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12 April 2018
Department of Justice Begins Second Distribution of Funds Recovered Through Asset Forfeiture Totaling $1.2 Billion to Compensate Victims of Bernard Madoff Fraud SchemeRead the Press Release
The Department of Justice today announced that on April 12, the Madoff Victim Fund (MVF) began its second distribution of $504 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to over $1.2 billion. These funds will be sent to over 21,000 victims across the globe. This distribution represents the second in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. The MVF has received over 65,000 petitions from victims in 136 countries.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement.
“In one of the most notorious and unconscionable financial crimes in history, Bernie Madoff robbed tens of thousands of individuals, pension plans, charitable organizations and others, all the while funding a lavish personal lifestyle,” said Attorney General Sessions. “Through the use of asset forfeiture, the Department of Justice has recovered over $4 billion of Mr. Madoff’s fraud, and we continue to work to compensate those he defrauded. Last June, the Department approved more than 39,000 petitions for compensation. Today, during National Crime Victims’ Rights Week, the Department returns more than a half-billion dollars to nearly 22,000 law-abiding people and organizations. We cannot undo the damage that Bernie Madoff has done, but today’s distribution will provide significant relief to many of the victims of one of the worst frauds of all time.”
“Bernie Madoff committed history’s largest Ponzi scheme,” said U.S. Attorney Berman. “This Office prosecuted Madoff himself, and others who helped perpetrate his fraud, and continues to vigorously pursue money recoveries for his victims. Today’s payment of more than $500 million is this Office’s second installment in a series of distributions that represent our ongoing commitment to find relief for victims of Madoff’s heinous crimes.”
For decades, Bernard L. Madoff used his position as Chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle. On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered Madoff to forfeit $170.799 billion as part of Madoff’s sentence.
Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case. The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected]
Crime Victims, Survivors, Good Samaritans and Community Members Honored at Event Marking National Crime Victims’ Rights WeekRead the Press Release
WASHINGTON - U.S. Attorney Jessie K. Liu and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia paid tribute today to crime victims, their families, witnesses, community members, criminal justice partners, and Good Samaritans for their bravery, compassion, and dedication to the pursuit of justice.
More than two dozen honorees were recognized during an event at the Ceremonial Courtroom of the District of Columbia Court of Appeals. The ceremony was timed with the annual observance of National Crime Victims’ Rights Week. This year’s national theme, “Expand the Circle: Reach All Victims,” emphasizes the importance of inclusion in victim services and addresses the need to ensure that every crime victim has access to services and support, and for professionals, organizations, and communities to work in tandem.
“We draw inspiration every day from the bravery, resilience and strength shown by victims, witnesses, and the many people in our community who stand up for justice,” said U.S. Attorney Liu. “The people being honored today remind us of the importance of thinking creatively and collaboratively to reach all those victims who need help.”
The featured speaker was Fainess Lipenga, a survivor of labor trafficking who now shares her experience to educate the community and raise awareness. Ms. Lipenga told of working 16 and 17-hour work days, seven days a week, as a domestic employee. She was able to flee from the ordeal and now is a consultant for the Human Trafficking Legal Center, training lawyers and other professionals nationwide. She also has been a member of the National Survivor Network, a program of the Coalition to Abolish Slavery and Trafficking (CAST). She spoke of the kindness of people who helped her start a new life.
In addition to Ms. Lipenga, the U.S. Attorney’s Office honored other individual victims, survivors, Good Samaritans, and partners whose efforts furthered the cause of justice.
For example, the honorees included a teenager who showed great strength and tenacity in testifying against a twice-convicted sex offender who sexually abused her in 2016 at the Potomac Avenue Metro Station; a woman who urged the Metropolitan Police Department to take another look at the 1999 murder of her father, leading to the solving of the case, and a Good Samaritan who aided a woman who was being sexually assaulted in 2017 in the back of a taxicab. The Good Samaritan, a motorist, saw the woman in the passenger seat of the cab in the 4900 block of 16th Street NW, waving for help and fighting the taxi driver. He made a U-turn and pulled in front of the taxi, forcing it to stop. The woman was able to escape. The Good Samaritan called police, waited for them to arrive and the taxi driver was caught and later convicted of his crimes.
The honorees also included a neighbor who did all that he could to aid a dying homicide victim who showed up at his doorstep in Southeast Washington. The victim, Darlene Bryant, was stabbed in the neck on May 13, 2015, inside the stairwell of a building on Wheeler Road SE. Ms. Bryant, 46, made her way down the stairs, stumbled to the street, and banged on the neighbor’s door. The neighbor tried to comfort her and cover the wound, in addition to calling 911 and diligently following instructions of the 911 operator. Despite these heroic efforts, Ms. Bryant died on his front steps. The neighbor did not see who killed Ms. Bryant, but described her final moments at the trial of the man later convicted of the murder.
The U.S. Attorney’s Office also recognized the extraordinary efforts of partners who provided support to victims’ families during the three-week trial last year that ended with the convictions of two Mexican nationals for the killing of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Special Agent Jaime Zapata and the attempted murder of ICE HSI Special Agent Victor Avila on Feb. 15, 2011, in Mexico. More than 20 members of the Special Agents’ families attended the trial and were greeted and aided daily by the U.S. Marshals Service and the Court Security Officers at the U.S. District Court for the District of Columbia. Additionally, the Capital Area Law Enforcement Foundation (CALE) assisted the family members, including hosting a dinner for them and arranging a meeting with Peter Newsham, Chief of the Metropolitan Police Department (MPD) during their time in Washington. Finally, Aaron Adaway, Administrative Assistant to Chief Judge Beryl A. Howell, was honored for the special care he showed during the trial.
Today’s event was developed and organized by the Victim Witness Assistance Unit of the U.S. Attorney’s Office. Members of the Unit provide essential services and support to victims and witnesses, such as making referrals for counseling and other services, addressing safety concerns, arranging travel, and accompanying victims to court proceedings. The Unit also notifies victims of their rights and provides information regarding significant case events, such as the filing of charges, plea hearings, trials and sentencing hearings.
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Additional information about the Victim Witness Assistance Unit is available at https://www.justice.gov/usao-dc/victim-witness-assistance
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/
Each year in April, the Department of Justice and United States Attorney’s Offices nationwide observe National Crime Victims’ Rights Week by honoring victims of crime and those who advocate on their behalf. The Justice Department will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime.
“In law enforcement, we are sworn to serve and protect,” said Attorney General Jeff Sessions. “We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America."
Convicted Felon Pleads Guilty to Unlawfully Possessing a FirearmRead the Press Release
Jackson, Miss. – Darryl Jones, 36, of Jackson, pled guilty today, before Chief U.S. District Judge Daniel P. Jordan III, to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Jones has an extensive criminal history, which includes convictions for several drug-related felony offenses.
Jones will be sentenced in Jackson by Chief Judge Daniel P. Jordan III on July 17, 2018, and faces a maximum penalty of 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jackson Police Department. It is being prosecuted by the United States Attorney’s Office in Jackson.
Cleveland man indicted for selling fentanyl and other drugsRead the Press Release
A Cleveland man was indicted for selling fentanyl and other drugs.
Hamilton Greathouse, 36, was indicted on two counts of possession with intent to distribute controlled substances. Greathouse had 52 grams of fentanyl and 154 grams of N-Ethylpentylone on Dec. 15, 2017, according to the indictment.
Assistant U.S. Attorney Margaret Sweeney is prosecuting the case following in investigation by the Northern Ohio Law Enforcement Task Force and U.S. Pretrial Services
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted for having a firearm after numerous violent felony convictionsRead the Press Release
A Cleveland man was indicted on federal firearms charges, said U.S. Attorney Justin E. Herdman.
Demetrius Hansbro, 39, was indicted on one count of being a felon in possession of a firearm. Hansbro possessed a Glock 19, Model GEN 4, 9mm caliber pistol and ammunition, despite numerous prior felony convictions that made it illegal for him to have a firearm, including robbery, assault, aggravated assault, domestic violence, child endangering and drug offenses, according to the indictment.
Assistant U.S. Attorney Kathryn G. Andrachik is prosecuting the case following an investigation by the Euclid Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chinese Citizen Pleads Guilty to Mail Fraud Related to Dietary Supplement SchemeRead the Press Release
DALLAS – Zhang Xiao Dong (a.k.a. Mark Zhang), of Shanghai, China, pleaded guilty today in Dallas to committing mail fraud in connection with a scheme to sell mislabeled dietary supplements, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Zhang was the sales manager for Genabolix USA Inc. and Shanghai Yongyi Biotechnology Co. Ltd., Chinese firms that sell raw ingredients for use in dietary supplements. In pleading guilty, Zhang admitted that he agreed to help sell synthetic stimulant ingredients, including the substance known as 1,4-DMAA, to a purported dietary supplement manufacturer in the United States. According to an indictment returned in October 2017, Zhang and two co-defendants agreed with a confidential government informant to either mislabel the synthetic ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers. Zhang admitted that he knew major American dietary supplement retailers would refuse to carry supplements known to contain certain stimulants, such as DMAA.
“Americans should be able to trust the products they consume are safe,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will continue to investigate and prosecute those who enable the sale of mislabeled and potentially unsafe dietary supplements.”
Zhang pleaded guilty before U.S. Magistrate Judge David Horan of the Northern District of Texas. He faces a statutory maximum sentence of 20 years of imprisonment. The Court set sentencing for Oct. 15.
“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue and bring to justice those who participate in fraudulently marketing dietary supplements to the detriment of public health.”
Zhang was arrested in September 2017 along with a co-defendant, Gao Mei Fang, while attending a dietary supplement trade show in Las Vegas. Gao pleaded guilty on April 3, 2018. A third defendant named in the case, Hu Chang Chun, is not believed to be in the United States.
The case was investigated by FDA’s Office of Criminal Investigations. The case was prosecuted by Kate Rumsey, Assistant United States Attorney for the Northern District of Texas; and David Sullivan and Patrick R. Runkle, Trial Attorneys in the Department of Justice’s Consumer Protection Branch.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
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Chinese Citizen Pleads Guilty to Mail Fraud Related to Dietary Supplement SchemeRead the Press Release
Zhang Xiao Dong (a.k.a. Mark Zhang), of Shanghai, China, pleaded guilty in Dallas to committing mail fraud in connection with a scheme to sell mislabeled dietary supplements, the Department of Justice announced today.
Zhang was the sales manager for Genabolix USA Inc. and Shanghai Yongyi Biotechnology Co. Ltd., Chinese firms that sell raw ingredients for use in dietary supplements. In pleading guilty, Zhang admitted that he agreed to help sell synthetic stimulant ingredients, including the substance known as 1,4-DMAA, to a purported dietary supplement manufacturer in the United States. According to an indictment returned in October 2017, Zhang and two co-defendants agreed with a confidential government informant to either mislabel the synthetic ingredients or otherwise help to hide the true nature of a proposed dietary supplement from retailers. Zhang admitted that he knew major American dietary supplement retailers would refuse to carry supplements known to contain certain stimulants, such as DMAA.
“Americans should be able to trust the products they consume are safe,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will continue to investigate and prosecute those who enable the sale of mislabeled and potentially unsafe dietary supplements.”
Zhang pleaded guilty before U.S. Magistrate Judge David Horan of the Northern District of Texas. He faces a statutory maximum sentence of 20 years of imprisonment. The Court set sentencing for Oct. 15.
“U.S. consumers trust that their dietary supplements are safe and contain appropriate labeling. When unscrupulous producers add undeclared or misidentified ingredients to dietary supplements, there is no assurance that the product is safe for consumption,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue and bring to justice those who participate in fraudulently marketing dietary supplements to the detriment of public health.”
Zhang was arrested in September 2017 along with a co-defendant, Gao Mei Fang, while attending a dietary supplement trade show in Las Vegas. Gao pleaded guilty on April 3, 2018. A third defendant named in the case, Hu Chang Chun, is not believed to be in the United States.
The case was investigated by FDA’s Office of Criminal Investigations. The case was prosecuted by Kate Rumsey, Assistant United States Attorney for the Northern District of Texas; and David Sullivan and Patrick R. Runkle, Trial Attorneys in the Department of Justice’s Consumer Protection Branch.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Charter Captain Arrested and Charged Federally with Misconduct or Neglect that Resulted in DeathRead the Press Release
Yesterday, Mauricio Alvarez, 49, of Miami, Florida, was ordered to be detained by United States Magistrate Judge Jonathan Goodman on a criminal complaint charging him with misconduct or neglect of a ship officer that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.
Benjamin G. Greenberg, United States Attorney of the Southern District of Florida, Thomas Robarge, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS), Southeast Region, and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.
According to the criminal complaint, on April 1, 2018, the United States Coast Guard (USCG) received a report from a Miami-Dade 911 operator that a person was trapped under the motor yacht (M/Y) MIAMI VICE, near Monument Island. USCG and local law enforcement units arrived at the scene of the reported incident and located M/Y MIAMI VICE adjacent to Monument Island. An investigation by FWC revealed M/Y MIAMI VICE was chartered for a four-hour period on April 1, 2018 and departed a marina with approximately seven passengers. The complaint alleges that Alvarez was employed as the vessel captain of M/Y MIAMI VICE and that he had a first mate on board the vessel. M/Y MIAMI VICE had been chartered for a four-hour trip for $3,000 and Alvarez was to be paid $150 per hour.
According to the complaint, two passengers were reportedly in the water in close proximity to the stern of M/Y MIAMI VICE when Alvarez engaged the engines of M/Y MIAMI VICE in reverse. Preliminary information indicates that one of the individuals, who was swimming in the water, was struck by M/Y MIAMI VICE’s propellers and killed. The complaint alleges that Alvarez, as the operator of the M/Y MIAMI VICE, could not see the stern of the vessel or ensure the safety of any remaining swimmers in the water while engaging the engines from this location without assistance from another individual. The complaint further alleges that Alvarez did not have a United States Captain license at the time of the incident.
Alvarez was arrested on April 6, 2018 at Fort Lauderdale-Hollywood International Airport, as he attempted to board an overseas flight. The next hearing is scheduled for April 20, 2018.
The charge of misconduct or neglect of a ship officer carries a maximum potential sentence of ten years’ imprisonment.
Mr. Greenberg commended the investigative efforts of CGIS and FWC in this matter. This case is being prosecuted by Special Assistant U.S. Attorney Emily A. Rose.
A criminal complaint is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Charleston Felon Sentenced to Six Years in Federal Prison for Drug DistributionRead the Press Release
CHARLESTON, W.Va. – A Charleston felon, who sold heroin, fentanyl, and methamphetamine was sentenced to six years in federal prison, announced United States Attorney Mike Stuart. Christopher Rush, 32, previously pled guilty to distribution of heroin. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT).
“A repeat drug dealer and, now a repeat convicted felon. Getting him and others like him off the streets is a priority for me,” said United States Attorney Mike Stuart. “Sending him to prison is a win for law enforcement and the general public.”
Rush previously admitted that on May 10, 2017, he sold heroin to a confidential informant working with MDENT. The drug deal took place in Charleston, West Virginia. He also admitted that he sold heroin, fentanyl, and methamphetamine to this same confidential informant on three other occasions. Based on the four controlled drug buys, officers with MDENT obtained a search warrant for Rush’s residence. On May 31, 2017, officers executed that search warrant and found in excess of 100 grams of crystal methamphetamine that had a purity of 99 percent. Rush admitted to law enforcement officers that the methamphetamine belonged to him.
Assistant United States Attorneys C. Haley Bunn and Timothy D. Boggess handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Burlington County, New Jersey, Pharmacist Sentenced to 15 Years in Prison for Illegally Distributing Opioids from ‘Pill Mills’Read the Press Release
CAMDEN, N.J. – A Medford, New Jersey, pharmacist was sentenced today to 180 months in prison for illegally distributing and dispensing oxycodone from two pharmacies located in Medford, U.S. Attorney Craig Carpenito announced.
Michael Ludwikowski, 46, the owner of Olde Medford Pharmacy and Medford Family Pharmacy, was previously convicted of six counts in an indictment charging him with illegally distributing and dispensing oxycodone, a Schedule II controlled substance, and maintaining a drug-involved premises. He was convicted following a five-week trial before U.S. District Judge Jerome B. Simandle, who imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court: From March 2008 through August 2013, Ludwikowski, the pharmacist-in-charge of Olde Medford Pharmacy, and his employee, David M. Goldfield, 60, of Medford Lakes, New Jersey, knowingly distributed and dispensed oxycodone and other controlled substances to individuals, including addicts, who presented phony prescriptions.
Ludwikowski ordered large quantities of oxycodone from a national distributor. The distributor established thresholds for the quantity of controlled substances that it supplied to certain pharmacies. Ludwikowski and his pharmacies received large quantities of 30mg oxycodone pills, even though he knew the painkiller was not going to be used for legitimate medical reasons.
In some instances, the customers presented fraudulent prescriptions for a non-narcotic substance that had been “washed,” or “bleached,” through a chemical process that removed the original writing. The customers then rewrote the prescriptions for their drug of choice, oxycodone. Ludwikowski and Goldfield also ignored concerns raised by an employee who pointed out an obviously altered prescription.
Customers who used the fraudulent prescriptions generally paid in cash and provided gifts to Ludwikowski and Goldfield. In some instances, these customers filled fraudulent prescriptions for oxycodone multiple times a week.
In furtherance of the scheme, Ludwikowski and another pharmacist he employed – referred to in the indictment as “Pharmacist 3” – reached an agreement with a physician –referred to in the indictment as “Doctor 1” – to “steer” Doctor 1’s patients to Ludwikowski’s pharmacies. In a text message from Pharmacist 3 to Ludwikowski on Jan. 11, 2013, Pharmacist 3 wrote: “I talked to [Doctor 1] and he is going to direct all of his patients to us he is the pain doc in Cherry Hill.”
In addition to the prison term, Judge Simandle sentenced Ludwikowski to five years of supervised released, 1,000 hours of community service and ordered him to pay a fine of $12,000.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to today’s sentencing.
The government is represented Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Edwin J. Jacobs Jr. Esq., Atlantic City, New Jersey
Bulgarian National Arrested for Conspiracy to Defraud the United States and Illegally Export Prohibited Articles to Syria in Violation of U.S. Export Control LawsRead the Press Release
Zhelyaz Andreev, 29, a Bulgarian national, was arrested pursuant to an Interpol Red Notice based on an Indictment charging him with: conspiracy to defraud the U.S. Government and substantive violations of the Syria Trade Embargo as enforced through the International Emergency Economic Powers Act (IEEPA); and the U.S. Department of Treasury Office of Foreign Assets Control’s (OFAC’s) designation of Syrian Arab Airlines, aka Syrian Air, as a Specially Designated National (SDN) whose assets are blocked and with whom U.S. nationals are prohibited from transacting business.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Robert Luzzi of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Andreev was charged with conspiracy to violate IEEPA and the OFAC regulations by exporting dual-use goods, that is, articles that have both civilian and military application, to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by OFAC for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC).
According to court documents, Andreev worked in the Bulgaria office of AW-Tronics, a Miami export company, which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Andreev dealt directly with the Syrian Air principals who procured the parts.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI, DOC, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Defense Criminal Investigative Service, U.S. Customs and Border Protection, and the South Florida JTTF. This case is being prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Thakur of the Southern District of Florida; and Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bulgarian National Arrested Pursuant to a U.S.-Issued Red NoticeRead the Press Release
A Bulgarian national has been arrested pursuant to a U.S.-issued Red Notice processed by INTERPOL Washington—the U.S. National Central Bureau. Zhelyaz Andreev, 29, was indicted and charged with conspiracy to defraud the U.S. Government and substantive violations of the Syria Trade Embargo. Read the full news release here.
One of the primary missions of INTERPOL and INTERPOL Washington is to seek the location, and ultimately the arrest, of fugitives wanted in the United States and in other countries. INTERPOL Washington assists federal, state, local, and tribal authorities in the United States seeking the location of fugitives who have fled the United States, and assists foreign police in locating their fugitives believed to be in the United States. INTERPOL Washington is also responsible for seeking the publication of all INTERPOL Notices, including Red or wanted fugitives Notices, on behalf of U.S. authorities, and alerting U.S. authorities to the existence of INTERPOL Notices published on behalf of other countries.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Bothell, Wa Man Indicted for Sex Crimes Involving 14-Year-Old ChildRead the Press Release
A 24-year-old Bothell, Washington resident was indicted today by a federal grand jury on three counts of traveling for sex with a minor and one count of production of child pornography, announced U.S. Attorney Annette L. Hayes. THOMAS MAHONEY faces a mandatory minimum sentence of 15 years in prison if convicted. MAHONEY was arrested on state charges in October 2017, and was transferred to federal custody last month. Arraignment on the indictment will be scheduled later this month.
According to records filed in the case, Facebook notified the National Center for Missing and Exploited Children (NCMEC) about sexual conversations and photos being exchanged between an adult and child over its network. The information was provided to law enforcement in California where the young victim was located, and to the Seattle Internet Crimes against Children Task Force (ICAC) which traced the internet address to MAHONEY. Law enforcement served a court authorized search warrant on MAHONEY’s residence and obtained his electronic devices for analysis. Travel records confirm information from the victim that MAHONEY traveled to California three times in 2016 and 2017 to have sex with the victim. The victim was 12 years-old when MAHONEY ‘friended’ the victim on Facebook and was 14 years-old when MAHONEY initiated sex. MAHONEY made videos of the sexual contact, thereby producing child pornography.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by Homeland Security Investigations (HSI) in coordination with the Seattle Police Department and the Internet Crimes Against Children Task Force (ICAC). The Contra County California District Attorney’s Office, the U.S. Attorney’s Office in the Northern District of California, and the Snohomish County Sheriff’s Department are key partners in the investigation.
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson, with assistance from Assistant United States Attorney Christina McCall of the Northern District of California. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Biloxi Felon Pleads Guilty to Possession of FirearmRead the Press Release
Gulfport, Miss – Charles Nevotney Bolton, 33, of Biloxi, entered a guilty plea today before U.S. District Judge Louis Guirola, Jr. to an indictment charging him as a felon in possession of a firearm, announced U. S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bolton was charged after he admitted selling methamphetamine to a confidential informant and Biloxi police obtained a search warrant for his home where they found marijuana, methamphetamine and a handgun. Bolton has multiple felony convictions dating back to 2005.
Bolton faces a maximum penalty of 10 years in prison followed by three years of supervised release and a $250,000 fine. He will be sentenced by Judge Guirola on July 17, 2018, at 10:00 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Biloxi Police Department. Assistant United States Attorney Annette Williams is prosecuting the case.
Banner Health Agrees to Pay over $18 Million to Settle False Claims Act AllegationsRead the Press Release
Banner Health has agreed to pay the United States over $18 million to settle allegations that 12 of its hospitals in Arizona and Colorado knowingly submitted false claims to Medicare by admitting patients who could have been treated on a less costly outpatient basis, the Justice Department announced today. Headquartered in Arizona, Banner Health owns and operates 28 acute-care hospitals in multiple states.
“Taxpayers should not bear the burden of inpatient services that patients do not need,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “The Department will continue its efforts to stop abuses of the nation’s health care resources and to ensure that patients receive the most appropriate care.”
The settlement resolves allegations that 12 Banner Health hospitals knowingly overcharged Medicare patients unnecessarily. In particular, the United States alleged that from Nov. 1, 2007 through Dec. 31, 2016, Banner Health billed Medicare for short-stay, inpatient procedures provided at the 12 hospitals that should have been billed on a less costly outpatient basis. The settlement also resolves allegations that Banner Health inflated in reports to Medicare the number of hours for which patients received outpatient observation care during this time period.
“This enforcement action is another example of this office’s commitment to protecting the Medicare program,” said Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona. “The United States Attorney’s Office, working with our law enforcement partners, will continue to protect Medicare by aggressively pursuing False Claims Act allegations of wrongdoing in the health care industry.”
Banner Health also entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Banner Health is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
“Hospitals that bill Medicare for more expensive services than are necessary will be held accountable,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Medical decisions should be made based on patients’ conditions and needs, not on providers’ profits.”
This settlement resolves a lawsuit filed in the U.S. District Court for the District of Arizona by Cecilia Guardiola, a former employee of Banner Health, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Guardiola will receive roughly $3.3 million. The case is captioned United States ex rel. Guardiola v. Banner Health and NCMC, Inc. No. 2:13-cv-02443.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The settlement was a result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the District of Arizona and the HHS-OIG. The claims resolved by this settlement are allegations only and there has been no determination of liability.
Banner Health Agrees to Pay over $18 Million to Settle False Claims Act AllegationsRead the Press Release
PHOENIX – Banner Health has agreed to pay the United States over $18 million to settle allegations that 12 of its hospitals in Arizona and Colorado knowingly submitted false claims to Medicare by admitting patients who could have been treated on a less costly outpatient basis, the United States Attorney’s Office for the District of Arizona announced today. Headquartered in Arizona, Banner Health owns and operates 28 acute-care hospitals in multiple states.
The settlement resolves allegations that 12 Banner Health hospitals knowingly overcharged Medicare patients unnecessarily. In particular, the United States alleged that from November 1, 2007, through December 31, 2016, Banner Health billed Medicare for short-stay, inpatient procedures provided at the 12 hospitals that should have been billed on a less costly outpatient basis. The settlement also resolves allegations that Banner Health inflated in reports to Medicare the number of hours for which patients received outpatient observation care during this time period.
“Taxpayers should not bear the burden of inpatient services that patients do not need,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “The Department will continue its efforts to stop abuses of the nation’s health care resources and to ensure that patients receive the most appropriate care.”
“This enforcement action is another example of this office’s commitment to protecting the Medicare program,” said Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona. “The United States Attorney’s Office, working with our law enforcement partners, will continue to protect Medicare by aggressively pursuing False Claims Act allegations of wrongdoing in the health care industry.”
“Hospitals that bill Medicare for more expensive services than are necessary will be held accountable,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Medical decisions should be made based on patients’ conditions and needs, not on providers’ profits.”
Banner Health also entered into a corporate integrity agreement with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) requiring the company to engage in significant compliance efforts over the next five years. Under the agreement, Banner Health is required to retain an independent review organization to review the accuracy of the company’s claims for services furnished to federal health care program beneficiaries.
This settlement resolves a lawsuit filed in the United States District Court for the District of Arizona by Cecilia Guardiola, a former employee of Banner Health, under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. Ms. Guardiola will receive roughly $3.3 million. The case is captioned United States ex rel. Guardiola v. Banner Health and NCMC, Inc., No. 2:13-CV-02443.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.
The settlement was a result of a coordinated effort by the Civil Division, the United States Attorney’s Office for the District of Arizona, and the HHS-OIG. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
RELEASE NUMBER: 2018-035_Banner
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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.
Bangor Man Sentenced to 40 Years for Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Jeffrey Swimm, 38, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 40 years in prison and supervised release for life for sexual exploitation of children and possession of child pornography. Swimm pled guilty on August 23, 2017.
According to court records, between about October 2012 and April 2017, Swimm produced still-image and video files depicting child pornography, some of which were produced using a camera hidden in the defendant’s bathroom. Swimm admitted to agents that, over a three year period, he produced pornographic images and videos depicting multiple prepubescent minors, so that he had them to trade with other people he met on-line. In addition, the defendant possessed other images and videos of child pornography depicting children under the age of 12 which he solicited and received over the internet.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Backpage’s Co-founder and CEO, as Well as Several Backpage-Related Corporate Entities, Enter Guilty PleasRead the Press Release
Earlier this week, the Justice Department announced the seizure of Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children, and the unsealing of a 93-count federal indictment against seven Backpage principals. Today, the Justice Department announced that Backpage’s co-founder and CEO, Carl Ferrer, 57, of Frisco, Texas, has pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering. Additionally, several Backpage-related corporate entities, including Backpage.com LLC, have entered guilty pleas to conspiracy to engage in money laundering.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, FBI Director Christopher A. Wray, U.S. Postal Inspection Service Chief Postal Inspector Guy Cottrell and Chief Don Fort of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
“For far too long, Backpage.com existed as the dominant marketplace for illicit commercial sex, a place where sex traffickers frequently advertised children and adults alike,” said Attorney General Sessions. “But this illegality stops right now. Last Friday, the Department of Justice seized Backpage, and it can no longer be used by criminals to promote and facilitate human trafficking. I want to thank everyone who made this important seizure possible: all of our dedicated and committed professionals in the Child Exploitation and Obscenity Section and our U.S. Attorney’s Office in the District of Arizona, the FBI, our partners with the IRS Criminal Investigation, our Postal Inspectors, and the Texas and California Attorney Generals’ offices. With their help, we have put an end to the violence, abuse, and heartache that has been perpetrated using this site, and we have taken a major step toward keeping women and children across America safe.”
“Backpage has earned hundreds of millions of dollars from facilitating prostitution and sex trafficking, placing profits over the well-being and safety of the many thousands of women and children who were victimized by its practices,” said First Assistant U.S. Attorney Elizabeth A. Strange. “It is appropriate that Backpage is now facing criminal charges in Arizona, where the company was founded, and I applaud the tremendous efforts of the agents who contributed to last Friday’s enforcement action and who assisted in obtaining the indictment in this case. Some of the internal emails and company documents described in the indictment are shocking in their callousness.”
“This website will no longer serve as a platform for human traffickers to thrive, and those who were complicit in its use to exploit human beings for monetary gain will be held accountable for their heinous actions,” said FBI Director Wray. “Whether on the street or on the Internet, sex trafficking will not be tolerated. Together with our law enforcement partners, the FBI will continue to vigorously combat this activity and protect those who are victimized.”
“The events of last Friday and this week are a big win, not only for the agents who investigated these crimes, but more importantly for the victims, including children, who were harmed as a consequence of the alleged actions of Backpage.com,” said Chief Postal Inspector Cottrell. “By laundering the illegal gains of an enterprise, Backpage perpetuated the exploitation of victims and continued to finance their business. The U.S. Postal Inspection Service is committed to protecting our customers by stopping the money laundering to ensure the cycle of victimization ends.”
“An indictment of this magnitude is particularly troubling when you look at the various layers of corruption and exploitation that are alleged to have occurred,” said IRS-CI Chief Fort. “The masterminds behind Backpage are not only alleged to have committed egregious amounts of financial crimes such as money laundering, they did so at the expense of innocent women and children. While these types of investigations can be made more challenging with the use of virtual currency, offshore banking, and the anonymity of the Internet, it should serve as an example to all criminals that there is not a place they can hide where we will not find them.”
According to the factual basis of his plea agreement, Ferrer admitted that he had long been aware that the great majority of Backpage’s “escort” and “adult” advertisements are, in fact, advertisements for prostitution services, which are not protected by the First Amendment and which are illegal in 49 states and in much of Nevada. Ferrer further admitted that he conspired with other Backpage principals to find ways to knowingly facilitate the state-law prostitution crimes being committed by Backpage’s customers. For example, he worked with his co-conspirators to create “moderation” processes through which Backpage would remove terms and pictures that were particularly indicative of prostitution and then publish a revised version of the ad. Ferrer admitted that these editing practices were only one component of an overall, company-wide culture and policy of concealing and refusing to officially acknowledge the true nature of the services being offered in Backpage’s “escort” and “adult” ads.
In the factual basis of his plea agreement, Ferrer also admitted that he conspired with other Backpage principals to engage in various money laundering offenses. According to the factual basis, since 2004, Backpage has earned hundreds of millions of dollars in revenue from publishing “escort” and “adult” ads. Over time, many banks, credit card companies, and other financial institutions refused to do business with Backpage due to the illegal nature of its business. In response, Ferrer admitted that he worked with his co-conspirators to find ways to fool credit card companies into believing that Backpage-associated charges were being incurred on different websites, to route Backpage-related payments and proceeds through bank accounts held in the name of seemingly unconnected entities, and to use cryptocurrency-processing companies for similar purposes.
Ferrer’s plea agreement also requires him to take all steps within his power to immediately shut down the Backpage website, including providing technical assistance to the United States to effectuate the shutdown, and to take all steps within his power to forfeit to the United States all corporate assets and other property owned or controlled by various Backpage-related entities. The plea agreement provides that, if Ferrer fails to comply with either of these requirements, the plea agreement shall be null and void and the United States may bring additional charges against Ferrer. Ferrer’s plea agreement, and the corporate plea agreements, also consent to the forfeiture of certain assets and items of property, including various domain names associated with the Backpage website.
The seven defendants charged in the 93-count indictment were all arrested on Friday, April 6. They are Michael Lacey, 69, of Paradise Valley, Arizona; James Larkin, 68, of Paradise Valley, Arizona; Scott Spear, 67, of Scottsdale, Arizona; John E. “Jed” Brunst, 66, of Phoenix, Arizona; Daniel Hyer, 49, of Dallas, Texas; Andrew Padilla, 45, of Plano, Texas; and Jaala Joye Vaught, 37, of Addison, Texas. On April 6, Vaught had her initial court appearance before U.S. Magistrate Judge Eileen Willett of the District of Arizona and was released from custody pending trial. Lacey, who also had his initial court appearance on April 6 before Judge Willett, subsequently had a detention hearing on April 11 before U.S. Magistrate Judge Bridget S. Bade of the District of Arizona and was ordered to temporarily remain in custody until his continued hearing on Friday, April 13. On April 9, Larkin, Spear, and Brunst had their initial court appearances before Judge Bade. Larkin has since been ordered to temporarily remain in custody until a continued detention hearing on Monday, April 16, and Spear and Brunst were released from custody pending trial. Also on April 9, Hyer had his initial court appearance before U.S. Magistrate Judge David L. Horan in the Northern District of Texas and was released from custody pending trial, and Padilla had his initial court appearance before U.S. Magistrate Judge Christine A. Nowak in the Eastern District of Texas and was released from custody pending trial.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize Backpage was led by the Justice Department’s Child Exploitation and Obscenity Section and the U.S. Attorney’s Office for the District of Arizona, with significant support from the U.S. Attorney’s Office for the Central District of California, the office of the California Attorney General, and the office of the Texas Attorney General. The law enforcement agencies conducting the investigation and seizure include the FBI Phoenix Field Office, the U.S. Postal Inspection Service and IRS-CI. The criminal case is being prosecuted by Assistant U.S. Attorneys Kevin Rapp, Dominic Lanza, and Margaret Perlmeter of the District of Arizona and Senior Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section. Assistant U.S. Attorney John Kucera of the Central District of California is handling the asset forfeiture aspects of the case
Ashland County man indicted for sexually exploiting five childrenRead the Press Release
An Ashland County man was indicted after having at least five children send him nude images of themselves, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Michael D. Nixon, 55, of Perrysville, was indicted on five counts of sexual exploitation of children, one count of receipt and distribution of child pornography and one count of possession of child pornography.
Nixon coereced five minors to engage in sexually explicit conduct from June 1, 2017 through Nov. 29, 2017, according to the indictment
The parents of a 10-year-old girl contacted authorities after someone, later determined to be Nixon, contacted the girl and, posing as a young girl himself, requested her to send nude images. Nixon, posing as a young girl, sent images of a girl in her underwear and then images of nude girl, and asked the victim to reciprocate. The victim girl sent a nude photo, according to court documents.
When Nixon asked for more nude images, the victim replied she did feel comfortable and attempted to discontinue contact. Nixon said he’d be willing to discontinue contact only if the victim provided names, phone numbers and school information of her friends. Nixon then said if the victim did not comply, he would send the images to the victim’s school, according to court documents.
Terrified, the victim reported the incident to her mother, according to court documents.
Nixon also knowingly received and distributed numerous computer files that contained child pornography. Nixon also possessed two Samsung Gusto 3 cellular phones that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case was investigated by TFO Bryan Allen, Federal Bureau of Investigation’s Task Force, and Edward Moschella, FBI, District of Columbia. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Arrests Made as Multi State Drug Trafficking Organization Is DismantledRead the Press Release
FRESNO, Calif. — Six members of a drug trafficking organization were arrested this week as part of a multi-agency investigation, which included the seizure of multiple pounds of methamphetamine, heroin and cocaine in the Central Valley, Alaska, and Tacoma, Washington, U.S. Attorney McGregor W. Scott announced.
The arrests and seizures relate to an indictment returned by a federal grand jury on April 5, 2018, charging members of a multistate drug trafficking organization with conspiracy to distribute and possess with intent to distribute controlled substances, including methamphetamine, cocaine, and heroin. The seizures this week included 45 pounds of methamphetamine, four pounds of heroin and three pounds of cocaine.
Indicted members of the drug trafficking organization include Alecia Trapps, 54, of Manteca; Jimmy Brantley, 40, of Manteca; Carmen Conejo, 51, of Long Beach; Ernest Westley, 60, of Modesto; Sheena Taylor, 41, of Modesto; and Joseph Vasquez, Jr., 32, of Modesto.
According to court documents, between January 1, 2015, and April 11, 2018, the defendants conspired to distribute controlled substances such as methamphetamine, heroin, or cocaine in Modesto and in Juneau, Alaska.
This case is the product of a year-long investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Central Valley Gang Impact Task Force, Modesto Police Department, Manteca Police Department, California Highway Patrol, Stanislaus County District Attorney’s Office, Whatcom County Sheriff’s Department (Washington), Pierce County Sheriff’s Department (Washington), and Juneau Police Department (Alaska). Assistant U.S. Attorneys Melanie L. Alsworth and Laurel J. Montoya are prosecuting the case.
If convicted, the defendants face a mandatory minimum sentence of 10 years and up to life in prison, and a $10 million 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Akron men indicted for using firearms while trafficking methamphetamineRead the Press Release
Two Akron men were indicted for using firearms as part of a conspiracy to sell large amounts of methamphetamine.
Jonathan S. Wilt, 24, and Johnny R. Rollyson, 27, were both indicted on charges of conspiracy to possess with intent to distribute at least 500 grams of methamphetamine and attempted possession with intent to distribute a controlled substance. Both were also indicted on charges of possession of a firearm in relation to drug trafficking and being felons in possession of firearms.
Wilt on March 12 had a Kahr Arms 9mm pistol, despite convictions for felonious assault and attempted felonious assault that made it illegal for him to have a firearm. Rollyson on the same date had a Smith & Wesson .38 revolver, despite convictions for burglary that made it illegal for him to have a firearm, according to the indictment.
They had those firearms in relation to drug trafficking. Both men attempted to possess with intent to distribute 500 grams or more of methamphetamine on March 12, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case was investigated by the U.S. Postal Inspection Service and the Akron Police Department. This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
11 April 2018
Woman Who Schemed to Collect Insurance Money by Burning Down a House in Martelle Sentenced to 12 Years in Federal PrisonRead the Press Release
A woman who participated in a scheme to submit a fraudulent insurance claim when her boyfriend intentionally set fire to his vacant house was sentenced today to 12 years in federal prison.
Beth Galloway, age 42, from Camanche, Iowa, and formerly of Olin, received the prison term after a March 16, 2017, jury verdict finding her guilty of one count of mail fraud, one count of using fire to commit mail fraud, and money laundering.
The evidence at trial showed that, between Spring 2013 and Spring 2014, Galloway and her boyfriend, James Plower, made up and participated in a scheme to defraud Plower’s insurance company. The evidence showed that Galloway twice drove a minor to Plower’s vacant home in Martelle, Iowa, to attempt to set fire to the home, but that both attempts failed. Further evidence showed that Plower then deliberately set fire to his vacant home and submitted an insurance claim in which he falsely claimed the fire was accidental. As a result of the fraudulent insurance claim, the insurance company mailed Plower a check for $66,497.46. Evidence also showed that Galloway and Plower agreed to launder the proceeds from the fraudulent insurance claim in February and March of 2014 when the two agreed to take $10,000 of the proceeds from Plower’s bank account after learning that law enforcement was investigating the cause of the fire,. They then gave the $10,000 to a friend to hold for them to prevent law enforcement from seizing the money.
Plower had previously pled guilty to charges of mail fraud and use of fire to commit mail fraud. He also had previously been sentenced to 13 years’ in federal prison.
Galloway was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Galloway was sentenced to 144 months’ imprisonment. She was ordered to make $152,874.58 in restitution to the insurance company. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system
The case was prosecuted by Assistant United States Attorneys Ravi Narayan and Tony Morfitt and was investigated by the Iowa Division of Criminal Investigation, the United States Postal Inspection Service, the Iowa State Fire Marshal Division, and the Jones County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-68.
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Violent felon sentenced to 16 years in federal prison for cocaine traffickingRead the Press Release
ATLANTA – Darrick Lawrence, a previously convicted felon, has been sentenced to 16 years and six months in prison, with one month credit for time served, for trafficking cocaine. Lawrence also faces charges in Virginia for conspiracy to commit first-degree murder. A search of Lawrence’s Decatur, Georgia home resulted in the recovery of cocaine, two high-powered rifles, and hundreds of rounds of ammunition.
“Lawrence created a sophisticated drug operation and funneled drug proceeds through 18 different bank accounts using a shell company,” said U.S. Attorney Byung J. “BJay” Pak. “This lengthy prison sentence removes a violent felon from our streets and places him in federal prison while he awaits prosecution for a murder in Virginia.”
“The criminal history of Lawrence shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Acting Assistant Special Agent in Charge Robert Davis. “As an agency and a unified law enforcement community, we will not tolerate armed violent felons continually terrorizing and reducing the quality of life in our neighborhoods.”
“Drug traffickers often protect the poisonous fruits of their labor by engaging in acts of violence,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The cache of weapons seized from this convicted felon validated his propensity towards violence. Because of the pinnacle of cooperation between DEA, its federal, state and local law enforcement counterparts and the U.S. Attorney’s Office, this defendant is deserving of the sentence handed down today.”
According to U.S. Attorney Pak, the charges and other information presented in court: On February 7, 2017, DeKalb County, Georgia, police officers and SWAT members executed a warrant to search Lawrence’s residence for evidence regarding a murder committed in Virginia. During the search, investigators recovered a stolen Anderson Manufacturing, model AM-15, .300 Blackout caliber rifle, an American Tactical, model Omni, 5.56mm caliber pistol, hundreds of rounds of ammunition, and cocaine. At the time of the search, Lawrence was an eleven-time convicted felon, with prior convictions for robbery, assault, battery, and multiple violations of possessing with intent to distribute controlled substances. Investigators determined that Lawrence trafficked kilos of cocaine between Atlanta and Virginia. He also created a shell company through which he funneled nearly a million dollars in drug proceeds using 18 banks accounts. Lawrence attempted to continue his drug trafficking operation while in federal and state prisons by directing members of his drug operation to communicate with him with prepaid “flip phones.”
Darrick Lawrence, 39, of Decatur, Georgia, was sentenced 16 years and six months in prison, with one month credit for time served, to be followed by three years of supervised release by U.S. District Judge Steve C. Jones. He pleaded guilty to the offense of possession with intent to distribute cocaine on December 1, 2017. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the DeKalb Police Department, and the Henrico County Virginia Police Department.
Assistant U.S. Attorneys Dash A. Cooper and Kim S. Dammers prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Utah Resident Sentenced for Second Degree Murder on Ute Mountain Ute ReservationRead the Press Release
DURANGO -- Timothy Merritt, age 57, of Utah was sentenced by U.S. District Court Judge Robert Blackburn on April 9, 2018, to 24 years in prison for the crimes of Murder in the Second Degree in Indian Country and Assault Resulting in Serious Bodily Injury in Indian Country. Merritt was convicted after a jury trial in Durango on September 12, 2017. His sentence also includes 5 years of supervised release, with the special conditions of participating in a cognitive behavioral treatment program and a substance abuse program.
According to evidence presented at trial, Merritt caused a fatal car crash on the Ute Mountain Ute Reservation while driving in the wrong lane of traffic with a blood alcohol content between 0.23 and 0.25. The crash caused the death of one man and serious injuries to his wife. Merritt had been arrested for drinking and driving offenses on three occasions prior to the fatal crash. Three months after the fatal crash, Merritt was again arrested driving drunk, narrowly avoiding causing another crash.
“I hope with all my heart that this conviction and sentence brings some relief to the deep suffering Merritt caused his victims and their family,” said United States Attorney Bob Troyer. “Our prosecutors and the BIA and FBI agents worked tirelessly on this case, for that sole purpose.”
“This sentence reflects the ongoing efforts of the BIA and FBI to aggressively investigate violent crime on Native American reservations and seek justice for the victims,” said Calvin Shivers, Special Agent in Charge of the FBI Denver Division.
The Bureau of Indian Affairs and the Federal Bureau of Investigation investigated this case. The United States was represented by Assistant United States Attorneys Julia Martinez, Jeffrey Graves, and former Assistant United States Attorney Dondi Osborne.
The case is captioned United States v. Merritt, Case No. 16-cr-365-REB.
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United States Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland - In observance of National Crime Victims’ Rights Week, April 8-14, 2018, the United States Attorney’s Office for the District of Maryland held the 2nd Annual National Crime Victims’ Rights Week Award Ceremony. United States Attorney for the District of Maryland Robert K. Hur presented Victim Assistance awards to employees and members of local and Federal law enforcement.
Assistant United States Attorneys Ayn B. Ducao, Bryan E. Foreman, and Jefferson M. Gray were awarded the AUSA Victim Assistance Award that recognizes AUSAs who exhibited extraordinary effort in advocating for the rights of victims and demonstrate exceptional commitment to the pursuit of justice.
Asset Forfeiture Paralegal Specialist Naquita C. Ervin received the Support Staff Victim Assistance Award that recognizes a support staff member who goes above and beyond normal duty to assist victims.
Cpl. Joshua P. Mouton of the Howard Country Police Department was awarded the State Law Enforcement Victim Assistance Award that recognizes a member of state or local law enforcement who exhibited professionalism and superior service and sensitivity to victims.
Special Agent Keith A. Custer of the FBI, as well as two other Baltimore based Special Agents of the FBI, were awarded the Federal Law Enforcement Victim Assistance Award that recognizes a Special Agent, TFO, or other federal law enforcement officer who consistently displays superior investigative skills and sensitivity to the rights and needs of victims.
In addition to the presentation of awards, the ceremony included keynote speeches by individuals who have been victims of crime. “The stories we heard today from those who have been victims of crime are a reminder that statistics represent real crimes affecting real people and real families,” said U.S. Attorney Hur. “The United States Attorney’s Office recognizes the courage of these brave individuals, and is here to listen, support and empower them. National Crime Victims’ Rights Week is a time to celebrate progress, raise awareness of victims’ rights and services, and stand with those whose lives have been changed by the criminal acts they have endured.”
The U.S. Attorney’s Office joins its federal, state, and local enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
Each year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf.
"In law enforcement, we are sworn to serve and protect," Attorney General Sessions said. "We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America."
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the-art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the District of Maryland Victim Witness Program at (410) 209-4800.
US Attorney Observes National Crime Victims' WeekRead the Press Release
PROVIDENCE, RI – Each year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by honoring victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorney’s Offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 8-14, with the theme Expand the Circle: Reach All Victims.
"In law enforcement, we are sworn to serve and protect," Attorney General Sessions said. "We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America."
In observance of National Crime Victims’ Rights Week, United States Attorney Stephen G. Dambruch today joined Rhode Island Attorney General Peter F. Kilmartin, other state and local leaders, and victim advocates at Rhode Island’s Victims’ Grove in downtown Providence to commemorate National Crime Victims’ Rights Week.
“Today we gather to honor victims of crime and to recognize the efforts of the people who work hard day in and day out to protect and serve those victims,” said United States Attorney Stephen G. Dambruch at today’s commemoration at Victims’ Grove. “These people, who include law enforcement officers, prosecutors, victim services specialists, employees of non-profit agencies and community volunteers, are tireless in their efforts to expand opportunities for victims to disclose, to connect with services and to receive the support they need and deserve.”
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the Rhode Island U.S. Attorney’s Office’s Victim Witness Program at (401) 709-5000.
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U.S. Attorney’s Office to Commemorate National Crime Victims’ Rights WeekRead the Press Release
BISMARCK – U.S. Attorney Christopher C. Myers announced today that on April 13, 2018, the U.S. Attorney’s Office for the District of North Dakota will host a National Crime Victims’ Rights Week Awards Ceremony to raise awareness about crime victims’ rights and to recognize individuals throughout the state who provide outstanding services to crime victims. The awards ceremony will take place at the William L. Guy Federal Building, Eagle Courtroom, 220 E Rosser Avenue, Bismarck, at 10:30 a.m.
The U. S. Department of Justice’s Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of the National Crime Victims’ Rights Week, which is April 8-14, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme—Expand the Circle: Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
Members of the media will be permitted to bring appropriate still photo, video, and audio equipment to the Eagle Courtroom for purposes of covering this event. The public is also invited to attend.
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U.S. Attorney’s Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
The U.S. Attorney’s Office for the District of Vermont and the Justice Department’s Civil Rights Division hosted a roundtable on Wednesday, April 11, for community organizations, U.S. Attorney Christina Nolan announced.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single mothers, women who are financially unstable, and women who have suffered sexual violence in their past.
This week’s event included state and local government agencies, legal service providers, non-profits, fair housing organizations, and shelters and transitional housing providers. Each organization was invited because they often work with Vermont’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“For landlords, property managers, or others to take advantage of a person’s vulnerability by premising their access to housing on sex or sexual harassment is unconscionable,” U.S. Attorney Nolan said. She noted that “our federal civil rights laws are designed to protect people against terrible abuses, and it is part of the job and mission of this office to make sure those laws are enforced.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The U.S. Attorney’s Office for the District of Vermont is collaborating with the Civil Rights Division to spread the word about options to help victims experiencing sexual harassment. Because victims may not be aware that the conduct they have experienced violates the Fair Housing Act or may not know where to turn, the U.S. Attorney’s Office and Department of Justice hope to collaborate with community organizations in Vermont to raise awareness and help victims report abuse.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. In 2017, the Justice Department recovered more than $1 million in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities. Many instances of sexual harassment in housing continue to go unreported.
The Roundtable was coordinated by Jules Torti of the U.S. Attorney’s Office for the District of Vermont and Lauren Marks of the Housing and Civil Enforcement Section of the Civil Rights Division of DOJ.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among victims and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help victims quickly and easily connect with federal resources. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling (844) 380-6178 or emailing: [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office by filling out the Complaint Form, which can be found at https://www.justice.gov/usao-vt.
Public Service Announcement Transcript
Two Pittsburgh-area Men Charged with Sabotaging Railroad Signal OperationsRead the Press Release
PITTSBURGH - Two Allegheny County residents have been indicted by a federal grand jury in Pittsburgh on charges of damaging railroad signals and equipment, United States Attorney Scott W. Brady announced today.
The two-count indictment, returned on April 3 and unsealed yesterday, named William Curry Brown, 24, of Elizabeth, Pennsylvania, and Brandon Edward Peck, 24, of Glassport, Pennsylvania.
According to the indictment, Brown and Peck damaged and impaired signal cables by severing them and further damaged and impaired bond strand wire connectors that were connected to the rail line. The indictment also alleges that Brown removed and detached railroad antennas and otherwise impaired the operation of a railroad signal system, including a train control system that engaged in interstate commerce. Peck is charged with aiding and abetting Mr. Brown.
For each count, the law provides for a maximum total sentence of 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Soo C. Song is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, CSX Police Department and Amtrak 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.
Two Paterson Police Officers Charged with Conspiring to Violate Civil RightsRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, men were arrested today for allegedly violating the civil rights of two individuals during a motor vehicle stop in Paterson, New Jersey, with one officer also being charged with extortion for personally accepting a firearm in exchange for reducing the charges on an arrestee, U.S. Attorney Craig Carpenito announced.
Jonathan Bustios, 28, and Eudy Ramos, 31, both of Paterson, New Jersey, were arrested by federal agents this morning and charged by complaint with conspiring to deprive individuals of civil rights under color of law. Bustios was also charged with one count of extortion under color of official right. Both defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
The investigation uncovered instances in which Bustios and Ramos, both officers of the Paterson Police Department, allegedly stopped motor vehicles, detained the occupants, and searched those vehicles without any justification. On certain occasions, Bustios and Ramos also took cash and other items without justification before releasing the detained occupants.
For example, on Feb. 20, 2018, while on duty, Bustios pulled over a BMW and stopped behind the vehicle, while Ramos stopped his police car in front of the vehicle. Bustios and Ramos exited their police cars and proceeded to search the front and back of the BMW and the trunk. Bustios and Ramos also detained and searched the two occupants of the BMW and put them into the backseat of Ramos’ police car.
After searching the BMW, Bustios left the scene, drove for ten minutes, then stopped his police car and took out a white plastic bag that was filled with cash. Bustios also took out a firearm. He then called Ramos, after which Ramos released the two detained occupants of the BMW and drove to meet Bustios. Bustios passed a portion of the recovered cash to Ramos through the window of Bustios’ police car.
Later that day, Bustios and Ramos turned in the firearm that they had recovered. In the offense report pertaining to the firearm, they told a false story about having recovered the firearm due to a tip by a concerned citizen. In fact, there was no tip by a concerned citizen. They did not report to the Paterson Police Department that they had stopped and searched the BMW, detained and searched its occupants, and taken cash, all without any warrants.
Bustios was also charged with extortion under color of official right for an incident that allegedly occurred on March 14, 2018. Bustios arrested and detained an individual and placed the individual in the backseat of his police car. Bustios then told the individual that Bustios would not charge the individual with resisting arrest and would allow the individual to keep the cash that the individual had on him, in exchange for the individual helping Bustios acquire a firearm. Specifically, Bustios said, “I ain’t gonna charge you with resisting, and I’m letting you keep your money bro.” Bustios then told the individual, “If you don’t wanna make the deal, you don’t have to make the deal.”
The individual ultimately agreed and directed Bustios to the location of a firearm, which Bustios allegedly recovered and kept without turning it over to the Paterson Police Department. According to Paterson Police Department records, as he had promised, Bustios did not charge the individual with resisting arrest. Bustios also submitted an arrest report in which he failed to mention any details about recovering a firearm.
The conspiracy to violate civil rights count with which Bustios and Ramos are charged carries a maximum penalty of 10 years in prison. The extortion under color of official right count with which Bustios is charged carries a maximum penalty of 20 years in prison.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the ongoing investigation leading to today’s arrest. He also thanked the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, as well as the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Two Milwaukee Residents Indicted for Armed CarjackingsRead the Press Release
United States Attorney Matthew D. Krueger announced today that Brittney Neal (Age: 24) and Cedric L. Glosson (Age: 23) had been indicted for armed carjackings in Milwaukee. Both defendants were charged with one count of motor vehicle robbery and one count of discharging a firearm in furtherance of a crime of violence related to a September 27, 2017, carjacking on N. 29th Street. Ms. Neal also is charged with an October 22, 2017, carjacking on W. Vienna Avenue in which a firearm was brandished.
With respect to September incident, each defendant faces up to 15 years in prison for the carjacking and a minimum mandatory consecutive sentence of 10 years to life in prison on the firearm count. With respect to the October incident, Neal faces up to 15 years in prison on the carjacking count and a minimum mandatory seven years to life in prison for brandishing the firearm. If Neal were convicted of both discharging a firearm during the September carjacking and brandishing a firearm during the October carjacking, she would face a mandatory minimum sentence of 35 years in prison.
Glosson remains a fugitive. If you have any information regarding his whereabouts, please contact the United States Marshals Service Tip Line at 414-297-3707.
In response to the indictment, United States Attorney Krueger stated, “Carjackings must stop. The United States Attorney’s Office, in collaboration with the federal and local law enforcement agencies, is committed to aggressively prosecuting violent crimes within our community.”
This case is being investigated and prosecuted under the Project Safe Neighborhoods (PSN) initiative. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The PSN strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods. This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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Trucking Companies, Owners Indicted in Alleged Scheme to Falsify Safety RecordsRead the Press Release
PROVIDENCE, RI – Two Rhode Island trucking companies and their owners were indicted by a federal grand jury in Providence today in an alleged scheme to falsify federally mandated safety inspection reports and allow trucks in need of repair to haul tons scrap metal on roadways in Rhode Island and Massachusetts.
The grand jury today returned a seven count indictment charging CDE Corporation and Winsor Hill Hauling and Recycling Corporation, located in Johnston, RI, and their owners, Leslie Cucino, 53, of Foster, RI, and Robert Cucino, Jr., 48, of Johnston, RI, each on one count of conspiracy and six counts of false statements.
The indictment is announced by United States Attorney Stephen G. Dambruch and Todd Damiani, Special Agent in Charge of the United States Department of Transportation Office of Inspector General.
According to the indictment, it is alleged that the owners of CDE and Winsor Hauling directed employees, under threat, including termination, to falsify Driver Vehicle Inspection Reports (DVIR), and not report safety defects or deficiencies discovered by or reported to the driver which would affect the safe operation of the vehicle or in a mechanical breakdown.
A significant amount of the companies’ business includes hauling fully loaded truckloads of scrap metal to the Port of Providence and to locations in Boston.
United States Department of Transportation (USDOT) regulations, enforced by the Federal Motor Carrier Safety Administration (FMCSA), a division of the USDOT, require that motor carriers require their drivers to prepare a daily DVIR on each commercial motor vehicle operated. The report must be in writing and prepared at the completion of each day's work, and must include at least the following parts and accessories: service brakes, parking (hand) brake, steering mechanism, lighting devices and reflectors, tires, horn, windshield wipers, rear vision mirrors, coupling devices, wheels and rims, and emergency equipment.
The reports, which must be preserved and made available upon demand for review, are the primary means by which FMCSA Inspectors and state law enforcement authorities enforce federal motor carrier safety regulations relating to the safety of the commercial motor vehicles.
It is alleged in the indictment that on numerous occasions, beginning on or about March 9, 2009, through the present, the owners of the trucking companies directed and encouraged employee drivers, under the threat of up to termination, to falsely certify that the commercial motor vehicles they were operating had “No Defects” on their DVIR when in fact the driver knew that the vehicles had serious safety defects that were required to be reported, and, in some cases, had received citations of serious violations from the Massachusetts or Rhode Island State Police on the same day.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by USDOT Office of Inspector General and FMCSA, with the assistance of Massachusetts State Police and Rhode Island State Police.
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Three Illegal Aliens Plead Guilty to Unlawful Re-entry after RemovalRead the Press Release
Gulfport, Miss. – Domingo Lopez-Lopez, 25, an illegal alien from Mexico, Victor Manuel Polanco-Aguilar, 23, and Carlos Vazquez-Hernandez, 21, both illegal aliens from Guatemala, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr., to unlawful re-entry by an alien after deportation or removal, announced U.S. Attorney Mike Hurst, Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
On February 6, 2018, a U.S. Border Patrol Agent conducted a traffic stop on a Toyota Highlander displaying a Georgia license plate on Interstate 10 in Harrison County. The agent encountered the driver, a citizen of Cuba and a Legal Permanent Resident of the United States.
After interviewing the passengers in the vehicle, all admitted to being citizens of other countries illegally present in the United States. All were arrested and transported to the Gulfport Border Patrol Station. Agents determined that the passengers were being transported from Houston, Texas, to Florida and Georgia, and that four passengers were aliens who had been previously deported or removed and who had unlawfully returned to the United States.
Lopez-Lopez, Polanco-Aguilar, and Vazquez-Hernandez will be sentenced by Judge Guirola on July 5, 2018. They each face a maximum penalty of two years in federal prison a $250,000 fine.
The case was investigated by Homeland Security Investigations and the U.S. Border Patrol. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Texas man sentenced to 16 months for possessing an improvised weapon while at the Pollock prisonRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Texas man was sentenced last week to 16 months in prison for possessing an improvised weapon while a prisoner in Pollock, Louisiana.
Serjio Rolando Siller Jr., 33, of Roma, Texas, was sentenced Friday by U.S. District Judge Dee D. Drell, on one count of possessing contraband in prison. In addition to imprisonment, Siller was also sentenced to one year of supervised release. According to the January 11, 2018 guilty plea, Siller was found in possession of an improvised weapon commonly known as a “shank,” while a prisoner at the Federal Correctional Institution in Pollock. The weapon was a small metal rod sharpened to a point.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips prosecuted the case.
Texas Man Pleads Guilty in 21-Defendant Drug Distribution ConspiracyRead the Press Release
PITTSBURGH, PA. - A resident of Texas pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Cameron Ranson, 43, pleaded guilty to one count of conspiring with 20 other individuals, between March and June 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Ranson, traveled from Texas to Clairton, Pennsylvania, for the purpose of distributing quantities of heroin to his codefendant, Skyler Carter, and others. He accepted responsibility for the distribution of between 20 and 40 grams of heroin. He is the twelfth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for September 18, 2018, at 10:30 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Ranson remains incarcerated pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Tennessee Doctors Plead Guilty in $65 Million TRICARE FraudRead the Press Release
Assistant U. S. Attorneys Benjamin J. Katz and Mark W. Pletcher (619) 546-9604 and (619) 546-9714
NEWS RELEASE SUMMARY – April 11, 2018
SAN DIEGO – Two doctors, Carl Lindblad and Susan Vergot, pleaded guilty in federal court today, admitting that they participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members – out of more than $65 million by prescribing thousands of exorbitantly expensive compounded medications to patients that they never saw or examined.
Drs. Lindblad and Vergot entered their guilty pleas before U.S. Magistrate Judge Mitchell D. Dembin. Both pleaded guilty to conspiracy to commit health care fraud. Their sentencings are scheduled for June 29, 2018 before U.S. District Court Judge Janis L. Sammartino.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
According to the guilty pleas, a team of individuals worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE. This information was sent to Choice MD, the Tennessee medical clinic that employed Drs. Lindblad and Vergot. Drs. Lindblad and Vergot then wrote prescriptions for the TRICARE beneficiaries, despite never examining the patients in person. Once signed by the doctors, these prescriptions were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices.
Josh Morgan, a former Marine from San Diego, pleaded guilty last month to Conspiracy to Commit Health Care Fraud for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.
Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – Drs. Lindblad and Vergot authorized 4,442 total prescriptions. Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions.
Lindblad and Vergot represent the fifth and sixth defendants charged in relation to this fraud scheme. In addition to Morgan, Jimmy and Ashley Collins, the owners of Choice MD, and CFK, Inc., the owner of a co-conspirator pharmacy, were indicted in March 2018 on charges of Conspiracy to Commit Health Care Fraud and Illegal Payments of Remunerations. That case remains pending.
DEFENDANTS Case Number 18-cr-0432-JLS
Carl Lindblad Age: 53 Cleveland, TN
Susan Vergot Age: 31 Cleveland, TN
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349
Maximum penalty: 10 years’ imprisonment and fine of higher of $250,000 or double loss amount
AGENCY
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Statement from United States Attorney Thomas T. CullenRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen has released the following statement:
“The FBI, the National Park Service, and the U.S. Attorney’s Office for the Western District of Virginia are investigating today’s fatal shooting on the Blue Ridge Parkway near mile marker 116. Because the Commonwealth of Virginia has concurrent jurisdiction over the Parkway, this federal investigative team is working in close consultation with the Roanoke County Police Department and the Roanoke County Commonwealth’s Attorney. The investigative team will collect all available evidence and will ensure that the investigation is fair, thorough, and impartial. As this is an ongoing investigation we are not able to comment further at this time.”
St. Croix Man Sentenced to Prison for His Involvement in a Conspiracy to Possess Cocaine with Intent to Distribute at the Rohlsen AirportRead the Press Release
St. Croix, USVI – Dimitrous Jefferson, 29, of St. Croix, was sentenced on April 9, 2018 for conspiracy to possess cocaine with intent to distribute, United States Attorney Gretchen C.F. Shappert announced.
Chief District Court Judge Wilma A. Lewis sentenced Jefferson to twenty-four months in prison. Judge Lewis also sentenced Jefferson to three years of supervised release, a $1,000 fine and ordered him to pay a $100 special assessment.
On February 27, 2017, Jefferson pleaded guilty to conspiracy to possess a controlled substance with intent to distribute. According to documents filed in court, on May 4, 2016, the defendant and another individual who were employed by Worldwide Flight Services at the Rohlsen Airport, entered the TSA screening area before their scheduled shifts. The defendant attempted to pass through the screening area and triggered the metal detector. A search of his person revealed a brick-like package wrapped with gray duct tape strapped to one of his legs. The other individual also had a similar package strapped to one of his legs. The packages field-tested positive for cocaine.
The case was investigated by Immigration and Customs Enforcement, Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Springfield Man Pleads Guilty to Distributing Meth, Faces 30 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Kenneth R. Friend, 47, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in the conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede, and Webster Counties from June 1, 2013, through Nov. 29, 2014.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The investigation resulted in the indictment of 29 co-defendants.
During the conspiracy, Friend was responsible for the distribution of more than 45 kilograms of methamphetamine. He obtained large amounts of methamphetamine from various sources.
For example, Friend paid one source $20,000 in early November 2014 for two pounds of methamphetamine. Friend also intended to purchase a large amount of methamphetamine from one of his sources on Nov. 27, 2014. As part of the investigation, law enforcement officers arrested Friend, his then-girlfriend and one of his suppliers. During the execution of a federal search warrant at the supplier’s residence in Springfield, agents found approximately $20,000 and approximately five and a half pounds of methamphetamine. Friend admitted that he intended to purchase at least two of the five and a half pounds seized from this source of supply. Agents also seized $34,310 from Friend, which he had intended to use to purchase the two pounds of methamphetamine.
Friend is among 28 co-defendants who have pleaded guilty in this case; 18 of those defendants have been sentenced.
Under the terms of today’s plea agreement, Friend will be sentenced to 30 years in federal prison without parole. Friend must forfeit to the government $34,310 that was seized by law enforcement and a 1992 Harley Davidson motorcycle, which Friend used to distribute methamphetamine, and which he purchased with proceeds from the sale of methamphetamine. 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. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
South Carolina Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A South Carolina man will appear in federal court today on charges of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Rashad Russell, 28, was indicted by a federal grand jury on April 6, 2018, on one count of distribution of child pornography. He is scheduled to make his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
Between December 2017 and March 2018, Russell allegedly contacted a law enforcement officer working in an undercover capacity through Facebook messenger stating that he was willing to travel from South Carolina to New Jersey to meet the undercover agent’s purported 8-year-old child for the purpose of engaging in sexual acts with the child. On Jan. 8, 2018, Russell sent two images and one video to the undercover officer, including images of prepubescent children being sexually abused.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation leading to the indictment.
The government is represented by Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
Seven Individuals Indicted in April 2018 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the April 2018 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
BRIAN FREDRIC JOICE, age 39, of Muskogee, Oklahoma
Felon In Possession Of Firearm & AmmunitionThe Indictment alleges that on or about March 7, 2018, within the Eastern District of Oklahoma, the Defendant, BRIAN FREDRIC JOICE, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, to-wit: One (1) Smith & Wesson, .38 caliber revolver, bearing serial number K281231; and Five (5) rounds of .38 caliber ammunition, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Muskogee County Sheriff’s Office and the Federal Bureau of Investigation.
Assistant United States Attorney Kristin Harrington
ROSE MARIE MYERS, age 40, of Fort Gibson, Oklahoma
JEREMY MOORE, a/k/a 'HOSS', age 40, of Fort Gibson, Oklahoma
Drug Conspiracy
Distribution Of Methamphetamine (Two Counts Each)
Possession With Intent To Distribute Methamphetamine (Two Counts Each)
Possession Of A Firearm In Furtherance Of A Drug Trafficking Crime (Myers Only, Two Counts)The Indictment alleges that beginning in or about June 2016, and continuing until the date of this indictment, within the Eastern District of Oklahoma and elsewhere, the defendants, ROSE MARIE MYERS and JEREMY MOORE, a/k/a Hoss, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846 as follows: to possess with intent to distribute and to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The Indictment further alleges that on or about May 10, 2017, within the Eastern District of Oklahoma, the defendants, ROSE MARIE MYERS and JEREMY MOORE, a/k/a Hoss, did knowingly and intentionally distribute 5 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2, punishable by not less than 5 years imprisonment, a fine up to $5,000,000.00 or both.
The Indictment further alleges that on or about May 15, 2017, within the Eastern District of Oklahoma, the defendants, ROSE MARIE MYERS and JEREMY MOORE, a/k/a Hoss, did knowingly and intentionally distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The Indictment further alleges that on or about May 25, 2017, in a vehicle within the Eastern District of Oklahoma, the defendants, ROSE MARIE MYERS and JEREMY MOORE, a/k/a Hoss, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The Indictment further alleges that on or about May 25, 2017, in a residence within the Eastern District of Oklahoma, the defendants, ROSE MARIE MYERS and JEREMY MOORE, a/k/a Hoss, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The Indictment further alleges that on or about the May 25, 2017, in the Eastern District of Oklahoma the defendant, ROSE MARIE MYERS, did knowingly possess a firearm, that is, a black RG .38 revolver bearing the serial number Q058450, in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, Possession with Intent to Distribute Methamphetamine as alleged in Count 5, in violation of Title 18, United States Code, Section 924(c)(1)(A), in addition to the punishment in count 5, punishable by not less than 5 years imprisonment, a fine up to $10,000,000.00 or both.
The Indictment further alleges that on or about the May 25, 2017, in the Eastern District of Oklahoma the defendant, ROSE MARIE MYERS, did knowingly possess the following firearms, to-wit: One (1) Burgo .22 caliber revolver, bearing serial number 165575; One (1) Heritage .22 caliber revolver, bearing serial number P02239; One (1) Highpoint .40 caliber handgun, bearing serial number 7249617; One (1) Highpoint 9mm rifle, bearing serial number F96048; One (1) GWAGS Armory rifle, CAV-15, bearing serial number 13001775; One (1) S&W rifle, M&P-15, bearing serial number SP07917; One (1) Bushmaster AR-15 rifle, bearing serial number BK1810602; One (1) Mossberg 702 .22 rifle, bearing serial number L113064506; One (1) Stevens model 320 12-gauge shotgun, bearing serial number 150300J; One (1) Springfield 745c 12-gauge shotgun, serial number unknown; in furtherance of a drug trafficking crime for which she may be prosecuted in a court of the United States, that is, distribution of methamphetamine, in violation of Title 18, United States Code, Section 924(c)(1)(A), in addition to the punishment in subsequent counts, punishable by not less than 5 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Drug Enforcement Administration.
Assistant United States Attorney Kristin Harrington
NOWLIN LEE WAUGH JR., age 35, of Henryetta, Oklahoma
Possession With Intent To Distribute MethamphetamineThe Indictment alleges that on or about March 23, 2018, within the Eastern District of Oklahoma, defendant, NOWLIN LEE WAUGH JR., did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable quantity of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years, and not more than 40 years imprisonment, a fine up to $5,000,000.00 or both.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Edward Snow
ALYSSIA MARIE JAE CAREY, age 26, of Tahlequah, Oklahoma
Uttering A Counterfeit Obligation Of The United States (Two Counts)
Passing A Counterfeit Obligation Of The United StatesThe Indictment alleges that on or about November 14, 2017, within the Eastern District of Oklahoma, the Defendant, ALYSSIA MARIE JAE CAREY, with intent to defraud, did pass, utter and publish to Clear Creek 66, 1100 E. Allen Road, Tahlequah, Oklahoma, falsely made, forged and counterfeited obligations of the United States, that is: One (1) twenty-dollar Federal Reserve Note, Series 2013, Serial No. MF57071698C, Quadrant # 2, Face Plate 66, Back Plate 46, Federal Reserve Bank B2, and One (1) twenty-dollar Federal Reserve Note, Series 2013, Serial No. MG04098161, Quadrant # 2, Face Plate 1, Back Plate 3, Federal Reserve Bank G7, which she then knew to be falsely made, forged and counterfeited, in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about November 24, 2017, within the Eastern District of Oklahoma, the Defendant, ALYSSIA MARIE JAE CAREY, with intent to defraud, did pass, utter and publish to Hit-N-Run, 1200 S. Muskogee Ave., Tahlequah, Oklahoma, a falsely made, forged and counterfeited obligation of the United States, that is: One (1) twenty-dollar Federal Reserve Note, Series: 2009, Serial No. JB14517500F, Quadrant # 2, Face Plate 218, Back Plate 156, Federal Reserve Bank B2, which she then knew to be falsely made, forged and counterfeited, in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about November 25, 2017, within the Eastern District of Oklahoma, the Defendant, ALYSSIA MARIE JAE CAREY, with intent to defraud, did pass, utter, publish and sell to Dollar General, 18497 W. Woodard Road, Tahlequah, Oklahoma, falsely made, forged and counterfeited obligations of the United States, that is: Nine (9) five-dollar Federal Reserve Notes, Series 2006, Serial No. IB70330255H, Quadrant # 4, Face Plate 8, Back Plate 5, Federal Reserve Bank J9, which she then knew to be falsely made, forged and counterfeited, in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Tahlequah Police Department and the United States Secret Service.
Assistant United States Attorney John David Luton
NICKEY LYNN ANDERSON, age 35, of McCurtain County, Oklahoma
Felon In Possession Of Firearm And AmmunitionThe Indictment alleges that on or about August 5, 2017, within the Eastern District of Oklahoma, the defendant, NICKEY LYNN ANDERSON, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm and ammunition, to-wit: One (1) Jimenez, Model JA-25, .25 automatic caliber pistol, serial number 059829; and Six (6) rounds G.F.L. (Giuilio Fiocchi, Lecco) .25 automatic caliber ammunition, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years, or not less than 15 years imprisonment if the court decides ANDERSON to be an Armed Career Criminal, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Idabel Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney John David Luton.
JOSEPH JAY JOHNSON, age 40, of Indianapolis, Indiana
Felon In Possession Of Firearm And Ammunition
Witness TamperingThe Indictment alleges that on or about January 30, 2018, within the Eastern District of Oklahoma, the defendant, JOSEPH JAY JOHNSON, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm and ammunition, to-wit: One (1) Kel-Tec CNC Inc., Model P11, 9mm Luger caliber pistol, s/n: AK783; and Seven (7) rounds of Winchester brand 9mm Luger caliber FMJ ammunition, which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e), punishable by not more than 10 years, or not less than 15 years imprisonment if the court decides JOHNSON to be an Armed Career Criminal, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about February 1, 2018, within the Eastern District of Oklahoma, the defendant, JOSEPH JAY JOHNSON, did knowingly intimidate, threaten and corruptly persuade, and knowingly attempt to intimidate, threaten and corruptly persuade J.P. by threatening bodily harm regarding a statement to law enforcement with the intent to influence, delay and prevent the testimony of J.P. in an official proceeding, in violation of Title 18, United States Code, Section 1512(b)(1), punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney John David Luton
Salem County, New Jersey, Man Indicted for Illegally Selling and Possessing Firearms in South JerseyRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man was indicted by a federal grand jury today for illegally selling firearms without a license and unlawfully possessing firearms after having been previously convicted of a felony, U.S. Attorney Craig Carpenito announced.
Corey Moore, 32, of Salem, New Jersey, was charged by indictment with 12 counts of dealing in firearms without a federal firearms license and 12 counts of possession of firearms by a convicted felon.
According to documents filed in this case and statements made in court:
From July 2016 through December 2016, Moore sold 15 firearms to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives in 12 separate transactions. Moore conducted each sale in a similar manner, texting the informant photographs of various firearms that Moore had for sale and negotiating a price. He made each of the sales at a convenience store in Gloucester County, and sold all but one of the firearms with ammunition.
The counts of unlawfully dealing in firearms without a license each carry a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of firearms by a convicted felon each carry a maximum penalty of 10 years in prison and a maximum fine of $250,000.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge John B. Devito, Newark Field Division; Logan Township Police Department, under the direction of Chief Robert T. Leash, and the Salem County Prosecutor’s Office, under the direction of John T. Lenahan, with the investigation leading to today’s indictment.The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney's Office in Camden.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender, Camden
Rochester Man Sentenced in Firebombing CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Taj R. Williams, 33, of Rochester, NY, who was convicted after a jury trial of arson and unlawful possession of Molotov cocktails, was sentenced to 104 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Douglas E. Gregory, who handled the prosecution of the case, stated that on January 18, 2015, Williams used a tire iron to shatter the front glass door of the Chili Express Mini Mart located at 989 Chili Avenue in Rochester. The defendant then removed three Molotov cocktails from a bag, each of which he lit and threw inside the store. All of the devices exploded, causing extensive fire damage to the interior structure and its merchandise.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Rochester Fire Department, under the direction of Chief John Schreiber; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Pittsburgh Felon Sentenced to Prison for Second Drug Trafficking Offense and Illegally Possessing Loaded PistolRead the Press Release
PITTSBURGH, PA – Darwin Good was sentenced to 78 months in federal prison for heroin trafficking and for possessing a firearm in furtherance of heroin trafficking in July 2016, United States Attorney Scott W. Brady announced today.
Good, age 31, of Pittsburgh, was sentenced by Chief United States District Court Judge Joy Flowers Conti. Judge Conti also sentenced Good to 18 months in prison for violating the terms of his federal supervised release from a prior federal conviction for heroin trafficking. In addition, Judge Conti imposed six years of supervised release for Good to serve when he is released from prison.
Good was on federal supervised release as of July 2016 following a prior conviction and 87-month prison sentence for conspiring to distribute at least 100 grams of heroin. Good previously violated his supervised release terms and received a 16-month prison sentence for recklessly fleeing at high speed from pursuing police cars and striking several other cars while doing so.
On July 26, 2016, detectives with the Pittsburgh Bureau of Police conducted a traffic stop on Good and his car. As the detectives approached the car, Good reached toward the glove box of the car. A young child was sitting in front of the glove box. A subsequent search of the glove box, that was conducted after Good attempted to flee from the car on foot, resulted in the discovery of stamp bags of heroin that Good intended to distribute, as well as Good’s .40 caliber Glock pistol that was loaded with 16 rounds including one in the chamber. The heroin and the loaded pistol were within arm’s reach of the young child.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions and sentences in this case. This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute violent crimes.
Phoenix Man Sentenced to More Than 15 Years in Prison for Meth Trafficking and Money LaunderingRead the Press Release
A man who mailed at least 45 pounds of methamphetamine from Phoenix, Arizona, to Dubuque, Iowa, was sentenced today to more than 15 years in federal prison.
Anthony Robert McCarron, age 38, originally from Dubuque, received the prison term after an October 30, 2017, guilty plea to conspiracy to distribute methamphetamine near a school and money laundering.
Evidence presented in court established that McCarron was living in Phoenix when he started shipping packages of “ice” methamphetamine to codefendant Derek Richard Rath in Dubuque. McCarron mailed at least 45 pounds of methamphetamine into Iowa from July 2016 to July 2017. Rath paid for the methamphetamine by shipping packages of cash to McCarron. McCarron and Rath used aliases when shipping the drugs and money.
McCarron was sentenced in Cedar Rapids by Chief United States District Court Chief Judge Leonard T. Strand. McCarron was sentenced to 190 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. McCarron is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-1042-LTS.
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Pettus Man Gets More Than 30 Years for Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 55-year-old resident of Pettus has been ordered to federal prison following his admission that he attempted to meet two underage boys for the purpose of sex, announced U.S. Attorney Ryan K. Patrick. Darrell Freeze pleaded guilty Oct. 30, 2017, to one count of online solicitation of a minor.
At a hearing late yesterday, Senior U.S. District Judge Janis Graham Jack sentenced Freeze to 380 months in prison. Additional information was also presented, including testimony from a federal agent that an individual in Arizona reported Freeze had sexually assaulted him when he was a minor. Freeze will also serve 25 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. In handing down the sentence, Judge Jack noted freeze had not shown any remorse for his victims.
Freeze was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Freeze admitted to authorities he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of condoms and candy he brought for the children.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation as part of Operation Hidden Predator.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pennsylvania Nurse Anesthetist Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in Pittsburgh, Pennsylvania, returned an indictment yesterday charging a Pittsburgh-area certified registered nurse anesthetist with five counts of tax evasion and four counts of failure to file federal income tax returns and pay federal income tax, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to the indictment, Loren Pulliam earned over $500,000 in income between 2002 and 2005, and over $1.2 million in additional income between 2008 and 2016, working as a nurse anesthetist at medical facilities in the Pittsburgh area. Pulliam allegedly evaded her tax obligations for the years 2002 through 2005 and 2011 through 2014 by establishing a nominee entity and directing her employers to pay compensation to that entity and then using a bank account opened in the nominee’s name to pay personal expenses.
The indictment further alleges that Pulliam failed to timely file federal income tax returns and pay the taxes due for the years 2011 through 2014, despite having an obligation to do so.
If convicted, Pulliam faces a statutory maximum sentence of five years in prison for each count of tax evasion and one year in prison for each failure to file count. Pulliam also faces a period of supervised release, restitution and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady thanked agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Brittney N. Campbell and Assistant U.S. Attorney Adam N. Hallowell, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, Sentenced to Prison for Wire Fraud, Securities Fraud, and Money LaunderingRead the Press Release
Fraudulent Investment scam resulted in loss exceeding $1,000,000 for eleven partners
BOWLING GREEN, Ky. – The owner of U.S. Energy Partners, Inc. of Bowling Green, Kentucky, was sentenced in United States District Court Monday, by District Judge Greg N. Stivers, to 50 months in prison following a jury conviction for wire fraud, securities fraud, and money laundering as part of a scheme that defrauded investors of $1,175,000 announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“This office will aggressively seek restitution for the victims of Clay Shelton’s scheme,” stated United States Attorney Russell M. Coleman. “The 50 month sentence should serve to warn others who seek to profit off of innocent investors – you will be caught and you will go to federal prison.”
The jury deliberated less than two hours before convicting Clay Shelton, 48, of Bowling Green, on January 11, 2018, on all submitted counts, for devising a scheme that fraudulently obtained money from eleven investors. Shelton has remained in federal custody since his conviction.
According to testimony presented during the four day trial, between March 2011 and September 2012, Shelton created Monterey Pipeline Partners, LLC, purportedly to purchase the Monterey Pipeline in Tennessee. Shelton also operated Escrow 2011 LP, an investment partnership he created to fund an escrow account to purchase and operate the Monterey (gas) Pipeline. Further, Shelton operated Brakaw Energy Management LLC, which was created by Shelton to manage and operate the Monterey Pipeline once he completed the purchase.
From March 2011 through September 2012, Shelton solicited in excess of $1,000,000 from eleven investors for the purchase of the Monterey Pipeline. He fraudulently represented to the investors that their funds would be held in escrow as a down payment until he was able to complete financing to purchase the Monterey Pipeline (about 60 days). Once the loan closed, investors would receive either a 25 percent return on their investment or Monterey Pipeline would buy their interest in any Tennessee well program they previously purchased through U.S. Energy Partners. Investors were, therefore, assured they would receive their investment back in at least 60 days and that their investment would be held in escrow.
Shelton misappropriated $1,000,000 of investor funds, which were wired into Escrow 2011, by investing the majority in collateralized mortgage obligations. Additional funds from investors were used to pay operating and business expenses, including his own salary.
This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Nute Bonner, with paralegal assistance from Jane Bauer and Mary Kennedy. This case was investigated by the IRS Criminal Investigation Division and the Kentucky Department of Financial Institutions.
Owner of Newark, New Jersey, Automobile Export Business Sentenced to 18 Months in Prison for Filing False Tax Returns and Structuring CrimesRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 18 months in prison for filing false tax returns and structuring cash payments to avoid reporting requirements, U.S. Attorney Craig Carpenito announced.
Okoro Ifeanyi, 56, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to a two-count information charging him with filing false tax returns with respect to his 2010 through 2013 personal tax returns and with structuring financial transactions in 2007 and 2008 to avoid reporting requirements. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Ifeanyi was the owner and operator of Amiri Mbubu Auto Sales. His primary business was buying used cars in and around New Jersey, often at auto auctions, and exporting the cars to Nigeria.
Ifeanyi admitted to substantially underreporting his income on his 2010, 2011, 2012, and 2013 U.S. individual income tax returns, specifically, failing to report additional taxable income that he earned through his business. According to the information, by failing to report his true income, Ifeanyi avoided paying approximately $461,085 in taxes.
Ifeanyi also admitted to structuring a series of transactions in 2007 and 2008. He made 17 different deposits into his Bank of America account, each less than $10,000, in order to avoid currency reporting requirements.
In addition to the prison term, Judge Chesler sentenced Ifeanyi to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney's Office Economic Crimes Unit in Newark.
Defense counsel: Patrick O’keke Esq., New York
Owner of Jacksonville Tax Return Preparation Firm Convicted of Tax FraudRead the Press Release
Jacksonville, Florida – A federal jury today found Adrian George guilty of conspiring to commit wire fraud and aiding in the preparation and presentation of fraudulent tax returns to the IRS, as well as multiple counts of aiding in the preparation and presentation of fraudulent tax returns. He faces a maximum penalty of 15 years in federal prison. His sentencing hearing has not yet been set.
George was indicted on March 30, 2017.
According to testimony and evidence presented at trial, George owned and operated Professional Tax Service South, LLC, a tax return preparation firm in Jacksonville. He taught his employees various ways to include false information in tax returns to assure that his clients received large tax refunds. Acting at his direction, George’s employees offered to prepare fraudulent or “boosted” returns for clients in exchange for cash payments from the proceeds of the illegitimate tax refunds.
After being in business for less than two years, George and his employees had prepared and filed 748 tax returns for clients – all of which requested refunds. Typically only 62% percent of tax returns filed nationwide request refunds. The tax returns prepared and filed by George and his employees requested a total of approximately $3.2 million in refunds.
This case was investigated by IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.