huntington, WV. It is believed that today’s actions will result in the dismantling of the Peterson Drug Trafficking Organization (DTO), a major multi-state heroin and fentanyl distribution network. In addition to the dismantling of the Peterson DTO, federal, state and local law enforcement are executing arrests for related violent elements including narcotics and firearms targets.
Today’s actions break down as follows:
- At least 15 individuals involved in the Peterson DTO have been charged in a federal indictment in the Southern District of West Virginia with conspiracy to distribute heroin and fentanyl;
- 15 individuals involved in the Peterson DTO were indicted yesterday in Cabell County Circuit Court on state charges;
- Additional members of the Peterson DTO will be arrested and charged in Detroit;
- 13 individuals involved in narcotics and/or firearms that have been charged in federal indictments in the Southern District of West Virginia; and
- At least 48 individuals are targeted for arrest on various narcotics, violent crime, and firearms related charges at the federal or state level as determined by the circumstances of each matter.
As an indication of the scale of the operation, over 200 federal, state and local law enforcement officers took part in today’s take-down effort. The West Virginia National Guard also provided a number of personnel in a support function to the operation.
Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation was led by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West, with assistance from the Michigan State Police and the Ohio Highway Patrol. The U.S. Attorney’s Office for the Southern District of West Virginia and the Eastern District of Michigan, as well as the Cabell County Prosecuting Attorney’s Office, worked together hand-in-hand to remove these dangerous drug traffickers from the streets of Huntington and Detroit.
In conjunction with the arrest and search warrants executed in Huntington today, it is anticipated federal authorities in Detroit will soon be executing additional arrest warrants and search warrants. Additional charges will be brought against individuals in the Eastern District of Michigan.
“Our great country has never seen drug deaths like we’re seeing today,” Attorney General Jeff Sessions said. “Under President Trump’s strong leadership, the Department of Justice has taken historic new actions to put drug traffickers in jail and keep dangerous drugs out of the wrong hands. I want to thank all of our partners at DEA, FBI, ATF, the Marshals Service, Homeland Security Investigations, as well as our fabulous partners at the state and local levels for their hard work. Today’s charges against at least 90 defendants will help make the people of West Virginia and Michigan safer from the threat of dangerous drugs—and they bring us one step closer to ending the opioid epidemic.”
“Today’s actions have removed from our streets enough fentanyl to kill more than 250,000 people and massive amounts of other drugs that would have wreaked havoc and misery on our good citizens. Today is a turning point for the City of Huntington and in the war against the opiate nightmare,” said US Attorney Stuart. “Best yet, today’s actions have resulted in the destruction of a supply network, the supplier of suppliers of illicit drugs. The peddlers of poisons like heroin and fentanyl are in the crosshairs of this Administration and law enforcement. We still have work to do but the days of havoc, chaos and misery caused by the peddlers of illicit poisons are soon to be over.”
“Today, on tax day, the citizens of Huntington and the surrounding area got their money’s worth, said Huntington Mayor Steve Williams. “Thanks to the coordination of our federal, state and local law enforcement agencies our city is safer. I thank United States Attorney Mike Stuart and Major General Jim Hoyer of the West Virginia National Guard for their steadfast support. The men and women of every law enforcement agency are owed a monumental debt of gratitude for placing their lives in harm’s way to make our families safe.”
The investigation revealed that the Peterson DTO had been operating in Huntington for nearly 15 years, trafficking large amounts of heroin, fentanyl, and cocaine from Detroit to be sold in Huntington in street-level gram quantities. In August 2017, investigators with the Violent Crime and Drug Task Force West (“VCDTFW”) executed a search warrant at Manget Peterson’s residence and an associated hotel room, where Manget Peterson’s workers were distributing heroin. These searches resulted in the seizure of two handguns, over seventy half gram baggies of heroin ready for distribution, and other evidence of drug trafficking. Manget Peterson’s brother, Willie Peterson, was identified as the leader and drug supplier of the organization. Multiple sources advised that the Peterson DTO distributed kilogram quantities of heroin in Huntington, West Virginia, on nearly a weekly basis, using a network of re-distributors.
Law enforcement learned that the DEA in Detroit had opened an investigation into Willie Peterson, after a search of his residence in July 2017 resulted in the seizure of over 360 grams of fentanyl. The DEA’s investigations in West Virginia and in Detroit have resulted in investigators seizing additional drug loads and to the identification of two of Willie Peterson’s drug suppliers in Detroit, Michigan. As of April 3, 2018, law enforcement has seized approximately 760 grams of suspected heroin, 450 grams of suspected fentanyl, and 167 grams of suspected cocaine. The fentanyl seized prior to today’s actions could have resulted in the death of more than 250,000 people.
This morning, Manget Peterson was apprehended in Huntington and his brother, Willie Peterson, was apprehended in Detroit. Malcolm Simmons was also arrested in Detroit this morning.
According to Chris Evans, Special Agent in Charge of DEA’s Louisville Division Office, “Today’s round-up sends a clear message to the people of Huntington and all of West Virginia: drug traffickers who come here to destroy our communities will be aggressively pursued by DEA, in conjunction with West Virginia’s federal, state and local law enforcement components.”
“ATF is committed to working with our federal, state and local law enforcement partners and the United States Attorney’s Office to reduce violent crime in Huntington,” said Stuart Lowrey, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in West Virginia and Kentucky. “Together we will identify and investigate armed violent offenders and their illicit sources of guns. Traffickers and triggerpullers – beware.”
“We are building a collaborative approach here in Huntington,” said Interim Huntington Police Chief Hank Dial. “Day in and day out we go after criminals who are bringing these drugs into our community and work to get people into much needed treatment. We greatly appreciate our state and federal partnering agencies bringing their powerful resources to our community. There is one thing the good people of Huntington and the bad people in Huntington have in common, they both deserve today.”
In the Southern District of West Virginia, 15 individuals have been charged in a federal indictment with conspiracy to distribute heroin and fentanyl. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Long Island Bloods Gang Member Indicted for Murder and RacketeeringRead the Press Release
A seven-count indictment was unsealed today in federal court in Central Islip charging Bloods gang member Lawrence Lewis, also known as “L Boogs,” with the July 29, 2017 murder of John Birt, firearms offenses, and narcotics possession and distribution. Lewis was arrested yesterday and is scheduled to be arraigned this afternoon before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, Timothy D. Sini, District Attorney for Suffolk County, and Geraldine Hart, Acting Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“As alleged, this Bloods member committed a senseless murder in furtherance of his violent gang,” stated United States Attorney Donoghue. “The defendant’s arrest should send a loud and clear message that this Office, working collaboratively with our federal and local law enforcement partners, is committed to eradicating gang violence on Long Island and throughout our district, to make our communities safer.”
“The simple act of taking a photo ended in a man losing his life, all because a gang member was allegedly offended and decided to retaliate,” stated FBI Assistant Director-in-Charge Sweeney. “It’s hard to fathom how the suspect in this case weighed exposing his illegal drug trade, and his illegal weapons because he wanted to prove how tough he is to his rivals. The FBI Long Island Gang Task Force is committed to rooting out the violent gangs and their destructive behavior in our communities.”
“Once murder is added to the list of allegations against Lewis, it is evident that the alleged distribution of large amounts of cocaine and heroin in Long Island neighborhoods was only the tip of his criminal activity,” stated HSI Special Agent-in-Charge Melendez. “We will not stand by while violent gang members roam free in our communities. Lewis had little regard for the life he took or the lives he affected by dealing drugs, and he will now need to face the consequences of his crimes.”
“It is a top priority of the Suffolk County District Attorney’s Office to prosecute members of dangerous, violent street gangs to the fullest extent of the law,” stated Suffolk County District Attorney Sini. “This individual showed a total disregard for human life and for the law, which will not be tolerated. Today’s indictment is a reinforcement of our Office’s commitment to combating gang violence in our communities and our dedication to working collaboratively with our law enforcement partners to keep Suffolk County residents safe.”
“The Suffolk County Police Department will continue working with our law enforcement partners to bring criminal gang members and their associates to justice,” stated SCPD Acting Commissioner Hart. “The arrest of this murderer will send yet another powerful message to gangs across Long Island that illegal activities will not be tolerated.”
According to the indictment and statements made during the arraignment, between January 2016 and March 2018, Lewis utilized his membership in the Bloods street gang to distribute large quantities of cocaine base and heroin in Suffolk County. In order to protect his supply of narcotics and secure his ability to distribute his narcotics, Lewis possessed a number of firearms, including a Mossberg .22 caliber rifle and a Ruger .45 caliber semi-automatic pistol.
On July 29, 2017, Birt and several friends were posing for a photo at the Illusions Gentlemen’s Club in Deer Park when they were approached by an associate of Lewis who was also a member of the Bloods. The associate attempted to display a Bloods gang hand signal in the photo and a dispute ensued. Lewis pulled out a handgun and fatally shot Birt.
If convicted, Lewis faces a maximum term of life imprisonment.
The charges in the indictment are merely allegations, and the defendant is presumed to be innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone, Mark E. Misorek and Special Assistant United States Attorney Kathleen A. Kearon are in charge of the prosecution.
The Defendant
LAWRENCE LEWIS
Age: 36
Residence: Calverton, New YorkE.D.N.Y. Docket No. 18-CR-187 (JS)
Local Businessman Sentenced for Credit Card Fraud and ID TheftRead the Press Release
CORPUS CHRISTI, Texas – The owner of American Auto Pros in Corpus Christi has been ordered to federal prison after admitting he used numerous credit card accounts belonging to others in order to obtain things of value without authorization, announced U.S. Attorney Ryan K. Patrick. Antonio Arteaga, 38, of Corpus Christi, pleaded guilty Nov. 2, 2017, to one count of credit card fraud and one count of aggravated identity theft.
Today, Senior U.S. District Judge Hilda G. Tagle handed Arteaga a 12-month sentence for the credit card fraud as well as a consecutive 24 months for the identity theft. The total sentence of three years will be immediately followed by an additional three years of supervised release. He was further ordered to pay restitution to his victims. In handing down the sentence, Judge Tagle noted she could put herself in the victims’ shoes, citing one victim that learned of the fraud when her credit card was declined at a gas pump and the ripple effect of bounced checks and missed payments which would follow the victims of his fraud. Judge Tagle went on to explain that Arteaga’s customers relied on his honesty in taking their credit cards as payment and the entire credit card system counts on the honesty of merchants.
Arteaga was arrested Aug. 18, 2017, following an investigation into a series of fraudulent ATM withdrawals in Corpus Christi and surrounding areas. Many of the victims had been customers at Arteaga’s business, American Auto Pros. Authorities executed a search warrant at the business which led to the discovery of a credit card processing pad that was connected to a laptop computer in the office. This allowed Arteaga to illegally capture the account information and PIN numbers of credit and debit cards used there.
During a subsequent search of Arteaga’s home, law enforcement found a magnetic strip encoder that had been used to replace the information on the magnetic strip of gift cards with the compromised credit and debit card numbers. Agents also found numerous altered gift cards with the encoder at Arteaga’s house and additional gift cards illegally re-encoded with victim’s credit card information in Arteaga’s vehicle and wallet.
Agents determined that between Dec. 10, 2016, and Aug. 18, 2017, Arteaga unlawfully used the credit and debit card information of dozens of American Auto Pros customers to withdraw tens of thousands of dollars from his victims’ accounts.
Arteaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on April 17, 2018, David L. Bice, 41, of Lincoln was sentenced to 21 years and 10 months, (262 months), in prison for possession with intent to distribute more than 50 grams of actual (pure) methamphetamine. Following the prison term, Bice will serve five years on supervised release.
On May 27, 2016, Lincoln Police Department officers who were conducting surveillance on his residence, saw Bice leave his Lincoln apartment. They followed him to a local convenience store where they engaged in a conversation with him. Bice denied knowledge of drug activity but admitted he had an estimated two ounces of methamphetamine in his apartment. He went back to his apartment with the officers and turned over 73 grams of actual (pure) methamphetamine to the officers along with a digital scale and packaging materials.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lexington Business Owner Sentenced for Failing to Pay $1.7 Million in Payroll TaxesRead the Press Release
KANSAS CITY, Mo. – A Lexington, Mo., business owner was sentenced in federal court today for failing to pay over to the IRS nearly $1.7 million in payroll taxes.
Randy K. Small, 51, of Lexington, was sentenced by U.S. District Judge Gary A. Fenner to three years in federal prison without parole. The court also ordered Small to pay $1,694,725 in restitution.
On June 20, 2017, Small pleaded guilty to failure to pay over to the IRS the payroll taxes of his employees.
Small is the owner of RSB Leasing, a transportation business that has provided school bus service to multiple school districts in Missouri (including the Buchanan County R-IV School District, the Lexington, Mo., R-5 School District and the Hardin-Central C-2 School District). Small operated the business under three different names, and failed to fully pay employment taxes for each of the three businesses. At the time of his guilty plea, Small admitted that his criminal conduct resulted in an aggregate tax loss of at least $1,457,483.
According to court documents, however, Small has continued to violate tax laws since his change-of-plea hearing. IRS investigators uncovered $237,242 in additional tax harm for employment taxes that were not paid over to the IRS for employees of RSB Leasing, resulting in a total tax liability amount of $1,694,725.
Small operated the business under the name Hill Transportation, Inc., from 2005 through February 2010. After accruing over $300,000 in employment tax liability, Small discontinued operations under Hill Transportation and began operating under the name SPYKE, LLC. After accruing over $1 million in employment tax liability, Small discontinued operations under SPYKE in 2012. Finally, Small operated under the name RSB Leasing which has continued to accrue tax liability.
Small admitted that he did not deposit the Federal Insurance Contributions Act and Medicare (FICA) taxes or the income taxes that he withheld from his employees’ wages, nor did he pay the employer portion of FICA.
While accruing employment tax liabilities, Small withdrew significant amounts of cash, purchased new buses and maintained a personal collection of cars. From 2009 through 2011, Small withdrew $286,052 from the business bank account in the form of cash and cashier’s checks payable to himself. Small spent an additional $147,000 to purchase new buses for the business.
During the time period when Small was not paying his taxes, he purchased and maintained a 1998 Lamborghini Diablo SV. On April 13, 2017, about two months prior to his guilty plea, Small sold the Lamborghini for approximately $115,000 and had the proceeds from the sale wired to the business bank account of RSB Leasing. Small failed to disclose the transaction to the government and he has not used any of the proceeds to pay the taxes he owes. Instead, according to documents provided by the IRS, Small engaged in a series of banking transactions to further conceal the proceeds and evade payment to the IRS.
According to court documents, Small filed for bankruptcy with the intent to hinder the collection efforts of the IRS and obstruct the IRS’s ability to collect payment from the foreclosure sale of a parcel of land. The bankruptcy petition was dismissed on Oct. 30, 2017.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by IRS-Criminal Investigation.
Kewa Pueblo Man Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Emery Calabaza, 59, an enrolled member and resident of Kewa Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated sexual abuse of a minor charge. Under the terms of his plea agreement, Calabaza will be sentenced within the range of 180 to 240 months in federal prison followed by a term of supervised release to be determined by the court. Calabaza also will be required to register as a sex offender.
Calabaza was arrested in June 2017, on a criminal complaint charging him with sexually abusing a Kewa Pueblo child under the age of 12 years on May 30, 2017. Calabaza was subsequently indicted on June 28, 2017. The indictment charged Calabaza with sexually abusing a minor under the age of 12 years on two occasions between May 1, 2017 and June 6, 2017, on Kewa Pueblo in Sandoval County, N.M.
During today’s proceedings, Calabaza pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Calabaza admitted that between May 1, 2017 and June 6, 2017, he sexually abused the victim, who was under the age of 16-years-old. Calabaza remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Joseph M. Spindle 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 driven largely 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.
KC Woman Sentenced for Embezzling $1 Million from Her EmployerRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman has been sentenced in federal court for a fraud scheme in which she embezzled more than $1 million from her employer.
Janee C. Rosenthal, 56, of Kansas City, was sentenced by Chief U.S. District Judge Greg Kays on Friday, April 13, 2018, to three years and two months in federal prison without parole. The court also ordered Rosenthal to pay $1,097,000 in restitution.
On Sept. 22, 2017, Rosenthal pleaded guilty to two counts of mail fraud and two counts of wire fraud.
Rosenthal worked as a controller and later as a division director for Firestone Optics, Inc., as wholesaler of contact lenses located in Kansas City, Mo. Rosenthal admitted that she embezzled $1,097,448 from the company over an approximately nine-year period from June 2007 to May 2016 in order to pay down balances on her personal credit card account. She used the funds for travel (including a Norwegian cruise), dining, house expenses, clothing, entertainment (including tickets for the Kansas City Royals and the Kansas City Chiefs), utilities, vehicle and fuel expenses, health and cosmetics, groceries, taxes, computer and electronics, jewelry and pet expenses.
Rosenthal issued and signed checks drawn on the company’s bank account and made payable to her personal credit card account. She also made wire fund transfers from the company’s bank account to her personal credit card account for personal goods and services that had been charged on her credit card. Rosenthal, who made 88 fraudulent transactions as part of her scheme, falsely represented in Firestone Optics’s accounting ledgers that certain of her personal expenditures were legitimate business expenses.
As of the date of the sentencing hearing, according to court documents, Rosenthal has not made a single payment towards the amount she owes her victims nor has she offered an apology to them.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the FBI.
Justice Department Secures Denaturalization of Child Sexual Abuser and Four Somalia-Born Individuals Who Falsely Claimed to be a Family and Were Admitted to the United States on Diversity Immigrant VisasRead the Press Release
On April 11, the Department of Justice secured the denaturalization of two individuals – one convicted of engaging in sexual contact with a minor, and the other who fictitiously created a family to secure a Diversity Immigrant Visa. Judge Joe Fish of the U.S. District Court for the Northern District of Texas entered an order to revoke the U.S. citizenship of Emmanuel Olugbenga Omopariola, and Judge Susan Richard Nelson of the U.S. District Court for the District of Minnesota entered an order to revoke the U.S. citizenship of Fosia Abdi Adan.
The court found that prior to naturalizing, Omopariola, 61, engaged in sexual contact with a seven-year-old minor, which he admitted and for which he was later convicted. This prior conduct rendered Omopariola ineligible for applying for U.S. citizenship because he did not show the moral conduct necessary for naturalization. Additionally, throughout his naturalization proceedings Omopariola misrepresented and hid his unlawful activity.
During litigation, Adan, 51, conceded that she had procured her U.S. citizenship by willful misrepresentation and concealment of material facts, including the fraudulent nature of her relationship to individuals she claimed to be her children. In light of that admission, the court found that Adan had unlawfully procured her U.S. citizenship.
The denaturalization of Adan marks the culmination of the government’s case against four individuals—a purported husband, wife, and two sons—who unlawfully, knowingly, and fraudulently represented to immigration officials that they were a family in order to gain admission to the United States through the Diversity Immigrant Visa Program, which they later used to obtain U.S. citizenship. Judge Nelson entered orders revoking the naturalized U.S. citizenship of Adan’s purported husband, Ahmed Mohamed Warsame aka Jama Solob Kayre, 53, on February 27, 2018, and her purported sons, Mustaf Abdi Adan aka Mohamed Jama Solob, 33, and Faysal Jama Mire aka Mobarak Jama Solob, 31, on March 19, 2018. All four individuals consented to the entry of orders of denaturalization.
“The current immigration system is too often abused by fraudsters and nefarious actors. These cases are prime examples of the unfortunate fraud that is all too common within our immigration system,” said Attorney General Jeff Sessions. “The Department will continue to investigate and prosecute others who conceal their heinous crimes, and those who seek to rely on fraudulent relationships to become naturalized United States citizens.”
The Omopariola matter was referred to the Department of Justice by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The other four cases, United States v. Fosia Abdi Adan; United States v. Ahmed Mohamed Warsame; United States v. Mustaf Abdi Adan; and United States v. Faysal Jama Mire, were referred to the Department of Justice by the U.S. Department of State’s Diplomatic Security Service (DSS) and ICE, with investigative support from HSI and U.S. Citizenship and Immigration Services’ (USCIS) Fraud Detection and National Security Directorate.
"The integrity of our consular processes is a core element of U.S. national security,” said Assistant Secretary of State for Consular Affairs Carl Risch. “The Department of State works closely with the Justice Department efforts to detect, deter, and combat fraud related to U.S. travel documents. These denaturalizations demonstrate the value of this important interagency collaboration; a partnership that allows us to facilitate travel by qualified individuals in the context of ensuring a strong and secure U.S. border.”
The Texas case was investigated by HSI and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was handled by OIL-DCS’s National Security and Affirmative Litigation Unit and the U.S. Attorney’s Office for the Northern District of Texas, with support from ICE’s Office of the Principal Legal Advisor.
These Minnesota cases were investigated by DSS, ICE, USCIS, and the OIL-DCS. The cases were prosecuted by Senior Litigation Counsel Anthony D. Bianco and Trial Attorney Kathryne M. Gray of OIL-DCS, with support from Senior Attorney Lucia A. Fiorentino and former Attorney Sarah Mazzie of ICE’s Office of the Principal Legal Advisor, and DSS.
Jury Convicts Sacramento Man of Fraud in Connection with Arson SchemeRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a federal jury found Brian J. Stone, 59, of Sacramento, guilty today of 13 counts of wire and mail fraud, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Stone devised a plan to get fire insurance money from State Farm based on false statements about who had performed cleanup work after a fire at 2764 Fulton Avenue in Sacramento in June 2013.
In late 2012, co-defendant Jamal Shehadeh had rented space at that location in the name of a supposed auto parts supply business. Stone, a disbarred attorney, had been helping Shehadeh unsuccessfully fight an eviction action during the months prior to the fire. On the night the eviction took effect, the fire occurred at 2764 Fulton, and the supposed auto parts business later filed an insurance claim with State Farm. While helping with the insurance claim, Stone recruited a local contractor to create a fake invoice and lie to State Farm regarding debris removal work performed after the fire. In a series of emails, Stone directed the local contractor to keep 10 percent of the money that they would get from State Farm from this fraud, and send the other 90 percent to Stone in a cashier’s check.
The scheme was uncovered when the local contractor reported it to State Farm. The FBI later executed search warrants of Stone’s office and email account, finding copies of documents outlining the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
Two other defendants were charged in the same case. Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony on February 10, 2018, including the 2764 Fulton Avenue fire, and was sentenced to 30 years in prison. Charges against Saber Shehadeh are pending with trial scheduled to start on May 14, 2018. The charges against Saber Shehadeh are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stone is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on July 12, 2018. Stone faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Indictment: Heroin Ring Operated in Kansas City, Kan.Read the Press Release
KANSAS CITY, KAN. – A federal grand jury indictment unsealed here today charges six men with conspiracy to distribute heroin in Kansas City, Kan., U.S. Attorney Stephen McAllister said.
Named in the 16-count indictment are the following defendants:
- George Bush, Jr., 28, Kansas City, Kan.
- Albert Brown, 29, Kansas City, Kan.
- Isaiah Lewis, 21, Kansas City, Kan.
- Maurice Bluett, 24, Kansas City, Mo.,
- Markelo Paden, 23, in custody in the Johnson County Jail.
- Benjamin Mims, 30, Lawrence, Kan.
All six defendants are charged in Count 1 with conspiracy to distribute heroin. Other counts include possession with intent to distribute heroin, unlawful possession of a firearm in furtherance of drug trafficking, and maintaining a residence in furtherance of drug trafficking.
Upon conviction, the crimes carry the following penalties:
Conspiracy to distribute heroin: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Possession with intent to distribute heroin: Up to 20 years and a fine up to $1 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Maintaining a drug involved premises: Up to 20 years and a fine up to $500,000.
The FBI and the Internal Revenue Service investigated with assistance from the Douglas County Sheriff’s Office, the Kansas City, Kan., Police Department, the Lawrence Police Department and the Kansas City, Mo., Police Department. Special Assistant U.S. Attorney James Ward and Assistant U.S. Attorney Dave Zabel are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Aliens Sentenced for Dealing Meth in NorfolkRead the Press Release
NORFOLK, Va. – Two illegal aliens, one of whom was previously convicted of an aggravated felony in Arizona and has been deported at least three times, have been sentenced to prison for dealing methamphetamine in Norfolk.
According to court documents, Jaime Sanchez-Huerta, aka “Carlos Slim,” 23, of Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession of a firearm by an illegal alien. Alejandro Rodriguez-Vargas, 34, of Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and illegal reentry by a deported alien.
According to court documents, on April 25, 2017, Norfolk Police arrested Sanchez-Huerta on his way to a drug deal in Norfolk. Sanchez-Huerta, an illegal alien, was in possession of a loaded .45 caliber pistol. Norfolk Police searched Sanchez-Huerta’s vehicle and hotel room and discovered $4,000 in cash, 4.5 grams of methamphetamine, marijuana, digital scales, and a box of .45 caliber ammunition. The following day, Norfolk Police searched a second hotel room tied to Sanchez-Huerta and discovered Rodriguez-Vargas, another illegal, and 137 grams of “Ice.” Rodriguez-Vargas has been deported at least three times before and he was previously convicted of re-entry by a deported alien subsequent to a conviction for an aggravated felony in Arizona in 2013.
Sanchez-Huerta was sentenced to 12 years and four months in prison today. Rodriguez-Vargas was sentenced to 10 years in prison on February 16. Both men will be deported upon completion of their sentences.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
ICE’s Enforcement and Removal Operations and the Virginia Beach Police Department provided significant assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-129.
Illegal Alien indicted on reentry chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Mexican man has been indicted by a federal grand jury on a reentry charge, United States Attorney Bill Powell announced.
Victor Eduardo Zepeda-Garcia, also known as Victor Eduardo Garcia-Zepeda, age 31, a citizen of Mexico, was indicted on one count of “Reentry of Removed Alien.” Zepeda-Garcia, an illegal alien, is accused of reentering the United States after being removed in March 2016 near Del Rio, Texas. Zepeda-Garcia is accused of being in Lewis County, West Virginia on March 3, 2018.
Zepeda-Garcia faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigrations and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Indicted for Reentering the United States and for Failing to Register as A Sex OffenderRead the Press Release
Orlando, Florida – A federal grand jury has returned an indictment charging Ramon Lopez-Alvarado (58), a citizen of Mexico, with illegally reentering the United States after deportation and failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). If convicted, he faces a maximum penalty of 20 years in federal prison on the reentry count and up to 10 years in federal prison on the failure to register count.
According to the indictment, Lopez-Alvarado, an illegal alien, was previously convicted for committing a lewd act on a child and for failing to register as a sex offender. He was removed from the United States in 2013 and, on March 17, 2018, was found to be back in the United States without permission. Upon returning to the United States from Mexico, Lopez-Alvarado also failed to register as a sex offender and keep his registration current as required by SORNA.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.
Hartford Man Guilty of Federal Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found JOSEPH STEELE, also known as “Joey,” 32, of Hartford, guilty of drug and firearm offenses. The trial before U.S. District Judge Michael P. Shea began on April 12 and the jury returned verdicts of guilty on three counts of a four-count indictment yesterday afternoon.
According to the evidence disclosed during the trial, on June 14, 2017, the Hartford Police Department’s Vice and Narcotics Unit received information that STEELE was in possession of a firearm while operating a white Cadillac. Investigators located the Cadillac and conducted a traffic stop at the intersection of Enfield Street and Capen Street. After STEELE consented to a search of the vehicle, investigators lifted a rear seat cushion and found a .40 caliber semiautomatic pistol, 50 wax folds of fentanyl, and two knotted plastic bags containing approximately 6.5 grams of crack cocaine.
In April 2016, STEELE was convicted in Connecticut Superior Court of possession of a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Yesterday, the jury found STEELE guilty of one count of possession with intent to distribute cocaine base (“crack cocaine”), one count of possession with intent to distribute fentanyl, and one count of possession of a firearm by a previously convicted felon. STEELE was acquitted of one count of possession of a firearm in furtherance of a drug trafficking crime.
Judge Shea scheduled sentencing for July 9, 2018, at which time STEELE faces a maximum term of imprisonment of 20 years on each of the drug offenses, and a maximum term of imprisonment of 10 years on the firearm offense.
STEELE has been detained since his arrest on June 14, 2017.
This investigation was conducted by the Hartford Police Department’s Vice and Narcotics Unit and the FBI’s Northern Connecticut Violent Crime Gang Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Jocelyn Courtney Kaoutzanis.
Guatemalan Sentenced to Nearly Two Years in Prison for Returning to the United States Following Prior DeportationRead the Press Release
A Guatemalan man who illegally returned to the United States after having been deported following a felony conviction was sentenced today to 22 months’ in federal prison.
Benjamin Aguilar-Ramirez, age 35, a citizen of Guatemala illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a January 11, 2018, guilty plea to one count of illegal reentry into the United States following a felony conviction.
At the guilty plea, Aguilar-Ramirez, an illegal alien, admitted that he was deported from the United States on May 5, 2017, and that he illegally reentered the United States without the permission of the United States government. Aguilar-Ramirez was previously convicted on March 8, 2017, in the United States District Court for the Northern District of Iowa of one count of unlawful use of identification documents and one count of misuse of a social security number, both felonies. On the document fraud convictions, Aguilar-Ramirez was sentenced to 114 days’ imprisonment and a three-year term of supervised release. On November 13, 2017, Aguilar-Ramirez was found by immigration officers at the Black Hawk County Jail in Waterloo, Iowa, following his arrest for violating a State of Iowa No Contact Order.
Aguilar-Ramirez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Aguilar-Ramirez was sentenced to 16 months’ imprisonment on the illegal reentry conviction. Aguilar-Ramirez was also sentenced to 6 months’ imprisonment for violating the terms of his supervised release on the document fraud convictions. The terms of imprisonment are to be served consecutively. He must also serve a three-year term of supervised release on the illegal reentry conviction after the prison term. There is no parole in the federal system.
Aguilar-Ramirez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 16-CR-2055-LRR and 17-CR-2089-LRR.
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Grand Rapids Man Sentenced in Student Loan and Tax Fraud ScamRead the Press Release
Brandon Kenon Rogers Gets Four Years in Federal Prison
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Paul Maloney sentenced Brandon Kenon Rogers, 31, of Grand Rapids, to 48 months in prison and ordered him to pay $128,746.00 in restitution for committing student loan, grant and tax fraud.
Rogers pled guilty on November 28, 2017, and admitted that he defrauded the U.S. Department of Education by obtaining the identity information of others and posing as those individuals while applying online for Student Loans and Pell Grants in their names. He also enrolled online in local community colleges, including Grand Rapids Community College and Kalamazoo Valley Community College, using those same identities. Rogers used the loans and grant funds for his own purposes without actually attending the classes as required. Rogers also used the stolen identities to obtain fraudulent income tax refunds.
The government stressed at sentencing that, while taxpayers generously allow cash-strapped students to get loans and grants to better themselves with an education, news that this money lined the pockets of a criminal would undermine support for the programs that benefit others.
U.S. Attorney Birge stated that, "I hope Rogers’s prison sentence sends a message that this kind of fraud won’t be tolerated here. I intend to make West Michigan a place for fraudsters to avoid."
The Grand Rapids Community College Department of Public Safety, the U.S. Department of Education, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service investigated this case. Prosecution of Rogers was handled by Timothy VerHey, Assistant United States Attorney.
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