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Thursday 8 March 2018
Alabama Convicted Felon Sentenced to Nearly Eight Years in Federal Prison for Downloading Child Sex Abuse Videos in FloridaRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Christopher Jaye Boykin (35, Lisman, Alabama) to 7 years and 11 months in federal prison for downloading child sex abuse videos. He was also ordered to serve a 5-year term of supervised release, register as a sex offender, and pay $4,000 in restitution to two victims. Boykin was previously convicted of two felony drug offenses in Jacksonville in 2013.
According to court documents, in February 2014, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) determined that a host computer in Jacksonville, where Boykin was residing, was offering child pornography on a file-sharing network. Boykin later pawned that computer at a shop in Jacksonville, and it was seized by law enforcement.
On November 14, 2014, HSI agents executed a search warrant at Boykin’s home and seized another computer that he had used to download at least 50 videos depicting sexual abuse of young children. During an interview, Boykin admitted that both computers contained child pornography for his own “viewing pleasure.”
“This child predator thought he could be anonymous behind a computer screen,” said HSI Tampa Special Agent in Charge James C. Spero. “But thanks to the investigative work of HSI special agents, and our partners at the Jacksonville Sheriff’s Office and the Jacksonville Beach Police Department, this criminal will be held accountable for his crimes.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the Jacksonville Beach Police Department. It was 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.justice.gov/psc.
Akron man indicted for possession with intent to distribute fentanyl, heroin and methamphetamineRead the Press Release
An Akron man was indicted on charges of possession with intent to distribute fentanyl, heroin and methamphetamine, said U.S. Attorney Justin E. Herdman.
Dontez Yeager, 33, possessed more than 50 grams of methamphetamine as well as a mixture of heroin and fentanyl on Jan. 15, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Drug Enforcement Agency. The matter is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Abiomed, Inc. Agrees to Pay $3.1 Million to Resolve Kickback AllegationsRead the Press Release
BOSTON – Danvers-based Abiomed, Inc. has agreed to pay $3.1 million to resolve allegations that it violated the False Claims Act by purchasing lavish meals for physicians in order to induce them to use Abiomed’s Impella line of heart pumps.
The United States contends that Abiomed sought to induce physicians to use its pumps, which cost more than $20,000 each, by buying meals for them at some of the country’s most expensive restaurants, including Menton in Boston, Nobu in Los Angeles, Spago in Beverly Hills, and Eleven Madison Park in New York City. The government further contends that Abiomed (1) paid for physicians’ meals in instances where attendees ordered alcohol in an amount inconsistent with legitimate scientific discussion; (2) paid for meals at expensive restaurants where employees invited spouses of physicians to attend (and those spouses did attend) even though the spouses had no legitimate business purpose for attending the meal; (3) paid for numerous meals for physicians in which the cost per-attendee well exceeded Abiomed’s own $150 per person guideline (in one instance exceeding $450 per-attendee); and (4) paid for meals for physicians in which their employees misrepresented the number of attendees, listed attendees with generic names (e.g., Mike Anesthesia), or listed fictitious names of individuals who did not attend the meal, which had the effect of making the true per-attendee cost appear lower. Abiomed managers approved the expenses for all of these meals.
“We expect today’s settlement with Abiomed to serve as a warning to medical device manufacturers who try to improperly influence the treatment decisions of physicians,” said United States Attorney Andrew E. Lelling. “Providing doctors with lavish meals, or meals that focus on entertainment rather than education or science, can impair a physician’s independent medical judgment – something each and every patient is entitled to. My office will continue to investigate sales practices that interfere with that independent medical judgment and that heighten the risk of improper use of limited federal healthcare dollars.”
“The FBI will continue to target medical device manufacturers or pharmaceutical companies who attempt to influence the medical decisions of health care providers whether through expensive meals or other improper arrangements,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “This settlement reaffirms the efforts of the FBI and its partners, who remain committed to rooting out companies whose sales practices can interfere with the medical judgment of physicians.”
“Health care companies seeking to boost profits by wining and dining physicians must be held accountable,” said Special Agent in Charge Phillip Coyne with the Office of Inspector General of the U.S. Department of Health and Human Services. “Lavish dinners can undermine impartial medical decision-making of physicians, drive up health care costs, and reduce the public’s trust in federal government health plans.”
The settlement announced today stems from a complaint filed by a former Abiomed employee under the whistleblower provisions of the False Claims Act, which authorizes private parties to sue on behalf of the United States and to receive a portion of any recovery. See United States ex rel. Bennett v. Abiomed, Inc., No. 13cv12277-IT. The whistleblower will receive $542,500 of the settlement.
The investigation was handled by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. The matter was handled by Assistant U.S. Attorneys Patrick M. Callahan of Lelling’s Healthcare Fraud Unit and Abraham R. George of Lelling’s Affirmative Civil Enforcement Unit.
19 Members and Associates of Tennessee Mongols Motorcycle Gang Charged with Racketeering Conspiracy Including Murder and KidnappingRead 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 Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Yesterday’s indictment charges four additional members and associates of the Clarksville Mongols with kidnapping, murder, and additional crimes. Fifteen members and associates of the Clarksville Mongols were charged in January 2018. 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.
This indictment alleges that, among other crimes, on Nov. 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, 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.
The indictment also charges Nelper, Boylston, and Meyerholz with murdering Stephen Cole in aid of Racketeering, and charges Nelper with large-scale drug trafficking and money laundering.
An indictment is merely an accusation and all defendants are presumed innocent until proven guilty in a court of law.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Trial Attorney Robert Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee are prosecuting the case.
Wednesday 7 March 2018
Working Group Shares Best Practices for Spectator Sports Safety and SecurityRead the Press Release
Members of the International Sports Events Working GroupOn March 6, 2018, INTERPOL Washington—the U.S. National Central Bureau—hosted a one-day working group meeting to prepare for the April 2018 course, Risk Management Challenges for Major Sporting Events: A Global Perspective. The official training course will be hosted by INTERPOL Project STADIA at the INTERPOL Secretariat General (IPSG) in Lyon, France.
The Risk Management Challenges for Major Sporting Events: A Global Perspective course trains senior law enforcement and incident management team leaders involved in the decision-making process to prepare for and respond to large-scale incidents during major national and international sporting events. The course, a scenario-based practicum, designed by international subject matter experts, uses a systematic process to analyze and prioritize risks posed by a crisis, crowd management, crowd violence, and terrorism, and to develop effective risk treatments.
During Tuesday’s preparatory class, representatives from the University of Mississippi, National Center for Spectator Sports Safety and Security (NCS4) and INTERPOL IPSG brought together instructor-observers to conduct an intensive review of the course syllabus and modules. Participants were selected based on their respective backgrounds in specialized fields or their experience in conducting and leading law enforcement-related training in an international environment. The participants served as students for the instructor team and provided feedback and recommendations to strengthen the course.
Unprecedented Check Presented to Labor Trafficking VictimRead the Press Release
HOUSTON – The victim in what has become known as the Katy Nanny case has been presented with a check for the full amount of restitution owed to her, announced U.S. Attorney Ryan K. Patrick.
“This woman now has a better chance at a fresh start,” said Patrick. “We cannot undo the mental and physical harm she has experienced as a result of what her tormenters did to her. However, what we can do is give her what she is owed and the ability to regain some financial stability.”
Sandra and Chudy Nsobundu brought the Nigerian woman here to serve as their nanny for their five children under the guise of a better life. However, during her more than two years with the couple, the victim was forced to work practically 24 hours a day, seven days a week and was subjected to verbal and physical abuse. She could not eat with the family and was forced to sleep on the floor between the beds of two minor children.
Sandra Nsobundu, 50, pleaded guilty to unlawful conduct with respect to documents in furtherance of forced labor, while her husband - Chudy Nsobundu, 58, pleaded to visa fraud. As part of their pleas, they had previously agreed to pay restitution to the victim but argued that amount should not exceed $30,000 for the entire time the woman worked for them. However, an expert with the Department of Labor – Wage and Hour Division compiled an extensive report detailing the amount of wages due to the victim. Ultimately, at a hearing that concluded Jan. 5, 2018, U.S. District Judge Nancy Atlas ordered the couple to pay $121,035.04 in restitution to the victim. They were also ordered to serve sentences of 14 months – seven in prison and another seven on home confinement. In addition to the restitution, Sandra Nsobundu was further ordered to pay an additional $5,000 fine per the Justice for Victims of Trafficking Act of 2015. Both will also be required to serve a term of three years of supervised release following completion of the prison term.
In typical restitution matters, defendants are ordered to pay a set amount monthly, which is usually not set to begin until the complete the service of their sentences. In this case, the Nsobundus payments were set at a total of $500 per month. At that rate, it would have taken more than 20 years for the victim to receive full compensation. However, the FLU at the U.S. Attorney’s Office uncovered the Nsobunsu’s significant financial means and immediately worked to obtained their banking information and secure the full restitution payment with interest totaling $121,046.91.
The woman had begun working for the couple from on or about Sept. 29, 2013, through Oct. 10, 2015.
After obtaining the woman’s visa, the Nsobundus paid to transport the victim from Nigeria to the U.S. Once here, Sandra Nsobundu took the victim’s passport and copies of her bank statement. The defendants then concealed, removed and possessed the woman’s passport and visa with the intent to violate the forced labor statute. As part of their pleas, they admitted they intended to prevent and restrict, without lawful authority, the victim’s liberty and ability to move and travel in order to maintain her labor and services.
The couple knowingly unlawfully obtained the labor and services of this woman from on or about Sept. 29, 2013, to Oct. 10, 2015. Throughout the period she worked for defendants, the victim was not permitted to have her passport or visa. The Nsobundus knowingly enacted a scheme intended to cause the woman to believe that failure to perform the labor and services would result in serious harm to her. They also threatened abuse of law and the legal process. The scheme included not paying the victim and restricting her movement to the defendants’ residence or two short walks per day around the block with the children. They also frequently yelled at, scolded and berated the victim for moving too slowly or failing to care for the children in the manner they wanted. In addition, the Nsobundus threatened to send the woman back to Nigeria if she did not comply with their labor demands.
The Nsobundus had previously agreed to pay the victim 20,000 Nigerian nairas-$100 U.S. per month. The Nsobundus never paid the victim for any of her work here in the United States.
The victim was rescued Oct. 10, 2015, after more than two years with Nsobundus in the U.S. following a tip to the National Human Trafficking Resource Center.
“Labor trafficking often hides in plain sight,” said Patrick. “Suburban neighbors saw something was out of place and listened to their instincts when stories did not add up. They brought this case to light. We need the public’s help to notify law enforcement. If you see something, say something. A simple phone call ended this victim’s bondage.”
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State-Diplomatic Security Service, Department of Labor, IRS and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses. In 2016, the Human Trafficking Rescue Alliance received $1.5 million in federal funds from the Bureau of Justice Assistance and the Office for Victims of Crime through the Enhanced Collaborative Model Anti-Human Trafficking Task Force Program, which provides funding to investigate and prosecute cases of human trafficking and provide services to victims.
Assistant U.S. Attorney (AUSA) Julie N. Searle and former AUSA Ruben R. Perez prosecuted the case. AUSA Martha Minnis and legal assistants Christina Hill, Kimmie Logan and Corey Richardson were responsible for the recovery of the restitution.
Two United Blood Nation Gang Members Sentenced to Federal ImprisonmentRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Spencer Johnson and Frank Truitt, both age 27, were sentenced to 87 months imprisonment and 71 months imprisonment, respectively, in federal court in Florence, South Carolina. Both men pled guilty to participating in drug and firearm conspiracies.
Johnson and Truitt were members of the Billies East Side Bloods, a local set of the United Blood Nation, operating in the Florence and Myrtle Beach areas of South Carolina. According to Assistant U.S. Attorney Andy Moorman, Johnson was a high-ranking gang member who was principally responsible for transporting to New York firearms stolen and/or unlawfully possessed by gang members, including Truitt. Once in New York, Johnson would purchase heroin and return with it to South Carolina. Johnson, Truitt, and other gang members would then sell the heroin locally in South Carolina.
The investigation was conducted by the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit’s Drug Enforcement Unit, and the Georgetown Police Department. Assistant U.S. Attorney Everett McMillian is also assisting in the prosecution.
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Two Oakland Gang Members Sentenced to 43 Years in Prison for Racketeering Conspiracy and Use of Firearms to Commit MurderRead the Press Release
OAKLAND – Two members of the West Oakland gang, Acorn, were sentenced to 43 years in prison for their respective roles in a criminal racketeering conspiracy, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The Honorable Phyllis J. Hamilton, Chief United States District Judge, sentenced Dionte Houff, a/k/a “Bird,” a/k/a “Birdman,” a/k/a “Tay,” and Houston Nathaniel, III, a/k/a “No No,” a/k/a “Lil No,” yesterday, following guilty pleas entered by the defendants on August 9, 2017. Both defendants admitted being involved with murder, distribution of controlled substances, and use of firearms.
According to his plea agreement, Nathaniel, 28, of Oakland, admitted that he became involved with the Acorn gang in or before 2008. He acknowledged that he agreed to participate in the Acorn gang’s activities to help achieve its objectives, such as shooting members of rival gangs and distributing drugs. Among the crimes Nathaniel committed for Acorn were two shootings that occurred on November 6, 2011, and another shooting on November 28, 2011. Nathaniel admitted that on the morning of November 6, he carried a firearm to a rival gang’s neighborhood and shot a victim. That victim suffered multiple gunshot wounds and has permanent injuries inhibiting his ability to walk. On the evening of the same date, Nathaniel shot a second victim. That victim was riding a bicycle through an area in West Oakland that the Acorn gang claims as its territory. Nathaniel also admitted his involvement in a shooting that occurred on November 28, 2011. On that day, Nathaniel knew a large group of people had gathered to film a music video. Nathaniel and other Acorn members believed that the music video was being filmed in an area where rival gang members lived and that the music video disrespected the Acorn gang. Nathaniel and others drove to the area with firearms and fired into the crowd. As a result, seven people suffered gunshot wounds, including a child who later died from the gunshot wound.
A federal grand jury indicted Nathaniel on July 19, 2012, and a superseding indictment was subsequently filed on June 18, 2015. On August 9, 2017, Nathaniel pleaded guilty to the following charges from that superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); maiming in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(2); assault with a dangerous weapon in aid of racketeering, in violation of 18U.S.C. § 1959(a)(2); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
Houff, 36, of Oakland, also admitted he was a member of the Acorn gang. Houff admitted he participated in the November 28, 2011 shooting that resulted in the death of a child and gunshot wounds to six others. For his part, Houff admitted he got into a car with other Acorn-affiliated persons and rode to the area where the music video was being filmed. Houff acknowledged he got out of the car, walked toward the group of people, and fired his gun into the group. Houff also admitted he was engaged in narcotics trafficking as part of his support for the Acorn gang.
Houff was named as a defendant in the July 19, 2012 indictment, and the June 18, 2015, superseding indictment. On August 9, 2017, Houff pleaded guilty to the following charges from the superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); assault with a dangerous weapon in aid of racketeering, in violation of 18U.S.C. § 1959(a)(3); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
In addition to the prison terms, Chief District Judge Hamilton also ordered each of the defendants to serve five years of supervised release.
The case is the result of an investigation by the ATF and the Oakland Police Department (OPD).
Three Plead Guilty to $29 Million Bank Fraud SchemeRead the Press Release
DALLAS — Three defendants charged with offenses stemming from their roles in a six year bank fraud scheme that caused $29,000,000 in fraudulent funding of loans, credit lines, and/or credit cards, have pleaded guilty to their respective roles in the scheme, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Yesterday, the lead defendant, Eddie Contreraz, 48, of Frisco, Texas, pleaded guilty before U.S. Magistrate Judge Renee Harris Toliver to one count of bank fraud. The maximum penalty for that offense is 30 years in federal prison, a $1 million fine and restitution. Sentencing is set for June 11, 2018.
Last week, co-defendants Stephanie Loraine Contreraz, 27, of Frisco, Texas, and Abraham Valdez, 53, of Frisco, Texas, each pleaded guilty to one count of conspiracy to commit bank fraud. The maximum penalty for that offense is 5 years in federal prison, a $250,000 fine and restitution.
All three defendants will remain on bond pending sentencing. Later this month, three additional defendants charged in the same case are also scheduled to plead guilty to one count of conspiracy to commit bank fraud. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.
According to the factual resume filed in the case, from January 2011 through March 2016, Contreraz was the owner and operator of Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG assisted its clients with credit repair and obtaining funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.
Beginning in about 2011, according to the factual resume, Contreraz produced and used many fraudulent documents to obtain loan approvals. Contreraz created consistently high quality fraudulent documents that Contreraz knew banks and other lending institutions accepted as valid and genuine documents. Contreraz and his employees then electronically transmitted these fraudulent documents to lenders.
During the period from about January 2011 through March 2016, approximately 95 percent or more of PMG’s clients obtained funding while using false and fictitious documents. Contreraz normally met with the clients and reviewed the information in their loan applications. Some clients did not have jobs, some did not have the necessary documents that banks required in the loan applications, and some did not have high enough income levels to qualify for a loan. When a client had such issues that might prevent loan approval by the bank, Contreraz told these clients that their loan would not be approved unless the client/borrower was willing to submit false information to the bank. False information provided included, inflated false income figures; false representations that the loan applicant's position was the manager of a company; false and fraudulent corroborating pay stubs, W- 2 tax documents, and/or utility bills.
Contreraz caused PMG employees Stephanie Contreraz, Abraham Valdez, Bryce Armijo, and Elizabeth Flint to use false financial information when clients applied for loans and credit cards over the telephone and the internet. These four codefendants worked with clients to insure that the clients reported the agreed-upon false information. These defendants also escorted clients to obtain the maximum number of loan approvals in a short period of time on the same day. The employees would take clients to meet with specific lender representatives that Contreraz already had established a relationship with and who agreed to help PMG clients.
Contreraz admitted that he caused all six of his co-defendant employees to assist borrowers fraudulently obtain at least 2,300 loans, credit lines, and/or credit cards from at least ten FDIC insured banks and at least another 140 loans, credit lines, and/or credit cards from three non-FDIC insured consumer lenders. During this period, all seven defendants participated in this bank fraud scheme that resulted in the fraudulent funding of loans, credit lines, and/or credit cards in the total amount of at least $29,000,000.
The Federal Bureau of Investigation, Fort Worth Division is investigating this fraud. Assistant U.S. Attorney David Jarvis is prosecuting.
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Thirty-One Year-Old Man Found Guilty of Child ExploitationRead the Press Release
SAN JUAN, P.R. – After a three-day jury trial and two hours of deliberation, Byron H. Montijo-Maysonet was found guilty of one count of coercion and enticement of a minor and four counts of transportation with intent to engage in criminal sexual activity with a minor, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Francisco A. Besosa presided over the trial.
According to the evidence presented at trial, on November 24, 2015, the defendant along with co-defendant, Luis Meléndez-Ramos, transported one 13-year-old female minor and one 14-year-old minor from their middle school in Manatí, PR, to a motel located in Barceloneta, PR, with the intent to engage in sexual activity. The defendant and Mr. Meléndez-Ramos used an internet instant messaging service to persuade one of the minors to return to the motel this time with a different 13-year-old female minor. On November 30, 2015, the defendant and Mr. Meléndez-Ramos picked up the two minor 13-year-old girls from their middle school and transported them to the motel to engage in sexual activity.
“This conviction shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute criminals whose crimes victimize children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”
The case was prosecuted by Assistant United States Attorneys Nicholas W. Cannon and Ginette Milanes. The defendant faces a mandatory minimum sentence of ten (10) years in prison. The sentencing is scheduled for June 6, 2018.
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Tampa Man Sentenced to Forty-Five Months’ Imprisonment for Identity Theft and Fraud SchemesRead the Press Release
Tampa, Florida – United States District Judge Charlene E. Honeywell today sentenced Rany Smith a/k/a “Abdelmajid Wahbi” (48, Tampa) to 45 months’ imprisonment for aggravated identity theft and conspiracy to commit mail and wire fraud. He pleaded guilty to charges on December 6, 2017.
According to court records, Smith, originally of Morocco, stole the identities of other North African immigrants and used them to carry out fraud schemes throughout Florida. In one scheme, he obtained employment as a manager at Tampa-area and South Florida businesses, using stolen identities to hide his prior felony conviction. He then used his managerial authority to hire “ghost employees,” whose wages he then collected and kept for himself. In other schemes, Smith obtained lines of credit using the personal identifying information of various identity theft victims and purchased goods and services from a variety of businesses across the United States. As a result, he incurred debts that he never repaid, causing tens of thousands of dollars in losses to the underwriting banks.
"This criminal stole the identities of other immigrants and used those identities to shield himself from being held accountable for illegal activities," said HSI Tampa Special Agent in Charge James C. Spero. "He victimized the immigrants whose identities he stole, Florida retailers and online merchants, and the U.S. taxpayers."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – National Security Division, the U.S. Air Force Office of Special Investigations, and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Eric K. Gerard.
Springdale Man Sentenced to 6 Years in Federal Prison for Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Pablo Jacinto-Torres, age 24, of Springdale, was sentenced today to 84 months in federal prison followed by three years of supervised release on one count of Possession With Intent To Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2017, the Springdale Police Department conducted several controlled purchase of methamphetamine from Pablo Jacinto-Torres. On May 15, 2017, Jacinto-Torres was stopped and arrested for an outstanding warrant. During the search of Jacinto-Torres vehicle, officers located digital scales, a large amount of cash and marijuana. A search of Jacinto-Torres residence resulted in officers locating approximately 178 grams of methamphetamine. The Arkansas State Crime Lab results reflect that the substance recovered tested positive for methamphetamine.
Jacinto-Torres was indicted by a federal grand jury in June 2017 and entered a guilty plea in November 2017.
This case was investigated by the Springdale Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.
Simpson County, Kentucky Resident Sentenced to 20 Years in Prison for Making and Possessing Illegal Firearms (Molotov Cocktails)Read the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman, announced the sentencing, of a Simpson County, Kentucky resident, in United States District Court yesterday, by United States District Judge Greg N. Stivers, to twenty years in prison, without the possibility of parole, for making and possessing illegal firearms, commonly known as Molotov cocktails.
“In this case, a phone call to law enforcement, and quick response by the Franklin Police Department and the ATF, may have saved Simpson County from untold harm,” stated United States Attorney Russell Coleman. “A vigilant public, aggressive law enforcement, and a significant punishment – twenty years – is the right formula for protecting our communities.”
Trey Alexander Gwathney-Law, 20, of Franklin, Kentucky, pleaded guilty to counts one and two of a superseding indictment, on June 16, 2017, before Judge Stivers and at that time was remanded to the custody of the United States Marshal Service. Gwathney-Law admitted to making and possessing five illegal firearms. According to court records and report by the Franklin Police Department, Gwathney-Law relayed to an acquaintance that he had made the devices in order to blow-up Franklin-Simpson County Middle School.
Specifically, according to the plea agreement, on September 27, 2015, Gwathney-Law knowingly made five illegal firearms. All were made using glass bottles. Four of the bottles (one Mountain Dew, one Sprite, and two Dr. Pepper) contained a dark gas/oil mixture liquid with a cloth wick stuffed in the bottle opening. Commonly referred to as a Molotov cocktail. A fifth, illegal firearm was made using a glass Root Beer bottle and contained a dark gas/oil mixture liquid with a piece of green pyrotechnic fuse attached to the opening with an epoxy sealant. The bottle contained a silver CO2 cartridge in the top of the bottle, under the pyrotechnic fuse. The CO2 cartridge contained explosive powder and small pieces of paper which appeared to have been soaked in the same flammable liquid found inside the bottle. Commonly referred to as a Molotov cocktail. Further, Gwathney-Law admitted to possessing the illegal firearms.
At sentencing, the United States moved to dismiss counts three and counts four of the superseding indictment and agreed that a sentence of 20 years, followed by a three year period of supervised release was the appropriate disposition in this case.
This case was prosecuted by Assistant United States Attorney Jo Lawless and was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP) and the Franklin, Kentucky Police Department.
Sanger, Texas Woman Sentenced to 36 Months Probation, $30,000 Restitution for Casino TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kristi Michelle Juarez, age 32, of Sanger, Texas, was sentenced to 3 years of probation and ordered to pay restitution in the amount of $30,000.00 for Theft By Officers Or Employees Of An Indian Gaming Establishment, in violation of Title 18, United States Code, Section 1168(b). The charge arose from an investigation by the Bureau of Indian Affairs.
The Indictment alleged that on January 2, 2017, in the Eastern District of Oklahoma, Kristi Michelle Juarez, while she was an employee of the Chickasaw Nation WinStar World Casino and Resort, embezzled, took and carried away in excess of $1,000.00 of moneys belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
United States Attorney Brian J. Kuester said, “The defendant is being held accountable for her theft from the Chickasaw Nation. During her term of probation the United States Probation Office will monitor the defendant and ensure that she is complying with the conditions ordered by the court. This office was able to successfully prosecute this case because of the thorough and professional investigative work by agents with the Bureau of Indian Affairs.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
San Diego FBI Paralegal Specialist Pleads Guilty to Theft of Nearly $160,000 in Government FundsRead the Press Release
A paralegal specialist for the San Diego Division of the FBI pleaded guilty today to embezzling nearly $160,000 in government funds, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge James K. Cheng of the Department of Justice Office of the Inspector General’s Los Angeles Field Division.
Lynn M. Morris, 51, of San Diego, California, pleaded guilty to one count of embezzlement of government property. Morris will be sentenced on June 4 before U.S. District Court Judge Larry Alan Burns of the Southern District of California.
According to admissions made in connection with her guilty plea, between July 2014 and November 2016, Morris embezzled approximately $159,821.90 that belonged to the United States and converted the funds for her own personal use. The funds were held in an account owned by the FBI San Diego Division’s Asset Forfeiture Unit (AFU). From 2014 to 2016, Morris was a paralegal specialist and the designated coordinator for the AFU. Morris admitted that to convert government funds to her own use, she used her knowledge and position within the FBI to withdraw cash from the AFU’s account and deposited portions of the stolen proceeds into her personal checking account.
The Department of Justice Office of the Inspector General investigated the case. Trial Attorneys Marco A. Palmieri and Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case.
Salt River Man Sentenced for MurderRead the Press Release
PHOENIX – This week, Juan Carlos Burns, 20, of the Salt River Pima-Maricopa Indian Community was sentenced by U.S. District Judge David G Campbell to 34 years in prison. A federal jury had found Burns guilty of second degree murder and discharging a firearm causing death.
On Sept. 25, 2017, at the Auk Mor 2 gas station located on the Salt River Pima-Maricopa Indian Community, Burns, a member of the Salt River Pima-Maricopa Indian Tribe, shot the victim one time in the back of the head with a 9 mm handgun. The victim died within minutes. Evidence showed that Burns shot the victim as a result of a derogatory comment made by the victim toward Burns.
The investigation in this case was conducted by the Salt River Police Department and the Mesa Police Department and Crime Lab, to include the Safe Trails Task Force. The prosecution was handled by Thomas Simon and Robert Brooks, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00445-PHX-DGC
RELEASE NUMBER: 2018-023_Burns
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Salem Man Pleads Guilty to Conspiracy to Commit Sex TraffickingRead the Press Release
Roanoke, VIRGINIA – A Salem man, who believed he was enticing a 15-year-old female to engage in prostitution while actually communicating online with an undercover Franklin County Sheriff’s Deputy, pleaded guilty this week in U.S. District Court in Roanoke to a federal sex-trafficking charge. United States Attorney Rick A. Mountcastle made the announcement.
Shawn Paul Paisley, 48, waived his right to be indicted and pleaded guilty this week to one count of conspiracy to commit sex trafficking. At sentencing, Paisley faces a possible statutory maximum sentence of up to life in prison and/or a fine of up to $250,000. The defendant also faces a mandatory minimum term of supervised release of 5 years and a maximum term of life. A sentencing hearing has been scheduled for May 25, 2018.
In August of 2016, while posing as a 15-year-old female, a Franklin County Sheriff’s Deputy responded to a Craigslist advertisement posted by Paisley seeking a “personal/casual” encounter. Paisley gave the “female minor” a cell phone number and the two exchanged text messages. During the course of their text message exchanges, Paisley told the “female minor” that he ran an escort service and that his girls made good money. Paisley provided standard prices for the services the escorts offered and the two arranged to meet in order for the “female minor” to perform oral sex on Paisley.
Paisley left his home in Salem, Virginia and drove to Franklin County, Virginia to meet the “minor female.” When Paisley arrived in Franklin County, he was arrested.
Paisley admitted that he helped run an escort service, which involved recruiting females to engage in sex for pay. He helped arrange for encounters between recruited female prostitutes and the customers and took a portion of the fees paid for making the arrangements. Paisley recalls that at least two females he previously helped recruit were 17-years-old.
The investigation of the case was conducted by the U.S. Department of Homeland Security and the Franklin County Sheriff’s Office. Assistant United States Attorneys Laura Day Rottenborn and Matthew Miller are prosecuting the case for the United States.
Rochester, Indiana Man SentencedRead the Press Release
SOUTH BEND – Stephan Howard, age 55, of Rochester, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possessing methamphetamine with the intent to deliver, announced U.S. Attorney Kirsch.
Howard was sentenced to 168 months imprisonment followed by 5 years of supervised release.
According to documents in this case, on January 17, 2017, Howard possessed over 500 grams of methamphetamine in his home in Rochester which he intended to distribute to others. He also agreed to forfeit 18 firearms that were taken from his home by law enforcement on that day.
This case is being investigated by the Drug Enforcement Administration with the assistance of Indiana State Police, Rochester Police Department, Fulton County Police Department and the Fulton County Prosecuting Attorney. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Reno Man Pleads Guilty to Bank RobberyRead the Press Release
RENO, Nev. – A Reno man pleaded guilty yesterday to robbing a US Bank located inside a Safeway, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Mathew Eugene Hovious, 47, pleaded guilty to one count of bank robbery. United States District Judge Larry R. Hicks accepted the guilty plea. Sentencing is scheduled for June 4, 2018.
According to court documents, Hovious admitted that, on October 23, 2017, he approached a bank teller and said, “Sorry, I have to do this,” then proceeded to give the teller a note that read: “I have a gun and a friend outside. We will use it. Do not pursue. $50s, $20s, $10s only. No dye packs or Transponders. I will kill you.” The teller put money in an envelope for Hovious and he left the bank. He stole approximately $2,600.
At the time of sentencing, Hovious faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI. Assistant U.S. Attorney Megan Rachow is prosecuting the case.
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Porum Man Sentenced to 48 Months Probation, $48,000 Restitution for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Lee McLemore, age 55, of Porum, Oklahoma, was sentenced to 4 years of probation and ordered to pay restitution in the amount of $48,075.00 for False Statement, in violation of Title 42, United States Code, Section 1383a(a)(2). The charge arose from an investigation by the Social Security Administration’s Office of Inspector General.
The Indictment alleged that on or about February 1, 2017, within the Eastern District of Oklahoma, the defendant knowingly made or caused to be made a false statement or representation of a material fact to the Social Security Administration used to determine the right for any payment. Specifically, McLemore participated in a redetermination conference wherein he stated that he had not worked since the date of his last eligibility determination, when, in fact, he knew that he had been gainfully employed during the period.
United States Attorney Brian J. Kuester said, “Defrauding the Social Security Administration is theft from taxpayers and is a serious offense. The SSA Office of Inspector General works hard to detect, and investigate those that commit fraudulent schemes to receive SSA benefits they are not lawfully entitled to. The defendant in this case is being held accountable for his criminal acts. He will be closely monitored by the United States Probation Office and as part of his sentence he is required to pay restitution to reimburse the public funds he received.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
Pittsburgh Man Pleads Guilty to Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of possession of material depicting the exploitation of a minor, United States Attorney Scott W. Brady announced today.
Abhijeet Das, 27, of Pittsburgh, Pennsylvania, pleaded guilty on March 6 to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on November 8, 2017, Das unlawfully possessed computer graphic files containing approximately 1,000 photographs and 380 videos depicting minors engaged in sexually explicit conduct.
Judge Hornak scheduled sentencing for July 19, 2018 at 9:30 am. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Das on a $25,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Western Pennsylvania Crimes Against Children Task Force conducted the investigation that led to the prosecution of Das.
Pinellas Doctor Pleads Guilty to Receiving Kickbacks for Writing Prescriptions for Compounded MedicationsRead the Press Release
Tampa, Florida – Dr. Anthony Baldizzi (54, Largo) today pleaded guilty to conspiracy and receiving illegal kickbacks related to a federal health care benefit program. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Baldizzi, a medical doctor practicing in Pinellas County, wrote prescriptions for compounded creams for scars and pain, among other things. These creams, which were prescribed to TRICARE beneficiaries and others, cost between $900 and $21,000 for a one-month supply.
Beginning in May 2014, Baldizzi entered into an agreement with the owners of Lifecare Pharmacy, a Pinellas County-based compounding pharmacy, and the principals of Centurion Compounding, Inc., a Pasco County-based marketing firm that promoted compounded creams. Lifecare and Centurion agreed to pay Baldizzi 10 percent of each paid claim resulting from a prescription for a compounded cream written for his patients and filled at Lifecare. These prescriptions were often billed to TRICARE.
Also, at the request of Centurion’s owners, Baldizzi conducted “pop up” medical clinics at a hotel, retail store, and other locations in order to see high volumes of Centurion-recruited patients and prescribe Centurion-promoted compounded creams, many of which were paid for by TRICARE.
Lifecare received approximately $5.3 million from TRICARE for claims made for prescriptions for compounded medications prescribed by Baldizzi as a result of this illegal kickback scheme. The conspirators made cash payments to Baldizzi and bought him a $72,000 luxury car in return for writing the prescriptions for compounded creams for individuals covered by federal health care benefit programs.
Baldizzi’s co-conspirators, pharmacists Carlos Mazariegos and Benjamin Nundy, who owned and operated Lifecare Pharmacy, pleaded guilty to conspiracy to commit healthcare fraud in related cases and are set to be sentenced in June 2018. This investigation is ongoing.
This case was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services – Office of Inspector General, the U.S. Air Force Office of Special Investigations, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Pennsylvania Hospital and Cardiology Group Agree to Pay $20.75 Million to Settle Allegations of Kickbacks and Improper Financial RelationshipsRead the Press Release
UPMC Hamot (Hamot), a hospital based in Erie, Pennsylvania – and now affiliated with the University of Pittsburgh Medical Center (UPMC) – and Medicor Associates Inc. (Medicor), a regional physician cardiology practice, have agreed to pay the government $20,750,000 to settle a False Claims Act lawsuit alleging that they knowingly submitted claims to the Medicare and Medicaid programs that violated the Anti‑Kickback Statute and the Physician Self‑Referral Law, the Justice Department announced today. Hamot became affiliated with UPMC after the conduct resolved by the settlement occurred.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The settlement resolves allegations brought in a whistleblower action filed under the False Claims Act alleging that, from 1999 to 2010, Hamot paid Medicor up to $2 million per year under twelve physician and administrative services arrangements which were created to secure Medicor patient referrals. Hamot allegedly had no legitimate need for the services contracted for, and in some instances the services either were duplicative or were not performed.
“Financial arrangements that improperly compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”
The lawsuit was filed by Dr. Tullio Emanuele, who worked for Medicor from 2001 to 2005, under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. The Act also allows the government to take over the case or, as in this case, the whistleblower to pursue it. In a March 15, 2017 ruling, the U.S. District Court for the Western District of Pennsylvania held that two of Hamot’s arrangements with Medicor violated the Stark Law. The case was set for trial when the United States helped to facilitate the settlement. Dr. Emanuele will receive $6,017,500.
“Federal law prohibits physicians from entering into financial relationships that may affect their medical judgment and drive up health care costs,” said U.S. Attorney Scott W. Brady. “Today’s settlement demonstrates our commitment to ensuring that health care decisions are made based exclusively on the needs of the patient, rather than the financial interests of health care providers.”
This matter was handled on behalf of the government by the U.S. Attorney’s Office for the Western District of Pennsylvania, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Emanuele v. Medicor Associates, Inc. et al., Civil Action No. 10-cv-00245-JFC (W.D. Pa.). The False Claims Act claims resolved by this settlement are allegations only and there has been no determination of liability.
Parkersburg man sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today to two years in federal prison for a drug charge, announced United States Attorney Mike Stuart. Nathaniel Pittman, 27, previously pled guilty to possession with intent to distribute heroin and cocaine. U.S. Attorney Stuart commended the investigative efforts of the Wood County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The citizens of Parkersburg are some of the finest folks in West Virginia,” said U.S. Attorney Stuart. “We won’t tolerate drug dealers in Parkersburg or anywhere in this district, and we will continue working to keep them off the streets and locked up for their crimes.”
On July 7, 2016, members of the Wood County Sheriff’s Office conducted a traffic stop of Pittman’s vehicle and seized heroin and cocaine. Pittman admitted that he possessed the drugs found in his vehicle, and that he intended to sell the drugs. Lab testing confirmed that the drugs law enforcement recovered were over 80 grams of heroin and over 90 grams of cocaine.
Assistant United States Attorney John Frail handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Opinion | Violent crime = federal jail timeRead the Press Release
Published 1:05 p.m. CT March 6, 2018 | Updated 2:27 p.m. CT March 6, 2018
As a prosecutor, my ink pen is my primary weapon. I have a very nice Montblanc ink pen, which was a generous gift from a dear friend.
I use that pen to sign the indictments by which the federal criminal justice process begins, in order to ultimately hold criminal offenders accountable by sending them to federal prison.
Reducing violent crime, including offenses committed by the illegal possession and use of firearms, is the top priority of my office and the Department of Justice.
As directed by Atty. Gen. Jeff Sessions, we charge and pursue the most serious, readily provable violent and firearms offenses, and seek the most substantial punishment under the sentencing guidelines, including the use of mandatory minimum sentences for armed career criminals and felons in possession of firearms.
We have recommitted our efforts to initiatives that have worked in the past to reduce violent crime, such as the Project Safe Neighborhoods (PSN) program, which aggressively targets all firearms offenses with the most swift, certain, and appropriate penalties.
Only by a return to those policies and practices that have proven to work can we accomplish the goals of criminal prosecution to ensure public safety: incapacitation of dangerous offenders, specific and general deterrence of future crimes, retributive justice for victims and the community, and respect for the rule of law.
Bank and business robbery, carjacking, aggravated assault, and gang and domestic violence are all federal crimes committed with firearms that violate the fundamental civil rights of all citizens to be safe in their homes, businesses, and communities.
The violent crime rate in Memphis, Jackson, and across the Western District of Tennessee is unacceptably and disproportionately high - especially in our most vulnerable neighborhoods.
The news from the DOJ is that we are open for business, and we will not cede our safety and security in one city, in one neighborhood, or on one street corner to violent crime.
My message is clear: If you are a violent criminal with a firearm, you will be held accountable and removed from our streets. When you pick up your weapon, rest assured that I will pick up mine, and I will use it aggressively, frequently, and unapologetically.
At the U.S. Attorney’s Office, we are urgent in our mission to reduce violent crime. We are comprehensive in the scope of our investigations and prosecutions. And we are relentless in our resolve to make West Tennessee safe again.
D. Michael Dunavant is the United States Attorney for the Western District of Tennessee.
New Haven Man Sentenced to 12 Years in Federal Prison for Racketeering, Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MILES PRICE, also known as “Molly Rock,” 29, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment, followed by five years of supervised release, for racketeering, firearm possession and drug distribution offenses.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members. PRICE was an associate of RSGB.
On April 20, 2011, Benton recruited PRICE to assist in the robbery of money and marijuana from Kevin Lee of New Haven. On that date, Benton, PRICE, Luis “Chewie” Padilla and Rodrigo “Rico” Ramirez drove to the vicinity of Lee’s residence. Benton, PRICE and Padilla walked to the residence and Ramirez stayed in the car. Benton handed PRICE a .45 caliber handgun as they approached the back door. After Lee answered the door, Lee tried to grab PRICE’s gun and lunged at PRICE with a knife. Padilla then shot Lee once in the stomach, once in the back, and finally in the head.
PRICE also traveled to Maine at Benton’s request to assist in RSGB’s crack distribution enterprise.
In 2014, as part of an unrelated investigation, law enforcement conducted seven controlled purchases of crack from PRICE. On April 12, 2014, PRICE sold a .44 caliber revolver and a .22 caliber pistol to an individual working with law enforcement.
PRICE has been detained since his arrest on June 18, 2014. On October 6, 2015, he pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of possession with intent to distribute, and distribution of cocaine base (“crack”), and one count of possession of a firearm by a previously convicted felon.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton, Padilla and Ramirez pleaded guilty to various offenses stemming from this investigation, and admitted to participating in the murder of Kevin Lee. Benton also admitted that he participated in three other gang-related murders and one attempted murder, and Padilla admitted that he participated in two other gang-related murders and two attempted murders.
On October 4, 2017, Benton was sentenced to 480 months of imprisonment. Padilla and Ramirez await sentencing.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Multi-State Drug Investigation Yields Multiple Arrests, Drugs, Firearms, and MoneyRead the Press Release
MARTINSBURG, WEST VIRGINIA – After nearly a two-year investigation into a drug trafficking operation that spanned multiple states, ten people, including two MS-13 gang members, have been indicted on a variety of federal charges, United States Attorney Bill Powell announced.
Authorities in West Virginia and Virginia searched more than a dozen properties, seizing 12.5 kilos of cocaine with an estimated street value of more than $300,000, eleven firearms, hundreds of rounds of ammunition, and more than $100,000 in cash. Those indicted on multiple counts in connection with the drug distribution operation are:
- Rogelio Santacruz Godinez, also known as “Tramposo,” also known as “Trampa,” age 36, of Axton, Virginia, Mexican National
- Jose Alfredo Santacruz Godinez, also known as “Sandoval,” of Axton, Virginia, Mexican National
- Guadalupe Ibarra-Ayon, also known as “Lupe,” age 30, of Winchester, Virginia, Mexican National
- Eduardo Hernandez Sanchez, also known as “Lalo,” age 42, of W, West Virginia, Mexican National
- Suspected MS-13 Gang Member Jose Santiago Cruz-Delcid, also known as “Trucko,” also known as “Truckito,” age 38, of Bunker Hill, West Virginia, El Salvador National
- Confirmed MS-13 Gang Member Miguel Angel Cruz-Polanco, age 34, of Martinsburg, West Virginia, El Salvdaor National
- Adam Gunn, II, age 30, of Martinsburg, West Virginia
- Adam Bensaid, age 19, of Martinsburg, West Virginia
- Rogelio Martinez-Rojas, age 34, of Martinsburg, West Virginia, Mexican National
- Kenneth Biermann-Ruz, also known as “Ruz,” also known as “Chile,” age 29, of Martinsburg, West Virginia
“This investigation lasted nearly two years and involved the cooperative efforts of federal, state and local law enforcement agencies. When those efforts were combined with the work of our Assistant U.S. Attorneys the stage was set for results, including the indictments that have now been returned by the Grand Jury. This cooperative effort, through the use of a task force, is the perfect example of how such an investigation should be run. These agencies worked together, were not worried about who got credit, combined resources, and got big results. We are a small district and task forces, like the one that worked this investigation, are a force multiplier. I can’t thank the task force, its leaders, and participating agencies enough for their dedicated work in this investigation.
“The task forces across the district, the federal, state and local law enforcement, the Assistant U.S. Attorneys and our colleagues in county prosecutor offices across will continue to aggressively pursue all of those who come into this district thinking they can distribute poison in our communities. Whether that poison is the form of cocaine, like in these indictments, heroin, fentanyl, or methamphetamine, we will relentlessly pursue them. This investigation has shown that violent gangs like MS-13 are attempting infiltrate our state. If you are MS-13, do not come here. We know what you stand for, we will find you, and we will prosecute you for violations of the law.
It is important to state that we have a number of ongoing investigations, and I expect we will continue to work together towards successful conclusions in all of them,” said Powell.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the cases on behalf of the government. The U.S. Attorney’s Office of the Western District of Virginia assisted. The investigation is led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Mineral County Sheriff's Office, the Martinsburg Police Department, the Charles Town Police Department, the Keyser City Police Department, and the Ranson Police Department. Other agencies assisting in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mississippi Juvenile Detention Officers Indicted for Multiple Assaults and Cover-UpRead the Press Release
The Department of Justice today announced that an officer at the Leflore County Juvenile Detention Center in Greenwood, Mississippi was charged with assaulting two juveniles in his custody. The indictment, which was returned on Feb. 21, 2018 but unsealed today, alleges that Edward Gibson, 28, punched and threw an electric fan at one juvenile, and struck the other juvenile in the head and body.
A separate indictment also unsealed today charged his supervisor, Dianne Williams, 60, with writing a false report to cover up one of the assaults. The indictment alleges that Williams falsely wrote that she had no knowledge of the assault, when in fact she was aware of it.
The indictments were announced by Acting Assistant Attorney General for the Civil Rights Division John Gore, United States Attorney William C. Lamar of the Northern District of Mississippi, and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation, Jackson Field Division.
If convicted, Gibson faces a maximum punishment of 10 years imprisonment for each excessive force charge. Williams faces up to 20 years imprisonment on the false report charge. An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the Jackson Division of the Federal Bureau Investigation, with the cooperation of the Leflore County Sheriff’s Department and the Leflore County Detention Center. It is being prosecuted by Assistant United States Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Mesquite Man Sentenced to 96 Months in Federal Prison for Possession of a FirearmRead the Press Release
DALLAS — Luis Baeza Caro, 33, of Mesquite, Texas, was sentenced Monday by U.S. District Judge David C. Godbey to 96 months in federal prison for being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Caro pleaded guilty in November 2017 to one count of possession of a firearm by a convicted felon. He has been in custody since his arrest in May 2017.
According to information provided at the sentencing hearing, on November 3, 2016, law enforcement were summoned to Caro’s residence after they received complaints of gunshots being fired in the backyard. Caro, a multi-convicted felon and gang member, was arrested and the police recovered three firearms and marijuana from his residence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Mesquite Police Department. Assistant U.S. Attorneys Gary Tromblay and Mark Penley prosecuted.
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Medina Resident Sentenced for Forging Court DocumentsRead the Press Release
Memphis, TN – A Medina resident has been sentenced to federal prison for forgery of a court document. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, Jay Richard Hassman, 52, of Medina, Tennessee, had outstanding debts with various creditors. Hassman created a fictitious restraining order, bearing a forged digital signature of U.S. District Court Judge Sheryl H. Lipman, stating that the creditors were restrained from "reprocessing, beginning the foreclosure process, shutting off utilities, eviction proceedings and/or other services until May 19, 2016." The order also required the creditors to negotiate Hassman’s debts and credit him any fees. He sent the order to several of his creditors.
On February 28, 2018, Hassman was sentenced to eight months imprisonment by U.S. Senior District Judge Samuel H. Mays, Jr., consecutive to 11 months currently serving in Tipton County on an unrelated matter, followed by 3 years supervised release.
This case was investigated by the FBI. Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.
McAllen Man Heads to Prison for Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 30-year old resident of McAllen has been sentenced to federal prison following his conviction of receipt of child pornography, announced U.S. Attorney Ryan K. Patrick. Rodrigo Garcia-Fuentes pleaded guilty June 2, 2017.
Today, U.S. District Judge Randy Crane took into consideration the age of the victims depicted in the videos and photographs, as well as the number of images possessed by the defendant and handed Garcia-Fuentes a sentence of 70 months in prison. Garcia-Fuentes was further ordered to be on supervised release for the remainder of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He was also ordered to register as a sex offender and pay restitution to the victims in the amount of $62,500.
Garcia-Fuentes came to the attention of law enforcement following an investigation which began April 4, 2016, into persons using the Internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through a peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On July 29, 2016, HSI agents executed a federal search warrant at the McAllen residence, during which time they seized a computer. A forensic examination on the computer revealed 650 videos and 658 images of child pornography involving minor children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Garcia-Fuentes admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his computer. He admitted he had been downloading child pornography for approximately four years.
Garcia-Fuentes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney David Paxton, 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."
Maple Heights man indicted on firearm chargeRead the Press Release
A federal grand jury returned an indictment charging Dwayne B. Sheron, 36, of Maple Heights, for being a felon in possession of a firearm and ammunition.
Sheron possessed a 9 mm firearm after having previously been convicted on three prior occasions of drug trafficking, which makes it illegal for him to have a firearm, according to the indictment.
Assistant United States Attorney Brian S. Deckert is prosecuting the case following an investigation by the Bureau of Alcohol, Tobacco and Firearms and the Cleveland Division of Police.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mandeville Woman Guilty of Tax EvasionRead the Press Release
United States Attorney Duane A. Evans announced that MARCIA DENISE JORDAN, age 46, a resident of Mandeville, pled guilty today to one-count of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, JORDAN willfully attempted to evade tax due and owing for tax year 2011, by filing a false IRS form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), which falsely stated that her total estimated tax liability was $0 and that she had made $10,000 in payments to the IRS, despite knowing that she had received $493,266 in taxable income that year. JORDAN then failed to file a tax return for the 2011 tax year.
JORDAN faces a maximum term of imprisonment of five years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee. As part of her plea agreement, JORDAN agreed to pay $313,899 to the IRS, for taxes due and owing for the 2009-2014 tax years. United States District Court Judge Ivan L.R. Lemelle set sentencing for June 6, 2018.
U.S. Attorney Evans praised the work of IRS-Criminal Investigations, United States Secret Service, and the Slidell Police Department in investigating this matter. Assistant United States Attorney Jon Maestri and DOJ Tax Division Trial Attorney Grace Albinson are in charge of the prosecution.
Louisiana Woman Pleads Guilty to Tax EvasionRead the Press Release
The former employee of a New Orleans law firm pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Interim U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
According to court documents, Marcia Jordan, 46, evaded paying taxes on over $490,000 in income earned from her work at the law firm. As part of her plea, Jordan admitted to failing to file timely her income tax return for 2011 and to submitting to the IRS a false application for automatic extension of time to file her return on which she falsely estimated her total tax liability to be $0 and falsely claimed that she had already made $10,000 in tax payments.
As part of her plea agreement, she has agreed to pay a total of $313,899 in restitution to the IRS for her unpaid taxes for 2009 through 2014.
U.S. District Court Judge Ivan Lemelle scheduled sentencing for June 6. Jordan faces a statutory maximum sentence of five years in prison. She also faces monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and Interim U.S. Attorney Evans commended special agents of IRS Criminal Investigation, special agents of the U.S. Secret Service, and the Slidell Police Department, who investigated the case, and Trial Attorney Grace Albinson of the Tax Division and Assistant U.S. Attorney Jon Maestri, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Logan County man pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Logan County man pled guilty today to a federal gun crime, announced United States Attorney Mike Stuart. Joshua Edie, 34, of Chapmanville, entered his guilty plea to being a prohibited person in possession of firearms. U.S. Attorney Stuart commended the investigative efforts of the Chapmanville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“I support our Second Amendment rights wholeheartedly,” said U.S. Attorney Stuart. “I also firmly believe in protecting our gun rights by keeping firearms out of the hands of drug users, domestic abusers, and felons. We will keep working with our law enforcement partners to prosecute criminals who ignore and violate our gun laws.”
Edie admitted that around January 30, 2017, he possessed five firearms in his apartment in Chapmanville. He further admitted that, at the time, he was a user of methamphetamine and that he had been convicted of a misdemeanor crime of domestic violence in Ohio in 2010.
Edie faces up to 10 years in federal prison when he is sentenced on May 30, 2018.
Assistant United States Attorney Gabriele Wohl is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Local Medical Doctor Sentenced for Operating a Pill Mill, Threatening Federal Law Enforcement and Health Care FraudRead the Press Release
U.S. Attorney Duane A. Evans announced that SHANNON CHRISTOPHER CEASAR, M.D., age 45, a physician and former co-owner who operated Gulf South Physician’s Group in Metairie and resided in New Orleans, was sentenced today after previously pleading guilty for his role in illegally dispensing and distributing controlled substances, threatening to assault or murder federal law enforcement officers, and health care fraud.
According to court documents, on April 5, 2017, CEASAR pled guilty to Counts 1, 2, and 3 of a Superseding Bill of Information. Count 1 charged him with conspiracy to distribute and dispense, outside the scope of professional practice and not for a legitimate medical purpose, quantities of Oxycodone, a Schedule II drug controlled substance. CEASAR ran what was, in essence, a “pill mill,” i.e., an operation in which he prescribed controlled substances to drug seekers and drug abusers without a legitimate medical purpose and in exchange for a flat fee.
CEASAR also pled guilty to and was sentenced for threatening to assault or murder federal law enforcement officers with the intent to impede, intimidate or interfere with such officers while they were engaged in the performance of their official duties, or with the intent to retaliate. On or about July 20, 2016, at a time when CEASAR suspected he was under investigation, he made repeated recorded threats to kill federal law enforcement officers, in particular officers with the Drug Enforcement Administration.
Lastly, CEASAR pled guilty to and was sentenced for committing and attempting to commit health care fraud. In total, as a result of CEASAR’s knowing and fraudulent issuance of prescriptions for Schedule II, III, and IV narcotics that he knew were medically unnecessary, health care benefit programs lost approximately $150,000.
U.S. District Judge Martin L.C. Feldman sentenced CEASAR to 120 months imprisonment on all three counts, to be served concurrently, followed by a three-year term of supervised release. CEASAR was also ordered to pay restitution in the amount of $150,788.33 to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for losses suffered. As part of his plea agreement, CEASAR also agreed to suspension of his Louisiana medical license and, among other property, the voluntary forfeiture of 33 firearms that were seized upon his arrest on July 22, 2016.
“Operating as a physician in the New Orleans area, Shannon Ceasar violated the trust of his patients and abused his position, which ultimately endangered the lives of many within our community. Based on his greed, Caesar operated the equivalent of a street level pharmacy, peddling opioids for sex and money. The FBI, along with our federal, state, and local partners will continue to investigate the illegal distribution of opioids in Louisiana and help put an end to the suffering that so many victims continue to endure,” said Special Agent in Charge Eric J. Rommal, Federal Bureau of Investigation, New Orleans Field Office.
“The sentence imposed today affirms our commitment that HHS-OIG Special Agents will work closely with our law enforcement partners to identify and bring to justice medical providers who deliberately manipulate the system to fraudulently obtain crucial Medicare and Medicaid dollars,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region. “The sentence also demonstrates that threats of violence against law enforcement agents will not deter us from our commitment to pursue and bring to justice the providers who are contributing to the nation’s opioid epidemic for their own enrichment.”
U.S. Attorney Duane A. Evans praised the work of the Special Agents of the Federal Bureau of Investigation, U.S. Department of Health and Human Services OIG, and Drug Enforcement Administration, as well as the Jefferson Parish Sherriff’s Office and Louisiana State Police in investigating this matter. Assistant United States Attorneys Shirin Hakimzadeh, Jordan Ginsberg, and Myles Ranier were in charge of the prosecution.
Littleton Man Sentenced to 60 Months in Federal Prison for Drug Trafficking and FirearmsRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Ian Chase, 28, of Littleton, New Hampshire was sentenced to serve 60 months in federal prison for unlawfully manufacturing methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.
Court documents and statements in court showed that on April 8, 2016, members of the Drug Enforcement Administration (DEA) arrested Chase at his former residence located in Bethlehem after discovering Chase was actively manufacturing methamphetamine in a shed located on the property. At the time of his arrest, Chase was in possession of a .25 caliber pistol. A search of the property resulted in the seizure of 77.98 grams of methamphetamine, five additional firearms, and numerous chemicals Chase utilized to manufacture methamphetamine. Under the terms of the plea agreement, Chase forfeited the firearms to the United States.
Chase was arrested on July 21, 2016 and pleaded guilty to the charges on December 1, 2016.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to target individuals who are manufacturing illegal drugs in New Hampshire,” said U.S. Attorney Murray. “While those who suffer from addiction need access to treatment, those who seek to manufacture methamphetamine and other deadly drugs will be prosecuted aggressively.
“This sentence reflects DEA’s strong commitment to bring to justice those that manufacture methamphetamine,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA and its local, state and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who manufactures this poison.”
The investigation was conducted by the: (1) DEA; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) Littleton Police Department; and (5) Bethlehem Police Department. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Little Rock Man Indicted After Producing Deadly Toxin RicinRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced Wednesday the indictment of Alexander Joseph Jordan, 21, of Little Rock, for possessing the deadly biological toxin ricin.
Jordan was initially arrested on a federal complaint on February 27, 2018. A federal grand jury returned an indictment against Jordan on Wednesday for one count of knowingly possessing ricin without obtaining a registration, as required by the Public Health Service Act. Jordan is currently in federal custody and will be seen by a United States Magistrate Judge at a later date.
“Any time there is information that a deadly substance like ricin is present in our communities, our law enforcement partners will work together to take immediate and decisive action to eliminate the threat,” Hiland said. “Now that the immediate threat to public safety has been contained, we turn our attention to prosecuting the person responsible for creating this dangerous situation.”
According to the complaint affidavit, late on February 22, paramedics and police officers were dispatched to Jordan’s residence on Horseshoe Loop in Little Rock following a 9-1-1 call that described Jordan in distress. In the early morning hours of February 23, officers transported Jordan to the University of Arkansas for Medical Sciences (UAMS), where he stated that he had ingested ricin. Ricin is a highly toxic, naturally occurring protein that is produced in the seeds of the castor oil plant. A dose of purified ricin powder the size of a few grains of common table salt can kill an adult human.
Jordan told police officers at the hospital that he produced two mason jars of the ricin mixture, and the ricin and production materials were still at his house. He stated that he learned how to make the substance on the internet and got the idea from watching the television show Breaking Bad. Jordan said he combined ingredients needed to make the ricin in a blender. Little Rock Fire Department (LRFD) hazardous material (HAZMAT) teams were immediately dispatched to the residence. At the residence LRFD located two small mason jars containing a white substance.
Later on February 23, members of the FBI and Arkansas National Guard Weapons of Mass Destruction, 61st Civil Support Team (CST), executed a federal search warrant at Jordan’s residence. There they located, in addition to the mason jars, a blender in a trash can. Tests conducted by the clinical microbiology supervisor at the public health laboratory at the Arkansas Department of Health on samples from the blender and both mason jars confirmed positive for ricin.
Agents also recovered an Amazon.com receipt for 50 castor beans and paperwork that appeared to be a shopping list and instructions for ricin production.
“Jordan produced and possessed ricin, a deadly and highly toxic substance, which could have severely affected the safety of our citizens,” SAC Upchurch said. “We appreciate the immediate response of our law enforcement partners and their combined and committed efforts to contain the threat and safeguard our community.”
A violation of possessing a select agent, in this case ricin, under Title 18, United States Code, Section 175b(c) and 42 CFR § 73.3, carries a maximum penalty of not more than five years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.
Multiple agencies, led by the FBI, assisted with this public health issue, including LRFD HAZMAT Team, Arkansas National Guard 61st CST, Saline County Sheriff’s Office, Arkansas State Police, Arkansas Department of Health, and UAMS Police Department. Assistant United States Attorney Stacy Williams is prosecuting the case.
Laplace Woman Indicted for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
SANDRA RAVEN, age 51, a resident of Laplace, Louisiana, was charged by a federal grand jury in a six Count Indictment for Wire Fraud and Aggravated Identity Theft, announced U.S. Attorney Duane A. Evans.
According to court documents, RAVEN owned and operated S & R Tax Service out of her home in Laplace, Louisiana. Beginning in 2012, RAVEN filed fraudulent tax returns with the IRS using stolen identities. The tax returns claimed false wages, and RAVEN directed the tax refunds and tax preparation fees to her custody and control without the knowledge or consent of the individuals named on the tax returns.
If convicted, the defendant faces 20 years of imprisonment as to Counts 1 through 3. As to Counts 4 through 6, the defendant faces a mandatory additional two-years of imprisonment to be served consecutively to any sentence imposed as to Counts 1 through 3. RAVEN also faces a $250,000 fine.
The case was investigated by the Internal Revenue Service, Criminal Investigations Division.
U.S. Attorney Duane Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant U. S. Attorney G. Dall Kammer, Deputy Chief of the Fraud Unit.
Justice Department Files Preemption Lawsuit Against the State of California to Stop Interference with Federal Immigration AuthoritiesRead the Press Release
In a speech to the California Peace Officers' Association’s Legislative Day, Attorney General Jeff Sessions today announced that the Justice Department has filed a legal action against the State of California, Governor of California Jerry Brown, and Attorney General of California Xavier Becerra, seeking both declaratory and injunctive relief based upon the enactment and implementation of certain provisions of three California laws—Assembly Bill 450 (AB 450); Senate Bill 54 (SB 54); and Assembly Bill 103 (AB 103)—which intentionally obstruct and discriminate against the enforcement of federal immigration law. The complaint contends that the laws in question are preempted by federal law and impermissibly target the Federal Government, and therefore violate the Supremacy Clause of the United States Constitution. As a result, the Justice Department is seeking to permanently enjoin these state statutes, which are contrary to federal law and interfere with federal immigration authorities’ ability to carry out their lawful duties. In addition, the Justice Department is continuing to review other related California enactments.
The complaint, accompanying motion for a preliminary injunction, and declarations from Department of Homeland Security and Department of State officials—filed last evening in the Eastern District of California—spell out in detail the extent to which each of these laws have interfered, and will continue to interfere, with federal law enforcement efforts.
AB 450 prohibits private employers from voluntarily cooperating with federal immigration officials—including officials conducting worksite enforcement efforts and other enforcement operations. It also requires that private employers notify employees in advance of a potential worksite enforcement inspection—despite clear federal law that has been on the books for approximately three decades that has no such requirements. An April 22, 2017, report on AB 450 compiled by the California State Assembly’s Committee on Judiciary states that the law is designed to frustrate “an expected increase in federal immigration enforcement actions.” California has demonstrated its intent to enforce this law: on Jan. 18, 2018, California Attorney General Becerra issued a warning to employers in the state that his office would “prosecute those who violate [AB 450] by voluntarily cooperating with Immigration and Customs Enforcement (ICE) efforts.” Additionally, failure to comply with AB 450 could result in a fine for the business owner ranging from $2,000-$10,000. California employers are thus caught between what many may feel is a civic duty to cooperate with the enforcement of federal law, and a state government that penalizes such lawful cooperation.
SB 54 restricts state and local law enforcement officials from providing information to federal immigration authorities about the release date of removable criminal aliens who are in their custody. These criminal aliens are subject to removal from the United States under federal immigration law, and SB 54 interferes with federal immigration authorities’ ability to carry out their responsibilities under federal law. SB 54 also violates 8 USC 1373, a law enacted by Congress, which promotes information sharing related to immigration enforcement. The state law also prohibits the actual transfer of criminal aliens to federal custody, which creates a dangerous operating environment for ICE agents executing arrests in non-custodial settings. In a declaration provided to the Court, ICE Deputy Director Thomas Homan states that these “at-large arrests. . .unquestionably involve a greater possibility of the use of force or violence by the target . . . and have greater access to weapons, exposing officers, the public, and the alien to greater risk of harm.”
Remarkably, with this law California attempts to shield from federal law enforcement removable criminal aliens who have committed crimes in the state of California and across the country. In doing so, California is releasing onto its streets those removable criminal aliens who have already shown a willingness to engage in criminal activity—as evidenced by their state or local detention for violating state law—and who therefore are most likely to commit crimes in the future.
AB 103 imposes a state-run inspection and review scheme of the federal detention of aliens held in facilities pursuant to federal contracts. This includes review of immigration processes and the circumstances in which aliens were apprehended, and also requires access to privileged federal records that are under ICE’s control. With this law, California is trying to regulate federal immigration detention, which it cannot do under the Constitution. California does not impose such an inspection and review scheme on other similar detention facilities that do not house civil immigration detainees—in other words, this is a special review regime that applies only to facilities that house civil immigration detainees. This different treatment shows that California is seeking to regulate the federal government, which is not permitted under well-established Supreme Court precedent.
“The Department of Justice and the Trump Administration are going to fight these unjust, unfair, and unconstitutional policies that have been imposed on you,” Attorney General Jeff Sessions today told law enforcement officers attending the California Peace Officers Association’s 26th Annual Law Enforcement Legislative Day, referencing AB 450, SB 54, and AB 103. “We are fighting to make your jobs safer and to help you reduce crime in America. And I believe that we are going to win.”
“Our duty at the Department of Homeland Security is to enforce and uphold the nation’s security laws as passed by the U.S. Congress and signed by the President,” said Secretary Kirstjen M. Nielsen for the Department of Homeland Security. “California has chosen to purposefully contradict the will and responsibility of the Congress to protect our homeland. I appreciate the efforts of Attorney General Jeff Sessions and the Department of Justice to uphold the rule of law and protect American communities.”
Incidents in Yellowstone National ParkRead the Press Release
Cody J. Cyson, of Minnetonka, Minnesota and Thomas L. Brown of East Hardwick, Vermont, were each charged with one count of entering a closed area and one count of interference with an agency function in Yellowstone National Park on March 7, 2018. Both individuals were contacted by park law enforcement in the Stephens Creek Administrative Facility on March 6, 2018 just after 5:00 am. Cyson and Brown has used a steel tube and chain to secure themselves to the squeeze chute in order to disrupt the shipping of the buffalo in the pens.
In a separate incident, Hanna F. Ponder, of Donnelly, Idaho, was charged on March 7, 2018, with one count of entering a closed area in Yellowstone National Park. Ponder was located by law enforcement in the bison closure of the Reese Creek drainage area during the morning hours of March 6, 2018. Ponder stated she had been walking the creek looking at birds.
All three individuals made their initial appearance in U.S. District Court on March 7, 2018 where the government made a motion for detention of the individuals and a bond hearing is scheduled for March 12 at 10:30 a.m.
Illegal Alien Convicted on Multiple ChargesRead the Press Release
HOUSTON – A 57-year-old an illegal alien from Mexico has pleaded guilty to harboring illegal aliens, using a firearm during a crime of violence, illegal re-entry and being an alien in possession of a firearm, announced U.S. Attorney Ryan K. Patrick.
J. Matias Picazo-Lucas was convicted today.
On Aug. 3, 2017, an individual contacted Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) to report that a person had been smuggled into the United States and was being held against his will in Houston. That person advised that the unknown smugglers were demanding money in return for the release of the alien.
An undercover agent called the smuggler and arranged to meet him at a grocery store on Bellaire Boulevard to conduct a buyout of the relative. Law enforcement was on the scene when Picazo-Lucas arrived with two aliens who were being held. The agent and Picazo-Lucas discussed the payment, after which time authorities took Picazo-Lucas into custody. At the time of his arrest, he was found to be carrying a loaded .38 caliber pistol.
The two aliens were here illegally from Guatemala and indicated Picazo-Lucas and another individual, subsequently identified as Omar Picazo-Torres, had transported them to Houston in a tractor-trailer. Picazo-Lucas and Picazo-Torres held the hostages at gunpoint in order to intimidate them and prevent their escape.
The conspirators made phone calls to the person who had reported the kidnapping and other friends and family members of the hostages demanding payment for the release of the hostages.
U.S. District Judge Keith Ellison accepted the plea today and has set sentencing for May 24, 2018. At that time, Picazo-Lucas faces a total of a minimum five years and up to life for the two firearms convictions, another 10 years for harboring aliens and a maximum of 20 years on the illegal re-entry conviction. Each count carries a potential fine of up to $250,000.
Mexican National Omar Picazo-Lucas, 19, remains a fugitive and a warrant has been issued for his arrest. Anyone with information about his whereabouts is asked to contact HSI at 866-DHS-2-ICE.
HSI, Brazoria County Sheriff’s Office and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Douglas Davis and Kevin Lear are prosecuting the case.
Heroin Dealer Arrested in Morgan County Sentenced to Federal PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that William Joshua Stowe, age 27, of Madison, Georgia, was sentenced to 70 months imprisonment for possession with intent to distribute heroin and possession of a firearm by a convicted felon. The sentence was imposed by Senior United States District Court Judge C. Ashley Royal in Athens, Georgia on March 7, 2018.
There is no parole in the federal system.
In his plea agreement, Mr. Stowe admitted that on December 14, 2016, Morgan County Sheriff’s Office deputies served a search warrant at his house in Madison after a confidential source bought heroin there. In executing the warrant, the police seized 6 grams of heroin, two shotguns, a rifle, a 9mm pistol, and various drug paraphernalia. On the date of his arrest, Mr. Stowe had two prior felony convictions for burglary and a felony theft conviction. The police also arrested Mr. Stowe’s half-brother, Edward Vance Tallon, for possession of a firearm by a convicted felon. Mr. Tallon has pled guilty, and his sentencing is scheduled for April 11, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October, 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
“Guns and drugs are a recurring theme in our local communities and in our nation. It is the goal of my office to make substantial penitentiary sentences for those who deal in these items a recurring part of that theme as well,” said United States Attorney Peeler.
The case was investigated by the Morgan County Sheriff’s Office, the Jasper County Sheriff’s Office, and the Putnam County Sheriff’s Office. Assistant United States Attorney Peter D. Leary prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Harvey Women Sentenced for Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
United States Attorney Duane A. Evans announced that JOYCE D. GAINES, 63, and RACQUEL WALKER, age 32, of Harvey, Louisiana, were sentenced today after previously pleading guilty to conspiracy to aid and assist in the preparation of a false or fraudulent tax return.
U.S. District Judge Sarah S. Vance sentenced GAINES to 30 months’ incarceration, followed by three years of supervised release. Judge Vance sentenced WALKER to 18 months’ incarceration, followed by one year of supervised release. Judge Vance also ordered GAINES and WALKER to pay restitution to the IRS in the amount of $180,408.00.
According to court documents, from in or about January 2011 and continuing though in or about December 2014, GAINES and her daughter, WALKER, operated Tax Town, a business operating in Gretna, Louisiana, which provided tax return preparation services for a fee. GAINES and WALKER filed false tax returns for clients that claimed a variety of fraudulent losses and deductions in order to obtain refunds to which the clients were not legally entitled. The total loss and restitution amount owed to the IRS for the fraudulent tax returns filed by GAINES and WALKER is approximately $180,408.00.
U.S. Attorney Evans praised the work of the IRS-Criminal Investigation in investigating this matter. Assistant United States Attorney Loan “Mimi” Nguyen is in charge of the prosecution.
Guatemalan Sentenced for Illegal Use of a Social Security NumberRead the Press Release
YONI LOPEZ-ROJAS, age 25, a citizen Guatemala, was sentenced today after pleading guilty to a one-count bill of information for illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. District Judge Sarah Vance sentenced YONI LOPEZ-ROJAS to a sentence of time served. Following the completion of his sentence, YONI LOPEZ-ROJAS will surrender to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Glens Falls Man Admits Illegal Gun SaleRead the Press Release
ALBANY, NEW YORK – David H. Carlton, age 47, of Glens Falls, New York, pled guilty today to selling a firearm to a felon.
The announcement was made by United States Attorney Grant C. Jaquith; Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and New York State Police Superintendent George P. Beach II.
As part of his plea, Carlton admitted that in the spring of 2016, he sold a Mossberg shotgun to George Allen, whom he knew to be a felon. Carlton purchased the shotgun online for $175 and sold it to Allen for $250. Allen was found with the shotgun – which was loaded -- in his vehicle during a traffic stop by New York State Police on August 1, 2016 in Queensbury, New York.
Allen pled guilty on June 5, 2017 to being a felon in possession of a firearm and ammunition, and is scheduled to be sentenced on April 3, 2018. Carlton’s sentencing is scheduled for August 1, 2018 before Senior United States District Judge Frederick J. Scullin, Jr..
Carlton and Allen each face up to 10 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Fugitive Apprehended After 20 YearsRead the Press Release
BOSTON – Luis Alberto Solano-Pimental, 51, was arrested yesterday in Rhode Island after eluding law enforcement for 20 years. He appeared in federal court in Boston before U.S. Magistrate Judge Jennifer C. Boal, who ordered him detained.
In 1997, Solano-Pimental pleaded guilty to passport fraud in federal court in Boston, but failed to appear on his scheduled sentencing date. Solano-Pimental remained a fugitive until he was arrested yesterday in Warwick, R.I.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; John Gibbons, United States Marshal for the District of Massachusetts; and Jamie A. Hainsworth, United States Marshal for the District of Rhode Island, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Four Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, Aggravated Identity Theft, and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging BERNABE RAMIREZ-RAMIREZ, age 22, of Mexico, DOMINGO BARTOLON-LOPEZ, age 29, of Mexico with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging LUIS CESAREO ALVAREZ-IBARRA, age 30, of Mexico, with False Representation of a Social Security Account Number, Aggravated Identity Theft, and Illegal Reentry.
Furthermore, a federal grand jury in Raleigh has returned an indictment charging FAOZI SALEH AYAYAH, age 25, of Yemen, with Illegal and Unlawful Alien in Possession of a Firearm.
If convicted of Illegal Reentry of a Deported Alien, RAMIREZ-RAMIREZ, previously deported and found in Sampson County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal Reentry subsequent to a felony conviction, BARTOLON-LOPEZ, previously deported and found in Wayne County, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal and Unlawful Alien in Possession of a Firearm, AYALAH, found in Halifax County, would face maximum penalties of ten years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, Aggravated Identity Theft, and illegal reentry, ALVAREZ-IBARRA, previously deported and found in Robeson County, would face maximum penalties of nine years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Former Office Manager Pleads Guilty to Federal Charge for Embezzling More Than $1.5 Million from EmployerRead the Press Release
WASHINGTON – The former office manager of a trade association management company pled guilty today to a federal charge of wire fraud for embezzling more than $1.5 million from the firm, announced U.S. Attorney Jessie K. Liu and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Leunea D. Myers, 38, of Clinton, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper scheduled sentencing for June 28, 2018. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Myers faces a likely range of 51 to 63 months in prison and a fine of up to $150,000. The plea agreement calls for her to pay $1,550,075 in restitution to her former employer and an identical amount in a forfeiture money judgment.
According to a statement of offense filed as part of the plea, Myers worked from February 2015 to November 2017 as the office manager and bookkeeper for a company identified in court documents as “Company A.” This company is a professional trade association management company in the District of Columbia that has been in business for more than 40 years. Myers’s responsibilities included tracking client billings and receipts, depositing money, and reconciling clients’ bank accounts, drafting checks, and preparing financial statements.
From April 2015 through November 2017, Myers embezzled funds by making unauthorized charges on company credit cards and by writing fraudulent checks directly to herself or to pay third parties to pay bills that she owed.
In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Special Assistant U.S. Attorney Sean Welsh, who assisted with forfeiture issues; former Paralegal Specialist Kate Abrey, and Assistant U.S. Attorney John P. Marston, who is prosecuting the case.
Former DOJ Attorney Sentenced to 30 Months in Prison for Obstruction of Justice and Interstate Transportation of Stolen PropertyRead the Press Release
SAN FRANCISCO– Jeffrey Wertkin was sentenced this afternoon to 30 months in prison for obstruction of justice and transportation of stolen property, announced Acting United States Attorney Alex G. Tse; Department of Justice Office of the Inspector General, Fraud Detection Office Special Agent in Charge Lewe Sessions; and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Maxine M. Chesney, U.S. District Judge, handed down the sentence after Wertkin pleaded guilty to the charges last November.
“Mr. Wertkin has betrayed the trust placed in him by the Department of Justice, his colleagues, and the American people,” said Acting U.S. Attorney Alex Tse. “Today’s sentence hopefully restores the confidence in public servants who take an oath to serve their government and demonstrates that no one is above the law. Those who run afoul of the rules established to ensure the proper function of government will be prosecuted without fear or favor.”
“Wertkin abused his position for personal gain and violated the nation’s trust. The DOJ-OIG will continue to work tirelessly with its partners at the FBI and the U.S. Attorney’s Offices to ferret out corruption and hold accountable those who engage in theft and obstruction of justice,” stated DOJ-OIG Fraud Detection Office Special Agent in Charge Lewe F. Sessions.
According to his plea agreement, Wertkin, 41, of Washington, D.C., worked for the Civil Fraud Section of the Department of Justice from October 24, 2010, until April 12, 2016. During that time, he worked on qui tam actions pursuant to which the government investigated companies suspected of breaking the law. Federal courts often order qui tam complaints “sealed” and therefore kept from public view until it is appropriate for the complaints to become public. In his plea agreement, Wertkin admitted that during the last month of his employment as a trial attorney with the Department of Justice, he began secretly reviewing and collecting sealed qui tam complaints that were not assigned to him. Further, Wertkin has admitted that after he left the Department of Justice, he used the stolen information improperly to solicit clients that were the subject of the sealed complaints. Wertkin acknowledged that in one instance, he was successful in using the information from a sealed complaint to convince the company that it was the subject of a lawsuit and to retain him as an attorney to represent it in the lawsuit. Wertkin also acknowledged he lied to the Department of Justice in documents he completed during his exit process regarding whether he stole the complaints.
The plea agreement also describes two occasions in which Wertkin attempted to sell information to companies that were the subject of government investigations. On November 30, 2016, Wertkin offered to sell a complaint to the corporation named in the lawsuit. Then, between November 30, 2016, and January 31, 2017, Wertkin engaged in multiple conversations with a representative of the corporation to negotiate the sale of the sealed complaint for $310,000. Similarly, on January 23, 2017, Wertkin contacted a second corporation and offered to mail to the representative a copy of the face sheet of the complaint. Wertkin actually mailed a redacted copy of the face sheet and promised that, for a fee, he would provide the entire complaint.
Wertkin was arrested on January 31, 2017, after traveling from the Washington, D.C. Area to the San Francisco Bay Area with a copy of a sealed complaint. On that day, Wertkin believed he was meeting at a Cupertino hotel with a representative from a company and that he was exchanging the complaint for a duffel bag filled with $310,000. In truth, Wertkin was meeting with an undercover employee of the FBI. Wertkin described the meeting in his sentencing memorandum as follows: “As part of his escapist fantasy, Mr. Wertkin donned a wig and sunglasses and went to a hotel in Sunnyvale with complaint in hand, whereupon he was arrested by the FBI.”
Further, Wertkin admitted that after his arrest, he took steps in an effort to obstruct the ongoing criminal investigation. Specifically, after being released from custody, Wertkin returned to his office, purportedly to retrieve his personal belongings, and removed and destroyed documents from his office that he knew could further incriminate him. Wertkin also acknowledged he “placed two complaints in a used FedEx envelope in an attempt to make it appear that sealed complaints had been accidentally mailed to him by a DOJ employee.” Wertkin acknowledged he took these and additional other steps in an effort to corruptly obstruct the ongoing investigation and proceedings against him.
In sum, on November 1, 2017, Wertkin was charged by information with two counts of obstruction of justice, in violation of 18 U.S.C. § 1505, and one count of interstate transportation of stolen goods, in violation of 18 U.S.C. § 2314. Pursuant to his plea agreement, Wertkin pleaded guilty to all counts.
Assistant U.S. Attorneys Robin L. Harris and William Frentzen are prosecuting the case. The prosecution is the result of an investigation by the FBI and the Department of Justice Office of the Inspector General.