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Thursday 1 March 2018
Felon Who Shot at Police Officers and Killed Police Dog Sentenced to 10 Years in Federal PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Almando Abarca, 26, of Palmer, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve 10 years in federal prison for being a felon in possession of a firearm.
Abarca was already a convicted felon (Burglary in the Second Degree) in September 2016 when he was involved in an incident where he fled from Palmer police officers at a high rate of speed in a vehicle towards Anchorage. At approximately Mile 36 of the Glenn Highway, Abarca slowed the vehicle down and jumped out with a handgun in his hand. The Palmer police officers had been joined by this time by an Alaska State Trooper and his police canine “Helo.” As he was being pursued on foot, Abarca turned and shot Helo several times and exchanged gunfire with the officers. The officers returned fire at Abarca and were able to wound and disable him. Abarca was then found in possession of a .40 caliber semi-automatic handgun. The officers were unhurt, but Helo later died from the gunshot injuries inflicted by Abarca.
Abarca was indicted by a federal grand jury in October 2016 for being a felon in possession of a firearm. He was separately charged by a state grand jury that same month with two counts of attempted murder, two counts of assault, and one count of felony destruction of a police dog. Abarca plead guilty to the federal charge in October 2017, but proceeded to trial on the state charges in late January 2018. He was convicted by a state trial jury on all counts, and is awaiting sentencing on the state convictions.
In imposing the 10-year sentence on Abarca, Judge Burgess noted that the sentence was the statutory maximum sentence which he could impose and that the applicable federal sentencing guidelines actually called for a much higher sentence. Judge Burgess told Abarca that he was “lucky to be alive and lucky that the court was limited as to the sentence which it could impose”.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Palmer Police Department, and the Alaska State Troopers. This case was prosecuted by Assistant U.S. Attorney Joseph Bottini.
Eleven Members of Lakeland Drug Trafficking Organization Charged with Causing Four Overdose Deaths, an Overdose Resulting in Serious Bodily Injury, and Associated Heroin and Fentanyl TraffickingRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of a 10-count superseding indictment charging 11 individuals with conspiracy to distribute more than one kilogram of heroin, 400 grams of fentanyl, and 100 grams of a fentanyl analogue, the distribution of which resulted in four deaths and serious bodily injury to a victim. Hasan Pearson, a/k/a “Julio,” a/k/a “Hoov” (35, Lakeland); Salik Stevens, a/k/a “Carlito,” a/k/a “Dough” (35, Lakeland); William Jones, a/k/a “Book” (38, Mulberry); Dominic Matthews, a/k/a “Gargamel” (30, Lakeland); Ladarius Oglesby, a/k/a “Hitta” (23, Lakeland); Naboris Lampkin, a/k/a “Beezy” (32, Lakeland); Jeminine Poe (37, Lakeland); Prince Grant (36, Lakeland); Justin Lee Martin (33, Lakeland); John Evit Brown (51, Lakeland); and Dalyshia Dexter (27, Lakeland) each face a maximum penalty of life in federal prison.
According to the indictment, from at least March 2016 through August 30, 2017, these 11 individuals were part of a conspiracy to distribute heroin, fentanyl, and fentanyl analogues in the Middle District of Florida. During the conspiracy, the distribution of these substances resulted in four deaths and serious bodily injury to another individual.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Polk County Sheriff’s Office, the Lakeland Police Department, the Pasco Sheriff’s Office, the Hardee County Sheriff’s Office, and the U.S. Postal Inspection Service. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Donora Man Pleads Guilty to Operating a Cocaine Stash House for Drug Trafficking OrganizationRead the Press Release
PITTSBURGH – A resident of Donora, Pennsylvania, pleaded guilty in federal court to a narcotics charge, United States Attorney Scott W. Brady announced today.
Anthony Davis, 41, pleaded guilty to one count of possession with intent to distribute cocaine before United States District Judge Mark Hornak.
In connection with the guilty plea, the court was advised that from approximately April 2017 to December 2017, Anthony Davis operated a cocaine "stash house" for the Mendoza/Lightfoot Drug Trafficking Organization. Davis stored large amounts of cocaine and marijuana, along with drug production and distribution materials, at his personal home in Donora. Davis ran this operation with alleged Mendoza/Lightfoot DTO member and co-defendant Brandon Thomas.
On December 13, 2017, FBI Special Agents, Task Force Officers, as well as members of the Pennsylvania State Police executed a search warrant at Davis’ home. During the search, investigators recovered approximately five ounces of cocaine, large amounts of marijuana, approximately $11,025 in cash, and a large hydraulic kilo press in the basement of Davis’ home. As part of his guilty plea, Davis agreed to forfeit the items seized at his home on that day.
Judge Hornak scheduled sentencing for June 8, 2018. The law provides for a maximum sentence of up to 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior record, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation - The Monongahela Valley Residential Agency, and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the guilty plea in this case.
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to stealing the identity of a U.S. citizen from Puerto Rico.
Wilkin Pena Soto, 30, pleaded guilty to one count of passport fraud and one count of aggravated identity theft. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for June 4, 2018.
In August 2017, Pena Soto applied for a passport at an Attleboro Post Office purporting to be a U.S. citizen. On the application, he represented that the name, Social Security number, and date of birth of a Puerto Rican man were his. He supported the application with a birth certificate and Massachusetts driver’s license in the U.S. citizen’s name. Pena Soto also committed aggravated identity theft in connection with the passport application.
The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release, and a fine of up to $250,000. The charge of passport fraud provides for no greater than 10 years in prison, three years of supervised release, and a fine of $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; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Dominican National Charged with Identity TheftRead the Press Release
BOSTON – A Dominican national was charged today in federal court in Boston in connection with misusing a Social Security number and identity theft.
Jose Gonzalez Vizcaino was indicted on two counts of misuse of a Social Security number and one count of aggravated identity theft. Vizcaino was previously charged by complaint and arrested in February 2018.
According to court documents, on March 11, 2014, Vizcaino walked into a branch of the Registry of Motor Vehicles and used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a Massachusetts learner’s permit. On May 19, 2014, Vizcaino returned to the Registry of Motor Vehicles and again used the name, date of birth, and Social Security number of the United States citizen to apply for a Massachusetts driver’s license.
The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory two years in prison, which must run consecutive to any other imposed term of imprisonment. Vizcaino will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Doctor Pleads Guilty in Manhattan Federal Court to Scheme to Illegally Distribute OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that Dr. EMMANUEL LAMBRAKIS, a state licensed doctor, pled guilty today to writing medically unnecessary prescriptions for oxycodone. LAMBRAKIS pled guilty earlier today before U.S. Magistrate Judge Gabriel W. Gorenstein, and will be sentenced before U.S. District Court Judge William H. Pauley III at a later date.
U.S. Attorney Geoffrey S. Berman said: “Dr. Emmanuel Lambrakis took a solemn oath to ‘first do no harm.’ Instead, as he admitted in federal court today, Lambrakis chose to write prescriptions for unnecessary, addictive, and possibly fatal opiates for his ‘patients.’ Today, this doctor who used his position as cover for what amounted to no more than a common drug dealing operation, faces serious prison time for his actions.”
According to allegations in a Complaint and other documents filed in federal court, as well as statements made in public court proceedings:
Oxycodone is a highly addictive, narcotic opioid that is used to treat severe and chronic pain conditions. Oxycodone prescriptions are in high demand and have significant cash value to drug dealers. In fact, oxycodone tablets can be resold on the street for thousands of dollars. For example, 30-milligram oxycodone tablets have a current street value of approximately $20 to $30 per tablet in New York City, with street prices even higher in other parts of the country. A single prescription for 120 30-milligram tablets of oxycodone can net an illicit distributor $2,400 in cash or more.
From at least approximately January 2011 until December 2016, LAMBRAKIS operated two medical clinics in Queens, New York, where LAMBRAKIS wrote numerous prescriptions for large quantities of oxycodone in exchange for cash payments. LAMBRAKIS typically charged $150 in cash for “patient visits,” and these visits often involved numerous “patients” being seen by LAMBRAKIS at the same time in the same examination room. During these “patient visits,” LAMBRAKIS would perform simple, perfunctory body manipulations (such as rotating the patient’s arm or leg) and engage in little or no conversation with the alleged “patient.” Nonetheless, LAMBRAKIS would then cause the patient to receive a prescription for a large quantity of oxycodone, most often 120 30-milligram tablets or more.
Between January 2011 and the present, LAMBRAKIS wrote thousands of oxycodone prescriptions, resulting in the distribution of more than a million oxycodone tablets, which have a street value in the tens of millions of dollars. On numerous occasions, LAMBRAKIS wrote 30 or more prescriptions for 30-milligram oxycodone pills in a single day. As a result of LAMBRAKIS’s actions, it is estimated that LAMBRAKIS collected more than $2 million in fees from his “patients.”
* * *
LAMBRAKIS, 70, of Manhattan, pled guilty to one count of conspiring to distribute and possess with intent to distribute oxycodone. This offense carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA’s Tactical Diversion Squad, which is comprises agents and officers from the DEA, the NYPD, the New York State Police, Town of Orangetown Police Department, Rockland County Drug Task Force, Westchester County Police Department, and New York City Department of Investigation. He also acknowledged the assistance of the Department of Health & Human Services, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the New York City Human Resources Administration, and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kimberly J. Ravener and Jessica K. Fender are in charge of the prosecution.
Delevan Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John P. Cutler, 35, of Delevan, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to receipt of child pornography following a prior conviction. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between July 2016 and September 26, 2016, the defendant searched for and downloaded images and videos of child pornography online. Cutler saved the child pornography on a laptop computer. A forensic examination of the computer revealed approximately 1875 images and 199 videos of child pornography. Some of the images and videos depicted prepubescent minors as well as depictions of violence against the minors.
The defendant was previously convicted in New York State court of Criminal Sexual Act in the Second Degree.
The plea is the result of an investigation by agents of the Federal Bureau of Investigation, under the direction of Kevin P. Lyons, Acting Special Agent-in-Charge, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
Sentencing is scheduled for June 11, 2018, at 10:00 a.m. before Judge Vilardo.
Dark Web Gun Trafficker from Grass Valley Indicted for Unlawful Dealing in Firearms and Possession of Unregistered FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Michael Paul Grisham Smith, 44, of Grass Valley, charging him with unlawful dealing and manufacturing in firearms and unlawful possession of unregistered firearms, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns that have no serial number. The firearms vendor on the dark web was in fact an undercover law enforcement agent working for Homeland Security Investigations (HSI). Between December 1, 2017, and February 15, 2018, Smith manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.
If convicted, Smith faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Columbia Nurse, Business Owner Pleads Guilty to Fraudulent PrescriptionsRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., nurse and business owner pleaded guilty in federal court today to illegally obtaining prescription drugs.
Elisabeth Joan Trumbower, 41, of Columbia, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges her with obtaining a controlled substance by misrepresentation, fraud, forgery, deception or subterfuge.
Trumbower, a registered nurse and owner of Pela Cura Anti-Aging and Wellness in Columbia, employed a radiologist identified in court documents as “M.M.” On Nov. 30, 2016, M.M. reported to the Columbia Police Department that Trumbower had forged his name and used his DEA registration number to fraudulently obtain prescriptions. M.M. told investigators that a medical colleague at the Fairview Clinic had called him concerning prescriptions for Adderall that he had allegedly written to Trumbower. M.M. told his colleague that he had never written any Adderall prescriptions.
By pleading guilty today, Trumbower admitted that she used M.M.’s prescription pad, DEA number and a forged signature to obtain prescriptions of Adderall on 25 occasions, at 10 different locations, between July and November 2016. The prescriptions were made out to Trumbower with directions to take one tablet, three times daily for cancer related fatigue.
Under federal statutes, Trumbower is subject to a sentence of up to four years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
Chula Vista Man Admits Being Source of Fentanyl that Resulted in Overdoses of Five People in AlpineRead the Press Release
Assistant U.S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – March 1, 2018
SAN DIEGO – A Chula Vista man pleaded guilty in federal court today to drug crimes, admitting that the fentanyl he distributed led to the accidental non-fatal overdoses of five people in Alpine, some of whom were revived by first responders with Naloxone.
Joel Rodriguez entered his plea before U.S. Magistrate Judge Jan Adler to conspiracy to distribute fentanyl and possession of cocaine with intent to distribute.
In his plea agreement, Rodriguez admitted that he obtained fentanyl from Mexico and then delivered it to another person for distribution in San Diego. Eventually, Rodriguez’s fentanyl led to the accidental overdoses of five individuals in Alpine on or about December 7, 2017. The victims, who believed that they were using cocaine, ended up in the hospital, including two who had to be treated at the scene with Naloxone – a drug that reverses the depression of the central nervous system and respiratory system caused by opioids.
Rodriguez also admitted that he drove a vehicle containing 55 pounds of cocaine on May 17, 2017 from San Diego County to Riverside County to deliver the bulk cocaine to another person for further distribution. According to court records, on December 12, 2017, during the course of a San Diego Sheriff's Department narcotics search warrant at Rodriguez’s residence following the overdoses in Alpine, Sheriff’s deputies along with federal agents from Drug Enforcement Administration and Homeland Security Investigations found additional cocaine and fentanyl.
“I am sending the strongest warning possible to anyone who is struggling with drug addiction,” said U.S. Attorney Adam Braverman. “We have seen a dramatic surge in deaths and international trafficking activity related to fentanyl, which is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount touching the skin can be deadly. Every time you use drugs, you are playing Russian Roulette. These people who overdosed thought they were using cocaine. But there’s no way to know. You may think you’re going to get high, but you’re really going to get low, as in six feet under.”
“This was a horrendous crime that resulted in five drug overdoses in one community,” said Sheriff William Gore. “The threat of fentanyl and other drugs being sold in our communities endangers our young people and wreaks havoc in the lives of more than just those who use them. It is imperative that we continue to proactively investigate and prosecute the individuals who profit from the destruction of others.”
“Rodriguez’s guilty plea serves to remind the public of the serious dangers linked to transnational smuggling activity along the U.S/.Mexico border,” said David Shaw, Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “HSI and our law enforcement partners will continue to investigate and bring to justice those involved in the trafficking and distribution of these deadly drugs into our communities.”
“This is exactly the kind of investigation needed in the face of our nation’s current opioid crisis,” said DEA Acting Special Agent in Charge Steve Woodland. “Targeting the sellers of this poison should send a clear message that San Diego law enforcement will not tolerate these criminals in our communities.”
Sentencing is scheduled for May 21, 2018 at 9:00 a.m. before U.S. District Court Judge Anthony J. Battaglia.
DEFENDANT Criminal Case No.18CR0164AJB
Joel Rodriguez 29 Chula Vista, California
SUMMARY OF CHARGES
Count 1: Possession of Cocaine With Intent to Distribute, in violation of 21 U.S.C. §841
Maximum penalties: 10 year minimum mandatory; life maximum; fine of $1 million; supervised release of at least 3 years.
Count 2: Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. §841 and 846
Maximum penalties: 20 years maximum; fine of $250,000; supervised release of three years.
AGENCIES
San Diego District Attorney’s Office
San Diego Sheriff’s Department
Homeland Security Investigations
U.S. Drug Enforcement Administration
Checotah Man Sentenced to 35 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jenadiah Ray Barnes, age 39, of Checotah, Oklahoma, was sentenced to 35 months imprisonment, and 8 years supervised release for Failure To Register As Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3). The charge arose from an investigation by the Cherokee Nation Marshal’s Service, the McIntosh County Sherriff’s Office, the Federal Bureau of Investigation, and the U.S. Marshals Service.
The Indictment alleged that from in or about February 2017, the exact date being unknown to the Grand Jury, until on or about August 1, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, Jenadiah Ray Barnes, a/k/a Jenediah Ray Barnes, a/k/a Jedediah Ray Barnes, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Tennessee in Wilson County on or about October 19, 1998, for the offense of Conspiracy to Commit Rape of a Child, resided in Indian Country, and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
United States Attorney Brian J. Kuester said, “The law requires convicted sex offenders to register with the appropriate law enforcement agency. This allows law enforcement agencies to know where in their respective jurisdictions sex offenders reside. Because of a cooperative effort involving tribal, county, and federal law enforcement agencies, the defendant was located and will be held accountable for his failure to register.”
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 Edward Snow represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
California Woman Sentenced for Distributing Pounds of Methamphetamine in Great Falls and LewistownRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 50-year old Jody Dowd Wooten of Yuba City, California, was sentenced to 174 months in prison, five years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
In March of 2017, the Russell Country Drug Task Force received information regarding a woman distributing methamphetamine in Great Falls, Montana. Over the next two months, the task force purchased methamphetamine from this woman, and further identified her methamphetamine supplier as the defendant, Jody Wooten.
On June 15, 2017, through additional investigation, detectives located Wooten in Lewistown, Montana. Detectives had acquired information that Wooten possessed a large amount of methamphetamine, and had recently distributed methamphetamine to various people in Great Falls and Lewistown. Officers observed Wooten driving through Lewistown and stopped her car. After finding she was the sole occupant of the car, officers obtained a search warrant and searched Wooten’s car.
During the subsequent search, detectives seized $9,319.00, as well as 20 metal cans in a black bag. A further search of the cans revealed approximately eight pounds of methamphetamine and 20 pounds of marijuana. The DEA lab analyzed the methamphetamine and determined it contained 3502.6 grams of actual methamphetamine. Wooten is being held responsible for possessing eight pounds of methamphetamine with the intent to distribute it back into Montana communities. That converts to 28,016 individual dosage units of the drug that could have reached drug users in Montana.
Wooten has an extensive criminal history that includes prior felony convictions for narcotics, burglaries, and embezzlement.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by Homeland Security Investigations and the Russell Country Drug Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
CFO of New Haven Biotech Firm Charged with Embezzling Nearly $1 MillionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that THOMAS MALONE, 48, of New Haven, was arrested today on a criminal complaint charging him with embezzling nearly $1 million from a New Haven biotech company that receives federal research grants.
MALONE appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $50,000 bond.
As alleged in court documents, MALONE was the chief financial officer (CFO) of Artificial Cell Technologies, Inc. (ACT) of New Haven, a small biotech company that is currently working on developing better ways to deliver malaria and Respiratory Syncytial Virus vaccines to affected populations. In addition to receiving funding from private investors, ACT has received approximately $4.1 million in grants from the National Institutes of Health (NIH) since 2008. As the CFO, MALONE’s responsibilities included collecting, posting, and depositing investor and grant funds; tracking and reporting grant expenditures; managing accounts payable and cash disbursements; facilitating payroll; reconciling ACT credit card and bank accounts; and providing overall financial management.
It is alleged that in November 2016, ACT’s chief executive officer discovered that MALONE was paying himself approximately $660,000 in annual salary, far above the approximately $281,000 in salary he was entitled to receive. Upon further review of payroll and other financial records, ACT’s CEO discovered that, for several years, MALONE had been writing checks to himself that were disguised as bonuses, that he had been giving himself unauthorized additional salary payments, that he had been using the ACT credit card for personal expenditures, and that he had used ACT’s funds to make unauthorized donations to an organization that MALONE personally supported. A subsequent forensic audit revealed that, between 2012 and 2016, MALONE had embezzled approximately $950,000 from ACT.
The complaint charges MALONE with theft from a program involving federal funds, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Health and Human Service, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Buffalo Man Pleads Guilty to Bank Fraud and I-D TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ricky Butler, 41 of Buffalo, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to conspiracy to commit bank fraud and aggravated identity theft. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys MaryEllen Kresse and Jonathan Cantil, who handled the case, stated that between July 2013 and January 2014, the defendant conspired with others, including Randy Jarrett, Tamika Favors, Catherine Jarrett, Teria Baker, and Danielle Hamilton, fraudulently to obtain and use unauthorized access devices, namely credit cards, without the knowledge or authorization of the true account holders. Butler used the true account holder’s personal identifying information and account access information to contact financial institutions and have new or replacement credit cards issued to addresses in the Western District of New York and elsewhere. During the course of the scheme, Butler took over 59 credit card accounts. Those credit cards were used by the defendant and the other conspirators to make, and to attempt to make, purchases at Walmart stores and other retail establishments totaling nearly $1,084,000.
Throughout the scheme, the defendant controlled all credit cards, determined where all credit cards would be used to make purchases, and directed Tamika Favors, Teria Baker, Danielle Hamilton, and others to forge the signature of the name on each card to finalize purchases. Butler also maintained control of all gift cards purchased, directed all subsequent sales of the gift cards, and received the majority of the proceeds from the gift card sales.
Randy Jarrett, Tamika Favors, Catherine Jarrett, Danielle Hamilton, and Teria Baker have all been convicted.
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of acting Inspector-in-Charge Ray Moss of the Boston Division; and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Sentencing is scheduled for June 8, 2018, at 10:00 a.m. before Judge Vilardo.
Boston Man Sentenced for Distributing Heroin and FentanylRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for his role in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
Jancer Soto, 27, was sentenced by U.S. District Court Judge Indira Talwani to five years of probation. In October 2017, Soto pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Soto was arrested and charged along with approximately 20 co-defendants.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Fernando Hernandez and Jose Antonio Lugo-Guerrero. Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston and was assisted by Soto and approximately seven others. It is alleged that Lugo Guerrero supplied Hernandez with drugs and that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
Hernandez pleaded guilty and was sentenced on Feb. 26, 2018, to 188 months in prison. Lugo-Guerrero pleaded not guilty and is scheduled for trial on Sept. 10, 2018.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; Bridgewater Police Chief Christopher Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Blue Springs Man Charged with Illegally Possessing Firearm at Elementary SchoolRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man was charged in federal court today with illegally possessing a firearm he carried into an elementary school building.
Shaunee Burkhart, 33, of Blue Springs, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Burkhart remains in federal custody pending a detention hearing on Tuesday, March 6, 2018.
Today’s federal criminal complaint charges Burkhart with one count of being a drug user in possession of a firearm and one count of possessing a firearm in a school zone.
According to an affidavit filed in support of the criminal complaint, a secretary at James Walker Elementary School in Blue Springs contacted the Blue Springs School District Department of Public Safety to report a suspicious person on Wednesday morning, Feb. 28, 2018. The secretary reported that Burkhart, a parent of students at the school, entered the school at approximately 10:08 a.m.
Burkhart used one of the school’s telephones to contact someone to request a ride. While on the phone, the secretary told officers, Burkhart appeared to be recording himself with an electronic tablet. When Burkhart completed the call, he left the school building and sat on a bench outside of the front entrance. The secretary told officers she felt uncomfortable and nervous about Burkhart hanging around the school. Burkhart was acting in a way that the secretary believed was strange and out of the ordinary.
When officers responded to the school, they saw Burkhart walking from the front door. Burkhart appeared to be smoking something, the affidavit says, and an officer smelled the odor of marijuana. As the officers approached, Burkhart sped up the pace of his walk, crossed the street and went behind some trees.
When the officers contacted Burkhart, the affidavit says, he acted nervous and jittery. An officer saw a loaded Taurus 9mm semi-automatic pistol in Burkhart’s rear waistband. The pistol was removed by the officer. In addition, the affidavit says, a red package of cigarettes in Burkhart’s front left pants pocket contained a marijuana cigarette.
Moments into the officers’ contact with Burkhart, his sister arrived in an SUV and joined Burkhart and the officers. Refusing direction to get back into her vehicle, she began hugging Burkhart. According to the affidavit, the officer saw her take something from Burkhart’s front left breast pocket and attempt to conceal it by putting into her shirt or bra. Officers retrieved the item, a cigarette package that contained Burkhart’s Colorado state identification card and two yellow Ziploc baggies of methamphetamine.
Burkhart unsuccessfully tried to flee as an officer took Burkhart to a patrol vehicle in handcuffs. According to the affidavit, the officer believed that Burkhart was under the influence of some type of drug.
When the Blue Springs Police Department took custody of Burkhart, an officer observed that he seemed disoriented and his speech was slurred. Burkhart had little to no recollection of his contact with the officers. A glass pipe containing methamphetamine residue was located in Burkhart’s backpack.
Burkhart told investigators he has been smoking marijuana two to three times per week for the last five years. Burkhart also said he has used methamphetamine numerous times in the last month, including the night prior to his arrest, and had taken Vicodin earlier that morning, which he purchased from a street dealer.
Garrison cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney David Raskin. It was investigated by the Blue Springs, Mo., Police Department, the Blue Springs School District Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Berkeley County man admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA - DeMarco Davis, Jr., also known as “Tipp,” of Inwood, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Davis, age 36, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Davis admitted to selling heroin in January 2017 in Berkeley County.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Baltimore Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Roger Spears, age 36, of Baltimore, Maryland, pleaded guilty today to brandishing a firearm in furtherance of the conspiracy to possess with intent to distribute controlled substances.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore Field Office; and Commissioner Darryl DeSousa of the Baltimore Police Department.
According to his plea agreement, on June 21, 2016, Spears carried out an armed home invasion in Anne Arundel County where he encountered one of the victims and pistol-whipped him in the face. Spears then took the victim to the upstairs bedroom where two other victims slept. He held all the victims at gunpoint and demanded their property. Spears stole jewelry, heroin, Xanax (alprazolam), money, and a.40 caliber handgun. According to the plea agreement, Spears sold the heroin that he stole during the robbery and kept the handgun.
On July 25, 2016, at around 9:20 p.m., Spears was engaged in drug trafficking and had hidden a stash of 18 bags of cocaine in a bag on the porch. At around that time, Spears left the location, but left the bag hidden on the porch. He later returned in a minivan as a passenger to retrieve the narcotics. As the minivan drove away from the location, a Baltimore City Police Department patrol vehicle attempted to stop the vehicle. The minivan fled from the patrol car and the Spears threw the bag with the gun and cocaine out of a window. The minivan subsequently crashed into a curb and Spears fled on foot. Spears was arrested by officers a short distance away.
Spears and the government have agreed that if the Court accepts the plea agreement, he will be sentenced to fifteen years in prison followed by a lifetime of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 29, 2018 at 2 p.m.
Acting United States Attorney Stephen M. Schenning commended the DEA and the Baltimore City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
Attorney General Sessions Takes Further Action to Combat Opioid Crisis - Directs the DEA to Evaluate Aggregate Production QuotasRead the Press Release
Today Attorney General Jeff Sessions issued a memo for the Acting Administrator of the Drug Enforcement Administration directing the DEA to evaluate and consider whether or not to amend its regulations governing the aggregate production quota where appropriate as expeditiously as practicable, including through a potential interim final rule. This is in response to studies indicating that the United States is an outlier in the number of opioid prescriptions issued each year.
In making the announcement, Attorney General Sessions said:
“Our nation is in the grips of the deadliest drug epidemic in our history. In accordance with President Donald J. Trump’s declaration of a Public Health Emergency and his directive to his Administration to address drug addiction and opioid abuse, the Department of Justice has helped lead the fight against this devastating crisis. I appreciate the efforts of the great men and women of the Drug Enforcement Administration (DEA), who are making significant strides in combatting this threat.”
View the memo here.Arrests Made in Cocaine Distribution Case in Brunswick CountyRead the Press Release
WILMINGTON – The United States Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr. announces the arrests of two of three defendants pursuant to a federal indictment for drug related charges.
An indictment was returned by a federal grand jury on January 30, 2018, against RODNEY TROY WILLIAMS, 49 years of age, of Bolivia, NC, JESSICA NICOLE MILLIKEN 30 years of age, of Leland, NC and KIMBERLY JOE COLEMAN, 51 years of age, of Southport, NC. The indictment charges the three defendants with conspiracy to possess and intent to distribute 280 grams or more of cocaine base (crack) in Brunswick County beginning in or about 2014, the exact date being unknown to the Grand Jury and continuing up to at least April 10, 2017.
WILLIAMS and MILLIKEN were arrested in April 2017 by the Brunswick County Sheriff’s Office and are currently being held in the Brunswick County Detention Center facing state charges related to distribution of crack cocaine. They will be transferred into federal custody. COLEMAN is currently being sought by law enforcement.
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 investigation of this case was conducted by the FBI's Coastal Criminal Enterprise Task Force (CCETF) which is made up of the FBI, Brunswick County Sheriff's Office, Wilmington Police Department, New Hanover County Sheriff's Office, and the North Carolina State Bureau of Investigation. The CCETF was formed in July 2016 to combat the rise of heroin distribution along the coast.
Arizona Man Sentenced to 78 Months in Federal Prison for Marijuana Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – John Leroy Milne, 56, of Phoenix, Ariz., was sentenced on February 27, 2018, in federal court in Las Cruces, N.M., to 78 months of imprisonment for his conviction on marijuana trafficking charges. Milne will be on supervised release for four years after completing his prison sentence.
The DEA and U.S. Border Patrol arrested Milne on June 23, 2017, on a criminal complaint charging him with possessing 111.58 kilograms (245.99 pounds) of marijuana with intent to distribute. Milne and his co-defendant, Manuel Pavon-Rodriguez, 36, a Mexican national illegally in the United States, subsequently were indicted on July 19, 2017, and were charged with participating in a marijuana trafficking conspiracy and with possession of marijuana with intent to distribute. According to the indictment, the defendants committed the crimes on June 23, 2017, in Hidalgo County, N.M.
Milne and Pavon- Rodriguez proceeded to trial on the charges in the indictment in Oct. 2017. The evidence at trial established that U.S. Border Patrol agents encountered Milne in Rodeo, N.M., on June 23, 2017, after Milne stopped his vehicle in front of the agents, got out of the vehicle, and initiated a conversation with the agents. The agents had been following Milne because Milne’s vehicle did not have a visible license plate. Milne gave the agents conflicting and confusing accounts about his travel plans until the agents asked him to show them the paper license plate for his vehicle. The agents testified that they observed five burlap backpacks and detected the strong scent of marijuana from the back of vehicle as Milne attempted to remove the paper license plate from the back window of his vehicle.
When the agents opened the back of the vehicle to inspect the backpacks, they observed Pavon-Rodriguez, who was wearing camouflage clothing, attempting to hide in the back of the vehicle with the backpacks. The five burlap backpacks contained 12 square bales of marijuana, weighing approximately 246 pounds that were wrapped in duct tape.
On Oct, 26, 2017, following a three-day trial, the jury returned a guilty verdict against Milne and acquitted Pavon-Rodriguez.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorneys Alfred J. Perez and Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Another Doctor and a Nurse Indicted for Participating in the Operation of a Montgomery “Pill Mill”Read the Press Release
Montgomery, AL – On Wednesday, February 28, 2018, a physician and nurse were arrested after being indicted in the ongoing investigation and prosecution of a “pill mill” being operated out of a Montgomery, Alabama medical office. The two new defendants in this case are physician Willie J. Chester, Jr., 64, of Pike Road, Alabama, and nurse Stephanie Michelle Ott, 42, of Fairhope, Alabama. Previously charged in this investigation were nurse practitioners Lillian Akwuba and Elizabeth Cronier, physician Julio Delgado, and clerical workers Misty Michelle Fannin, Jacqueline Suzanne Brownfield, and Akash Kumar.
All of the defendants are alleged to have assisted Dr. Gilberto Sanchez in operating a “pill mill” out of Family Practice, a medical clinic located at 4143 Atlanta Highway in Montgomery. Dr. Gilberto Sanchez, previously a Montgomery physician, owned Family Practice. In November of 2017, Dr. Sanchez pleaded guilty in federal court to drug distribution, health care fraud, and money laundering charges. In December, Dr. Sanchez’s former partner, Dr. Shepherd Odom pleaded guilty to drug distribution and money laundering charges. In January of 2018, Steven Cox, a nurse practitioner employed by the practice, pleaded guilty to drug distribution and health care fraud charges.
The most recent indictment in this case charges Chester with drug distribution, health care fraud, and conspiracy charges. The indictment alleges that Chester worked at Family Practice in 2016 and 2017, and, during that time, he prescribed controlled substances to patients knowing that the patients did not need the prescribed medicine. It further alleges that Chester had health insurance companies billed for unnecessary prescriptions and office evaluations.
As for Ott, the new indictment charges her with conspiracy and health care fraud. The factual allegations against Ott state that, in 2015, Family Practice employed Ott as a consultant. In that role, Ott implemented a billing system that caused the practice to overbill health insurance companies for services provided by nurse practitioners.
Finally, the latest indictment adds new drug distribution and health care fraud charges against Delgado and Cronier.
If convicted of the drug distribution charges, Chester faces a maximum sentence of 20 years’ in prison. Chester and Ott face maximum term of 10 years on the health care fraud charges. All defendants also could be assessed substantial fines and other monetary penalties.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Health and Human Services – Office of Inspector General. The Montgomery County Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery Police Department, the Opelika Police Department, and the Elmore County Sheriff’s Office assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Accountant Guilty of Tax Evasion and FraudRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old former Corpus Christi resident has entered a guilty plea to wire fraud and tax evasion, announced U.S. Attorney Ryan K. Patrick.
Brian Perez, now of San Antonio, is a Certified Public Accountant. As part of his plea, Perez admitted that while working as a bookkeeper, he orchestrated the fraudulent transfer of funds from his employer’s bank account to his personal tax withholding account. Perez also admitted he filed a false income tax return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,775 between March 9, 2015, and Aug. 7, 2015.
U.S. District Judge Nelva Gonzales Ramos accepted the plea today and set sentencing for July 18, 2018. At that time, Perez faces up to 20 years in federal prison for wire fraud as well as a maximum three years for tax evasion. Both charges also carry as possible punishment a $250,000 maximum fine.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Wednesday 28 February 2018
Woodbury Man Sentenced to Prison for Stealing Identities and Filing False Tax ReturnsRead the Press Release
George Ronzell Fyke, 40, of Woodbury, Tenn., was sentenced yesterday to 57 months in prison for stealing the identities of others and using them to file false income tax returns, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
According to documents filed with the court, Fyke stole the names and social security numbers of deceased relatives and from fellow inmates at the Montgomery County, Tenn. Jail and used them to file false income tax returns. Fyke had the tax refund checks sent to addresses under his control and after being released from jail, he forged the signatures of the stolen identities and deposited the refund checks into his bank accounts. Fyke caused the Department of Treasury to issue over $56,000 in unlawful tax refunds.The case was investigated by the IRS – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould prosecuted the case on behalf of the United States.
Woman Sentenced to Prison for Tax ViolationRead the Press Release
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Judy Villanyi, 48, of Summerville, South Carolina, was sentenced to five months imprisonment for violating 18 U.S.C. § 7272, Obstructing and Impeding the Due Administration of the Tax Code. The offense carried a maximum possible punishment of up to three years imprisonment.
Villanyi pled guilty to the offense in August of 2017. She was sentenced by United States District Court Judge Richard Gergel.
The conviction is the result of an investigation conducted by the Internal Revenue Service and Federal Bureau of Investigations.
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Woman Pleads Guilty to Tax Refund Fraud Using Stolen IdentitiesRead the Press Release
Jackson, Miss. – Marietta Harris pled guilty yesterday before U.S. District Court Judge Henry T. Wingate to conspiring to defraud the United States, announced U.S. Attorney Mike Hurst, U.S. Secret Service Special Agent in Charge Michael Williams and Internal Revenue Service-Criminal Investigation Acting Special Agent in Charge Ted R. Magee.
According to information revealed at her plea hearing, from January 2009 to June 2013, Harris and her co-defendants defrauded the government by using names, social security numbers and other personal identifying information which had been stolen from the Central Mississippi Correctional Facility in Rankin County, the University of Mississippi Medical Center, and other locations, to file false tax returns with the Internal Revenue Service and collect tax refunds. These fraudulent tax refunds were electronically deposited into various bank accounts in Mississippi belonging to Harris and her co-conspirators.
Harris will be sentenced by Judge Wingate on May 29, 2018, and faces a total maximum penalty of ten years in prison and a $250,000 fine. According to the indictment, Harris and her seven co-conspirators were charged with conspiracy to defraud the government. According to the court’s public electronic record, all seven co-conspirators have been sentenced to terms of imprisonment as follows: Nikki Thomas – 105 months; S’ade Tyler – 54 months; Tony Jones – 105 months; Ladonna Cooper – 20 months; Shekeila Jones – 15 months; Pamlia Johnson – 14 months; and Diandra Thomas – 5 months.
The case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. The case is being prosecuted by Assistant U.S. Attorney Patrick A. Lemon.
Wichita Man and Woman Charged with String of Armed RobberiesRead the Press Release
UPDATE
A federal judge dismissed the indictment against the defendant, Jazmin Manuel, in the case described in the press release below.
WICHITA, KAN. – A Wichita man and woman were charged Tuesday in a string of armed robberies at local businesses, U.S. Attorney Stephen McAllister said.
A federal grand jury indictment charged Savannah Cole, 20, Wichita, Kan., and Kenneth W. Cade, 28, Wichita, Kan., with four counts of robbery and four counts of using firearms to commit robberies. In addition, Cade was charged with two counts of unlawful possession of a firearm following a felony conviction.
The indictment alleges Cole and Cade committed the following robberies:
- Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017.
- C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018.
- Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018.
- Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018.
If convicted, they face up to 20 years in federal prison and a fine up to $250,000 on each robbery count, and no less than seven years and a fine up to $250,000 on each count of using a firearm in a robbery. In addition, Cade faces up to 10 years and a fine up to $250,000 on each count of unlawful possession of a firearm. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting the case as part Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.
OTHER INDICTMENTS
Three Wichitans are charged with the sex trafficking of a minor.
Johnell Carter, 22, Wichita, Kan., Christian L. Dixon, 27, Wichita, Kan., and Jazmin Manuel, 21, Wichita, Kan., are charged with one count of sex trafficking a minor.
According to an affidavit filed in federal court, in June 2017 the Wichita Police Department interviewed a 16-year-old girl who had been the victim of sex trafficking starting at the age of 15. It is alleged Carter and Dixon arranged for the victim to engage in commercial sex acts, including approximately 50 encounters with men who paid to have sex with her. The defendants used Web-based advertising to offer the minor, including transporting the minor to San Antonio, Texas, where men paid to have sex with the minor.
If convicted, the defendants face not less than 10 years in federal prison and a fine up to $250,000. The FBI, the Wichita Police Department and the Exploited and Missing Child Unit (EMCU) investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Nehemiah K. Jackson, 37, Wichita, Kan., is charged with one count of theft of mail by a U.S. Postal Service employee. It is alleged he stole cell phones that were being mailed to Assurion. The crime is alleged to have occurred in December 2017 in Sedgwick County, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Postal Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Javier Guerrero-Garcia, 21, who is not a citizen of the United States, is charged with one count of unlawful possession of a firearm by a person illegally in the United States. The crime is alleged to have occurred Jan. 2, 2018, in Wyandotte County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Whiting Man Pleads Guilty to Tax FraudRead the Press Release
A man who filed false and fraudulent tax returns pled guilty on February 28, 2018, in federal court in Sioux City.
Kurt Neldeberg, 64, from Whiting, Iowa, was convicted of making a false and fraudulent tax return.
At the plea hearing, Neldeberg admitted that from at least 2009 through 2012, he failed to report a total of approximately $315,512 in income from grain sales which resulted in unpaid and taxes due and owing for those tax years. Neldeberg admitted he deposited proceeds from grain sales into personal bank accounts, knowing that he was supposed to tell his bookkeeper and tax preparer of these farm grain sales and deposits, but willfully did not inform his bookkeeper nor his tax preparer of these farm grain sales and deposits into personal accounts. Neldeberg knew that the farm receipts reported on his Schedule F on his joint federal tax returns was incorrect, resulting in underreported income for each of the tax years 2009-2012 and tax losses therefrom.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Neldeberg remains free on bond previously set pending sentencing. Neldeberg faces a possible maximum sentence of 3 years’ imprisonment, a $250,000 fine, a special assessment of $100, and not more than one year of supervised release following any imprisonment. A person convicted of a criminal tax offense, in addition to whatever sentence is imposed, is also required to pay the tax determined to be due, as well as interest and civil penalties that may be assessed.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4012. Follow us on Twitter @USAO_NDIA.
White Supremacist Pleads Guilty to Federal Gun ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Benjamin Thomas Samuel McDowell, age 30, of Conway, South Carolina, pled guilty in federal court in Florence, South Carolina. McDowell pled guilty to being a felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentences after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the guilty plea hearing established that the FBI became aware of McDowell’s escalating white supremacist views on social media where McDowell advocated violence against non-whites and even expressed admiration for Dylann Roof and the extreme acts of violence perpetrated by him. Of particular concern to the FBI were McDowell’s comments regarding a particular Jewish Synagogue which implied that this place of worship might be a possible target of violence. McDowell also used social media to communicate an interest in acquiring a gun. In response the FBI arranged for an undercover agent posing as a member of a white supremacist organization to become acquainted with McDowell for the purpose of determining the nature of his white supremacist leanings and whether McDowell intended to carry out any acts of violence.
McDowell and the undercover agent engaged in multiple recorded conversations during which McDowell reaffirmed his respect for Dylann Roof and spoke generally about committing acts of violence against people of the Jewish and Muslim faiths. McDowell also repeated his desire to obtain a gun. While McDowell never revealed any specific plan to attack a particular location or victim, he did express a general desire to use the gun to commit acts of violence. During further conversations with the undercover FBI agent, McDowell eventually specified that he wanted a .40 caliber Glock pistol and .40 caliber hollow-point ammunition. The agent was able to set up a controlled sale of a .40 caliber pistol and ammunition to McDowell to take place on February 15, 2017. The FBI provided the agent with a .40 caliber Glock which had been rendered “inert” by having the firing pin shaved down so that the gun could not fire. On February 15, the agent met with McDowell and sold him the inert .40 caliber pistol and hollow-point ammunition for $109. Soon thereafter McDowell was arrested in the parking lot of a hotel in Myrtle Beach during which the pistol and ammunition were recovered from a bag McDowell was carrying. During a post-arrest interview McDowell admitted to agents that he had purchased the gun and ammunition.
Prior to February 15, 2017, McDowell had been convicted of a felony which prohibits him from possessing a firearm or ammunition.
Ms. Drake stated the maximum penalty McDowell can receive is imprisonment for 10 years and a fine of $250,000.00.
The case was investigated by agents of the FBI with the assistance of the Horry County Police Department, the Myrtle Beach Police Department and the Horry County Sheriff’s Office. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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West Mifflin Man Admits Possessing and Distributing FentanylRead the Press Release
PITTSBURGH - A former resident of West Mifflin, Pennsylvania, pleaded guilty in federal court on one count of possession with intent to distribute and distribution of fentanyl, United States Attorney Scott W. Brady announced today.
James Kadish, age 27, pleaded guilty before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that on December 3, 2018, James Kadish purchased a quantity of fentanyl from co-defendant Devon Robinson. On December 3, 2017 and December 4, 2017, Kadish then distributed the fentanyl to at least two other individuals. On December 4, 2017, FBI Special Agents and Task Force Officers recovered the remaining fentanyl from Kadish’s home in West Mifflin.
Judge Cercone scheduled sentencing for July 23, 2018. The law provides for a maximum total sentence of up to 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department and Pennsylvania Attorney General’s Office.
Warren County, New Jersey, Man Convicted of Production of Child Pornography, Online Enticement, Sending Interstate Extortionate Threats, and StalkingRead the Press Release
NEWARK, N.J. – A Washington, New Jersey, man was convicted today of sex crimes, extortion and stalking – including asking a minor girl to produce explicit images of herself and threatening a second girl if she didn’t agree to meet and date him, U.S. Attorney Craig Carpenito announced.
Brandon McIntyre, 25, was convicted of two counts of the production of child pornography, one count of the online enticement of a minor to engage in criminal sexual conduct, two counts of sending interstate extortionate threats, and one count of stalking. The jury deliberated approximately four hours following a one-week trial before U.S. District Judge Kevin McNulty in Newark federal court.
According to the documents filed in this case and the evidence at trial:
McIntyre met various minor girls through Facebook, sometimes as himself, other times pretending to be a teenage girl. Over the course of the correspondence with one female, McIntyre threatened to hurt her boyfriend and kill her family when she refused to go out with him. In his interaction with another girl, McIntyre sent her images of his genitals and demanded that she send nude images of herself. McIntyre threatened the girl, claiming he was a state trooper who could arrest and imprison her family members if she did not send him nude images of herself. When one victim threatened to report McIntyre to her school guidance counselor, McIntyre responded, “Do it and see what happens” and “I can have ur family killed too and make u watch.”
McIntyre admitted to law enforcement that he, at times, pretended to be a teenage girl using the alias “Katie Thompson” in online chats with minors. He said he solicited minors to take and send nude images of themselves to him and threatened to harm minors and their loved ones on multiple occasions if they did not comply with his demands.
The charges of sexual exploitation of a child each carry a mandatory minimum penalty of 15 years in prison, and a maximum potential penalty of 30 years in prison. The charge of online enticement carries a mandatory minimum penalty of 10 years in prison, and a maximum potential penalty of life in prison. The charges of interstate extortionate threats each carry a maximum potential penalty of five years in prison. The charge of stalking carries a maximum penalty of five years in prison. All of the counts are also punishable by a $250,000 fine. Sentencing will be scheduled at a later date.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Middlebury, Vermont, Police Department, and the Clinton Police Department with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Erica Liu and Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Criminal Division in Newark.
Upshur County man sentenced for illegal possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia man was sentenced today to 46 months incarceration for illegally possessing a firearm, United States Attorney Bill Powell announced.
Joseph Wayne Shipman, 44, of Buckhannon, West Virginia, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2017. Shipman, who had previously been convicted of a felony offense in Upshur County, is prohibited from possessing a firearm. He admitted to possessing multiple firearms in December 2016 in Upshur County, West Virginia.
Assistant U.S. Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
United States Border Patrol Agent Sentenced to Prison for Theft of Firearm Parts and Unlawful Possession of MachinegunRead the Press Release
TUCSON, Ariz. – Yesterday, Jesus Manuel Franco, a former United States Border Patrol Agent, 39, of Vail, Ariz., was sentenced by U.S. District Judge Cindy K. Jorgenson, to 18 months’ imprisonment for theft of firearm parts and equipment valued at approximately $100,000 and for the unlawful possession and transfer of two machinegun conversion devices. Franco had been previously found guilty of these offenses after a jury trial.
The evidence at trial demonstrated that in 2014, Franco accepted a temporary assignment to the Customs and Border Protection (CBP) Armory in Harper’s Ferry, W. Va. During a two-month period, Franco unlawfully transferred 47 boxes of firearm parts and equipment from the Armory to the Wilcox, Ariz. CBP Station without authorization and for personal use. One of the boxes transferred by Franco contained two machine gun conversion devices that qualified under federal law as machineguns. Franco also charged the government for shipping costs.
The investigation in this case was conducted by the Department of Homeland Security, Office of Inspector General. The prosecution was handled by Jane L. Westby and Sarah B. Houston, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-00268-TUC-CKJ
RELEASE NUMBER: 2018-19_Franco
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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.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information, and CyberstalkingRead the Press Release
The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information and CyberstalkingRead the Press Release
WASHINGTON – The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information, and CyberstalkingRead the Press Release
WASHINGTON – The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S./Israeli Man Indicted for Hate Crime and Threats to Jewish Community Centers, Israeli Embassy, Anti-Defamation League, Conveying False Information, and CyberstalkingRead the Press Release
NOTE: The indictments can be found here: Florida Indictment, D.C. Indictment, Georgia Indictment.
WASHINGTON – The Department of Justice today announced the indictment of Michael Ron David Kadar, 19, who holds dual United States and Israeli citizenship, in three jurisdictions for hate crimes and other offenses.
The indictment from Florida charges Kadar with hate crimes as a result of threatening calls he made to Jewish Community Centers in the state. In addition, the indictment from the District of Columbia charges Kadar with threatening the Israeli Embassy and the Anti-Defamation League in Washington, D.C. The third indictment charges Kadar with cyberstalking and conveying false information to police dispatch regarding harm to private residents in Georgia.
An investigation into numerous threats made to individuals and organizations throughout the United States in 2016 and early 2017 led to Kadar being charged initially in criminal complaints on April 21, 2017 in Florida and Georgia following his arrest in Israel. Kadar remains in custody in Israel where he also faces charges.
The indictment from the Middle District of Florida charges that beginning on or about Jan. 4, 2017, and continuing until Feb. 27, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Additionally, the indictment charges Kadar with attempting to obstruct the free exercise of religion at the Jewish Community Centers when he made the bomb threats and active shooter threats. Finally, the indictment charges that Kadar made bomb threats to the Orlando International Airport and a middle school in the Middle District of Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond to and clear the area.
The indictment from the District of Columbia charges that on or about March 7, 2017, Kadar made a threatening call to the Anti-Defamation League involving a bomb threat. Additionally, the indictment alleges that on or about March 9, 2017, Kadar sent a threatening email to the Israeli Embassy involving a bomb threat.
The indictment from the Middle District of Georgia charges that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged hostage situation in progress at a private residence in Athens, Georgia, which included a threat to kill responding police officers. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
The hate crime charges each carry a maximum penalty of 20 years imprisonment, the bomb threats charges each carry a maximum penalty of 10 years imprisonment, and the interstate threats charge, the hoax charge, and the cyberstalking charge each carry a maximum penalty of five years imprisonment. If convicted, Kadar could also be subject to court ordered restitution.
“When individuals target victims of their crimes based on who they are, what they believe, or how they worship, they target the bedrock principles on which our nation was founded,” said Attorney General Jeff Sessions. “These alleged threats of violence instilled fear in the Jewish community and other communities across the country, and it is the Justice Department’s duty to make sure all Americans can live their lives without this type of fear.”
“These alleged threats were very real for those individuals who were evacuated, for the first responders who quickly mobilized to get people out of harm’s way, and for those in Jewish communities across the United States who felt targeted and unsafe,” said FBI Director Christopher Wray. “This indictment demonstrates the FBI’s commitment to working together with our partners to protect the safety and civil rights of all Americans, and shows that we will not stand by as someone threatens our communities based on their religion or their beliefs.”
“Threats, intimidation, or violence perpetrated against anyone because of their beliefs, their faith, or how they choose to worship is intolerable,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “Individuals should be free to exercise these rights without fear. We will continue to use our resources to enforce these precious rights for all individuals.”
“The indictment returned today in the District of Columbia is part of a broader nationwide fight against hate, terror, and threats in all of their forms,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “The charges also reflect the tireless dedication of the DOJ, the FBI, and our local and international partners to rooting out and prosecuting those who would terrorize our communities.”
“Hiding behind anonymous phone calls to threaten innocent citizens is cowardly and dangerous,” said U.S. Attorney Charles E. Peeler for the Middle District of Georgia. “The calls that this defendant allegedly made harassed innocent victims, endangered first responders and the victims themselves, and needlessly consumed law enforcement resources vital to protecting our communities.”
This case was investigated by the FBI Tampa Division, FBI Washington Field Office, and FBI Atlanta Division; the U.S. Attorney’s Office for the Middle District of Florida; the U.S. Attorney’s Office for the District of Columbia; U.S. Attorney’s Office for the Middle District of Georgia; the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division; and the Criminal Section of the Justice Department’s Civil Rights Division. The Criminal Division’s Office of International Affairs provided significant assistance in this case. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Bill Powell applauds the creation of a Prescription Interdiction and Litigation Task ForceRead the Press Release
WHEELING, WV – The U.S. Attorney’s office in the Northern District of West Virginia is applauding Attorney General Jeff Sessions and the Department of Justice’s newest tool to fight the opioid epidemic.
Attorney General Jeff Sessions today announced the creation of a new effort, the Department of Justice Prescription Interdiction & Litigation (PIL) Task Force, to fight the prescription opioid crisis.
“West Virginia, with the highest number of overdose deaths per capita in the country, is ground zero of the epidemic. Our office has seen successful prosecution of distributors and physicians who are irresponsible with prescription opioids, and we aren’t stopping. If you are a physician, pharmacy or distributor who is playing roulette with prescription opioids, know that you will be prosecuted to the fullest extent of the law,” said U.S. Attorney Bill Powell.
The PIL Task Force will aggressively deploy and coordinate all available criminal and civil law enforcement tools to reverse the tide of opioid overdoses in the United States, with a particular focus on opioid manufacturers and distributors.
“Over the past year, the Department has vigorously fought the prescription opioid crisis, and we are determined to continue making progress. Today, we are opening a new front in the war on the opioid crisis by bringing all of our anti-opioid efforts under one banner,” said Attorney General Sessions. “We have no time to waste. Every day, 180 Americans die from drug overdoses. This epidemic actually lowered American life expectancy in 2015 and 2016 for the first time in decades, with drug overdose now the leading cause of death for Americans under age 50. These are not acceptable trends and this new task force will make us more effective in reversing them and saving Americans from the scourge of opioid addiction.”
The PIL Task Force will include senior officials from the offices of the Attorney General, the Deputy Attorney General, and the Associate Attorney General, as well as senior officials from the Executive Office for U.S. Attorneys, the Civil Division, the Criminal Division, and the Drug Enforcement Administration. The Task Force will coordinate the Department’s many efforts and tools to combat the opioid epidemic.
The PIL Task Force will combat the opioid crisis at every level of the distribution system. At the manufacturer level, the PIL Task Force will use all available criminal and civil remedies available under federal law to hold opioid manufacturers accountable for unlawful practices. The PIL Task Force will build on and strengthen existing Department of Justice initiatives to ensure that opioid manufacturers are marketing their products truthfully and in accordance with Food and Drug Administration rules.
The Attorney General has also directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits. The federal government has borne substantial costs from the opioid crisis, and it must be compensated by any party whose illegal activity contributed to those costs.
The Department will also use all criminal and civil tools at its disposal to hold distributors such as pharmacies, pain management clinics, drug testing facilities, and individual physicians accountable for unlawful actions.
The PIL Task Force will use criminal and civil actions to ensure that distributors and pharmacies are obeying Drug Enforcement Administration rules designed to prevent diversion and improper prescribing. It will use the False Claims Act and other tools to crack down on pain-management clinics, drug testing facilities, and physicians that make opioid prescriptions.
The PIL Task Force will use the criminal and civil tools available under the Controlled Substances Act against doctors, pharmacies, and others that break the law. The PIL Task Force will build upon and expand the efforts of the existing Opioid Fraud and Abuse Detection Unit. Created in August 2017, the Unit uses sophisticated data analysis to identify and prosecute individuals who are contributing to the opioid epidemic, including pill-mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes.
The PIL Task Force will also work closely with the Department of Health and Human Services to investigate and hold accountable any parties who engage in illegal activity surrounding prescription opioids. The Attorney General has directed the PIL Task Force to establish immediately a working group to: (1) improve coordination and data sharing across the federal government to better identify violations of law and patterns of fraud related to the opioid epidemic; (2) evaluate possible changes to the regulatory regime governing opioid distribution; and (3) recommend changes in laws.
This new Task Force will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:
• In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
• One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet. This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
• In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
• The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
• In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
• Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
• In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
• In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team. The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
• Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
• On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years. This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
• The Department anticipates filing a statement of interest in the coming days in a multi-district action regarding hundreds of lawsuits against opioid manufacturers and distributors.
Two Mexican Nationals Sentenced for Growing Marijuana on National Forest LandRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced sentences in two unrelated cases involving growing marijuana in national forests. In addition to the marijuana charges, both defendants were sentenced for depredation of federal property. Not only are the marijuana grow sites an illegal trespass, they cause significant environmental damage, through the use of harmful – and often banned – pesticides, as well as harm to natural rivers and streams, which the site’s operators divert to irrigate the marijuana crops.
In the first case, U.S. District Judge Kimberly J. Mueller sentenced Sebastian Martinez Arreola, 20, of Michoacán, Mexico, to 20 months in prison for manufacturing marijuana, conspiring to do the same, and depredation of federal property. According to court documents, Martinez Arreola and others were arrested by law enforcement on August 7, 2017, following a search of a marijuana-cultivation site in the Limedyke Mountain area of the Shasta-Trinity National Forest in Trinity County. At the site, they found approximately 2,500 marijuana plants and a .45‑caliber Ruger handgun.
This case was the product of an investigation by the United States Forest Service, Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the North State Marijuana Investigation Team. Assistant U.S. Attorney Richard Bender is prosecuting the case.
In the second case, Judge Mueller sentenced Pedro Sanchez Muniz, 39, native of Mexico, to two years in prison for conspiracy to manufacture at least 1,000 marijuana plants, as well as depredation of federal property. According to court documents, Sanchez Muniz was arrested by law enforcement officers at a marijuana cultivation site growing approximately 1,500 plants on the Mendocino National Forest in Tehama County. He was found tending to marijuana plants at the site.
This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish & Wildlife, and Tehama County Sheriff’s Office. Assistant U.S. Attorney James Conolly prosecuted the case.
Two Doctors Arrested Pursuant to Federal Indictment that Alleges Bogus Sleep Studies Helped 1-800-GET-THIN Fraudulently Bill Insurance Programs over $250 Million Related to Lap-Band SurgeriesRead the Press Release
LOS ANGELES – Two doctors were arrested this morning on federal fraud charges stemming from more than $250 million in allegedly fraudulent bills related to the 1-800-GET-THIN Lap-Band surgery business.
Julian Omidi, 49, of West Hollywood, and Mirali Zarrabi, 55, of Beverly Hills, were arrested pursuant to a federal indictment that alleges a host of criminal charges stemming from GET THIN’s Lap-Band (or bariatric) surgery and sleep study programs between May 2010 and March 2016.
Two corporations controlled, in part, by Omidi – Surgery Center Management, LLC (SCM), and Independent Medical Services, Inc. (IMS) – are also named in the 37-count superseding indictment that was unsealed today.
The indictment contains charges of mail fraud, wire fraud, false statements, money laundering and aggravated identity theft.
Omidi, a physician whose license was revoked in 2009, controlled, in part, the GET THIN network of entities, including SCM and IMS, that focused on the promotion and performance of elective, Lap-Band weight-loss surgeries. Omidi established procedures requiring prospective Lap-Band patients – even those covered by insurance plans he knew would never cover Lap-Band surgery – to have at least one sleep study, and employees were incentivized with commissions to make sure the studies occurred, according to the indictment. The purpose of the sleep studies was to find a second reason – a “co-morbidity,” such as sleep apnea – that GET THIN would use to convince the patient’s insurance company to pre-approve the Lap-Band procedure.
After patients underwent sleep studies – often with little indication that any doctor had ever determined the study was medically necessary – GET THIN employees, acting at Omidi’s direction, allegedly often falsified the results to reflect that the patient had moderate or severe sleep apnea, and that they suffered from severe daytime sleepiness. Omidi then caused those falsified sleep study reports to be used in support of GET THIN’s pre-authorization requests for Lap-Band surgery.
Relying on the false sleep studies – as well as other false information, including patients’ heights and weights – insurance companies authorized payment for some of the proposed Lap-Band surgeries. The indictment alleges that GET THIN received at least $38 million for the Lap-Band procedures.
Even if the insurance company did not authorize the surgery, GET THIN still was able to submit bills for approximately $15,000 for each sleep study, receiving millions of dollars in payments for these claims, according to the indictment. The insurance payments were deposited into bank accounts associated with the GET THIN entities.
The victim health care benefit programs include TriCare, Anthem Blue Cross, UnitedHealthcare, Aetna, Cigna and others.
“The scheme outlined in the indictment focuses on bogus sleep studies that the defendants utilized to engage in a much more lucrative fraud involving Lap-Band procedures,” said Acting United States Attorney Sandra R. Brown. “Patients were harmed as a result of this fraud scheme when they were subjected to unnecessary medical procedures, and insurance providers were harmed when they paid out tens of millions of dollars after receiving fraudulent bills.”
Zarrabi allowed his electronic signature to be used by GET THIN to make it falsely appear that he had reviewed and interpreted the falsified sleep studies, even though he knew the reports were being altered, according to the indictment. Zarrabi also allegedly demanded to be paid for the use of his electronic signature on hundreds of prescriptions for devices to treat sleep apnea. Zarrabi allegedly did not review the prescriptions, which were sent with the falsified sleep study reports to durable medical equipment providers that billed for sleep apnea equipment that patients often did not need.
“While the defendants in this case were scheming victims who had hopes of ‘getting thin,’ they were also busy getting rich by defrauding the insurance companies and exploiting unwitting victims in many cases,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and its law enforcement partners worked collaboratively to reach this successful result and will continue to hold the perpetrators of health care fraud accountable.”
“The FDA takes seriously its responsibility to protect patients by requiring truthful, non-misleading, and accurate information in the labeling of FDA-regulated products, such as medical devices,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “Patients, who may be influenced by false or misleading information, need to be fully aware of the risks of any surgical procedure.”
“Doctor Zarrabi and former physician Omidi victimized countless patients when they allegedly provided medically unnecessary treatment in order to boost their own profits to the tune of tens of millions of dollars,” said California Insurance Commissioner Dave Jones. “Medical provider fraud is multi-billion dollar problem that drives up health insurance premiums and creates a drain on our economy.”
In 2014, the government seized more than $110 million in funds and securities from accounts held by individuals and entities involved in the criminal scheme described in the indictment, including Omidi. The government is seeking forfeiture of some or all of those funds in the criminal case, and also intends to pursue civil forfeiture of some or all of the assets.
“Driven by greed, Omidi and Zarrabi allegedly sought to cheat their way to riches by bilking millions of dollars from Tricare and other health care providers,” stated R. Damon Rowe, Special Agent in Charge for IRS Criminal Investigation. “Those who betray patients and commit health care fraud steal from taxpayers and insurance providers, while corrupting the integrity of our nation’s health care system. IRS Criminal Investigation and our law enforcement partners will investigate and criminally prosecute such fraud schemes to the fullest extent of the law.”
Omidi and Zarrabi, along with the corporate defendants, are scheduled to be arraigned on the indictment this afternoon in United States District Court.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted in this case, Omidi and Zarrabi potentially would face decades in federal prison, including a statutory maximum penalty of 20 years in prison for each of the 31 mail fraud and wire fraud counts alleged in the indictment.
This case is the product of an investigation by the U.S. Food and Drug Administration, Office of Criminal Investigations; the Federal Bureau of Investigation; the Defense Criminal Investigative Service; IRS Criminal Investigation; the California Department of Insurance; and the California Department of Justice.
The GET THIN case is being prosecuted by Assistant United States Attorneys Kristen A. Williams and Cathy J. Ostiller of the Major Frauds Section.
Two Charged in Scheme to Illegally Export Night Sighting Equipment, Firearms and Ammo to UkraineRead the Press Release
PITTSBURGH - One Michigan resident and one New Jersey resident have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy, United States Attorney Scott W. Brady announced today.
The one-count indictment named Michael Cox, 42, of Beverly Hills, Michigan, and Michael Stashchyshyn, 55, of Cedar Knolls, New Jersey, as defendants.
According to the indictment, Cox and Stashchyshyn conspired with others to export night sighting equipment, firearms and ammunition to Ukraine without the requisite license issued by the State Department. The items were purchased in the United States by Cox and others, and shipped to Stashchyshyn who owns a freight forwarder business in Parsippany, New Jersey. Stashchyshyn then shipped the items to an individual in Ukraine in violation of U.S. law and regulations. The items shipped are contained on the Federal Munitions List and are controlled by the International Traffic in Arms (ITAR) regulations. They are illegal to ship without a license from the State Department, which the defendants and their co-conspirators did not have.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Charles A. Eberle and Shardul Desai are prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement/Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Gang Members Sentenced for Shooting an Oakland Police Officer and A Rival Gang MemberRead the Press Release
OAKLAND – Three members of the “Sem City” street gang in East Oakland were sentenced today for their respective roles in the shooting of an Oakland police officer on January 21, 2013, and, just 28 hours earlier, shooting a rival gang member in a street-corner ambush in the Seminary neighborhood of Oakland, announced Acting United States Attorney Alex G. Tse and FBI Special Agent in Charge John F. Bennett. The Honorable Phyllis J. Hamilton, Chief United States District Judge, sentenced Purvis Ellis (aka “Bot”) to 20 years in prison, Deante Kincaid (aka “Tay-Tay”) to 23 years in prison, and Joseph Pennymon (aka “Junkie”) to 18 years in prison. On September 20, 2017, Judge Hamilton sentenced co-defendant Damien McDaniel to 33 years in prison for his role in the same crimes. Along with the sentence Judge Hamilton imposed upon McDaniel last fall, today’s sentences bring the case of the attempted murder and assault against the police officer to a close.
“Messrs. Ellis, Kincaid, McDaniel, and Pennymon and the Sem City criminal enterprise posed a significant threat to the public,” said Acting U.S. Attorney Tse. “Today’s just sentences assure the public that brazen acts of violence against our communities and the peace officers sworn to protect them will not be tolerated. This office will continue to prosecute violent and dangerous criminals to the fullest extent of the law. I want to thank all of our federal and state law enforcement partners whose cooperation and efforts helped bring these violent criminals to justice.”
The defendants, all from Oakland, pleaded guilty to their respective roles in the crimes. Ellis, 31; Kincaid, 33; Pennymon, 27; and McDaniel, 27, all admitted they were gang members from East Oakland’s Seminary neighborhood, known as “Sem City.” Ellis, Pennymon, and McDaniel admitted they attempted to murder a member of a rival gang found on their gang’s “turf.” The three men converged on the victim who was standing at a bus stop and fired 13 shots, striking the man in the forehead and leg. In addition, Kincaid and McDaniel admitted assaulting an Oakland police officer the next day. The police officer received a tip that the get-away car was located in an apartment complex in East Oakland. When the officer went to investigate the tip, he was attacked by Kincaid and McDaniel. The officer resisted their attack, but Kincaid restrained him, struck the officer in the head, and threatened to kill him. McDaniel shot the officer in the arm when the officer refused to give up his service pistol. The officer sustained injuries to the head and forearm.
A federal grand jury indicted the defendants on December 19, 2013. On April 24, 2017, McDaniel pleaded guilty to racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5) and 2; discharging a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c); and assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(3) and 2. Pennymon and Ellis pleaded guilty to the first three crimes. Pennymon pleaded guilty on August 31, 2017, and Ellis pleaded guilty on September 21, 2017. For his role in the crimes, Kincaid, pleaded guilty on August 31, 2017, to the racketeering conspiracy, assault with a dangerous weapon, and brandishing a firearm charges.
In addition to the prison terms, as part of today’s sentences, Judge Hamilton also sentenced Ellis, Kincaid, and Pennymon to 5-year periods of supervised release to follow the prison terms. The defendants have been in custody since 2013 and will begin serving their sentences immediately.
Assistant U.S. Attorneys Joseph Alioto and Scott Joiner are prosecuting the case, with the assistance of Kevin Costello. The prosecution is the result of an investigation led by the Federal Bureau of Investigation and the Oakland Police Department.
Three Cedar Rapids Men Sent to Federal Prison for Counterfeiting, Possessing Stolen U.S. Mail, and Identify TheftRead the Press Release
Three men were sentenced to federal prison after pleading guilty to counterfeiting U.S. currency, possessing stolen U.S. mail, and aggravated identity theft. The men stole U.S. mail from dozens of mailboxes in the Cedar Rapids area, altered the payee names on checks, often to their own names, and then fraudulently cashed the checks.
Joshua Chalk, age 31, from Cedar Rapids, Iowa, was sentenced today to 36 months in federal prison and three years of supervised release. Chalk was also ordered to make $11,463.45 in restitution to the victims of his crimes. Chalk received the prison term after pleading guilty on July 17, 2017, to manufacturing counterfeit currency and aggravated identity theft. At his plea hearing, Chalk admitted he manufactured a $100 bill in March 2017. Chalk was making counterfeit currency to purchase pizza and other items. Chalk provided counterfeit bills to his girlfriend, who ordered the pizza. Chalk also admitted he participated in a larger bank fraud scheme with Kevin Kappmeyer and Darrell Turner to remove checks from stolen U.S. mail, alter the payee names on the checks, and then attempt to cash those checks. Chalk admitted he presented an altered check on December 26, 2016, at a local check cashing company, with his own name as the payee.
Darrell Turner, age 50, from Cedar Rapids, Iowa, was sentenced on October 26, 2017, to 38 months in federal prison and three years of supervised release. Turner was also ordered to make $7,271.13 in restitution to the victims of his crimes. Turner received the prison term after pleading guilty on April 18, 2017, to possession of stolen mail matter and aggravated identity theft. At his plea hearing, Turner admitted he participated in the stolen mail scheme with Chalk and Kappmeyer. Turner admitted he tried to cash one of the altered checks, bearing his own name as the payee, on January 6, 2017, at a local bank.
Kevin Kappmeyer, age 51, from Cedar Rapids, Iowa, was sentenced on February 15, 2018, to 40 months in federal prison and three years of supervised release. Kappmeyer was also ordered to make $2,680.82 in restitution. Kappmeyer received the prison term after pleading guilty on June 28, 2017, to possession of stolen mail matter and aggravated identity theft. At his plea hearing, Kappmeyer admitted he participated in the stolen mail scheme. Kappmeyer admitted he possessed a check that was stolen from the mail. Kappmeyer cashed the check, bearing his own name as payee, on January 4, 2017.
The men were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Judge Reade increased the sentences of Turner and Kappmeyer because of their “horrible” criminal histories. Turner’s criminal activity stretches back to 1985, when he 18 years old. Turner has numerous convictions for theft and forgery. He also has 12 past violations or revocations of work release, probation, or parole in state court. Kappmeyer’s criminal activity stretches back to 1981, when he was 14 years old. Kappmeyer has convictions from four states: Iowa, Colorado, Wisconsin, and Florida. Kappmeyer has convictions for assault and drunk driving.
Chalk, Turner, and Kappmeyer were all held in the United States Marshal’s custody until they could be transported to a federal prison. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service, the Cedar Rapids Police Department, and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-17-LRR, 17-CR-44-LRR, and 17-CR-47-LRR.
Follow us on Twitter @USAO_NDIA.
Thirty-Seven Gang Members Charged in Crackdown of North County Heroin, Methamphetamine and Firearms TraffickersRead the Press Release
SAN DIEGO – Eleven federal indictments unsealed in San Diego today charge 37 defendants with heroin, methamphetamine and firearms trafficking, in many cases within feet of North County schools.
The crackdown announced today is the latest in a series of efforts by the Department of Justice to turn the tide of the opioid epidemic and reduce the inevitable violent crime that accompanies widespread drug trafficking.
Early this morning, more than 100 members of the North County Regional Gang Task Force, the FBI SWAT team, plus other law enforcement agencies made numerous arrests and, both today and during the course of the investigation, searched more than a dozen locations in Oceanside, Vista, San Marcos, and elsewhere in North County.
As of today at noon, 27 of the 37 defendants are either in federal or state custody. Twenty one were arrested this week, including 18 this morning; the rest were already in custody. Authorities are continuing to search for 10 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Mitchell D. Dembin at 2:00 p.m. today and tomorrow.
These yearlong investigations involved months of federal wiretaps, dozens of undercover drug and gun buys and extensive surveillance. Many of the defendants are documented members or associates of violent North County street gangs operating out of Encinitas, San Marcos, Oceanside, Vista, Carlsbad, Escondido, and elsewhere. Many of these gang have long-standing ties to the Mexican Mafia. In total, authorities seized heroin, methamphetamine and fentanyl and firearms, including a semi-automatic pistol, revolvers, and a two AR-15 style assault rifles.
These drugs and guns were being stored and sold in North County neighborhoods, including near Libby Lake Park and across the street from several schools – Jefferson Middle School, Clair W. Burgener Academy, Mission Elementary School, San Marcos High School, and Joli Ann Leichtag Elementary School.
“We have a special resolve to go after gangs that have the audacity to operate on the boundaries of our schools, where children play and learn,” said U.S. Attorney Adam L. Braverman. “The gangs are always on our radar, but when they endanger our most precious and vulnerable population – our children - we will act decisively.”
Through one investigation, the gang task force targeted major heroin and methamphetamine distribution cells led by North County street gang members. This investigation was initiated in the fall of 2016 after two gang-related homicides in North County. Anticipating additional violence, the gang task force set forth a plan to dismantle gang-related drug trafficking and violence in North County. As part of this investigation, the gang task force targeted Adrian Gomez, aka “Bandit,” a known Carlsbad gang member, methamphetamine distributor, and felon, who was found in possession of ammunition and a semi-automatic pistol.
The gang task force also targeted Theresa Lapolla, who was found in possession of over 100 grams of heroin at her home, located less than 700 feet from three Oceanside schools. She was charged with possession with intent to distribute over 100 grams of heroin within 1000 feet of a school — a charge that doubles the maximum punishment to 80 years in prison.
This investigation also targeted Robert Gonzalez, aka “Sleepy,” a Carlsbad gang member living in Oceanside’s Posole neighborhood. Months of federal wiretaps showed that Gonzalez was a prolific heroin and methamphetamine distributor who controlled drug sales in that neighborhood, which is a Posole territory located off the I-5 freeway and Highway 76 in Oceanside. In fact, Gonzalez sold narcotics every single day of the roughly three-month wiretap on his telephones. Gonzalez did so by working with multiple gang members and associates to distribute drugs to dozens of customers in and around Oceanside. Gonzalez typically met with his customers and sub-distributors in the parking lots of Wal-Mart, Harbor Freight, Mission Donuts, Burger King, El Super, and a local methadone clinic, all within Oceanside.
Another investigation by the gang task force targeted Encinitas Flats gang member Colin Jones as a high-volume heroin and methamphetamine dealer throughout North County. On June 8, 2017, Jones was arrested after investigators learned through electronic surveillance that he had a loaded AR-style assault rifle in his vehicle. Agents located him at the Pala Indian Casino with the rifle on his front passenger seat and additional ammunition and heroin in the car. Jones is charged with conspiracy to import heroin, conspiracy to distribute methamphetamine and heroin and felon in possession of ammunition.
Jones and his co-conspirators are accused of distributing narcotics in a variety of locations, including near schools. For example, according to court documents, Jones met with a San Marcos gang member at an Albertson’s across the street from San Marcos High School in late April to conduct a narcotics transaction. At other times, Jones and other co-conspirators operated out of a large private parcel of land directly across from Joli Ann Leichtag Elementary School in Vista.
According to court documents, some of the drugs in these investigations were obtained in Tijuana, Mexico, and then North County Gang members used unsanitary methods to sneak heroin and methamphetamine across the border: They repeatedly smuggled small quantities of narcotics in body cavities, via pedestrian lanes at the San Ysidro and Otay Mesa border crossings. Because of the method the conspirators used to smuggle drugs into the United States, which limited the amount that could be smuggled at a given time, Jones would travel to Mexico approximately every five days to replenish his supply of narcotics. Between October 7, 2016 and June 4, 2017 (four days before Jones was arrested in this case), Jones crossed from Mexico into the United States approximately 38 times, with the most recent being on June 4, 2017. Jones typically crossed late at night via the pedestrian lanes.
“The FBI and our law enforcement partners at the North County Regional Gang Task Force won’t accept when gang activity coupled with drugs, firearms and violence infests our communities,” said FBI Special Agent in Charge John A. Brown. “The FBI will continue to pursue violent gang members and work tirelessly with our law enforcement partners to keep our communities safe.”
“The Oceanside Police Department supports the efforts of the San Diego County Gang Task Force, Federal Bureau of Investigation and the U.S. Attorney’s Office in identifying, arresting and prosecuting those that sell and distribute drugs and advocate violence,” said Oceanside Police Chief Frank McCoy.
“This investigation illustrates that these violent street gangs will not prosper in our communities”, says DEA San Diego Acting Special Agent in Charge Steve Woodland. “With the cooperation of all law enforcement agencies involved, these offenders are now off the streets.”
U.S. Attorney Braverman praised the task force for the coordinated team effort in the culmination of this investigation. Agents and officers from the Federal Bureau of Investigation, San Diego County Sheriff’s Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations, U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments collaborated on this investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, also provided critical assistance to the investigation.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States is represented in court by Assistant U.S. Attorneys Kevin Mokhtari, Janaki S. Gandhi and Matthew J. Sutton.
Defendant InformationDEFENDANT Criminal Case No: 17CR1791-JLS
Name
Age
Hometown
Colin Kenneth Jones
AKA “Frosty”
29
Vista, CA
SUMMARY OF CHARGES
Felon in Possession of Ammunition (Title 21, U.S.C., Sec. 922(g)(1));
Conspiracy to Distribute Methamphetamine and Heroin (Title 21, U.S.C., Secs. 841(a)(1), 846);
Conspiracy to Import Heroin (Title 21, U.S.C, Secs. 952, 960, 963).
Maximum Penalties: For heroin charges: 40 years in prison with a mandatory minimum sentence of 5 years, and a $5 million fine. For methamphetamine charge: life in prison with a mandatory minimum sentence of 10 years, and a $10 million fine. For firearms charges: 10 years’ in prison, and a $250,000 fine.DEFENDANTS Criminal Case No: 18CR0872-JLS
Name
Age
Hometown
Ikaika Ryan Chung
AKA “Chino”38
Encinitas, CA
Luis Armando Garcia
AKA “Junior”35
San Marcos, CA
Lauren Nicole Valenzuela
AKA “Huera”23
Surprise, AZ
Christopher Tiburski*
39
Escondido, CA
David Alfaro
AKA “Stranger”23
Encinitas, CA
Edgar Delgadillo
AKA “Big E”24
Encinitas, CA
David Loera*
AKA “Porky”37
Encinitas, CA
Ramon Caldera
AKA “Evil”37
San Marcos, CA
Mark Thomas Reed
39
San Diego, CA
Matthew Wayne Truax
34
Escondido, CA
Megan Renee Brown
32
Encinitas, CA
Melissa Sue Borst
37
Orange County, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Heroin and Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846); Importation of Heroin (Title 21, U.S.C. Secs. 952 and 960).
Maximum Penalties: For the conspiracy charge, life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For the importation of heroin charges, 20 years in prison and a $1 million fine.
DEFENDANTS Criminal Case No: 18CR0873-JLS
Name
Age
Hometown
Anthony Michele DiGiovanni
34
El Cajon, CA
Kimberly Marie Lawson
34
El Cajon, CA
SUMMARY OF CHARGES
Conspiracy to Import Heroin and Methamphetamine (Title 21, U.S.C., Secs. 952, 960, 963);
Importation of Heroin and Methamphetamine (Title 21, U.S.C., Secs. 952, 960).
Maximum Penalties: For conspiracy charge: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For importation charges, one charge carries a maximum 40 years in prison, with a mandatory minimum of 5 years, and $5 million fine; the other two charges carry a maximum 20 years in prison and $1 million fine.
DEFENDANT Criminal Case No: 18CR0874-JLS
Name
Age
Hometown
John Nicholas Hernandez
AKA “Hitman”
36
Los Angeles, CA
SUMMARY OF CHARGES
Use of a Communication Device in Drug-Trafficking Offense (Title 21, U.S.C., Sect. 843(b))
Maximum Penalties: 4 years in prison, $250,000 fine
DEFENDANT Criminal Case No: 18CR1006-JAH
Name
Age
Hometown
Marco Antonio Flores
AKA “Tripps”
38
Oceanside
SUMMARY OF CHARGES
Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: 20 years in prison and a $1 million fine.
DEFENDANT Criminal Case No: 18CR1007-JAH
Name
Age
Hometown
Adrian Gomez
AKA “Bandit”
42
Oceanside
SUMMARY OF CHARGES
Felon in Possession of Ammunition and Firearm, in violation of Title 18, U.S.C., Sec. 922(g).
Maximum Penalties: 10 years in prison and a $250,000 fine.
DEFENDANTS Criminal Case No: 18CR1008-JAH
Name
Age
Hometown
Robert Gonzalez
AKA “Sleepy”
41
Oceanside
Luis Campos
AKA “Monster”
45
Oceanside
Daniel Santiago-Martinez
AKA “Tiny”
26
Oceanside
Martin Rodriguez
AKA “Osama”
30
Oceanside
Sergio Caro
AKA “Soldier”
41
Carlsbad
Raul Lopez
AKA “Lalo,” aka “Speedy”
38
Oceanside
Francisco Arzola
AKA “Spanky”
50
Oceanside
Irma Urena
41
Oceanside
Mario Alcantar
39
Oceanside
SUMMARY OF CHARGES
Conspiracy to Distribute Heroin, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846.
Maximum Penalties: 40 years in prison with a mandatory minimum sentence of 5 years and a $5 million dollar fine.
DEFENDANT Criminal Case No: 18CR1009-JAH
Name
Age
Hometown
Cesar Herrera
AKA “Froggy”
56
Oceanside
SUMMARY OF CHARGES
Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: 20 years in prison and a $1 million fine.
DEFENDANT Criminal Case No: 18CR1010-JAH
Name
Age
Hometown
Theresa Lapolla
52
Oceanside
SUMMARY OF CHARGES
Possession with Intent to Distribute Heroin Within 1000 Feet of a School, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 860.
Maximum Penalties: 80 years in prison with a mandatory minimum sentence of 5 years and a $10 million fine.
DEFENDANT Criminal Case No: 18CR1011-JAH
Name
Age
Hometown
Amando Carrasco Martinez
AKA “Cowboy”
34
Vista
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANTS Criminal Case No: 18CR1012-JAH
Name
Age
Hometown
Benjamin Martinez
AKA “Knuckles”
24
Oceanside
Miguel Silva
AKA “Mikey”
23
Oceanside
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846;
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANT Criminal Case No: 18CR1013-JAH
Name
Age
Hometown
Ray Soto
56
Oceanside
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: 40 years in prison with a mandatory minimum sentence of 5 years and a $5 million fine.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
AGENCIES
North County Regional Gang Task Force, which includes the Federal Bureau of Investigation, San Diego County Sheriff’s Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations, U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments.
Texas Man Wanted by Federal Authorities Sentenced to Prison for Credit Card FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Jose Carlos Terra Izquierdo (24, Amarillo, TX) to 24 months in federal prison for credit card fraud, to run consecutive to the 12 month and 1 day prison sentence he received in the District of Nebraska. The court also ordered Izquierdo to pay restitution to the companies that he defrauded.
According to court documents, in 2016, Izquierdo was convicted of credit card fraud in the District of Nebraska. He was scheduled to turn himself in and begin his prison sentence in March 2017, but instead traveled to Florida in violation of his conditions of release. Federal authorities in Nebraska subsequently issued a warrant for his arrest. On March 2, 2017, Izquierdo was pulled over in Columbia County by the Florida Highway Patrol for an expired Texas tag. During a subsequent search of the vehicle, troopers located a credit card reader and stolen credit card information belonging to more than 50 victims.
This case was investigated by the Florida Highway Patrol and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Texas Man Sentenced to 10 Years in Prison for Hate Crime Assault Based on Victim’s Sexual OrientationRead the Press Release
Chancler Encalade, 20, was sentenced yesterday to 10 years in prison for assaulting a man because of the victim’s sexual orientation, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division.
According to the plea agreement, Encalade admitted he, Nigel Garrett, and another co-defendant, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. Garrett, their other co-defendant, and Encalade subsequently pleaded guilty to hate crime charges from this indictment. Garrett was recently sentenced to 15 years in prison.
“The defendant targeted his victim with violence because of his sexual orientation, and used the internet to facilitate this crime,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute hate crimes such as this one.”
“The defendant not only broke in, but he did it specifically to intimidate individuals because of their sexual orientation,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “This is the kind of case where federal and local law enforcement should come together, and that happened effectively here.”
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Teenage Dealer of Deadly Drugs Sentenced to 5 Years in PrisonRead the Press Release
PITTSBURGH – A teenage resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to 60 months imprisonment, followed by three years supervised release, on a charge of violating federal drug laws. The Court also ordered Tristin Bradley Axton, 19, of Greensburg, to pay $8,120.00 for the funeral expenses of the victim, United States Attorney Scott W. Brady announced today.
According to information presented to the Court, while Axton was a juvenile, he sold opiates that caused the death of victim Anthony Terrant on August 16, 2015. On September 20, 2016, when Axton was barely 18, federal law enforcement officers apprehended Axton in the middle of selling 50 stamp bags of heroin and he was also found to possess additional amounts of heroin and three cellphones. In court, Axton specifically admitted to selling the drugs which caused Mr. Terrant’s death.
United States District Judge Cathy Bissoon noted the "very serious nature of this offense" when imposing the sentence on Axton. The Judge ordered that 50% of Axton’s prison salary and, after his release from federal prison, a minimum of 10% of his gross earnings be set aside to pay his debt to the victim’s family for the victim’s funeral expenses.
Assistant United States Attorneys Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Washington County Sheriff’s Office, the Washington County District Attorney’s Office, and local police departments including the Canonsburg Police Department, the Charleroi Police Department, the Rostraver Township Police Department and the Monessen Police Department, as well as the Washington County Coroner’s Office and the Allegheny County Medical Examiner’s Office, for the investigation leading to the successful prosecution of Axton.
Supervisor of Fraudulent Debt Collection Company Pleads Guilty for His Role in Conspiracy to Defraud Victims Throughout the United StatesRead the Press Release
CHARLOTTE, N.C. – Ronald Shane Hough, 50, of Mt. Holly, N.C. pleaded guilty to federal charges for his role in a fraudulent debt collection scheme operating out of Mecklenburg County, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins the U.S. Attorney’s Office in making today’s announcement.
Hough appeared before U.S. Magistrate Judge David C. Keesler and admitted he was a collections manager for Direct Processing LLC (Direct Processing), a fraudulent debt collection company. According to documents filed in connection with the guilty plea, while working there, Hough and others defrauded victims by using fraudulent misrepresentations and threatening and abusive tactics to induce victims to pay money they purportedly owed. The fraudulent tactics included using fictitious company names in communications with victims and falsely representing that there was pending litigation or charges against victims. The filed criminal bill of information states that, between January 2013 and July 2014, Hough and others at Direct Processing defrauded thousands of individuals throughout the United States of between $550,000 and $1,000,000.
“Hough is a financial predator who harassed, bullied and tricked victims into paying off debts that, in many instances, were not owed. The victims targeted by the scheme, some of whom were elderly, were forced to pay off debts, many times fictitious, just to get the harassing calls to stop. Protecting Americans from financial exploitation is a priority for this office and we will continue to go after fraudulent debt collection companies that use threats and lies to force victims into submitting to demands for money,” said U.S. Attorney Murray.
Hough pled guilty to conspiracy to commit mail and wire fraud. The maximum prison term for the charge is five years. A sentencing date has not yet been set.
The Federal Bureau of Investigation led the investigation. Assistant United States Attorney William M. Miller, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Speech Therapist and Clinic Owner Found Guilty in Health Care Fraud SchemeRead the Press Release
BROWNSVILLE, Texas ‐ A federal judge has imposed a guilty verdict against a speech therapist and part-owner of a pediatric speech therapy for conspiring to defraud Texas Medicaid through fraudulent billings, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge Andrew Hanen presided over the seven-day trial that occurred in September 2017. Today, the court found Georgia Phillips, 67, of Olmito, guilty of conspiracy to commit health care fraud. Judge Hanen found that she conspired with the clinic’s biller to submit false and fraudulent claims to Texas Medicaid on behalf of Children’s First Pediatric Rehabilitation (CFPR) in Harlingen and Georgia M. Phillips LLC in Brownsville.
The evidence presented during the bench trial showed that the biller for CFPR and Georgia M. Phillips LLC submitted thousands of false and fraudulent claims to Texas Medicaid for children’s therapy services that were not provided, submitted duplicate bills for therapy services that had already been paid by Medicaid and overbilled therapy services that were provided.
The court heard evidence that from May 1, 2009, to May 31, 2012, CFPR and Georgia M. Phillips LLC submitted false and fraudulent claims totaling $821,145 to Texas Medicaid for children’s therapy services allegedly provided to Texas Medicaid recipients on behalf of the two companies.
The defense attempted to convince the judge that the fraudulent claims were the result of sloppy billing on the part of the biller. Judge Hanen did not believe defense’s argument and found Georgia Phillips guilty of conspiring to defraud Texas Medicaid.
Conspiracy to commit health care fraud carries a maximum punishment of 10 years in federal prison and a potential $250,000 maximum fine.
Sentencing has been set for June 5, 2018. Phillips was permitted to remain on bond pending that hearing.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services‐Office of Inspector General, FBI and the Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
South Bend Man ChargedRead the Press Release
SOUTH BEND – Branden Furnari, 31, of South Bend, Indiana was charged with possession of a firearm (destructive device) not registered in the National Firearms Registration Record.
According to documents in this case, Furnari was arrested after allegedly selling destructive devices to an undercover law enforcement officer. Furnari explained in detail how to assemble the components using the “Det cord” and “Blasting caps” which was all provided in the transaction for $800 dollars to the undercover officer.
U.S. Attorney Kirsch, “My office will continue to aggressively prosecute violations of federal firearms laws.”
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the ATF with the assistance of the South Bend Police Department. This case is being handled by Assistant U.S. Attorney Jesse Barrett.
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