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28 March 2018
New Jersey residents arrested in Lake Charles plead guilty to possession of 4 pounds of methamphetamine packaged as Mexican candyRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that two defendants from New Jersey who were arrested during a Lake Charles traffic stop pleaded guilty last week to possession of 4 pounds of methamphetamine packaged as Mexican candy.
Javier Munoz, 51, of Vineland, New Jersey, and Beljavier Rodriguez, 26, of Millville, New Jersey, pleaded guilty March 21 before U.S. District Judge Jay C. Zainey to one count of possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine. According to a joint factual stipulation in the record of the guilty plea, the defendants were traveling eastbound on Interstate 10 on September 9, 2016. A Lake Charles Police officer pulled over the vehicle and later searched it. The officer found a secret compartment underneath the car that contained two bags that appeared to be professionally printed bags of Mexican candy. Within the bags were 21 individually wrapped bags containing methamphetamine that weighed a total of about 4 pounds.
Munoz faces 10 years to life in prison, at least five years of supervised release and a $10 million fine. Rodriguez faces up to five years in prison, three years of supervised release and a $250,000 fine. The court set sentencing for June 11, 2018.
Homeland Security Investigations and the Lake Charles Police Department as part of the Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
New Hampshire Man Convicted of Social Security FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that James Robinson, 60, of Concord, New Hampshire, was convicted yesterday following a two-day jury trial in U.S. District Court of fraudulently obtaining $45,473 in Supplemental Security Income (SSI) benefits and making false statements to a government agency. The jury returned not guilty verdicts on two other charges.
The evidence at trial revealed that Robinson received SSI benefits, which are paid to people with limited income who are blind, disabled or elderly. Between 2008 and 2013, Robinson falsely represented to the Social Security Administration (SSA) that he was living alone in Cornish, Maine, and was not receiving help or money from any person. In fact, he was living with his wife in Concord, New Hampshire, who was providing him with financial assistance. If Robinson had provided truthful information to SSA, he would have been ineligible for SSI benefits. The evidence further revealed that he made false statements concerning these facts in a 2015 interview with a Special Agent of SSA, Office of the Inspector General.
Robinson faces up to five years in prison, a fine of up to $250,000, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by SSA, Office of the Inspector General, as well as the Maine Department of Health & Human Services, Fraud Investigation & Recovery Unit.
New Castle Felon Indicted for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - One resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count indictment named Michael Schmidt, 21, of New Castle, Pennsylvania, as the sole defendant.
According to the indictment, on or about October 12, 2017, Schmidt possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance, and a quantity of cocaine, a Schedule II controlled substance. Schmidt also possessed a firearm in furtherance of said drug trafficking crime. Additionally, on or about October 12, 2017, Schmidt, a convicted felon, did knowingly and unlawfully possess a Taurus, Model PT738, .380 caliber pistol and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than 5 years and up to life in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Lawrence County Drug Task Force and the New Castle Police Department conducted the investigation leading to the indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Muskegon Man Sentenced to 120 Months in Federal Prison for Drug and Firearm OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN – Jim Lee Walker III, 26, of Muskegon, Michigan, was sentenced to 120 months in federal prison for drug and firearm offenses, U.S. Attorney Andrew Byerly Birge announced today. In addition to the prison term, Chief U.S. District Judge Robert J. Jonker imposed a 3-year term of supervised release that will commence once Walker is released from imprisonment.
Walker pled guilty on November 1, 2017, to possessing a controlled substance with intent to distribute and using and carrying a firearm during and in relation to a drug trafficking crime. Walker came to the attention of the Muskegon Police Department on August 1, 2017, when officers encountered him sitting in a vehicle packaging marijuana for sale. Walker was armed with a stolen, loaded 9mm handgun and was in possession of a sizable stash of illegal drugs, including heroin, cocaine, and marijuana. Walker fled from police but was quickly apprehended. Walker had previously been convicted of three felonies.
At sentencing, the U.S. Attorney’s Office underscored the need to protect the Muskegon community from Walker’s ongoing criminal activity. In its sentencing memorandum, the U.S. Attorney’s Office contended that "the seriousness and dangerousness of defendant’s conduct is amplified by his history of violence and drug trafficking." Walker has convictions in 2011 for delivery/manufacture of marijuana and assaulting a police officer. Then in 2013, while he was on probation for these offenses, he approached an occupied home carrying a handgun, confronted a resident, and fired four shots into the front of the home, which resulted in his being convicted of assault with a dangerous weapon. In 2016, while he was on parole, Walker was again involved in a shooting incident. Shortly after his release from prison in June 2017, he started using cocaine. A month later, on July 20, 2017, he pointed a 9mm handgun at the head of a man seated in an automobile, and shortly thereafter he committed the crimes that brought him before the federal court for sentencing.
Birge stated that, "Walker’s sentence sends a clear message that drug trafficking and firearm offenses will be not be tolerated. My office and our federal, state, and local law enforcement partners will aggressively prosecute these cases to help make Muskegon a safer place."
The charges in this case are the result of a joint investigation by the Muskegon City Police Department, the Michigan State Police, and the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Sean M. Lewis prosecuted the case. The U.S. Attorney's Office, the Muskegon County Prosecutor's Office, and federal, state, and local law enforcement are working closely together to combat violent crime and drug trafficking in the Muskegon area.
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Multiple Defendants Sentenced for Drug Trafficking and Violent CrimesRead the Press Release
OXFORD – A Tupelo woman, the final defendant in a multi-defendant conspiracy, has been sentenced to 205 months in federal prison resulting from her role in a methamphetamine (ice) distribution conspiracy in the Northern District of Mississippi. The defendant, Judy Harmon, was also ordered to forfeit thousands of dollars in drug trafficking proceeds. Harmon was convicted after a week-long jury trial in United States District Court in September 2017. Chief Judge Sharion Aycock sentenced her for her crimes in United States District Court Wednesday morning.
The investigation and prosecution of this international drug trafficking organization responsible for distributing more than 120 pounds of methamphetamine, obtained from Mexico and transported through Southern California to North Mississippi, is the result of a joint investigation between the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Bureau of Narcotics, North Mississippi Narcotics Unit and the U.S. Attorney’s Office. The investigation involved numerous search warrants, arrests, and convictions resulting in the seizure of firearms, drugs and property. In all, ten defendants have been sentenced in federal court for their roles in the drug trafficking conspiracy.
William C. Lamar, U.S. Attorney for the Northern District of Mississippi, Joseph Frank, Supervisory Special Agent for the Oxford ATF Office, Warner Benson, Resident Agent in Charge of the Oxford Office of the DEA, and Phillip Robertson, Major, Mississippi Bureau of Narcotics made the announcement on Wednesday.
Following the sentencing, US Attorney Lamar affirmed the commitment of his office to the aggressive prosecution of drug trafficking organizations operating in the Northern District of Mississippi. “As a part of our Project Safe Neighborhoods Initiative and in conjunction with the Organized Crime Drug Enforcement Task Force, this office will continue to work hand-in-hand with our state and local partners and use all available resources to protect our communities from Trans-National Drug Organizations, like the one dismantled in this case, who threaten the well-being of our citizens as they seek illegitimate profits through violence and drug trafficking,” Lamar stated.
Nine other defendants were also convicted and sentenced as a result of the investigation
- Rudy Flores pleaded guilty in January of 2017 to one count of conspiracy to distribute methamphetamine and one count of conspiracy to discharge a firearm during a drug trafficking crime. Chief U.S. District Court Judge Sharion Aycock sentenced Flores to a total of 175 months imprisonment, followed by 3 years of supervised release.
- Fernando Manguilla-Paez of Mexico pleaded guilty in February of 2017 to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm during a drug trafficking crime. Judge Aycock ordered Manguilla-Paez to serve a total of 157 months in custody.
- Methamphetamine supplier, Ricardo Aguilar Gonzalez of San Diego, California, pleaded guilty in February of 2017 to one count of conspiracy to distribute methamphetamine and one count of conspiracy to commit interstate racketeering. Judge Aycock ordered Gonzalez to serve a total of 168 months in custody.
- Thomas Scruggs of Tupelo, Mississippi, pleaded guilty in June of 2017 to one count of conspiracy to distribute methamphetamine. Judge Aycock sentenced Scruggs as a career offender and ordered Scruggs to serve a total of 240 months in custody, followed by 3 years of supervised release.
- Jerry Zamora, a/k/a “Gerardo Lima” of Mexico pleaded guilty in June of 2017 to one count of conspiracy to distribute methamphetamine, one count of possession of firearms by an illegal alien and one count of conspiracy to commit interstate racketeering. Judge Aycock ordered Zamora to serve 200 months in custody.
- Abigail Lima of Tupelo, Mississippi, pleaded guilty in May of 2017 to one count of conspiracy to distribute methamphetamine and one count of conspiracy to commit interstate racketeering. Judge Aycock ordered Lima to serve 31 months in custody, followed by 3 years of supervised release.
- Manual Sandiago of Mexico pleaded guilty in May of 2017 to one count of conspiracy to distribute methamphetamine and one count of possession of firearms by an illegal alien. Judge Aycock ordered Sandiago to serve 101 months in custody.
- David Espiricueta of Houston, Mississippi pleaded guilty in April 2017 to conspiracy to distribute methamphetamine and one count of possession of a firearm during a drug trafficking crime. Judge Aycock sentenced Espiricueta to 150 months in custody, followed by 3 years of supervised release.
- Raul Cruz-Lopez of Tupelo, Mississippi, pleaded guilty in February of 2017 to one count of conspiracy to distribute methamphetamine and one count of possession of a firearm by an illegal alien. Judge Aycock ordered Cruz-Lopez to serve 70 months in custody.
These charges were the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a federal multi-agency, multi-jurisdictional task force that provides supplemental funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations, and pursuant to the Project Safe Neighborhoods anti-violent crime initiative. Several agencies were crucial to this investigation, including the DEA, ATF, the U.S. Marshals Service, Mississippi Bureau of Narcotics, North East Mississippi Narcotics Unit, Tupelo Police Department, Mississippi Highway Patrol, and the Mississippi National Guard Counter-Drug Unit.
The case was prosecuted by Assistant U.S. Attorneys Chad M. Doleac and Sam Wright.
Moreau Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
ALBANY, NEW YORK – Jonathon Rule, age 28, of Moreau, New York, was arraigned yesterday on an indictment charging him with failing to register as a sex offender.
The announcement was made by United States Attorney Grant C. Jaquith and David L. McNulty, United States Marshal for the Northern District of New York.
Rule appeared yesterday before United States Magistrate Judge Daniel J. Stewart, and was ordered detained pending trial.
The indictment alleges that Rule moved to Moreau from Detroit, Michigan, in January 2016, and lived there for approximately 2 years without registering as a sex offender. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Rule faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Marshals Service Sex Offender Investigation Branch and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Montana Men Sentenced to Prison for Meth OffenseRead the Press Release
MISSOULA - Christopher Cole, a 46-year-old resident of Billings, and Nathan Hale, A 39-year-old resident of Frenchtown, were sentenced today to 72 months and 120 months in prison respectively to be followed by 5 years of supervised release. Both pleaded guilty to conspiracy to distribute methamphetamine. U.S. District Judge Donald W. Molloy handed down the sentence. The methamphetamine recovered from Cole was more than 98% pure and contained 1352 doses.
Between December of 2013 and March of 2015, Cole and Hale conspired to distribute several pounds of methamphetamine throughout the Flathead Valley. They were obtaining this methamphetamine from out of state suppliers who were believed to be directly related to a Mexican Cartel.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Missouri Man Pleads Guilty to Hate Crimes for Making Threats Against Augusta MosqueRead the Press Release
On March 26, 2018, Preston Q. Howard, 49, of Wright City, Missouri, entered a guilty plea before Chief United States District Court Judge J. Randal Hall, to three charges of Obstruction of Persons in the Free Exercise of Religious Beliefs, in violation of 18 U.S.C. § 247(a)(2). He faces up to 20 years in prison without the possibility of parole for each offense, and is subject to a sentencing enhancement because he chose his victims based on their religion, classifying his actions as hate crimes.
According to information presented at the March 26 hearing, between June 22, 2017 and August 8, 2017, Howard made numerous telephone calls to the Islamic Society of Augusta, during which he threatened to “kill,” “bomb,” “shoot,” “behead,” “slaughter,” “execute,” “light on fire,” and “murder” members of the mosque, to “hunt down” and “zone in” on Muslims, and to “blow up the mosque.” At the hearing, Howard admitted committing these acts and obstructing or attempting to obstruct the mosque members’ free exercise of their religious beliefs. Howard remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
“All people, regardless of where they worship or which religion they belong to, are entitled to live free from the threat of violence and discrimination,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Howard’s threatening and hateful calls were criminal and unlawful. The Department of Justice will continue to hold anyone who commits hate crimes accountable under the law.”
“Those who perpetrate hate crimes by making abhorrent and venomous threats against members of our community in violation of federal law will be held accountable! We continue to work with our law enforcement partners to identify and bring to justice those who terrorize our citizens,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia
“Not only did this defendant violate the mosque members’ right to exercise their religious beliefs, his threats caused them to live in fear for their safety and lives,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “At the FBI, we swear an oath to protect our citizens and uphold the Constitution, and violating the right to practice one’s faith, will never be tolerated.”
The FBI Atlanta Field Division investigated the case. Assistant United States Attorney Nancy Greenwood is prosecuting the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Eliseo Mario Angel-Roblero, age 36, and a citizen of Mexico, was sentenced today to time served (27 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Angel-Roblero, a citizen of Mexico, admitted that he was removed from the United States to Mexico on July 8, 2008. On March 1, 2018, ICE Officers arrested Angel-Roblero in Troy, New York. Angel-Roblero was also previously removed from the United States to Mexico on June 5, 2008.
Angel-Roblero was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Pedro Rivera Manton, age 45, and a citizen of Mexico, was sentenced today to time served (42 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Rivera Manton, a citizen of Mexico, admitted that he was removed from the United States to Mexico on February 19, 2011. On February 13, 2018, an ICE Officer arrested Rivera Manton in Clifton Park, New York. Rivera Manton was also removed from the United States to Mexico on February 13, 2011, November 24, 2010, October 1, 2008, and September 25, 2008, for a total of 5 removals.
Rivera Manton was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Menominee Man Indicted for Armed Assault on Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 27, 2018, a federal grand jury returned a one-count indictment against a man allegedly involved in an armed assault on the Menominee Indian Reservation. Shawn T. Sanapaw (age: 34) of Keshena, was charged with Assault with a Dangerous Weapon in violation of Title 18 United States Code 113(a) (3). Sanapaw faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on about September 29, 2017, Sanapaw assaulted another person with a firearm. The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Mendocino County Woman Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. —Monica Merlin Morales, 26, of Point Arena, pleaded guilty today to sex trafficking of a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, Morales and co-defendant Tion Makeise Foster, also of Point Arena, transported a 16-year-old girl to various places in the Eastern District of California and the San Francisco Bay Area in August 2016 so that she could engage in commercial sex acts for their financial benefit. Court documents indicate that Morales and Foster picked up the victim in her hometown after meeting her online. They bought her lingerie, took photos of her, and posted the photos in online prostitution advertisements. The victim did several “dates” during the week she was with the defendants. Morales and Foster ultimately returned to her hometown, but both they subsequently conspired to traffic the victim again in November and December that same year.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
Foster pleaded guilty to sex trafficking of a minor on December 13, 2017, and he is scheduled to be sentenced on June 13, 2018.
Morales is scheduled to be sentenced by Judge Kimberly J. Mueller on June 20, 2018. Morales faces a minimum statutory sentence of 10 years in prison and a maximum statutory penalty of up to life, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
McKeesport Woman Indicted on Social Security Fraud ChargesRead the Press Release
PITTSBURGH, PA – A McKeesport, Pennsylvania resident has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, United States Attorney Scott W. Brady announced today.
The two-count indictment named Kristin Lucas, aka Kristin Hope Iarrusso, age 44, as the sole defendant.
According to the indictment, between November 2012 and October 2014, Lucas received and converted approximately $19,289.00 in Supplemental Security Income benefits to which she knew she was not entitled. Additionally, on or about April 10, 2013, Lucas knowingly and willfully made a false statement material to her right to receive Supplemental Security Income benefits, by falsely stating that she had used $8,400 in Supplemental Security Income benefits paid to her from March 1, 2012 to February 28, 2013 for the care and support of a minor child.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maui Man Sentenced for Theft from U.S. Department of Veteran's AffairsRead the Press Release
HONOLULU – United States District Court Judge J. Michael Seabright sentenced Cody Joslin, age 32, to 18 months in prison today for theft of funds from the U.S. Department of Veteran’s Affairs (the
“VA”). Joslin pleaded guilty on October 24, 2017, to receiving VA benefits to which he was not entitled by falsely claiming that he suffered from combat-related injuries and trauma.“The VA provides valuable services to the men and women who serve this country, but like all government agencies, it is susceptible to abuse by dishonest people,” said Kenji Price, United
States Attorney for the District of Hawaii. “Our office will continue to investigate and prosecute to the fullest extent of the law those who use deception to obtain vital resources that should rightfully go to veterans who are truly in need.”“This conviction demonstrates the VA Office of Inspector General’s unwavering commitment to protect the programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge James Wahleithner, VA Office of Inspector General, Criminal
Investigations Division.According to court documents and information presented in court, Joslin was in the U.S. Army for approximately nine months, and never served in a combat zone or overseas.
Nevertheless, Joslin submitted paperwork to the VA claiming that he suffered from Post- Traumatic
Stress Disorder and tinnitus as a result of multiple combat tours in Iraq and Afghanistan. To support these claims, he fabricated stories about engaging in active combat, and about witnessing combat-related deaths of friends, and injuries from rocket propelled grenades (RPGs). Joslin also submitted fake military certifications purporting to show that he received certain combat awards.
He purchased these certifications online from a veteran who had been previously convicted for possession and sale of counterfeit U.S. documents. As a result of these false claims, Joslin received over $48,000 in VA disability benefits to which he was not entitled.At today’s sentencing, Judge Seabright commented that Joslin had engaged in a “gross abuse” of the
VA system by claiming he was a “war hero” when he wasn’t, conduct Judge Seabright called
“reprehensible on many levels.” In addition to a term of imprisonment, Joslin must also pay $48,595.11 in restitution to the VA.The case was investigated by the VA Office of the Inspector General and prosecuted by
Assistant United States Attorney Rebecca A. Perlmutter.Massachusetts Asbestos Abatement Company and Owner Sentenced for Defrauding Union Benefit FundsRead the Press Release
BOSTON – A demolition and asbestos abatement company and its owner were sentenced yesterday in federal court in Boston in connection with operating a “double breasted shop,” which enabled them to defraud the Massachusetts Laborers Benefit Funds (MLBF). In this case, the company utilized a second corporate entity to pay union members and thereby avoided paying union benefits to the MLBF.
SMI Demolition Inc. and Charles R. Smith, Jr., 51, of Sharon, were ordered by U.S. District Court Judge Rya W. Zobel to pay restitution of $703,330 to the MLBF and certain union members. Smith was sentenced to six months of home detention, and both the company and Smith were placed on federal probation for two years. In January 2018, SMI and Smith pleaded guilty to two counts of mail fraud.
Smith owned and operated SMI, a demolition and asbestos abatement company, which employed members of Laborers International Union of North America (LIUNA) Local 1421. Smith operated SMI alongside a non-union shop, Southern Middlesex Industries Inc. (Southern). Smith owned and operated both entities, which employed substantially the same union work force. From October 2011 to December 2013, SMI was a signatory to collective bargaining agreements (CBAs) that required SMI to pay employees the union wage rate and to make remittances to the MLBF for monthly employee benefit payments. Since SMI and Southern constituted a single business – an arrangement known in the industry as an illegal “double-breasted shop” – the business was bound by the terms of the CBAs and was required to pay the union wage rate and remit employee benefit contributions to the MLBF. Despite knowing that this was the case, Smith shifted workers to Southern’s non-union payroll and submitted false remittance reports, thereby failing to make the required payments to the MLBF.
Smith and SMI also cheated employees out of overtime pay during the execution of a contract to demolish and abate the asbestos at an airplane hangar at Hanscom Field. Smith and SMI routinely omitted any overtime hours and paid overtime at approximately $25 per hour – much less than the required rate of time and one-half. As a result of this fraud, employees who worked on the Hanscom Field project were deprived of approximately $79,956.
“Mr. Smith and SMI sought to gain an unfair competitive advantage in their industry by operating a “double breasted shop” that allowed them to reduce their operating expenses,” said United States Attorney Andrew E. Lelling. “In so doing, they violated laws intended to protect the rights of their labor force, and compromised wages and benefits that the workers in this case rightfully bargained for. We will continue to work with our law enforcement partners to vigorously investigate fraud in the labor markets.”
“EBSA will pursue corporations and executives when they engage in criminal schemes to defraud private sector benefit plans. EBSA is very pleased to have had the opportunity to work collaboratively with our law enforcement partners in the Office of the Inspector General and at the U.S. Attorney’s Office to protect plan participants,” said Carol S. Hamilton, Acting Regional Director of the Department of Labor’s Employee Benefits Security Administration.
“Charles R. Smith, Jr and SMI Demolition Inc. devised a scheme to illegally enrich themselves by avoiding paying required overtime and prevailing wage rates to union members they employed on various asbestos removal projects under collective bargaining agreements. The defendants submitted falsified timesheets that resulted in a fraud of the MLBF. We will continue to work with our law enforcement partners to safeguard the union benefit funds from those who seek to exploit it for personal gain,” said Peter Nozka, Acting Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General.
U.S. Attorney Lelling, Acting DOL-OIG SAC Nozka, and Acting DOL-EBSA Regional Director Hamilton made the announcement today. Assistant U.S. Attorney Fred M. Wyshak Jr. of Lelling’s Public Corruption Unit prosecuted the case.
Maryland Man Pleads Guilty to Two Separate Fraud Schemes for Stealing $668,000 from Employer and Incapacitated RelativeRead the Press Release
WASHINGTON – Zevi Chaim Mehlman, 52, of Silver Spring, Md., pled guilty today to federal charges of wire fraud and mail fraud for a pair of schemes in which he stole $96,000 from a school where he was working and an additional $572,000 from a relative.
U.S. Attorney Jessie K. Liu for the District of Columbia, Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Robert B. Wemyss, Inspector in Charge, Washington Division, U.S. Postal Inspection Service, made the announcement.
Mehlman pled guilty in the U.S. District Court for the District of Columbia. Each of the charges carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Mehlman faces a likely range of 51 to 63 months in prison and a fine of up to $200,000. He has agreed to pay a total of $668,000 in restitution to the victims and an identical amount in a forfeiture money judgment. The Honorable Emmet G. Sullivan scheduled sentencing for Aug. 8, 2018.
According to a statement of offense submitted at the plea hearing, one scheme was carried out by Mehlman against his then-employer, the Washington International School. Mehlman worked for the school from September 2008 until November 2015, initially running its computer network before becoming Assistant Director of Information Services.
At Mehlman’s request, the school provided him with two credit cards so that he could assist in the purchase of computers. From August 2014 until October 2015, Mehlman used the credit cards to make approximately 50 unauthorized purchases of Apple computer equipment. This equipment was not purchased for the school’s use. Instead, Mehlman returned the equipment to Apple and instructed Apple to place the credit onto his own personal debit cards. The total amount that Mehlman generated through this scheme was approximately $96,000.
The school’s leadership confronted Mehlman about the purchases in November 2015, and he admitted his actions and apologized. The school terminated his employment soon afterward.
According to the statement of offense, Mehlman carried out the second scheme against his uncle. In 2003, his uncle gave power of attorney to Mehlman to conduct financial affairs for him. In 2012, the District of Columbia’s Adult Protective Services filed a court petition seeking the appointment of a guardian and conservator for the uncle. The agency filed the petition after it was informed that approximately $1.2 million had been withdrawn from his brokerage accounts in 2010 and 2011. In the petition, the agency alleged that the uncle was an incapacitated individual who needed 24-hour care and who was unable to handle his finances and living arrangements. On May 3, 2012, the Court appointed co-guardians and co-conservators and revoked Mehlman’s power of attorney.
A copy of the Court’s order was mailed to Mehlman. Despite that order, and without the knowledge of the guardians and conservators, from May 17, 2012 until May 28, 2016, Mehlman wrote dozens of checks and stole approximately $572,000 from one of his uncle’s accounts.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Ebert, and Inspector in Charge Wemyss commended the work of those who investigated the case from the U.S. Secret Service. They also expressed appreciation for the efforts of those who investigated the case from the U.S. Postal Inspection Service, including Grace Gale, Investigative Support Analyst. They acknowledged the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Criminal Investigator Nicole Hinson, Paralegal Specialists Kristy Penny and Joshua Fein, former Special Assistant U.S. Attorney Marina Stevenson, who assisted with forfeiture issues, and Assistant U.S. Attorney Anthony Saler, who is investigating and prosecuting the case.
Marshalltown Man Sentenced to More Than 12 Years in Federal Prison for Trafficking Ice MethamphetamineRead the Press Release
A man who trafficked ice methamphetamine for months in 2015 was sentenced on March 26, 2018, to more than 12 years in federal prison.
Jason Nauman, age 36, from Marshalltown, Iowa, received the prison term after a December 5, 2017, guilty plea to conspiracy to distribute methamphetamine.
At the plea hearing, Nauman admitted that he agreed with others to traffic methamphetamine between the spring and fall of 2015. Information at sentencing showed that during this time, Nauman trafficked more than 3 pounds of ice methamphetamine.
Nauman was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 150 months’ imprisonment. Nauman must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Nauman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Patrick Reinert and Ravi Narayan. The case was investigated by the Drug Enforcement Administration and the Marshall County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-85.
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Marietta Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lane Edward Miller, age 26, of Marietta, Oklahoma, pled guilty to Aggravated Identity Theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, punishable by up to 2 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about May 6, 2017, in the Eastern District of Oklahoma, the Defendants, did knowingly transfer, possess and use, without lawful authority, a means of identification of another person, S.D., during and in relation to a felony violation enumerated in 18 U.S.C. § 1028A(c), to wit: Conspiracy to Commit Wire Fraud pursuant to 18 U.S.C. §§ 1343 and 1349, knowing that the means of identification belonged to another actual person.The charges arose from an investigation by the Marietta Police Department, the Love County Sheriff’s Office, the United States Postal Inspection Service, and the United States Secret Service.
The Honorable Kimberly E. West, 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 a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Manhattan U.S. Attorney Announces Lawsuit Against Foreclosure Law Firm for Systematically Overbilling Fannie Mae for Foreclosure ExpensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Rene Febles, Deputy Inspector General for Investigations for the Federal Housing Finance Agency (“FHFA-OIG”), announced today that the United States has filed a complaint-in-intervention against Rosicki, Rosicki & Associates, P.C. (“ROSICKI”), a foreclosure law firm in New York, and its wholly owned affiliates, Enterprise Process Service, Inc. (“ENTERPRISE”) and Paramount Land, Inc. (“PARAMOUNT”), for engaging in a scheme to generate false and inflated bills for foreclosure-related expenses and causing those expenses to be submitted to and paid for by the Federal National Mortgage Association, known colloquially as Fannie Mae. The case is assigned to U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the complaint, for years the Rosicki law firm exploited its relationship with Fannie Mae, a Government-sponsored entity, for its own financial gain by knowingly causing Fannie Mae to pay artificially inflated costs for foreclosure-related services. This lawsuit demonstrates this Office’s continued commitment to root out fraud in all of its forms.”
FHFA Deputy Inspector General for Investigations Rene Febles said: “FHFA-OIG recognizes that the best deterrent against fraud is a proactive and visible law enforcement effort. We are vigilant and remain committed to conducting vigorous investigations and working closely with prosecutors to hold those organizations and persons accountable who waste, steal, or abuse funds in connection with FHFA or any of the entities that it regulates.”
As alleged in the complaint:
From May 2009 through the present (“Covered Period”), ROSICKI, a law firm based in Plainview, New York, that specializes in mortgage foreclosures, acted as counsel to various mortgage servicing companies, and in that capacity effectuated mortgage foreclosures on Fannie Mae-owned loans. ENTERPRISE was a service-of-process company wholly owned and controlled by the two founding partners of ROSICKI, and PARAMOUNT was a title search company also wholly owned and controlled by the same ROSICKI partners.
Throughout the Covered Period, ROSICKI, ENTERPRISE, and PARAMOUNT perpetrated a scheme whereby ROSICKI exclusively engaged ENTERPRISE and PARAMOUNT purportedly to serve process and perform title searches that were required to complete mortgage foreclosures on Fannie Mae-owned loans. In reality, however, ENTERPRISE and PARAMOUNT engaged third-party vendors to perform the majority of the work, and then applied exponential markups, as much as 750%, to those vendors’ bills for foreclosure-related services, while adding little if any value to the services that the vendors had performed. ENTERPRISE and PARAMOUNT submitted their marked-up expenses, which significantly exceeded market rates, to ROSICKI. ROSICKI in turn billed the mortgage servicers for those inflated expenses, which ROSICKI represented were the actual expenses incurred for the foreclosure-related services, with knowledge that the mortgage servicers would submit claims to Fannie Mae for full reimbursement of the expenses. Defendants’ submission of these fraudulently inflated expenses caused Fannie Mae to pay millions of dollars for falsely inflated foreclosure expenses.
This matter was initiated by a relator pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729 et seq.
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Mr. Berman thanked the FHFA-OIG for its efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Cristy Irvin Phillips, Andrew E. Krause, and Lauren A. Lively are in charge of the case.
Manhattan U.S. Attorney Announces $10 Million Settlement of Civil Fraud Lawsuit Against Centerlight Healthcare for Collecting Medicaid Payments for Services Often Not Provided to Adult Home ResidentsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge for the New York Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), announced today a settlement of a civil fraud lawsuit against CenterLight Healthcare, Inc. (“CENTERLIGHT”), for collecting monthly Medicaid payments for 186 adult home residents who frequently did not receive required services while enrolled in CENTERLIGHT’s managed long-term care plan.
The settlement resolves allegations that CENTERLIGHT submitted false claims to Medicaid to receive these payments. Under the terms of the settlement approved yesterday by U.S. District Judge Lewis A. Kaplan, CENTERLIGHT must pay a total sum of $10 million, with $4 million going to the United States and the remaining amount going to the State of New York. In the settlement, CENTERLIGHT admits that the 186 adult home residents did not receive community-based long-term care services during certain months that they were enrolled in CENTERLIGHT’s managed long-term care plan. “CENTERLIGHT also admits that it failed to timely dis-enroll these adult home residents from its plan and that, as a result, CENTERLIGHT collected Medicaid payments to which it was not entitled.
Manhattan U.S. Attorney Geoffrey S. Berman said: “CenterLight Healthcare collected millions of dollars in Medicaid payments to provide long-term care services to adult home residents in its managed care plan, but frequently failed to deliver these services. This Office is committed to holding recipients of government health care funds accountable when they fail to provide the care and services the government pays them to provide.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “CenterLight’s conduct compromised the integrity of the Medicaid program and failed to ensure that quality health care services were provided to those that needed them most. HHS-OIG is committed to holding providers accountable for their practices.”
CENTERLIGHT administered a managed long-term care plan for Medicaid beneficiaries pursuant to a contract with the New York State Department of Health (the “Contract”). To be eligible for enrollment into a managed long-term care plan, a Medicaid beneficiary must, among other things, be assessed as needing community-based long-term care services for more than 120 days from the effective date of enrollment. These services include nursing services in the home, therapies in the home, home health aide services, personal care services in the home, and adult day health care. In exchange for arranging and providing these services, CENTERLIGHT received monthly payments of approximately $3,600 - $3,800 for each member. CENTERLIGHT contracted with licensed home care services agencies that were supposed to provide skilled nursing and home health aide services to the hundreds of adult home residents enrolled in CENTERLIGHT’s managed long-term care plan.
As alleged in the United States’ Complaint filed in Manhattan federal court, CENTERLIGHT did not ensure that these agencies consistently provided required services to adult home residents, and failed to ensure that these vulnerable members’ medical needs were met. Despite being aware that some of the agencies it hired provided a substandard level of care and did not maintain proper documentation reflecting the services provided, CENTERLIGHT failed to promptly take necessary steps to address these issues. With respect to the 186 adult home residents who are the subject of the settlement (the “186 Members”), CENTERLIGHT submitted or caused to be submitted claims to Medicaid for payments for months during which no community-based long-term care services were provided to the member. Indeed, many of the 186 Members did not receive any community-based long-term care services for most of the months during which they were enrolled in CENTERLIGHT’s managed care plan.
As part of the settlement, CenterLight Healthcare admits, acknowledges, and accepts responsibility for the following conduct:
- The 186 Members did not receive required community-based long-term care services during certain months that they were enrolled in CENTERLIGHT’s managed long-term care plan.
- CENTERLIGHT failed to timely dis-enroll the 186 Members even though they were no longer eligible for its managed long-term care plan and, as a result, CENTERLIGHT received capitation payments to which it was not entitled.
- CENTERLIGHT failed to adequately oversee and monitor the care provided by the home care services agencies to the 186 Members to ensure that these members received the services required by the Contract.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act. The Government previously intervened in this whistleblower lawsuit and, in January 2016, entered into a $46.7 million settlement with CENTERLIGHT to resolve allegations relating to the use of social adult day care centers to enroll ineligible members in CENTERLIGHT’s managed long-term care plan. CENTERLIGHT sold its managed long-term care plan in early 2017.
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Mr. Berman thanked the Office of the Inspector General for HHS for its assistance. Mr. Berman also thanked the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for its investigative efforts and work on the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the case.
Man Who Concealed Service in Military Unit Involved in Srebrenica Massacre Sentenced for Immigration FraudRead the Press Release
A Bosnian Serb residing in North Carolina was sentenced to 18 months in prison today for his criminal conviction of obtaining a Permanent Resident Card (I-551), commonly referred to as a “green card,” by making materially false claims and statements on his initial application for refugee status, which served as the basis for obtaining Lawful Permanent Resident status.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Milan Trisic, 55, who was residing in Charlotte, North Carolina, was sentenced by Judge Max O. Cogburn Jr. of the Western District of North Carolina. Trisic previously pleaded guilty on Dec.18, 2017, to possession of unlawfully obtained documents. Pursuant to an Order issued by Judge Coburn, upon completion of his term of imprisonment, Trisic will be transferred to ICE custody for removal to Bosnia and Herzegovina.
“Those who wish to live in the United States ought to respect our laws, support our national security, and pursue residency legally and honestly. Anything less is inexcusable,” said Attorney General Sessions. “The Department of Justice will not hesitate to take action against criminals who seek to come here on the basis of fraud and take advantage of our generous immigration system. I want to thank our Homeland Security Investigations (HSI) special agents and DOJ attorneys for all of their hard work pursuing justice in this case.”
“Using lies and deceit, Trisic exploited our legal immigration system to enter our country and later to become a permanent resident,” said U.S. Attorney Murray. “The sentence imposed by the Court is just punishment for Trisic’s blatant disregard for our nation’s immigration laws. My office is committed to protecting the integrity of our legal immigration process and prosecuting those who commit immigration fraud.”
“The men and women of ICE will continue to pursue those who violate the integrity of our immigration system to hide from the human rights violations they have committed,” said ICE Deputy Director Homan. “ICE Homeland Security Investigations in Charlotte, supported by ICE’s Human Rights Violators and War Crimes Center, worked for many years to pursue this case and uncover the facts about the human rights violations this individual committed. We thank our many partners at the Department of Justice for their tireless work in prosecuting this case. With this case and many others like it, the United States has demonstrated that we will not serve as a safe haven for those who commit egregious acts that violate basic human rights.”
According to the admissions made in connection with his plea, Trisic, an ethnic Serb with Bosnian citizenship, is a lawful permanent resident of the United States living in North Carolina. On Nov. 3, 2016, Trisic possessed a green card that was unlawfully obtained. In response to questions on his legal permanent resident application, Trisic knowingly concealed his military service in the Bratunac Brigade, a unit in the Army of the Serb Republic; concealed his criminal activity in Bosnia and Herzegovina; and lied about his whereabouts during the war in Bosnia and Herzegovina in the early and mid-1990s.
As part of his plea of guilty, Trisic admitted that he served in the Army of the Serb Republic as a member of the Bratunac Brigade during various tours of duty between April 1992 and January 1996, at a time when Bosnia and Herzegovina was in the midst of a civil war. Due to its proximity to Serbia, forces both aligned with and from Serbia began a violent ethnic expulsion campaign in 1992 against the non-Serbian population in and around Bratunac. Trisic admitted that he engaged in various unlawful activities while serving with the Bratunac Brigade, such as the unlawful beating, detention and transportation of Muslim prisoners. Additionally, Trisic admitted that the Bratunac Brigade, operating primarily in eastern Bosnia and Herzegovina, was one of the military units responsible for the July 1995 Srebrenica massacre that resulted in the deaths of between 7,000 and 8,000 Bosnian Muslim men.
Trisic also admitted that he knowingly lied about his whereabouts during the war in Bosnia and Herzegovina. In order to obtain refugee status, Trisic falsely claimed that he resided in Serbia during the war, when in fact he actually resided in Bratunac, Bosnia and Herzegovina, where he served as part of the Bratunac Brigade. Trisic later used his illegally obtained status as a refugee to unlawfully obtain permanent resident status in the United States.
This case is the result of an investigation conducted by ICE’s HSI and supported by the Human Rights Violators and War Crimes Center. Trial Attorneys Frank G. Rangoussis and Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kenneth Smith of the Western District of North Carolina are prosecuting the case.
Lower Elwha Klallam Tribal Member Pleads Guilty to Being a Habitual Domestic Abuser in Midst of TrialRead the Press Release
An enrolled member of the Lower Elwha Klallam Tribe pleaded guilty Tuesday in U.S. District Court in Tacoma to Domestic Assault by a Habitual Offender, announced U.S. Attorney Annette L. Hayes. MATTHEW TYLER CHARLES, 31, of Port Angeles, pleaded guilty following one day of testimony about his history of assaulting his intimate partner. CHARLES was indicted federally following the October 21, 2017 assault of a woman with whom he had a long-term relationship. CHARLES faces up to five years in prison when sentenced by U.S. District Judge Ronald B. Leighton on June 15, 2018.
According to records filed in the case and testimony at trial, in the early morning hours to October 21, 2017, the victim arrived at the Lower Elwha Casino. Shortly after her car pulled into the parking lot, the surveillance video shows CHARLES arriving in another vehicle. The video shows CHARLES assaulting the victim, violently shoving her back into the car and physically restraining her when she tried to flee. At one point during the incident, CHARLES brandished a knife. Two witnesses who were in the parking lot alerted casino security. CHARLES left the scene, but was later taken into custody.
CHARLES has four previous convictions related to domestic violence in either state or Tribal court. Two of these convictions arise from assaults in 2006 and 2014 on this same victim that were prosecuted in Clallam County District Court and Superior Court, respectively, and two convictions in Lower Elwha Klallam Tribal court for 2004 and 2010 assaults on this victim and another victim, respectively. Those convictions subject him to prosecution in federal court as a habitual offender.
The case was investigated by the FBI and the Lower Elwha Klallam Tribal Police. The case was prosecuted by Assistant United States Attorneys Rebecca S. Cohen and J. Tate London.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on March 28, 2018, Cassandra Rae Nemeiksis, (neh-MEHK-sis), 25, of Lincoln, was sentenced to five years and 10 months, (70 months), in prison for her involvement in a conspiracy to distribute methamphetamine in the Lincoln area between December of 2014 and June of 2017. Following the prison term, Nemeiksis will serve four years on supervised release.
Information provided to law enforcement indicated that Nemeiksis was involved in the distribution of at least 50 grams (approximately 1 ¾ ounces) of actual (pure) methamphetamine and at least 500 grams of a mixture or substance containing methamphetamine during that time-period. On May 4, 2016, Nemeiksis was a passenger in a car which was stopped by the Nebraska State Patrol. At least 54 grams of actual (pure) methamphetamine were found in the car. On May 13, 2016, Nemeiksis was contacted in the parking lot of the Lancaster County Jail and was found to be in possession of an item containing methamphetamine residue. At that time, she told officers that she was a methamphetamine addict who purchased methamphetamine from several sources.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the Nebraska State Patrol.
Lewiston Woman in Multistate Drug Ring Sentenced to Ten YearsRead the Press Release
COEUR D'ALENE – Robin Jo Rose, 31, of Lewiston, Idaho, was sentenced yesterday to 120 months in federal prison, to be followed by ten years of supervised release, for her role in distributing methamphetamine, U. S. Attorney Bart M. Davis announced. Senior U. S. District Judge Edward J. Lodge also ordered that Rose forfeit $7,000 in cash. Rose pleaded guilty to the charge on November 30, 2017.
Rose is one of seven individuals under federal indictment in a multistate drug ring. The investigation initially centered on methamphetamine and heroin dealers within Lewiston, Clarkston, and the Nez Perce Indian Reservation. The investigation expanded to distributors bringing methamphetamine and heroin into Idaho from Oregon and Washington. Four other defendants linked to the drug ring have already been sentenced:
- Salvador Saucedo, 27, of Milton-Freewater, Oregon, was sentenced on September 27, 2017, to 10 years in federal prison;
- Brice Heimgartner, 25, of Clarkston, Washington, was sentenced on September 29, 2017, to 37 months in federal prison;
- Andrew Byers, 28, of Craigmont, Idaho, was sentenced on November 30, 2017, to 10 years in federal prison;
- Kyle Seidel, 32, of Lewiston, Idaho, was sentenced on February 1, 2018, to 10 years in federal prison.
Law enforcement officers seized over 1,000 grams of pure methamphetamine, heroin, guns and cash, during searches and arrests occurring in Idaho, Washington, and Oregon. The Nez Perce County Prosecutor’s Office coordinated with the U.S. Attorney’s Office to bring several of these individuals into federal custody.
“I am very thankful for the effort of our local law enforcement agencies, the FBI, and the work of the U.S. Attorney’s Office. Our partnership is effectively removing drug dealers from the community and having a serious impact,” said Nez Perce County Prosecutor, Justin Coleman.
“I am grateful for the city, county, state, and federal collaboration, investigation and prosecution, that makes outcomes like this one possible,” said U.S. Attorney Bart Davis. “Our local communities and nation are experiencing a drug epidemic. Work like this is the beginning of a safer, stronger and healthier Idaho.”
Several local, state and federal agencies participated in the investigation and prosecution, including: the Federal Bureau of Investigation, Nez Perce County Prosecutor’s Office, Lewiston Police Department, Idaho State Police, Blue Mountain Enforcement Narcotics Team, and the Quad Cities Drug Task Force.
The prosecution is brought under the Department of Justice’s Organized Crime and 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.
Leader of New Haven Heroin Trafficking Ring Sentenced to 12 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BIENVENIDO GONZALEZ, 45, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 144 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Gonzalez and his brother, Antonio Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors in New Haven and elsewhere. The investigation resulted in federal charges against 24 individuals, including four other brothers of Bienvenido and Antonio Gonzalez.
Bienvenido Gonzalez, Antonio Gonzalez and several co-defendants were arrested on March 15, 2017. On that date, investigators seized a kilogram of heroin from a vehicle that a co-defendant had driven to a stash house used by Bienvenido Gonzalez, and more than 400 grams of heroin and $10,000 in cash from the stash house itself.
The investigation revealed that Bienvenido Gonzalez used the proceeds from the heroin trafficking enterprise to purchase a New Haven barbershop, fund a drag racing team, purchase roosters for cockfighting, gamble, and travel.
Bienvenido Gonzalez has been detained since his arrest on March 16, 2017. On November 30, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, one kilogram or more of heroin
Antonio Gonzalez has pleaded guilty to the same charge and awaits sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Lawrence Man Sentenced for Cocaine ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a cocaine conspiracy.
Juan Ulfany Mateo Soto, 38, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and three years of supervised release. In October 2017, Mateo Soto pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine and one count of conspiracy to attempt to possess with intent to distribute cocaine. In December 2016, Mateo Soto was arrested and charged with five co-defendants: Maximo Rodriguez, Hector Gomez, Angel Torres Leon, Angel Figueras, and Wallington Garcia.
On Oct. 27, 2016, Mateo Soto arranged to obtain six kilograms of cocaine from Torres Leon. Officers observed the transaction, and subsequently stopped Mateo Soto as he drove away with the drugs. Mateo Soto did not have a valid driver’s license, so officers towed the vehicle and subsequently found and seized the six kilograms of cocaine from a backpack in the car.
After the vehicle was towed, not knowing that the police had seized the cocaine, Mateo Soto and his co-defendants attempted to retrieve the drugs from the car, first as it was being towed, and later at the tow yard.
Maximo Rodriguez was scheduled for jury trial on Feb. 20, 2018, but failed to appear. He is currently a fugitive. Angel Torres Leon and Angel Figueras were sentenced in December 2017 to 40 months in prison and time-served, respectively. Hector Gomez is scheduled to be sentenced on May 15, 2018, and Wallington Garcia’s case was dismissed.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
Justice Department Sues Subprime Auto Lender in Orange County, California, for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department today filed a lawsuit in the Central District of California against California Auto Finance, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The Justice Department initiated an investigation into the practices of California Auto Finance, which is based in the City of Orange, California, after United States Army Private Andrea Starks submitted a complaint to the Justice Department in November 2016.
In April 2016, Private Starks notified California Auto Finance that she would be entering the military the following month. Despite this advance notice, California Auto Finance repossessed Private Stark’s vehicle without a court order on May 9, 2016, her first day of active military training. At the time of repossession, the vehicle was parked at the home of Private Starks’ grandmother in Cedar Rapids, Iowa. The complaint states that California Auto Finance had no process to determine customers’ military status – such as checking the Department of Defense’s publicly available database – prior to repossessing their cars.
“The members of our armed forces should be able to devote their full attention to their duties without having to worry about whether their legal rights will be violated by lenders,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Repossessing vehicles without required court orders is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans, and their families from unlawful conduct by lenders.”
“We have a solemn duty to protect the rights of the men and women who bravely serve in our nation’s armed forces,” said United States Attorney Nicola T. Hanna of the Central District of California. “By repossessing servicemembers’ automobiles without court orders, California Auto Finance allegedly violated their rights. We respect and honor the sacrifice that servicemembers have made to our country, and we will take whatever action we can to protect their rights.”
In addition to monetary damages for affected servicemembers, the complaint asks for civil monetary penalties and injunctive relief to prevent future repossessions that violate the SCRA.
California Auto Finance is a privately held indirect auto lending company based in the City of Orange, California, that describes itself as a leading sub-prime lender in California. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the Central District of California.
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any vehicle repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments to the servicemember. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with United States Attorney’s Offices. Since 2011, the Department has obtained over $467 million in monetary relief for over 119,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Justice Department Sues Subprime Auto Lender in Orange County for Illegally Repossessing Servicemembers’ CarsRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit in the Central District of California against California Auto Finance, alleging that it violated the Servicemembers' Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The Justice Department initiated an investigation into the practices of California Auto Finance, which is based in the City of Orange, California, after United States Army Private Andrea Starks submitted a complaint to the Justice Department in November 2016.
In April 2016, Private Starks notified California Auto Finance that she would be entering the military the following month. Despite this advance notice, California Auto Finance repossessed Private Starks vehicle without a court order on May 9, 2016, her first day of active military training. At the time of repossession, the vehicle was parked at the home of Private Starks grandmother in Cedar Rapids, Iowa. The complaint states that California Auto Finance had no process to determine customers’ military status – such as checking the Department of Defense’s publicly available database – prior to repossessing their cars.
“The members of our armed forces should be able to devote their full attention to their duties without having to worry about whether their legal rights will be violated by lenders,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Repossessing vehicles without required court orders is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans, and their families from unlawful conduct by lenders.”
“We have a solemn duty to protect the rights of the men and women who bravely serve in our nation’s armed forces,” said United States Attorney Nicola T. Hanna of the Central District of California. “By repossessing servicemembers’ automobiles without court orders, California Auto Finance allegedly violated their rights. We respect and honor the sacrifice that servicemembers have made to our country, and we will take whatever action we can to protect their rights.”
In addition to monetary damages for affected servicemembers, the complaint asks for civil monetary penalties and injunctive relief to prevent future repossessions that violate the SCRA.
California Auto Finance is a privately held indirect auto-lending company based in the City of Orange, California, that describes itself as a leading sub-prime lender in California. The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
This case is being jointly handled by the U.S. Attorney’s Office for the Central District of California and the Justice Department’s Civil Rights Division.
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any vehicle repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments to the servicemember. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, often in partnership with United States Attorney’s Offices. Since 2011, the Department has obtained over $467 million in monetary relief for over 119,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance, and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Joplin Woman Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., woman pleaded guilty in federal court today to her role in a conspiracy to distribute methamphetamine that was shipped via UPS from Arizona.
Jennifer M. Conant, 38, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to distribute methamphetamine.
By pleading guilty today, Conant admitted that she had a package shipped via UPS, which contained approximately one pound of methamphetamine, to a residence in Seneca, Mo. On May 6, 2017, law enforcement officers tracked the suspicious package from its origin in Arizona and upon its arrival at the Joplin UPS conducted a search to confirm the package contained methamphetamine.
A federal agent conducted a controlled delivery of the package to its Seneca destination on May 7, 2017. Shortly after the package was delivered, officers executed a search warrant and located the package in a bedroom of the residence. An occupant of the residence told investigators that Conant had the package shipped to his address and that she had inquired about the package just prior to law enforcement executing the search warrant. He then contacted Conant, who arrived at the residence approximately 45 minutes later to pick up the package and was arrested.
Under federal statutes, Conant is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Newton County, Mo., Sheriff’s Department and the Ozark Drug Enforcement Team.
Illegal Alien Arrested in Iowa for Operating While Intoxicated Sentenced to Federal Prison for Reentering the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States was sentenced today to more than two months in federal prison.
Sebastian Mejia-De La Cruz, age 27, a citizen of Guatemala illegally present in the United States and residing in Stewart, Minnesota, received the prison term after a January 31, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Mejia-De La Cruz admitted he had previously been deported from the United States on June 10, 2011, and that he illegally reentered the United States without the permission of the United States government in 2012. On December 3, 2017, Mejia-De La Cruz was found by immigration officers at the Tama County Jail in Toledo, Iowa, following his arrest for operating a motor vehicle while intoxicated. On December 21, 2017, Mejia-De La Cruz was convicted of operating a motor vehicle while intoxicated. Mejia-De La Cruz had also been convicted of identity theft in Renville County, Minnesota, in January 2015. In that case, Mejia-De La Cruz had used falsified or stolen documents to obtain employment under a false name.
Mejia-De La Cruz was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Mejia-De La Cruz was sentenced to 77 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mejia-De La Cruz is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-01.
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Hunterdon County, New Jersey, Man Gets over 10 Years in Prison for Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A High Bridge, New Jersey, man was sentenced today to 121 months in prison for distributing images of child sexual abuse over the internet, U.S. Attorney Craig Carpenito announced.
Darrel Underhill, 74, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of distributing child pornography. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in the case and statements in court:
Underhill used a peer-to-peer file sharing program on his computer to download videos and images of child sexual abuse. In October 2016, law enforcement downloaded over three dozen such videos from Underhill’s computer. After executing a search warrant at Underhill’s home in March 2017, agents located nearly 1000 videos and over 12,000 images of child sexual abuse on Underhill’s computers. Underhill admitted that he was making videos available for others to download.
In addition to the prison term, Judge McNulty sentenced Underhill to five years of supervised release.U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security (DHS), Homeland Security Investigation’s (HSI) Newark Division, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender
Houston Men Sentenced for Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas – Three Houston men have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Marvin James Rhine, 45, pleaded guilty on Sep. 26, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 215 months in federal prison today by U.S. District Judge Ron Clark. Darrell Paul Williams, 38, pleaded guilty on Sep. 27, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 92 months in federal prison today by Judge Clark. Gerrick Leon Wade, 38, pleaded guilty on Oct. 2, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 151 months in federal prison yesterday by Judge Clark.
According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Rhine, Williams, and Wade were charged along with five others in a five-count indictment returned on Mar. 22, 2017.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.
Henderson Man Detained on Federal Firearm Charge After State Arrest in Granville CountyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces the detention of a defendant after his arrest on a federal firearms charge.
An indictment was returned by a federal grand jury on March 15, 2018, against ODELL OVERBY, of Henderson. The indictment charges the defendant with possession of a firearm by a convicted felon on December 17, 2017.
OVERBY was arrested December 17, 2017, by the Granville County Sheriff’s Office.
The charge and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation of this case was conducted by the Granville County Sheriff’s Office and by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hearing Aid Dealer and Hearing Aid Salesman Charged with Health Care Fraud and Aggravated Identity TheftRead the Press Release
An indictment was unsealed today charging Rasko “Ron” Djordjevic and Milija “Mike” Perkovic with health care fraud, conspiracy to commit health care fraud, and aggravated identity theft, U.S. Attorney Matthew Schneider announced today. Chang is also charged with health care fraud.
Schneider was joined in the announcement by Special Agent in Charge Timothy Slater of the FBI’s Detroit Division; Special Agent in Charge James Vanderberg of the Department of Labor’s Office of Inspector General, Chicago Regional Office; and Regional Director Joseph Rivers of the Department of Labor’s Employee Benefit Security Administration.
Charged in the indictment are Rasco Djordjevic, age 42, of Troy, Michigan, and Milija Perkovic, age 26, of Bloomfield, Michigan.
The indictment alleges that from November 2014 to date, Djordjevic was in charge of Sterling Hearing Care, Inc. and Sterling Hearing Center, Inc., (collectively “SHC), a hearing aid provider with approximately fifteen offices throughout southeast Michigan. Milija Perkovic was one of several hearing aid salespersons working under Djordjevic’s direction. It is alleged that Djordjevic, Perkovic and other unnamed individuals conspired to defraud both Blue Cross Blue Shield and American Health Benefits by submitting reimbursement claims for hearing aids and related services that were: (1) not provided, (2) provided by medically unnecessary; and (3) predicated on fraudulent claim submissions and fraudulent marketing practices. The indictment specifically alleges how SHC would entice potential customers with offers of free hearing assessments (that were nevertheless billed to BCBS). Once in the door, SHC’s hearing aid salespersons were then encouraged to “close the deal,” sometimes at the expense of medical necessity. For instance, Djordjevic discouraged his salepersons from recommending that customers with wax buildup have the buildup removed before conducting a hearing evaluation. The indictment alleges that Perkovic would show potential customers “fake xrays” and tell them that they revealed cochlea damage in the customer’s inner ear. SHC salespersons, including Perkovic, were taught that after determining the extent of a potential customer’s insurance coverage and conducting a soft credit check, the sales price of a hearing aid should be based upon what the customer can afford, not on a set market price.
The indictment also alleges that Djordjevic misused the identity of a specific Michigan audiologist in committing health care fraud by signing her name, and certifying all SHC claims submitted to American Hearing Benefits. The indictment further charges that Perkovic misused the specific identity of a Michigan doctor in committing health care fraud by falsifying her signature on a medical clearance form required by BCBS.
United States Attorney Schneider stated, “Our office has no tolerance for health care providers that deliberately mislead customers in order to sell a medical product or service and then bill insurance companies for services and products not delivered. It is especially troublesome when a provider deals with elderly customers that may be particularly vulnerable to scams.” Schneider urges anyone in the market for hearing aids – either for themselves or for a loved one -- to become well-educated consumers. “Research potential providers and ask good questions,” Schneider reminds. “Trust your instincts and never be afraid to seek a second opinion.”
"Taking advantage of innocent victims who seek medical services by allegedly stealing their identity is unethical and illegal,” said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. “Health care fraud negativity impacts relationships between patients and their doctors. The FBI and our law enforcement partners will continue to investigate health care fraud at all levels”.
"An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering affecting unions and employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Citizens are encouraged to report information about Health Care Fraud activity to the Detroit FBI at 313-965-2323.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
If convicted of a health care fraud charge, the defendants face a maximum sentence of imprisonment of ten years, and a maximum fine of $250,000. In addition to any sentence imposed for health care fraud, the defendants face a mandatory and consecutive two-year sentence if convicted of aggravated identity theft.
The case was investigated by Special Agents of the FBI and DoL. The case is being prosecuted by Assistant U.S. Attorney John Engstrom.
Guatemalan Man Sentenced to Federal Prison for Illegally Reentering the United StatesRead the Press Release
A man entered the United States illegally from Guatemala was sentenced on March 26, 2018, to 6 months in federal prison.
Isidro Mendez-Lopez, age 24, from Guatemala and residing in Denison, Iowa, received the prison term after a March 14, 2018, guilty plea to one count of illegal re-entry.
At the guilty plea, Mendez-Lopez admitted he had illegally entered the United States from Guatemala in 2015 after previously being deported from the U.S.
Mendez-Lopez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Mendez-Lopez was sentenced to 6 months’ imprisonment. He must also serve a 1-year term of supervised release after the prison term. There is no parole in the federal system.
Mendez-Lopez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau and the Crawford County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-04078.
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Franklin Man Charged in Nationwide Child Porn Investigation Pleads GuiltyRead the Press Release
CINCINNATI – Brandon Spicer, 42, of Franklin, Ohio, pleaded guilty in U.S. District Court to one count of receipt of child pornography, a crime punishable by at least five years and up to 20 years in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the plea entered today before U.S. District Judge Susan J. Dlott.
According to court documents, Spicer was identified during the course of a nationwide investigation into accessing child pornography that was available on a highly encrypted website known as “Playpen.” Users of the site had to take multiple steps to register for the site and to access the materials. The materials depicted extremely young children being sexually assaulted by adults – some in bondage, many violent.
Based on information received as a result of the “Playpen” investigation, agents searched Spicer’s home on July 9, 2015. Agents found more than 600 images on Spicer’s computer and cellular phone depicting children under 12 years old being sexually assaulted and abused by adult men.
Judge Dlott will schedule sentencing following an investigation by the court.
U.S. Attorney Glassman commended the investigation by the FBI, as well as Assistant United States Attorney Christy Muncy, who is representing the United States in this case.
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Four Alleged MS-13 Gang Members Charged in Connection with MurderRead the Press Release
LAS VEGAS, Nev. – Four alleged MS-13 gang members were charged late Tuesday in connection with the kidnapping and murder of a rival gang member whose body was found on federal property in southern Nevada.
United States Attorney Dayle Elieson of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Special Agent in Charge Joseph Macias for Homeland Security Investigations (HSI) Los Angeles made the announcement.
Josue Diaz-Orellana, 22, Luis Reyes-Castillo, a/k/a “Molesto,” 24, David Perez-Manchame, a/k/a “Herbi” and “Walter Melendez,” 19, and Miguel Torres-Escobar, 20, all El Salvadoran nationals, are charged with assault with intent to commit murder, kidnapping, and discharging a firearm during and in relation to a crime of violence. The defendants are illegally in the United States and are in federal custody. Reyes-Castillo, Perez-Manchame, and Torres-Escobar are scheduled to make their initial appearance this afternoon at the federal courthouse in Las Vegas before U.S. District Magistrate Judge Cam Ferenbach. A date for Diaz-Orellana has not yet been set.
MS-13 is an identified transnational organized crime group. MS-13, which is short for “La Mara Salvatrucha,” is a gang composed primarily of immigrants or descendants of immigrants from El Salvador. In the United States, MS-13 has been functioning since at least the 1980s.
According to allegations contained in the complaint, on January 21, 2018, Diaz-Orellana, Reyes-Castillo, Perez-Manchame, and Torres-Escobar, kidnapped and murdered Arquimidez Sandavol-Martinez. His body was discovered on February 2, on federal property on East Lake Mead Boulevard, near mile marker 12, in rural Clark County, Nevada. Examination of the crime scene indicated that Sandoval-Martinez had been bound and had made some effort to escape his captors before being shot and stabbed to death. Fired 9mm cartridge cases with “Blazer” and “FC” head-stamp markings on them were located within the crime scene.
During the course of the investigation, law enforcement learned that Sandoval-Martinez was last seen on January 21, at Club 2100, located at 2100 Fremont Street. Investigators obtained cell phone records that indicated Diaz-Orellana’s phone used cell towers near the club, heading eastbound along Lake Mead Boulevard, and in the area where Sandavol-Martinez’s body was found. On March 2, law enforcement stopped Diaz-Orellana who was in a vehicle with Reyes-Castillo, Perez-Manchame, and Torres-Escobar. A large butcher knife, a baseball hat with an apparent bloodstain on it, and three 9mm handguns were recovered in the vehicle.
The maximum statutory penalty is 20 years of imprisonment for the assault charge and life imprisonment for both the kidnapping and the discharging of a firearm count.
A criminal complaint merely contains allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is a joint investigation by the FBI, HSI, and the Las Vegas Metropolitan Police with the assistance of the DEA. Assistant U.S. Attorneys Phillip N. Smith, Jr. and Frank J. Coumou are prosecuting the case.
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Former Navy Sailor Convicted of Distributing Animal Crush VideoRead the Press Release
CORPUS CHRISTI, Texas - A 26-year-old former Navy sailor has been convicted of distributing a video depicting the drowning of puppies, announced U.S. Ryan K. Patrick.
In June 2016, Naval Criminal Investigative Service (NCIS) agents were notified that Petty Officer Third Class Daniel James O’Sullivan would be in possession of disturbing videos depicting the torture and killing of animals. Authorities interviewed him at Naval Air Station Corpus Christi where he was stationed at the time. O’Sullivan admitted he distributed a video to an individual in Montana that depicted the drowning of puppies in a river. That individual admitted to receiving the video.
Law enforcement conducted a forensic search on his digital devices which resulted in the discovery of the video depicting the drowning of puppies and other animal crush videos. In one video, a dog’s mouth is closed with duct tape as it is set on fire. In another, a dog is thrown off a high-rise building. Other videos depict mice and baby chicks being ground-up in a blender.
Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
This is the second such case prosecuted in this district. The first resulted in a 57-month federal prison sentence and was believed to be the first indicted nationwide since the statute was amended in 2010.
In September 2017, O’Sullivan received an other than honorable discharge from the Navy.
Sentencing has been set before U.S. District Judge Nelva Gonzalez Ramos on Aug. 2, 2018. At that time, O’Sullivan faces up to seven years in federal prison and a possible $250,000 maximum fine. O’Sullivan was allowed to remain on bond pending that hearing.
NCIS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
Final Defendant Sentenced in Nayarit, Mexico-Based Heroin Trafficking ConspiracyRead the Press Release
PORTLAND, Ore. – Misraim Israel Briones Pasos aka Mario Ozuna, 36, of Tepic, Nayarit, Mexico, was sentenced today to 151 months in prison for his role in a vast conspiracy responsible for trafficking hundreds of pounds of black tar heroin from Nayarit, Mexico to the Portland metropolitan area.
“Most of the heroin in this country came here across our porous Southern Border," Attorney General Sessions said. "Traffickers from Nayarit, like these defendants, have become notorious across the United States for their effectiveness in dispensing cheap and powerful heroin. We will never know the full extent of the consequences of their actions. The sentences handed down in this case, though they cannot compare with the damage done to our nation by the defendants, will help keep the people of this country safe. I want to thank our fabulous OCDETF members with the DEA, Homeland Security Investigations, the FBI, the IRS, the Marshals Service, and local police for their hard work, as well as Assistant U.S. Attorneys Thomas Edmonds and Steven Mygrant. They have done us all a service by taking heroin traffickers off of our streets.”
“At a time when communities are reeling from the effects of the opioid crisis, there are criminal organizations whose sole purpose is to profit off addiction. At its peak, this network was bringing up to 10 pounds of heroin into the Portland area every week – nearly 45,000 single doses,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Much of what law enforcement does to disrupt and dismantle these organizations is unknown to the public. The resolution of this case gives us a rare glimpse into the extraordinary work of law enforcement to bring every last person involved in a network’s operations to justice.”
“Lives are being lost at an alarming rate everyday due to opioid affliction,” said Keith Weis, Special Agent in Charge for the Drug Enforcement Administration (DEA) in Seattle. “We must be steadfast in stopping those most responsible for this shameful profiteering.”
According to court documents, investigators first learned of the conspiracy when a confidential informant provided a tip that co-defendant Cory Jaques was selling heroin and oxycodone from his residence in southwest Portland. Using controlled buys, surveillance and phone toll analysis, investigators determined that Jaques was receiving heroin from Briones Pasos and another co-defendant Melchor Luna Rodriguez. A federal wiretap investigation was opened in the fall of 2014.
Investigators later learned that Briones Pasos’ managed one of several heroin cells in the Portland area sourced by a single Nayarit-based supplier. The supply cell, managed by codefendants Christopher Guillen Robles and Paul Guillen, was responsible for bringing as much as 10 pounds of heroin into the metropolitan area every week. By early 2015, investigators had revealed the cells’ transportation methods and the movement of money via banks, bulk cash smuggling and wire transfers.
In February 2015, a federal grand jury in Portland returned a multi-count indictment implicating 22 defendants. Soon thereafter, investigators executed search and arrest warrants at 24 locations across four states. By February 2018, all principal targets had been convicted and the court had ordered more than $1.4 million in forfeiture money judgments.
Sentenced defendants include:
Christopher Guillen-Robles, 23, of Pomona, California – 151 months in prison and five years’ supervised release
Misraim Israel Briones Pasos, aka Mario Ozuna, 36, of Tepic, Nayarit, Mexico – 151 months in prison and five years’ supervised release
Jose Luis Mamani-Vidal, 51, of Salt Lake City, Utah – 128 months in prison and five years’ supervised release
Alexis Guillen-Robles, 22, of Perris, California – 120 months in prison and five years’ supervised release
Melchor Luna Rodriguez, aka Jose Luis Mendez Chavez, 35, of Apatzingán, Michoacán, Mexico – 120 months in prison and five years’ supervised release
Jose Mata, 30, of Hillsboro, Oregon – 120 months in prison and five years’ supervised release
Cipriano Andrade-Lopez, aka Burras and Burra, 40, of Tepic, Nayarit, Mexico – 120 months in prison and five years’ supervised release
Juan Carlos Vega Rivera, aka Fidel Lnu and Laylo, 34, of Mexico City, Mexico – 120 months in prison and five years’ supervised release
Geovany Munoz, 22, of Long Beach, California – 97 months in prison and four years’ supervised release
Cory Allyn Jaques, 40, of Tigard, Oregon – 78 months in prison and four years’ supervised release
Irvin David Jaimes Perez, aka Leonardo Lnu and Miguel Garsia-Frores, 32, of Acapulco, Guerrero, Mexico – 63 months in prison and four years’ supervised release
Francisco Rodriguez-Esqueda, aka Borrego, 32, of Xalisco, Nayarit, Mexico – 62 months in prison and five years’ supervised release
Joel Orozco-Estrada, 23, of Tepic, Nayarit, Mexico – 60 months in prison and three years’ supervised release
Franz Ulises Mendoza-Pasos, aka Chulo, Oscar Lnu, and Jael Mejia-Romo, 32, of El Refugio Testarazo, Nayarit, Mexico – 57 months in prison and three years’ supervised release
Fabian Gonzalez-Avila, aka Francisco, Hammer, and Tamburete, 24, of Tepic, Nayarit, Mexico – 57 months in prison and three years’ supervised release
Jose Huanaco-Casildo, 33, of Forest Grove, Oregon – 57 months in prison and four years’ supervised release
Jose Najar-Celis, 34, of Venustiano Carranza, Nayarit, Mexico – 50 months in prison and three years’ supervised release
Christian Enrique Chavez-Esqueda, aka Sapo, 30, of Xalisco, Nayarit, Mexico – 42 months in prison and three years’ supervised release
Lisa Miriam Wendell, 38, of Billings, Montana – 41 months in prison and four years’ supervised release
Jose Jorge Tobon-Ortega, aka Puebla and Fnu Lnu, 39, of Molcaxac, Puebla, Mexico – 36 months in prison and three years’ supervised release
Christian Llanos-Javier, aka Chacal, 29, of Portland, Oregon – 28 months in prison and three years’ supervised release
Mary Elizabeth Henlin, 37, of Portland, Oregon – time served in prison and five years’ supervised release
This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), FBI, IRS, U.S. Marshals Service, the Portland Police Bureau Drugs and Vice Division, the Clackamas County Interagency Taskforce, and the Westside Interagency Narcotics Team (WIN). It was prosecuted by Thomas H. Edmonds and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Org Chart: Organizational hierarchy of Guillen-Robles heroin trafficking conspiracy Exhibit 31: Heroin bricks packaged for transport. Exhibit 66c: Cash seized by law enforcement Exhibit 76: Cash seized by law enforcement Exhibit 76b: Heroin balloons packaged for distributionFederal, State and Local Authorities Arrest 18 Individuals Today Based on Federal Drug Trafficking Indictment Returned in AustinRead the Press Release
This morning, federal, state and local authorities arrested 18 individuals without incident on federal drug charges stemming from a narcotics trafficking investigation announced United States Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Acting IRS-Criminal Investigation Special Agent in Charge Andy Tsui; Texas Department of Safety Director Steven McCraw; Austin Police Chief Brian Manley, Hays County Sheriff Gary Cutler; and, Cedar Park Police Chief Sean Mannix.
A federal grand jury indictment unsealed today charges those defendants, and ten other individuals who were already in custody prior to today, with conspiracy to possess with intent to distribute a controlled substance. Count one involves methamphetamine, count two involves cocaine and count three involves heroin. Count four of the indictment is a money laundering charge. A complete list of defendants is below.
During the course of the conspiracy, Luis Villagrana and Carlos Garcia-Duark, were leaders of the distribution cells operating in Austin, TX. Authorities allege that members of the organization utilized a local mechanic’s shop to unload, distribute, and ship drugs to sales and distribution points in Texas, Oklahoma, Georgia, Minnesota, Arkansas, Tennessee, and Mississippi.
During this investigation, law enforcement agents in several jurisdictions seized a combined total of approximately 148 pounds of crystal methamphetamine, some 56 gallons of liquid methamphetamine, 62 pounds of cocaine, 13 pounds of heroin, and $400,000 in U.S. currency.
Upon conviction, the defendants face sentences of between five and 40 years in federal prison or up to life in federal prison depending on the amount of controlled substances involved. Defendants face up to 20 years imprisonment upon conviction for money laundering.
The DEA Austin Resident Office, FBI Austin, IRS-Criminal Investigation, Texas Department of Public Safety, Austin Police Department, Hays County Sheriff’s Office, and Cedar Park Police Department investigated this case. Agencies providing assistance during this investigation include: Round Rock Police Department; Georgetown Police Department; Lakeway Police Department; Williamson County Sheriff’s Office; Travis County Sheriff’s Office; Rockwall Police Department; Bastrop County Sheriff’s Office; Travis County District Attorney’s Office; Bell County District Attorney’s Office; Williamson County District Attorney’s Office, Bastrop County District Attorney’s Office, DEA (McAllen, Milwaukee Field Office, Brownsville, Eagle Pass, Dallas Division, Houston Division and Houston SRT); FBI (McAllen); Homeland Security Investigations (Austin); U.S. Border Patrol (Del Rio Sector) and U.S. Customs and Border Protection. Assistant United States Attorneys Dan Guess and Matt Harding are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
U.S. v. Luis Villagrana-Martinez, et al.
Case #: A18cr91Name Age Residence Count(s) Statutory Maximum Penalty
Luis Villagrana 32 Leander, TX 1 - 4 life imprisonment
Furqan Rashid Sunka 34 Austin, TX 2, 4 life imprisonment
Lauro Toledo 30 Austin 2 life imprisonment
**Blanca Davila-Puente 35 Mission 2, 4 life imprisonment
**Silvia Cerda-Gonzalez 49 Michoacán, MX 2, 3, 4 life imprisonment
**Daniel Hernandez 30 Austin 2, 4 life imprisonment
**Anthony Taylor 45 Pflugerville, TX 2 40 years imprisonment
**Victor Vargas-Osorio 25 Austin 2 40 years imprisonment
Juan Vasquez 69 Brownsville, TX 2 life imprisonment
Maria Del Pilar Barcenas 47 Brownsville 2 life imprisonment
Lauro Jaimes 32 Llano, TX 1 life imprisonment
**Rigoberto Vences Bautista 39 Austin 2 life imprisonment
Martin Benitez 38 Austin 2 life imprisonment
**Francisco Gonzalez 30 Mission 2 40 years imprisonment
Esperanza Gerardo 40 Mission 2 life imprisonment
Albert Villagrana 19 Leander 2, 4 life imprisonment
Jesus Ocampo 33 Austin 2, 4 40 years imprisonment
Mike Vertacnik 30 Austin 2 life imprisonment
**Marques Taylor Nunley 27 Austin 2 40 years imprisonment
Rebecca Anaya 26 Austin 2, 3 40 years imprisonment
Claudia Lara-Escalante 26 Houston, TX 4 20 years imprisonment
Leovigildo Martinez 27 Austin 2, 3 life imprisonment
Carlos Garcia-Duarte 40 Dale, TX 1, 2, 3 life imprisonment
**Arturo Juarez-Osorio 36 Austin 2 life imprisonment
**Eduardo Flores-Parra 27 Austin 1, 2 life imprisonment
Rafael Garcia-Duarte 27 Dale 1 life imprisonment
Jose DeJesus Gonzalez 27 Austin 1, 2 life imprisonment
Gerardo Arroyo 29 Pflugerville 2 40 years imprisonment** Already in custody prior to today
Federal Judge Sentences Huntersville, N.C. Doctor to More Than Eight Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr., sentenced David Michael Shope, 43, of Huntersville, N.C., to 105 months in prison for possession of child pornography, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Shope, who is an Oncologist, was also ordered to serve a 15 years under court supervision and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in February 2015 and in September 2015, Shope used peer-to-peer software to transport to an undercover CMPD detective multiple videos that depicted the sexual abuse of children. According to court records, on September 30, 2015, law enforcement conducted a search of Shope’s residence in Huntersville, seizing multiple electronic devices and an external hard drive. A forensic examination of the seized items revealed that Shope possessed multiple videos containing child pornography, some of which depicted sadomasochistic conduct. Several videos also involved children under 12.
According to court records, law enforcement also found, on one of Shopes’ laptops, chats from a public chat room. The various chats involved Shope posing as a female with a younger daughter who was sexually interested in other females with younger daughters. Some of the chats included Shope requesting photographs of the other females and their daughters.
Shope pleaded guilty to possession of child pornography in July 2017. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI and CMPD led the investigation. Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Charges for Weapons TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On March 26, 2018, a federal grand jury returned a one-count indictment charging two individuals for trafficking firearms without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation of the case.
The indictment charges Julián A. Sierra-Acevedo, and Jonathan González-Collazo, a.k.a. “Chino” with engaging in the business of firearms trafficking without a license. On March 24, 2018 the defendants herein, aiding and abetting each other, not being licensed dealers of firearms within the meaning of Chapter 44, Title 18, Unites States Code, did willfully sell an AR-15 type rifle, .223 caliber, black in color, of unknown make and model, along with .223 caliber ammunition to an undercover agent.
“We will continue to work tirelessly with state and federal law enforcement agencies, to fight the wave of gun violence in our communities. An essential component of our violence reduction strategy is the prosecution of individuals involved in illegal firearms trafficking,” said United States Attorney Rosa Emilia Rodríguez-Vélez.
Assistant U.S. Attorney Max Pérez-Bouret is in charge of the prosecution of the case. If convicted, the defendants face up to five years in prison for engaging in the business of dealing firearms without a license. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Euclid man arrested and charged in federal court after ordering large amounts of fentanyl from China, then selling the drugs domesticallyRead the Press Release
A Euclid man was arrested and charged in federal court after ordering shipments of suspected fentanyl and several other opioid analogues from China and selling the drugs domestically.
Antoin Austin, 28, was charged with one count of conspiracy to possess with intent to distribute controlled substances.
According to an affidavit filed in the case:
Austin used the online moniker “DARKKING22” on the Dark Web. As of this month, DARKKING22 advertised some of the following items for sale: “Fentanyl Pure HCL, Methozymethylfentanyl ‘30490’, molly, pure lofentanil, and MMAF New Product.” Methozymethylfentanyl, pure lofentanil, and MMAF New Product are known to be various types of fentanyl analogues.
Undercover law enforcement agents made multiple purchases of opioids from DARKKING22 on the Dark Web in 2018. The purchases were made using bitcoins and the shipments indicated the letters carrying the drugs originated in the Cleveland area.
Law enforcement this month tracked the shipment of a drug package sent by DARKKING22 to the Wickliffe Post Office on Lloyd Road. Surveillance groups this week observed Austin travel from his home in Euclid to the Wickliffe Post Office, where he attempted to mail packages using false return addresses.
Law enforcement in October 2017 seized a package being shipped to Austin from a known Chinese fentanyl distributor. The parcel was opened and found to contain 10 grams of fentanyl.
“This defendant ordered thousands of deadly doses of fentanyl from China, brought it to a residential neighborhood in Euclid and then mailed the dangerous drugs all over Ohio and across the country,” U.S. Attorney Herdman said. “Drug traffickers like this have enriched themselves while causing so much pain in our community.”
Acting FBI Special Agent in Charge Jeff Fortunato said: “Opioids have killed thousands of our friends and neighbors. The FBI will continue to work with all our partners to reduce the supply of these deadly drugs.”
This case was investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Matthew Cronin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Eight Charged in "Lie-and-Buy" Firearms SchemesRead the Press Release
PROVIDENCE, RI – A series of ongoing Project Safe Neighborhoods investigations targeting individuals who allegedly provided false information to federally licensed firearms dealers in Rhode Island when purchasing firearms has, to date, resulted in criminal charges against eight individuals.
Investigations led by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents and local law enforcement officers assigned to the Rhode Island ATF Task Force, have identified at least 44 firearms purchased by individuals who allegedly provided false information and/or made false statements on ATF forms they signed and provided to licensed federal firearms dealers in Rhode Island in order to purchase firearms. Many of the firearms were later sold or transferred unlawfully by the purchasers to others.
To date, working collaboratively, Rhode Island federal and state prosecutors have charged five individuals in U.S. District Court by way of federal criminal complaints or indictments and three individuals in Rhode Island state court by way of state criminal complaints.
Law enforcement has been aided in their investigations into these so called “lie-and-buy” cases by the ATF New England Crime Intelligence Center (CGIC). The CGIC affords ATF’s state and local law enforcement partners with access to unique crime gun intelligence and databases that are critical to intelligence driven strategic and operational efforts to combat firearms trafficking and armed violent crime.
United States Attorney Stephen G. Dambruch commented, “Stemming the flow of illegal firearms into our neighborhoods by keeping them out of the hands of those who either purchase them illegally or are prohibited by law from possessing them is a top priority of this office and of our law enforcement partners.”
“When individuals illegally purchase firearms for persons who are prohibited under federal law to possess a firearm, also known as a “straw purchase”, there is a likelihood that firearm could be used in a crime of violence. ATF is committed to vigorously investigating violations of federal firearm laws in order to reduce gun violence and protect our communities,” Said Mickey Leadingham, Special Agent in Charge for the ATF Boston Field Division.
“Through cooperative investigation and prosecution of illegal firearm purchases, we have successfully taken dozens of illegal firearms out of the hands of dangerous criminals, which has undoubtedly saved lives,” said Rhode Island Attorney General Peter F. Kilmartin.
Defendants charged to date:
Molyka Preap, 31, of Providence, RI. It is alleged that in September and October 2017, Preap made false statements on ATF forms she signed and provided to a licensed federal firearms dealer when purchasing a total of three firearms. Preap has been charged by way of a federal criminal complaint with two counts of false statements during purchases of firearms.
Ademola Kayode, Jr., 25, of Warwick, RI. It is alleged that between April and June 2016, Kayode made false statements on ATF forms he signed and provided to a licensed federal firearms dealer when purchasing a total of eight firearms. Kayode is charged by way of a federal indictment with three counts each of false statements during purchases of firearms and possession of a firearm by an unlawful user of a controlled substance, and one count of false statements to a federal agent.
Darien Young, 23, of Providence, RI. It is alleged that during April and May 2017, Young made false statements on ATF forms she signed and provided to a licensed federal firearms dealer when purchasing a total of five firearms. Young is charged by way of a federal indictment with three counts each of false statements during purchases of firearms and possession of a firearm by an unlawful user of a controlled substance, and one count of false statements to a federal agent.
Lucilo Mena, 56, of Cranston, RI. It is alleged that in November 2016, Mena made false statements on ATF forms he signed and provided to a licensed federal firearms dealer when purchasing a firearm. It is alleged that beginning in April 2017, Mena engaged in the business of dealing firearms without a license. According to information presented to the court, it is alleged that the firearm purchased by Mena in Rhode Island in November 2016, which he later sold, was recovered during an investigation into a shooting in Boston in August 2017. Mena is charged by way of a federal indictment with one count each of false statements during the purchase of a firearm and engaging in the business of dealing firearms without a license.
Tarriek Gill, 24, of Cumberland, RI. It is alleged that in November and December 2016, Gill made false statements on ATF forms he signed and provided to a licensed federal firearms dealers when purchasing a total of nine firearms. Young is charged by way of a federal indictment with three counts each of false statements during purchases of firearms and possession of a firearm by an unlawful user of a controlled substance, and one count of engaging in the business of dealing firearms without a license.
Brian Luna, 22, of Providence, RI, and Alex Cuevas-Polanco, 20, Providence, RI. A joint ATF and Providence Police Department investigation determined that Luna purchased 3 firearms from licensed firearms dealers in May 2017. It is alleged that Luna made false statements on ATF forms he signed and provided to the firearms dealers. On June 20, 2017, Luna, who was accompanied by Cuevas-Polanco, purchased five additional firearms. It is alleged that false statements were made on ATF forms he signed and provided to the firearms dealers. Law enforcement later stopped their vehicle and recovered two firearms. A search by law enforcement of Luna’s residence resulted in the recovery of four firearms, including three from that day’s sale, as well as marijuana, crack cocaine and drug paraphernalia. The investigation determined that Cuevas-Polanco allegedly assisted with the trafficking of firearms. Providence Police arrested Luna and Cuevas-Polanco on numerous state firearms and drug charges.
Daniel Carides, 22, of Providence, RI. A joint ATF and Providence Police Department investigation determined that in August 2017, Carides purchased four firearms. Information developed during the investigation determined that Carides allegedly unlawfully transferred at least two firearms. Law enforcement subsequently executed a court authorized search of Carides residence and seized ten firearms and other evidence. On September 12, 2017, Providence Police arrested Carides on numerous state firearms and drug charges.
An indictment and criminal complaint are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Rhode Island State Police, and the Rhode Island Department of Corrections.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Defendants charged in U.S. District Court are being prosecuted by Assistant United States Attorneys Milind M. Shah and Ronald R. Gendron. Defendants charges in Rhode Island state court are being prosecuted by Special Assistant Attorneys General Jeffrey Morin and Joseph McBurney.
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East Cleveland man convicted of manslaughter indicted for having a firearmRead the Press Release
A federal grand jury indicted an East Cleveland man for using a firearm while trafficking marijuana, U.S. Attorney Justin E. Herdman said.
Keli Dunnican, 42, was indicted on one count each of possession with intent to distribute marijuana, use of a firearm in relation to drug trafficking and being a felon in possession of a firearm.
Dunnican possessed a Ruger, Model P95 9mm handgun and marijuana that was intended for distribution on November 8, 2017. Dunnican is prohibited from possessing a firearm due to prior felony convictions for involuntary manslaughter and felonious assault, according to the indictment.
The case was investigated by the Ohio Adult Parole Authority, the East Cleveland Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney James P. Lewis is prosecuting the case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dominican National Sentenced to 46 Months in Prison for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Worcester for illegally reentering the United States after deportation.
Wellington Eustate, 35, was sentenced by U.S. District Court Judge Timothy S. Hillman to 46 months in prison. Eustate will be subject to deportation proceedings upon completion of his sentence. In November 2017, Eustate pleaded guilty to one count of unlawful reentry of a deported alien.
In 2007, Eustate was convicted in federal court in Camden, N.J., of conspiring to distribute 500 grams or more of cocaine and received a sentence of 30 months in prison.
Upon his release from prison, Eustate was deported to the Dominican Republic. Eustate then illegally reentered the United States and, in 2012, was apprehended in New York, convicted and sent to prison.
Upon his release from prison in New York, Eustate was again deported, and again, he illegally reentered the United States. In October 2016, Eustate was arrested and charged in Worcester Superior Court with trafficking in 9,200 grams or more of heroin, trafficking in fentanyl (more than 10 grams), conspiracy to violate drug laws, and furnishing the police with a false name. Eustate was released from state custody on $75,000 cash bail, and then taken into custody by Immigration and Customs Enforcement and charged in federal court in Worcester with illegal reentry after deportation. Eustate’s state case is currently pending.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
District Court Orders Florida Company to Stop Distributing Adulterated and Misbranded DrugsRead the Press Release
A federal court permanently enjoined a Deltona, Florida, company from selling and distributing unapproved and misbranded new drugs, the Justice Department announced today.
In a complaint filed March 14 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that MyNicNaxs LLC, Chevonne Torres, and Michael Banner sold sexual-enhancement and weight-loss products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). The complaint alleged that the defendants marketed products as drugs that could help treat or prevent a host of serious conditions or diseases. According to the complaint, the defendants made such claims without FDA approval and without proof of safety and efficacy.
The complaint further alleged that FDA tests showed some of the defendants’ products contained undisclosed pharmaceutical ingredients such as sildenafil, the active pharmaceutical ingredient in Viagra; sibutramine, the active pharmaceutical ingredient in a drug that was withdrawn from the market after clinical data indicated that it posed an increased risk of heart attack and stroke; and phenolphthalein, an ingredient that FDA deemed “not generally recognized as safe and effective” after studies indicated that it was a potential carcinogenic risk. The defendants agreed to be bound by a consent decree of permanent injunction filed in U.S. District Court for the Middle District of Florida.
“When a company fails to disclose pharmaceutical ingredients in its products, consumer safety can be put at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure dietary supplement distributors provide accurate information about what is in their products.”
According to the complaint, no credible scientific evidence supported claims the defendants made that their products cured, mitigated, treated, or prevented a number of serious diseases. In addition, the complaint alleged that the defendants’ products failed to include adequate directions for use, such as dosages, warnings, and side effects. The consent decree, as entered by the court, requires the defendants to implement specific remedial measures to comply with the law and obtain written approval from the FDA before distributing such drugs in the future.
“The presence of misbranded drugs represents a threat to the people of our district and the United States,” said U.S. Attorney Maria Chapa Lopez. “This lawsuit and today’s decree demonstrates our office’s ongoing efforts to safeguard the public from the effects of this type of unlawful conduct.”
This matter was handled by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jeremy R. Bloor of the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement Anna K. Thompson of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at https://www.justice.gov/usao-mdfl.
District Court Orders Florida Company to Stop Distributing Adulterated and Misbranded DrugsRead the Press Release
Orlando, FL – A federal court permanently enjoined a Deltona company from selling and distributing unapproved and misbranded new drugs.
In a complaint filed March 14 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that MyNicNaxs LLC, Chevonne Torres, and Michael Banner sold sexual-enhancement and weight-loss products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). The complaint alleged that the defendants marketed products as drugs that could help treat or prevent a host of serious conditions or diseases. According to the complaint, the defendants made such claims without FDA approval and without proof of safety and efficacy.
The complaint further alleged that FDA tests showed some of the defendants’ products contained undisclosed pharmaceutical ingredients such as sildenafil, the active pharmaceutical ingredient in Viagra; sibutramine, the active pharmaceutical ingredient in a drug that was withdrawn from the market after clinical data indicated that it posed an increased risk of heart attack and stroke; and phenolphthalein, an ingredient that FDA deemed “not generally recognized as safe and effective” after studies indicated that it was a potential carcinogenic risk. The defendants agreed to be bound by a consent decree of permanent injunction filed in U.S. District Court for the Middle District of Florida.
“When a company fails to disclose pharmaceutical ingredients in its products, consumer safety can be put at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure dietary supplement distributors provide accurate information about what is in their products.”
According to the complaint, no credible scientific evidence supported claims the defendants made that their products cured, mitigated, treated, or prevented a number of serious diseases. In addition, the complaint alleged that the defendants’ products failed to include adequate directions for use, such as dosages, warnings, and side effects. The consent decree, as entered by the court, requires the defendants to implement specific remedial measures to comply with the law and obtain written approval from the FDA before distributing such drugs in the future.
“The presence of misbranded drugs represents a threat to the people of our district and the United States,” said U.S. Attorney Maria Chapa Lopez. “This lawsuit and today’s decree demonstrates our office’s ongoing efforts to safeguard the public from the effects of this type of unlawful conduct.”
This matter was handled by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jeremy R. Bloor of the U.S. Attorney’s Office for the Middle District of Florida and Associate Chief Counsel for Enforcement Anna K. Thompson of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Clarksburg man admits to his role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jordan Michael Conaway, of Clarksburg, West Virginia, has admitted to his role in a drug distribution operation, United States Attorney Bill Powell announced.
Conaway, age 23, pled guilty to one count of “Distribution of Fentanyl in Proximity of a Protected Location.” Conaway admitted to selling fentanyl on April 17, 2017 near Clarksburg City Park in Harrison County.
Conaway faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the cases on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
U.S. Magistrate Judge Michael John Aloi presided.Clairton Man Admits Being a “Runner” in a Drug Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Terrance Wade, 35, pleaded guilty to one count of conspiring with 20 other individuals, between March and June 2017, to distribute narcotics. In connection with the guilty plea, the court was advised thatWade was a "runner" for his codefendant, Skyler Carter, and at Carter’s instruction regularly delivered narcotics, including heroin and crack cocaine, as well as collected payment from Carter’s customers. Wade acknowledged that was responsible for the distribution of at least 28 grams of cocaine base and at least 20 grams of heroin in the Clairton, Pennsylvania area. He is the ninth of 21 defendants charged to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for September 5, 2018, at 9:30 a.m. Wade has a prior felony drug conviction, and as such, he is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Wade’s bond was revoked upon pleading guilty, and he will remain incarcerated pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.