Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 March 2018
Department of Justice Announces Launch of National FOIA PortalRead the Press Release
Today the Department of Justice launched its new redesign of FOIA.gov and the first iteration of the National FOIA Portal, a government-wide FOIA request portal that allows the public to submit a Freedom of Information Act (FOIA) request to any agency from a single place.
The FOIA Improvement Act of 2016 directed the Office of Management and Budget and the Department of Justice to build a “consolidated online request portal that allows a member of the public to submit a request for records . . . to any agency from a single website.” The new portal was developed with a user-centric focus relying heavily on both public and agency feedback throughout the entire process.
“The Department is very proud of its unique role in advancing government wide FOIA administration and we are excited to provide this new resource to the public which will allow citizens to be even better informed about their government and the FOIA,” said Melanie Ann Pustay, Director of the Office of Information Policy. “With over one hundred agencies subject to the FOIA and hundreds of thousands of requests made each year, we designed the National FOIA Portal to improve FOIA for both agencies and the public. This is just the first iteration of the Portal and we welcome feedback from users as we continue to build on this effort. ”
The new National FOIA portal provides customized forms for each agency to help requesters understand and submit requests more easily. The site will also provide insight into the FOIA process including what to do before submitting a FOIA request, how to submit a request, and what happens after submitting a request. The site also centralizes and provides a wealth of agency specific resources that are helpful to requesters, such as a description of each agency and links to their FOIA website, FOIA Reference Guide, FOIA regulations, and the FOIA Library.
“The National FOIA portal exemplifies our efforts to consolidate common services with the scalability and security available in a modern cloud-based platform and allows us to rapidly deliver capabilities to improve the user experience”, said Joseph Klimavicz, Department of Justice Chief Information Officer. “The Department is committed to continuously improving and modernizing the way citizens interact with our services.”
The launch of the National FOIA portal was made possible with the support of the Office of Management and Budget and by efforts led by the Department of Justice’s Office of Information Policy and Chief Information Office in partnership with the General Services Administration’s (GSA) 18F team.
“18F is proud to have worked with DOJ on researching, designing, and building the new National FOIA portal,” said GSA’s 18F Acting Executive Director Rebecca Piazza. “They’ve been excellent partners in ensuring this valuable tool meets the needs of agency FOIA offices and the public.”
Denham Springs Man Sentenced to 25 Years in Federal Prison for Child Pornography ConvictionsRead the Press Release
United States Attorney Brandon J. Fremin announced that, this morning, Chief United States District Court Judge Brian A. Jackson sentenced MICHAEL STANLEY CLARK, age 32, of Denham Springs, Louisiana, to 25 years in federal prison following his conviction for production, distribution, transportation, and possession of child pornography. The Court also ordered CLARK to make restitution payments to his victims in the amount of $9,000 and pay a $500 special assessment. CLARK will also be required to serve a 10-year term of supervised release upon his release from federal prison and to register as a sex offender.
CLARK’s prosecution resulted from two separate undercover investigations – one handled by the Federal Bureau of Investigation (FBI) and another by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), and the Cyber Crime Unit of the Louisiana Attorney General’s Office.
On October 15, 2016, CLARK distributed images and videos of minors and prepubescent minors engaged in various sex acts to an undercover HSI agent. Two days later, on October 17, 2016, CLARK distributed additional images of child pornography, including a series of images he took of his minor child, to an FBI undercover agent.
After law enforcement agents executed a search warrant at his residence on October 20, 2016, CLARK admitted that he distributed child pornography images to other individuals whom he met online, including images he produced of his minor child. In total, CLARK possessed 298 still images and 333 videos of child pornography on various electronic devices and media.
The forensic review showed that CLARK’s online child sexual exploitation activity ranged from 2009 through October 2016. In addition, through cyber tip reports made by service providers to the National Center for Missing and Exploited Children (NCMEC), law enforcement learned that CLARK had uploaded child pornography images and videos to online photo management and content sharing services.
U.S. Attorney Fremin stated, “This investigation and prosecution demonstrates the commitment of the entire law enforcement community – federal, state, and local – to work together to protect our children from sexual exploitation. Today’s sentence not only punishes CLARK, it also serves as a stark reminder of the severe potential consequences that await others inclined to engage in similar conduct. I am grateful for the excellent work of all those involved in bringing this defendant to justice, including our strong partners at FBI, HSI, and the Louisiana Attorney General’s Office, as well as the Livingston Parish Sheriff’s Office and District Attorney’s Office. I look forward to continuing to work together to aggressively pursue child predators, such as CLARK.”
Jeff Landry, Attorney General for the State of Louisiana, stated, “My office works closely with our law enforcement partners to ensure criminals are held accountable for their actions. Partnership is an important part of the process and we are glad our investigation led to a strong conviction by the U.S. Attorney’s Office. I commend Mr. Fremin and his team for seeing this through.”
Eric Rommal, Special Agent-in-Charge of the New Orleans Division of the FBI, stated, “The FBI is dedicated to protecting our children and community from predators. We will continue to work closely with our local, state and federal partners to identify, investigate and arrest those who pose a threat to children. This investigation, prosecution and sentence demonstrates that commitment and coordination.”
“HSI will continue to aggressively investigate and arrest the people who seek to prey on the most vulnerable in our society,” said Thomas M. Annello, Acting Special Agent-in-Charge of the New Orleans Division of HSI. “Thanks to our efforts with HSI Portland, Maine and the Louisiana Attorney General’s Office we’ve ensured Clark will be held accountable for his crimes.”
This matter was investigated by HSI, FBI, and the Cyber Crime Unit of the Criminal Division of the Louisiana Attorney General’s Office, with assistance from the Livingston Parish Sheriff’s Office and the Livingston Parish District Attorney’s Office. Assistant United States Attorney Cam T. Le prosecuted this case.
These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “Resources” tab for information about Internet safety education.
Defendants Indicted for Murder and Extortion of Queens Business OwnerRead the Press Release
A four-count indictment was unsealed earlier today in federal court in Brooklyn, charging Ppassim Elder, Dwayne Ling and Frederick McCoy with the October 23, 2017 murder of a Queens business owner in front of his son, as well as the extortion of that father and son. A fourth defendant, Mahdi Abdel-Rahim, was also indicted for his role in the extortion. He was arrested on March 1, 2018 and released on a secured bond. Ling was arrested on March 1, 2018, and ordered detained. Elder was arrested in Cleveland, Ohio on March 2, 2018, was presented in that district on March 5, 2018, and is being transferred in custody to the Eastern District of New York. McCoy was arrested yesterday and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Robert M. Levy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged in the court filings, defendant Ppassim Elder exploited a business owner’s need for a loan and sent his enforcers to try to collect it, ultimately leading to a senseless and tragic murder,” stated United States Attorney Donoghue. “No son should ever watch his father be killed. This Office and our law enforcement partners are committed to protecting businesses in our community from violent criminals.” Mr. Donoghue also expressed his appreciation to the Queens County District Attorney’s Office for their assistance during the investigation.
“When criminals loan money to business owners, they know they’re never going to get repaid, it’s why they loan out the money. Once they have the victim on the hook, they use threats, intimidation and violence to harass their victims. In this case, the victim died allegedly at the hands of his debtors,” stated FBI Assistant Director-in-Charge Sweeney. “No one should have to pay criminals with their life, and the FBI New York Joint Organized Crime Task Force won’t let these violent offenders get away with it.”
As alleged in the indictment and detailed in court filings, on the morning of October 23, 2017, three perpetrators wearing blazers—Ling, McCoy and another coconspirator—walked into Garden Valley Distributors, a family-owned grocery distribution center located in Ozone Park. The perpetrators said that “Sam” or “Big Sam” had sent them to collect his money. Elder, who was known as “Sam” and “Big Sam,” had given the murder victim’s son a loan, which the son used to support the business. By March 2017, Elder demanded full repayment of the loan, but the son could not afford to repay it because much of the money had been used to purchase merchandise for Garden Valley.
In response, Elder began a campaign of intimidation against the son and his family. Among other things, Elder paid the defendant Mahdi Abdel-Rahim to throw a rock through a window of the home of the son and his father. When the rock did not lead to repayment of the loan, Elder sent Ling, McCoy and a third coconspirator into Garden Valley, where the perpetrators brandished a firearm, pistol-whipped the son across his head, and fatally shot the father in the face.
All four defendants are charged with extortionate collection of credit conspiracy and extortionate collection of credit. Elder, Ling and McCoy are also charged with brandishing a firearm in furtherance of those crimes of violence and causing the death of another through use of a firearm. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the murder charge or firearm charge, Elder, McCoy and Ling face a maximum sentence of life imprisonment. If convicted of the extortion charge, Abdel-Rahim faces a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor and Keith D. Edelman are in charge of the prosecution.
The Defendants:
PPASSIM ELDER (also known as “Sam” and “Big Sam”)
Age: 38
Staten Island, New YorkMAHDI ABDEL-RAHIM
Age: 24
Brooklyn, New YorkDWAYNE LING
Age: 55
Brooklyn, New YorkFREDERICK MCCOY
Age: 52
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-92 (WFK)
Darlington Man Pleads Guilty to Robbery and Gun Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Kenneth Eric Coe, Jr. a/k/a “Junior,” age 23, of Darlington, SC, pled guilty in federal court in Florence, to aiding and abetting Robbery of United States Government Property, a violation of Title 18, United States Code, Sections 2114 and 2, and aiding and abetting the Use of and Brandishing a Firearm During and in Furtherance of a Crime of Violence, a violation of Title 18, United States Code, Sections 924(c) and 2. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on March 29, 2017, Coe along with another individual robbed a person having lawful charge, custody, and control of $400.00 belonging to the Bureau of Alcohol, Tobacco, Firearms and Explosives by use of a firearm. During the hearing, the agent presented evidence that during the robbery, a firearm was pointed at the victim in order to force the victim to give up the cash.
Under Coe’s plea agreement, he faces a mandatory minimum of seven years imprisonment with a maximum penalty of life in prison.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Darlington County Sheriff’s Office, and the Hartsville Police Department. Assistant United States Attorneys Lauren Hummel of the Florence office and J.D. Rowell and William Lewis of the Columbia office handled the case.
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Colusa County Man Fined for Two Violations of the Migratory Bird Treaty ActRead the Press Release
SACRAMENTO, Calif. — Ronald C. Simmons, 76, of Colusa, pleaded guilty on Tuesday to two misdemeanor counts: unlawful baiting and unlawful taking of a migratory game bird, in violation of the Migratory Bird Treaty Act. He was immediately sentenced by U.S. Magistrate Judge Edmund F. Brennan and ordered to pay a $7,500 fine.
According to court documents, on October 21, 2017, opening day of waterfowl season in the Sacramento Valley, Simmons and his invited guests shot and killed 16 wood ducks over a baited cornfield at Butte Creek Farms. Simmons, who managed a field on the Colusa County property, had previously rolled unharvested cornstalks and intentionally spread corn kernels onto the field as bait for wood ducks, a migratory bird, for the purpose of ensuring a successful waterfowl hunting season. Exposed and scattered corn kernels can lure and attract migratory birds. According to the Migratory Bird Treaty Act, it is unlawful to hunt migratory birds using bait.
This case was the product of an investigation by the U.S. Fish and Wildlife Service. Special Assistant U.S. Attorney Erica L. Anderson prosecuted the case.
Colorado Man Sentenced to 45 Years in Prison for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Colorado man was sentenced in federal court today for the sexual exploitation of a 13-year-old Springfield, Mo., victim.
Dominic Keith Pearson, 26, of Silverthorne, Colo., was sentenced by U.S. District Judge Roseann Ketchmark to 45 years in federal prison without parole.
On Oct. 11, 2017, Pearson pleaded guilty to coercion and enticement of a minor, sexual exploitation of a minor, transportation of a minor with intent to engage in illicit sexual activity, and travel with the intent to engage in illicit sexual activity.
According to court documents, the 13-year-old child victim – identified in court documents as “Jane Doe” – was reported missing from her home in Springfield on Jan. 8, 2017. Investigators found a series of messages between Pearson and Jane Doe on a cell phone, indicating that Pearson was traveling to meet Jane Doe.
On Jan. 10, 2017, Pearson and Jane Doe were located in a truckers lounge at Petro Truck Stop off Interstate 70 near Oak Grove, Mo. Both Pearson and Jane Doe had luggage with them in the lounge. Pearson told investigators that he was taking Jane Doe to Denver, Colo.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Springfield, Mo., Police Department, the FBI, the Southwest Missouri Cyber Crimes Task Force and the Oak Grove, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clark County Man Pleads Guilty to Fraud Charges for Scheme Involving False Clean Energy CompanyRead the Press Release
PORTLAND, Ore. – Isaac Benjamin Voss, 41, of Clark County, Washington, pleaded guilty today to one count of wire fraud for defrauding domestic and foreign investors who believed they were investing in a viable clean energy company.
"Voss robbed victims of investment dollars by preying on their hopes of becoming legal permanent residents in the U.S.," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I implore both domestic and international investors to think twice before supporting schemes that promise immigration shortcuts."
According to court documents, in 2007, Voss made a deal with a Canadian scientist and entrepreneur to raise funds to support the development of a technology that would derive electricity and petroleum-equivalent fuels from any carbon bearing material. Over a four-year period beginning in 2011, Voss used his company, XFuels, as a vehicle for soliciting investments from individuals abroad and in Oregon, California, and Washington state.
Voss defrauded investors using elaborate marketing materials, including flyers, brochures and a website, containing false information about his company, the technology and the investment opportunity. He claimed that XFuels owned a commercial refinery in Canada and that another was being constructed in Washington state. The plants were said to be using the technology to produce "clean fuel, clean chemicals, [and] clean power from garbage, biomass, and plastic."
To reduce the perceived risk of the venture, Voss told investors that more than 90 percent of the project’s funding would come from other institutional and private lenders and that he had commissioned an independent, third-party feasibility study that guaranteed the project’s commercial viability. In reality, XFuels had not constructed any facilities and the only capital raised was from other individual investors in the U.S. and abroad. Moreover, the feasibility study relied solely on information provided by Voss himself and did not employ any commercially accepted methods to validate the technology.
On numerous occasions, Voss hosted foreign investment seminars during which he told investors that supporting XFuels, with a minimum $500,000 investment, would qualify them for American Employment-Based Fifth Category "EB-5" visas. Voss also falsely claimed he would hold foreign investment funds in escrow until the U.S. government had approved investors’ visa applications. The XFuels project did not qualify for the EB-5 program and all investors’ visa applications were denied, as a result.
Voss faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on August 14, 2018 before U.S. District Court Judge Anna J. Brown.
The U.S. Postal Inspection Service, IRS and the Department of Homeland Security investigated this case. It is being prosecuted by Michelle H. Kerin and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
California Man Pleads Guilty to Failing 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, pleaded guilty today before U.S. District Court Judge Carl J. Barbier to 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 convicted in California in 2009 for lewd or lascivious acts on a child under 14 years of age, a violation of California Penal Code Section 288(a). After his release from prison, NGUYEN was obligated to register as a sex offender for life. In November 2015, while he was on probation, NGUYEN cut off a GPS monitor required by California Parole and absconded from supervision. He remained at large until December 12, 2017, when members of the U.S. Marshal’s Task Force and Louisiana State Troopers apprehended NGUYEN at a casino in New Orleans. After his arrest, NGUYEN admitted to living in Houma prior to moving to New Orleans, and that he was aware of his obligation to register as a sex offender in Louisiana pursuant to SORNA. He was initially arrested on charges of violating Louisiana state registration laws until the matter was charged in federal court.
NGUYEN faces a maximum term of 10 years in prison and a $250,000.00 fine. He also faces a term of supervised release of between 5 years and life. Judge Barbier set his sentencing for June 14, 2018.
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.
California Genetic Testing Service Pays $11 Million to Resolve False Claims AllegationsRead the Press Release
Allegedly submitted fraudulent medical claims for reimbursement
Will Pay $10,635,615.90 as part of Federal Settlement and $756,183 to a Number of States
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, acting on behalf of the Office of Inspector General of the Department of Health and Human Services, the TRICARE Program, and the Federal Employees Health Benefits Program (FEHB) today announced a $10,635,615.90 settlement with Natera, Inc., to resolve claims that Natera improperly billed federal healthcare programs for Natera’s non-invasive prenatal test known as Panorama®. Natera has also agreed to pay an additional $756,183 to a number of state Medicaid programs.
"Let this hefty settlement send a message that pursuing healthcare fraud is a priority of our Office and of the Department of Justice” stated United States Attorney Russell Coleman. “Overbilling federal healthcare programs steals from taxpayers and drives up the cost of healthcare for us all. Recovering taxpayer dollars lost to fraud helps keep strong those critical public healthcare programs so many Kentucky families depend on.”
"I applaud the Department of Justice and the U.S. Attorney for their untiring efforts to hold health care providers accountable to the American taxpayer," said Vice Adm. Raquel Bono, director of the Defense Health Agency, which manages the TRICARE Health Plan. "The Department of Justice's efforts safeguard the TRICARE benefit for American service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices."
“In concert with our investigative partners, DCIS aggressively pursues fraud and corruption that undermines the integrity of Department of Defense programs, especially those involving the well-being of our Warfighters who deserve the best medical care available,” stated John F. Khin, DOD-DCIS Special Agent in Charge. “It is unconscionable for a health care provider to make profits by taking advantage of military members and their families when they are most vulnerable.”
“Today’s settlement shows the OPM-OIG’s commitment to investigating and prosecuting fraudulent billing practices that waste taxpayer dollars, increase the cost of medical care, and undermine the integrity of the Federal Employees Health Benefits Program. I would like to thank the United States Attorney’s Office and our law enforcement partners for all their hard work,” stated Scott Rezendes, OPM-OIG Special Agent in Charge.
The United States contended that between January 1, 2013, through December 31, 2016, Natera knowingly submitted false or fraudulent claims seeking payment from the TRICARE Program, FEHB, and Medicaid program for Natera’s genetic testing services, including its non-invasive prenatal test known as Panorama® (including optional panels that screened for microdeletion syndromes).
Specifically, the United States contended that for dates of service between January 1, 2013, through March 4, 2015, Natera improperly billed TRICARE for its Panorama® test, (including optional panels that screened for microdeletion syndromes), when TRICARE did not reimburse for certain laboratory developed test. Further, during dates of service between January 1, 2013, through December 31, 2016, Natera improperly billed TRICARE for non-invasive prenatal screening of certain microdeletion syndromes when TRICARE did not reimburse for this screening. During the same period, Natera improperly billed TRICARE, FEHBP, and Medicaid for its Panorama® test and for its non-invasive prenatal screening of certain microdeletion syndromes, by using an improper code which misrepresented the services Natera was billing to these programs. Lastly, during the same dates of service, Natera billed TRICARE, FEHBP, and Medicaid for its Panorama® test (including optional panels that screened for microdeletion syndromes) for patients with low-risk pregnancies. Natera denies this allegation.
This matter arose as a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. The relators, Sallie McAdoo and Steven Aldridge, filed a qui tam action on January 26, 2015, in United States District Court for the Western District of Kentucky (United States, ex rel. Sallie McAdoo and Steven Aldridge v. Natera, Inc., Civil Action No. 3:15-cv-88-DJH).
Natera is entering into a separate settlement agreement in the amount of $756,183.00 (the “Medicaid State Settlement Agreements”) for similar conduct related to various state Medicaid programs. The Medicaid State Settlement Agreement was negotiated by a team with the National Association of Medicaid Fraud Control Units.
The matter was handled by Assistant United States Attorney Benjamin S. Schecter, of the U.S. Attorney’s Office for the Western District of Kentucky. The investigation was conducted by the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Services (DCIS) and the Defense Health Agency (DHA).
natera_settlement03072018094335.pdfBuffalo Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brett Schultz, 39, of Buffalo, NY, who was convicted of attempted receipt of child pornography, was sentenced to 87 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that the defendant engaged in an online conversation with an individual he believed was a 15 year old high school girl. The individual was actually an undercover law enforcement officer.
Shortly into their conversation, Schultz asked the undercover officer, “so how old are you really?” The undercover officer replied, “I’m almost 16.” After discovering the undercover officer was a minor, the defendant requested sexually explicit images and pictures. Schultz then requested to the meet with the undercover officer at which time he was arrested.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Bradenton Man Sentenced to More Than 10 Years for Drug TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Michael Bernard Code (36, Bradenton) to 10 years and 5 months in federal prison for possessing with the intent to distribute controlled substances. He pleaded guilty on December 13, 2017.
According to court documents, on June 15, 2017, the Drug Enforcement Administration and the Manatee County Sheriff’s Office conducted surveillance of known narcotics trafficking locations in Manatee County. They observed a white Buick sedan leaving a suspected drug house and determined that the registered owner of the car had a suspended driver license. As officers attempted to initiate a traffic stop, the vehicle initially kept moving. When it finally stopped, Code exited the passenger side of the car carrying a black object, and fled on foot. The driver, Tony Marvin Johnson, was patted down for weapons, during which a deputy located a pill bottle containing approximately 8.5 grams of a white substance that appeared to be cocaine base. The substance field-tested positive for cocaine. Officers also recovered $237 from a fanny-pack strapped to Johnson’s waistband and another $207 from his front pants pockets.
Shortly thereafter, Code returned to the vehicle and was detained. Witnesses advised law enforcement that they saw Code throw objects on the ground in two separate locations. A search of those locations revealed a black magnetic type box containing the following: a digital scale, a plastic baggy containing Xanax pills, a plastic baggy containing approximately 13.5 grams of suspected fentanyl, a plastic baggy containing 13 smaller baggies with suspected fentanyl weighing approximately 8.2 grams, and a third plastic baggy containing 26 individual small baggies with an off-white powdery substance (weighing approximately 5.7 grams). The white substance field-tested positive for cocaine. The suspected fentanyl later lab-tested positive for MDMA.
Code later told law enforcement that Johnson had told him to run from the car and get rid of the objects. He also stated that he used narcotics and tested narcotics.
Johnson previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for April 3, 2018.
This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Shauna S. Hale. This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” 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.
Armed Career Criminal Sentenced to 180 MonthsRead the Press Release
CHATTANOOGA, Tenn. – On March 7, 2018, Chris Rayvon Starks, 31, of Shelbyville, Tennessee, was sentenced to serve 180 months in prison by the Honorable Curtis L. Collier, Senior U.S. District Judge. Upon his release from prison, Starks will be under the supervision of the U.S. Probation Office for five years.
Starks previously pleaded guilty to unlawfully possessing a firearm and ammunition in violation of the Gun Control Act. His sentence was enhanced based on his three prior convictions for aggravated robbery. He was sentenced under the Armed Career Criminal Act (“ACCA”).
In August 2016, law enforcement executed a search warrant at the residence of Starks in Shelbyville, Tennessee, during which they seized a loaded .32 caliber semi-automatic pistol. He was present during the execution of the search warrant and admitted the firearm was his. Further investigation determined that the firearm was actually stolen. Starks currently has pending aggravated robbery charges in Bedford County, Tennessee.
“The U.S. Attorney’s Office will continue to protect the safety of our citizens and neighborhoods by prosecuting convicted felons who illegally possess or attempt to gain access to firearms,” said U.S. Attorney J. Douglas Overbey. “The investigators in this case quickly and thoroughly investigated the information provided to them regarding this defendant, consequently disrupting any plan of violence that he may have intended to pursue,” added U.S. Attorney Overbey.
The indictment and subsequent prosecution of Starks was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael D. Porter represented the United States in court proceedings.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Anita A. Cruz Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant ANITA A. CRUZ, age 60, from Yigo, was sentenced yesterday in District Court, to 30 months imprisonment for Distribution of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). The Court also ordered CRUZ to pay a mandatory $100 assessment fee, serve three years of supervised release after her term of imprisonment and complete 50 hours of community service. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 15, 2017, CRUZ entered a guilty plea to distribution of methamphetamine hydrochloride. The investigation revealed that CRUZ distributed over seven (7) grams of methamphetamine with a purity level of over 97%. Guam Police Department Neighborhood Patrol Division had conducted a traffic stop in May 31, 2013 and discovered methamphetamine on the passenger and in the vehicle. The Violent Street Crimes Task Force, also known as the Bureau of Alcohol, Tobacco, Firearms and Explosives Task Force (ATF Task Force) conducted further investigation which led to the Defendant who was distributing methamphetamine.
Judge Ramona V. Manglona ruled that the sentence of 30 months imprisonment was fair and reasonable and noted the harm drugs cause to our islands. The Court urged Defendant, who the court described as in her “golden plus” years, to take advantage of intensive drug treatment while in prison, to assist her in overcoming her serious drug addiction, in hopes that she may return some day to Guam and become a productive member of society.
ATF Task Force conducted the investigation and credit is also given to the Guam Police Department who initiated the traffic stop. The sentencing was handled by Belinda Alcantara, an Assistant United States Attorney for the District of Guam.
Anchorage Man Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Misael Oquendo Vazquez, 45, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve eight years in prison, followed by a life term of supervised release, for possession of child pornography.
Vazquez used messaging applications on his phone and cloud-based storage sites to distribute and receive child pornography. When contacted by law enforcement, he was in possession of dozens of images and videos showing the sexual exploitation of minors, including videos that showed toddler-aged children being abused. The defendant also possessed a collection of non-pornographic images of children being spanked, some of whom had been abused to the point that their buttocks were bruised and injured.
At sentencing, Judge Burgess noted the seriousness of the crime, focusing on the victims in the child pornography images traded by Vazquez, as well as the children in the corporal punishment videos. Vazquez’s crime was serious not only because of “what it has done to the children in the [child pornography] videos” possessed by the defendant, said Judge Burgess, but also because of the “defendant’s proclivity to images that show corporal punishment, including images that show bruising [of kids].” Judge Burgess also was concerned about the threat posed by the defendant to the community, given the fact that he had been involved in the downloading and viewing of child pornography for more than 10 years.
Homeland Security Investigations (“HSI”) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
AlphaBay spokesperson Ronald L. Wheeler III a/k/a “Trappy” pleads guilty to conspiracyRead the Press Release
ATLANTA - Ronald L. Wheeler, III, a/k/a Trappy, has pleaded guilty to conspiracy to commit access device fraud for working as a public relations specialist for the Dark Web Marketplace AlphaBay.
“Wheeler spent hours on the Dark Web and general Internet providing AlphaBay users tips for attempting to avoid detection by law enforcement,” said U.S. Attorney Byung J. “BJay” Pak. “His plea is the end of his nefarious career as an AlphaBay promoter.”
“If people think the Dark Web gives them autonomy to operate illegally behind a cyber-curtain without the scrutiny of law enforcement, then Mr. Wheeler’s plea is a stark reminder that we won’t let that happen,” said David J. LeValley, Special Agent in Charge, FBI Atlanta. “We will not stop diligently prosecuting those who choose to disobey our laws and threaten our communities.”
“In pleading guilty, Ronald Wheeler has become another example that you cannot hide behind the anonymity created by the Darkweb,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “IRS-CI, with its law enforcement partners, will continue to take every step in taking down those who create and facilitate Dark Web sites while attempting to hide their illegal profits by seeking payment in digital currencies such as Bitcoin.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Ronald L. Wheeler III a/k/a Trappy conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through the operation of The Onion Routing (“TOR”) Dark Web marketplace AlphaBay. AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services. Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.”
Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids. The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web. Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from AlphaBay staffers.
On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay. Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com; moderating the AlphaBay message board forums; mediating sales disputes among AlphaBay users; promoting AlphaBay on the internet; and providing non-technical assistance to AlphaBay users. In return for his work, Wheeler received a salary in Bitcoin. Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website. Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website.
Sentencing for Ronald Wheeler, III, a/k/a Trappy, 24, of Streamwood, Illinois has been scheduled for May 24, 2018 at 2:00 p.m., before U.S. District Judge Leigh M. May.
This case is being investigated by the FBI and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case. Substantial assistance was provided by the U.S. Attorney’s Office for the Northern District of Illinois.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alaska Fugitive Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man, who is currently a fugitive, was sentenced yesterday in federal court for possessing images of child pornography.
Joshua Michael Evans, 45, of Eagle River, was sentenced by U.S. District Judge Sharon L. Gleason, to serve 14 years in prison, followed by a lifetime term of supervised release. Evans previously pleaded guilty on Nov. 2, 2016, to possession of child pornography and was placed on pretrial release pending sentencing. In October 2017, shortly before he was scheduled to be sentenced, Evans disappeared, prompting a manhunt by U.S. Probation, the FBI, and Alaska State Troopers. Evans remains at large.
The U.S. Attorney’s Office advises that anyone with information regarding the whereabouts of Joshua Evans are encouraged to call FBI Anchorage Field Office at 907-276-4441.
According to court documents, in May 2016, Evans became the subject of a federal investigation after law enforcement officials discovered Evans was using the internet to download videos and images of child sexual exploitation. Evans has a previous conviction from 2001 by the State of Alaska for sexual abuse of a minor.
The Federal Bureau of Investigation (“FBI”) and the Anchorage Police Department (“APD”) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Adam Alexander prosecuted the case. The U.S. Attorney’s Office commends the efforts of U.S. Probation, FBI, and the Alaska State Troopers in responding to Evans’ disappearance.
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Alabama Resident and Ringleader of Multi-Million Dollar Stolen Identity Tax Refund Fraud Schemes Sentenced to 30 Years in PrisonRead the Press Release
A Phenix City, Alabama, resident was sentenced today to 30 years in prison for his role in masterminding multiple stolen identity refund fraud (SIRF) schemes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin, Sr. of the Middle District of Alabama.
William Anthony Gosha III, a/k/a Boo Boo, was convicted, following a jury trial in November 2017, of one count of conspiracy, 22 counts of mail fraud, three counts of wire fraud, and 25 counts of aggravated identity theft.
According to the evidence presented at trial and sentencing, between November 2010 and December 2013, Gosha ran a large-scale identity theft ring with his co-conspirators, Tracy Mitchell, Keshia Lanier, and Tamika Floyd, who were all previously convicted and sentenced to prison. Together they filed over 8,800 tax returns with the Internal Revenue Service (IRS) that sought more than $22 million in fraudulent refunds of which the IRS paid out approximately $9 million.
In November 2010, Gosha stole IDs of inmates from the Alabama Department of Corrections and provided the IDs to Lanier who used the information to seek fraudulent tax refunds. Gosha and Lanier agreed to split the proceeds. Gosha also stole employee records from a company previously located in Columbus, Georgia. In 2012, Lanier needed an additional source of stolen IDs and approached Floyd, who worked at two Alabama state agencies in Opelika, Alabama: the Department of Public Health and the Department of Human Resources. In both positions, Floyd had access to the personal identifying information of individuals, including teenagers. Lanier requested that Floyd primarily provide her with identities that belonged to sixteen and seventeen year-olds. Floyd agreed and provided thousands of names to Lanier and others at Lanier’s direction.
After receiving the additional stolen IDs, Gosha recruited Mitchell and her family to help file the fraudulent tax returns. Mitchell worked at a hospital located at Fort Benning, Georgia, where she had access to the personal identification information of military personnel, including soldiers who were deployed to Afghanistan. She stole soldiers’ IDs and used their information to file fraudulent returns.
In order to electronically file the fraudulent returns, Gosha, Lanier, and their co-conspirators applied for several Electronic Filing Identification Numbers (EFIN) with the IRS in the names of sham tax preparation businesses. Gosha, Lanier, and their co-conspirators then used these EFINs to file the returns and obtain tax refund related bank products from various financial institutions, which provided them with blank check stock. Gosha and his co-conspirators initially printed out the fraudulently obtained refund checks using the blank check stock.
However, the financial institutions halted Gosha’s and his co-conspirators’ ability to print checks. As a result, they recruited U.S. Postal employees who provided Gosha and others with addresses on their routes to which the fraudulent refund checks could be directly mailed. In exchange for cash, these postal employees intercepted the refund checks and provided them to Gosha, Lanier, Mitchell and others. Gosha also directed tax refunds to prepaid debit cards and had those cards sent to addresses he controlled.
In addition, between January 2010 and December 2013, Gosha participated in a separate SIRF scheme with Pamela Smith and others, in which Gosha sold the IDs that he had stolen from the Alabama Department of Corrections to Smith and others. Smith and others used the IDs to file returns that sought approximately $4.8 million in fraudulent refunds of which the IRS paid out approximately $1.85 million. Smith also has been convicted and sentenced to prison for this conduct.
At Gosha’s sentencing, the government offered victim impact statements from several individuals whose identities were stolen, and from companies and governmental agencies where the identity theft breaches occurred. An Alabama Department of Public Health representative noted, the identity theft was not only devastating financially, but it also had a chilling effect on the department’s ability to serve the residents of the State of Alabama. A mother of a young U.S. Army soldier who was an identity theft victim described the consequences of the fraud on her and her family, stating:
While [my son] was fighting for our country and all back home[,] I received a very disturbing phone call from [an] Agent [] from the IRS that my son[,] while at Ft. Benning training to defend our country[,] the land of the free[,] had his identity stolen and fraudulent tax returns were filed with his social security number. This news was devastating to think that my [] 19-year-old son[,] who was defending the very freedom this country stands [for] [,] was wronged by one of those people [he] was willing to die for. My whole family could not believe what was happening. We now had to worry about this terrible act by one of our own. As I tried my best to keep composed and handle all of the gruesome mounds of paperwork to get this straightened out with the IRS, [my son] was then denied his tax refund [as result of this scheme]. This created a financial hardship on [him]. We were too afraid to tell [him] while he was deployed because we did not want to worry him and we wanted him to focus only on getting home alive and not have to worry about such an atrocious act by someone who did not even know [him].
In addition to the term of imprisonment, U.S. Chief District Court Judge Keith Watkins ordered Gosha to serve three years of supervised release and to pay restitution in the amount of $9,052,049.
Prior to Gosha’s sentencing, thirty of his co-conspirators have been sentenced, including Keisha Lanier who received 15 years and Tracy Mitchell who received over 13 years.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Franklin commended special agents of Internal Revenue Service-Criminal Investigation and U.S. Postal Service Office of Inspector General who investigated this case and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Alabama Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Earlier this week, a one-count information was filed charging Aziz Ihab Sayyed, 23, of Huntsville, Alabama, with attempting to provide services and personnel, namely himself, to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Sayyed pleaded guilty today.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jay E. Town for the Northern District of Alabama and Special Agent in Charge Johnnie Sharp Jr. of the FBI’s Birmingham Field Office made the announcement. The guilty plea was accepted by U.S. District Judge Abdul Kallon.
Sayyed acknowledged that he bought bomb-building ingredients last year, stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal, and attempted to form a cell to conduct violent acts within the United States. Sayyed admitted knowing that ISIS is a designated foreign terrorist organization.
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts, according to the court documents. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material, purchased the necessary ingredients for the explosive, and professed his aspiration to use TATP in an explosive belt and/or a car bomb, according to the plea agreement.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. The person was in fact an undercover employee (UCE) for the FBI. Sayyed and the UCE discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered himself as personnel to the UCE, believing that the UCE was an ISIS member.
Sayyed’s plea agreement stipulates a 15-year prison sentence.
The FBI investigated the case in conjunction with the Huntsville Police Department and the Madison County District Attorney’s Office. Assistant U.S. Attorneys Henry Cornelius and Davis Barlow of the Northern District of Alabama are prosecuting this case with the assistance of the National Security Division’s Counterterrorism Section.
Alabama Convicted Felon Sentenced to Nearly Eight Years in Federal Prison for Downloading Child Sex Abuse Videos in FloridaRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Christopher Jaye Boykin (35, Lisman, Alabama) to 7 years and 11 months in federal prison for downloading child sex abuse videos. He was also ordered to serve a 5-year term of supervised release, register as a sex offender, and pay $4,000 in restitution to two victims. Boykin was previously convicted of two felony drug offenses in Jacksonville in 2013.
According to court documents, in February 2014, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) determined that a host computer in Jacksonville, where Boykin was residing, was offering child pornography on a file-sharing network. Boykin later pawned that computer at a shop in Jacksonville, and it was seized by law enforcement.
On November 14, 2014, HSI agents executed a search warrant at Boykin’s home and seized another computer that he had used to download at least 50 videos depicting sexual abuse of young children. During an interview, Boykin admitted that both computers contained child pornography for his own “viewing pleasure.”
“This child predator thought he could be anonymous behind a computer screen,” said HSI Tampa Special Agent in Charge James C. Spero. “But thanks to the investigative work of HSI special agents, and our partners at the Jacksonville Sheriff’s Office and the Jacksonville Beach Police Department, this criminal will be held accountable for his crimes.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, and the Jacksonville Beach Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Akron man indicted for possession with intent to distribute fentanyl, heroin and methamphetamineRead the Press Release
An Akron man was indicted on charges of possession with intent to distribute fentanyl, heroin and methamphetamine, said U.S. Attorney Justin E. Herdman.
Dontez Yeager, 33, possessed more than 50 grams of methamphetamine as well as a mixture of heroin and fentanyl on Jan. 15, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Drug Enforcement Agency. The matter is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Abiomed, Inc. Agrees to Pay $3.1 Million to Resolve Kickback AllegationsRead the Press Release
BOSTON – Danvers-based Abiomed, Inc. has agreed to pay $3.1 million to resolve allegations that it violated the False Claims Act by purchasing lavish meals for physicians in order to induce them to use Abiomed’s Impella line of heart pumps.
The United States contends that Abiomed sought to induce physicians to use its pumps, which cost more than $20,000 each, by buying meals for them at some of the country’s most expensive restaurants, including Menton in Boston, Nobu in Los Angeles, Spago in Beverly Hills, and Eleven Madison Park in New York City. The government further contends that Abiomed (1) paid for physicians’ meals in instances where attendees ordered alcohol in an amount inconsistent with legitimate scientific discussion; (2) paid for meals at expensive restaurants where employees invited spouses of physicians to attend (and those spouses did attend) even though the spouses had no legitimate business purpose for attending the meal; (3) paid for numerous meals for physicians in which the cost per-attendee well exceeded Abiomed’s own $150 per person guideline (in one instance exceeding $450 per-attendee); and (4) paid for meals for physicians in which their employees misrepresented the number of attendees, listed attendees with generic names (e.g., Mike Anesthesia), or listed fictitious names of individuals who did not attend the meal, which had the effect of making the true per-attendee cost appear lower. Abiomed managers approved the expenses for all of these meals.
“We expect today’s settlement with Abiomed to serve as a warning to medical device manufacturers who try to improperly influence the treatment decisions of physicians,” said United States Attorney Andrew E. Lelling. “Providing doctors with lavish meals, or meals that focus on entertainment rather than education or science, can impair a physician’s independent medical judgment – something each and every patient is entitled to. My office will continue to investigate sales practices that interfere with that independent medical judgment and that heighten the risk of improper use of limited federal healthcare dollars.”
“The FBI will continue to target medical device manufacturers or pharmaceutical companies who attempt to influence the medical decisions of health care providers whether through expensive meals or other improper arrangements,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “This settlement reaffirms the efforts of the FBI and its partners, who remain committed to rooting out companies whose sales practices can interfere with the medical judgment of physicians.”
“Health care companies seeking to boost profits by wining and dining physicians must be held accountable,” said Special Agent in Charge Phillip Coyne with the Office of Inspector General of the U.S. Department of Health and Human Services. “Lavish dinners can undermine impartial medical decision-making of physicians, drive up health care costs, and reduce the public’s trust in federal government health plans.”
The settlement announced today stems from a complaint filed by a former Abiomed employee under the whistleblower provisions of the False Claims Act, which authorizes private parties to sue on behalf of the United States and to receive a portion of any recovery. See United States ex rel. Bennett v. Abiomed, Inc., No. 13cv12277-IT. The whistleblower will receive $542,500 of the settlement.
The investigation was handled by the Federal Bureau of Investigation and the Department of Health and Human Services Office of Inspector General. The matter was handled by Assistant U.S. Attorneys Patrick M. Callahan of Lelling’s Healthcare Fraud Unit and Abraham R. George of Lelling’s Affirmative Civil Enforcement Unit.
19 Members and Associates of Tennessee Mongols Motorcycle Gang Charged with Racketeering Conspiracy Including Murder and KidnappingRead the Press Release
A 62-count second-superseding indictment was returned by a federal grand jury in Nashville, Tennessee yesterday, charging 19 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking, and other crimes, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Yesterday’s indictment charges four additional members and associates of the Clarksville Mongols with kidnapping, murder, and additional crimes. Fifteen members and associates of the Clarksville Mongols were charged in January 2018. The four additional defendants are: William Nelper, aka Flip, 49, of Trenton, Kentucky; William Boylston, aka JC, 27; Jason Meyerholz, aka Country, 43; and Christopher Wilson, 35, all of Clarksville, Tennessee.
This indictment alleges that, among other crimes, on Nov. 19, 2017, Boylston, Meyerholz, and Wilson kidnapped Stephen Cole, a member of the Clarksville Mongols, at gunpoint, stripped him of his personal property, including his shoes, wallet and cell phones. Boylston and Meyerholz then transported Cole to Nelper’s residence in Trenton, where they murdered him, disposed of his body, and burned evidence of the crimes. All four defendants are charged with the kidnapping of Cole that resulted in his death.
The indictment also charges Nelper, Boylston, and Meyerholz with murdering Stephen Cole in aid of Racketeering, and charges Nelper with large-scale drug trafficking and money laundering.
An indictment is merely an accusation and all defendants are presumed innocent until proven guilty in a court of law.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Trial Attorney Robert Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee are prosecuting the case.
7 March 2018
Working Group Shares Best Practices for Spectator Sports Safety and SecurityRead the Press Release
Members of the International Sports Events Working GroupOn March 6, 2018, INTERPOL Washington—the U.S. National Central Bureau—hosted a one-day working group meeting to prepare for the April 2018 course, Risk Management Challenges for Major Sporting Events: A Global Perspective. The official training course will be hosted by INTERPOL Project STADIA at the INTERPOL Secretariat General (IPSG) in Lyon, France.
The Risk Management Challenges for Major Sporting Events: A Global Perspective course trains senior law enforcement and incident management team leaders involved in the decision-making process to prepare for and respond to large-scale incidents during major national and international sporting events. The course, a scenario-based practicum, designed by international subject matter experts, uses a systematic process to analyze and prioritize risks posed by a crisis, crowd management, crowd violence, and terrorism, and to develop effective risk treatments.
During Tuesday’s preparatory class, representatives from the University of Mississippi, National Center for Spectator Sports Safety and Security (NCS4) and INTERPOL IPSG brought together instructor-observers to conduct an intensive review of the course syllabus and modules. Participants were selected based on their respective backgrounds in specialized fields or their experience in conducting and leading law enforcement-related training in an international environment. The participants served as students for the instructor team and provided feedback and recommendations to strengthen the course.
Unprecedented Check Presented to Labor Trafficking VictimRead the Press Release
HOUSTON – The victim in what has become known as the Katy Nanny case has been presented with a check for the full amount of restitution owed to her, announced U.S. Attorney Ryan K. Patrick.
“This woman now has a better chance at a fresh start,” said Patrick. “We cannot undo the mental and physical harm she has experienced as a result of what her tormenters did to her. However, what we can do is give her what she is owed and the ability to regain some financial stability.”
Sandra and Chudy Nsobundu brought the Nigerian woman here to serve as their nanny for their five children under the guise of a better life. However, during her more than two years with the couple, the victim was forced to work practically 24 hours a day, seven days a week and was subjected to verbal and physical abuse. She could not eat with the family and was forced to sleep on the floor between the beds of two minor children.
Sandra Nsobundu, 50, pleaded guilty to unlawful conduct with respect to documents in furtherance of forced labor, while her husband - Chudy Nsobundu, 58, pleaded to visa fraud. As part of their pleas, they had previously agreed to pay restitution to the victim but argued that amount should not exceed $30,000 for the entire time the woman worked for them. However, an expert with the Department of Labor – Wage and Hour Division compiled an extensive report detailing the amount of wages due to the victim. Ultimately, at a hearing that concluded Jan. 5, 2018, U.S. District Judge Nancy Atlas ordered the couple to pay $121,035.04 in restitution to the victim. They were also ordered to serve sentences of 14 months – seven in prison and another seven on home confinement. In addition to the restitution, Sandra Nsobundu was further ordered to pay an additional $5,000 fine per the Justice for Victims of Trafficking Act of 2015. Both will also be required to serve a term of three years of supervised release following completion of the prison term.
In typical restitution matters, defendants are ordered to pay a set amount monthly, which is usually not set to begin until the complete the service of their sentences. In this case, the Nsobundus payments were set at a total of $500 per month. At that rate, it would have taken more than 20 years for the victim to receive full compensation. However, the FLU at the U.S. Attorney’s Office uncovered the Nsobunsu’s significant financial means and immediately worked to obtained their banking information and secure the full restitution payment with interest totaling $121,046.91.
The woman had begun working for the couple from on or about Sept. 29, 2013, through Oct. 10, 2015.
After obtaining the woman’s visa, the Nsobundus paid to transport the victim from Nigeria to the U.S. Once here, Sandra Nsobundu took the victim’s passport and copies of her bank statement. The defendants then concealed, removed and possessed the woman’s passport and visa with the intent to violate the forced labor statute. As part of their pleas, they admitted they intended to prevent and restrict, without lawful authority, the victim’s liberty and ability to move and travel in order to maintain her labor and services.
The couple knowingly unlawfully obtained the labor and services of this woman from on or about Sept. 29, 2013, to Oct. 10, 2015. Throughout the period she worked for defendants, the victim was not permitted to have her passport or visa. The Nsobundus knowingly enacted a scheme intended to cause the woman to believe that failure to perform the labor and services would result in serious harm to her. They also threatened abuse of law and the legal process. The scheme included not paying the victim and restricting her movement to the defendants’ residence or two short walks per day around the block with the children. They also frequently yelled at, scolded and berated the victim for moving too slowly or failing to care for the children in the manner they wanted. In addition, the Nsobundus threatened to send the woman back to Nigeria if she did not comply with their labor demands.
The Nsobundus had previously agreed to pay the victim 20,000 Nigerian nairas-$100 U.S. per month. The Nsobundus never paid the victim for any of her work here in the United States.
The victim was rescued Oct. 10, 2015, after more than two years with Nsobundus in the U.S. following a tip to the National Human Trafficking Resource Center.
“Labor trafficking often hides in plain sight,” said Patrick. “Suburban neighbors saw something was out of place and listened to their instincts when stories did not add up. They brought this case to light. We need the public’s help to notify law enforcement. If you see something, say something. A simple phone call ended this victim’s bondage.”
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. HTRA law enforcement includes members of the FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Houston Police Department, sheriff’s offices in Harris and Montgomery counties, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State-Diplomatic Security Service, Department of Labor, IRS and the Texas Department of Public Safety.
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses. In 2016, the Human Trafficking Rescue Alliance received $1.5 million in federal funds from the Bureau of Justice Assistance and the Office for Victims of Crime through the Enhanced Collaborative Model Anti-Human Trafficking Task Force Program, which provides funding to investigate and prosecute cases of human trafficking and provide services to victims.
Assistant U.S. Attorney (AUSA) Julie N. Searle and former AUSA Ruben R. Perez prosecuted the case. AUSA Martha Minnis and legal assistants Christina Hill, Kimmie Logan and Corey Richardson were responsible for the recovery of the restitution.
Two United Blood Nation Gang Members Sentenced to Federal ImprisonmentRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Spencer Johnson and Frank Truitt, both age 27, were sentenced to 87 months imprisonment and 71 months imprisonment, respectively, in federal court in Florence, South Carolina. Both men pled guilty to participating in drug and firearm conspiracies.
Johnson and Truitt were members of the Billies East Side Bloods, a local set of the United Blood Nation, operating in the Florence and Myrtle Beach areas of South Carolina. According to Assistant U.S. Attorney Andy Moorman, Johnson was a high-ranking gang member who was principally responsible for transporting to New York firearms stolen and/or unlawfully possessed by gang members, including Truitt. Once in New York, Johnson would purchase heroin and return with it to South Carolina. Johnson, Truitt, and other gang members would then sell the heroin locally in South Carolina.
The investigation was conducted by the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit’s Drug Enforcement Unit, and the Georgetown Police Department. Assistant U.S. Attorney Everett McMillian is also assisting in the prosecution.
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Two Oakland Gang Members Sentenced to 43 Years in Prison for Racketeering Conspiracy and Use of Firearms to Commit MurderRead the Press Release
OAKLAND – Two members of the West Oakland gang, Acorn, were sentenced to 43 years in prison for their respective roles in a criminal racketeering conspiracy, announced Acting United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The Honorable Phyllis J. Hamilton, Chief United States District Judge, sentenced Dionte Houff, a/k/a “Bird,” a/k/a “Birdman,” a/k/a “Tay,” and Houston Nathaniel, III, a/k/a “No No,” a/k/a “Lil No,” yesterday, following guilty pleas entered by the defendants on August 9, 2017. Both defendants admitted being involved with murder, distribution of controlled substances, and use of firearms.
According to his plea agreement, Nathaniel, 28, of Oakland, admitted that he became involved with the Acorn gang in or before 2008. He acknowledged that he agreed to participate in the Acorn gang’s activities to help achieve its objectives, such as shooting members of rival gangs and distributing drugs. Among the crimes Nathaniel committed for Acorn were two shootings that occurred on November 6, 2011, and another shooting on November 28, 2011. Nathaniel admitted that on the morning of November 6, he carried a firearm to a rival gang’s neighborhood and shot a victim. That victim suffered multiple gunshot wounds and has permanent injuries inhibiting his ability to walk. On the evening of the same date, Nathaniel shot a second victim. That victim was riding a bicycle through an area in West Oakland that the Acorn gang claims as its territory. Nathaniel also admitted his involvement in a shooting that occurred on November 28, 2011. On that day, Nathaniel knew a large group of people had gathered to film a music video. Nathaniel and other Acorn members believed that the music video was being filmed in an area where rival gang members lived and that the music video disrespected the Acorn gang. Nathaniel and others drove to the area with firearms and fired into the crowd. As a result, seven people suffered gunshot wounds, including a child who later died from the gunshot wound.
A federal grand jury indicted Nathaniel on July 19, 2012, and a superseding indictment was subsequently filed on June 18, 2015. On August 9, 2017, Nathaniel pleaded guilty to the following charges from that superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); maiming in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(2); assault with a dangerous weapon in aid of racketeering, in violation of 18U.S.C. § 1959(a)(2); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
Houff, 36, of Oakland, also admitted he was a member of the Acorn gang. Houff admitted he participated in the November 28, 2011 shooting that resulted in the death of a child and gunshot wounds to six others. For his part, Houff admitted he got into a car with other Acorn-affiliated persons and rode to the area where the music video was being filmed. Houff acknowledged he got out of the car, walked toward the group of people, and fired his gun into the group. Houff also admitted he was engaged in narcotics trafficking as part of his support for the Acorn gang.
Houff was named as a defendant in the July 19, 2012 indictment, and the June 18, 2015, superseding indictment. On August 9, 2017, Houff pleaded guilty to the following charges from the superseding indictment: racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); assault with a dangerous weapon in aid of racketeering, in violation of 18U.S.C. § 1959(a)(3); attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); using a firearm during and in relation to a crime of violence causing death, in violation of 18 U.S.C. § 924(j)(1); and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
In addition to the prison terms, Chief District Judge Hamilton also ordered each of the defendants to serve five years of supervised release.
The case is the result of an investigation by the ATF and the Oakland Police Department (OPD).
Three Plead Guilty to $29 Million Bank Fraud SchemeRead the Press Release
DALLAS — Three defendants charged with offenses stemming from their roles in a six year bank fraud scheme that caused $29,000,000 in fraudulent funding of loans, credit lines, and/or credit cards, have pleaded guilty to their respective roles in the scheme, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Yesterday, the lead defendant, Eddie Contreraz, 48, of Frisco, Texas, pleaded guilty before U.S. Magistrate Judge Renee Harris Toliver to one count of bank fraud. The maximum penalty for that offense is 30 years in federal prison, a $1 million fine and restitution. Sentencing is set for June 11, 2018.
Last week, co-defendants Stephanie Loraine Contreraz, 27, of Frisco, Texas, and Abraham Valdez, 53, of Frisco, Texas, each pleaded guilty to one count of conspiracy to commit bank fraud. The maximum penalty for that offense is 5 years in federal prison, a $250,000 fine and restitution.
All three defendants will remain on bond pending sentencing. Later this month, three additional defendants charged in the same case are also scheduled to plead guilty to one count of conspiracy to commit bank fraud. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.
According to the factual resume filed in the case, from January 2011 through March 2016, Contreraz was the owner and operator of Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG assisted its clients with credit repair and obtaining funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.
Beginning in about 2011, according to the factual resume, Contreraz produced and used many fraudulent documents to obtain loan approvals. Contreraz created consistently high quality fraudulent documents that Contreraz knew banks and other lending institutions accepted as valid and genuine documents. Contreraz and his employees then electronically transmitted these fraudulent documents to lenders.
During the period from about January 2011 through March 2016, approximately 95 percent or more of PMG’s clients obtained funding while using false and fictitious documents. Contreraz normally met with the clients and reviewed the information in their loan applications. Some clients did not have jobs, some did not have the necessary documents that banks required in the loan applications, and some did not have high enough income levels to qualify for a loan. When a client had such issues that might prevent loan approval by the bank, Contreraz told these clients that their loan would not be approved unless the client/borrower was willing to submit false information to the bank. False information provided included, inflated false income figures; false representations that the loan applicant's position was the manager of a company; false and fraudulent corroborating pay stubs, W- 2 tax documents, and/or utility bills.
Contreraz caused PMG employees Stephanie Contreraz, Abraham Valdez, Bryce Armijo, and Elizabeth Flint to use false financial information when clients applied for loans and credit cards over the telephone and the internet. These four codefendants worked with clients to insure that the clients reported the agreed-upon false information. These defendants also escorted clients to obtain the maximum number of loan approvals in a short period of time on the same day. The employees would take clients to meet with specific lender representatives that Contreraz already had established a relationship with and who agreed to help PMG clients.
Contreraz admitted that he caused all six of his co-defendant employees to assist borrowers fraudulently obtain at least 2,300 loans, credit lines, and/or credit cards from at least ten FDIC insured banks and at least another 140 loans, credit lines, and/or credit cards from three non-FDIC insured consumer lenders. During this period, all seven defendants participated in this bank fraud scheme that resulted in the fraudulent funding of loans, credit lines, and/or credit cards in the total amount of at least $29,000,000.
The Federal Bureau of Investigation, Fort Worth Division is investigating this fraud. Assistant U.S. Attorney David Jarvis is prosecuting.
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Thirty-One Year-Old Man Found Guilty of Child ExploitationRead the Press Release
SAN JUAN, P.R. – After a three-day jury trial and two hours of deliberation, Byron H. Montijo-Maysonet was found guilty of one count of coercion and enticement of a minor and four counts of transportation with intent to engage in criminal sexual activity with a minor, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Francisco A. Besosa presided over the trial.
According to the evidence presented at trial, on November 24, 2015, the defendant along with co-defendant, Luis Meléndez-Ramos, transported one 13-year-old female minor and one 14-year-old minor from their middle school in Manatí, PR, to a motel located in Barceloneta, PR, with the intent to engage in sexual activity. The defendant and Mr. Meléndez-Ramos used an internet instant messaging service to persuade one of the minors to return to the motel this time with a different 13-year-old female minor. On November 30, 2015, the defendant and Mr. Meléndez-Ramos picked up the two minor 13-year-old girls from their middle school and transported them to the motel to engage in sexual activity.
“This conviction shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute criminals whose crimes victimize children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”
The case was prosecuted by Assistant United States Attorneys Nicholas W. Cannon and Ginette Milanes. The defendant faces a mandatory minimum sentence of ten (10) years in prison. The sentencing is scheduled for June 6, 2018.
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Tampa Man Sentenced to Forty-Five Months’ Imprisonment for Identity Theft and Fraud SchemesRead the Press Release
Tampa, Florida – United States District Judge Charlene E. Honeywell today sentenced Rany Smith a/k/a “Abdelmajid Wahbi” (48, Tampa) to 45 months’ imprisonment for aggravated identity theft and conspiracy to commit mail and wire fraud. He pleaded guilty to charges on December 6, 2017.
According to court records, Smith, originally of Morocco, stole the identities of other North African immigrants and used them to carry out fraud schemes throughout Florida. In one scheme, he obtained employment as a manager at Tampa-area and South Florida businesses, using stolen identities to hide his prior felony conviction. He then used his managerial authority to hire “ghost employees,” whose wages he then collected and kept for himself. In other schemes, Smith obtained lines of credit using the personal identifying information of various identity theft victims and purchased goods and services from a variety of businesses across the United States. As a result, he incurred debts that he never repaid, causing tens of thousands of dollars in losses to the underwriting banks.
"This criminal stole the identities of other immigrants and used those identities to shield himself from being held accountable for illegal activities," said HSI Tampa Special Agent in Charge James C. Spero. "He victimized the immigrants whose identities he stole, Florida retailers and online merchants, and the U.S. taxpayers."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – National Security Division, the U.S. Air Force Office of Special Investigations, and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Eric K. Gerard.
Springdale Man Sentenced to 6 Years in Federal Prison for Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Pablo Jacinto-Torres, age 24, of Springdale, was sentenced today to 84 months in federal prison followed by three years of supervised release on one count of Possession With Intent To Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2017, the Springdale Police Department conducted several controlled purchase of methamphetamine from Pablo Jacinto-Torres. On May 15, 2017, Jacinto-Torres was stopped and arrested for an outstanding warrant. During the search of Jacinto-Torres vehicle, officers located digital scales, a large amount of cash and marijuana. A search of Jacinto-Torres residence resulted in officers locating approximately 178 grams of methamphetamine. The Arkansas State Crime Lab results reflect that the substance recovered tested positive for methamphetamine.
Jacinto-Torres was indicted by a federal grand jury in June 2017 and entered a guilty plea in November 2017.
This case was investigated by the Springdale Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.
Simpson County, Kentucky Resident Sentenced to 20 Years in Prison for Making and Possessing Illegal Firearms (Molotov Cocktails)Read the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell M. Coleman, announced the sentencing, of a Simpson County, Kentucky resident, in United States District Court yesterday, by United States District Judge Greg N. Stivers, to twenty years in prison, without the possibility of parole, for making and possessing illegal firearms, commonly known as Molotov cocktails.
“In this case, a phone call to law enforcement, and quick response by the Franklin Police Department and the ATF, may have saved Simpson County from untold harm,” stated United States Attorney Russell Coleman. “A vigilant public, aggressive law enforcement, and a significant punishment – twenty years – is the right formula for protecting our communities.”
Trey Alexander Gwathney-Law, 20, of Franklin, Kentucky, pleaded guilty to counts one and two of a superseding indictment, on June 16, 2017, before Judge Stivers and at that time was remanded to the custody of the United States Marshal Service. Gwathney-Law admitted to making and possessing five illegal firearms. According to court records and report by the Franklin Police Department, Gwathney-Law relayed to an acquaintance that he had made the devices in order to blow-up Franklin-Simpson County Middle School.
Specifically, according to the plea agreement, on September 27, 2015, Gwathney-Law knowingly made five illegal firearms. All were made using glass bottles. Four of the bottles (one Mountain Dew, one Sprite, and two Dr. Pepper) contained a dark gas/oil mixture liquid with a cloth wick stuffed in the bottle opening. Commonly referred to as a Molotov cocktail. A fifth, illegal firearm was made using a glass Root Beer bottle and contained a dark gas/oil mixture liquid with a piece of green pyrotechnic fuse attached to the opening with an epoxy sealant. The bottle contained a silver CO2 cartridge in the top of the bottle, under the pyrotechnic fuse. The CO2 cartridge contained explosive powder and small pieces of paper which appeared to have been soaked in the same flammable liquid found inside the bottle. Commonly referred to as a Molotov cocktail. Further, Gwathney-Law admitted to possessing the illegal firearms.
At sentencing, the United States moved to dismiss counts three and counts four of the superseding indictment and agreed that a sentence of 20 years, followed by a three year period of supervised release was the appropriate disposition in this case.
This case was prosecuted by Assistant United States Attorney Jo Lawless and was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP) and the Franklin, Kentucky Police Department.
Sanger, Texas Woman Sentenced to 36 Months Probation, $30,000 Restitution for Casino TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kristi Michelle Juarez, age 32, of Sanger, Texas, was sentenced to 3 years of probation and ordered to pay restitution in the amount of $30,000.00 for Theft By Officers Or Employees Of An Indian Gaming Establishment, in violation of Title 18, United States Code, Section 1168(b). The charge arose from an investigation by the Bureau of Indian Affairs.
The Indictment alleged that on January 2, 2017, in the Eastern District of Oklahoma, Kristi Michelle Juarez, while she was an employee of the Chickasaw Nation WinStar World Casino and Resort, embezzled, took and carried away in excess of $1,000.00 of moneys belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
United States Attorney Brian J. Kuester said, “The defendant is being held accountable for her theft from the Chickasaw Nation. During her term of probation the United States Probation Office will monitor the defendant and ensure that she is complying with the conditions ordered by the court. This office was able to successfully prosecute this case because of the thorough and professional investigative work by agents with the Bureau of Indian Affairs.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
San Diego FBI Paralegal Specialist Pleads Guilty to Theft of Nearly $160,000 in Government FundsRead the Press Release
A paralegal specialist for the San Diego Division of the FBI pleaded guilty today to embezzling nearly $160,000 in government funds, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge James K. Cheng of the Department of Justice Office of the Inspector General’s Los Angeles Field Division.
Lynn M. Morris, 51, of San Diego, California, pleaded guilty to one count of embezzlement of government property. Morris will be sentenced on June 4 before U.S. District Court Judge Larry Alan Burns of the Southern District of California.
According to admissions made in connection with her guilty plea, between July 2014 and November 2016, Morris embezzled approximately $159,821.90 that belonged to the United States and converted the funds for her own personal use. The funds were held in an account owned by the FBI San Diego Division’s Asset Forfeiture Unit (AFU). From 2014 to 2016, Morris was a paralegal specialist and the designated coordinator for the AFU. Morris admitted that to convert government funds to her own use, she used her knowledge and position within the FBI to withdraw cash from the AFU’s account and deposited portions of the stolen proceeds into her personal checking account.
The Department of Justice Office of the Inspector General investigated the case. Trial Attorneys Marco A. Palmieri and Jessica C. Harvey of the Criminal Division’s Public Integrity Section are prosecuting the case.
Salt River Man Sentenced for MurderRead the Press Release
PHOENIX – This week, Juan Carlos Burns, 20, of the Salt River Pima-Maricopa Indian Community was sentenced by U.S. District Judge David G Campbell to 34 years in prison. A federal jury had found Burns guilty of second degree murder and discharging a firearm causing death.
On Sept. 25, 2017, at the Auk Mor 2 gas station located on the Salt River Pima-Maricopa Indian Community, Burns, a member of the Salt River Pima-Maricopa Indian Tribe, shot the victim one time in the back of the head with a 9 mm handgun. The victim died within minutes. Evidence showed that Burns shot the victim as a result of a derogatory comment made by the victim toward Burns.
The investigation in this case was conducted by the Salt River Police Department and the Mesa Police Department and Crime Lab, to include the Safe Trails Task Force. The prosecution was handled by Thomas Simon and Robert Brooks, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00445-PHX-DGC
RELEASE NUMBER: 2018-023_Burns
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Salem Man Pleads Guilty to Conspiracy to Commit Sex TraffickingRead the Press Release
Roanoke, VIRGINIA – A Salem man, who believed he was enticing a 15-year-old female to engage in prostitution while actually communicating online with an undercover Franklin County Sheriff’s Deputy, pleaded guilty this week in U.S. District Court in Roanoke to a federal sex-trafficking charge. United States Attorney Rick A. Mountcastle made the announcement.
Shawn Paul Paisley, 48, waived his right to be indicted and pleaded guilty this week to one count of conspiracy to commit sex trafficking. At sentencing, Paisley faces a possible statutory maximum sentence of up to life in prison and/or a fine of up to $250,000. The defendant also faces a mandatory minimum term of supervised release of 5 years and a maximum term of life. A sentencing hearing has been scheduled for May 25, 2018.
In August of 2016, while posing as a 15-year-old female, a Franklin County Sheriff’s Deputy responded to a Craigslist advertisement posted by Paisley seeking a “personal/casual” encounter. Paisley gave the “female minor” a cell phone number and the two exchanged text messages. During the course of their text message exchanges, Paisley told the “female minor” that he ran an escort service and that his girls made good money. Paisley provided standard prices for the services the escorts offered and the two arranged to meet in order for the “female minor” to perform oral sex on Paisley.
Paisley left his home in Salem, Virginia and drove to Franklin County, Virginia to meet the “minor female.” When Paisley arrived in Franklin County, he was arrested.
Paisley admitted that he helped run an escort service, which involved recruiting females to engage in sex for pay. He helped arrange for encounters between recruited female prostitutes and the customers and took a portion of the fees paid for making the arrangements. Paisley recalls that at least two females he previously helped recruit were 17-years-old.
The investigation of the case was conducted by the U.S. Department of Homeland Security and the Franklin County Sheriff’s Office. Assistant United States Attorneys Laura Day Rottenborn and Matthew Miller are prosecuting the case for the United States.
Rochester, Indiana Man SentencedRead the Press Release
SOUTH BEND – Stephan Howard, age 55, of Rochester, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possessing methamphetamine with the intent to deliver, announced U.S. Attorney Kirsch.
Howard was sentenced to 168 months imprisonment followed by 5 years of supervised release.
According to documents in this case, on January 17, 2017, Howard possessed over 500 grams of methamphetamine in his home in Rochester which he intended to distribute to others. He also agreed to forfeit 18 firearms that were taken from his home by law enforcement on that day.
This case is being investigated by the Drug Enforcement Administration with the assistance of Indiana State Police, Rochester Police Department, Fulton County Police Department and the Fulton County Prosecuting Attorney. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Reno Man Pleads Guilty to Bank RobberyRead the Press Release
RENO, Nev. – A Reno man pleaded guilty yesterday to robbing a US Bank located inside a Safeway, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Mathew Eugene Hovious, 47, pleaded guilty to one count of bank robbery. United States District Judge Larry R. Hicks accepted the guilty plea. Sentencing is scheduled for June 4, 2018.
According to court documents, Hovious admitted that, on October 23, 2017, he approached a bank teller and said, “Sorry, I have to do this,” then proceeded to give the teller a note that read: “I have a gun and a friend outside. We will use it. Do not pursue. $50s, $20s, $10s only. No dye packs or Transponders. I will kill you.” The teller put money in an envelope for Hovious and he left the bank. He stole approximately $2,600.
At the time of sentencing, Hovious faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.
The case was investigated by the FBI. Assistant U.S. Attorney Megan Rachow is prosecuting the case.
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Porum Man Sentenced to 48 Months Probation, $48,000 Restitution for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Lee McLemore, age 55, of Porum, Oklahoma, was sentenced to 4 years of probation and ordered to pay restitution in the amount of $48,075.00 for False Statement, in violation of Title 42, United States Code, Section 1383a(a)(2). The charge arose from an investigation by the Social Security Administration’s Office of Inspector General.
The Indictment alleged that on or about February 1, 2017, within the Eastern District of Oklahoma, the defendant knowingly made or caused to be made a false statement or representation of a material fact to the Social Security Administration used to determine the right for any payment. Specifically, McLemore participated in a redetermination conference wherein he stated that he had not worked since the date of his last eligibility determination, when, in fact, he knew that he had been gainfully employed during the period.
United States Attorney Brian J. Kuester said, “Defrauding the Social Security Administration is theft from taxpayers and is a serious offense. The SSA Office of Inspector General works hard to detect, and investigate those that commit fraudulent schemes to receive SSA benefits they are not lawfully entitled to. The defendant in this case is being held accountable for his criminal acts. He will be closely monitored by the United States Probation Office and as part of his sentence he is required to pay restitution to reimburse the public funds he received.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
Pittsburgh Man Pleads Guilty to Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of possession of material depicting the exploitation of a minor, United States Attorney Scott W. Brady announced today.
Abhijeet Das, 27, of Pittsburgh, Pennsylvania, pleaded guilty on March 6 to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on November 8, 2017, Das unlawfully possessed computer graphic files containing approximately 1,000 photographs and 380 videos depicting minors engaged in sexually explicit conduct.
Judge Hornak scheduled sentencing for July 19, 2018 at 9:30 am. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Das on a $25,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Western Pennsylvania Crimes Against Children Task Force conducted the investigation that led to the prosecution of Das.
Pinellas Doctor Pleads Guilty to Receiving Kickbacks for Writing Prescriptions for Compounded MedicationsRead the Press Release
Tampa, Florida – Dr. Anthony Baldizzi (54, Largo) today pleaded guilty to conspiracy and receiving illegal kickbacks related to a federal health care benefit program. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Baldizzi, a medical doctor practicing in Pinellas County, wrote prescriptions for compounded creams for scars and pain, among other things. These creams, which were prescribed to TRICARE beneficiaries and others, cost between $900 and $21,000 for a one-month supply.
Beginning in May 2014, Baldizzi entered into an agreement with the owners of Lifecare Pharmacy, a Pinellas County-based compounding pharmacy, and the principals of Centurion Compounding, Inc., a Pasco County-based marketing firm that promoted compounded creams. Lifecare and Centurion agreed to pay Baldizzi 10 percent of each paid claim resulting from a prescription for a compounded cream written for his patients and filled at Lifecare. These prescriptions were often billed to TRICARE.
Also, at the request of Centurion’s owners, Baldizzi conducted “pop up” medical clinics at a hotel, retail store, and other locations in order to see high volumes of Centurion-recruited patients and prescribe Centurion-promoted compounded creams, many of which were paid for by TRICARE.
Lifecare received approximately $5.3 million from TRICARE for claims made for prescriptions for compounded medications prescribed by Baldizzi as a result of this illegal kickback scheme. The conspirators made cash payments to Baldizzi and bought him a $72,000 luxury car in return for writing the prescriptions for compounded creams for individuals covered by federal health care benefit programs.
Baldizzi’s co-conspirators, pharmacists Carlos Mazariegos and Benjamin Nundy, who owned and operated Lifecare Pharmacy, pleaded guilty to conspiracy to commit healthcare fraud in related cases and are set to be sentenced in June 2018. This investigation is ongoing.
This case was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services – Office of Inspector General, the U.S. Air Force Office of Special Investigations, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Pennsylvania Hospital and Cardiology Group Agree to Pay $20.75 Million to Settle Allegations of Kickbacks and Improper Financial RelationshipsRead the Press Release
UPMC Hamot (Hamot), a hospital based in Erie, Pennsylvania – and now affiliated with the University of Pittsburgh Medical Center (UPMC) – and Medicor Associates Inc. (Medicor), a regional physician cardiology practice, have agreed to pay the government $20,750,000 to settle a False Claims Act lawsuit alleging that they knowingly submitted claims to the Medicare and Medicaid programs that violated the Anti‑Kickback Statute and the Physician Self‑Referral Law, the Justice Department announced today. Hamot became affiliated with UPMC after the conduct resolved by the settlement occurred.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper compensation arrangement. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The settlement resolves allegations brought in a whistleblower action filed under the False Claims Act alleging that, from 1999 to 2010, Hamot paid Medicor up to $2 million per year under twelve physician and administrative services arrangements which were created to secure Medicor patient referrals. Hamot allegedly had no legitimate need for the services contracted for, and in some instances the services either were duplicative or were not performed.
“Financial arrangements that improperly compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs.”
The lawsuit was filed by Dr. Tullio Emanuele, who worked for Medicor from 2001 to 2005, under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. The Act also allows the government to take over the case or, as in this case, the whistleblower to pursue it. In a March 15, 2017 ruling, the U.S. District Court for the Western District of Pennsylvania held that two of Hamot’s arrangements with Medicor violated the Stark Law. The case was set for trial when the United States helped to facilitate the settlement. Dr. Emanuele will receive $6,017,500.
“Federal law prohibits physicians from entering into financial relationships that may affect their medical judgment and drive up health care costs,” said U.S. Attorney Scott W. Brady. “Today’s settlement demonstrates our commitment to ensuring that health care decisions are made based exclusively on the needs of the patient, rather than the financial interests of health care providers.”
This matter was handled on behalf of the government by the U.S. Attorney’s Office for the Western District of Pennsylvania, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Emanuele v. Medicor Associates, Inc. et al., Civil Action No. 10-cv-00245-JFC (W.D. Pa.). The False Claims Act claims resolved by this settlement are allegations only and there has been no determination of liability.
Parkersburg man sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today to two years in federal prison for a drug charge, announced United States Attorney Mike Stuart. Nathaniel Pittman, 27, previously pled guilty to possession with intent to distribute heroin and cocaine. U.S. Attorney Stuart commended the investigative efforts of the Wood County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The citizens of Parkersburg are some of the finest folks in West Virginia,” said U.S. Attorney Stuart. “We won’t tolerate drug dealers in Parkersburg or anywhere in this district, and we will continue working to keep them off the streets and locked up for their crimes.”
On July 7, 2016, members of the Wood County Sheriff’s Office conducted a traffic stop of Pittman’s vehicle and seized heroin and cocaine. Pittman admitted that he possessed the drugs found in his vehicle, and that he intended to sell the drugs. Lab testing confirmed that the drugs law enforcement recovered were over 80 grams of heroin and over 90 grams of cocaine.
Assistant United States Attorney John Frail handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Opinion | Violent crime = federal jail timeRead the Press Release
Published 1:05 p.m. CT March 6, 2018 | Updated 2:27 p.m. CT March 6, 2018
As a prosecutor, my ink pen is my primary weapon. I have a very nice Montblanc ink pen, which was a generous gift from a dear friend.
I use that pen to sign the indictments by which the federal criminal justice process begins, in order to ultimately hold criminal offenders accountable by sending them to federal prison.
Reducing violent crime, including offenses committed by the illegal possession and use of firearms, is the top priority of my office and the Department of Justice.
As directed by Atty. Gen. Jeff Sessions, we charge and pursue the most serious, readily provable violent and firearms offenses, and seek the most substantial punishment under the sentencing guidelines, including the use of mandatory minimum sentences for armed career criminals and felons in possession of firearms.
We have recommitted our efforts to initiatives that have worked in the past to reduce violent crime, such as the Project Safe Neighborhoods (PSN) program, which aggressively targets all firearms offenses with the most swift, certain, and appropriate penalties.
Only by a return to those policies and practices that have proven to work can we accomplish the goals of criminal prosecution to ensure public safety: incapacitation of dangerous offenders, specific and general deterrence of future crimes, retributive justice for victims and the community, and respect for the rule of law.
Bank and business robbery, carjacking, aggravated assault, and gang and domestic violence are all federal crimes committed with firearms that violate the fundamental civil rights of all citizens to be safe in their homes, businesses, and communities.
The violent crime rate in Memphis, Jackson, and across the Western District of Tennessee is unacceptably and disproportionately high - especially in our most vulnerable neighborhoods.
The news from the DOJ is that we are open for business, and we will not cede our safety and security in one city, in one neighborhood, or on one street corner to violent crime.
My message is clear: If you are a violent criminal with a firearm, you will be held accountable and removed from our streets. When you pick up your weapon, rest assured that I will pick up mine, and I will use it aggressively, frequently, and unapologetically.
At the U.S. Attorney’s Office, we are urgent in our mission to reduce violent crime. We are comprehensive in the scope of our investigations and prosecutions. And we are relentless in our resolve to make West Tennessee safe again.
D. Michael Dunavant is the United States Attorney for the Western District of Tennessee.
New Haven Man Sentenced to 12 Years in Federal Prison for Racketeering, Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MILES PRICE, also known as “Molly Rock,” 29, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment, followed by five years of supervised release, for racketeering, firearm possession and drug distribution offenses.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members. PRICE was an associate of RSGB.
On April 20, 2011, Benton recruited PRICE to assist in the robbery of money and marijuana from Kevin Lee of New Haven. On that date, Benton, PRICE, Luis “Chewie” Padilla and Rodrigo “Rico” Ramirez drove to the vicinity of Lee’s residence. Benton, PRICE and Padilla walked to the residence and Ramirez stayed in the car. Benton handed PRICE a .45 caliber handgun as they approached the back door. After Lee answered the door, Lee tried to grab PRICE’s gun and lunged at PRICE with a knife. Padilla then shot Lee once in the stomach, once in the back, and finally in the head.
PRICE also traveled to Maine at Benton’s request to assist in RSGB’s crack distribution enterprise.
In 2014, as part of an unrelated investigation, law enforcement conducted seven controlled purchases of crack from PRICE. On April 12, 2014, PRICE sold a .44 caliber revolver and a .22 caliber pistol to an individual working with law enforcement.
PRICE has been detained since his arrest on June 18, 2014. On October 6, 2015, he pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of possession with intent to distribute, and distribution of cocaine base (“crack”), and one count of possession of a firearm by a previously convicted felon.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton, Padilla and Ramirez pleaded guilty to various offenses stemming from this investigation, and admitted to participating in the murder of Kevin Lee. Benton also admitted that he participated in three other gang-related murders and one attempted murder, and Padilla admitted that he participated in two other gang-related murders and two attempted murders.
On October 4, 2017, Benton was sentenced to 480 months of imprisonment. Padilla and Ramirez await sentencing.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Multi-State Drug Investigation Yields Multiple Arrests, Drugs, Firearms, and MoneyRead the Press Release
MARTINSBURG, WEST VIRGINIA – After nearly a two-year investigation into a drug trafficking operation that spanned multiple states, ten people, including two MS-13 gang members, have been indicted on a variety of federal charges, United States Attorney Bill Powell announced.
Authorities in West Virginia and Virginia searched more than a dozen properties, seizing 12.5 kilos of cocaine with an estimated street value of more than $300,000, eleven firearms, hundreds of rounds of ammunition, and more than $100,000 in cash. Those indicted on multiple counts in connection with the drug distribution operation are:
- Rogelio Santacruz Godinez, also known as “Tramposo,” also known as “Trampa,” age 36, of Axton, Virginia, Mexican National
- Jose Alfredo Santacruz Godinez, also known as “Sandoval,” of Axton, Virginia, Mexican National
- Guadalupe Ibarra-Ayon, also known as “Lupe,” age 30, of Winchester, Virginia, Mexican National
- Eduardo Hernandez Sanchez, also known as “Lalo,” age 42, of W, West Virginia, Mexican National
- Suspected MS-13 Gang Member Jose Santiago Cruz-Delcid, also known as “Trucko,” also known as “Truckito,” age 38, of Bunker Hill, West Virginia, El Salvador National
- Confirmed MS-13 Gang Member Miguel Angel Cruz-Polanco, age 34, of Martinsburg, West Virginia, El Salvdaor National
- Adam Gunn, II, age 30, of Martinsburg, West Virginia
- Adam Bensaid, age 19, of Martinsburg, West Virginia
- Rogelio Martinez-Rojas, age 34, of Martinsburg, West Virginia, Mexican National
- Kenneth Biermann-Ruz, also known as “Ruz,” also known as “Chile,” age 29, of Martinsburg, West Virginia
“This investigation lasted nearly two years and involved the cooperative efforts of federal, state and local law enforcement agencies. When those efforts were combined with the work of our Assistant U.S. Attorneys the stage was set for results, including the indictments that have now been returned by the Grand Jury. This cooperative effort, through the use of a task force, is the perfect example of how such an investigation should be run. These agencies worked together, were not worried about who got credit, combined resources, and got big results. We are a small district and task forces, like the one that worked this investigation, are a force multiplier. I can’t thank the task force, its leaders, and participating agencies enough for their dedicated work in this investigation.
“The task forces across the district, the federal, state and local law enforcement, the Assistant U.S. Attorneys and our colleagues in county prosecutor offices across will continue to aggressively pursue all of those who come into this district thinking they can distribute poison in our communities. Whether that poison is the form of cocaine, like in these indictments, heroin, fentanyl, or methamphetamine, we will relentlessly pursue them. This investigation has shown that violent gangs like MS-13 are attempting infiltrate our state. If you are MS-13, do not come here. We know what you stand for, we will find you, and we will prosecute you for violations of the law.
It is important to state that we have a number of ongoing investigations, and I expect we will continue to work together towards successful conclusions in all of them,” said Powell.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the cases on behalf of the government. The U.S. Attorney’s Office of the Western District of Virginia assisted. The investigation is led by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Mineral County Sheriff's Office, the Martinsburg Police Department, the Charles Town Police Department, the Keyser City Police Department, and the Ranson Police Department. Other agencies assisting in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mississippi Juvenile Detention Officers Indicted for Multiple Assaults and Cover-UpRead the Press Release
The Department of Justice today announced that an officer at the Leflore County Juvenile Detention Center in Greenwood, Mississippi was charged with assaulting two juveniles in his custody. The indictment, which was returned on Feb. 21, 2018 but unsealed today, alleges that Edward Gibson, 28, punched and threw an electric fan at one juvenile, and struck the other juvenile in the head and body.
A separate indictment also unsealed today charged his supervisor, Dianne Williams, 60, with writing a false report to cover up one of the assaults. The indictment alleges that Williams falsely wrote that she had no knowledge of the assault, when in fact she was aware of it.
The indictments were announced by Acting Assistant Attorney General for the Civil Rights Division John Gore, United States Attorney William C. Lamar of the Northern District of Mississippi, and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation, Jackson Field Division.
If convicted, Gibson faces a maximum punishment of 10 years imprisonment for each excessive force charge. Williams faces up to 20 years imprisonment on the false report charge. An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the Jackson Division of the Federal Bureau Investigation, with the cooperation of the Leflore County Sheriff’s Department and the Leflore County Detention Center. It is being prosecuted by Assistant United States Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Mesquite Man Sentenced to 96 Months in Federal Prison for Possession of a FirearmRead the Press Release
DALLAS — Luis Baeza Caro, 33, of Mesquite, Texas, was sentenced Monday by U.S. District Judge David C. Godbey to 96 months in federal prison for being a convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Caro pleaded guilty in November 2017 to one count of possession of a firearm by a convicted felon. He has been in custody since his arrest in May 2017.
According to information provided at the sentencing hearing, on November 3, 2016, law enforcement were summoned to Caro’s residence after they received complaints of gunshots being fired in the backyard. Caro, a multi-convicted felon and gang member, was arrested and the police recovered three firearms and marijuana from his residence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Mesquite Police Department. Assistant U.S. Attorneys Gary Tromblay and Mark Penley prosecuted.
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Medina Resident Sentenced for Forging Court DocumentsRead the Press Release
Memphis, TN – A Medina resident has been sentenced to federal prison for forgery of a court document. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, Jay Richard Hassman, 52, of Medina, Tennessee, had outstanding debts with various creditors. Hassman created a fictitious restraining order, bearing a forged digital signature of U.S. District Court Judge Sheryl H. Lipman, stating that the creditors were restrained from "reprocessing, beginning the foreclosure process, shutting off utilities, eviction proceedings and/or other services until May 19, 2016." The order also required the creditors to negotiate Hassman’s debts and credit him any fees. He sent the order to several of his creditors.
On February 28, 2018, Hassman was sentenced to eight months imprisonment by U.S. Senior District Judge Samuel H. Mays, Jr., consecutive to 11 months currently serving in Tipton County on an unrelated matter, followed by 3 years supervised release.
This case was investigated by the FBI. Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.
McAllen Man Heads to Prison for Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 30-year old resident of McAllen has been sentenced to federal prison following his conviction of receipt of child pornography, announced U.S. Attorney Ryan K. Patrick. Rodrigo Garcia-Fuentes pleaded guilty June 2, 2017.
Today, U.S. District Judge Randy Crane took into consideration the age of the victims depicted in the videos and photographs, as well as the number of images possessed by the defendant and handed Garcia-Fuentes a sentence of 70 months in prison. Garcia-Fuentes was further ordered to be on supervised release for the remainder of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He was also ordered to register as a sex offender and pay restitution to the victims in the amount of $62,500.
Garcia-Fuentes came to the attention of law enforcement following an investigation which began April 4, 2016, into persons using the Internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through a peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On July 29, 2016, HSI agents executed a federal search warrant at the McAllen residence, during which time they seized a computer. A forensic examination on the computer revealed 650 videos and 658 images of child pornography involving minor children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Garcia-Fuentes admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his computer. He admitted he had been downloading child pornography for approximately four years.
Garcia-Fuentes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney David Paxton, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Maple Heights man indicted on firearm chargeRead the Press Release
A federal grand jury returned an indictment charging Dwayne B. Sheron, 36, of Maple Heights, for being a felon in possession of a firearm and ammunition.
Sheron possessed a 9 mm firearm after having previously been convicted on three prior occasions of drug trafficking, which makes it illegal for him to have a firearm, according to the indictment.
Assistant United States Attorney Brian S. Deckert is prosecuting the case following an investigation by the Bureau of Alcohol, Tobacco and Firearms and the Cleveland Division of Police.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.