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Thursday 8 March 2018
Illegal Alien Sentenced for Trafficking in Counterfeit Identity Documents and Alleged Document Producer ArrestedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Gerard Ibarra (57, Mexico) to 10 months in federal prison for fraud and misuse of visas, permits, and other documents. The court also ordered him to forfeit $5,752, which is traceable to proceeds of the offense. Ibarra pleaded guilty on September 25, 2017.
According to court documents, in May 2017, the U.S. Secret Service (USSS) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) received information from local law enforcement about an individual known as “Perfume Cuco” (later determined to be Ibarra) who was selling fraudulent identification documents to illegal immigrants in Kissimmee. These documents were being sold for $150 to $200 a piece, and included immigrant visas (i.e., “Green Cards”), social security cards, and Florida driver licenses. Agents from HSI and the USSS conducted an undercover investigation during which Ibarra sold a counterfeit Green Card and a counterfeit social security card to an undercover agent. Ibarra was arrested on August 16, 2017, following a second undercover purchase. A subsequent search of his vehicle revealed 10 counterfeit Green Cards, 21 counterfeit social security cards, a counterfeit California driver license and $5,752 in cash. Ibarra later told agents that he had been selling counterfeit cards for about two years and that “business was good.” He estimated that he had sold approximately 2,000 cards.
Further investigation revealed that an individual named “Jimmy,” later identified as Jaime Gaspar (37, Kissimmee), had been supplying the counterfeit cards to Ibarra. On March 7, 2018, Gaspar was arrested and charged by criminal complaint for his involvement in the scheme.
According to court records, Ibarra sent photos and biographic information to Gaspar using a cellphone app. Upon Gaspar’s arrest, agents located his cellphone in his room and confirmed it was the same phone used to perpetuate the fraud with Ibarra.
“HSI places a high priority on investigating document and benefit fraud,” said HSI Tampa Special Agent in Charge James C. Spero. “This crime poses a threat to national security and public safety because it creates a vulnerability that may enable criminals and illegal aliens to gain entry to and remain in the United States.”
“The results of this investigation are a testament to the Secret Service’s commitment to strong partnerships between local and federal law enforcement agencies,” said Gerard Doret, Special Agent in Charge of the U.S. Secret Service Orlando Field Office.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Secret Service as result of HSI’s Document and Benefit Fraud Task Force (DBFTF), which was created to combat visa fraud and other similar crimes by building upon existing partnerships with other federal and state law enforcement investigators with document and benefit fraud expertise. It was prosecuted by Special Assistant U.S. Attorney Christina R. Downes, who is on assignment from the Office of the Principal Legal Advisor, ICE.
Illegal Alien Pleads Guilty to Re-entering United States After Previous Felony ConvictionRead the Press Release
Gulfport, Miss. – Oscar Alfredo Burgon-Urrea, 39, a citizen of Honduras, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr., to unlawful re-entry by a removed alien previously convicted of a felony, announced U.S. Attorney Mike Hurst and David Rivera, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) in New Orleans.
Burgon-Urrea is scheduled to be sentenced by Judge Guirola on June 5, 2018. He faces a maximum penalty of ten years in prison and a $250,000 fine.
On December 4, 2017, during Department of Homeland Security criminal alien program duties at the Jackson County Adult Detention Center, an ICE Deportation Officer arrested Burgon-Urrea, who was being held by local officials for public drunkenness after Moss Point police officers found him by the side of Interstate 10 in an intoxicated condition.
Further investigation revealed that Burgon-Urrea had been lawfully removed from the United States in 2005, and had illegally re-entered the United States on six subsequent occasions. In 2011, he was convicted in the U.S. District Court for the Western District of Texas of re-entry by a deported alien, a felony. He had been known by multiple variations of his name including Oscar Alfredo Burgos-Urrea, Oscar Alredo Burgos Ureea, Oscar Alfredo Burgos, Oscar Burgos and Oscar Alfredo.
"ERO is committed to pursuing and apprehending those who choose to violate our immigration laws," said ICE ERO Field Office Director David Rivera, "ERO will continue to work with our law enforcement partners to ensure criminal aliens are arrested and removed."
The case was investigated by U.S. Immigration and Customs Enforcement, the Moss Point Police Department, and the Jackson County Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorney Stan Harris.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that EDY GARCIA-BANEGAS, age 32, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien after deportation, in violation of Title 8, United States Code, Section 1326.
According to the Bill of Information, EDY GARCIA-BANEGAS reentered the United States on or about December 14, 2017, after having been previously removed therefrom on or about January 6, 2012.
EDY GARCIA-BANEGAS faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for April 18, 2018.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Hayward Resident Sentenced to Two Years in Prison for Making Harassing and Obscene Telephone Calls to Law Enforcement Agencies WorldwideRead the Press Release
OAKLAND– Sammy Sultan was sentenced to two years in prison for making hundreds of obscene and harassing phone calls to law enforcement agencies, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Phyllis J. Hamilton, Chief U.S. District Judge, handed down the sentence yesterday, after Sultan entered a guilty plea on December 13, 2017.
According to his plea agreement, from February 2015 through September 2017, Sultan, 44, of Hayward, Calif., admitted he made hundreds of obscene or harassing phone calls to various law enforcement agencies throughout the United States and abroad, including Canada and Great Britain. He typically requested to speak with a female officer or sergeant. Sultan further admitted that he made a variety of false claims to convince officers that he was a threat to others or himself; he did so, in part, to engage the female officers in protracted conversations. Sultan admitted that he sometimes would claim to have escaped from a mental hospital and that he might harm himself or others if the person on the other end of the line refused to answer his questions. He sometimes claimed he possessed a handgun, an AK-47, or an automatic rifle. At times, he claimed he had a women hostage.
Sultan also admitted he took several steps to conceal his identity. He acknowledged he did not disclose his identity during the calls and refused to inform the persons he called of his identity when asked. Sultan also admitted he knew his calls would result in extensive efforts by law enforcement officers, in the United States and abroad, to trace the calls and try to identify him, his location, and the location and identity of any hostage. In an effort to avoid being detected, he used a variety of different phones and routed calls over the internet using Voice Over Internet Protocol (“VOIP”) technology and “spoofing” services to create “burner” phone numbers so that the actual phone numbers for his phones would be concealed. He also admitted he knew his actions would result in a substantial disruption of public, governmental, and business functions.
On November 21, 2017, Sultan was charged by information with one count of making obscene or harassing telephone calls, in violation of 47 U.S.C. § 223(a)(1)(C), and one count of making threatening interstate communications, in violation of 18 U.S.C. § 875(c). Pursuant to his plea agreement, Sultan pleaded guilty to making obscene or harassing calls and the threat charge was dismissed.
In addition to the prison term, Chief District Judge Hamilton also ordered Sultan to serve a year of supervised release following his incarceration, during which time he has been ordered to enroll in a computer monitoring program and participate in mental health counseling. Sultan has been in custody since September 12, 2017, and will begin serving his sentence immediately.
Assistant U.S. Attorney Thomas Green is prosecuting the case. The prosecution is the result of an investigation by the FBI.
Gunsmoke Gun Shop Owner Sentenced to 78 Months for Conspiracy and Tax FraudRead the Press Release
DENVER – Richard Wyatt, age 54, of Evergreen, Colorado was sentenced today by U.S. District Court Chief Judge Marcia S. Krieger to serve 78 months in prison followed by three years of supervised release for conspiracy to deal in firearms without a license and for tax fraud, announced United States Attorney Bob Troyer, IRS-Criminal Investigation (IRS-CI) Denver Field Office Special Agent in Charge Steven Osborne, and Bureau of Alcohol, Tobacco, Firearms, and Explosives Denver Field Division Special Agent in Charge Debora Livingston. As part of today’s sentencing, the Court found that 490 firearms were involved in the commission of Wyatt’s offenses. Those firearms were ordered forfeited. The amount of restitution to the Internal Revenue Service will be determined at a future hearing.
According to the indictment and evidence presented at trial, Wyatt operated Gunsmoke, a store in Wheat Ridge, Colorado, displaying firearms and firearm accessories for sale. Wyatt was the principal decision maker for the store and controlled the store’s bank account. In addition to holding itself out as a business that bought and sold firearms, Gunsmoke provided gunsmithing services. Wyatt aggressively publicized his business by posting videos on YouTube and by appearing in a reality television series that appeared on the Discovery Channel. The reality TV show aired from 2011 through 2012, showing a total of 26 episodes.
In April 2012, Wyatt surrendered Gunsmoke’s federal firearms license due to violations of federal laws and regulations. After Gunsmoke surrendered its federal firearms license, Gunsmoke changed the address of the federal firearms license of another store known as Triggers Firearms LLC’s (Triggers) to the Gunsmoke address, but did not play any role in managing the store or receive any profits. Thereafter, Wyatt continued to operate Gunsmoke as a retail firearms store that also offered gunsmithing services, but Wyatt never held an ownership interest in Triggers or assumed management of Triggers. Wyatt and other conspirators submitted false paperwork to the ATF to hide that Triggers was acting as a straw licensee for Gunsmoke.
Without a federal firearms license, Wyatt ran his business by directing Gunsmoke employees to enter firearm sales in Gunsmoke’s computer point of sales software system as “miscellaneous” sales rather than firearm sales. Customers who shopped at Gunsmoke were able to look at numerous firearms that were displayed throughout the store. Customers were able to speak with Gunsmoke employees, including Wyatt, about the features of particular firearms. Finally, customers selected and purchased firearms from Gunsmoke and were able to have gunsmithing services performed on firearms at the Gunsmoke premises. After receiving payment for firearms, Gunsmoke employees directed customers to another firearms store which had a valid federal firearms license, where the customers filled out the background check paperwork and the customers took possession of the firearm(s) they had purchased at Gunsmoke. Customers who wanted gunsmithing services left their firearms with Gunsmoke. After the gunsmiths at Gunsmoke completed their work, they returned the firearms to the customers. The customers paid Gunsmoke directly for this service. Wyatt, without the federal firearms license, continued to order new guns for sale to keep the business going.
After a 3-week jury trial last year, a Denver jury convicted Wyatt of two counts of conspiracy of dealing in firearms without a license, filing a false tax return, and multiple counts of failure to file. Specifically, Wyatt failed to pay over $500,000 in income tax for years 2009-2012, and did not file tax returns for years 2009, 2010 and 2012. For 2011, Wyatt willfully filed a tax return he knew to be false, stating that he lost money, when in fact he made at least $350,000 that he failed to disclose.
“A man has to make a choice, and Wyatt chose wrong,” said U.S. Attorney Bob Troyer. “Unless your ambition is to serve a long sentence in the Federal Bureau of Prisons, selling guns illegally and cheating on your taxes are going to be bad choices.”
“Even television reality stars are not exempt from the reality of our nation’s tax laws,” said Internal Revenue Service Criminal Investigation Denver Field Office Special Agent in Charge Steve Osborne. “IRS-CI will continue focusing our investigative efforts on individuals who attempt to thwart their tax responsibilities and do not comply with the law. Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
“Wyatt’s willingness to operate outside of the law is not only an affront to public safety, but also to all Federal Firearms Licensees that follow federal firearm laws and regulations every day,” said Special Agent in Charge Debora Livingston of the Denver Field Division for the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “The sentence today demonstrates that ATF will investigate those who attempt to circumvent those laws and regulations.”
This case was investigated by IRS-CI and ATF. The case was prosecuted by Assistant United States Attorneys Suneeta Hazra, Peter McNeilly, and Anna Edgar. Assistant United States Attorney Tonya Andrews is handling the forfeiture of assets associated with the case.
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Gulfport Man Sentenced to Almost Nine Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Tony D. Crawford, 24, of Gulfport, was sentenced by U.S. District Judge Sul Ozerden today to serve 105 months in federal prison followed by three years supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. He was also ordered to pay a $5,000 fine.
Crawford pled guilty on April 20, 2017, to possession of a Ruger 9 mm pistol, a Drago, 7.62 caliber pistol, a Taurus 9 mm pistol, and a Hi-Point .45 caliber rifle. He admitted that he unlawfully possessed at least some of the firearms when he was conducting narcotics trafficking.
Crawford had purchased three of the firearms through straw purchasers, that is, people without felony criminal records who purchased one or more firearms from a legal firearms dealer and then resold to Crawford.
One of those straw purchasers, Isaac Q. Coleman, pled guilty to knowingly making a false statement in connection with the purchase of a firearm. Following his guilty plea and conviction, Coleman was sentenced by Judge Ozerden to serve seven months in federal prison and five months of home confinement, followed by two years of supervised release. He was also ordered to pay a $3,500.00 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Department, along with the City of Biloxi, City of D’Iberville, City of Gulfport and City of Pass Christian Police Departments. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Ghanaian National Arrested for Identity TheftRead the Press Release
BOSTON - A Ghanaian national was arrested yesterday and charged in federal court in Worcester with illegal possession of identification documents and aggravated identity theft.
Yaw Okyere, 33, a citizen of Ghana residing in Worcester, was charged by criminal complaint with being illegally in possession of five or more identification documents and aggravated identity theft. Okyere appeared before Chief U.S. Magistrate Judge David H. Hennessy, who ordered Okyere detained pending a probable cause and detention hearing scheduled for March 13, 2018.
According to court documents, on March 7, 2018, federal agents executed a search warrant at Okyere’s apartment in Worcester, where they seized computers and a printer. An initial forensic review of one of the computers revealed files containing more than 190 Massachusetts driver’s licenses with various names and photographs.
During the execution of the search warrant, agents interviewed Okyere, who stated that he was a citizen of Ghana, had arrived in the United States a few years earlier on a visa, that he had overstayed his visa, and was unsure of his immigration status.
The charge of illegally possessing five or more identification documents provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison, which must be served consecutive to any other sentence imposed by the sentencing court. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Gardnerville Man Arrested and Indicted for Butane Hash Oil ExplosionRead the Press Release
RENO, Nev. – A Gardnerville, Nevada, man was arrested and made his initial appearance in federal court today for causing an explosion at his apartment while trying to illegally make butane hash oil, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Adam Fitzgerald-Wermes, 22, is charged with one count of endangering human life while manufacturing a controlled substance. United States District Magistrate Judge Valerie P. Cooke scheduled a jury trial to begin on May 8, 2018.
According to the indictment, on January 14, 2018, Fitzgerald-Wermes allegedly caused an explosion in his kitchen by trying to make butane hash oil containing a high potency of THC (tetrahydrocannabinol). The chemical extraction process is dangerous because it involves the use of butane, a highly flammable and odorless gas, to burn parts of marijuana to draw concentrated THC from the plant into a wax-like substance. THC is a psychoactive chemical in marijuana that produces the “high” feeling users seek.
If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the DEA and Douglas County Sheriff’s Office. Assistant U.S. Attorney James Keller is prosecuting the case.
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Franklin County Couple Pleads Guilty to Removing Aluminum Braces from Railroad CarsRead the Press Release
St. Louis, MO – Jacob C. Brewer and Michelle L. Phipps pled guilty to removing aluminum stabilizing braces from railroad cars.
According to court documents, between February 1 and February 22, 2017, Brewer and Phipps disabled railroad on-track equipment by removing aluminum stabilizing braces from railroad freight cars. The braces are designed to keep the freight cars from derailing when fully loaded and moving. The railroad freight cars are owned by Ameren UE and were used to transport coal from the State of Wyoming to the State of Missouri. The couple later sold the aluminum braces to local recycling centers.
Brewer, 30, from Beaufort, Missouri, and Phipps, 27, from Washington, Missouri, both pled guilty to one felony count of disabling on-track railroad equipment. They appeared in federal court today before United States District Judge Stephen N. Limbaugh, Jr. Sentencing has been set for June 6, 2018.
This charge carries a maximum penalty of 20 years’ imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Franklin County Sheriff’s Department. Assistant United States Attorney Gil Sison is handling the case for the U.S. Attorney's Office.
Four Individuals Indicted for Trafficking in Counterfeit GoodsRead the Press Release
SAN JUAN, P.R. – On March 7, 2018, a Federal grand jury returned a 28-count indictment charging four individuals with mail and wire fraud conspiracy, mail fraud, trafficking in counterfeit goods, introducing misbranded articles into interstate commerce, distribution of a controlled substance, international money laundering, and smuggling, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), Immigration and Customs Enforcement-Homeland Security Investigation, and US Postal Inspectors were in charge of the investigation with the collaboration of Customs and Border Protection (CBP) and the Puerto Rico Department of Treasury (Departamento de Hacienda).
According to the indictment, defendants Carlos Enrique Velázquez-Gines, Mayra Evelise Gines-Otero, Noriam Ivette Flores-Deleon, and Vanessa Marrero-Hernández marketed and offered numerous purported “dietary supplements” for male enhancement or weight loss, which were in fact “drugs” under the Federal Food, Drug, and Cosmetic Act (FDCA) for sale to American consumers. Defendants marketed and sold the products through “online stores” on platforms such as eBay.com and Bonanzo.com, using seller name “lostchildinpr” and “deleon1988.” The products listed in the indictment include: Foreign-labeled product, XXXplosion, Power, Hard Ten Days, Zhansheng Weige, ExtenZe, ExtenZe Plus, La Pepa Negra, Lang Yi Hao, FX3000, Shark Extract, Black Storm, USA Power, Plant Vigra, Para Hombres Paradise, Jack Rabbit, Rhino 12 Titanium, Rhino 69, African Black Ant, Paradise Ultra Plus, Figa XP, U-fit, Natural Max Slimming Advanced – Appetite Reducer, and Natural Max Slimming Advanced – Fat Burner.
Many of the counterfeit male-enhancement pills contain the active pharmaceutical ingredient (sildenafil), found in popular and well-known products such as “Viagra” and “Cialis,” and these products do not advertise that pharmaceutical ingredient. Defendants also sold counterfeit condoms. Male latex condoms are medical “devices” under the FDCA.
The defendants also marketed and offered for sale purported Kylie Cosmetics brand products, including lipstick kits. Lipstick is a “cosmetic” under the FDCA. Analysis of the purported Kylie Lip Kit distributed by defendants was conducted by FDA/manufacturer, which confirmed that the lipstick and its labeling were counterfeit.
The object of the conspiracy was for defendants to unlawfully enrich themselves by purchasing from overseas suppliers, illegally importing into the United States, and subsequently selling to American consumers, FDA-regulated products that were counterfeit and/or misbranded. From at least on or about October 3, 2013 defendants purchased from overseas suppliers located in China, and imported into the United States “dietary supplements,” latex condoms, and make-up, that were counterfeit and/or misbranded under the FDCA. In an effort to evade detection by law enforcement, when ordering the illegal products from China, defendants had the packages shipped to a trans-shipper located in Miami, Florida, who would then re-package and/or re-label the parcels and send them to defendants in Puerto Rico.
Defendants mailed and caused to be mailed through the United States Postal Service numerous packages to customers across the United States containing counterfeit and/or misbranded products. They used a residence located in Villa Blanca, Manatí, P.R. as a warehouse to store and distribute the unlawful products they purchased from overseas suppliers and re-sold to customers. The defendants also distributed wholesale quantities of the counterfeit and/or misbranded products imported from overseas to wholesale buyers. Defendant Carlos Enrique Velázquez-Gines, initiated numerous wire transfers of funds to overseas suppliers to pay for the unlawful products purchased and imported by the defendants.
“These defendants sold counterfeit and misbranded medical devices, as well as counterfeit and misbranded male-enhancement pills. Some of these medications contained drugs that the consumers were not aware of and could cause danger to their health, including heart attacks or strokes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to work with the FDA to protect the public from adulterated and misbranded products, and to ensure that dietary supplement sellers provide accurate information about their products.”
“Americans must have confidence that the FDA-regulated products they use are authentic, safe and properly labeled,” said Justin D. Green, Special Agent in Charge, FDA OCI’s Miami Field Office. “We remain fully committed to aggressively pursuing those who place unsuspecting U.S. consumers at risk by distributing illegal drugs, devices or cosmetics.”
“The trafficking of counterfeit goods is simply illegal and in some cases, as this, it becomes a problem of public health and safety and at times threatens national security,” said Orlando Baez, the acting special agent in charge who oversees HSI operations throughout Puerto Rico and the U.S. Virgin Islands. “This illegal activity represents a triple threat as it delivers substandard and often dangerous goods into the economy, rob citizens of good-paying jobs, and generate proceeds that are often funneled back into other criminal enterprises. HSI will continue to work with its enforcement partners to combat the distribution of counterfeit products especially those who that endanger public health.”
Consumers can contact FDA’s MedWatch program at 1-800-FDA-1088 to report suspected serious adverse events, product quality problems, or product use errors associated with the use of an FDA-regulated product, as well as suspected counterfeit medical products.
Defendants are facing a forfeiture allegation of $3,699,901.94, six properties or homes, two bank accounts, one Pay Pal account, and three certificates of deposit. If convicted, the defendants face a maximum possible sentence of 30 years for the conspiracy charges, 10 years for trafficking counterfeit goods, three years for introducing and receiving misbranded products in interstate commerce. Velázquez-Gines is also facing up to 20 years in prison for international money laundering and 20 years for smuggling. The case is being prosecuted by Assistant U.S. Attorney Edward Veronda. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Four Additional Members and Associates of Clarksville, Tennessee Mongols Motorcycle Gang Charged with Crimes Related to Racketeering Conspiracy, Murder, Kidnapping and Drug TraffickingRead the Press Release
A 62-count, second-superseding indictment was returned by a federal grand jury in Nashville, Tennessee yesterday, charging 19 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking and other crimes, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
A superseding indictment returned in January 2018 charged 15 of the defendants with various crimes related to this investigation, including racketeering conspiracy murder, kidnapping, and large-scale drug trafficking. As of January 18, 2018, all of the defendants were in custody with the exception of Stephen Cole, a/k/a “Lurch.”
Yesterday’s indictment charges four additional members and associates of the Clarksville Mongols with the kidnapping and murder of Stephen Cole and additional crimes. The four additional defendants are:
- William Nelper, aka “Flip,” 49, of Trenton, Kentucky;
- William Boylston, aka “JC,” 27;
- Jason Meyerholz, aka “Country,” 43; and
- Christopher Wilson, 35, all of Clarksville, Tennessee.
The indictment details allegations of violent, criminal activity and drug trafficking in and around the Clarksville, Tennessee area beginning in or about March 2015 and continuing until the return of the indictment.
This indictment alleges that, among other crimes, on November 19, 2017, Boylston, Meyerholz and Wilson kidnapped Stephen Cole, a member of the Clarksville Mongols, at gunpoint, stripped him of his personal property, including his shoes, wallet, and cell phones. Boylston and Meyerholz then transported Cole to Nelper’s residence in Trenton, Kentucky, where they murdered him, disposed of his body and burned evidence of the crimes. All four defendants are charged with the kidnapping of Cole that resulted in his death. Additionally, Boylston, Meyerholz and Nelper are charged with murdering Stephen Cole in aid of racketeering. If convicted, all defendants face a minimum of life in prison and possibly the death penalty.
The indictment also charges Nelper, Boylston and Meyerholz with the racketeering conspiracy and charges Nelper with large-scale drug trafficking and money laundering. The indictment further charges Meyerholz with being a convicted felon in possession of a firearm.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Clarksville Police Department; the Tennessee Bureau of Investigation; and the Kentucky State Police. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the DOJ Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Former Starkey President and Business Associate Found Guilty of Massive Fraud Perpetrated Against Starkey LaboratoriesRead the Press Release
JEROME RUZICKA and JEFFREY TAYLOR were convicted by a federal jury of charges related to stealing more than $15 million from the Eden Prairie-based Starkey Laboratories, Inc. (Starkey) and its principal owner William F. Austin, as well as one of Starkey’s suppliers, Sonion. RUZICKA is the former President of Starkey. U.S. District Court Chief Judge John Tunheim presided over the trial, which lasted nearly six weeks in Minneapolis. Former Starkey Chief Financial Officer (CFO) Scott Nelson and another former Starkey executive Jeff Longtain previously pleaded guilty in connection with this case.
United States Attorney Gregory G. Brooker, announcing the convictions, today, said, “It was pure greed that motivated these defendants. The FBI, IRS, and U.S. Postal Inspection Service meticulously uncovered the depth of the fraud, which lasted nearly a decade, and the trial team successfully presented the complex case to the jury. The jury was able to cut through the complexity and distractions and get to the truth. I want to also want to commend the victims in this case, Bill Austin, the employees of Starkey, and the Sonion Company, for their cooperation with this prosecution.”
“As proven at trial, defendants Jerry Ruzicka and W. Jeff Taylor misused their extensive corporate knowledge and positions of trust over a period of years to steal millions from Starkey Laboratories,” said Acting Special Agent in Charge Robert C. Bone II of the FBI Minneapolis Division. “Corporate fraud such as this not only negatively impacts individual companies and institutions but risks overall stability of the marketplace as fraud losses accumulate. The FBI will continue to work closely with our criminal justice partners to detect corporate fraud and hold those responsible to account for their crimes.”
“IRS Criminal Investigation is committed to investigating individuals who use corporations as personal piggy banks. Corporate fraud impacts many levels of society from investors to the honest, hardworking Americans who pay their tax obligations,” said Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge.
“Today’s verdict reaffirms the critical role the U.S. Postal Inspection Service plays in partnering with our fellow law enforcement partners at the FBI and IRS-CID in protecting the American consumer from these types of fraudulent schemes,” said Craig Goldberg, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service, which includes Minnesota. “Postal Inspectors are committed to ensuring that the nation’s mail stream is not used by criminals to prey upon our citizens,” said Goldberg.
As proven at trial between 2006 and September 2015, RUZICKA, TAYLOR and others schemed to embezzle and misappropriate money and business opportunities belonging to Starkey and Sonion, a major supplier of hearing aid components to Starkey. The defendants deployed various tactics to steal from Starkey, including controlling a complicated web of sham companies and dummy entities, surreptitiously awarding themselves restricted stock in Starkey’s retail affiliate, and embezzling money from the company by causing payments to be made by Starkey for the benefit of the defendants and others.
RUZICKA and TAYLOR controlled a dummy entity, Archer Acoustics. TAYLOR falsely represented to Sonion this entity was a Starkey affiliate, thereby securing Starkey’s discounted pricing on hearing-aid components for Archer Acoustics. RUZICKA and TAYLOR used Archer Acoustics to purchase the discounted products that they later re-sold to other manufacturers to obtain illicit profits. At times, the illicit profits came in the form of fraudulent commissions and rebates. The defendants obtained at least $600,000 in profits, commissions and rebates by fraudulently leveraging Starkey’s purchasing power for their own benefit.
Another facet of this scheme was related to Starkey’s retail affiliate, Northland US, LLC, which Austin created in 2002. He was the sole owner. The purpose of Northland LLC was to acquire and operate retail hearing aid establishments. In 2006, without Austin’s knowledge, RUZICKA surreptitiously transferred Northland LLC’s assets to a new entity they controlled, Northland Hearing Centers, Inc. RUZICKA and former Starkey CFO Scott Nelson forged Austin’s signature to complete the transfer of assets, later awarded themselves restricted stock, and ultimately paid themselves and Jeff Longtain approximately $15 million in exchange for terminating the restricted stock grants.
As proven at trial, in 2014, RUZICKA embezzled $200,000 from Starkey under the guise of “officer’s insurance.” He used those funds to pay his state and federal personal income taxes. RUZICKA also stole a 2011 Jaguar automobile that Starkey purchased for his use at a cost of $119,188.77. Starkey paid the fees, insurance premiums, and other costs associated with the automobile. Nevertheless, in July 2015, RUZICKA transferred ownership of the car from Starkey to himself by signing the title as both representative of the seller and also as the buyer. He did not pay Starkey for the vehicle, nor was it reported as a taxable benefit.
In total, RUZICKA and TAYLOR are alleged to have conspired to steal more than $15 million from Starkey and Sonion.
When some details of the scheme were discovered in September 2015, RUZICKA was terminated by Starkey. TAYLOR was also terminated by Sonion when Sonion became aware of the fraud.
Lawrence Miller and Lawrence Hagan, also charged in this case, were acquitted by the jury. While we had hoped for a different outcome, we respect the jury’s verdict and thank them for their service during this long and complex trial.
This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner, Lola Velazquez-Aguilu, and Surya Saxena are prosecuting the case.
Defendant Information:
JEROME C. RUZICKA, 61
Plymouth, Minn.Convicted:
- Mail fraud, 4 counts
- Wire fraud, 3 counts
- Tax fraud, 1 count
W. JEFFREY TAYLOR, 57
Cologne, Minn.
Convicted:- Mail fraud, 1 counts
- Wire fraud, 2 counts
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Former PA Police Officer Sentenced to One Year in Prison for Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced Marco DeCamillo, age 41, of Reading, Pennsylvania today to 12 months in prison, followed by three years of supervised release, for mail fraud stemming from the sales of misbranded body armor. Judge Blake also ordered DeCamillo to pay $124,000 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Philadelphia and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, De Camillo was a former police officer in West Reading, PA. During his tenure as a police officer, DeCamillo also owned and operated a business called Mad Dragon Tactical (MDT). MDT sold law enforcement tactical gear, including body armor rifle plates, primarily on auction and shopping websites. DeCamillo, through MDT, sold approximately $169,000 worth of body armor that was falsely classified as certified by the National Institute of Justice (NIJ). The NIJ conducts ballistic testing on body armor.
DeCamillo falsely claimed that certain MDT body armor shields would protect against armor piercing rounds, and that certain products were made with the more robust HY80 and A4600 Steel. DeCamillo used his status as a police officer to sell the misbranded body armor rifle plates, understanding that several of his buyers were in law enforcement and/or military or defense and were relying on DeCamillo’s representations regarding the quality and safety of his products.
According to the plea agreement, on December 17, 2015, a defense contractor and NIJ accredited laboratory (“victim lab”) contacted the FBI with a complaint regarding the misuse of one of their ballistic data test sheets by MDT. The FBI verified that DeCamillo, through MDT, had advertised online a set of body armor plates with an altered ballistic test sheet from the victim lab that had been completed in 2013. The original 2013 test sheet provided the results of ballistic testing on a ballistic test shield, not steel body armor plates as advertised by MDT. FBI agents viewed several MDT listings online and observed photographs of altered ballistic test sheets uploaded to each listing.
In January and February 2016, the FBI in Maryland set up controlled purchases of the body armor online from MDT through an undercover identity. All three shipments purchased listed DeCamillo’s home address in West Reading, PA as the return address and were delivered from Pennsylvania to Maryland via US Mail. Inside each package was a hard copy of the altered ballistic test sheet (originating from the victim lab). The HY80 altered ballistic test sheet included an additional hand-written note in the bottom margin stating, “Note-During testing Armor plate stopped (2) .308 Armor piercing Black Tip AP and (3) 7.62x39 Chinese Steel Core Armor Piercing AP rounds.”
Numerous ballistics sheets that had been fraudulently altered with “white out” or other redactions were recovered from DeCamillo’s residence during the execution of a search warrant by HSI.
DeCamillo was interviewed by HSI and the FBI and admitted that he knew that his MDT body armor was not NIJ certified.
Acting United States Attorney Stephen M. Schenning commended HSI and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser who is prosecuting the case.
Former Nurse Assistant Charged with Civil Rights Offense for Striking Residents of the Memphis Veterans Affairs Medical CenterRead the Press Release
Memphis, TN – The Justice Department today announced that a federal grand jury returned an indictment charging Adrian Wiggins, 53, a former Nurse Assistant at the Memphis Veterans Affairs Medical Center, with a civil rights offense. The indictment alleges that on January 8, 2017, Wiggins repeatedly struck an individual identified by the initials W.B., a resident of the Memphis Veterans Affairs Medical Center, and caused bodily injury as a result.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys David Pritchard and Reagan Taylor of the Western District of Tennessee and Trial Attorney Rachel Kincaid of the Justice Department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former Nurse Assistant Charged with Civil Rights Offense for Striking Resident of the Memphis Veterans Affairs Medical CenterRead the Press Release
The Justice Department today announced that a federal grand jury returned an indictment charging Adrian Wiggins, 53, a former Nurse Assistant at the Veterans Affairs Medical Center in Memphis, Tennessee, with a civil rights offense. The indictment alleges that, on Jan. 8, 2017, Wiggins repeatedly struck an individual identified by the initials W.B., a resident of the Memphis Veterans Affairs Medical Center, and caused bodily injury as a result.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation Memphis Field Office, and is being prosecuted by Assistant U.S. Attorneys David Pritchard and Reagan Taylor of the Western District of Tennessee and Trial Attorney Rachel Kincaid of the Justice Department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Former NASCAR driver indicted for attempting to entice a minor to engage in sexual activityRead the Press Release
Orlando, Florida – A grand jury has returned an indictment charging Richard Hoyt Crawford, Jr. (59, Port Orange) with attempting to entice a minor to engage in sexual activity. If convicted, he faces a minimum mandatory penalty of 10 years, up to life, in federal prison. The indictment also notifies Crawford that the United States intends to forfeit an iPhone, which was used in furtherance of the offense.
According to court documents, between February 10 and February 28, 2018, Crawford engaged in email and text communications with an undercover agent acting as the father of a 12-year-old girl. Crawford asked the “father” for a photo of the “child” and negotiated a price to have sex with her. He offered to pay between $50 and $75 for the sexual encounter and asked that the “girl” be nude in the back of the “father’s” car and ready for sexual activity. On February 28, 2018, Crawford traveled from Port Orange to Seminole County to meet the “child,” and was arrested by federal agents.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Liberty Man Sentenced for $2.2 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a former Liberty, Mo., man was sentenced in federal court today for an investment fraud scheme.
Henry Thomas Hammond, 61, of Ponte Vedra Beach, Fla., formerly of Liberty, was sentenced by U.S. District Judge Stephen R. Bough to one year and one day in federal prison without parole. The court also ordered Hammond to pay $2,266,325 in restitution to his victims.
Hammond, who pleaded guilty to conspiracy to commit wire fraud on Jan. 13, 2017, owned, operated or was involved in several businesses, including Longhorn Construction, Inc.; Longhorn Properties, LLC; Longhorn Development Group, Inc.; Longhorn Construction, North American Investment Group, Inc., and others.
Hammond admitted that he participated in a fraudulent investment scheme from June 2009 through July 2010 in which eight victim investors lost a total of $2,266,325. Some of the money invested by victims of the scheme was used by Hammond for his personal benefit.
Co-Conspirator A (who is not identified) promoted himself to Hammond and others as an international financier who could provide financing for substantial building projects. With the housing and economic collapse in 2008, conventional borrowing scaled back, making it difficult for individuals, businesses and developers to obtain financing. Alternative financing programs became more prominent. Some claimed to employ leveraged bank instruments and Collateralized Mortgage Obligations (a mortgage-backed security that contains a pool of mortgages bundled together, broken down into tranches and sold as investments) and European trading platforms. Co-Conspirator A also claimed to have a Strategic Investment Program that was connected with the Maranatha Platform (a trading platform connected to the Maranatha Church that engaged in leveraged investments), one of the major European trading platforms.
This program and others promoted by Co-Conspirator A were nonexistent and Co-Conspirator A operated each of them opaquely and as a fraud scheme.
According to court documents, Hammond was willfully blind to the fact that the investment program was a fraudulent scam. Hammond knew or should have known the material information that he passed on to investors was false and turned a blind eye to warning signs that the investment programs were a fraudulent scam. As a result of these actions, Hammond and his co-conspirators lulled the investors into investing additional money and/or discouraged them from withdrawing from the investment program and seeking a refund of their invested funds.
In July 2010, Hammond told certain investors the Strategic Investment Program would not be paying and offered to roll investor funds into a hotel project; the hotel project was never completed.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Sentenced to Prison for Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan was sentenced today to 100 months in prison for soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney John E. Childress of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois Field Office; Special Inspector General for Afghanistan Reconstruction John F. Sopko; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Mark E. Miller, 49, of Springfield, was sentenced by U.S. District Judge Richard H. Mills of the Central District of Illinois, who also ordered Miller to serve three years of supervised release following his prison sentence and forfeit $180,000 and a Harley-Davidson motorcycle. Miller previously pleaded guilty to a one-count information charging him with seeking and receiving bribes.
As part of his guilty plea, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012, and maintained a residence in Springfield during that time. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. He was the site manager and a contracting officer representative for a number of construction projects in Afghanistan.
On Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and, if so, authorizing progress payments to the company by the USACE, he admitted.
Also as part of his guilty plea, Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited from the owners of the company approximately $280,000 in bribes in return for making things easier for the company on the road project, including making sure the contract moved along and was not terminated. He further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU, with assistance from the U.S. Postal Inspection Service, Fort Worth Division. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Former Employee of House Member Sentenced to Prison Term on Charges in Cyberstalking CaseRead the Press Release
WASHINGTON –A former staff employee of a member of the U.S. House of Representatives was sentenced today to serve a year and a day in prison for the circulation of private, nude images and videos of the member and the member’s spouse, announced U.S. Attorney Jessie K. Liu and Matthew R. Verderosa, Chief of the United States Capitol Police.
Juan R. McCullum, 36, of Washington, D.C., pled guilty in January 2018 to two federal cyber-related charges and two District of Columbia offenses, including conspiracy to disclose sexual images and attempted first-degree unlawful publication of a sexual image. He was sentenced by the Honorable John D. Bates in the U.S. District Court for the District of Columbia.
McCullum’s plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of one year and 361 days of incarceration, with all but one year and a day suspended on the condition that he successfully completes two years of supervised probation. During his probation, McCullum will be required to perform 100 hours of community service. Judge Bates accepted the plea and sentenced McCullum accordingly.
A co-defendant, Dorene Browne-Louis, 45, of Upper Marlboro, Md., pled guilty in January 2018 to one federal cyber charge and the District of Columbia offense of conspiracy to disclose sexual images. She is to be sentenced on April 23, 2018.
According to statements of offense filed as part of the defendants’ guilty pleas, McCullum worked from April 2015 until June 2016 in the House member’s legislative office in Washington, D.C. Browne-Louis worked in the same office from January 2015 until April 2016.
According to the documents, during the course of his employment, McCullum offered in March 2016 to assist the House member in repairing the member’s malfunctioning, password-protected iPhone by taking the device to a local Apple store. The House member provided McCullum with the device solely to have it repaired. The House member later provided the password so that the device could be unlocked by the Apple store solely for the purpose of having the iPhone repaired. McCullum was not given permission to take, copy, or distribute any of the contents of the iPhone. The iPhone contained the private, nude images and videos.
In July 2016, the documents state, after McCullum left the House member’s staff, he engaged in a course of conduct that included creating a Hotmail account and a Facebook social media account, using a fictitious name, to distribute and post the private, nude images and videos. In addition, he made Browne-Louis aware that he was in possession of the images from the iPhone. Further, McCullum encouraged others on social media to redistribute the private, nude images and videos in the member’s congressional district. Browne-Louis assisted by providing McCullum with e-mail addresses and other contact information to distribute the images. Browne-Louis also distributed one of the private, nude images to a person who was working on the campaign of a challenger to the member’s primary election. McCullum and Browne-Louis understood their actions did cause, and were likely to cause, emotional harm to the House member and spouse, as well as negative impact on the member’s re-election, the plea documents state.
Both defendants were indicted in July 2017 following an investigation by the United States Capitol Police.
In announcing the sentence, U.S. Attorney Liu and Chief Verderosa commended the work of those who investigated the case from the United States Capitol Police. They also acknowledged the efforts of those who assisted with the case at the U.S. Attorney’s Office, including former Assistant U.S. Attorney Natalia Medina, Criminal Investigator John Marsh, Paralegal Specialists Bianca Evans, Diane Brashears, and Matthew Ruggiero, Victim/Witness Advocate Yvonne Bryant, and Litigation Technology Specialists Leif Hickling, Thomas Royal, and Paul Howell. Finally, they commended the work of Assistant U.S. Attorneys Tejpal S. Chawla, Youli Lee, and Veronica Jennings, who investigated and prosecuted the case.
Former Duson Housing Authority director pleads guilty to stealing more than $110,000Read the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced today that the former Duson Housing Authority director pleaded guilty to stealing more than $110,000 in funds.
Patsy Clark, 60, of Duson, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna on one count of federal program theft. The plea will become final after it is approved by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, Clark was the executive director of the Duson Housing Authority from 1990 to November 2014. A routine financial audit conducted in 2014 found that Clark stole $93,270 in tenant payments from 2012 to 2014. Additionally, Clark made $11,780.33 in personal purchases using the Housing Authority’s credit card. She also deposited $4,954 in tenant security deposit refund checks and rent payments into her personal bank account. Clark caused a total of $110,113.33 in losses to the United States.
Clark faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of July 13, 2018.
The U.S. Department of Housing and Urban Development-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Former Controller Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Jason Arnold pled guilty to bank fraud and money laundering charges related to a scheme to defraud a financial institution and the company he worked for as a controller.
According to court documents, Arnold created a fictitious company that had the same name as his employer. He then opened a fraudulent bank account for the fictitious company. Between October 2009 and November 2017, Arnold deposited into the fraudulent bank account 53 checks totaling more than $7.3 million, all of which was owing to his employer. Arnold then used the proceeds from the scheme to defraud for his personal gain, including to purchase artwork and wine.
Arnold, 38, of Clayton, pled guilty to one felony count of bank fraud and two felony counts of money laundering before U.S. District Judge Catherin D. Perry. Sentencing has been set for June 14, 2018.
He now faces a penalty range of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Florida Man Sentenced to Four Years in Prison for Laundering Proceeds of Bank FraudRead the Press Release
OKLAHOMA CITY – Lyle Livesay, of Delray Beach, Florida, has been sentenced to 48 months in federal prison for laundering the proceeds of fraud against banks in Oklahoma and elsewhere, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to an indictment filed on May 2, 2017, Livesay owned and operated Beta Capital Group, LLC, of Boca Raton, Florida. In the fall of 2015, a resident of Yukon, Oklahoma, signed a consulting agreement with Beta Capital to obtain funding from various financial institutions. Under this agreement, Beta Capital would help the Yukon resident obtain bank loans in exchange for 30% of the loan proceeds, which the resident and another conspirator planned to use as financing to open a used car business.
The indictment alleged that to secure these loans, Livesay, working with others, submitted false loan applications in October 2015 to Pentagon Federal Credit Union, Navy Federal Credit Union, Allegiance Credit Union, MidFirst Bank, Oklahoma Employees Credit Union, Alliant Credit Union, and USAA Federal Savings Bank, all of which were federally insured. In particular, he misrepresented the purpose of the loans by claiming the Yukon resident would use the money to purchase cars from True Cars Express, a purported luxury car dealership associated with Livesay in Weston, Florida. To support these fraudulent applications, Livesay created and provided his conspirators with fake pay stubs that inflated the Yukon resident’s income, as well as purchase agreements from True Cars Express and certificates of titles for the vehicles that would supposedly be purchased with loan proceeds. Livesay and others also failed to disclose the existence of previous and pending loans on the applications they submitted. Livesay was involved in applying for more than half a million dollars in fraudulent loans. The indictment charged him with two counts of laundering portions of the loan proceeds through an account at TD Bank in the name of True Cars Express.
According to the indictment, when Livesay learned in early 2016 that the FBI was investigating, he told the Yukon resident to lie about the nature of the loans and not to disclose information requested in a federal subpoena.
Livesay was arrested in Florida in June 2017 and has been detained in the custody of the U.S. Marshals Service since then. On August 2, 2017, he pleaded guilty to laundering the proceeds of bank fraud. In particular, he admitted that on October 30, 2015, he transferred $87,000 from his True Cars Express account to an account in the name of Beta Capital, after that money had been obtained from Navy Federal Credit Union through fraud.
On March 7, 2018, U.S. District Judge Timothy D. DeGiusti sentenced Livesay to 48 months in prison, to be followed by three years of supervised release. The court also ordered him to pay a total of $415,000 in restitution to Pentagon Federal Credit Union, USAA Federal Savings Bank, Navy Federal Credit Union, Allegiance Credit Union, and MidFirst Bank. The court found that Livesay’s criminal conduct involved $555,000 in bank-fraud proceeds and that Livesay employed sophisticated means in fabricating loan documentation and moving funds between bank accounts he controlled.
This case is the result of an investigation by the FBI. Assistant U.S. Attorney Julia E. Barry prosecuted the case.
Reference is made to public filings for further information.
Florida Man Indicted for International Email Impersonation and Fraud ScamRead the Press Release
BOSTON – A Florida man was indicted yesterday in federal court in Boston in connection with a scam in which he and co-conspirators defrauded victims by pretending to be employees of the Securities and Exchange Commission.
Frank Gregory Cedeno, 27, of Ocoee, Fla., was indicted for conspiracy to commit wire fraud and conspiracy to commit money laundering. In January 2018, Cedeno was charged by criminal complaint and arrested.
The indictment alleges that, from at least April 2016 through November 2017, Cedeno conspired with others to defraud victims by pretending to be employees of the Securities and Exchange Commission (SEC). Under that guise, members of the conspiracy allegedly demanded money from victims, directing them to send it to members of the conspiracy, including Cedeno. The conspirators who received the money generally withdrew it from bank accounts quickly, then forwarded much of it to individuals in the Dominican Republic. In one common version of the scam, victims received e-mails that used official-seeming documentation and the SEC seal to induce the victim to pay a fee in order to receive a portion of a legal settlement. In another version, victims received e-mails and official-seeming documents labeling the victim a defendant in a civil lawsuit, in which the victim owed tens of thousands of dollars in supposed disgorgement, penalties, and fees. The documents gave the victim a choice of either appearing in court to contest the lawsuit or paying a smaller fee.
Co-conspirator Leonel Alexis Valerio Santana, 28, of Boston, was previous charged by criminal complaint in connection with the scheme and remains detained pending trial. That complaint alleged that, between June 2015 and June 2017, there were at least 95 victims targeted by the scam, with fraudulent solicitations exceeding $1.3 million and actual losses of more than $235,000.
The charge of conspiracy to commit wire fraud provides for a sentence no greater than 20 years in prison, three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss in the offense, and restitution. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Carl. W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission’s Office of Inspector General; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Criminal Division is prosecuting the case.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon from Raton Sentenced for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Mark William Elliot, 46, of Raton, N.M., was sentenced today in federal court in Albuquerque, N.M., to 51 months in prison for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Elliot will be on supervised release for three years after completing his prison sentence.
Elliot was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition and possession of methamphetamine with intent to distribute on March 25, 2016, in Bernalillo County, N.M. According to the indictment, Elliot was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving or transferring stolen vehicles, tampering with evidence, forgery, and shooting at an occupied building.
According to court documents, on March 25, 2016, Albuquerque Police Department (APD) officers found Elliot asleep on the sidewalk next to his motorcycle, which was illegally parked in the road next to a stop sign. After waking Elliot, the officers observed a bulge in Elliot’s right front pocket. When the officers realized there was a firearm in Elliot’s pocket, the officers arrested Elliot as he attempted to flee. APD officers recovered a loaded firearm and ammunition, approximately 18 grams of methamphetamine, and drug paraphernalia from Elliot’s jacket during a search incident to his arrest.
On Sept. 28, 2017, Elliot pled guilty to Count 1 of the indictment charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Elliot admitted possessing a loaded firearm in his right front pocket during an interaction with APD officers on March 25, 2016. Elliot acknowledged that he was prohibited from possessing firearms or ammunition on March 25, 2016, because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Federal Prosecutors Charge Huntsville Man with Material Support to Foreign Terrorist OrganizationRead the Press Release
BIRMINGHAM – Earlier this week, federal prosecutors filed a terrorism charge against a Huntsville man who has acknowledged that he bought bomb-building ingredients last year, stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal, and attempted to form a cell to conduct violent acts within the United States.
U.S. Attorney Jay E. Town, Assistant Attorney General for National Security John C. Demers, and FBI Special Agent in Charge Johnnie Sharp Jr. announced the charge and today’s guilty plea.
The U.S. Attorney’s Office filed a one-count information charging AZIZ IHAB SAYYED, 23, with attempting to provide material support or resources to a foreign terrorist organization. According to the charge and an accompanying plea agreement, Sayyed attempted to provide services and personnel (himself) to ISIS – the Islamic State of Iraq and al-Sham – knowing that ISIS is a designated foreign terrorist organization. Sayyed pled guilty to the charge before U.S. District Judge Abdul Kallon. Sayyed’s plea agreement stipulates a 15-year prison sentence. The judge scheduled Sayyed’s sentencing hearing for June 20.
“The successful resolution of this case can be entirely attributed to the robust cooperation between local, state and federal members of law enforcement,” Town said. “The Madison County District Attorney’s Office, HPD, UAHPD, and especially the FBI played key, complimentary roles in this investigation and all contributed significantly in bringing Aziz Sayyed to justice. The National Security Division of the Department of Justice also played an important role in the investigation and prosecution of Sayyed. Moreover, Sayyed was brought to our attention because citizens saw something, so they said something. If we are to keep our cities safe, no matter the type of suspicious activity, our community must play an active role,” Town said.
“I want to commend the work of the FBI’s Joint Terrorism Task Force, the Huntsville Police Department, the Madison County District Attorney’s Office, and our many other law enforcement partners that worked to bring Mr. Sayyed to justice,” Sharp said. “The citizens of north Alabama can rest assured that the FBI will continue to work with our partners and the community to gather, share, and act upon threat information as it comes to our attention.”
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts, according to the court documents. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material, then he purchased the necessary ingredients for the explosive, and professed his aspiration to use TATP in an explosive belt and/or a car bomb, according to his plea agreement.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. In fact, the person was an undercover employee (UCE) of the FBI. Sayyed and the UCE discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered to personally carry out attacks on behalf of ISIS.
The FBI investigated the case in conjunction with the Huntsville Police Department, Madison County District Attorney’s Office, Madison County Sheriff's Office, U.S. Army 902 MI Group, Redstone Arsenal’s Garrison Command, University of Alabama at Huntsville Police Department, Alabama Law Enforcement Agency, U.S. Immigration and Customs Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Henry Cornelius and Davis Barlow are prosecuting the case with the assistance of the National Security Division’s Counterterrorism Section.
Federal Probe in Kansas Ties Drug Traffickers to International Money Laundering SchemeRead the Press Release
KANSAS CITY, KAN. – A federal investigation in Kansas has tied drug traffickers to an international money laundering scheme, U.S. Attorney Stephen McAllister announced today.
In San Diego today, federal prosecutors announced charges against 40 alleged members of an international money-laundering scheme that laundered tens of millions of dollars in drug money from drug dealers in the United States to suppliers in Mexico. Two of those defendants in the California case already were indicted by a grand jury in Kansas after being targets of a federal investigation here. Their case is pending in U.S. District Court in Kansas City, Kan.
“Assistant U.S. Attorney Tris Hunt and his team of investigators in Kansas has been working on this for two years,” McAllister said.
The indictment in California charges Juan Duarte-Tello, 44, Kansas City, Mo., and Diana Aurora Holguin-Gallegos, 30, Kansas City, Mo., with working as money couriers who transported large amounts of cash generated from drug trafficking. The California indictment is part of a nationwide takedown stemming from a multi-year investigation led by the FBI San Diego Cross Border Violence Task Force, IRS Criminal Investigation, and the U.S. Attorney’s Office for the Southern District of California.
In addition to the indictments unsealed today in San Diego, dozens of other defendants have been charged across the United States with crimes ranging from drug distribution to money laundering stemming from this investigation, including defendants in Kansas, Ohio, Kentucky and Washington.
According to the indictments and other publicly filed court documents, Jose Robert Lopez-Albarran, a significant money broker for a Mexican based international money laundering organization along with other members of the organization, allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. As a result of the investigation, law enforcement seized more than $6 million in United States currency.
In the Kansas case, Duarte-Tello and Holguin-Gallegos are awaiting trial on charges of conspiracy to distribute methamphetamine and other counts including renting a residences in Kansas City, Kan. and Kansas City, Mo. for the purpose of storing and distributing methamphetamine. The Kansas investigation resulted in seizures of more than 44 kilograms of methamphetamine, three kilograms of cocaine and more than $100,000 in cash.
The Drug Enforcement Administration and FBI investigated the case in Kansas. Assistant U.S. Attorney Tris Hunt is prosecuting.
Federal Jury Convicts Dunn Man of Cocaine and Crack Conspiracy and Money LaunderingRead the Press Release
ELIZABETH CITY – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that, ANTOINE DEWAYNE MYLES a/k/a “Twan”, 42 of Dunn, North Carolina, was convicted after a three-day jury trial before United States District Judge Terrance W. Boyle. The jury found MYLES guilty of Conspiracy to Distribute and Possess with the Intent to Distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base (crack), Money Laundering Conspiracy, and Possession with the Intent to Distribute cocaine and cocaine base (crack).
The evidence at trial showed that from 2011 until his arrest on June 5, 2015, MYLES and his brother Lemont Webb, were leaders in a Drug Trafficking Organization (DTO) responsible for the distribution of kilogram quantities of crack cocaine in Godwin, North Carolina. The evidence showed that MYLES and Webb hired other people to work shifts selling crack cocaine from a trailer in Godwin, NC, 24 hours a day, 7 days per week. In October 2014, the Cumberland County Sheriff’s Office obtained an injunction against the trailer used to distribute the crack cocaine, but MYLES and Webb continued their operation, selling crack cocaine from a Winnebago across the street from the original trailer.
MYLES is scheduled to be sentenced the week of June 11, 2018.
Previously, 17 other defendants have been convicted of various drug and money laundering charges arising from this investigation.
The investigation of this case was conducted by the Drug Enforcement Administration (DEA), the Cumberland County Sheriff’s Office, the Internal Revenue Service-Criminal Investigation (IRS-CI) and the United States Marshal’s Service. Assistant United States Attorney Lawrence Cameron represented the government in this case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—United States Attorney R. Trent Shores announced today the results of the March 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Scott Frederick Arterbury. Possession of Child Pornography. Arterbury, 31, of Broken Arrow, is charged with possessing graphic image files and videos of minors engaging in sexually explicit conduct. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Broken Arrow Police Department are the investigative agencies.
David Octavio Calderon-Carranza. Reentry of Removed Alien. Calderon-Carranza, 29, of Kyle, Texas, is charged with having returned to the United States unlawfully after being deported in August 2010 from San Antonio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Javier Castorena-Dimas. Reentry of Removed Alien. Castorena-Dimas, 37, of Tulsa, is charged with having returned to the United States unlawfully after being deported in January 2012 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Walter Chavez-Ramirez. Reentry of Removed Alien. Chavez-Ramirez, 41, of Claremore, is charged with having returned to the United States unlawfully after being deported in February 2010 from Brownsville, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Joshua Gilchrist. Bank Robbery Using a Dangerous Weapon. Gilchrist, 35, residence unknown, is charged with robbing the Bank of Oklahoma of money and, in doing so, assaulting and putting in jeopardy the lives of bank employees by pointing at them a BB gun resembling a firearm. If convicted, he faces a maximum penalty of 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation, the Tulsa Police Department, and the Joplin, Missouri, Police Department are the investigative agencies.
Adrian Robert Jones. Felon in Possession of Firearms and Ammunition, and Possession of Marijuana With Intent to Distribute. Jones, 26, of Tulsa, is charged with possessing firearms and ammunition after prior felony convictions and with possessing marijuana with intent to distribute. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine for the felon in possession of firearms and ammunition charge, and a maximum penalty of five years in prison and a $250,000 fine for the possession of marijuana with intent to distribute charge. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tulsa Police Department are the investigative agencies.
Juan Pablo Martinez-Martinez. Reentry of Removed Alien. Martinez-Martinez, 36, of Tulsa, is charged with having returned to the United States unlawfully after being deported in June 2013 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Christopher Parrett. Distribution of Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Parrett. 41, of Miami, Oklahoma, is charged with possessing a firearm in furtherance of the distribution of methamphetamine. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine for the distribution of methamphetamine charge, and a statutory mandatory minimum five years in prison or a maximum penalty of life in prison and a $250,000 fine for the possession of a firearm in furtherance of a drug trafficking crime charge. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Miami Police Department, and the Ottawa County District Attorney’s Office are the investigative agencies.
Pedro Rojo-Ramirez. Reentry of Removed Alien. Rojo-Ramirez, 53, of Tulsa, is charged with having returned to the United States unlawfully after being deported in April 2005 from Nogales, Arizona. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa County Sheriff’s Office are the investigative agencies.
Duval County High School Teacher Arrested and Charged with Distribution of Child PornographyRead the Press Release
Jacksonville, Florida – Jeremy Scott Clark (44, Ponte Vedra) was arrested today and charged by federal criminal complaint with distributing child pornography. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential lifetime of supervision. Clark has been detained pending a hearing scheduled for March 13, 2018, in Jacksonville.
According to the criminal complaint, on February 22, 2018, an individual using the screen name “LLCoolJack1973” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children. This message had been posted by an undercover FBI agent. The user (LLCoolJack1973), later identified as Jeremy Scott Clark, began an online conversation with the undercover FBI agent. After some conversation about sexual activity with children, the user sent an image of an adult male on a bed displaying his penis, and later sent a link to the FBI agent that contained images of prepubescent children engaged in sexually explicit conduct. Further investigation revealed that the internet protocol address used by “LLCoolJack1973” traced back to Clark’s residence in Ponte Vedra, and that Clark was a teacher at First Coast High School in Jacksonville.
On March 8, 2018, FBI agents and other law enforcement officers executed a federal search warrant at Clark’s residence and seized several items of computer media and at least one Apple iPhone. Through interviews, agents were able to confirm that the picture of the naked male sent to the undercover FBI agent depicted Clark on his bed, in a bedroom at his residence. Clark was placed under arrest.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and the St. Johns County Sheriff’s Office. Anyone with information regarding this investigation should contact the FBI Jacksonville office at (904) 248-7000. This case is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Durant Man Pleads Guilty to Conspiring to Sell Stolen FirearmsRead the Press Release
Jackson, Miss. – Darnell Branch, 33, of Durant, pled guilty yesterday before U.S. District Judge Carlton W. Reeves, to conspiring to sell stolen firearms, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Around 2:30 a.m. on July 28, 2014, Estelle Cook and co-defendant Corey Hughes tore a hole in the side of Central Mississippi Firearms, a gun store in Kosciusko, Mississippi, and stole 41 guns. Darnell Branch, Corey Hughes, Estelle Cook, and others sold at least a dozen of the stolen guns in Durant and Lexington, Mississippi. Branch participated in the sale of at least nine of the stolen guns to six different buyers. Branch also bought one of the stolen guns.
On October 3, 2017, a federal grand jury indicted Hughes, Cook, Branch, and Frederick Russell for their unlawful conspiracy to possess and sell stolen firearms. On the same day, a federal grand jury indicted Jermaine Griffin for receiving and possessing one of the stolen guns.
At today’s hearing, Branch became the fifth defendant to plead guilty to his role in the conspiracy. He will be sentenced by Judge Reeves on June 11, 2018, and faces a maximum penalty of five years in prison and a $250,000 fine.
Co-defendant Frederick Russell pled guilty on January 10, 2018, to conspiracy to possess and sell stolen firearms. He will be sentenced by Judge Reeves on May 30, 2018, and faces a maximum penalty of five years in prison and a $250,000 fine.
Co-defendant Estelle Cook pled guilty on February 8, 2018, to being a felon in possession of a firearm. He will be sentenced by Judge Reeves on May 15, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine.
Co-defendant Corey Hughes pled guilty on February 13, 2018, to being a felon in possession of a firearm. He will be sentenced by Judge Reeves on June 11, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine.
Jermaine Griffin pled guilty on January 18, 2018, to possession of a stolen firearm. He will be sentenced by Judge Tom S. Lee on May 31, 2018, and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Jennifer Case.
Dunkirk Woman Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that a Minerva Maestre, 49, of Dunkirk, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroder to possessing with intent to distribute 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that on April 28, 2017, Dunkirk Police, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration executed a search warrant at 51 E. Second Street in Dunkirk, which is the residence of the defendant. During the search, officers seized 60 grams of crack cocaine, 42 grams of cocaine, plastic baggies, and $171,962 in cash.
The plea is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Dunkirk Police Department, under the direction of Chief David Ortolano.
Sentencing will be scheduled at a later date before Senior U.S. District Judge William M. Skretny.
Dominican Republic Man Sentenced to 24 Months for Possession of a Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – Cristian Lopez-Moncion, 36, of the Dominican Republic, was sentenced today for possession of a firearm by an illegal alien, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Lopez-Moncion to 24 months in prison, followed by three years of supervised release, and ordered him to pay a $100 special assessment.
On June 14, 2017, Lopez-Moncion pleaded guilty to possession of a firearm by an illegal alien. According to documents filed in court, on August 6, 2016, the Virgin Islands Police Department (VIPD) responded to a report of shots fired on Main Street in St. Thomas. The investigation revealed that Lopez-Moncion was in possession of a Glock 9 mm firearm. The firearm was recovered and analyzed. A forensic examination determined that the firearm had been modified to operate in a fully automatic capacity. Lopez-Moncion is not a legal resident of the United States and is not licensed to possess a firearm in the Virgin Islands.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the VIPD. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Department of Justice Announces Launch of National FOIA PortalRead the Press Release
Today the Department of Justice launched its new redesign of FOIA.gov and the first iteration of the National FOIA Portal, a government-wide FOIA request portal that allows the public to submit a Freedom of Information Act (FOIA) request to any agency from a single place.
The FOIA Improvement Act of 2016 directed the Office of Management and Budget and the Department of Justice to build a “consolidated online request portal that allows a member of the public to submit a request for records . . . to any agency from a single website.” The new portal was developed with a user-centric focus relying heavily on both public and agency feedback throughout the entire process.
“The Department is very proud of its unique role in advancing government wide FOIA administration and we are excited to provide this new resource to the public which will allow citizens to be even better informed about their government and the FOIA,” said Melanie Ann Pustay, Director of the Office of Information Policy. “With over one hundred agencies subject to the FOIA and hundreds of thousands of requests made each year, we designed the National FOIA Portal to improve FOIA for both agencies and the public. This is just the first iteration of the Portal and we welcome feedback from users as we continue to build on this effort. ”
The new National FOIA portal provides customized forms for each agency to help requesters understand and submit requests more easily. The site will also provide insight into the FOIA process including what to do before submitting a FOIA request, how to submit a request, and what happens after submitting a request. The site also centralizes and provides a wealth of agency specific resources that are helpful to requesters, such as a description of each agency and links to their FOIA website, FOIA Reference Guide, FOIA regulations, and the FOIA Library.
“The National FOIA portal exemplifies our efforts to consolidate common services with the scalability and security available in a modern cloud-based platform and allows us to rapidly deliver capabilities to improve the user experience”, said Joseph Klimavicz, Department of Justice Chief Information Officer. “The Department is committed to continuously improving and modernizing the way citizens interact with our services.”
The launch of the National FOIA portal was made possible with the support of the Office of Management and Budget and by efforts led by the Department of Justice’s Office of Information Policy and Chief Information Office in partnership with the General Services Administration’s (GSA) 18F team.
“18F is proud to have worked with DOJ on researching, designing, and building the new National FOIA portal,” said GSA’s 18F Acting Executive Director Rebecca Piazza. “They’ve been excellent partners in ensuring this valuable tool meets the needs of agency FOIA offices and the public.”
Denham Springs Man Sentenced to 25 Years in Federal Prison for Child Pornography ConvictionsRead the Press Release
United States Attorney Brandon J. Fremin announced that, this morning, Chief United States District Court Judge Brian A. Jackson sentenced MICHAEL STANLEY CLARK, age 32, of Denham Springs, Louisiana, to 25 years in federal prison following his conviction for production, distribution, transportation, and possession of child pornography. The Court also ordered CLARK to make restitution payments to his victims in the amount of $9,000 and pay a $500 special assessment. CLARK will also be required to serve a 10-year term of supervised release upon his release from federal prison and to register as a sex offender.
CLARK’s prosecution resulted from two separate undercover investigations – one handled by the Federal Bureau of Investigation (FBI) and another by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), and the Cyber Crime Unit of the Louisiana Attorney General’s Office.
On October 15, 2016, CLARK distributed images and videos of minors and prepubescent minors engaged in various sex acts to an undercover HSI agent. Two days later, on October 17, 2016, CLARK distributed additional images of child pornography, including a series of images he took of his minor child, to an FBI undercover agent.
After law enforcement agents executed a search warrant at his residence on October 20, 2016, CLARK admitted that he distributed child pornography images to other individuals whom he met online, including images he produced of his minor child. In total, CLARK possessed 298 still images and 333 videos of child pornography on various electronic devices and media.
The forensic review showed that CLARK’s online child sexual exploitation activity ranged from 2009 through October 2016. In addition, through cyber tip reports made by service providers to the National Center for Missing and Exploited Children (NCMEC), law enforcement learned that CLARK had uploaded child pornography images and videos to online photo management and content sharing services.
U.S. Attorney Fremin stated, “This investigation and prosecution demonstrates the commitment of the entire law enforcement community – federal, state, and local – to work together to protect our children from sexual exploitation. Today’s sentence not only punishes CLARK, it also serves as a stark reminder of the severe potential consequences that await others inclined to engage in similar conduct. I am grateful for the excellent work of all those involved in bringing this defendant to justice, including our strong partners at FBI, HSI, and the Louisiana Attorney General’s Office, as well as the Livingston Parish Sheriff’s Office and District Attorney’s Office. I look forward to continuing to work together to aggressively pursue child predators, such as CLARK.”
Jeff Landry, Attorney General for the State of Louisiana, stated, “My office works closely with our law enforcement partners to ensure criminals are held accountable for their actions. Partnership is an important part of the process and we are glad our investigation led to a strong conviction by the U.S. Attorney’s Office. I commend Mr. Fremin and his team for seeing this through.”
Eric Rommal, Special Agent-in-Charge of the New Orleans Division of the FBI, stated, “The FBI is dedicated to protecting our children and community from predators. We will continue to work closely with our local, state and federal partners to identify, investigate and arrest those who pose a threat to children. This investigation, prosecution and sentence demonstrates that commitment and coordination.”
“HSI will continue to aggressively investigate and arrest the people who seek to prey on the most vulnerable in our society,” said Thomas M. Annello, Acting Special Agent-in-Charge of the New Orleans Division of HSI. “Thanks to our efforts with HSI Portland, Maine and the Louisiana Attorney General’s Office we’ve ensured Clark will be held accountable for his crimes.”
This matter was investigated by HSI, FBI, and the Cyber Crime Unit of the Criminal Division of the Louisiana Attorney General’s Office, with assistance from the Livingston Parish Sheriff’s Office and the Livingston Parish District Attorney’s Office. Assistant United States Attorney Cam T. Le prosecuted this case.
These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety education.
Defendants Indicted for Murder and Extortion of Queens Business OwnerRead the Press Release
A four-count indictment was unsealed earlier today in federal court in Brooklyn, charging Ppassim Elder, Dwayne Ling and Frederick McCoy with the October 23, 2017 murder of a Queens business owner in front of his son, as well as the extortion of that father and son. A fourth defendant, Mahdi Abdel-Rahim, was also indicted for his role in the extortion. He was arrested on March 1, 2018 and released on a secured bond. Ling was arrested on March 1, 2018, and ordered detained. Elder was arrested in Cleveland, Ohio on March 2, 2018, was presented in that district on March 5, 2018, and is being transferred in custody to the Eastern District of New York. McCoy was arrested yesterday and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Robert M. Levy.
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 charges.
“As alleged in the court filings, defendant Ppassim Elder exploited a business owner’s need for a loan and sent his enforcers to try to collect it, ultimately leading to a senseless and tragic murder,” stated United States Attorney Donoghue. “No son should ever watch his father be killed. This Office and our law enforcement partners are committed to protecting businesses in our community from violent criminals.” Mr. Donoghue also expressed his appreciation to the Queens County District Attorney’s Office for their assistance during the investigation.
“When criminals loan money to business owners, they know they’re never going to get repaid, it’s why they loan out the money. Once they have the victim on the hook, they use threats, intimidation and violence to harass their victims. In this case, the victim died allegedly at the hands of his debtors,” stated FBI Assistant Director-in-Charge Sweeney. “No one should have to pay criminals with their life, and the FBI New York Joint Organized Crime Task Force won’t let these violent offenders get away with it.”
As alleged in the indictment and detailed in court filings, on the morning of October 23, 2017, three perpetrators wearing blazers—Ling, McCoy and another coconspirator—walked into Garden Valley Distributors, a family-owned grocery distribution center located in Ozone Park. The perpetrators said that “Sam” or “Big Sam” had sent them to collect his money. Elder, who was known as “Sam” and “Big Sam,” had given the murder victim’s son a loan, which the son used to support the business. By March 2017, Elder demanded full repayment of the loan, but the son could not afford to repay it because much of the money had been used to purchase merchandise for Garden Valley.
In response, Elder began a campaign of intimidation against the son and his family. Among other things, Elder paid the defendant Mahdi Abdel-Rahim to throw a rock through a window of the home of the son and his father. When the rock did not lead to repayment of the loan, Elder sent Ling, McCoy and a third coconspirator into Garden Valley, where the perpetrators brandished a firearm, pistol-whipped the son across his head, and fatally shot the father in the face.
All four defendants are charged with extortionate collection of credit conspiracy and extortionate collection of credit. Elder, Ling and McCoy are also charged with brandishing a firearm in furtherance of those crimes of violence and causing the death of another through use of a firearm. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the murder charge or firearm charge, Elder, McCoy and Ling face a maximum sentence of life imprisonment. If convicted of the extortion charge, Abdel-Rahim faces a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor and Keith D. Edelman are in charge of the prosecution.
The Defendants:
PPASSIM ELDER (also known as “Sam” and “Big Sam”)
Age: 38
Staten Island, New YorkMAHDI ABDEL-RAHIM
Age: 24
Brooklyn, New YorkDWAYNE LING
Age: 55
Brooklyn, New YorkFREDERICK MCCOY
Age: 52
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-92 (WFK)
Darlington Man Pleads Guilty to Robbery and Gun Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Kenneth Eric Coe, Jr. a/k/a “Junior,” age 23, of Darlington, SC, pled guilty in federal court in Florence, to aiding and abetting Robbery of United States Government Property, a violation of Title 18, United States Code, Sections 2114 and 2, and aiding and abetting the Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence, a violation of Title 18, United States Code, Sections 924(c) and 2. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on March 29, 2017, Coe along with another individual robbed a person having lawful charge, custody, and control of $400.00 belonging to the Bureau of Alcohol, Tobacco, Firearms and Explosives by use of a firearm. During the hearing, the agent presented evidence that during the robbery, a firearm was pointed at the victim in order to force the victim to give up the cash.
Under Coe’s plea agreement, he faces a mandatory minimum of seven years imprisonment with a maximum penalty of life in prison.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Darlington County Sheriff’s Office, and the Hartsville Police Department. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell and William Lewis of the Columbia office handled the case.
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Colusa County Man Fined for Two Violations of the Migratory Bird Treaty ActRead the Press Release
SACRAMENTO, Calif. — Ronald C. Simmons, 76, of Colusa, pleaded guilty on Tuesday to two misdemeanor counts: unlawful baiting and unlawful taking of a migratory game bird, in violation of the Migratory Bird Treaty Act. He was immediately sentenced by U.S. Magistrate Judge Edmund F. Brennan and ordered to pay a $7,500 fine.
According to court documents, on October 21, 2017, opening day of waterfowl season in the Sacramento Valley, Simmons and his invited guests shot and killed 16 wood ducks over a baited cornfield at Butte Creek Farms. Simmons, who managed a field on the Colusa County property, had previously rolled unharvested cornstalks and intentionally spread corn kernels onto the field as bait for wood ducks, a migratory bird, for the purpose of ensuring a successful waterfowl hunting season. Exposed and scattered corn kernels can lure and attract migratory birds. According to the Migratory Bird Treaty Act, it is unlawful to hunt migratory birds using bait.
This case was the product of an investigation by the U.S. Fish and Wildlife Service. Special Assistant U.S. Attorney Erica L. Anderson prosecuted the case.
Colorado Man Sentenced to 45 Years in Prison for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Colorado man was sentenced in federal court today for the sexual exploitation of a 13-year-old Springfield, Mo., victim.
Dominic Keith Pearson, 26, of Silverthorne, Colo., was sentenced by U.S. District Judge Roseann Ketchmark to 45 years in federal prison without parole.
On Oct. 11, 2017, Pearson pleaded guilty to coercion and enticement of a minor, sexual exploitation of a minor, transportation of a minor with intent to engage in illicit sexual activity, and travel with the intent to engage in illicit sexual activity.
According to court documents, the 13-year-old child victim – identified in court documents as “Jane Doe” – was reported missing from her home in Springfield on Jan. 8, 2017. Investigators found a series of messages between Pearson and Jane Doe on a cell phone, indicating that Pearson was traveling to meet Jane Doe.
On Jan. 10, 2017, Pearson and Jane Doe were located in a truckers lounge at Petro Truck Stop off Interstate 70 near Oak Grove, Mo. Both Pearson and Jane Doe had luggage with them in the lounge. Pearson told investigators that he was taking Jane Doe to Denver, Colo.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Springfield, Mo., Police Department, the FBI, the Southwest Missouri Cyber Crimes Task Force and the Oak Grove, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clark County Man Pleads Guilty to Fraud Charges for Scheme Involving False Clean Energy CompanyRead the Press Release
PORTLAND, Ore. – Isaac Benjamin Voss, 41, of Clark County, Washington, pleaded guilty today to one count of wire fraud for defrauding domestic and foreign investors who believed they were investing in a viable clean energy company.
"Voss robbed victims of investment dollars by preying on their hopes of becoming legal permanent residents in the U.S.," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I implore both domestic and international investors to think twice before supporting schemes that promise immigration shortcuts."
According to court documents, in 2007, Voss made a deal with a Canadian scientist and entrepreneur to raise funds to support the development of a technology that would derive electricity and petroleum-equivalent fuels from any carbon bearing material. Over a four-year period beginning in 2011, Voss used his company, XFuels, as a vehicle for soliciting investments from individuals abroad and in Oregon, California, and Washington state.
Voss defrauded investors using elaborate marketing materials, including flyers, brochures and a website, containing false information about his company, the technology and the investment opportunity. He claimed that XFuels owned a commercial refinery in Canada and that another was being constructed in Washington state. The plants were said to be using the technology to produce "clean fuel, clean chemicals, [and] clean power from garbage, biomass, and plastic."
To reduce the perceived risk of the venture, Voss told investors that more than 90 percent of the project’s funding would come from other institutional and private lenders and that he had commissioned an independent, third-party feasibility study that guaranteed the project’s commercial viability. In reality, XFuels had not constructed any facilities and the only capital raised was from other individual investors in the U.S. and abroad. Moreover, the feasibility study relied solely on information provided by Voss himself and did not employ any commercially accepted methods to validate the technology.
On numerous occasions, Voss hosted foreign investment seminars during which he told investors that supporting XFuels, with a minimum $500,000 investment, would qualify them for American Employment-Based Fifth Category "EB-5" visas. Voss also falsely claimed he would hold foreign investment funds in escrow until the U.S. government had approved investors’ visa applications. The XFuels project did not qualify for the EB-5 program and all investors’ visa applications were denied, as a result.
Voss faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 14, 2018 before U.S. District Court Judge Anna J. Brown.
The U.S. Postal Inspection Service, IRS and the Department of Homeland Security investigated this case. It is being prosecuted by Michelle H. Kerin and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
California Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
U.S. Attorney Duane A. Evans announced that ROT VAN NGUYEN, a/k/a “Minh Dung,” a/k/a “Minh Dung Duong,” age 56, of San Jose, California, pleaded guilty today before U.S. District Court Judge Carl J. Barbier to one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
According to court documents, NGUYEN was convicted in California in 2009 for lewd or lascivious acts on a child under 14 years of age, a violation of California Penal Code Section 288(a). After his release from prison, NGUYEN was obligated to register as a sex offender for life. In November 2015, while he was on probation, NGUYEN cut off a GPS monitor required by California Parole and absconded from supervision. He remained at large until December 12, 2017, when members of the U.S. Marshal’s Task Force and Louisiana State Troopers apprehended NGUYEN at a casino in New Orleans. After his arrest, NGUYEN admitted to living in Houma prior to moving to New Orleans, and that he was aware of his obligation to register as a sex offender in Louisiana pursuant to SORNA. He was initially arrested on charges of violating Louisiana state registration laws until the matter was charged in federal court.
NGUYEN faces a maximum term of 10 years in prison and a $250,000.00 fine. He also faces a term of supervised release of between 5 years and life. Judge Barbier set his sentencing for June 14, 2018.
U.S. Attorney Evans praised the work of the United States Marshal’s Service and the Louisiana State Police in this matter. He extended his thanks to California Division of Parole Operations, the Orleans Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew Payne is in charge of prosecution.
California Genetic Testing Service Pays $11 Million to Resolve False Claims AllegationsRead the Press Release
Allegedly submitted fraudulent medical claims for reimbursement
Will Pay $10,635,615.90 as part of Federal Settlement and $756,183 to a Number of States
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, acting on behalf of the Office of Inspector General of the Department of Health and Human Services, the TRICARE Program, and the Federal Employees Health Benefits Program (FEHB) today announced a $10,635,615.90 settlement with Natera, Inc., to resolve claims that Natera improperly billed federal healthcare programs for Natera’s non-invasive prenatal test known as Panorama®. Natera has also agreed to pay an additional $756,183 to a number of state Medicaid programs.
"Let this hefty settlement send a message that pursuing healthcare fraud is a priority of our Office and of the Department of Justice” stated United States Attorney Russell Coleman. “Overbilling federal healthcare programs steals from taxpayers and drives up the cost of healthcare for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public healthcare programs so many Kentucky families depend on.”
"I applaud the Department of Justice and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer," said Vice Adm. Raquel Bono, director of the Defense Health Agency, which manages the TRICARE Health Plan. "The Department of Justice's efforts safeguard the TRICARE benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices."
“In concert with our investigative partners, DCIS aggressively pursues fraud and corruption that undermines the integrity of Department of Defense programs, especially those involving the well-being of our Warfighters who deserve the best medical care available,” stated John F. Khin, DOD-DCIS Special Agent in Charge. “It is unconscionable for a health care provider to make profits by taking advantage of military members and their families when they are most vulnerable.”
“Today’s settlement shows the OPM-OIG’s commitment to investigating and prosecuting fraudulent billing practices that waste taxpayer dollars, increase the cost of medical care, and undermine the integrity of the Federal Employees Health Benefits Program. I would like to thank the United States Attorney’s Office and our law enforcement partners for all their hard work,” stated Scott Rezendes, OPM-OIG Special Agent in Charge.
The United States contended that between January 1, 2013, through December 31, 2016, Natera knowingly submitted false or fraudulent claims seeking payment from the TRICARE Program, FEHB, and Medicaid program for Natera’s genetic testing services, including its non-invasive prenatal test known as Panorama® (including optional panels that screened for microdeletion syndromes).
Specifically, the United States contended that for dates of service between January 1, 2013, through March 4, 2015, Natera improperly billed TRICARE for its Panorama® test, (including optional panels that screened for microdeletion syndromes), when TRICARE did not reimburse for certain laboratory developed test. Further, during dates of service between January 1, 2013, through December 31, 2016, Natera improperly billed TRICARE for non-invasive prenatal screening of certain microdeletion syndromes when TRICARE did not reimburse for this screening. During the same period, Natera improperly billed TRICARE, FEHBP, and Medicaid for its Panorama® test and for its non-invasive prenatal screening of certain microdeletion syndromes, by using an improper code which misrepresented the services Natera was billing to these programs. Lastly, during the same dates of service, Natera billed TRICARE, FEHBP, and Medicaid for its Panorama® test (including optional panels that screened for microdeletion syndromes) for patients with low-risk pregnancies. Natera denies this allegation.
This matter arose as a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. The relators, Sallie McAdoo and Steven Aldridge, filed a qui tam action on January 26, 2015, in United States District Court for the Western District of Kentucky (United States, ex rel. Sallie McAdoo and Steven Aldridge v. Natera, Inc., Civil Action No. 3:15-cv-88-DJH).
Natera is entering into a separate settlement agreement in the amount of $756,183.00 (the “Medicaid State Settlement Agreements”) for similar conduct related to various state Medicaid programs. The Medicaid State Settlement Agreement was negotiated by a team with the National Association of Medicaid Fraud Control Units.
The matter was handled by Assistant United States Attorney Benjamin S. Schecter, of the U.S. Attorney’s Office for the Western District of Kentucky. The investigation was conducted by the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Services (DCIS) and the Defense Health Agency (DHA).
natera_settlement03072018094335.pdfBuffalo Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brett Schultz, 39, of Buffalo, NY, who was convicted of attempted receipt of child pornography, was sentenced to 87 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that the defendant engaged in an online conversation with an individual he believed was a 15 year old high school girl. The individual was actually an undercover law enforcement officer.
Shortly into their conversation, Schultz asked the undercover officer, “so how old are you really?” The undercover officer replied, “I’m almost 16.” After discovering the undercover officer was a minor, the defendant requested sexually explicit images and pictures. Schultz then requested to the meet with the undercover officer at which time he was arrested.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Bradenton Man Sentenced to More Than 10 Years for Drug TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Michael Bernard Code (36, Bradenton) to 10 years and 5 months in federal prison for possessing with the intent to distribute controlled substances. He pleaded guilty on December 13, 2017.
According to court documents, on June 15, 2017, the Drug Enforcement Administration and the Manatee County Sheriff’s Office conducted surveillance of known narcotics trafficking locations in Manatee County. They observed a white Buick sedan leaving a suspected drug house and determined that the registered owner of the car had a suspended driver license. As officers attempted to initiate a traffic stop, the vehicle initially kept moving. When it finally stopped, Code exited the passenger side of the car carrying a black object, and fled on foot. The driver, Tony Marvin Johnson, was patted down for weapons, during which a deputy located a pill bottle containing approximately 8.5 grams of a white substance that appeared to be cocaine base. The substance field-tested positive for cocaine. Officers also recovered $237 from a fanny-pack strapped to Johnson’s waistband and another $207 from his front pants pockets.
Shortly thereafter, Code returned to the vehicle and was detained. Witnesses advised law enforcement that they saw Code throw objects on the ground in two separate locations. A search of those locations revealed a black magnetic type box containing the following: a digital scale, a plastic baggy containing Xanax pills, a plastic baggy containing approximately 13.5 grams of suspected fentanyl, a plastic baggy containing 13 smaller baggies with suspected fentanyl weighing approximately 8.2 grams, and a third plastic baggy containing 26 individual small baggies with an off-white powdery substance (weighing approximately 5.7 grams). The white substance field-tested positive for cocaine. The suspected fentanyl later lab-tested positive for MDMA.
Code later told law enforcement that Johnson had told him to run from the car and get rid of the objects. He also stated that he used narcotics and tested narcotics.
Johnson previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for April 3, 2018.
This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale. This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Armed Career Criminal Sentenced to 180 MonthsRead the Press Release
CHATTANOOGA, Tenn. – On March 7, 2018, Chris Rayvon Starks, 31, of Shelbyville, Tennessee, was sentenced to serve 180 months in prison by the Honorable Curtis L. Collier, Senior U.S. District Judge. Upon his release from prison, Starks will be under the supervision of the U.S. Probation Office for five years.
Starks previously pleaded guilty to unlawfully possessing a firearm and ammunition in violation of the Gun Control Act. His sentence was enhanced based on his three prior convictions for aggravated robbery. He was sentenced under the Armed Career Criminal Act (“ACCA”).
In August 2016, law enforcement executed a search warrant at the residence of Starks in Shelbyville, Tennessee, during which they seized a loaded .32 caliber semi-automatic pistol. He was present during the execution of the search warrant and admitted the firearm was his. Further investigation determined that the firearm was actually stolen. Starks currently has pending aggravated robbery charges in Bedford County, Tennessee.
“The U.S. Attorney’s Office will continue to protect the safety of our citizens and neighborhoods by prosecuting convicted felons who illegally possess or attempt to gain access to firearms,” said U.S. Attorney J. Douglas Overbey. “The investigators in this case quickly and thoroughly investigated the information provided to them regarding this defendant, consequently disrupting any plan of violence that he may have intended to pursue,” added U.S. Attorney Overbey.
The indictment and subsequent prosecution of Starks was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael D. Porter represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Anita A. Cruz Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant ANITA A. CRUZ, age 60, from Yigo, was sentenced yesterday in District Court, to 30 months imprisonment for Distribution of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). The Court also ordered CRUZ to pay a mandatory $100 assessment fee, serve three years of supervised release after her term of imprisonment and complete 50 hours of community service. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 15, 2017, CRUZ entered a guilty plea to distribution of methamphetamine hydrochloride. The investigation revealed that CRUZ distributed over seven (7) grams of methamphetamine with a purity level of over 97%. Guam Police Department Neighborhood Patrol Division had conducted a traffic stop in May 31, 2013 and discovered methamphetamine on the passenger and in the vehicle. The Violent Street Crimes Task Force, also known as the Bureau of Alcohol, Tobacco, Firearms and Explosives Task Force (ATF Task Force) conducted further investigation which led to the Defendant who was distributing methamphetamine.
Judge Ramona V. Manglona ruled that the sentence of 30 months imprisonment was fair and reasonable and noted the harm drugs cause to our islands. The Court urged Defendant, who the court described as in her “golden plus” years, to take advantage of intensive drug treatment while in prison, to assist her in overcoming her serious drug addiction, in hopes that she may return some day to Guam and become a productive member of society.
ATF Task Force conducted the investigation and credit is also given to the Guam Police Department who initiated the traffic stop. The sentencing was handled by Belinda Alcantara, an Assistant United States Attorney for the District of Guam.
Anchorage Man Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Misael Oquendo Vazquez, 45, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve eight years in prison, followed by a life term of supervised release, for possession of child pornography.
Vazquez used messaging applications on his phone and cloud-based storage sites to distribute and receive child pornography. When contacted by law enforcement, he was in possession of dozens of images and videos showing the sexual exploitation of minors, including videos that showed toddler-aged children being abused. The defendant also possessed a collection of non-pornographic images of children being spanked, some of whom had been abused to the point that their buttocks were bruised and injured.
At sentencing, Judge Burgess noted the seriousness of the crime, focusing on the victims in the child pornography images traded by Vazquez, as well as the children in the corporal punishment videos. Vazquez’s crime was serious not only because of “what it has done to the children in the [child pornography] videos” possessed by the defendant, said Judge Burgess, but also because of the “defendant’s proclivity to images that show corporal punishment, including images that show bruising [of kids].” Judge Burgess also was concerned about the threat posed by the defendant to the community, given the fact that he had been involved in the downloading and viewing of child pornography for more than 10 years.
Homeland Security Investigations (“HSI”) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
AlphaBay spokesperson Ronald L. Wheeler III a/k/a “Trappy” pleads guilty to conspiracyRead the Press Release
ATLANTA - Ronald L. Wheeler, III, a/k/a Trappy, has pleaded guilty to conspiracy to commit access device fraud for working as a public relations specialist for the Dark Web Marketplace AlphaBay.
“Wheeler spent hours on the Dark Web and general Internet providing AlphaBay users tips for attempting to avoid detection by law enforcement,” said U.S. Attorney Byung J. “BJay” Pak. “His plea is the end of his nefarious career as an AlphaBay promoter.”
“If people think the Dark Web gives them autonomy to operate illegally behind a cyber-curtain without the scrutiny of law enforcement, then Mr. Wheeler’s plea is a stark reminder that we won’t let that happen,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “We will not stop diligently prosecuting those who choose to disobey our laws and threaten our communities.”
“In pleading guilty, Ronald Wheeler has become another example that you cannot hide behind the anonymity created by the Darkweb,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “IRS-CI, with its law enforcement partners, will continue to take every step in taking down those who create and facilitate Dark Web sites while attempting to hide their illegal profits by seeking payment in digital currencies such as Bitcoin.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Ronald L. Wheeler III a/k/a Trappy conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through the operation of The Onion Routing (“TOR”) Dark Web marketplace AlphaBay. AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services. Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.”
Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids. The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web. Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from AlphaBay staffers.
On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay. Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com; moderating the AlphaBay message board forums; mediating sales disputes among AlphaBay users; promoting AlphaBay on the internet; and providing non-technical assistance to AlphaBay users. In return for his work, Wheeler received a salary in Bitcoin. Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website. Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website.
Sentencing for Ronald Wheeler, III, a/k/a Trappy, 24, of Streamwood, Illinois has been scheduled for May 24, 2018 at 2:00 p.m., before U.S. District Judge Leigh M. May.
This case is being investigated by the FBI and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case. Substantial assistance was provided by the U.S. Attorney’s Office for the Northern District of Illinois.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alaska Fugitive Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man, who is currently a fugitive, was sentenced yesterday in federal court for possessing images of child pornography.
Joshua Michael Evans, 45, of Eagle River, was sentenced by U.S. District Judge Sharon L. Gleason, to serve 14 years in prison, followed by a lifetime term of supervised release. Evans previously pleaded guilty on Nov. 2, 2016, to possession of child pornography and was placed on pretrial release pending sentencing. In October 2017, shortly before he was scheduled to be sentenced, Evans disappeared, prompting a manhunt by U.S. Probation, the FBI, and Alaska State Troopers. Evans remains at large.
The U.S. Attorney’s Office advises that anyone with information regarding the whereabouts of Joshua Evans are encouraged to call FBI Anchorage Field Office at 907-276-4441.
According to court documents, in May 2016, Evans became the subject of a federal investigation after law enforcement officials discovered Evans was using the internet to download videos and images of child sexual exploitation. Evans has a previous conviction from 2001 by the State of Alaska for sexual abuse of a minor.
The Federal Bureau of Investigation (“FBI”) and the Anchorage Police Department (“APD”) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Adam Alexander prosecuted the case. The U.S. Attorney’s Office commends the efforts of U.S. Probation, FBI, and the Alaska State Troopers in responding to Evans’ disappearance.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Alabama Resident and Ringleader of Multi-Million Dollar Stolen Identity Tax Refund Fraud Schemes Sentenced to 30 Years in PrisonRead the Press Release
A Phenix City, Alabama, resident was sentenced today to 30 years in prison for his role in masterminding multiple stolen identity refund fraud (SIRF) schemes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin, Sr. of the Middle District of Alabama.
William Anthony Gosha III, a/k/a Boo Boo, was convicted, following a jury trial in November 2017, of one count of conspiracy, 22 counts of mail fraud, three counts of wire fraud, and 25 counts of aggravated identity theft.
According to the evidence presented at trial and sentencing, between November 2010 and December 2013, Gosha ran a large-scale identity theft ring with his co-conspirators, Tracy Mitchell, Keshia Lanier, and Tamika Floyd, who were all previously convicted and sentenced to prison. Together they filed over 8,800 tax returns with the Internal Revenue Service (IRS) that sought more than $22 million in fraudulent refunds of which the IRS paid out approximately $9 million.
In November 2010, Gosha stole IDs of inmates from the Alabama Department of Corrections and provided the IDs to Lanier who used the information to seek fraudulent tax refunds. Gosha and Lanier agreed to split the proceeds. Gosha also stole employee records from a company previously located in Columbus, Georgia. In 2012, Lanier needed an additional source of stolen IDs and approached Floyd, who worked at two Alabama state agencies in Opelika, Alabama: the Department of Public Health and the Department of Human Resources. In both positions, Floyd had access to the personal identifying information of individuals, including teenagers. Lanier requested that Floyd primarily provide her with identities that belonged to sixteen and seventeen year-olds. Floyd agreed and provided thousands of names to Lanier and others at Lanier’s direction.
After receiving the additional stolen IDs, Gosha recruited Mitchell and her family to help file the fraudulent tax returns. Mitchell worked at a hospital located at Fort Benning, Georgia, where she had access to the personal identification information of military personnel, including soldiers who were deployed to Afghanistan. She stole soldiers’ IDs and used their information to file fraudulent returns.
In order to electronically file the fraudulent returns, Gosha, Lanier, and their co-conspirators applied for several Electronic Filing Identification Numbers (EFIN) with the IRS in the names of sham tax preparation businesses. Gosha, Lanier, and their co-conspirators then used these EFINs to file the returns and obtain tax refund related bank products from various financial institutions, which provided them with blank check stock. Gosha and his co-conspirators initially printed out the fraudulently obtained refund checks using the blank check stock.
However, the financial institutions halted Gosha’s and his co-conspirators’ ability to print checks. As a result, they recruited U.S. Postal employees who provided Gosha and others with addresses on their routes to which the fraudulent refund checks could be directly mailed. In exchange for cash, these postal employees intercepted the refund checks and provided them to Gosha, Lanier, Mitchell and others. Gosha also directed tax refunds to prepaid debit cards and had those cards sent to addresses he controlled.
In addition, between January 2010 and December 2013, Gosha participated in a separate SIRF scheme with Pamela Smith and others, in which Gosha sold the IDs that he had stolen from the Alabama Department of Corrections to Smith and others. Smith and others used the IDs to file returns that sought approximately $4.8 million in fraudulent refunds of which the IRS paid out approximately $1.85 million. Smith also has been convicted and sentenced to prison for this conduct.
At Gosha’s sentencing, the government offered victim impact statements from several individuals whose identities were stolen, and from companies and governmental agencies where the identity theft breaches occurred. An Alabama Department of Public Health representative noted, the identity theft was not only devastating financially, but it also had a chilling effect on the department’s ability to serve the residents of the State of Alabama. A mother of a young U.S. Army soldier who was an identity theft victim described the consequences of the fraud on her and her family, stating:
While [my son] was fighting for our country and all back home[,] I received a very disturbing phone call from [an] Agent [] from the IRS that my son[,] while at Ft. Benning training to defend our country[,] the land of the free[,] had his identity stolen and fraudulent tax returns were filed with his social security number. This news was devastating to think that my [] 19-year-old son[,] who was defending the very freedom this country stands [for] [,] was wronged by one of those people [he] was willing to die for. My whole family could not believe what was happening. We now had to worry about this terrible act by one of our own. As I tried my best to keep composed and handle all of the gruesome mounds of paperwork to get this straightened out with the IRS, [my son] was then denied his tax refund [as result of this scheme]. This created a financial hardship on [him]. We were too afraid to tell [him] while he was deployed because we did not want to worry him and we wanted him to focus only on getting home alive and not have to worry about such an atrocious act by someone who did not even know [him].
In addition to the term of imprisonment, U.S. Chief District Court Judge Keith Watkins ordered Gosha to serve three years of supervised release and to pay restitution in the amount of $9,052,049.
Prior to Gosha’s sentencing, thirty of his co-conspirators have been sentenced, including Keisha Lanier who received 15 years and Tracy Mitchell who received over 13 years.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Franklin commended special agents of Internal Revenue Service-Criminal Investigation and U.S. Postal Service Office of Inspector General who investigated this case and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Alabama Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Earlier this week, a one-count information was filed charging Aziz Ihab Sayyed, 23, of Huntsville, Alabama, with attempting to provide services and personnel, namely himself, to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Sayyed pleaded guilty today.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jay E. Town for the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI’s Birmingham Field Office made the announcement. The guilty plea was accepted by U.S. District Judge Abdul Kallon.
Sayyed acknowledged that he bought bomb-building ingredients last year, stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal, and attempted to form a cell to conduct violent acts within the United States. Sayyed admitted knowing that ISIS is a designated foreign terrorist organization.
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts, according to the court documents. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material, purchased the necessary ingredients for the explosive, and professed his aspiration to use TATP in an explosive belt and/or a car bomb, according to the plea agreement.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. The person was in fact an undercover employee (UCE) for the FBI. Sayyed and the UCE discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered himself as personnel to the UCE, believing that the UCE was an ISIS member.
Sayyed’s plea agreement stipulates a 15-year prison sentence.
The FBI investigated the case in conjunction with the Huntsville Police Department and the Madison County District Attorney’s Office. Assistant U.S. Attorneys Henry Cornelius and Davis Barlow of the Northern District of Alabama are prosecuting this case with the assistance of the National Security Division’s Counterterrorism Section.