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2 April 2018
District Court Enters Permanent Injunction Against New York Food Manufacturer Linked to Listeriosis OutbreakRead the Press Release
A federal court permanently enjoined a Walton, New York, creamery and its owner from manufacturing and distributing adulterated food, the Department of Justice announced today.
In a complaint filed March 19 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Vulto Creamery LLC and its owner, Johannes H. Vulto, violated the Federal Food, Drug and Cosmetic Act by manufacturing and distributing ready-to-eat cheeses contaminated with the bacterium Listeria monocytogenes (L. mono). According to the complaint, a 2017 investigation by FDA and the Centers for Disease Control and Prevention (CDC) determined Vulto Creamery cheese was the source of a multistate listeriosis outbreak that sickened at least eight people, two of whom died. The defendants agreed to be bound by a consent decree filed with the complaint in U.S. District Court for the Northern District of New York.
“L. mono is a serious health threat that can prove fatal,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Consumers should be able to trust that the food they buy is safe, and we will continue working with FDA to take action against manufacturers that employ substandard practices.”
“The presence of this dangerous bacteria at a cheese manufacturing facility in Upstate New York is of grave concern,” said U.S. Attorney Grant C. Jaquith for the Northern District of New York. “We will continue to use all available tools to ensure that our food supply is safe and violations of laws protecting public heath are addressed.”
The complaint alleged that the defendants’ cheeses were prepared, packed or held under insanitary conditions. According to the complaint, company records revealed positive tests for a type of Listeria in the Vulto facility, but the defendants never attempted to identify the species of Listeria or its source. The complaint alleged the defendants also failed to conduct microbial testing of finished cheese products despite finding indications of Listeria on food contact surfaces. Vulto Creamery used raw, or unpasteurized, milk to make its ready-to-eat cheese.
The consent decree entered by the court permanently enjoins the defendants from violating the FDCA. Under the order, the defendants may not manufacture or distribute food unless they comply with specific remedial measures set forth in the decree. Among other requirements, the defendants must hire a qualified independent expert to develop an effective sanitation control program to adequately control for the risk of L. mono. Before manufacturing or distributing any food, defendants must first receive FDA’s written determination that their manufacturing practices comply with the law.
This matter was handled by Trial Attorney Natalie Sanders of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Michael Gadarian of the U.S. Attorney’s Office for the Northern District of New York, with the assistance of Associate Chief Counsel for Enforcement Leslie Cohen of the FDA’s Office of General Counsel, Department of Health and Human Services.
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 New York, visit its website at https://www.justice.gov/usao-ndny.
Detroit Woman Pleads Guilty to Federal Pill ChargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit woman caught with pain pills in Huntington in 2015 pled guilty today to a federal drug crime, announced United States Attorney Mike Stuart. Kieyonda Annette-Marie Toler, 28, entered her guilty plea to possession with intent to distribute oxymorphone in federal court in Huntington. United States Attorney Stuart commended the work of the Huntington FBI Drug Task Force.
“Detroit drug dealers have wreaked havoc in our communities, particularly in Huntington,” said United States Attorney Mike Stuart. We are working with our law enforcement partners to aggressively prosecute every case. At some point, even Detroit drug thugs should be able to figure out that they are not welcome here.”
On December 3, 2015, members of the Huntington FBI Drug Task Force were conducting surveillance at the Greyhound Bus Station located in Huntington. Officers observed Toler exit a bus that had arrived from Detroit, Michigan and approached Toler to speak with her. Officers subsequently seized marijuana and an oxymorphone tablet Toler had in possession and Toler was placed under arrest. After Toler was transported to the Western Regional Jail, a correctional officer seized an additional 58 oxymorphone tablets Toler had concealed in her pants. Toler admitted that she intended to provide some of the tablets to another individual for distribution.
Toler faces up to 20 years in federal prison when she is sentenced on July 19, 2018.
Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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 prescription drugs and heroin. 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 opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Department of Justice Files Motion in Multi-District Opioid CaseRead the Press Release
Attorney General Jeff Sessions today announced that the Department of Justice has filed a motion to participate in settlement discussions and as a “friend of the court” in the ongoing Multi-District Litigation against opioid manufacturers and distributors.
“Following the leadership of President Trump, for the past year the Department of Justice has vigorously fought the prescription opioid crisis, deploying new tools and resources to stop the traffickers and corrupt medical professionals who are profiting off of addiction,” said Attorney General Sessions. “We are determined to continue making progress. Today, we are taking a new step to help those who have suffered the consequences of the opioid epidemic by offering our assistance as friend of the Court in ongoing litigation against opioid manufacturers and distributors. We have already filed a statement of interest in this case, arguing that the taxpayer has paid a heavy price because of dishonest opioid marketing practices, and deserves to be compensated. Now we are formally seeking to provide the federal government’s expertise and legal counsel to the court on a potential settlement. We are determined to see that justice is done in this case and that ultimately we end this nation’s unprecedented drug crisis.”
A “friend of the court” is not a direct party to the case, but provides information and expertise that may help achieve justice in the case.
The Department’s participation, if granted by the court, will ensure that the court will be better able to consider the national consequences of the case, and in particular any legal obligations of settling parties to reimburse the federal treasury.
In addition to this filing, the United States is pursuing its own actions against bad actors at every level of the opioid distribution system through the Prescription Interdiction and Litigation (PIL) Task Force, which Attorney General Sessions created in February.
The Attorney General has directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits.
Today’s filing will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:- In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
- One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet. This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
- In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
- The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
- In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
- Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
- In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
- In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team. The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
- Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
- On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years. This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
Note: To view the Motion to Participate in Settlement Discussion and as Friend of the Court click here.
DEA Surge in Drug Diversion Investigations Leads to 28 Arrests and 147 Revoked RegistrationsRead the Press Release
For 45 days in February and March, the U.S. Drug Enforcement Administration surged its enforcement and administrative resources to identify and investigate prescribers and pharmacies that dispensed disproportionately large amounts of drugs. The ultimate goal of the surge was remediating or removing those whose actions perpetuate the controlled prescription drug crisis in America, particularly opioid drugs.
During that period, the DEA surged the efforts of special agents, diversion investigators, and intelligence research specialists to analyze 80 million transaction reports from DEA-registered manufacturers and distributors, as well as reports submitted on suspicious orders and drug thefts and information shared by federal partners, such as the Department of Health and Human Services. This resulted in the development of 366 leads to DEA field offices, 188 of which (51 percent) resulted in active investigations by DEA’s 22 field divisions.
“In the midst of the deadliest drug epidemic in American history, we need all hands on deck,” said Attorney General Jeff Sessions. “That’s why the Department of Justice has made enforcing our drug laws a priority. Over the last 45 days, the DEA has surged resources and personnel to prevent the diversion of opioids, arresting dozens of people and taking away drug dispensing authority from nearly 150 medical professionals. And our efforts are just getting started. I recently announced that DEA will surge task force officers and more analysts to places across America where the opioid crisis is at its worst. These new resources will help us catch and convict more of the drug traffickers and corrupt medical professionals who are fueling the opioid crisis.”
“DEA will use every criminal, civil, and regulatory tool possible to target, prosecute and shut down individuals and organizations responsible for the illegal distribution of addictive and potentially deadly pharmaceutical controlled substances,” said Acting DEA Administrator Robert W. Patterson. “We must stop the loss of our loved ones to these drugs.”
The culmination of those investigations was 28 arrests, 54 other enforcement actions including search warrants and administrative inspection warrants, and 283 administrative actions of other types. These additional actions included scheduled inspections, letters of admonition, memoranda of agreement/understanding, surrenders for cause of DEA registrations, orders to show cause, and immediate suspension orders (the immediate revocation of registrations).
DEA works with various federal and state partners on data sharing agreements to enhance its ability to identify individuals and companies who are contributing to the prescription opioid crisis, including a coalition of 41 state attorneys general and the Department of Justice’s Opioid Fraud and Detection Unit, an initiative of Attorney General Sessions. It is also dedicating additional resources to its domestic divisions to carry out investigations.Columbus Man Sentenced for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Columbus man who was caught selling heroin in Huntington in 2016, was sentenced today to 21 months in federal prison, announced United States Attorney Mike Stuart. Traemone Khalil Miller, 22, previously pleaded guilty to distribution of heroin and fentanyl in federal court in Huntington. United States Attorney Stuart praised the excellent investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“This is just the latest example of an out-of-state drug thug bringing deadly drugs and violence to Huntington,” said United States Attorney Mike Stuart. “Enough is enough. I’ve recently announced “Project Huntington,” which is bringing all the federal, state and local law enforcement resources we can muster to lock up every drug dealer we can find.”
On July 27, 2016, a confidential informant arranged to purchase heroin from Miller at the Marcum Terrace apartment complex in Huntington. The informant, accompanied by an undercover agent, traveled to that area where the informant met with Miller and others in an apartment. Miller then distributed what he represented to be heroin to the informant. A forensic chemist later analyzed the substance and confirmed it to be heroin mixed with fentanyl. Fentanyl is a synthetic opioid which is anywhere from 25 to 50 times more potent that heroin.
As part of his plea, Miller also admitted that he arranged an additional drug deal with the informant involving heroin mixed with fentanyl on August 3, 2016, and further helped facilitate the informant’s purchase of a firearm on August 25, 2016.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Chinese National Sentenced for Fraudulently Obtaining a Student VisaRead the Press Release
BOSTON - A Chinese national pleaded guilty and was sentenced today in federal court in Boston for defrauding the Department of Homeland Security (DHS) in its administration of the Student and Exchange Visitor Program.
Leyi Huang, 21, a Chinese national residing in Erie, Penn., pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge F. Dennis Saylor sentenced Huang to time served and ordered her immediately removed to the People’s Republic of China. In May 2017, Huang and three other Chinese nationals were arrested and charged for their roles in a college admissions exam scam.
In 2016, Huang entered into an agreement with a co-conspirator to have the co-conspirator take the Test of English as a Foreign Language (TOEFL) exam under Huang’s identity. On March 5, 2016, using Huang’s Chinese passport and TOEFL exam registration, the co-conspirator took the TOEFL exam under Huang’s identity at the TOEFL exam center in Burlington, Mass. Subsequently, the TOEFL score achieved by the co-conspirator was fraudulently awarded to Huang, which she used to gain entrance to an American university that participates in DHS’s Student and Exchange Visitor Program (SEVP). The university has a minimum TOEFL score requirement that Huang had failed to achieve on previous attempts. Once being accepted into the SEVP, Huang was issued a student visa by the Department of State to enter and remain in the United States for the duration of her studies.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the U.S. State Department's Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Brazilian Couple Charged in ATM Skimming SchemeRead the Press Release
BOSTON – A Brazilian couple was arrested on Friday, March 30, 2018, and charged in federal court in Boston in connection with an ATM skimming operation.
Alexandre Kawamura, 42, was charged with possession of device-making equipment, and Karem Kawamura, 25, was charged with aiding and abetting the use of a counterfeit access device.
According to the complaint affidavits, the ATM skimming equipment consisted of devices attached to ATM card slots that recorded bank account information on the magnetic strips of debit cards that unwitting victims inserted into ATMs, combined with pinhole cameras that captured the victims entering their PINs on ATM keypads. Alexandre Kawamura was caught on ATM security video placing and removing skimming devices on drive-up ATMs at Eastern Bank branches in Saugus, Stoneham, and Medford between Feb. 24 and March 16, 2018. On two occasions, when he drove up to the ATMs to check on the devices, Karem Kawamura was in the car.
On March 16, 2018, a bank customer called local police to report that he had found and removed a skimming device from the drive-up ATM at the Eastern Bank branch in Stoneham. Police responded and discovered that the pinhole camera was still attached to the ATM. They set up surveillance while bank security personnel monitored the ATM’s security video, and shortly before 11 pm, Alexandre Kawamura drove up to the ATM in a rental car, looked around for the skimming device, never inserted a card into the machine, and then drove off. Stoneham Police stopped Alexandre Kawamura’s car shortly thereafter. Mr. Kawamura had a Brazilian passport in his true name, but had rented the vehicle under an alias.
The same alias was embossed on a credit card in Alexandre Kawamura’s possession when he was arrested, but the bank account information contained in the magnetic strip of the card belonged to a bank customer whose debit card had been compromised at one of the Eastern Bank ATMs the day before. Eastern Bank records showed that, on the day of Mr. Kawamura’s arrest, purchases were made on the bank customer’s account at Dick’s Sporting Goods in Medford. The store’s security camera recorded the defendants shopping at that store during the time when the bank customer’s account was used to buy a shirt, jacket, and hat.
After Mr. Kawamura was arrested, federal agents located Ms. Kawamura at an Extended Stay America in Woburn. On March 30, agents executed a search warrant for the room used by Ms. Kawamura and found the shirt, jacket, and hat that had been purchased at Dick’s Sporting Goods.
The charge of possession of device-making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aiding and abetting the use of a counterfeit access device provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Medford Police Chief Leo Sacco; Milton Police Chief John E. King; Saugus Police Chief Domenic J. DiMella; Stoneham Police Chief James T. McIntyre; and Woburn Police Chief Robert J. Ferullo Jr. made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaints are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Gang Member Sentenced for Cocaine DistributionRead the Press Release
BOSTON – An identified member of the Orchard Park Trailblazers was sentenced today in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Lyndon Scott, a/k/a “L-Dot,” a/k/a “L-Scott,” 28, of Boston, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison and six years of supervised release. While on supervised release, Scott will be precluded from entering the Orchard Gardens Housing Development and being in contact or associating with approximately 25 individuals from the same area. In November 2017, Scott pleaded guilty to distribution of cocaine base within 1,000 feet of a school.
On April 14, 2017, Scott sold cocaine base, a/k/a crack cocaine, to a cooperating witness near a school in Roxbury. Scott told the cooperating witness that the crack was “great,” and that the cooperating witness would be returning to buy more from him. According to court documents, Scott has twice been convicted of illegal firearm possession and was on pretrial release for an unrelated drug offense when he sold the crack cocaine to the cooperating witness.
Scott is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city that have produced numerous crimes of violence.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Allen Man Pleads Not Guilty to Being an Accessory to Second Degree Murder and Making False StatementsRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Accessory after the Fact and False Statement or Representation.
Nathaniel "Thomas" Waters, age 45, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $125,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Waters being an accessory to second degree murder of his nephew, Ray Waters, Jr., on October 16, 2017, at Allen. Waters provided false statements to law enforcement about his location at the time of a fire and the homicide.
The charges are merely accusations and Waters is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Waters was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 26, 2018.
If you have information concerning this crime, please contact FBI Special Agent Robert Bennett at 605-343-9632.
Alabama Legislator, Alabama Lobbyist, and Owner of California Company Charged with Public CorruptionRead the Press Release
On Monday, April 2, 2018, three individuals—two of whom reside in Alabama and one who resides in California—were arrested on charges stemming from their involvement in a public corruption scheme, announced United States Attorney Louis V. Franklin, Sr. The Alabama defendants are State Representative Jack D. Williams, 60, of Vestavia Hills, Alabama and lobbyist Martin J. “Marty” Connors, 61, of Alabaster, Alabama. The California defendant is G. Ford Gilbert, 70, of Carmichael, California.
According to the indictment, Defendant Gilbert is the owner of a California company that operates diabetes treatment centers throughout the world—Trina Health, LLC (Trina Health). In 2014 and 2015, Trina Health opened three clinics in Alabama. Soon thereafter, the state’s largest health insurer, Blue Cross and Blue Shield of Alabama (a.k.a. Blue Cross), informed Trina Health that it would not cover the treatments provided by them. Gilbert then schemed to force Blue Cross to change its position.
He came up with a plan to push a bill through the Alabama Legislature’s 2016 session that would require Blue Cross to cover the treatments. Gilbert then made payments to State of Alabama House Majority Leader Micky Hammon in exchange for his efforts on behalf of the bill. Gilbert also hired Defendant Connors to act as a lobbyist on behalf of the bill. Connors knew of Gilbert’s payments to Majority Leader Hammon. Hammon and Connors then recruited Defendant Williams, the chairman of the Commerce and Small Business Committee of the Alabama House of Representatives, to hold a public hearing on the bill. Williams also knew of the payments to Hammon and acted in part to help Hammon, who, as everyone in the scheme knew, was experiencing grave financial problems.
Based on these events, the indictment charges all three defendants with conspiracy to commit bribery related to federal programs, conspiracy to commit honest services wire fraud, and honest services wire fraud. Additionally, the indictment alleges that Gilbert and Connors committed the substantive offense of bribery related to federal programs. Gilbert alone is charged with wire fraud, health care fraud, and interstate travel in aid of racketeering. The indictment does not include charges against Hammon because Hammon has already been convicted in federal court of other offenses.
If convicted of the most serious offenses, each defendant in this case faces a maximum sentence of 20 years in prison, significant monetary penalties, asset forfeiture, and restitution.
An indictment merely alleges that crimes have been committed. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The United States Postal Inspection Service investigated the case with the assistance of the Federal Bureau of Investigation. Assistant United States Attorneys Jonathan S. Ross and Joshua Wendell are prosecuting the case.
30 March 2018
Yevgeniy Nikulin Appears in U.S. Court Following ExtraditionRead the Press Release
SAN FRANCISCO – Yevgeniy Aleksandrovich Nikulin made his initial appearance in federal court today following his extradition from the Czech Republic, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. He appeared before Jaqueline Scott Corley, United States Magistrate Judge in San Francisco.
Nikulin, 30, of Moscow, Russia, was charged in a 2016 indictment with illegally accessing computers belonging to LinkedIn, Dropbox, and Formspring, each of which has its headquarters in the San Francisco Bay area. The indictment further alleges that the defendant accessed the computers without authorization and that he obtained information from the computers. According to the indictment, the defendant also caused damage to computers belonging to a LinkedIn employee and to Formspring by transmitting a program, information, code, or command. Nikulin is alleged to have used the credentials of LinkedIn and Formspring employees without their knowledge or authorization in connection with the computer intrusions. The indictment charges that Nikulin engaged in a conspiracy with unnamed co-conspirators to traffic stolen Formspring user credentials.
Nikulin was arrested on October 5, 2016, by Czech Republic law enforcement officials pursuant to an Interpol Red Notice, and has been in Czech custody since that time. The United States submitted an official request to the Czech government for his extradition in November 2016. On March 29, 2018, the Minister of Justice of the Czech Republic ordered Nikulin extradited to the United States. Nikulin was transported to the United States by agents of the Federal Bureau of Investigation.
“Computer hacking is not just a crime, it is a direct threat to the security and privacy of Americans,” Attorney General Jeff Sessions said. “In this case, the defendant, a Russian national, is accused of breaking into the computer system of several important American companies using stolen identities, and potentially gaining access to the personal information of millions of Americans. This is deeply troubling behavior once again emanating from Russia. We will not tolerate criminal cyber-attacks and will make it a priority to investigate and prosecute these crimes, regardless of the country where they originate.
“I want to thank our partners in the Czech Republic for their cooperation in the extradition process, and I also want to thank the FBI, the Department of Justice’s Office of International Affairs, and Assistant U.S. Attorneys Michelle Kane and Matt Parella for their hard work. The Department of Justice will continue our work to defend the safety, property, and privacy of the American people from the threat of foreign hackers.”
“The Department of Justice is committed to investigating and bringing to justice hackers who illegally access computer systems to steal information,” said Acting U.S. Attorney Alex G. Tse. “Hackers cause millions of dollars of damage to computer systems and victimize innocent users. We will use the considerable means at our disposal to find, capture, and bring to justice computer hackers who commit crimes against U.S. computer systems and the people who use and rely on those systems, regardless of where those hackers commence their attacks. The arrest and extradition of Nikulin is the result of effective cooperation between U.S. and our international law enforcement partners to combat computer crime.”
“The FBI will not allow international cyber criminals to operate with impunity,” said FBI Special Agent in Charge John F. Bennett. “Nikulin allegedly targeted three Bay Area companies through cyber-attacks, and will now face prosecution in the United States. This extradition is a success for U.S. law enforcement and our partners overseas.”
Nikulin is charged with three counts of computer intrusion, in violation of 18 U.S.C. § 1030(a)(2)(C); two counts of intentional transmission of information, code, or command causing damage to a protected computer, in violation of 18 U.S.C. § 1030(a)(5)(A); two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); one count of trafficking in unauthorized access devices, in violation of 18 U.S.C. § 1029(a)(2); and one count of conspiracy, in violation of 18 U.S.C. § 371.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces the following maximum penalties:
- 18 U.S.C. § 371 (conspiracy): Five years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 1028A(a)(1) (aggravated identity theft): Two-year mandatory minimum sentence of imprisonment to run consecutive to any other sentence and in addition to the sentence for the underlying felony, $250,000 fine, three years of supervised release, $100 special assessment, restitution.
- 18 U.S.C. § 1029(a)(2) and (c)(1)(A)(i) (trafficking in unauthorized access devices): Ten years of imprisonment, $250,000 fine, three of years supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 1030(a)(2)(C) and (c)(2)(B) (computer intrusion): Five years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture, and restitution.
- 18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i) (causing damage to a protected computer): Ten years of imprisonment, $250,000 fine, three years of supervised release, $100 special assessment, forfeiture, and restitution.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Nikulin pleaded not guilty to the charges. Magistrate Judge Corley scheduled Nikulin’s next appearance for April 4, 2018, for a detention hearing.
Michelle J. Kane and Matt Parrella are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Vanessa Quant and Elise Etter. The prosecution is the result of a four-year investigation by the Federal Bureau of Investigation with the assistance of authorities in the Czech Republic and the U.S. Department of Justice’s Criminal Division, Office of International Affairs.
Wyoming County Man Pleads Guilty to Insurance Fraud by ArsonRead the Press Release
BLUEFIELD, W.Va. – A third man pled guilty today in federal court for his roles in a scheme to commit insurance fraud by arson, announced United States Attorney Michael B. Stuart. James Keith Browning, age 54, of Hanover, Wyoming County, pled guilty to a charge of arson to commit wire fraud before Senior United States District Judge David A. Faber. United States Attorney Mike Stuart commended the work of the United States Postal Inspection Service, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner for their joint participation in the investigation.
“Insurance fraud and arson are serious crimes,” said United States Attorney Mike Stuart. “Arson risks property and lives and insurance fraud defrauds all of us. We will prosecute those crimes every chance we get.”
In the spring of 2013, Browning, Dudley Bledsoe and James “Punkin” Lester devised a scheme to purchase a house, place it in Browning’s name, obtain insurance on it and burn it to collect the proceeds. The property was located at 9068 Interstate Highway in Ikes Fork, West Virginia. Sometime during the week of August 12-16, 2013, Lester, Bledsoe and Browning manufactured an alibi they could use for when the house was burned. Sometime after the creation of the plan for the alibi, Bledsoe and Browning went to the house in Bledsoe’s vehicle to prepare the house to be burned. The house burned on August 16, 2013, while Browning and Lester were at the West Virginia State Fair. Browning then filed a fraudulent claim with the insurance company for the loss of the house and for items purportedly contained in the house. Ultimately, Browning received $100,000 from the insurance company for the false claim. Browning then divided the proceeds with Bledsoe and Lester. Browning faces 10 years imprisonment when he is sentenced on July 25, 2018.
Bledsoe, age 63, of Hanover, West Virginia, pled guilty on March 14 to related charges and is awaiting sentencing. Ricky Gleason, 54, of Peach Creek, West Virginia, also pled guilty on March 14 to related charges involving a similar scheme connected to a house in Huntington, West Virginia. The sentencing hearings for Bledsoe and Gleason is scheduled for May 30, 2018.
Windel Lester, James Edward Lester, also known as “Punkin,” Georgetta Kenney, and Greg A. Lester are currently facing charges in a 40 count indictment for their respective roles in the scheme. Their trial is set for May 8, 2018, in Bluefield.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Worcester Men Charged with Drug and Firearm OffensesRead the Press Release
BOSTON – Two Worcester men were indicted yesterday in federal court in Worcester for their roles in a fentanyl, heroin, cocaine, and crack cocaine conspiracy.
Daniel Donald, 36, and Robert Young, 46, were indicted on one count of conspiracy to distribute heroin, cocaine, cocaine base (a/k/a crack cocaine) and fentanyl. Donald was also charged with possession with intent to distribute over 100 grams of heroin, over 500 grams of cocaine, over 28 grams of crack cocaine, and fentanyl, as well as being a felon in possession of a firearm.
Donald and Young were previously charged by complaint on Dec. 1, 2017. According to court documents, in April 2017, federal law enforcement began investigating ongoing drug sales by Donald and Young at a location on Groton Street in Worcester. On Nov. 30, 2017, law enforcement executed a search warrant at the Groton Street location and seized a kilogram of cocaine, approximately 490 grams of heroin, approximately 88 grams of crack cocaine, dozens of pills containing fentanyl, and a loaded 9 mm firearm.
Young faces a sentence of no greater than 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. The drug charges against Donald provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of $5 million. The firearm charge provides for a mandatory minimum sentence of 15 years and up to life in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Worcester Police Chief Stephen Sargent made the announcement. Assistant U.S. Attorney Greg A. Friedholm, Chief of Lelling’s Worcester Branch Office, is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Winter Garden Man Pleads Guilty to Conspiring to Defraud Insurers in Staged Accident ScamRead the Press Release
Orlando, Florida – Jonathan Brown (33, Winter Garden) today pleaded guilty to conspiracy to commit mail fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Brown and three others conspired to defraud insurance companies by submitting false claims following a staged car accident in Orange County, in May 2013. Brown, two co-conspirators, and the children of one of the conspirators were occupants in a car that was rear-ended by a vehicle being driven by a third co-conspirator in a pre-planned collision. After the collision, the conspirators, who had known each other for years, agreed to tell first responders that they did not know each other. They also agreed to seek emergency care for fictitious injuries purportedly sustained during the collision, and sought treatment from other medical providers for months following the collision. Brown and his co-conspirators then submitted fraudulent claims for medical expenses for unnecessary treatment, lost wages that had never incurred, attorney fees arising from threatened litigation, and compensatory damages for pain and suffering to their insurers, causing the insurers to pay out thousands of dollars based on those false claims.
This case was investigated by the Florida Department of Financial Services and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Vancouver Man Convicted of Massive Telemarketing Scheme After Fighting Extradition for Ten YearsRead the Press Release
LOS ANGELES – The owner of a Canadian telemarketing operation was convicted yesterday by a federal jury of mail and wire fraud for having orchestrated a bogus telemarketing scheme that defrauded at least 60,000 victims of over $18 million dollars.
After fighting extradition for over 10 years, Mark Eldon Wilson, 57, of Vancouver, British Columbia, was convicted following a five-day jury trial before United States District Judge S. James Otero. The federal jury convicted Wilson of seven counts of mail fraud and two counts of wire fraud for having orchestrated a fraudulent cross-border telemarketing scheme that targeted mostly elderly victims and offered a bogus credit card fraud protection program.
The evidence admitted at trial showed that Wilson operated a phony telemarketing scheme through various companies – including OPCO International Inc. and American Fraud Watch Services - from 1998 through 2001 targeting victims in the United States. At his direction, telemarketers misled victims into believing that defendant’s companies were affiliated with victims’ credit card companies and falsely suggested to victims they were vulnerable to credit card fraud and would be held liable for fraudulent charges on their cards. They sold the victims a non-existent credit card “protection” service for approximately $300, and falsely promised a 100% money-back guarantee.
In many instances without authorization, Wilson’s companies charged victims’ credit cards for the full amount of the “protection” service fee, even though they told victims the fee for the service was as little as $2 per month. In reality, Wilson and his companies were not associated with victims’ credit card companies, the credit card companies would not actually hold victims liable for charges arising from credit card fraud, and defendant’s companies did not provide the promised credit-card-monitoring and protection services Wilson claimed they would provide.
Between 1998 and 2001, Wilson and his telemarketing companies solicited over $18,000,000 from more than 60,000 victims in 37 different states, including a number of victims from the Central District of California. Wilson profited handsomely from his fraud, transferring over $100,000 in profits to an offshore account in the South Pacific Island of Vanuatu, purchasing a number of vehicles in the name of his telemarketing companies, and negotiating the purchase of at least one luxury boat that was selling for over $400,000.
At trial, the government called approximately 22 witnesses, including several insiders who worked at Wilson’s companies, numerous victims who were directly defrauded through his efforts, two expert witnesses on credit-card processing and cross-border telemarketing fraud, as well as playing actual undercover recordings that captured the bogus sales pitches of Wilson’s telemarketers.
With a total of nine convictions on mail and wire fraud as well as the jury’s multiple findings that these crimes occurred in connection with the conduct of telemarketing, Wilson faces a maximum sentence of 90 years of imprisonment.
Wilson, who was extradited from Canada in late February 2017 after lengthy proceedings, remains in custody following his convictions, and is scheduled to be sentenced on July 30, 2018.
This case was jointly investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Federal Trade Commission, the Royal Canadian Mounted Police, and the Department of Justice - Government of Canada.
The case is being prosecuted by Assistant United States Attorney and Senior Litigation Counsel Paul Stern of the Major Frauds section, and Assistant United States Attorneys Roger Hsieh and Joseph Woodring of the General Crimes section.
U.S. Attorney John F. Bash Announces Supervisory Staff ChangesRead the Press Release
United States Attorney John F. Bash has announced changes to his supervisory staff within the District.
Effective Monday, April 2, Ashley Hoff will serve as the First Assistant United States Attorney. Hoff, who currently serves as the City Chief overseeing the Austin Division, will supervise both the Criminal Division and the Civil Division. Hoff began her federal service in 2000, when she left her position as a prosecutor in the Harris County District Attorney’s Office to become a Special Assistant United States Attorney for the Southern District of Texas. In that role, Hoff prosecuted federal firearms offenses as part of the Texas Exile program, which was established in partnership with the Texas Attorney General’s Office and the United States Department of Justice. Hoff became an Assistant United States Attorney in the Southern District of Texas in June 2001 and joined that office’s Counterterrorism Section after the September 11th attacks. In late 2003, Hoff began her service in the Austin Division of the Western District of Texas, where she prosecuted a variety of federal offenses in the areas of violent crime, narcotics, immigration enforcement, and financial fraud. She was twice recognized with the Western District of Texas James DeAtley Award for an exceptionally complex, difficult, or significant prosecution. Hoff was promoted to Chief of the Austin Division in 2012. Hoff graduated from Baylor University School of Law in 1994 and from Texas Christian University in 1991.
Also effective Monday, April 2, Kristy Callahan will serve as the Executive Assistant United States Attorney, a newly created position in the District. In that role, Callahan will supervise the Administrative Division, the Legal Support Division, and a new Asset Recovery Division, which will comprise the Asset Forfeiture Unit and the Financial Litigation Unit (FLU). Callahan began her service in the District in August 2008 as an Assistant United States Attorney assigned to handle border-fence condemnation cases and defensive civil litigation. In June 2012 she was promoted to Chief of the FLU, leading its mission to aggressively enforce criminal judgments by recovering losses sustained by victims of crime. In that role, Ms. Callahan has worked to restructure the FLU with the Nation’s largest caseload into a more productive and efficient team capable of enhancing criminal prosecutions. As a result of those efforts, earlier this year she received the Director’s Award for Excellence in Management from the Executive Office for United States Attorneys. She is a member of the national FLU Working Group and a regular instructor at the National Advocacy Center, which trains federal attorneys and support staff throughout the United States. Callahan graduated cum laude from the University of Mississippi Law School in 2003 and summa cum laude from the University of North Texas in 1996.
“Ashley Hoff and Kristy Callahan are brilliant and experienced attorneys. Critically, they each have thrived in leadership roles within the District and will bring exceptional management skills to their new positions,” stated United States Attorney Bash. “Ms. Hoff and Ms. Callahan will be essential to achieving my priorities in the District, including strengthening border security, slashing violent crime, and enhancing the integrity of our public institutions.”
Current First Assistant United States Attorney Richard Durbin will serve as a Senior Litigation Counsel for the District. In that role, he will mentor other attorneys and bring his vast experience and knowledge to bear on significant matters within the District. “Richard Durbin has an unrivaled record of distinguished service in the U.S. Attorney’s Office,” stated United States Attorney Bash. “He has humbly served the people of Central and West Texas for close to 40 years, including as United States Attorney, First Assistant United States Attorney, and Chief of the Criminal Division. He is quite simply a legend. I am grateful for his continued service to this District and the Department of Justice.”
Tybee Island Shrimper Convicted of Falsifying Documents, Mail Fraud and Money LaunderingRead the Press Release
SAVANNAH, GA: On March 22, 2018, Michael Brian Anderson, a local Tybee Island shrimper and fisherman, was convicted by a federal jury on three counts of false statements, four counts of mail fraud, and two counts of money laundering. United States District Court Judge William T. Moore, Jr. presided over Anderson’s three-day trial.
According to the evidence presented at trial, Brian Anderson submitted multiple false claims to Customs & Border Protection (CBP) seeking millions of dollars in subsidies under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA). The CDSOA protected American shrimp producers by imposing anti-dumping taxes on foreign producers and permitting domestic shrimpers to apply for the money they would have made but for unfair foreign competition. Brian Anderson, an eligible domestic shrimper, completed and mailed multiple false certifications to CBP, stating that his shrimping business expenses for the years 2005 to 2007 were more than $24 million. Anderson claimed that he spent almost all of this money on the purchase of 3.9 million pounds of raw shrimp from R&R Seafood, a small seafood store on Tybee Island. However, the evidence showed that R&R Seafood never sold anywhere near that amount of shrimp in the entire time it was in business. Anderson’s bank records and tax returns further debunked his claimed expenses. Based on Anderson’s fraud, the U.S. government paid Anderson over $800,000 to which he was not entitled. Anderson used those proceeds of his fraud to purchase boats, stocks and property.
United States Attorney Bobby L. Christine stated, “Brian Anderson submitted millions of dollars in inflated invoices, for one simple reason: greed. The CDSOA was established to help protect our local American shrimpers from unfair foreign competition. Little did we know that the biggest threat to our honest shrimpers would come, not from across the seas, but from our own nearby creek. By overinflating the amount he was entitled to receive under the CDSOA, Brian Anderson diverted money from the pockets of hard working shrimpers into his own pocket. Our office is devoted to aggressively prosecuting anyone who seeks to steal public money by fraud.”
U.S. Attorney Christine commended the hard work and dedication of the United States Coast Guard Investigative Service, Homeland Security Investigations, and Customs and Border Protection, who jointly investigated the case.
Assistant United States Attorneys Jennifer Kirkland and Tania Groover prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Two Santa Rosa County Men Plead Guilty to Fraud Relating to Air Force Helicopter ContractsRead the Press Release
PENSACOLA, FLORIDA – Ryan Romero, 51, of Gulf Breeze, Florida, and Adam W. Fair, 42, of Navarre, Florida, pled guilty yesterday and Wednesday to conspiracy to commit wire fraud and honest services fraud. The guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Evidence proffered as part of the plea showed the following: Between 2010 and 2012, “M.I.S.” and his company Simplex Corporation, were awarded contracts with the United States Air Force at Hurlburt Field Air Force Base to provide helicopters and parts. During the same period, defense contractors and subcontractors were awarded contracts with the Air Force to provide maintenance work on those helicopters. Romero was employed as maintenance manager and Fair was employed as a maintenance superintendent for one or more of these companies.
Fair and Romero used their positions to obtain kick-backs in exchange for giving favorable treatment to M.I.S. and Simplex Corporation. The favorable treatment included assisting M.I.S. in assembling and disassembling helicopters using defense contract company employees to complete the work without the company being compensated for this work. In exchange, Romero received approximately $30,000, and Fair received approximately $20,000.
The plea documents also reflect that in exchange for monthly payments of $6,000 from M.I.S., Romero and Fair agreed to provide favorable maintenance inspection reports to the Air Force on helicopters that M.I.S. and Simplex Corporation supplied. In exchange for agreeing to provide favorable reports, Romero and Fair received approximately $154,350 in kick-backs from M.I.S.
The defendants each face a maximum of 20 years in prison. The sentencing hearings are scheduled on July 18, 2018, for Fair, and on August 2, 2018, for Romero at the United States Courthouse in Pensacola.
The case was investigated by the United States Air Force Office of Special Investigations, and was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two MS-13 Members Plead Guilty to RICO ConspiracyRead the Press Release
BOSTON – Two members of MS-13 have pleaded guilty in federal court in Boston. They are the 38th and 39th defendants, respectively, to be convicted in a 61 defendant case.
Edgar Pleitez, a/k/a “Cadejo,” 28, pleaded guilty yesterday to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to distribute 100 grams or more of heroin. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 10, 2018.
German Hernandez Escobar, a/k/a “Terible,” 30, a Salvadoran national, pleaded guilty on Tuesday, March 27 – the day he was scheduled to stand trial – to RICO conspiracy and conspiracy to distribute marijuana. According to the terms of the plea agreement, the parties will jointly recommend that the Court impose a sentence of 23 years in prison. Judge Saylor scheduled sentencing for June 20, 2018.
According to court documents, Hernandez Escobar was a leader of MS-13’s Everett Loco Salvatrucha (ELS) clique. Several ELS clique members have pleaded guilty to participating in murders carried out on behalf of MS-13, including a July 5, 2015, murder of a 15-year-old in Lawrence. Hernandez Escobar also conspired with other MS-13 members to sell marijuana as a means of raising funds to promote the ELS clique’s criminal activities, including purchasing firearms. Pleitez, who was a homeboy, or full member of MS-13’s East Boston Loco Salvatrucha (EBLS) clique, conspired with other MS-13 members to distribute heroin.
After a three-year investigation, Pleitez and Hernandez Escobar were two of 61 defendants named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of conspiracy to distribute marijuana provides for a sentence of no greater than five years in prison, a minimum of two years of supervised release, and a fine of no greater than $250,000. The charge of conspiracy to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Hernandez Escobar will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Thomas T. Cullen Sworn in as United States Attorney for the Western District of VirginiaRead the Press Release
Roanoke, VIRGINIA – In a private ceremony Friday morning, Thomas T. Cullen was sworn in as United States Attorney for the Western District of Virginia. The Honorable Michael F. Urbanski, Chief Judge for the Western District of Virginia, administered the oath of office at the U.S. District Courthouse in Roanoke in front of small group of family and friends.
President Donald J. Trump nominated Mr. Cullen to be the United States Attorney on February 16, 2018. The United States Senate confirmed his nomination on March 22, 2018.
“I am honored to serve as U.S. attorney and look forward to leading the dedicated public servants who work in that office,” U.S. Attorney Cullen stated. “We will work tirelessly with our federal, state, and local law-enforcement partners to implement our core investigative priorities, including combatting gun-related violence and the opioid epidemic.”
U. S. Attorney Cullen, 40, of Roanoke, is the former Deputy Criminal Chief for the U.S. Attorney’s Office in Roanoke and a former Assistant United States Attorney in the Western District of North Carolina. During his time as a federal prosecutor, Mr. Cullen directed numerous multi-agency investigations and prosecutions, supervised Assistant United States Attorneys, and coordinated with officials at the U.S. Department of Justice in Washington, D.C.
In 2013, Mr. Cullen joined Woods Rogers PLC as a partner in the firm’s white-collar criminal defense practice, where he represented a variety of individuals and companies in criminal matters, internal investigations, and complex civil litigation.
A graduate of Furman University, Mr. Cullen earned his law degree from William & Mary School of Law, where he was inducted into the Order of the Coif. Following law school, he served as a law clerk for The Honorable Robert L. Gregory, Chief Judge of the U.S. Court of Appeals for the Fourth Circuit, and for The Honorable Robert E. Payne, District Judge for the U.S. District Court for the Eastern District of Virginia.
Tax Return Preparer Indicted on Additional Charges Related to Tax Fraud and Refund Theft Schemes Committed While on Pretrial ReleaseRead the Press Release
NEWARK, N.J. - A federal grand jury in Newark has returned a 29-count second superseding indictment adding charges alleging that a former Bergen County, New Jersey, tax return preparer filed false federal income tax returns, stole client refunds, and committed identity theft in connection with refunds stolen from a deceased taxpayer, U.S. Attorney Craig Carpenito announced today.
Wayne Dunich-Kolb, 53, of Montvale, New Jersey, was originally charged by indictment in March 2014 with five counts of aiding and assisting in the filing of false federal income tax returns and four counts of subscribing to false tax returns. In December 2016, Dunich-Kolb was charged by superseding indictment. Today’s second superseding indictment adds five counts of aiding and assisting in the filing of false tax returns, 12 counts of mail fraud, and two counts of aggravated identity theft, all of which were allegedly committed while the defendant was on pretrial release.
Dunich-Kolb was arrested this morning. The initial appearance on the new charges is scheduled for Monday, April 2, 2018, before U.S. Magistrate Judge Steven C. Mannion.
According to the second superseding indictment:
Dunich-Kolb prepared and filed, through the U.S. mail, fraudulent returns through various tax preparation entities, including Dunich-Kolb LLC, Jadran Services Corp., Adriatica Payroll Corp., Adriatica Tax Planning LLC, and Adriatic Tax Planning LLC (collectively, the “tax preparation entities”), which he ran from his former residence in Saddle River and then from his current residence in Montvale. Dunich-Kolb also maintained a U.S. Post Office box in Las Vegas, Nevada, that he used in connection with his tax preparation business.
Dunich-Kolb caused many of his clients to form fictitious partnerships or corporations that existed in name only and had no business purpose other than to falsely reduce the clients’ tax liability. He prepared false and fraudulent business returns for clients’ fictitious businesses by fabricating and inflating business expenses, such as advertising, travel and other miscellaneous expenses, in order to generate fraudulent business and partnership losses, which he then used to substantially reduce taxpayers’ taxable income on their individual federal income tax returns.
Dunich-Kolb falsified clients’ 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, and 2016 individual federal income tax returns (original and amended), partnership returns, and corporation returns by fabricating and inflating: (1) business and partnership Schedule K-1 losses; (2) deductions for unreimbursed employee business expenses, including home office, vehicle mileage and fuel expenses; and (3) expenses and cost basis of rental properties, including vehicle mileage and travel expenses for rentals located within or a short distance from the primary residence.
Dunich-Kolb also falsified his own personal federal income tax returns by substantially underreporting income from his tax preparation and accounting business for tax years 2006, 2007, and 2008. For these tax years, Dunich-Kolb received gross income totaling approximately $500,000 to $657,000 per year. Dunich-Kolb falsely claimed income of only $400 for 2006, $526 for 2007, and $489 for 2008.
Dunich-Kolb also stole certain clients’ federal tax refunds, including the refunds of a deceased client, by causing the IRS to mail the refund checks to Dunich-Kolb’s Las Vegas Post Office box, from where they were mail-forwarded to Dunich-Kolb’s residence in Montvale. Dunich-Kolb, without authorization, used the Social Security numbers of the deceased client and another client on IRS forms claiming that the latter client was entitled to the deceased client’s refunds for tax years 2013 and 2014 and causing the IRS to mail the deceased client’s refunds to his Las Vegas Post Office box. Once in receipt of the clients’ tax refund checks that had been mail-forwarded to his residence, Dunich-Kolb deposited the checks into accounts that he controlled and converted the funds to his own personal use.
Each of the aiding and assisting in the filing of false federal income tax returns and subscribing to false tax returns counts carries a maximum potential penalty of three years in prison and a $250,000 fine. Each of the mail fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft counts each carry a maximum potential penalty of two years in prison that each must run consecutive to the sentence imposed on the underlying mail fraud counts. For committing a felony offense while on pretrial release, the maximum potential penalty is 10 years in prison that must run consecutive to the sentence for the underlying felony offense.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and the Montvale Police Department, under the direction of Chief Jeremy Abrams, with the investigation leading to today’s charges.
The charges and allegations in the second superseding indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recover Money Laundering Unit.
Defense counsel: Jeffrey G. Garrigan Esq., Summit, New Jersey
South Carolina Man Sentenced to 120 Months in Federal Prison for Enticing a MinorRead the Press Release
LUBBOCK, Texas — A South Carolina resident, Travis Daron Pitts, 51, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 120 months in federal prison, following his guilty plea in November 2017 to one count of enticement and attempted enticement of a minor, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Pitts has been in federal custody since his arrest in September 2017.
According to the plea agreement factual resume filed in the case, on August 11, 2017, Pitts, who lived in South Carolina, began communicating with an 11-year old female who lived in the Lubbock, Texas. Pitts and the minor female, Jane Doe communicated over the Internet, using an application that provides a way for individuals to share photos, videos, text messages and make phone calls. The sexually explicit communications between Pitts and Jane Doe took place in the “preteenies” girls only chat room. Jane Doe’s stepmother learned of the communications and notified authorities.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, Texas Department of Public Safety and Texas Rangers investigated the case. Assistant U.S. Attorney Jeffrey Haag was in charge of the prosecution.
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Six Annapolis MS-13 Members Indicted on Charges Ranging from Racketeering Conspiracy, Murder, and Attempted MurderRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On March 29, 2018, a federal grand jury indicted six MS-13 members on charges in connection with their MS-13 gang activities, including racketeering conspiracy; murder in aid of racketeering; violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Police Chief Timothy J. Altomare of the Anne Arundel Police Department; and State Attorney Wes Adams of the Anne Arundel State’s Attorney Office.
Charged in the nine-count indictment are Moises Alexis Reyes-Canales, a/k/a “Sicopata”, age 19; Marlon Cruz-Flores, a/k/a “Little S”, age 22; Fermin Gomez-Jimenez, age 20; Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb”, age 19; Juan Carlos Sandoval-Rodriguez, a/k/a “Picaro”, “El Pastor”, and “Gasper”, age 20; and David Diaz-Alvarado, age 20; all of Annapolis, Maryland.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, prior to 2015, and continuing through 2017, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.
According to the indictment, MS-13 members and associates conspired to murder a rival gang member. On or about March 11, 2016, Sandoval-Rodriguez lured the victim to a park in Annapolis, Maryland with the intent to murder the victim. On or about that same date, Cruz-Flores, Gomez-Jimenez, Sandoval-Rodriguez, and Diaz-Alvarado, and other members and associates of MS-13 murdered the victim in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
According to the indictment, on October 23, 2016, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13. Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, and other members and associates of MS-13 attempted to kill one of the victims by stabbing the victim multiple times and attempted to kill a second victim by shooting and stabbing the victim multiple times.
All of the defendants are currently detained on related federal or state criminal charges. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting United States Attorney Stephen M. Schenning commended HSI, ATF, Anne Arundel Police Department, and Anne Arundel State’s Attorney Office. Schenning thanked Assistant U.S. Attorney Seema Mittal, Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section, as well as Special Assistant U.S. Attorney Samantha Mildenberg, who are prosecuting this case.
Sisters Indicted for Misusing a Social Security Number and Misrepresenting Immigration Status to Get JobsRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted sisters from Guatemala for fraudulently using someone else’s Social Security number and identification in order to misrepresent their immigration status and get jobs in Marion County, announced U.S. Attorney Jay E. Town and Social Security Administration, Office of Inspector General, Special Agent in Charge Margaret Moore-Jackson.
Separate indictments filed in U.S. District Court charge that both INES GLADDIS AVALOS-PAAU, 35, and LOURDES MAGDALENA AVALOS-PAAU, 33, used an alias, falsely claimed a Social Security number assigned to the person whose name they used, and fraudulently presented an Arkansas non-driver’s identification card in that name when they applied for jobs. The indictment also charges that the women fraudulently misrepresented on U.S. Citizenship and Immigration Services’ forms for employment eligibility verification that they were U.S. citizens.
Ines Gladdis Avalos-Paau misused the documents and misrepresented her immigration status in February 2014 when she applied for a job at Hamilton Plastic Products in Hamilton, according to her indictment.
Lourdes Magdalena Avalos-Paau misused the documents and misrepresented her immigration status in December 2017 when she applied for a job at Kith Kitchens in Haleyville, according to her indictment.
The maximum penalty for both falsely representing a Social Security number and for fraudulently using an identification document is five years in prison and a $250,000 fine. The maximum penalty for making a fraudulent statement on a government immigration document is 10 years in prison and a $250,000 fine.
SSA, OIG, investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Pharmacy Owner and Pharmacist Sentenced to 160 Months in Prison for $4.3 Million Pain and Scar Cream Kickback Scheme Against Military Insurance ProgramRead the Press Release
The owner of an Orlando, Florida-area pharmacy, who was also a licensed pharmacist, was sentenced today for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military members and their families, as well as retired veterans.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.
Larry B. Howard, 53, of Oviedo, Florida, was sentenced by U.S. District Judge Paul G. Byron for the Middle District of Florida to serve 160 months in prison and ordered to forfeit over $4.3 million as proceeds of the crime. Howard was also ordered to forfeit two properties, worth approximately $340,000, that he purchased with the proceeds of the crime, and two cashier’s checks worth $25,000 each. The judge also ordered Howard to pay $4.3 million in restitution to the federal military health insurance program.
Howard; Nicole R. Bramwell, M.D., 52, of Apopka, Florida; and Raymond L. Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.
According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks. Bramwell’s sentencing is scheduled for May 9. Stone is scheduled to be sentenced on April 27.
The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pharmacy Owner and Pharmacist Sentenced to 160 Months in Prison for $4.3 Million Pain and Scar Cream Kickback Scheme Against Military Insurance ProgramRead the Press Release
Orlando, FL – The owner of an Orlando-area pharmacy, who was also a licensed pharmacist, was sentenced today for his role in a kickback scheme involving pain and scar creams that resulted in the payment of approximately $4.3 million in false and fraudulent claims to TRICARE. TRICARE provides coverage for active duty military members and their families, as well as retired veterans.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez, Special Agent in Charge Eric Sporre of the FBI’s Tampa Field Office and Resident Agent in Charge Brooke M. Harris of the U.S. Department of Defense Office of Inspector General (DOD-OIG) Defense Criminal Investigative Service made the announcement.
Larry B. Howard, 53, of Oviedo, was sentenced by U.S. District Judge Paul G. Byron to serve 160 months in prison and ordered to forfeit over $4.3 million as proceeds of the crime. Howard was also ordered to forfeit two properties, worth approximately $340,000, that he purchased with the proceeds of the crime, and two cashier’s checks worth $25,000 each. The judge also ordered Howard to pay $4.3 million in restitution to the federal military health insurance program.
Howard; Nicole R. Bramwell, M.D., 52, of Apopka; and Raymond L. Stone, 57, of Orlando, were convicted after a five-day trial of one count of conspiracy to pay health care kickbacks and paying and receiving kickbacks. Howard was also convicted of two counts of paying health care kickbacks, and Bramwell and Stone were convicted of one count each of receiving health care kickbacks. In addition, Howard was convicted of two counts of money laundering.
According to evidence presented at trial, Howard was the owner of Fertility Pharmacy, located in Oviedo. The evidence showed that Howard paid illegal health care kickbacks to Stone, who in return referred patients to doctors previously selected by Howard. The doctors then prescribed expensive pain and scar creams to the patients, which Howard then billed to TRICARE. The evidence also showed that Howard paid illegal health care kickbacks to Bramwell, who in return wrote prescriptions for the expensive creams. The creams could cost up to $17,000 per bottle. Between October 2014 and May 2015, TRICARE paid Fertility Pharmacy over $4.3 million procured through illegal kickbacks. Bramwell’s sentencing is scheduled for May 9. Stone is scheduled to be sentenced on April 27.
The case was investigated by the DOD-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Senior Litigation Counsel John Michelich and Trial Attorneys Timothy Loper and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Former Senior Trial Attorney Christopher Hunter previously prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pennsylvania Woman Pleads Guilty to Smuggling Drugs into U.S. on Commercial FlightRead the Press Release
BOSTON – A Pennsylvania woman pleaded guilty yesterday in federal court in Boston to smuggling drugs into the United States on a commercial flight from the Dominican Republic.
Natalia Alexander Duran, 22, pleaded guilty to two counts of importation of a controlled substance - heroin and cocaine, and two counts of possession of a controlled substance with the intent to distribute - heroin and cocaine. U.S. District Court Judge Rya W. Zobel scheduled sentencing for June 28, 2018.
On May 30, 2017, Duran arrived at Logan International Airport on a flight from the Dominican Republic. Upon arrival, Duran, a U.S. citizen, was referred for a secondary baggage examination. Duran stated that she needed to use the restroom and was told that she would have to be “pat frisked” before she could do so. Duran was then pat frisked by a female officer, who felt an abnormality in Duran’s groin area. Duran subsequently admitted that she had drugs concealed in her clothing. 41 pellets of suspected cocaine were removed from a bodysuit worn by Duran. Concerned that Duran may have ingested additional pellets of drugs, she was transported to a local hospital and given an x-ray, which revealed numerous pellets inside her abdominal area. While at the hospital, Duran excreted an additional 68 pellets. A combined total of 109 pellets were recovered and tested and determined to be approximately 971 grams of cocaine and approximately 109 grams of heroin.
Duran faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William A. Ferrara, Director of Field Operations, U.S. Customs and Border Protection made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
Pennsylvania Man Sentenced to More Than Four Years for Trafficking in Synthetic MarijuanaRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Thair Zatar (46, East Stroudsburg, Pennsylvania) to four years and three months in federal prison for possessing with the intent to distribute synthetic marijuana, also known as “K2” or “Spice.” He pleaded guilty on August 21, 2017.
According to court documents, in April 2017, Zatar was pulled over for a traffic stop in Baker County, Florida, while driving from Tampa to his home. During a consensual search of his vehicle, authorities discovered that he was transporting 201 kilograms of individual packets of synthetic marijuana, labeled as “potpourri” and “not for human consumption.” Zatar confessed that three weeks prior, he had made another trip from Tampa to Pennsylvania and had transported a smaller quantity of packets. A laboratory analysis revealed that the substance in the packets was a synthetic cannabinoid referred to as AB-FUBINACA, a Schedule I controlled substance.
This case was investigated by the Drug Enforcement Administration and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Pasadena Man Sentenced to 81 Months in Federal Prison for Leading an Organization Engaged in Fraud and Identity TheftRead the Press Release
LOS ANGELES – The lead defendant in a federal case against a sophisticated identity-theft ring that defrauded several victim financial institutions out of millions of dollars was sentenced on Monday to over six years in prison followed by five years of supervised release.
Lei Chen, 51, of Pasadena was sentenced by United States District Judge Michael W. Fitzgerald. Chen was further ordered to pay restitution to eight victim financial institutions – American Express, Bank of America, Barclays, Capital One, Chase Bank, Citigroup, Discovery, and U.S. Bank – in the amount of $2,725,451.96.
Chen pled guilty in 2016 to conspiracy to commit wire fraud and bank fraud and aggravated identity theft. The conviction for aggravated identity theft required the Court to impose a mandatory, consecutive term of 24 months’ imprisonment in addition to the custodial sentence for the fraud conspiracy.
Chen, known by the moniker “Uncle Chen,” was the leader of a large criminal organization that engaged in extensive credit card fraud and identity theft in Los Angeles and Orange Counties. According to court records, as part of their fraud scheme, defendant and his co-conspirators obtained personal identifying information (such as names, dates of birth, and social security numbers) of the victims for the purpose of obtaining credit cards in those identity theft victims’ names. Chen’s subordinates contacted credit agencies and financial institutions to change the victims’ addresses to “drop addresses,” that is, locations controlled by the organization. Co-conspirators working for Chen then applied for credit cards in the names of the victims and picked up the cards once they were delivered to the drop addresses.
In addition, Chen’s organization sent “shoppers” – i.e., impersonators who pretended to be the identity theft victims – to retail stores where they used the fraudulently obtained credit cards to purchase luxury goods. The shoppers’ purchases included Rolex watches, iPhones, Van Cleef & Arpels jewelry, and Chanel purses. Those purchases totaled millions of dollars resulting in millions of dollars in loss to the victim financial institutions that issued the credit cards.
The remaining three defendants charged in this case – Cynthia Li, Hsiang-Chi Yi, and Richard Wang – are scheduled for trial on September 25, 2018.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Terrence P. Mann of the Santa Ana branch office.
Operation Kryptonite: Six Individuals Plead Guilty to Drug ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that multiple defendants entered pleas of guilty today. The defendants were charged in a single indictment on February 14, 2018 as a result of an investigation lead by the Drug Enforcement Administration into the distribution of methamphetamine in and around McAlester. A copy of the full indictment can be found online at https://go.usa.gov/xnefa.
Bethany Lynn Kendall, age 28, of McAlester, Oklahoma; Steven Alan Phifer, age 40, of McAlester, Oklahoma; Dylan Joseph Dempsey, age 25, of Fort Smith, Arkansas; Conway Lee Kindle, age 43, of Stuart, Oklahoma; Dominic Alan Giaudrone, age 38, of Krebs, Oklahoma; and Angel Reanea Henderson, age 41, of Hartshorne, Oklahoma each entered guilty pleas. A sentencing date will be set by the Court after the Federal Probation Office completes their pre-sentencing reports.
Kendall pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment, and up to a $10,000,000.00 fine or both; and to Possession With Intent To Distribute Methamphetamine, in violation of 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, and up to a $10,000,000.00 fine or both.
Phifer pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 5 years imprisonment, and up to a $10,000,000.00 fine or both; and to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years imprisonment, and up to a $5,000,000.00 fine or both.
Dempsey pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment, and up to a $10,000,000.00 fine or both; and to Possession With Intent To Distribute Methamphetamine, in violation of 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, and up to a $10,000,000.00 fine or both.
Kindle pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment, and up to a $10,000,000.00 fine or both; and to Distribution Of Methamphetamine, 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, and up to a $10,000,000.00 fine or both.
Giaudrone pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846, punishable up to 20 years imprisonment, and up to a $1,000,000.00 fine or both.
Henderson pled guilty to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable up to 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The one remaining defendant that is named in the indictment, Dustin Lee Hall, a/k/a Smalls, age 31, of Savanna, Oklahoma, is not in custody and members of the public are urged to contact law enforcement if they come into contact with Hall or know of his whereabouts.
The Drug Conspiracy charges arose from a joint investigation entitled “Kryptonite” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were, the McAlester Police Department, the Seminole Nation Lighthorse Police, the Savanna Police Department, the Pittsburg County Sheriff’s Office, the District 18 Drug and Violent Crimes Task Force, the Oklahoma Bureau of Narcotics, the United States Marshal’s Service, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of presentence investigation reports.
Assistant United States Attorney Kristin Harrington represented the United States.
New York Drug Supplier Sentenced to 18 YearsRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to 18 years in prison for his role as a source of heroin and cocaine to drug distributors in Virginia.
According to court documents, Tyrell Brown, 30, started supplying heroin to members of a heroin drug trafficking organization in Spotsylvania County, Orange, and Fredericksburg, Virginia in 2015. While other sources supplied the organization over the course of the three-year conspiracy, Brown supplied several ounces on a weekly basis until April 17, 2017, when law enforcement agents learned that he was traveling to Virginia with a large amount of cocaine and heroin in order to resupply multiple distributors in the area.
As a result of this information, law enforcement executed a search warrant at the home of one of Brown’s co-conspirators, Sheronda Fox, where Brown, Fox, and a third co-conspirator were preparing large quantities of heroin, cocaine, and the controlled substance known as “molly” for distribution. Additionally, throughout the investigation, law enforcement found evidence that Brown received several Western Union cash payments from his co-conspirators in the Virginia area while Brown continued to reside primarily in New York. However, Brown made trips to Virginia multiple times per week for the express purpose of distributing narcotics. In sentencing Brown, the district judge noted that Brown was strictly in the heroin business as a dealer, not a user attempting to distribute drugs to satiate his own drug addiction.
Sheronda Fox, 26, of Fredericksburg, also was sentenced today to nine years in prison for her role in the drug conspiracy.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. The case was investigated by the Fredericksburg FBI Narcotics Task Force, which includes the DEA, FBI, Virginia State Police, Orange County Sheriff’s Office, Stafford County Sheriff’s Office, Spotsylvania County Sheriff’s Office, and Fredericksburg Police Department. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-104.
Men Sentenced for Conspiracy to Import Heroin from El SalvadorRead the Press Release
ALEXANDRIA, Va. – Two men were sentenced today to over a combined 22 years in prison for their role in a conspiracy to import heroin and cocaine into the United States from El Salvador.
According to court records and evidence presented at trial, Rosemberg Martin Majano, 40, of Lithia Springs, Georgia, and Jose Alejandro Orellana Montalvo, 26, of Woodbridge, were participants in a conspiracy to smuggle more than $400,000 worth of heroin and cocaine into the United States from El Salvador. Majano carried the drugs in his checked luggage on a flight from El Salvador into Washington Dulles International Airport. When Majano arrived at the airport, officers with U.S. Customs and Border Protection discovered the heroin and cocaine concealed within food packaging in his luggage. Majano admitted that he was being paid to deliver the packages to someone in the airport.
In an ensuing surveillance operation, special agents with the Department of Homeland Security, Homeland Security Investigations, identified Orellana Montalvo as the individual who was to pick up the narcotics from Majano. Orellana Montalvo was arrested after he tried to pick up Majano outside of a restaurant in Herndon.
Majano was sentenced to 121 months in prison, and Orellana Montalvo was sentenced to 151 months in prison.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Casey Owen Durst, Director of CBP’s Baltimore Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Thomas W. Traxler and Dennis M. Fitzpatrick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-204.
Maryland Man Sentenced to 20 Years in Prison for Providing Material Support to ISIS and Terrorism FinancingRead the Press Release
Mohamed Elshinawy, 32, of Edgewood, Maryland, was sentenced today to 20 years in prison, to be followed by 15 years of supervised release, for conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS; terrorism financing; and making false statements in connection with a terrorism matter.
Assistant Attorney General for National Security John C. Demers, Acting U.S. Attorney Stephen M. Schenning of the District of Maryland and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office announced the sentence issued by U.S. District Judge Ellen L. Hollander.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about Dec. 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company totaling $8,700 to be used to fund a terrorist attack in the U.S.
In interviews with FBI agents in July 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
Assistant Attorney General Demers and Acting U.S. Attorney Schenning commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark, who prosecuted the case, and the National Security Division’s Counterterrorism Section for its assistance with the prosecution.
Maryland Man Sentenced to 20 Years in Federal Prison for Providing Material Support to Isis and Terrorism FinancingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Mohamed Elshinawy, age 33, of Edgewood, Maryland, to 20 years in prison, followed by 15 years of supervised release, for conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; providing and attempting to provide material support to ISIS; terrorism financing; and making false statements in connection with a terrorism matter.
The sentence was announced by Acting United States Attorney of the District of Maryland Stephen M. Schenning; Assistant Attorney General for National Security John C. Demers; and Special Agent in Charge Gordon Johnson of the FBI’s Baltimore Office.
According to the plea agreement, Elshinawy conspired with others to knowingly provide material support and resources to ISIS, knowing that ISIS was a designated Foreign Terrorist Organization. From February 2015 through about December 11, 2015, in Maryland and elsewhere, Elshinawy conspired with others to provide material support and resources, including personnel, services (including means and methods of communication), and financial services, to ISIS. Elshinawy and his co-conspirators utilized various methods of secret communication in order to conceal their criminal association and activities from law enforcement.
As a part of the conspiracy, Elshinawy expressed his support for an Islamic caliphate and his belief in the legitimacy of ISIS. In addition, he expressed his hope that ISIS would be victorious and its enemies defeated, and discussed his readiness to travel to live in the Islamic State. In various other conversations, Elshinawy pledged his allegiance to ISIS, described himself as its soldier, committed to making violent jihad, and asked that others convey his message of loyalty to ISIS leadership.
Elshinawy also received payments from a foreign company based in the United Kingdom. The payments, which totaled approximately $8,700, were to be used by Elshinawy to fund a terrorist attack in the United States.
In interviews with FBI agents in July 2015, in an effort to conceal and minimize his criminal involvement with ISIS, Elshinawy provided false information regarding the total amount of money he had received from ISIS operatives and claimed his intent was to defraud ISIS of funds. Throughout his interviews, Elshinawy mischaracterized the true nature and extent of his association with ISIS operatives and the support he had provided to ISIS.
Acting United States Attorney Schenning and Assistant Attorney General Demers commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Christine Manuelian and Kenneth Clark, who prosecuted the case, and the National Security Division’s Counterterrorism Section for its assistance with the prosecution.
Man Pleads Guilty to Reentry by an Alien After Removal and Illegal Alien in Possession of a FirearmRead the Press Release
St. Croix, USVI – James Charlery, 53, currently of St. Croix, was sentenced on March 28, 2018, in District Count on the counts of Reentry by an Alien After Removal and Illegal Alien in Possession of a Firearm, United States Attorney Gretchen C.F. Shappert announced.
Chief Judge Wilma A. Lewis sentenced Charlery to fifteen (15) months in prison, followed by one (1) year of supervised release, and ordered Charlery to pay a fine of $500 and a special assessment of $200. Upon the completion of his sentence, Charlery faces deportation, as an immigration detainer has been placed on him by the Department of Homeland Security.
Charlery entered a guilty plea to these charges on December 29, 2017 and admitted that he was an illegal alien who had unlawfully reentered the Territory of the Virgin Islands after his deportation in 1995 to St. Lucia. He also acknowledged that on May 25, 2017, he illegally possessed a loaded firearm, a Smith and Wesson .38 caliber revolver, at the Frontline Bar and Restaurant in Frederiksted.
The case was investigated by the Virgin Islands Police Department and the Department of Homeland Security. The case was prosecuted by Assistant U.S. Attorney Daniel H. Huston.
Lynn Man Sentenced to over 10 Years in Prison for Role in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Lynn man was sentenced yesterday in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone, to customers across the country.
Philip Goodwin, 37, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 130 months in prison and three years of supervised release. In November 2017, Goodwin pleaded guilty to one count of conspiracy to distribute controlled substances, one count of conspiracy to traffic counterfeit drugs, one count of trafficking counterfeit drugs, one count of possession with intent to distribute controlled substances, and one count of money laundering conspiracy.
In April 2017, Goodwin and five others, including Tyler Bauman, a/k/a “musclehead 320,” were arrested and charged with operating a counterfeit steroid operation on the North Shore.
From approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products - made from raw materials purchased overseas - in Goodwin’s home, and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants sold the steroids online to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business located in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
In August 2017, Bauman pleaded guilty to his role in the conspiracy and was sentenced in March 2018 to 10 years in prison.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit prosecuted the case.
Long-Haul Trucker Sentenced to 20 Years in Prison for Production and Transmission of Child PornographyRead the Press Release
On March 26, 2018, a Lake Worth resident was sentenced by Senior United States District Judge Kenneth A. Marra to a total of 20 years in federal prison for producing and transmitting child pornography.
Benjamin Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Kelly Harris, Acting Chief, Boynton Beach Police Department (BBPD), made the announcement.
Kevin Scott Mitchell, 62, of Lake Worth, previously pled guilty to one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e), and one count of transmission of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1). Mitchell was subject to a mandatory minimum term of 15 years in prison.
According to the court record, including factual statements made during the plea hearing, beginning in January 2016, Mitchell had sex with a 16 year old minor at a hotel in Boynton Beach. He took photographs and videos during the sexual encounters, when his trucking route brought him to South Florida. In May 2017, the minor reported the sexual abuse to law enforcement when Mitchell threated to release the videos to the victim’s friends and family. When Mitchell later texted the minor, BBPD undercover detectives responded as the victim. Mitchell then sent pornographic images of the minor to the detective. Mitchell was apprehended several days later in upstate New York and found in possession of digital devices containing pornographic videos of the minor.
Mr. Greenberg commended the investigative efforts of ICE-HSI and BBPD. This case was prosecuted by Assistant U.S. Attorney Greg Schiller.
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.
Long Island Husband and Wife Sentenced to Prison for Bank Fraud and Medicaid FraudRead the Press Release
Earlier today, in federal court in Central Islip, defendants Joseph Atias and Sofia Atias were sentenced by United States District Judge Denis R. Hurley to 40 months’ and 28 months’ imprisonment, respectively, following their March 30, 2017 trial convictions for bank fraud and conspiracy to commit bank fraud in connection with the sale of their real property to Sacred Heart Academy in Hempstead for athletic fields. They were also convicted of Medicaid fraud. As part of their sentences, the defendants were ordered to pay $465,965 in forfeiture and $49,956 in restitution.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Joseph and Sofia Atias committed fraud schemes to try to get out from under mortgage debt and to fraudulently obtain Medicaid funds, essentially flaunting the laws to which we all must adhere,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will make every effort to ensure that those who would manipulate the system are called to account.
“In a clear case of double dipping, the defendants convinced the lending institution of their eligibility to qualify for a short sale on their property, recruited a relative to serve as a straw buyer for the property, and profited from the funds of a subsequent sale of the property,” stated FBI Assistant Director-in-Charge Sweeney. “At the same time they were running this scheme, they were also found to have engaged in significant fraud against the government. May today’s sentencing remind those who exploit government programs and manipulate gaps in the mortgage and banking sectors that they will face the error of their ways.”
The Bank Fraud Scheme
At trial, the government’s evidence established that shortly before the sale of their property adjacent to Sacred Heart Academy for $925,000, the defendants sold the property in a short sale to Bank of America for $480,000 to discharge their mortgage debt. In negotiating the short sale with the bank, the defendants and their co-conspirator attorney concealed Sacred Heart Academy’s pending offer and submitted a fraudulent contract of sale and other false documents representing that they did not have funds to pay off the mortgages in full. As part of the fraudulent short sale, the defendants used a relative as a “straw buyer” of the property to create the appearance of an arms-length sale. Shortly after that sale, the defendant’s straw buyer sold the property to Sacred Heart Academy for approximately half a million dollars in profit.
The Medicaid Fraud Scheme
The government’s evidence at trial established that between 2009 and 2015 the defendants fraudulently obtained Medicaid funds, by concealing their self-employment income and available cash resources, including trust fund monies and the $465,000 in proceeds from the bank fraud scheme.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr., are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is handling matters related to forfeiture.
The Defendants:SOFIA ATIAS
Age: 48 years old
Residence: Great Neck, New YorkJOSEPH ATIAS
Age: 54 years old
Residence: Great Neck, New YorkE.D.N.Y. Docket No. 14-CR-403 (DRH)
Local Minister Sentenced to Ten Years for Federal Drug Trafficking and Firearms OffensesRead the Press Release
SAVANNAH, GA: United States Attorney Bobby L. Christine announces the sentence of local minister Cedric Manior (44) of Rincon, Georgia, who was sentenced today to 10 years of incarceration by United States District Judge Lisa Godbey Wood. Manior was convicted last August of Conspiracy to Possess with Intent to Distribute Cocaine and Crack Cocaine and to being a Felon in Possession of Firearms.
Evidence presented in court filings and at sentencing revealed that Cedric Manior, also known as “Preacher Man,” a minister of New Beginnings International Outreach Ministry, was involved in a major drug trafficking organization that sold cocaine and crack cocaine in the Southern District of Georgia and elsewhere. Manior stored and sold drugs from his home located in Rincon, Georgia. Manior also directed his adult son, Cameron Edwards, to sell illegal drugs on his behalf.
In January 2017, Chatham County Narcotics Team (CNT) agents, along with the Savannah Chatham SWAT team executed a search warrant at Manior’s residence in Rincon, Georgia. Agents seized marijuana, methamphetamine, prescription medication, drug scales, drug manufacturing and distribution tools, heat-sealing machine, baggies, beakers, body armor, cash, twenty (20) firearms, AR-style magazines and hundreds of rounds of ammunition. On his bed, next to his bible, agents found a loaded semi-automatic pistol. Near his church robe, agents found a Tec 9, assault semi-automatic style pistol with an extended magazine that is capable of holding over 15 rounds of ammunition. Drug trafficking supplies and firearms were located throughout the residence. Many of the weapons were stolen. Manior was prohibited from possessing firearms and ammunition because he was previously convicted of six (6) prior felony convictions for felonies committed on six separated dates.
United States Attorney Bobby L. Christine states: “Cedric Manior received a message from the United States government that nobody is above the law. Our office is committed to working with local and federal law enforcement to dismantle criminal organizations and to sentence drug dealers to real time in prison.”
Upon release from federal prison, Manior will be on court supervision for three years. There is no parole in the federal system.
Manior is one of over twenty (20) defendants who have been convicted in this Organized Crime Drug Enforcement Task Force (OCDETF) Operation. In this investigation, agents have seized kilograms of cocaine, pounds of marijuana, dozens of firearms, and hundreds of thousands of dollars. This case was investigated by the Drug Enforcement Administration, the Counter Narcotics Team (CNT), the Savannah Police Department, Garden City Police Department, Effingham Sheriff’s Office, with assistance from the United States Marshals Service. The case was prosecuted by Assistant United States Attorney E. Greg Gilluly, Jr. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Laurel Man Sentenced to Federal Prison for MethamphetamineRead the Press Release
Gulfport, Miss. – Joshua Durwin Parish, 37, of Laurel, was sentenced yesterday by U.S. District Judge Keith Starrett to 63 months in federal prison followed by five years of supervised release for possession with intent to distribute 5 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith. Parish was also ordered to pay a $5,000 fine.
A confidential source called Parish and discussed purchasing methamphetamine. On November 21, 2014, Parish met with the confidential source and sold approximately $850 worth of methamphetamine. The telephone calls and meeting were videoed and audio recorded. DEA agents tested the methamphetamine and it had a 98.7% purity and weighed 25.8 grams. Parish pled guilty on December 19, 2017, to possessing with intent to distribute the methamphetamine.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Jones County Sheriff’s Department. It was prosecuted by former Assistant U.S. Attorney Jerry Rushing and current Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Last of Nearly Two Dozen Defendants Plead Guilty for Roles in Drug ConspiracyRead the Press Release
BLUEFIELD, W.Va. -- Two men pled guilty today for their roles in a drug trafficking conspiracy, announced United States Attorney Mike Stuart. Derrick Lamar Staples, 41, of Charleston, pled guilty to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin. Shaun L. Givens, 40, of Beckley, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. Staples and Givens are two of 23 defendants indicted in June 2017 after a comprehensive investigation of drug trafficking in Southern West Virginia. U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“This investigation dismantled an entire drug trafficking organization responsible for peddling a smorgasbord of dangerous drugs,” said United States Attorney Mike Stuart. “Staples and Givens will soon be joining their fellow drug thugs in federal prison,” continued Stuart. “I want to commend my team and our principal partners including the FBI and Raleigh County Task Force as well as other critical partners who assisted throughout this effort. Their efforts saved lives and our streets are safer today as a result of their efforts.”
Derrick Staples, admitted that between August 2016 and June 28, 2017, he took part in a drug trafficking conspiracy in Raleigh County with multiple participants involving the distribution of cocaine and heroin. Staples admitted to working with James Rodney Staples, Dominic Copney and others to distribute the controlled substances. Staples admitted that other members of the drug trafficking organization would come to his residence in Charleston to pick up materials used to “cut” or prepare heroin for distribution. He also admitted that on June 28, 2017, law enforcement officers executed a search warrant at his residence in Kanawha County. During the search, agents found 706.99 grams of a mixture containing heroin and fentanyl, 34.4 grams of cocaine, a kilo press used to prepare drugs for distribution and two firearms. Staples admitted it was his intent to distribute the controlled substances found during the search. Law enforcement officers also seized over $70,000 in cash, jewelry, a car, and real estate that Staples admitted were drug proceeds or purchased with drug proceeds. As part of the plea agreement Staples has agreed to the forfeiture of these items.
Shaun Givens admitted that between August 2016 and June 28, 2017, he too participated in a drug trafficking organization that distributed cocaine and heroin in and around Raleigh County. Givens admitted that during this time period, he received in excess of 500 grams of cocaine from other members of the drug trafficking organization that he distributed in the Southern District of West Virginia. Givens also admitted that on June 28, 2017, police officers executed a search warrant at his residence in Beckley. During the execution of the search warrant, officers found over seven grams of a mixture containing heroin and fentanyl, a small amount of cocaine base, seven firearms, and $1,127 in cash that defendant admitted were the proceeds of his illegal drug trafficking.
Staples faces a minimum of 10 years and up to life in federal prison when he is sentenced on July 24, 2018. Givens faces at least five years and up to 40 years in federal prison when they are sentenced on July 25, 2018.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Two defendants, Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, have been sentenced by United States District Judge Irene Berger. Cheyenne Fragale received a sentence of 12 years in federal prison while Macon Fragale will serve 16 years and 8 months. Velarian Carter, of Beckley, faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on April 17, 2018. Dominic Copney, of Beckley, faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on April 24, 2018. Donald Scalise, of Montgomery, faces up to 20 years in federal prison when he is sentenced on April 25, 2018. Tiffany Ramsey, of Boomer, faces at least five years and up to 40 years in federal prison when she is sentenced on May 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on May 29, 2018. Rory White, of Montgomery, faces at least five years and up to 40 years in federal prison when he is sentenced on June 6, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on May 29, 2018.
Shaun Jones has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on May 29, 2018.
Corey Larkin previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on June 5, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on May 30, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on May 30, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. Charles Hill, aka “Unc,” of Beckley, entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, and a quantity of cocaine. They both face at least five years and up to 40 years in federal prison when they are sentenced on June 5, 2018.
Jonathan O. Brockman of Kimberly, Fayette County, previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of fentanyl, a quantity of oxycodone, and a quantity of marijuana for remuneration. David Shaun Coleman of Fayette County entered his plea to conspiracy to distribute more than 100 grams of heroin and a quantity of oxycodone. Rashaun Carter, aka “Show,” of Raleigh County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, and a quantity of cocaine, and a quantity of fentanyl. Each of these defendants face at least five years and up to 40 years in federal prison when they are sentenced on July 24, 2018.
Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The Staples and Givens plea hearings were held before Senior United States District Judge David A. Faber.
These cases are 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. 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
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Lake Worth Man Indicted on Federal Charges for Sex and Labor TraffickingRead the Press Release
A Lake Worth man has been charged federally with sex trafficking a minor and adults, and labor trafficking.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney of Palm Beach County, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO), made the announcement.
Alston Orlando Leroy Williams, 42, of Lake Worth, who has been living between Broward and Palm Beach Counties, was charged by indictment with one count of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion, in violation of Title 18, United State Code, Section 1591(a)(1) and (b)(2), and one count of forced labor trafficking, in violation of Title 18, United States Code, Section 1589(a). If convicted Williams faces a statutory maximum term of life in prison. Williams is currently being detained without bond pending further court proceedings in U.S. District Court in West Palm Beach.
According to court records, from 2008 through 2017, Williams allegedly trafficked multiple women, including one as young as 16 years old, for sex throughout south Florida. Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sex for money. Williams allegedly used force, violence and coercion to traffic the women and kept all of the money they earned. He was arrested on November 29, 2017 on related state charges, before being charged federally.
Mr. Greenberg commended the investigatory efforts of the FBI and PBSO, and thanked the Palm Beach County Human Trafficking Task Force and the Palm Beach County State Attorney’s Office for their commitment to combatting these offenses. This case is being prosecuted by Assistant United States Attorney Gregory Schiller and Special Assistant United States Attorney Justin Hoover.
An indictment is merely an accusation and a 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.
Laconia Man Sentenced to 57 Months for Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Timothy Raxter, 53, of Laconia, was sentenced in federal court to serve 57 months in prison for methamphetamine trafficking and firearm offenses, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 23, 2017, Laconia Police executed a search warrant on Raxter’s vehicle, seizing a .40 caliber pistol and approximately 10 grams of “ice” methamphetamine. As a previously convicted felon, Raxter is prohibited from possessing firearms.
Raxter pleaded guilty on November 7, 2017, to possessing methamphetamine with intent to distribute and being a felon in possession of a firearm.
“Drugs and guns are a potentially lethal combination,” said U.S. Attorney Murray. “The U.S. Attorney’s Office works closely with our law enforcement partners to target drug traffickers, particularly those who use firearms or violence to further their unlawful activities. Those who commit these crimes will be prosecuted aggressively in order to protect the safety of our community.”
"As a convicted felon, Mr. Raxter should have known better than to possess a firearm and engage in drug trafficking. It's a dangerous combination, and the FBI New Hampshire Safe Streets Gang Task Force will continue to work with our law enforcement partners to identify, detect, and disrupt those who try to poison our neighborhoods and threaten them with violence," said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.
This matter was investigated by the police departments of Gilford and Laconia in conjunction with the FBI New Hampshire Safe Streets Gang Task Force. The Task Force is comprised of the FBI, the New Hampshire State Police, New Hampshire Probation and Parole, and the police departments of Hudson, Manchester, and Nashua. The case was prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Kutztown Man Charged with Sex Trafficking A Minor and Drug TraffickingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Willie James Johnson, age 57, of Kutztown, Pennsylvania, was indicted on March 28, 2018, by a federal grand jury for sex trafficking of a minor and drug trafficking.
According to United States Attorney David J. Freed, the indictment alleges that from September 2014 to October 2015, Johnson trafficked a minor in York County for commercial sex acts. The indictment also alleges that between January 2013 and October 2017, Johnson distributed and possessed with the intent to distribute heroin in York County.
This matter was investigated by the Federal Bureau of Investigation and the Northern York Regional Police Department. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Kilogram Level Cocaine Dealer Pleads GuiltyRead the Press Release
NEWPORT NEWS, Va. – A Fairfax County man pleaded guilty yesterday to conspiracy to possess with intent to distribute more than five kilograms of cocaine.
According to court documents, Roscoe Simpson, 47, was arrested on July 21, 2016 after being found in possession of three-and-a-half kilograms of cocaine and $65,000 in United States currency. Following his arrest, Simpson admitted to the distribution of approximately fifty kilograms of cocaine.
Simpson faces a mandatory minimum sentence of ten years and a maximum sentence of life in prison when sentenced on June 27, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia; and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-60.
Isleta Pueblo Man Sentenced to Prison for Federal Robbery ConvictionRead the Press Release
ALBUQUERQUE – Gilbert J. Zuni, 31, an enrolled member of the Isleta Pueblo who resides in Bosque Farms, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 33 months of imprisonment for his conviction on a robbery charge. Zuni will be on supervised release for three years after completing his prison sentence.
Zuni was charged with robbery in a felony information filed on Dec. 19, 2017. The information charged that Zuni committed the offense by unlawfully taking a purse and its contents on July 8, 2016, on Laguna Pueblo in Bernalillo County, N.M.
Zuni pled guilty to the felony information on Dec. 19, 2017, and admitted that on July 8, 2016, while at the Route 66 Casino on the Laguna Pueblo, he followed the victim to her vehicle, pushed the victim down, retrieved her purse from the floorboard of her vehicle, and fled in a vehicle driven by another person. Zuni admitted the purse contained checks and credit cards, and that the victim reported a loss of approximately $2,462.47.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Illegal Alien Sentenced for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Diego Morales-Ramirez, 25, a citizen of Mexico and in the United States illegally, was sentenced Wednesday before U.S. District Judge Ed Kinkeade for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Morales-Ramirez was sentenced to 120 months in federal prison following his guilty plea in August 2017 to one count of possession with intent to distribute a schedule II controlled substance, said substance being 50 grams or more of methamphetamine. Morales-Ramirez will be deported following completion of his prison term. He has been in custody since his arrest in March 2017.
According to documents filed in the case, on February 3, 2017, Morales-Ramirez was stopped by a police officer for failing to signal while changing lanes. During the stop Morales-Ramirez was extremely nervous and a K-9 alerted to the presence of a controlled substance inside the vehicle. Also during the stop it was learned that Morales-Ramirez was inside the United States illegally and that he had been previously deported. Morales-Ramirez was advised he was going to be detained for being illegally present in the United States and officers offered to return his vehicle and some of his personal items to the apartment he just came from.
Upon arrival Morales-Ramirez gave officers consent to search his apartment. Before officers entered the apartment Morales-Ramirez said there was a gray bin on the right side with “stuff” in it. Upon opening the gray bin officers found several bags containing a crystal like substance that field tested positive for 10.97 kilograms of methamphetamine.
The offices of Homeland Security Investigations and Enforcement and Removal Operations, and Task Force Officers from the Rowlett and Fate Police Departments investigated and assisted in the case. Assistant U.S. Attorney George Leal prosecuted.
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Hartford Gang Member Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RUBEN TORRES, also known as “Rube,” “Ru,” and “T,” 26, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 78 months of imprisonment, followed by four years of supervised release, for distributing heroin and crack cocaine in Hartford.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
The investigation revealed that TORRES, an OSK member, sold heroin and crack to drug users and other distributors.
On October 8, 2016, investigators intercepted TORRES on others on calls discussing firearms and planning a violent act. Investigators immediately notified Hartford Police that violence might be imminent in the Orange and Cherry Street area, but before police could respond, at approximately 10:12 p.m., a man was chased and shot multiple times in front of 7-9 Cherry Street. The victim was located in the backyard of 51 Orange Street. He was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. Minutes after the shooting, TORRES and others referenced the shooting on the wiretap.
On October 31, 2016, TORRES and another individual were intercepted discussing a .40 caliber firearm. On January 26, 2017, TORRES sold 600 bags of heroin, approximately one-half ounce of crack cocaine, and 34 rounds of .40 caliber ammunition to an undercover officer.
On February 10, 2017, investigators arrested TORRES and several of his codefendants. On that date, a search of TORRES’s residence revealed approximately 260 bags of heroin, drug paraphernalia, assorted ammunition, a gun holster, a gun cleaner kit and $1,379 in cash.
TORRES has been detained since his arrest. On November 8, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
Sixteen individuals were charged as a result of the investigation.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gulfport Man Pleads Guilty to Making a False Statement When Purchasing a FirearmRead the Press Release
Gulfport, Miss. – William M. Broomfield, age 29, of Gulfport, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr. to making a false statement in connection with the purchase 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. Broomfield is scheduled to be sentenced by Judge Guirola on June 27, 2018, at 1:30 p.m., and faces a maximum sentence of 10 years in federal prison, plus 3 years of supervised release and up to a $250,000 fine.
On June 15, 2016, William Broomfield purchased two firearms at Cook’s Gun Shop, in D’Iberville, Mississippi, for Tony D. Crawford, who was a local area resident. Broomfield purchased a Ruger Model American, 9mm pistol and a Romarm/Cugir, Model Draco, 7.62 caliber pistol for Crawford. Broomfield also purchased three high capacity magazines and distinctive "Red Army" ammunition for Crawford.
While Broomfield gave the appearance that he was purchasing the firearms for himself, he actually purchased the firearm for Crawford, in what is commonly known as a "straw purchase." In purchasing the firearms, Broomfield knowingly provided a false and fictitious written statement to the federal firearms licensee. Broomfield knew his false statement on the ATF Form 4473 contained information required to be kept in official records and that the gun shop could not complete the transaction if it was known that the firearm actually was being purchased for someone else.
Ultimately, the firearms, high capacity magazines and ammunition were found by law enforcement officials and were shown to have been in the possession of Crawford, who is a convicted felon. Crawford was previously prosecuted by the U.S. Attorney’s Office and pled guilty to illegal possession of a firearm by a convicted felon. On March 8, 2018, Crawford was sentenced to nearly 9 years in federal prison, followed by 3 years of supervised release. Crawford also was sentenced to pay a $5,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrison County Sheriff’s Department, along with the City of Biloxi, City of D’Iberville, City of Gulfport and City of Pass Christian Police Departments. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Greer Man Sentenced to 120 months for Possession of Child Pornography Involving Prepubescent MinorsRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated today that Leslie Earle Alverson, age 50, of Greer, South Carolina, was recently sentenced in federal court in Greenville, South Carolina, for Possession of Child Pornography involving Prepubescent Minors, a violation of 18 U.S.C. § 2252A(a)(5)(B). United States District Judge Bruce Howe Hendricks sentenced Alverson to 120 months (10 years) and supervised release for life.
Evidence presented at the change of plea hearing established that between January 23, 2015 and February 24, 2015, Alverson spent substantial hours on a child pornography website. Law enforcement agents traced the activity to internet protocol (IP) addresses associated with Alverson. Agents executed a search warrant at Alverson’s residence and various computer hardware belonging to Alverson that contained thousands of images of child pornography. Alverson admitted that he possessed such child pornography. In total, law enforcement seized over 13,000 qualifying images. These images and videos included adults engaged in sexual acts with prepubescent minors as well as sadistic and masochistic conduct.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney D. Josev Brewer of the Greenville office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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