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Monday 12 February 2018
Man Charged with Illegal Use of a Social Security NumberRead the Press Release
RUFINO MEJIA-ACOSTA, a/k/a Miguel A. Pacheco-Gonzalez (MEJIA-ACOSTA), age 38, a citizen of Mexico and residing in Chalmette, Louisiana, was charged in federal court in a one-count Bill of Information for illegal use of a Social Security Number.
MEJIA-ACOSTA faces a maximum term of imprisonment of not more than five years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, MEJIA-ACOSTA is subject to a period of supervised release after imprisonment of up to one year.
According to the Bill of Information, on or about July 3, 2017, MEJIA-ACOSTA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on a US Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him; all in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Love County Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Colby Ray Barrick, age 41, of Love County, Oklahoma, pled guilty to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about October 25, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Savage, Model 64, .22 caliber rifle, serial number 2593140, which had been shipped and transported in interstate commerce.The charges arose from an investigation by the Oklahoma Department of Wildlife Conservation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 Dean Burris represented the United States.
Jury Finds Eagle Butte Man Guilty of Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that Pete Knight, age 54, of Eagle Butte, South Dakota, was found guilty of Assaulting a Federal Officer as a result of a federal jury trial in Pierre, South Dakota. The verdict was returned on February 7, 2018.
The charges carry a maximum penalty of 8 years in custody and/or a $250,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Knight was indicted by a federal grand jury on June 14, 2017. The charge stemmed from an incident that occurred on May 8, 2017, in Ziebach County, when Sheriff Gary Cudmore responded to a call of a reckless driver. Sheriff Cudmore clocked the vehicle driving 95 mph and performed a traffic stop on the vehicle. Upon making contact with the driver, who is a tribal member, it was apparent that the person had been drinking and the Cheyenne River Sioux Tribe Police Department was contacted. The individual was placed in the back of Sheriff Cudmore’s patrol car until tribal officers arrived.
Prior to the tribal officers arriving, Knight and another individual stopped at the location of the traffic stop, as the vehicle stopped by Sheriff Cudmore belonged to Knight. Knight requested to talk to the occupant of the patrol car and the sheriff allowed it. When the door to the patrol vehicle was opened, Knight began to physically assault the occupant, who was handcuffed behind his back and defenseless. Sheriff Cudmore was able to pull Knight back, but Knight continued to get through the sheriff to get at the occupant. In the process, Knight shoved Sheriff Cudmore. Knight eventually left the scene.
Knight later returned riding a horse, and another altercation occurred. Knight was found not guilty regarding that incident.
U.S. Attorney Parsons stated, “Violence against our law enforcement officers will not be tolerated and will be prosecuted to the fullest extent of the law.”
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for April 30, 2018. The defendant is to self-report to the custody of the U.S. Marshals Service on February 14, 2018.
Illinois Resident Sentenced for Synthetic Drug ConspiracyRead the Press Release
FRESNO, Calif. — Timothy Ortiz, 47, of Waukegan, Illinois, was sentenced today to three years in prison for conspiring to ship misbranded synthetic drugs in interstate commerce with intent to defraud , U.S. Attorney McGregor W. Scott announced.
On August 14, 2017, Ortiz pleaded guilty. According to court documents, from December 2011 to October 2013, he, along with his co-defendants, Douglas Jason Way, 44, of Evanston, Illinois: Timothy New, 35, of Pensacola, Florida; and Natalie Middleton, 32, of Clovis, California, were involved in the importation of chemicals from China that were substantially similar in structure and pharmacological effect to a Schedule I controlled substance. Ortiz and his associates then diluted the chemicals with acetone and mixed it with dried plant material to produce a smokeable synthetic drug commonly known on the street as “spice.” The drugs were packaged and falsely labeled to say that the contents were legal and were not intended for human consumption, when in fact they were illegal and were intended for human consumption.
Ortiz and his associates then shipped the drug from warehouses in Pensacola, Florida and Millbrae and Stockton, California to smoke shops, gas stations, and retail outlets throughout the United States. Ortiz, utilizing an alias of Michael Fitton, set up and managed the Millbrae processing lab after the synthetic drug company was purchased by the owner of multiple smoke shops in the Central Valley operating under the name of The Stuffed Pipe that sold the synthetic drugs.
According to the plea agreement, Ortiz and his co-defendants shipped at least 24 tons of misbranded smokeable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11 to smoke shops and retail outlets throughout the United States. They generated in excess of $33 million in sales. At the time of the illicit enterprise, AM-2201 was a schedule I controlled substance and XLR11 was a controlled substance analogue that was placed under schedule I as a controlled substance in May 2013. In sentencing Ortiz, District Judge Dale A. Drozd also ordered Ortiz to forfeit $109,590, which Ortiz had derived from his four-month participation in the illegal operation.
This case is the product of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. As a result of this investigation, law enforcement agencies seized and forfeited over $6.6 million representing drug proceeds.
Co-defendant New previously entered a guilty plea to the fraudulent shipment of misbranded drugs and is currently serving a 30-month sentence. Middleton previously entered a guilty plea to money laundering, was sentenced to four months in prison, and is currently under supervised release for two years. Way has requested a jury trial, which is set for June 16, 2018. Way is charged with multiple controlled substance offenses, in addition to the misbranding charge, and faces a maximum penalty of 20 years in prison and a fine of $10 million. The charges against him are only allegations; Way is presumed innocent until and unless proven guilty beyond a reasonable doubt.
ISIS Supporter Sentenced to Prison for Firearms OffenseRead the Press Release
Casey Charles Spain, 29, of Richmond, Virginia, who is a previously convicted felon and supporter of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, was sentenced today to the statutory maximum of 10 years’ imprisonment, for being a felon in possession of a firearm less than three weeks after he was released from prison.
Acting Assistant Attorney General for National Security Edward C. O’Callaghan, Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement. The sentence was issued by U.S. District Judge John A. Gibney, Jr.
According to court documents and statements made in court proceedings, Spain was in prison for over seven years after being convicted for abducting a 15-year-old girl with the intent to rape her. Separate and apart from this incident, Spain previously served time in prison for stabbing an individual with a sword. During his most recent period in prison, Spain became radicalized and swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also obtained a tattoo of the ISIS flag on his back, and repeatedly expressed a desire to engage in acts of violence. Spain was reportedly fixated on attacking a target such as the Marine Corps Base in Quantico, and was excited about potentially attacking police stations, as well as an armory in Richmond.
After Spain was released from prison on Aug. 11, 2017, he discussed on recorded telephone calls with still-incarcerated prisoners his desire to travel overseas and join ISIS. The FBI began conducting surveillance of Spain immediately upon his release, including making covert contact with him using FBI undercover employees (UCE) and a Confidential Human Source (CHS). Spain spoke on multiple occasions to the CHS about his strong desire to obtain a firearm. During that same time period, Spain established a Facebook account to speak with individuals located overseas about ISIS and his desire serve as a mujahid (fighter) for the terrorist organization.
During a meeting on Aug. 30, 2017, with the CHS and a UCE, Spain described his intention to purchase a semiautomatic handgun with a 50-round barrel canister, and that he had made arrangements to buy the handgun from an individual online. Given Spain’s criminal history, his desire to obtain a firearm, and his apparent impatience to obtain one, the CHS — as part of a controlled FBI undercover operation — offered to provide Spain what the CHS described as his own personal weapon. In reality, the firearm, which was a 9mm Glock semiautomatic handgun, was the property of the FBI that had been rendered inert for safety reasons.
The next day, as part of the undercover operation, the CHS and UCE met Spain outside of his Richmond residence. The CHS provided Spain the Glock handgun, at which point members of the FBI Richmond SWAT team moved in to arrest Spain. Spain initially attempted to escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued and quickly apprehended him.
Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Brian Hood prosecuted the case.
ISIS Supporter Sentenced to 10 Years in PrisonRead the Press Release
RICHMOND, Va. – A man who is a previously convicted felon and supporter of the Islamic State of Iraq and al-Sham (ISIS), was sentenced today to the statutory of maximum of 10 years in prison for being a felon in possession of a firearm less than three weeks after he was released from prison.
According to court documents and statements made in court proceedings, Casey Charles Spain, 29, of Richmond, was in prison for over seven years after being convicted for abducting a 15-year-old girl with the intent to rape her. Separate and apart from this incident, Spain previously served time in prison for stabbing an individual with a sword. During his most recent period in prison, Spain became radicalized and swore a pledge of loyalty, commonly known as bayat, to Abu Bakr al-Baghdadi, the leader of ISIS. Spain also obtained a tattoo of the ISIS flag on his back, and repeatedly expressed a desire to engage in acts of violence. Spain was reportedly fixated on attacking a target such as the Marine Corps Base in Quantico, and was excited about potentially attacking police stations, as well as an armory in Richmond.
After Spain was released from prison on Aug. 11, 2017, he discussed on recorded telephone calls with still-incarcerated prisoners his desire to travel overseas and join ISIS. The FBI began conducting surveillance of Spain immediately upon his release, including making covert contact with him using FBI undercover employees (UCE) and a Confidential Human Source (CHS). Spain spoke on multiple occasions to the CHS about his strong desire to obtain a firearm. During that same time period, Spain established a Facebook account to speak with individuals located overseas about ISIS and his desire serve as a mujahid (fighter) for the terrorist organization.
During a meeting on Aug. 30, 2017, with the CHS and a UCE, Spain described his intention to purchase a semiautomatic handgun with a 50-round barrel canister, and that he had made arrangements to buy the handgun from an individual online. Given Spain’s criminal history, his desire to obtain a firearm, and his apparent impatience to obtain one, the CHS—as part of a controlled FBI undercover operation—offered to provide Spain what the CHS described as his own personal weapon. In reality, the firearm, which was a 9mm Glock semiautomatic handgun, was the property of the FBI that had been rendered inert for safety reasons.
The next day, as part of the undercover operation, the CHS and UCE met Spain outside of his Richmond residence. The CHS provided Spain the Glock handgun, at which point members of the FBI Richmond SWAT team moved in to arrest Spain. Spain initially attempted to escape arrest by running and jumping a nearby fence, but FBI SWAT members pursued and quickly apprehended him.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Trial Attorney Raj Parekh of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorney Brian Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-123.
Honduran Man Sentenced to One Year in Prison for Returning to the United States Following Two DeportationsRead the Press Release
A Honduran man who had previously been deported following a federal conviction for illegal reentry was sentenced today to one year in federal prison.
Geovany Rodriguez-Carrasco, age 38, a citizen of Honduras who had been living in Cedar Rapids, Iowa, received the prison term after a December 1, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Rodriguez-Carrasco admitted he illegally reentered the United States without permission after having been last deported from the United States in August 2013. Prior to his deportation, Rodriguez-Carrasco was convicted in July 2013 in the United States District Court for the Northern District of Iowa on one count of illegal reentry of a removed alien, a felony offense. Rodriguez-Carrasco was also deported in 2004 following a misdemeanor conviction in the United States District Court for the Southern District of Texas for illegal entry into the United States.
Rodriguez-Carrasco was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Rodriguez-Carrasco was sentenced to 12 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez-Carrasco 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 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 17-CR-87.
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Hialeah Man Convicted of Conspiracy to Possess with Intent to Distribute Five Kilograms or More of CocaineRead the Press Release
A Miami jury convicted a Hialeah resident of conspiracy to possess with intent to distribute five kilograms or more of cocaine after a five-day trial.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Maikel Vigil Gallardo, 35, was convicted of one count of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, in violation of 21 U.S.C. § 846. He faces a statutory maximum of life imprisonment, and sentencing is scheduled before U.S. District Judge Marcia G. Cooke, on April 25, 2018, at 10:30 a.m.
The evidence presented at trial established that in April 2017, Gallardo met on multiple occasions with an FBI confidential human source (“CHS”) to develop a multi-kilogram cocaine pipeline from Miami to Chicago, Illinois. During the trial, the United States introduced recordings from these meetings, in which Gallardo talked about his experiences trafficking cocaine and marijuana around the United States, using trucking routes and paid off customs checkpoints to evade law enforcement. On April 26, Gallardo delivered a one-kilogram sample of cocaine to the CHS in the Orlando area, which triggered his arrest.
Mr. Greenberg commended the investigative efforts of the FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Jonathan K. Osborne and Breezye Telfair.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused the nation’s illicit drug trafficking threats.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hartford Man Sentenced to 40 Months in Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KHADAFI CASTRO, 40, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine.
According to court documents and statements made in court, between March and August 2017, investigators made eight controlled purchases of heroin, fentanyl and/or crack cocaine from CASTRO on Hungerford Street in Hartford. During the last three drug sales, all of which occurred in August 2017, CASTRO was assisted by his associate, Todd Peters.
CASTRO has been detained since his arrest on August 14, 2017. On November 20, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack”).
CASTRO has a criminal history that spans more than 20 years and includes 11 felony convictions, including convictions for sexual assault, criminal weapon possession, and drug trafficking. He was on state probation while engaged in the drug trafficking activity that led to this federal conviction.
Peters, of Hartford, pleaded guilty on November 16, 2017. He awaits sentencing.
This matter was investigated by the Hartford Police Department’s Vice and Narcotics Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Marc H. Silverman.
Harrison County man sentenced for firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jason Garcia Cano, of Clarksburg, West Virginia, was sentenced today to 27 months incarceration for a firearm charge, United States Attorney Bill Powell announced.
Cano, age 42, pled guilty to one count of “Unlawful Possession of a Firearm” in October 2017. Cano, having been previously convicted of a felony in the 426th District Court in Bell County, Texas, admitted to possessing a .22 caliber revolver in Harrison County in October 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Glenville Man Sentenced to 120 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Glenn Mears, age 46, of Glenville, New York, was sentenced today to 120 months in prison for distributing and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Kevin Kelly of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his guilty plea, Mears admitted to distributing child pornography using an Internet-based messaging application, and to possessing more than 1,000 images and videos of child pornography on 10 compact discs. Mears also admitted that he possessed child pornography involving prepubescent children and children under 12 years old.
Senior United States District Judge Thomas J. McAvoy also imposed a life term of supervised release, which will start after Mears is released from prison. As a result of his conviction, Mears will be required to register as a sex offender.
This case was investigated by HSI and the New York State Police, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ 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 https://www.justice.gov/psc.
Gilmer County man sentenced for illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA –Jeremy Allen Wolfe, of Glenville, West Virginia was sentenced today to 92 months incarceration for illegal possession of a firearm, United States Attorney Bill Powell announced.
Wolfe , age 32, pled guilty to one count of “Felon in Possession of Firearm” in September 2017. In November 2014, Wolfe was found in possession of multiple firearms, including three rifles and two shotguns, in Calhoun County, WV. Wolfe, having been convicted of a crime punishable by imprisonment for a term exceeding one year, that is, Delivery of a Controlled Substance, in Gilmer County, WV is prohibited from possessing firearms.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
Senior U.S. District Judge Irene M. Keeley presided.Getaway Driver Sentenced in Village West RobberyRead the Press Release
KANSAS CITY, KAN. – An Illinois man was sentenced Monday to 73 months in federal prison for driving the getaway car in a $53,000 holdup at a Verizon store in Village West, U.S. Attorney Stephen McAllister said. The robbers held store employees at gunpoint and bound them with zip ties.
Terry Curtis, 34, Rockford, Il., pleaded guilty to one count of commercial robbery. In his plea, he admitted that on Sept. 14, 2016, he was involved when four men robbed the Verizon Wireless store at 10621 Village West Parkway. Two of the robbers entered the store, followed two minutes later by the other two. The robbers locked the door and ordered the employees and a customer into a break room. The robbers ordered them to lay face down on the floor and tied their hands behind their backs. The robbers forced an employee to open a safe before they fled the store with phones and cash worth $53,000. Eventually, an employee managed to get loose and call police.
Investigators used surveillance photos from the robbery to tie the Kansas City robbery to a similar robbery weeks earlier at an AT&T Store in Rochester, Minn. They also received an anonymous call that led them to one of the co-defendants who was on parole in Illinois.
During the investigations, agents learned that some of the defendants in the Verizon robbery were part of a group involved in dozens of similar robberies in several states.
Co-defendants who are awaiting trial include:
Mario Lambert, 33, Rockford, Il.
Sir T. Love, 32, Rockford, Il.
Domonique V. Walker, 26, Rockford, Il.
Sharod Pitts, 35, Chicago, Il.
McAllister commended the Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Franklin County Man Charged in Connection with Large Cocaine SeizureRead the Press Release
SYRACUSE, NEW YORK – Jake Patnode, age 24, of Hogansburg, New York, was arrested on Saturday and charged with conspiracy to possess with intent to distribute cocaine.
The announcement was made by United States Attorney Grant C. Jaquith, U.S. Homeland Security Investigations (HSI)-Buffalo Field Office, Special Agent in Charge Kevin Kelly, Oswego County District Attorney Gregory Oakes, and Oswego County Sheriff Reuel A. Todd.
According to a criminal complaint, Oswego County Sheriff’s Deputies seized approximately 50 kilograms (110 pounds) of cocaine from a vehicle driven by the defendant northbound on Interstate Route 81 in the Oswego County Town of Hastings late Saturday evening after it was observed exceeding the posted speed limit. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
Patnode appeared in federal court today and was ordered held without bail pending a hearing scheduled for February 15, 2018.
The charge filed against Patnode carries a minimum sentence of 10 years and a maximum sentence of life in prison, a fine of up to $10 million and a term of 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 HSI and the Oswego County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Former Union Officer Sentenced to 1½ Years for Embezzling over $280,000 in Union FundsRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Ryan Jones, 35 of Bath, Maine was sentenced today in U.S. District Court by Judge George Z. Singal to 1½ years in prison and three years of supervised release for embezzling $280,865 from a union during a period when he served as an officer of that union. He was also ordered to pay $280,865 in restitution. He pleaded guilty on September 6, 2017.
According to court records, from 2009 until January 2017, the defendant was the Secretary-Treasurer of the International Association of Machinists and Aerospace Workers, Local Lodge S6, a labor union. The defendant’s tenure ended when he failed to win re-election. In January, the newly elected union officials discovered discrepancies with union finances. The ensuing federal investigation revealed that the defendant made almost 200 unauthorized withdrawals from the union’s bank account, he fabricated monthly bank statements to conceal his withdrawals, he provided the fabricated bank statements to union auditors to deceive them, and he embezzled about $280,865 between May 2012 and November 2016.
The investigation was conducted by the Bath Police Department; the U.S. Department of Labor, Office of Labor-Management Standards; and the Federal Bureau of Investigation.
Former Niagara Falls Police Officer, Two Co-Defendants Plead Guilty for Their Roles in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that former Niagara Falls, NY, Police Officer Stephanie A. Costanzo, 29, pleaded guilty to managing a drug involved premises before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine. In addition, co-defendants Raymond Hopson and Lindsay Carrier pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine which is punishable by a mandatory minimum sentence of five years in prison, a maximum of 40 years and a fine of $5,000,000.
Assistant U.S. Attorney Joel Violanti, who is handling the case, stated that between July 28, 2016, and November 8, 2016, Raymond Hopson made several sales of crack cocaine to an undercover (UC) officer posing as a drug customer. During that time, Hopson was living with Stephanie Costanzo, at her residence on Grand Avenue in Niagara Falls. Hopson would store some of his cocaine, along with paraphernalia used to weigh and distribute the cocaine, at the residence.
On November 9, 2016, Special Agents from the Drug Enforcement Administration (DEA), along with the Niagara Falls Police Department executed a search warrant at Costanzo’s residence. Agents and officers recovered approximately 5.6 grams of cocaine, a digital scale used for weighing and distributing the cocaine, and drug paraphernalia used to package and distribute the cocaine. Although she did not participate in the distribution of the controlled substances, Costanzo was aware that Hopson stored his cocaine and paraphernalia at her residence.
Lindsay Carrier conspired with Raymond Hopson to distribute crack cocaine. On five occasions between July 28, 2016, and November 8, 2016, Hopson obtained crack cocaine from Carrier and then sold it to an undercover officer. A search warrant executed at the Willow Avenue residence of Carrier’s mother, resulted in the seizure of quantities of cocaine and crack cocaine.
The pleas are the result of an investigation by the Niagara Falls Police department, under the direction of Superintendent Bryan Dalporto, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Costanzo is scheduled to be sentenced on May 30, 2018, at 12:30 p.m. before Judge Arcara. Hopson and Carrier are scheduled to be sentenced on May 29, 2018, at 12:30 p.m. and 1:00 p.m. respectively, also before Judge Arcara.
Former Facilities Manager Sentenced to 30 Months in Prison for Theft from San Diego Workforce PartnershipRead the Press Release
Assistant U. S. Attorneys Emily Allen (619) 546-9738 and Benjamin Katz (619) 546-9604
NEWS RELEASE SUMMARY – February 12, 2018
SAN DIEGO – Jared Palmer, a former facilities manager for the San Diego Workforce Partnership, was sentenced to 30 months in prison today for embezzling more than $450,000 from the local Workforce Development Board that provides job training and placement to San Diego county residents and employers.
U.S. District Court Judge Larry A. Burns also ordered Palmer to pay $455,606.82 in restitution to the Partnership (SDWP).
According to court records, Palmer, as facilities manager, was responsible for approving payment of invoices submitted by janitorial companies contracted to clean SDWP’s facilities. Between 2011 and 2016, Palmer instructed these contractors to purchase items that he claimed were for SDWP’s use, including Nest Smart Thermostats, electronics, and pre-paid debit cards. Palmer then stole the items and replaced the hundreds of invoices that included the cost of these stolen items with false invoices that made it appear as if all of the charges were for legitimate janitorial services. Over the course of five years, Palmer’s scheme netted him at least $455,606.
Because SDWP is a Workforce Development Board funded largely by federal grant dollars, Palmer was convicted of Theft of Federal Program Funds, in violation of 18 U.S.C. § 666.
At sentencing, Judge Burns noted that Palmer’s theft consisted of “hundreds of discrete thefts that would have kept going if not discovered.” Judge Burns noted that Palmer conducted the theft with “great stealth, and great planning” and that the theft had “egregious consequences, not only for [SDWP] but also for the people it assists.”
“This organization does important work that provides job training, placement, and services to thousands of San Diegans every year,” said U.S. Attorney Adam Braverman. “This sentence shows that those who attempt to steal taxpayer dollars intended for worthy causes like this one will be brought to justice.”
“Federal grant dollars were stolen from the San Diego Workforce Partnership by Mr. Palmer, a trusted manager at this non-profit organization,” said FBI Special Agent in Charge John A. Brown. “The FBI will continue to expose and bring criminals to justice who attempt to line their pockets at the expense of federally funded programs intended to benefit our community.”
DEFENDANT Case Number: 17-cr-2157-LAB
Jared Palmer Age: 42
SUMMARY OF CHARGES
Theft of Federal Program Funds, 18 U.S.C. § 666
Maximum penalty: 10 years’ imprisonment, fine double amount obtained, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
U.S. Department of Labor – Office of Inspector General
Former Division of Highways engineer pleads guilty for fraudulent schemeRead the Press Release
CHARLESTON, W.Va. – A Lewis County man pleaded guilty today for his fake hotel invoice and expense report scheme to defraud the State of West Virginia, announced United States Attorney Mike Stuart. Steven Hull, 54, of Jane Lew, entered his guilty plea to mail fraud. U.S. Attorney Stuart commended the investigative efforts of the West Virginia Legislature Commission on Special Investigations.
“This scheme was literally highway robbery. Stealing from West Virginia taxpayers is a crime you won’t get away with,” said U.S. Attorney Stuart. “We take our obligation to protect taxpayer dollars extremely seriously, and I can assure you that my office is committed to uncovering public corruption and aggressively prosecuting this kind of theft.”
Hull admitted that from January 2011 through January 2017, he submitted false invoices attached to inflated expense reports for reimbursement by the State of West Virginia. Hull worked as an engineering technician at the West Virginia Division of Highways, and often traveled as part of his job, staying overnight throughout West Virginia. After each trip, the State of West Virginia would reimburse him. Hull admitted that during the course of his scheme, he provided expense reports for reimbursement that falsely represented the number of days he stayed at hotels, and further falsely represented that he paid for rooms for all those days.
Hull also admitted that from June 2014 until the end of his scheme, he entirely fabricated his hotel room expense reports. The reports would often state that he stayed at a Holiday Inn for a week at a time, when he was actually renting a room on a monthly basis from a less expensive hotel. Hull further admitted that he pocketed the difference in price between his monthly rental and his reimbursements. To disguise the scheme, Hull would produce detailed entries to legitimize the appearance of the fake invoices, including line items for taxes and a hotel rewards code number. From February 2011 through January 2017, Hull received $70,653.14 from submitting false hotel invoices. He paid approximately $18,144 for his monthly rental from June 2014 to December 2016.
Hull faces up to 20 years in federal prison when he is sentenced on May 15, 2018. As part of the plea agreement, he has also agreed to pay at least $52,509.14 in restitution.
Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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Former Arkansas Lawmaker Pleads Guilty to $4 Million Charity SchemeRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a former Arkansas state representative pleaded guilty in federal court today to his role in a conspiracy to embezzle more than $4 million from a Springfield, Mo.-based health care charity.
Eddie Wayne Cooper, 51, of Melbourne, Ark., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of conspiracy to embezzle from the nonprofit organization.
By pleading guilty today, Cooper admitted that he conspired with several executives of Preferred Family Healthcare, Inc., a non-profit charity headquartered in Springfield, to use the charity’s funds for unlawful political contributions, for excessive, unreported lobbying and to financially benefit themselves. Cooper received a total of at least $387,501 from a lobbying firm and at least $63,000 in kickbacks as a result of his participation in the conspiracy. Under the terms of today’s plea agreement, Cooper must forfeit his gain from the conspiracy to the government.
Cooper was an Arkansas State Representative from 2006 through January 2011, and a lobbyist registered with the Arkansas Secretary of State beginning Jan. 20, 2011. On April 20, 2009, Cooper was hired to the full-time position of regional director for Preferred Family Healthcare. Cooper’s employment with the charity ended on April 26, 2017. Cooper was a member of the charity’s board of directors from October 2009 through April 2015; he also worked as a lobbyist.
Court documents cite, but do not identify by name, five additional co-conspirators who are not charged in the fraud scheme. Person #1, Person #2 and Person #3 – all residents of Springfield – were executives at the charity. They include the founder and chief financial officer of the charity, the charity’s chief operating officer and the charity’s chief executive officer. Person #4, a resident of Rogers, Ark., served as an executive for company operations in the state of Arkansas. Person #4 also operated two lobbying firms.
According to today’s plea agreement, conspirators engaged in multiple schemes to unlawfully use the charity’s funds to make political contributions, for excessive and unreported lobbying and political advocacy, and to unjustly enrich themselves. For example, conspirators caused personal contributions to elected officials and their political campaigns to be reimbursed by the charity. Such indirect contributions are prohibited by law just as if the payments had been made by the charity directly.
In order to provide a veneer of legitimacy for the kickbacks paid to themselves and others, and to disguise the nature and source of the payments, conspirators caused the payments to be described in the records as business expenses, such as “consulting” and “training” services, and executed sham “consulting agreements.”
Part of the scheme involved $3 million in payments and kickbacks with a company identified in court documents as Lobbying Firm A, an Arkansas firm owned and operated by Person #4 that also employed Cooper as a lobbyist.
Preferred Family Healthcare paid Lobbying Firm A to provide lobbying and advocacy services. Cooper and others solicited the assistance of elected and appointed officials regarding legislative issues that impacted the charity, in particular matters involving the charity, and in steering grants and other sources of funding to the charity from 2010 through 2017. These funding sources included proceeds from the Arkansas General Improvement Fund.
Preferred Family Healthcare paid Lobbying Firm A more than $3 million from 2010 to 2017. These checks were falsely classified as a consulting expense in the books and records of the charity, when in fact the checks were payments for lobbying services, including direct contact with elected and appointed public officials, and for kickbacks paid to Person #1. From 2010 through 2015, the plea agreement says, Person #4 paid $640,500 in kickbacks to Person #1 by way of checks, and on numerous additional occasions, paid kickbacks in cash.
Part of the scheme also involved nearly $1 million in payments and kickbacks with a Philadelphia, Penn.-based lobbying firm. Donald Andrew Jones, also known as “D.A.” Jones, 62, of Willingboro, N.J., pleaded guilty on Dec. 18, 2017, to his role in the conspiracy.
Jones’s firm, D.A. Jones & Associates, based in Philadelphia, provides political and advocacy services, including consulting, analysis, and public relations. Jones admitted that he was paid approximately $973,807 by Preferred Family Healthcare for illegal lobbying and political activity on behalf of the charity. Two co-conspirators received a total of $264,000 in kickbacks from Jones.
According to court documents, Jones occasionally suggested that charity executives make political contributions to legislators they wanted to influence and/or thank for assistance. From time to time, Jones delivered their contribution checks directly to the legislators in Washington D.C., to increase the impact of the donations.
Between Jan. 12, 2012, and Jan. 17, 2017, Jones paid Person #4 a total of $219,000 in kickbacks. Additionally, at the direction of Person #4, Jones paid Cooper kickbacks of $25,000 on Jan. 8, 2013, and $20,000 on Dec. 26, 2013. On Jan. 18, 2012, Person #4 caused Lobbying Firm A to issue an $18,000 check Cooper, constituting Cooper’s share of Jones’s Jan. 2, 2012, kickback payment.
Under federal statutes, Cooper is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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.
Preferred Family Healthcare & Dayspring Behavioral Health Services
Preferred Family Healthcare and its subsidiaries provide a variety of services to individuals, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. The charity, which reported more than $180 million in total revenue in 2016, received Medicaid reimbursements from the states of Missouri, Arkansas, Kansas and Oklahoma. The federal portion of those payments totaled more than $255 million from 2011 to 2016. The charity also received more than $53 million from the federal government (the Departments of Health and Human Services, Labor, Agriculture, Housing and Urban Development, Veterans Affairs, and Justice) under programs involving grants, contracts, loans, guarantees, insurance and other forms of federal assistance from July 1, 2010, to June 30, 2016.
Originally, and for most of its existence, Preferred Family Healthcare was known as Alternative Opportunities, Inc., which was incorporated in 1991. Alternative Opportunities merged with Preferred Family Healthcare of Kirksville, Mo., on May 1, 2015.
Dayspring Behavioral Health Services was an Arkansas company providing behavioral health services, which was acquired by Alternative Opportunities in 2007 and thereafter continued as a business alias of the charity. Doing business as Dayspring, the charity operated dozens of clinics throughout the state of Arkansas, offering a variety of behavioral health services to individuals, families, and groups.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the FDIC. This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, the Eastern District of Pennsylvania and the Public Integrity Section of the Department of Justice.
Five defendants plead guilty for roles in federal heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – Five defendants implicated in a federal heroin conspiracy pled guilty today, announced United States Attorney Mike Stuart. Ralph White, Jennifer Benson, Rachel Kuhn, all 36 and of Parkersburg, and Dennis Carter, 28, of Detroit, entered their guilty pleas to conspiracy to distribute 100 grams or more of heroin. Additionally, Heather Wells, 25, of Parkersburg, entered her guilty plea to distribution of heroin.
U.S. Attorney Stuart commended the collaborative investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Parkersburg Drug Task Force, the West Virginia State Police, the Wood County Sheriff’s Department, and the Police Departments of the cities of Parkersburg, Vienna, and Williamstown.
“This is exactly the kind of investigation and prosecution that’s going to help us take back our streets from the opioid crisis,” said U.S. Attorney Stuart. “Nearly a dozen drug criminals are facing hard time behind bars, and all as a result of the efforts of several law enforcement agencies working together. Job well done.”
White, Benson, Kuhn, and Carter admitted to their involvement with several other individuals in distributing heroin at various locations throughout the Parkersburg area. In addition, White, Kuhn, and Wells admitted selling heroin to a confidential informant working with the Parkersburg Drug Task Force and the FBI on numerous occasions between November 2016 and March 2017. Benson and Carter admitted distributing between one and three kilograms of heroin, while White and Kuhn admitted to distributing between 100 and 400 grams of heroin.
White, Benson, Kuhn, and Carter all face at least five and up to 40 years in federal prison when they are sentenced on May 7, 2018. Wells faces up to 20 years imprisonment when she is sentenced on the same date.
The five defendant who pled guilty today join Debra Martin, Joseph Reeder-Shaw, Bernard Spann, Jonathan Brown, and Sir Pritis Williams, all codefendants involved in the same conspiracy, who previously pled guilty to conspiracy to distribute 100 grams or more of heroin. These defendants face at least five and up to 40 years in federal prison when they are sentenced in April 2018. Additionally, Kennedy Michele Walker previously pled guilty to distributing heroin supplied by this organization, and she faces up to 20 years imprisonment when she is sentenced in April 2018.
Assistant United States Attorney John Frail is in charge of these prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
HOUSTON – Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Four of the defendants - Luis Carlos De Leon Perez (De Leon), 41, Nervis Gerardo Villalobos Cardenas (Villalobos), 50, Cesar David Rincon Godoy (Cesar Rincon), 50, and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017. Cesar Rincon was extradited from Spain on Feb. 9, 2018, and made his initial appearance today before U.S. Magistrate Judge Stephen Smith of the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant - Alejandro Isturiz Chiesa (Isturiz), 33, remains at large and a warrant remains outstanding for his arrest. All five defendants are citizens of Venezuela. De Leon is also a U.S. citizen.
De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering, while Cesar Rincon is charged with two counts of conspiracy to commit money laundering. De Leon, Cesar Rincon and Reiter are charged with four counts of money laundering, while Villalobos and Isturiz are charged with one and five counts of money laundering, respectively. De Leon and Villalobos are each also charged with one count of conspiracy to violate the FCPA.
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”
“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan. “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate. Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”
“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.”
The indictment alleges the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA. According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. The indictment further alleges the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions including to, from or through bank accounts in the United States. In some instances, they allegedly laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.
According to the indictment, two PDVSA vendors - Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida - sent more than $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers. The indictment alleges those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are currently awaiting sentencing.
With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger and ongoing investigation by the U.S. government into bribery at PDVSA.
HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid as well as from IRS Criminal Investigation. Deputy Chief John Pearson and Assistant U.S. Attorney (AUSA) Robert S. Johnson are prosecuting the case along with Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section. AUSA Kristine Rollinson is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Five Former Venezuelan Government Officials Charged in Money Laundering Scheme Involving Foreign BriberyRead the Press Release
Charges were unsealed today against five former Venezuelan government officials for their alleged participation in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA). Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.
Four of the defendants, Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Cesar David Rincon Godoy (Cesar Rincon), 50; and Rafael Ernesto Reiter Munoz (Reiter), 39, were arrested in Spain in October 2017 by Spanish authorities on arrest warrants based on a 20-count indictment returned in the Southern District of Texas on Aug. 23, 2017. Cesar Rincon was extradited from Spain on Feb. 9, and made his initial appearance today before U.S. Magistrate Judge MJ Stephen Smith of the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant, Alejandro Isturiz Chiesa (Isturiz), 33, remains at large. All five defendants are citizens of Venezuela; De Leon is also a U.S. citizen.
De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering. Cesar Rincon is charged with two counts of conspiracy to commit money laundering. Each of the defendants is charged with one or more counts of money laundering, as follows: De Leon, Cesar Rincon and Reiter, four counts each; Villalobos, one count; and Isturiz, five counts. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA.
“Corruption threatens economic and political stability, and victimizes ordinary law-abiding people by diverting public funds into the pockets of corrupt officials and bribe payers,” said Acting Assistant Attorney General Cronan. “The charges announced today demonstrate our commitment to fighting corruption at its source and to prosecuting those who allegedly launder their illicit gains through American financial institutions and real estate. Through cases like this, we are sending a strong message to corrupt foreign officials: if you launder your ill-gotten gains through the United States, you will be prosecuted.”
“Effective deterrence of corruption requires prosecution of culpable individuals, wherever those individuals are located,” said U.S. Attorney Patrick. “We will continue to enforce the FCPA against those that avail themselves of the privileges of the American marketplace.”
“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes” said Special Agent in Charge Dawson. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.
The indictment alleges that the five defendants, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA. According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were residents of the United States, and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. The indictment further alleges that the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions, including to, from or through bank accounts in the United States, and, in some instances, laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.
According to the indictment, two PDVSA vendors, Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, sent over $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner and De Leon and Villalobos were authorized signers. The indictment alleges that those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are currently awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the unsealing of the indictment today, the Justice Department has announced charges against 15 individuals, 10 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from Internal Revenue Service Criminal Investigation. Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Federal Jury Finds Scientist Guilty of Defrauding NASA, Navy, and Missile Defense AgencyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a jury has found Akbar Fard (53, formerly of Tampa) guilty of wire fraud. He faces a maximum penalty of 20 years in federal prison; his sentencing hearing is scheduled for May 24, 2018.
Fard was indicted on March 22, 2017.
According to testimony and evidence presented at trial, Fard defrauded the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs of the National Aeronautics and Space Administration (NASA), the Missile Defense Agency, and the United States Navy out of approximately $2.1 million. The SBIR/STTR programs support scientific excellence and technological innovation through the investment of federal research funds. Fard thwarted the fundamental purpose of these programs by using the funds to support his lifestyle instead of purchasing research materials.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Special Agent in Charge John Corbett, Central Field Office. “This jury verdict serves as a staunch reminder that such conduct will not be tolerated. The NASA OIG applauds the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to our continued cooperation with our law enforcement partners in the pursuit of justice.”
“This verdict demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that federal contractors do not defraud the U.S. Government and waste precious taxpayer dollars. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs,” said Special Agent in Charge John F. Khin, Southeast Field Office.
“The Naval Criminal Investigative Service works tirelessly to identify individuals who attempt to defraud United States Naval and Marine Corps forces around the globe. This verdict reflects a joint effort with our partner agencies and the Department of Justice to bring accountability to those individuals who waste taxpayer dollars,” said Special Agent in Charge Michael Wiest, NCIS Southeast Field Office.
This case was investigated by NASA’s Office of the Inspector General, the Defense Criminal Investigative Service, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Jury Convicts Rocky Mount Man of Felon in Possession ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that last Friday evening, BAKARI MAURICE TEACHEY aka “Double R”, a Rocky Mount resident, was convicted in a three-day jury trial before Senior United States District Judge W. Earl Britt. The jury found TEACHEY guilty of 3-counts of Possession of a Firearm and/or Ammunition by a Convicted Felon.
The evidence at trial showed that TEACHEY pistol-whipped a man on May 9, 2017, at his estranged wife’s home, and the victim received medical treatment. Two days later, TEACHEY was found in possession of a stolen Ruger 9 mm pistol during a traffic stop by the Rocky Mount Police Department. On August 4, 2017, Rocky Mount Police Officers executed a search warrant on the home that TEACHEY shared with his fiancée. The officers located numerous firearms and ammunition including a Smith and Wesson M&P 15 rifle, a Century Arms 7.62x39 rifle, a Glock 9mm pistol with an extended magazine, a .357 Taurus revolver, and assorted ammunition including ammunition for the caliber of firearms recovered and other ammunition. TEACHEY is scheduled to be sentenced on June 4, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The investigation of this case was conducted by the Rocky Mount Police Department, the Cumberland County Sheriff’s Office, the North Carolina State Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette represented the government in this case.
Farmer Branch Man Sentenced to Serve a Total of 128 Months in Federal Prison on Drug ChargesRead the Press Release
DALLAS — Jose Humberto Solis, 39, of Farmers Branch, Texas, was sentenced last week by U.S. District Judge Jane J. Boyle to serve a total of 128 months in federal prison following his guilty pleas in January 2016 and September 2017 to drug offenses as charged in two Northern District of Texas cases, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
In one case, Solis pleaded guilty to one count of possession with intent to distribute a Schedule I controlled substance (heroin). He received 128 months on that drug conviction.
In the subsequent case, Solis pleaded guilty to one count of conspiracy to distribute a Schedule I controlled substance (heroin) and one count of conspiracy to commit money laundering and was sentenced to 128 months in federal prison. That sentence will run concurrently to the first sentence imposed.
In the first case, between August 31, 2015 and September 1, 2015, Solis possessed and agreed to sell kilogram quantities of heroin. Specifically, on September 1, 2015, Solis traveled to a Target store located in Farmers Branch, Texas, with the specific intent to distribute one kilogram of heroin. After arriving at the Target, Solis was detained by law enforcement agents and the one kilogram of heroin was seized from his vehicle.
According to the plea agreement factual resume filed in the subsequent case, in 2013, agents with the Drug Enforcement Administration began an investigation into heroin sales in the Ninth Ward of New Orleans, Louisiana. Solis was identified as facilitating the distribution of heroin in the Ninth Ward of New Orleans by supplying heroin he obtained in Dallas, Texas.
On December 19, 2014, a Louisiana State Police Trooper observed a white Honda Civic travelling on Interstate 10 in Jefferson Parish, Louisiana. The Trooper observed the vehicle’s driver swerving in and out of his lane and onto the shoulder of the freeway. The Trooper pulled the vehicle over for illegal use of traffic lanes. Solis was identified as the passenger of the vehicle. The trooper observed both the driver and Solis appearing very nervous. Based on his observations, the Trooper believed that the occupants may be engaged in illegal activity. Solis refused to give consent to search and a K-9 unit was requested. The K-9 alerted to narcotics in the passenger compartment. A search of the vehicle revealed approximately one-half kilogram of heroin in a Jack-in-the-Box food bag sitting on the front passenger side floorboard of the vehicle.
The case was investigated by the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
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Drug Dealer Sentenced to 235 Months ImprisonmentRead the Press Release
Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Daniel Woolem, age 49, of Moxee, Washington, was sentenced for Conspiracy to Distribute Methamphetamine and for Distribution of Methamphetamine. United States District Judge Stanley A. Bastian sentenced Woolem to a 235-month term of imprisonment, to be followed by five years of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in July 2015, a task force was created to investigate suspected drug trafficking organizations operating within Yakima County. During the investigation, law enforcement learned that Woolem was selling methamphetamine out of his residence in Moxee. In addition, law enforcement officers learned that Woolem was supplying street level drug dealers with methamphetamine. Law enforcement officers obtained multiple photographs of Woolem meeting with street level drug dealers at his residence. The investigators gathered evidence which resulted in the filing of a criminal Indictment.
On October 26, 2016, a search warrant was executed at the Woolem residence. In addition to other items, law enforcement officers discovered an elaborate security system, multiple firearms, loaded magazines, a suppressor, a bump stock, and drug paraphernalia.
In August, 2017, the case went to trial. Multiple witnesses testified concerning personal observations of Woolem selling methamphetamine at his residence. Several law enforcement officers testified and described the organization. The jury was provided with evidence obtained during the investigation. Woolem testified that he never sold drugs and that he was essentially a Good Samaritan who assisted the less fortunate. Woolem described how he occasionally would bring homeless people from Walmart to his home to bathe, and that he would provide them with food, cigarettes, and other items. On August 24, 2017, the jury found him guilty of all the charges.
At the February 7, 2017 sentencing hearing, Judge Bastian observed that Woolem lied when he testified under oath, which resulted in an obstruction of justice Enhancement. Judge Bastian determined that it was clear Woolem had a leadership role in the distribution of methamphetamine. It was based, in part, on Woolem’s obstruction of justice and leadership role that resulted in the 235-month term of imprisonment and five years of court supervision following release from federal prison.
Joseph H. Harrington stated, “I commend the law enforcement officers who worked on this case. Their seamless partnership resulted in the successful outcome in this matter. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for offenders who distribute drugs in this District.”
This investigation was conducted by the Drug Enforcement Administration, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, the Yakima Police Department, the Union Gap Police Department, the Moxee Police Department, the Toppenish Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security – Homeland Security Investigations, and the Law Enforcement Against Drugs Task Force. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Des Moines Man Sentenced to 15 Years in Prison for Firearms OffenseRead the Press Release
Shannon Maurice Johnson used a third party to illegally purchase guns
DES MOINES, Iowa – On February 12, 2018, Shannon Maurice Johnson, age 32, of Des Moines, Iowa, appeared before United States District Court Chief Judge John A. Jarvey and was sentenced to 180 months in prison following his plea of guilty to a felon in possession of firearms charge.
According to the plea agreement, Johnson admitted he utilized a third-party, his co-defendant Carolett Leyva, to purchase firearms for him from Des Moines area gun shops, as he was unable to do so because of a prior felony conviction. Defendant was found in possession of one of these firearms during a traffic stop by law enforcement in Illinois in February of 2017. Carolett Leyva is scheduled to be sentenced by Chief Judge Jarvey on February 20, 2018.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Illinois State Patrol, Mid Iowa Narcotics Task Force, and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Department of Justice FY 2019 Budget RequestRead the Press Release
President’s Request Invests in Department of Justice Criminal Justice Priorities, Including Protecting National Security, Supporting Law Enforcement, Enforcing Immigration Laws, and Protecting our Citizens from Violent Crime and the Scourge of the Opioid Epidemic.
President Trump’s FY 2019 Budget proposal totals $28 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening security efforts to reduce violent crime, enforce the nation’s immigration laws, combat the opioid epidemic, and continues its commitment to national security.
“The Department of Justice has the noble task of keeping the American people safe from drugs, gangs, and terrorists, and this budget proposal reflects our commitment to do just that,” said Attorney General Jeff Sessions. “President Trump has ordered us to accomplish these goals by supporting state and local law enforcement, dismantling transnational organized crime, and working to bring down crime rates. For the last year, we have aggressively carried out that agenda and have already seen major successes that benefit the American people. Congress should invest in these efforts—because all of us benefit from a safer America.”
The Department of Justice’s areas of investment include:
- +$295 million in program enhancements and transfers to fight the opioid crisis and support law enforcement safety. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
- +$65.9 million in immigration related program enhancements to enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration.
- +$109.2 million to strengthen federal law enforcement’s ability to reduce violent crime.
- +$10 million for BOP’s apprentice program giving inmates the necessary skills for successful post incarceration employment.
- +$13 million for the Criminal Division to support Mutual Legal Assistance Treaty (MLAT) reform.
- $3.9 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2019 Budget and Performance Summary at https://www.justice.gov/doj/fy-2019-budget-and-performance-summary.
Combating Violent Crime
Protecting the American people from violent crime is a top priority for the Department of Justice. Unfortunately, in recent years, crime has been on the rise in too many places across the country. FBI statistics show that, in 2015 and 2016, the United States experienced the largest increases in violent crime in a quarter-century. Over those two years, violent crime increased by nearly 7%. Robberies, assaults, and rapes all increased, and murder increased by a shocking 20%.
In 2017, the Department made some great strides, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally based strategies to reduce violent crime. The Department brought cases against the greatest number of violent criminals in at least 25 years—since the Department began tracking a “violent crime” category. Although preliminary numbers for 2017 show a decrease, violent crime rates are still excessively high.
The FY 2019 budget requests $109.2 million in program enhancements to reduce violent crime and combat transnational criminal organizations. These resources will enable the Department to dismantle the worst criminal organizations, target the most violent offenders, and protect the public.
For more information, view the Combating Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Enforce Immigration Laws
The FY 2019 President’s Budget strengthens the Nation’s security through stronger enforcement of the Nation’s immigration laws. The Department is requesting $65.9 million in immigration-related program enhancements for FY 2019, which will enhance border security and immigration enforcement. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice. This budget supports the Department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Drug Enforcement and the Opioid Crisis
The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 63,600 Americans died from drug overdoses in 2016, a 21% increase from the previous year. Over 42,200, or approximately two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. The President declared this scourge a National Public Health Emergency in October 2017, and the Department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.
The FY 2019 budget requests $295 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources will enable the Department to target those drug trafficking organizations most responsible for the opioid epidemic and drug-related violence in our communities, as well as ensure the life and safety of first responders who are on the front lines protecting the American people.
For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
State, Local, and Tribal Assistance
The Justice Department is committed to reducing violent crime and addressing the opioid epidemic. Federal law enforcement officers constitute only 15% of the total number of law enforcement officers nationwide; therefore, 85% of the officer support relies upon strong partnership with state and local law enforcement. The Department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.
The FY 2019 Budget continues its commitment to state, local and tribal law enforcement by investing approximately $3.9 billion in discretionary and mandatory funding in programs to assist them. Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.Restructuring Initiatives
The President’s Administration is committed to establishing a smaller, leaner federal government that reduces, both, bureaucracy and costs to the American taxpayer. Since 2017, the Department of Justice has undertaking efforts to refocus resources and turn our efforts back to our core mission. To support the President’s Executive Order 13781 on reorganizing the Executive Branch, the Department of Justice has begun taking steps to streamline itself and to save taxpayer dollars. As part of the FY 2019 President’s Budget, the Department is proposing a number of initiatives to achieve savings, to reduce the size of government, and maximize agency performance.
For more information, view the Restructuring Initiative Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.
Dayton Man Sentenced to 120 Months in Prison for Distributing FentanylRead the Press Release
DAYTON – Nicholas Gay, 37, of Dayton, was sentenced in U.S. District Court to 120 months in prison for distributing fentanyl.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer and other members of the Sheriff’s Office RANGE Task Force announced the sentence handed by U.S. District Judge Walter H. Rice.
According to court documents, Gay sold a confidential informant fentanyl on three occasions, totaling approximately 14 grams of the drug. A recorded conversation between Gay and the confidential informant included Gay giving instructions on how to dilute the drug in order to make a larger profit when reselling it.
When executing a search warrant at Gay’s home, investigators found an additional 200 grams of fentanyl and fentanyl/heroin mixture in a Crown Royal bag in plain view on a table, as well as $5,000 in cash.
Gay pleaded guilty in September 2017 to one count of distributing fentanyl.
“Gay had in his home more than 200 grams of various fentanyl mixtures – the equivalent of thousands of potential sales to drug addicts,” U.S. Attorney Glassman said. “After having previously served time for dealing cocaine, Gay will now will spend the next decade in prison for trafficking fentanyl. His removal makes the community safer.”
U.S. Attorney Glassman commended the cooperative investigation by the Montgomery County Sheriff’s Office RANGE Task Force, as well as Assistant United States Attorneys Brent G. Tabacchi and Andrew J. Hunt, who are representing the United States in this case.
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Couple Pleads Guilty to Structuring Financial Transactions to Evade Reporting RequirementsRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Bobby L. Ratcliffe (59) and Wanda F. Ratcliffe (55), both of Reddick, Florida, have pleaded guilty to conspiracy to structure financial transactions to evade reporting requirements. Each faces up to five years in federal prison; a sentencing date has not yet been set.
According to the plea agreement, Bobby and Wanda Ratcliffe structured cash deposits and withdrawals into and out of bank accounts that they controlled. The couple often traveled to Jacksonville, Orlando, and Tampa to conduct the transactions. To avoid Currency Transaction Reports, which are required for currency transactions exceeding $10,000 in a single day, they made individual deposits of less than $10,000 at different credit unions, or branches of the same credit union, on the same day or over consecutive days.
In addition to structuring cash deposits, the Ratcliffes made structured cash withdrawals by writing and cashing numerous personal checks made payable to themselves. Between August 2014 and July 2015, they wrote more than 1,750 checks to themselves for cash. Although the aggregate amount of withdrawals exceeded $10,000, no individual check was greater than $10,000 on a single day. In less than a year, the couple structured more than $4.5 million.
This case was investigated by the U.S. Treasury Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the Federal Insurance Deposit Corporation – Office of Inspector General, the Social Security Administriation – Office of Inspector General, the U.S. Secret Service, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
Christiansburg Couple Sentenced on Tax Fraud, Bankruptcy-Related ChargesRead the Press Release
Abingdon, VIRGINIA – United States Attorney Rick A. Mountcastle announced the sentencing of two Christiansburg residents who were previously convicted of tax fraud and multiple bankruptcy fraud charges.
Regan Dwayne Reedy, 56, was sentenced last week to 108 months in prison. He was previously convicted of conspiracy to commit tax fraud, making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.
Susan Annette Reedy, 50, was sentenced last week to 78 months in prison. She was previously convicted of making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.
According to evidence presented to the jury during the trial of Reagan and Susan Reedy by Assistant United States Attorney Joseph W. H. Mott, Reagan Reedy filed a number of fraudulent tax returns for individuals claiming refunds. The returns claimed excessive federal withholdings that resulted in excessive claims for tax refunds totaling over $1 million. A majority of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.
In addition to the tax return fraud, Regan Reedy and Susan Reedy filed three Chapter 7 bankruptcies seeking to discharge debts to private and governmental creditors. In filings in 2012 and again in 2014, Regan and Susan Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. Those assets included bank accounts, real estate, and vehicles they had placed in nominee names. At a creditors meeting in December 2014, both falsely testified regarding their means of support and the extent of their assets. During their sentencing hearings last week, Regan and Susan Reedy were each held responsible for concealing over $1.8 million in assets during the course of the bankruptcies.
The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and the Office of the United States Trustee.
Chicago Restaurateur Charged with Fraud for Allegedly Swindling Investors in His West Loop EateryRead the Press Release
CHICAGO — A Chicago restaurateur was charged today with misappropriating funds and swindling investors in his West Loop eatery.
ATTILA GYULAI, who together with a relative owned a majority stake in Embeya restaurant, used company funds to pay personal expenses and illegally pocketed cash from investors, according to a criminal complaint and affidavit filed today in U.S. District Court in Chicago. From approximately 2011 to 2016, Gyulai misappropriated at least $300,000, to the detriment of co-owners and investors, the complaint states.
Embeya, which was located in the 500 block of West Randolph Street in Chicago, closed in 2016.
The complaint charges Gyulai, 45, most recently of Chicago, with wire fraud. In addition to the complaint, the Court today also authorized a warrant for Gyulai’s arrest.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
In order to open the restaurant and obtain a bank loan, Gyulai represented to shareholders that he and his relative had invested $140,000 of their own funds, the complaint states. Gyulai had in fact borrowed those funds from family and friends, and in 2013, he used company funds to pay them back, while concealing the payments from other shareholders, the complaint states. The following year, Gyulai made payments to himself and his relative totaling approximately $140,000 as a purported return of their initial capital, even though they had not invested their own money in the restaurant, the complaint states. Gyulai had thus paid himself and his relative double the purported initial investment amount, to the detriment of other shareholders, according to the complaint. He also used company funds for personal stock trading during the operation of the restaurant, the complaint states.
Not long before Embeya closed, Gyulai wired $103,750 from the restaurant’s corporate account to an account held overseas, the complaint states. The money represented a substantial amount of funds remaining in Embeya’s account at the time, the complaint states. Gyulai left the United States soon after transferring the funds.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Sunil Harjani.
Cedar Rapids Felon Found Guilty of Possessing Two FirearmsRead the Press Release
A felon who illegally possessed two firearms in October 2016 was convicted by a judge today, following a bench trial in federal court last month in Cedar Rapids.
Christopher Matthew Davies, age 47, from Cedar Rapids, Iowa, was convicted of being a felon in possession of a firearm. The verdict was returned today after about a 40-minute bench trial held on January 11, 2018.
The evidence at the trial showed that on September 8, 2016, the Iowa District Court for Linn County found Davies guilty of forgery and burglary, both felony offenses. On October 25, 2016, after Davies pled guilty to those charges, but before his sentencing hearing, he knowingly possessed two firearms. Specifically, Davies travelled to his mother’s home in Cedar Rapids, retrieved two firearms, and then pawned those firearms for $400. Davies later attempted to retrieve the firearms from the pawnshop, but the pawnshop refused to return the firearms after the Federal Bureau of Investigation’s National Instant Criminal Background Check System instructed the pawnshop to delay, and ultimately deny, any firearms transfer to Davies.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Davies remains in custody of the United States Marshal pending sentencing. Davies faces up to ten years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-26-LRR.
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California Man Charged with Failure to Register as a Sex OffenderRead the Press Release
U.S. Attorney Duane A. Evans announced that ROT VAN NGUYEN, a/k/a “Minh Dung,” a/k/a “Minh Dung Duong,” age 56, of San Jose, California, was charged today with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
According to court documents, NGUYEN was arrested in December 2017 in New Orleans after having departed California in November 2015. After traveling to New Orleans, NGUYEN failed to register with local authorities as required by SORNA. If convicted, NGUYEN faces a maximum term of 10 years in prison and a $250,000.00 fine. He also would have to be sentenced to a term of supervised release of between 5 years and life.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Marshal’s Service and the Louisiana State Police in this matter. He extended his thanks to California Division of Parole Operations, the Orleans Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew Payne is in charge of prosecution.
Business Manager Sentenced to 41 Months in Prison for Embezzling $1.5 Million from Boilermakers Local 154Read the Press Release
PITTSBURGH - A former Boilermakers union official has been sentenced in federal court to 41 months in prison, followed by three years of supervised release, on his conviction of embezzlement and theft of Labor Union assets and income tax evasion, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Raymond Ventrone, 60, of Pittsburgh, Pa. In addition to the prison sentence, Judge Hornak ordered Ventrone to pay $2,391,183 in restitution to the Boilermakers Union, followed by restitution of $500,000 to Zurich Surety and Financial Claims of Schaumburg, Illinois, and ordered him to pay $223,881 to the Internal Revenue Service.
According to information presented to the court, Ventrone caused a loss to Local 154 of approximately $3,000,000 over a four-and-one-half-year period between January 2010 and June 2015. When his thefts were discovered he was forced to resign his position as Business Manager of Local 154. That position was the most powerful job within the union. Ventrone used his unchecked power to authorize payments of retail goods that were of no use to the union. Some of these items were stored in his home, others were stored in storage units paid for by the Local, and others were on the Local’s premises, but not accessible to members.
Judge Hornak said that, “By any measure, this is an extraordinarily serious offense…Officers have a significant fiduciary responsibility to the members they represent.” The court also noted that Ventrone had engaged in “plainly unlawful and inappropriate conduct” by sending one of his subordinates to cash three Local 154 checks totaling $105,000 from a gas station owner friendly with Ventrone. The cash was returned to Ventrone.
Listed below are totals of payments to various retail establishments made by Local 154 at Ventrone’s direction:
- Approximately: $970,000 at Best Buy;
- $105,000 at the Apple Store;
- $527,000 spent on Louis Vuitton purchases;
- $198,602; $38,000 spent on drums, percussion instruments and musical accessories, from Drum World that the defendant maintained under lock and key on the premises of Local 154, unavailable and off limits to Local 154 members;
- $10,623.95 spent on Coco Lunette eye glasses for the defendant; $26,000 spent on concrete work at the defendant’s home; and
- $9,000 spent on a kitchen remodel at the defendant’s home.
The court noted that Ventrone had unnecessarily involved his son, a former NFL player, by renting him a spacious and extravagantly furnished apartment on the Local’s property for a mere $500 per month. The furnishings for the rental were from Restoration Hardware, Levins, Macy’s, Williams Sonoma, Best Buy and Pool City. The rental included a full and complete private fitness center with several large televisions that was not for the use or benefit of union members, but only for his son’s use. Local 154 also paid the utilities. The rental wasn’t vacated until this investigation became public. The loss to the union for the rent and furnishings was approximately $39,000, and the loss for the private fitness center was approximately $44,000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, the Department of Labor-OIG and the Office of Labor Management Standards for conducting the investigation leading to the prosecution of this defendant.
Broward Doctor and Staff Arrested for Running a Pill MillRead the Press Release
Dr. Andres Mencia, 64, of Ft. Lauderdale, Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale, Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, were arrested for their involvement in a scheme where they billed Medicare and Medicaid for medical consultations during which in actuality, they issued prescriptions for opioids and other drugs in exchange for cash payments, in violation of 21 U.S.C. § 846 and 841(a)(1), 18 U.S.C. § 2, 18 U.S.C. § 1347 and 18 U.S.C. § 1349.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
As alleged in the indictment, beginning in or around January 2015, Dr. Mencia, Venutra-Rodriguez, Sampath-Grant and Mensah conspired to perform sham consultations with Medicare and Medicaid beneficiaries and other patients, the true intent of which was to issue them prescriptions for opioids and other drugs in exchange for cash payments. In some instances, the defendants billed Medicare and Medicaid for these consultations and the prescriptions were filled at Medicare and Medicaid participating pharmacies.
Ventura-Rodriguez, Sampath-Grant and Mensah are charged with knowingly and intentionally dispensing a controlled substance, in violation of 21 U.S.C. § 846 and 841(a)(1) and 18 U.S.C. § 2.
Dr. Mencia is also charged with knowingly and intentionally dispensed a controlled substance, in violation of 21 U.S.C. § 846 and 841(a)(1) and 18 U.S.C. § 2. The indictment further alleges that Dr. Mencia purchased two residential properties with the illicit proceeds, in violation of 18 U.S.C. § 1957.
If convicted on all charges, each defendant faces a possible maximum sentence of up to 20 years imprisonment on each count.
Mr. Greenberg commended the investigative efforts of DEA, HHS-OIG and ICE-HSI. Mr. Greenberg also thanked the Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department. This case is being prosecuted by Assistant United States Attorney Michael Gilfarb.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brockton Man Pleads Guilty to KidnappingRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston to the armed kidnapping of a Quincy man and two children.
Diego Pires, 23, pleaded guilty to kidnapping before U.S. District Court Chief Judge Patti B. Saris, who scheduled sentencing for May 16, 2018. In January 2018, co-defendant Malik Bangura, 20, was sentenced to 17 years in prison and two years of supervised release. Sedrick Oliveira, 26, of Stoughton, and Yesenia Diaz, 23, of Brockton, were also charged.
On Oct. 8, 2016, at approximately 10:25 p.m., a 30-year-old man was kidnapped from the driveway of his Quincy home after being struck in the head with a revolver as he got out of his truck, and dragged into a nearby sedan. The victim had two children strapped into car seats in his truck.
Once the victim was in the sedan, two masked perpetrators, later identified as Pires and Bangura, drove the victim’s truck, with the children, to a secluded location where they unloaded approximately 30 pounds of marijuana and $20,000 from the victim’s truck, into the sedan. The victim, who was face-down in the backseat of the sedan at gunpoint, begged for his life and the life of the two children who were still in their car seats in the back of his truck.
Pires, Bangura, Diaz, and Oliveira then drove the sedan with the drugs, cash and the victim, from Quincy to Brockton and called the victim’s wife demanding $100,000. Law enforcement officers spotted the sedan as it drove through Brockton, recognized the vehicle from a drive-by shooting that occurred in August 2016, and began to follow it. After the defendants recognized the police, they attempted to flee, but ultimately abandoned the sedan in a Brockton driveway. The victim escaped, flagged down law enforcement officers, and described to them the secluded location where the truck had been disserted. Law enforcement located the truck with the children, who were unharmed.
Diaz was subsequently found standing by the sedan and arrested. She previously pleaded guilty and is awaiting sentencing. Oliveira was arrested on Oct. 10, 2016, in Stoughton and charged in a federal criminal complaint. He pleaded not guilty to the kidnapping charge. Bangura was arrested and charged in April 2017. Pires remained a fugitive until he was apprehended in October 2017.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; and Quincy Police Chief Paul Keenan, made the announcement today. Assistant U.S. Attorney Emily O. Cannon of Lelling’s Organized Crime and Gang Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Arizona Man Convicted of Conspiracy to Distribute Fentanyl, Heroin and CocaineRead the Press Release
LEXINGTON, Ky.— A federal jury in Lexington has found Hector Salas, Jr., of Phoenix, guilty of conspiracy to distribute five kilograms or more of cocaine, more than 400 grams of fentanyl and one kilogram of heroin. The jury convicted Salas on Friday, February 9, 2018, following a 3-day trial in U.S. District Court. The jury also found Salas guilty of possession with the intent to distribute more than five kilograms of cocaine.
According to the trial testimony, Salas engaged in an agreement to distribute the controlled substances. The evidence also established that, in May 2017, Salas was stopped by Lexington Police, on Versailles Road, in a vehicle with a Tennessee license plate. The investigation ultimately revealed that the vehicle had come from Phoenix and the trailer towed behind it contained 5.9 kilograms of cocaine, with a street value of over $410,000. Further investigation also resulted in the seizure of over 700 grams of fentanyl and over a kilogram of heroin from a residence in Lexington. The total street value of all the drugs exceeded $1,000,000. Law enforcement agencies also seized over $580,000 in proceeds from the distribution of the drugs.
The sentencing hearing is currently scheduled for May 11, 2018, at the federal courthouse in Lexington. Salas faces a minimum mandatory sentence of not less than 10 years nor more than life imprisonment.
United States Attorney Duncan; Amy Hess, Special Agent in Charge, FBI, Louisville; Richard W. Sanders, Commissioner, Kentucky State Police; and Ron Compton, Acting Chief of Police, Lexington Police Department, jointly announced the jury’s verdict.
The investigation was conducted by the FBI, the Kentucky State Police, and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
Anderson County Man Guilty of Making False Statements in a Federal Aviation Administration (FAA) InvestigationRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake announced today that Jeffery Michael Patterson entered a plea of guilty on charges of making a false statement to federal agents. Patterson faces a maximum sentence of up to five years in federal prison and a fine of up to $250,000. Patterson will be sentenced by United States District Judge Timothy M. Cain after the completion of a presentence investigation.
The facts presented at the guilty plea hearing established that Patterson was employed at a local FAA approved airplane repair and service facility. During the course of a routine evaluation of employees, Patterson represented that he had FAA certifications to do certain work on airplanes. The repair facility tried to verify this information through the FAA and was advised that Patterson held none of the certifications that he claimed to have. The matter was then referred to the Inspector General (IG) of the Federal Department of Transportation for investigation. IG Special Agents interviewed Patterson, and he made false statements to them to include the false statement that he had the FAA certifications but that they were under other names because his name had been changed numerous times by the Treasury department to protect his family from drug dealers who had been investigated by his father while working as a drug enforcement officer. At the guilty plea hearing, Patterson admitted that this story was bogus.
The case was prosecuted by Assistant United States Attorney David C. Stephens of the Greenville Office.
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Friday 9 February 2018
Wyoming County Dentist Indicted for Unlawful Distribution of Controlled SubstancesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wyoming County dentist, Christopher Bereznak, age 48, was indicted by a federal grand jury on February 6, 2018, for unlawfully distributing controlled substances without a legitimate medical purpose.
According to United States Attorney David J. Freed, the 9-count indictment alleges that beginning in June 2016 and continuing into July 2016, Bereznak unlawfully provided controlled substances to someone with whom he had no legitimate doctor/patient relationship, without legitimate medical necessity, and outside the scope of a professional practice.
Bereznak’s license to practice dentistry in Pennsylvania and his DEA registration have been suspended.
The charges stem from an investigation by the Drug Enforcement Administration, Scranton, the Olyphant Police Department, and the Lackawanna County District Attorney’s Office. Assistant United States Attorney Michelle Olshefski is prosecuting the 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
On February 9, 2018, Acting United States Attorney Robert C. Stuart announced that Shawndell L. Burke, 42, with no permanent address, was sentenced to 14 years (168 months) in prison for conspiracy to distribute methamphetamine. Burke was ordered to serve five years on supervised release following the prison term.
Information provided to law enforcement indicated that Burke was responsible for the distribution of at least 5 kilograms (approximately 11 pounds) of methamphetamine mixture and at least 150 grams (5 ¼ ounces) of pure methamphetamine in the Lincoln area between January of 2013 and April of 2017. On April 21, 2017, Lincoln Police Officers executed a search warrant at a residence where Burke was staying and found 76 grams of pure methamphetamine in her bedroom.
Burke’s co-defendant, Rodney P. Mazzulla, is scheduled for trial in March of 2018.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Woman Pleads Guilty to Using Stolen IDs to Commit Bank FraudRead the Press Release
ALEXANDRIA, Va. – A Maryland woman pleaded guilty today to her involvement in an identity theft and bank fraud scheme involving U.S. Treasury checks.
According to court documents, Vanetra Brown, 25, of Capitol Heights, impersonated identity theft victims at local commercial banks in order to cash stolen treasury checks. Brown used false driver’s licenses, false social security numbers, and other fraudulent means to dupe banks in Northern Virginia and Washington, D.C. into negotiating the stolen checks. The scheme resulted in a loss of $32,705.
Brown pleaded guilty to conspiracy to commit bank fraud and faces a maximum of 30 years in prison when sentenced on June 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Eric M. Thorson, Inspector General for the U.S. Department of Treasury, Daniel W. Lucas, Inspector General for the District of Columbia, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorneys Nathaniel Smith III and Grace L. Hill are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-14.
Wilkes Barre Man Charged with Cocaine PossessionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jesse Carey, age 30, of Wilkes-Barre, Pennsylvania, was indicted on February 6, 2018, by a federal grand jury for possession with the intent to distribute cocaine.
According to United States Attorney David J. Freed, the indictment alleges that in August 2017, Carey was detained by the Mount Airy Lodge Casino Security staff for showing fake identification at the casino. After being detained, Carey tried to flee but security officers apprehended him with cocaine in his possession.
The investigation was conducted by the Federal Bureau of Investigation and Pennsylvania State Police. Assistant United States Attorney Evan Gotlob is prosecuting the 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this drug conspiracy is 20 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wichita Man Found Guilty of Meth Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that Justin Thomas Morales, a/k/a “Speedy,” age 37, of Wichita, Kansas, was found guilty of Conspiracy to Distribute Methamphetamine as a result of a federal jury trial in Sioux Falls, South Dakota which began on February 5, 2018. The verdict was returned February 7, 2018.
Because Morales has a prior felony drug conviction, the conspiracy charge, involving over 500 grams of a mixture containing methamphetamine, carries a mandatory minimum penalty of 20 years and a maximum of life in custody, and/or a $20 million fine, mandatory minimum of 10 years and a maximum of life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Morales was indicted by a federal grand jury on November 9, 2016, and a superseding indictment was filed January 19, 2017.
On September 22, 2016, Morales and Chase Guzman had traveled from Wichita, Kansas, to Sioux Falls, South Dakota, with approximately two pounds of methamphetamine and three pounds of marijuana to distribute in Sioux Falls and the surrounding area.
While conducting surveillance, members of the Sioux Falls Area Drug Task Force observed Morales and Guzman go inside a residence off West 12th Street in Sioux Falls and come out a short time later. Morales and Guzman drove away and were stopped by South Dakota Highway Patrol Troopers. There was a pound of marijuana in the vehicle. Guzman was found to be in possession of a loaded Glock semi-automatic pistol and an ounce of methamphetamine.
The Sioux Falls Area Drug Task Force searched the residence off West 12th Street and found approximately two pounds of methamphetamine and two pounds of marijuana. Present at the residence was Daniel Guzman, who had a half-ounce of methamphetamine in his possession.
Morales, Chase Guzman, and Daniel Guzman were all indicted. The Guzmans both pled guilty. Daniel Guzman was sentenced to 120 months in custody to be followed by 5 years of supervised release. Chase Guzman is scheduled to be sentenced on February 26, 2018.
This case was investigated by the Sioux Falls Area Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Deputy Criminal Chief John E. Haak prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for April 30, 2018. Morales was remanded to the custody of the U.S. Marshals Service.
West Palm Beach, Florida Man Pleads Guilty to Conspiring to Provide Material Support to ISISRead the Press Release
Gregory Hubbard, aka Jibreel, 54, of West Palm Beach, Florida, pleaded guilty on Feb. 8, to conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General for National Security Edward O’Callaghan, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement. The plea was entered before U.S. District Judge Robin L. Rosenberg.
“Individuals seeking to travel to take up arms with ISIS pose a threat to the security of all nations,” said U.S. Attorney Greenberg. “The U.S. Attorney’s Office, the FBI, and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by terrorist organizations and their supporters.”
“Gregory Hubbard and his cohorts conspired to provide material support to ISIS, a designated foreign terrorist organization,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “Stopping terrorists before they can act is serious business that requires dedicated law enforcement professionals and eternal vigilance. This vigilance includes anyone and everyone who sees or hears something that seems out of place. If you see something, say something.”
According to the factual basis, Hubbard was arrested on July 21, 2016, at Miami International Airport where he and an FBI confidential human source (CHS) had been driven by co-defendant Jackson for a scheduled flight to Berlin, Germany. From Berlin, Hubbard intended to travel to Syria to join ISIS.
At various times during the conspiracy, which ran from approximately July 2015 until Hubbard’s arrest, Hubbard, and his co-defendants, Dayne Antani Christian and Darren Arness Jackson, talked with the CHS about their support for ISIS and jihad, including acts of terrorism committed by and attributed to ISIS and its supporters. During the conspiracy, Hubbard and his co-defendants including the CHS and others, practiced shooting weapons multiple times in preparation for Hubbard and the CHS traveling to Syria to join ISIS.
Hubbard faces a statutory maximum sentence of 20 years in prison. A sentencing date of April 19, has been set. Christian pleaded guilty, on March 29, 2017 to conspiracy to provide material support to ISIS, and to one count of being a felon in possession of a firearm. Jackson pleaded guilty on April 4, 2017, to conspiracy to provide material support to ISIS. Christian and Jackson both face a statutory maximum sentence of 20 years in prison on the conspiracy plea. Christian faces an additional statutory maximum sentence of 10 years in prison for his plea to being a felon in possession of a firearm. Both co-defendants are scheduled to be sentenced following Hubbard’s sentencing in April.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; City of West Palm Beach Police Department; and Florida Fish and Wildlife Conservation Commission. This case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Edward C. Nucci and Trial Attorneys Larry Schneider and Bridget Behling of the National Security Division’s Counterterrorism Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
West Mifflin Man Charged with Distributing Multiple Illegal SubstancesRead the Press Release
PITTSBURGH – An Allegheny County man has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 6 and unsealed today, named Stanley Church, 47, of West Mifflin, Pa., as the sole defendant.
According to the indictment, on or about March 17, 2017, Stanley Church possessed with the intent to distribute quantities of heroin, fentanyl, cocaine, crack cocaine, MDMA, and Psilocyn mushrooms.
The law provides for a total maximum sentence of not more than 20 years in prison, and a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department 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.
West Mifflin Man Charged with Distributing Multiple Illegal SubstancesRead the Press Release
PITTSBURGH – An Allegheny County man has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on February 6 and unsealed today, named Stanley Church, 47, of West Mifflin, Pa., as the sole defendant.
According to the indictment, on or about March 17, 2017, Stanley Church possessed with the intent to distribute quantities of heroin, fentanyl, cocaine, crack cocaine, MDMA, and Psilocyn mushrooms.
The law provides for a total maximum sentence of not more than 20 years in prison, and a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department 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.
U.S. Department of Justice and U.S. Army Corps of Engineers Reach a Settlement of Clean Water Act Violations by Florida DeveloperRead the Press Release
Today, the U.S. Department of Justice, on behalf of the U.S. Army Corps of Engineers (Corps) for the Jacksonville District, submitted to the United States District Court for the Middle District of Florida a proposed consent decree that would resolve alleged violations of the Clean Water Act by condominium developers Lodge/Abbott Investments Associates LLC and Lodge/Abbott Associates LLC.
The Clean Water Act requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. The defendants in this case did not obtain a permit from the Corps before they filled over an acre of high quality wetlands that abut and function in close proximity to the tidal waters of Wiggins Pass and the Cocohatchee River in Naples, Florida. The purpose of the fill was to create “Tower 200,” one of five towers comprising a high-end condominium development known as “Kalea Bay” in North Naples.
Under the proposed consent decree, the defendants are required to pay a $350,000 civil penalty. In addition, to offset the environmental impact of the alleged violations, the defendants have purchased approximately $54,000 in mitigation credits from a Corps-approved wetlands mitigation bank. The proposed decree also enjoins the defendants from filling any additional wetlands without first obtaining a permit or other clearance from the Corps.
“The coastal wetlands in this case are a stone’s throw from the Gulf of Mexico and Cocohatchee River,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resource Division. “Federal law requires Corps of Engineers approval before development projects like this can take place in these protected areas. We are pleased to reach this agreement that serves the public interest in enforcing the Clean Water Act.”
“When wetlands are filled in violation of the Clean Water Act, the loss is felt not only today, but by all generations to come,” said U.S. Attorney Maria Chapa Lopez. “The substantial penalty obtained in this case sends a message to anyone who fails to abide by our nation’s environmental laws that they will be held accountable.”
“The district's enforcement staff, with DOJ assistance, is pleased to have reached an expedited resolution of this section 404 Clean Water Act violation,” said Jacksonville District Enforcement Chief Bobby Halbert for the U.S. Army Corps of Engineers. “Our regulatory enforcement program intends to continue working to deter unauthorized activities such as this, while continually maintaining the integrity of our Nation's aquatic and wetland resources.”
Compliance and enforcement are important components of the Corps’ regulatory program, as it assures that the public interest and environmental resources are protected. The Corps’ Jacksonville District has a routine compliance inspection program throughout Florida, Puerto Rico, and the U.S. Virgin Islands. The Corps’ Jacksonville District Enforcement Section is often aided by state and federal agencies as well as groups and individuals who report suspected violations. To address violations, the Corps is authorized to prescribe corrective action, impose fines, and/or prescribe removal of the offending fill, work, or structure.
The proposed consent decree, lodged in the U.S. District Court in Fort Myers, is subject to a 30-day comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information on the Jacksonville District and the Corps’ Regulatory program, visit: http://www.saj.usace.army.mil/Missions/Regulatory.
U.S. Department of Justice and U.S. Army Corps of Engineers Reach A Settlement of Clean Water Act Violations by Florida DeveloperRead the Press Release
Naples, FL – Today, the U.S. Department of Justice, on behalf of the U.S. Army Corps of Engineers (Corps) for the Jacksonville District, submitted to the United States District Court for the Middle District of Florida a proposed consent decree that would resolve alleged violations of the Clean Water Act by condominium developers Lodge/Abbott Investments Associates LLC and Lodge/Abbott Associates LLC.
The Clean Water Act requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. The defendants in this case did not obtain a permit from the Corps before they filled over an acre of high quality wetlands that abut and function in close proximity to the tidal waters of Wiggins Pass and the Cocohatchee River in Naples, Florida. The purpose of the fill was to create “Tower 200,” one of five towers comprising a high-end condominium development known as “Kalea Bay” in North Naples.
Under the proposed consent decree, the defendants are required to pay a $350,000 civil penalty. In addition, to offset the environmental impact of the alleged violations, the defendants have purchased approximately $54,000 in mitigation credits from a Corps-approved wetlands mitigation bank. The proposed decree also enjoins the defendants from filling any additional wetlands without first obtaining a permit or other clearance from the Corps.
“The coastal wetlands in this case are a stone’s throw from the Gulf of Mexico and Cocohatchee River,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resource Division. “Federal law requires Corps of Engineers approval before development projects like this can take place in these protected areas. We are pleased to reach this agreement that serves the public interest in enforcing the Clean Water Act.”
“When wetlands are filled in violation of the Clean Water Act, the loss is felt not only today, but by all generations to come,” said U.S. Attorney Maria Chapa Lopez. “The substantial penalty obtained in this case sends a message to anyone who fails to abide by our nation’s environmental laws that they will be held accountable.”
“The district's enforcement staff, with DOJ assistance, is pleased to have reached an expedited resolution of this section 404 Clean Water Act violation,” said Jacksonville District Enforcement Chief Bobby Halbert for the U.S. Army Corps of Engineers. “Our regulatory enforcement program intends to continue working to deter unauthorized activities such as this, while continually maintaining the integrity of our Nation's aquatic and wetland resources.”
Compliance and enforcement are important components of the Corps’ regulatory program, as it assures that the public interest and environmental resources are protected. The Corps’ Jacksonville District has a routine compliance inspection program throughout Florida, Puerto Rico, and the U.S. Virgin Islands. The Corps’ Jacksonville District Enforcement Section is often aided by state and federal agencies as well as groups and individuals who report suspected violations. To address violations, the Corps is authorized to prescribe corrective action, impose fines, and/or prescribe removal of the offending fill, work, or structure.
The proposed consent decree, lodged in the U.S. District Court in Fort Myers, is subject to a 30-day comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information on the Jacksonville District and the Corps’ Regulatory program, visit: http://www.saj.usace.army.mil/Missions/Regulatory.
U.S. Attorney’s Office Based in Los Angeles Collected nearly $220 Million in Civil and Criminal Actions for Taxpayers in Fiscal Year 2017Read the Press Release
LOS ANGELES – United States Attorney Nicola T. Hanna announced today that his office collected $219,179,887 in criminal and civil actions in Fiscal Year 2017. Of this amount, nearly $56 million was collected in criminal cases, and more than $163 million was collected in civil actions.
The United States Attorney’s Office for the Central District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect another $431,216,222 in cases that were pursued jointly with at least one other office. The vast majority of this money was collected in civil actions. Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the 2017 fiscal year, which ended on September 30, 2017.
Additionally, the United States Attorney’s office, working with partner agencies and divisions, collected $34,749,352 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Each and every year, this office is involved in the collection and recovery of tens of millions of dollars that are used to assist crime victims, as well as help fund important government programs,” said United States Attorney Hanna. “The United States Attorney’s Office is dedicated to recovering criminal restitution owed to the victims of federal crimes and recouping losses sustained by taxpayers as a result of fraud.”
The United States Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States, as well as criminal debts owed to victims of federal crimes. Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to victims, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Of the approximately $56 million collected in criminal cases this past year, approximately $44.6 million in restitution was collected and disbursed directly individuals and private entities, and $1.6 million was paid directly to the Crime Victims Fund. Most of the remaining $10 million was disbursed to federal agencies that suffered losses.
The largest civil collections last year were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
During fiscal year 2017, prosecutors in the Central District of California recovered $42 million from a settlement with Pacific Alliance Medical Center to resolve allegations that the medical center had improper financial relationships with referring physicians. Additionally, the Office recovered $26.5 million from a settlement with the City of Los Angeles Department of Water and Power for environmental and property damage sustained as a result of the 2013 Powerhouse Fire, which scorched more than 30,000 acres in northern Los Angeles County and destroyed 58 structures.
The United States Attorney’s Office for the Central District of California is based in Los Angeles and has branch offices in Santa Ana and Riverside. Currently, approximately 275 Assistant United States Attorneys serve nearly 20 million residents of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
Assistant United States Attorney Indira Cameron-Banks is the Chief of the Financial Litigation Section in the Civil Division. The Financial Litigation Section coordinates efforts to collect criminal and civil debts owed to victims of federal crimes and the United States, including restitution, fines, civil settlements, penalties and defaulted federal loans. These efforts include locating debtors’ assets and initiating enforcement actions to secure collection on the outstanding debts.