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Newest first across public DOJ and U.S. Attorney press releases.
Thursday 21 December 2017
Local Felon Charged with Illegally Possessing Gun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Montcrief Grinage, 39, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about December 13, 2017, Grinage illegally possessed a firearm and ammunition after previously having been convicted of a felony. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lake in the Hills Man Indicted on Child Pornography ChargesRead the Press Release
ROCKFORD — A man from Lake in the Hills has been indicted by a federal grand jury in Rockford on charges of child pornography.
PAUL W. CHRISTMANN, 50, was charged Tuesday with two counts of transporting child pornography via the internet in 2013, and one count of possessing two computers in 2017 containing images of child pornography.
Each count of transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and possessing child pornography carries a maximum of up to ten years in prison. Each count carries a $250,000 maximum fine. If Christmann is convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Federal Bureau of Investigation in Chicago. The McHenry County Sheriff’s Office and Internet Crimes Against Children Task Force assisted in the investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Justice Department Requires TransDigm Group to Divest Airplane Restraint Businesses Acquired from TakataRead the Press Release
The Department of Justice announced today that TransDigm Group Incorporated will be required to divest two businesses it acquired from Takata Corporation. The divestitures will restore competition in markets for several types of restraint systems used on commercial airplanes. TransDigm acquired the businesses—SCHROTH Safety Products GmbH and SCHROTH Safety Products LLC (collectively, “SCHROTH”)—from Takata in February 2017 in a $90 million transaction that, due to its structure, was not reportable under the Hart-Scott-Rodino Antitrust Improvements Act.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia challenging the consummated acquisition. At the same time, it filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“Today’s settlement, which requires TransDigm to divest the entire SCHROTH business, restores competition without relying on a regulatory behavioral decree,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “TransDigm’s AmSafe subsidiary is the world’s largest supplier of restraint systems used on commercial airplanes and SCHROTH was its only meaningful competitor.”
According to the Department’s complaint, AmSafe and SCHROTH develop, manufacture, and sell a wide range of restraint systems used on commercial airplanes, including traditional two-point lapbelts, three-point shoulder belts, technical restraints, and more advanced “inflatable” restraint systems such as airbags. The complaint alleges that prior to the acquisition, SCHROTH was a growing competitive threat to AmSafe that was challenging AmSafe on price and investing heavily in the research and development of new restraint technologies. According to the complaint, the acquisition eliminated TransDigm’s most significant competitor, and the loss of competition between AmSafe and SCHROTH was likely to result in higher prices and reduced innovation.
Under the terms of the proposed settlement, TransDigm must divest the entirety of SCHROTH, including its facilities in Pompano Beach, Florida, and Arnsberg, Germany, to a consortium between Perusa Partners Fund 2, L.P. and SSP MEP Beteiligungs GmbH & Co. KG (MEP KG), or an alternate acquirer approved by the United States. Pursuant to an agreement with the Antitrust Division, TransDigm held SCHROTH separate from AmSafe during the pendency of the Division’s investigation.
Perusa is a diversified German private equity fund that invests in mid-sized companies. MEP KG is a German limited partnership owned by several members of the existing management team of SCHROTH, including executives who have extensive experience in the airplane restraint systems business. The Department said that the divestiture will remedy the acquisition’s anticompetitive effects by quickly reestablishing SCHROTH as an independent competitor.
TransDigm, a Delaware corporation headquartered in Cleveland, Ohio, is a leading global designer, manufacturer, and supplier of highly engineered airplane components. In 2016, TransDigm’s global revenues were $3.1 billion. TransDigm’s AmSafe subsidiary is a Delaware corporation headquartered in Phoenix, Arizona. AmSafe had global revenues of approximately $198 million in 2016.
SCHROTH Safety Products GmbH (SSPG) is a German limited liability corporation based in Arnsberg, Germany. SCHROTH Safety Products LLC (SSPL) is a Delaware corporation based in Pompano Beach, Florida. SSPG and SSPL collectively had approximately $37 million in revenue in fiscal year 2016.
As required by the Tunney Act, the proposed consent decree, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Justice Department Recovers over $3.7 Billion from False Claims Act Cases in Fiscal Year 2017Read the Press Release
The Department of Justice obtained more than $3.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2017, Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division announced today. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $56 billion.
“Every day, dedicated attorneys, investigators, analysts, and support staff at every level of the Justice Department are working to root out fraud and hold accountable those who violate the law and exploit critical government programs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The recoveries announced today are a testament to the efforts of these valuable public servants and a message to those who do business with the government that fraud and dishonesty will not be tolerated.”
Of the $3.7 billion in settlements and judgments, $2.4 billion involved the health care industry, including drug companies, hospitals, pharmacies, laboratories, and physicians. This is the eighth consecutive year that the department’s civil health care fraud settlements and judgments have exceeded $2 billion. The recoveries included in the $2.4 billion reflect only federal losses. In many of these cases, the department was instrumental in recovering additional millions of dollars for state Medicaid programs.
In addition to combatting health care fraud, the False Claims Act serves as the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.
Health Care Fraud
The department investigates and resolves matters involving a wide array of health care providers, goods and services. The department’s health care fraud recoveries restore valuable assets to federally funded programs, such as Medicare, Medicaid, and TRICARE. But just as important, the department’s vigorous pursuit of health care fraud prevents billions more in losses by deterring others who might otherwise try to cheat the system for their own gain.
The largest recoveries involving the health care industry this past year – over $900 million – came from the drug and medical device industry. Shire Pharmaceuticals LLC paid $350 million to resolve allegations that Shire and the company it acquired in 2011, Advanced BioHealing (ABH), induced clinics and physicians to use or overuse its bioengineered human skin substitute by offering lavish dinners, drinks, entertainment and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits and rebates. In addition to these kickback allegations, the settlement also resolved allegations brought by relators that Shire and ABH unlawfully marketed the skin substitute for uses not approved by the FDA, made false statements to inflate the price of the product, and caused improper coding, verification, or certification of claims for the product and related services. The settlement included $343.9 million in federal recoveries, and another $6.1 million in recoveries to state Medicaid programs.
In another important case, drug manufacturer Mylan Inc. paid approximately $465 million to resolve allegations that it underpaid rebates owed under the Medicaid Drug Rebate Program by erroneously classifying its patented, brand name drug EpiPen – which has no therapeutic equivalents or generic competition – as a generic drug to avoid its obligation to pay higher rebates. Between 2010 and 2016, Mylan increased the price of EpiPen by approximately 400 percent yet paid only a fixed 13 percent rebate to Medicaid during the same period based on EpiPen’s misclassification as a generic drug. Mylan paid approximately $231.7 million to the federal government and $213.9 million to state Medicaid programs.
The department also reported substantial recoveries from other health care providers. Life Care Centers of America Inc. and its owner agreed to pay $145 million to settle allegations that it caused skilled nursing facilities to submit false claims for rehabilitation therapy services that were not reasonable, necessary, or skilled. This was the largest civil settlement with a skilled nursing facility chain in the history of the False Claims Act. The government alleged that Life Care instituted corporate-wide policies and practices designed to place beneficiaries in the highest level of Medicare reimbursement – known as “Ultra High” – irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also allegedly sought to keep patients longer than necessary in order to continue billing for rehabilitation therapy.
In addition, eClinicalWorks (ECW) – a national electronic health records software vendor – and certain of its employees paid $155 million to resolve allegations that they falsely obtained certification for the company’s electronic health records software by concealing from its certifying entity that its software did not comply with the requirements for certification. For example, rather than programming all the required standardized drug codes into its software, the company allegedly “hardcoded” into its software only the drug codes required for testing. As a result of the deficiencies in its software, ECW allegedly caused physicians who used its software to submit false claims for federal incentive payments. The United States also alleged that ECW paid unlawful kickbacks to certain customers in exchange for promoting its product.
“While we encourage voluntary reporting of suspected federal violations through self-disclosures, compliance guidance, and corporate integrity agreements, the False Claims Act holds accountable those health care organizations unwilling to comply with law,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “Large health care recoveries benefit vulnerable Medicare and Medicaid beneficiaries as well as the taxpayers who support these programs.”
Housing and Mortgage Fraud
The department reported settlements and judgments totaling over $543 million in the areas of housing and mortgage fraud this past fiscal year. In September 2017, a unanimous jury in Houston, Texas, found that Allied Home Mortgage Capital Corporation and Allied Home Mortgage Corporation violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and awarded the government over $296 million. The court also entered judgment for over $25 million against Allied’s President and Chief Executive Officer (CEO). At trial, the government presented evidence that Allied falsely certified that thousands of high risk, low quality loans were eligible for Federal Housing Administration (FHA) insurance and then submitted insurance claims to FHA when any of those loans defaulted. The jury also heard evidence that, to evade oversight and disguise default rates, Allied Capital originated FHA-insured loans from more than one hundred “shadow” branch offices without the authorization of HUD. In addition, the jury received evidence that Allied’s quality control department submitted falsified quality control reports to HUD auditors and falsely certified that Allied was in compliance with HUD quality control guidelines. Allied has appealed the judgment.
In addition to the judgment against Allied, the Department secured a settlement with PHH Mortgage for $65 million and Financial Freedom for $89 million. PHH Mortgage admitted that it had originated and endorsed residential mortgages as eligible for federal insurance by the FHA that did not meet underwriting requirements intended to reduce the risk of default. The government alleged that although internal reports identified high rates of underwriting deficiencies, PHH Mortgage failed to report such deficiencies to the authorities as required under the program to enable the agency to prevent continued program violations and mounting losses. By originating and endorsing ineligible loans for FHA insurance, PHH Mortgage allegedly put borrowers at risk of losing their homes, and increased its mortgage profits at taxpayer expense while incurring little or no risk of its own. The settlement with Financial Freedom concerned the servicing of reverse mortgage loans, which allow older people to access equity in their homes. The United States alleged that Financial Freedom misrepresented its eligibility for certain insurance payments, thereby obtaining interest from FHA to which it was not entitled.
Procurement Fraud
In fiscal year 2017, the department aggressively pursued a variety of procurement fraud matters. For example, Agility Public Warehousing Co. KSC, a Kuwaiti company, as part of a global settlement, paid $95 million to resolve civil fraud claims and agreed to forgo administrative claims against the United States seeking $249 million in additional payments under its military food contracts, among other terms. In its civil complaint, the United States alleged that Agility knowingly overcharged the Department of Defense for locally available fresh fruits and vegetables supplied to U.S. soldiers in Kuwait and Iraq by failing to disclose and pass through discounts and rebates it obtained from suppliers, as required by its contracts.
The department resolved two cases involving the alleged failure to follow applicable nuclear quality standards. Bechtel National Inc., Bechtel Corp., URS Corp. (the predecessor in interest to AECOM Global II LLC) and URS Energy and Construction Inc. (now known as AECOM Energy and Construction Inc.) agreed to pay $125 million to resolve allegations that they charged the Department of Energy (DOE) for deficient nuclear quality materials, services, and testing, and improperly used federal contract funds to pay for a comprehensive, multi-year campaign to lobby Congress and other federal officials. Energy & Process Corporation (E&P) agreed to pay $4.6 million to resolve allegations that it knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a DOE nuclear waste treatment facility.
CA Inc. agreed to pay $45 million to resolve allegations that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract for software licenses and maintenance services. The settlement resolved allegations that CA provided false information to the GSA about the discounts it gave commercial customers for its software licenses and maintenance services during contract negotiations and failed to provide government customers with additional discounts when commercial discounts improved.
Other Fraud Recoveries
The number and variety of judgments and settlements announced during fiscal year 2017 illustrate the diversity of cases pursued by the department to root out fraud and false claims against the government wherever they may be found.
For example, SolarCity Corporation agreed to pay $29.5 million to resolve allegations that it submitted inflated claims to the U.S. Department of the Treasury pursuant to Section 1603 of the American Recovery and Reinvestment Act of 2009. Under the Section 1603 Program, the Treasury paid a cash grant to construct or acquire qualified renewable solar energy systems. The settlement resolved allegations that SolarCity falsely overstated the cost bases of its solar energy properties in claims for Section 1603 funds in order to receive inflated grant payments from the Treasury. As part of the settlement, SolarCity and its affiliates also released all pending and future claims against the United States for additional Section 1603 payments.
Total Call Mobile LLC agreed to pay $30 million to resolve allegations that it defrauded the Lifeline Program, a federal government subsidy program that offers discounted mobile phone services to eligible low-income consumers. Total Call and its co-defendants allegedly submitted false claims for federal payments by seeking reimbursement for tens of thousands of consumers who did not meet Lifeline Program eligibility requirements. As part of the settlement, Total Call entered into a separate administrative agreement with the Federal Communications Commission and agreed to no longer participate in the Lifeline Program.
ADS Inc. and its subsidiaries agreed to pay $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts. The settlement also resolved allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement with ADS ranked as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.
Individual Accountability
The department continued to ensure individual accountability for corporate wrongdoing by pursuing False Claims Act and other civil remedies to redress fraud by individuals as well as corporations.
In some cases, individual owners and executives of private corporations agreed to be held jointly and severally liable for settlement payments with their corporations. For example, Girish Navani, Rajesh Dharampuriya, and Mahesh Navani, three of the founders of eClinicalWorks, agreed to joint and several liability for the $155 million settlement discussed above. In addition, three other eClinicalWorks employees – developer Jagan Vaithilingam and project managers Bryan Sequeira, and Robert Lynes – entered into separate settlement agreements to resolve liability for their alleged personal involvement in the conduct. Forrest Preston, the owner of Life Care Centers of America, agreed to joint and several liability for the $145 million settlement discussed above, and Nicholas and Gregory Melehov, the owners of Medstar Ambulance Inc., agreed to be jointly and severally liable for a $12.7 million settlement with their company.
The department also obtained more than $60 million in settlements and judgments with individuals under the False Claims Act that did not involve joint and several liability with the corporate entity. For example, after 21st Century Oncology LLC paid $19.75 million to resolve allegations that it billed federal health care programs for medically unnecessary laboratory tests, the department secured separate settlements with various individual urologists, including a $3.8 million settlement with Dr. Meir Daller, resolving allegations that the physicians referred unnecessary tests to a laboratory owned and operated by 21st Century Oncology. Other examples include Dr. Robert Windsor, a pain management physician who agreed to the entry of a $20 million consent judgment to resolve allegations that he billed federal health care programs for surgical monitoring services that he did not perform and for medically unnecessary diagnostic tests; Dr. Gary L. Marder, a physician and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, Florida, who agreed to the entry of an $18 million consent judgment in connection with the performance of radiation therapy services; Joseph Bogdan, the owner of AMI Monitoring Inc. (also known as Spectocor), who agreed to pay $1 million to resolve liability for his alleged involvement in billing Medicare for higher and more expensive levels of cardiac monitoring services than requested by the ordering physicians; and Siddhartha Pagidipati, the former CEO of Freedom Health, who agreed to pay $750,000 to resolve liability for his alleged involvement in an illegal scheme to maximize payment from the Medicare Advantage program.
Recoveries in Whistleblower Suits
Of the $3.7 billion in settlements and judgments reported by the government in fiscal year 2017, $3.4 billion related to lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the government paid out $392 million to the individuals who exposed fraud and false claims by filing a qui tam complaint.
The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 669 qui tam suits filed this past year – an average of more than 12 new cases every week.
“Because those who defraud the government often hide their misconduct from public view, whistleblowers are often essential to uncovering the truth,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department’s recoveries this past year continue to reflect the valuable role that private parties can play in the government’s effort to combat false claims concerning government contracts and programs.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. And in 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which further strengthened the False Claims Act and its whistleblower provisions.
Mr. Readler also expressed his deep appreciation for the many dedicated public servants who investigated and pursued these cases throughout the Department’s Civil Division and the U.S. Attorneys’ Offices, as well as the agency Offices of Inspector General, and the many federal and state agencies that contributed to the Department’s recoveries this past fiscal year.
“One of the honors of leading the Civil Division is the pleasure of working with the many passionate, dedicated, and talented Department of Justice employees,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “These individuals have committed their careers to serving the American people and defending the interests of our great nation. The accomplishments announced today are largely the result of their hard work and sacrifices.”
The government’s claims in the matters described above are allegations only; except where indicated, there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
Jury Convicts Stafford Man of Dealing Drugs While ArmedRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Stafford man today of drug and firearms offenses.
According to court records and evidence presented at trial, Mark Jamahl Stephens, 26, was arrested by the Metropolitan Police Department in May 2017 after officers discovered two firearms and crack cocaine in his vehicle. Following his arrest, ATF agents executed a search warrant at his home and seized three firearms and marijuana packaged for distribution.
Stephens was convicted of possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory minimum penalty of five years in prison when sentenced on Feb. 23, 2018. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Peter Newsham, Chief of Metropolitan Police Department, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the verdict. Assistant U.S. Attorneys Tobias D. Tobler and William M. Sloan are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-202.
Joint Statement from Attorney General Sessions, FBI Director Wray, DNI Coats, CIA Director Pompeo, and NSA Director Rogers on FISA Section 702 ReauthorizationRead the Press Release
Reauthorizing Section 702 before it expires is vital to keeping the nation safe. Let us be clear: if Congress fails to act, vital intelligence collection on international terrorists and other foreign adversaries will be lost. The country will be less secure.
There is no substitute for Section 702. If Congress fails to reauthorize this authority, the Intelligence Community will lose valuable foreign intelligence information, and the resulting intelligence gaps will make it easier for terrorists, weapons proliferators, malicious cyber actors, and other foreign adversaries to plan attacks against our citizens and allies without detection. Section 702 has been instrumental in preventing attacks on the homeland and removing terrorists from the battlefield.
To be clear – Congress is not required to make any changes to Section 702. The Intelligence Community conducts and uses 702 collection in a manner that protects the privacy and civil liberties of individuals. Every single court that has reviewed Section 702 and queries of its data has found it to be constitutional. The Intelligence Community’s use of Section 702, which permits targeted surveillance only of foreign persons located outside the United States, is subject to extensive oversight and incorporates substantial protections to protect the privacy and civil liberties of individuals. In short, we believe Congress got it right in 2008 when it passed Section 702 and in 2012 when Congress reauthorized it. Nevertheless, the Intelligence Community continues to be open to reasonable reforms to Section 702 to further enhance the already-substantial privacy protections contained in the law, but we simply cannot support legislation that would impede the operational efficacy of this vital authority.
We also believe it is important that Congress reauthorize Section 702 before it expires on December 31, 2017. Although the current Section 702 certifications do not expire until April 2018, the Intelligence Community would need to start winding down its Section 702 program well in advance of that date. Winding down such a valuable program would force agencies to divert resources away from addressing foreign threats. Short-term extensions are not the long-term answer either, as they fail to provide certainty, and will create needless and wasteful operational complications. We urge Congress, therefore, to act quickly to reauthorize Section 702 in a manner that preserves the effectiveness of this critical national security law before it expires.Jeff Sessions
Attorney General of the United StatesChristopher Wray
Director, Federal Bureau of InvestigationDaniel R. Coats
Director of National IntelligenceMike Pompeo
Director, Central Intelligence AgencyAdmiral Michael S. Rogers
Director, National Security AgencyItalian National Pleads Guilty to Illegally Exporting and Attempting to Export Night Vision Equipment and Assault Rifle ComponentsRead the Press Release
Earlier today, in federal court in Brooklyn, Giovanni Zannoni, an Italian national and member of the Italian armed services, pleaded guilty to illegally exporting controlled military technology from the United States to Italy. As part of his plea, Zannoni agreed to forfeit $436,673.73, in addition to the dozens of gun parts and night vision and thermal imaging devices recovered by the government in connection with this prosecution. Today’s plea took place before United States District Judge Pamela K. Chen.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Leigh-Alistair Barzey, Special Agent-in-Charge, Department of Defense, Defense Criminal Investigative Service, Northeast Field Office (DCIS), and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the guilty plea.
“The defendant Giovanni Zannoni skirted laws intended to safeguard our national security by keeping specialized technologies out of the wrong hands,” stated Acting United States Attorney Rohde. “We will investigate and prosecute those who illegally export our defense technology, upon which our troops rely, to the fullest extent of the law.” Ms. Rohde extended her grateful appreciation to U.S. Department of Defense, Defense Criminal Investigative Service, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, for their assistance in this case.
“The defendant’s guilty plea is the result of a successful joint investigation conducted by the U.S. Attorney’s Office, HSI and the Defense Criminal Investigative Service (DCIS),” stated DCIS Special Agent-in-Charge Barzey. “The illegal exportation of controlled military technology poses a significant threat to our national security and DCIS is committed to working with its law enforcement partners to ensure that sensitive defense technology is properly protected.”
“Over a period of four years, Zannoni illegally moved military equipment half way around the globe for a profit, with no concern of the buying agent,” said HSI Special Agent-in Charge Melendez. “His actions supported the military potential and weapons proliferation of other nations, creating potential national security risks. Protecting our homeland encompasses many missions, including safeguarding our nation's technologies, and Zannoni will now face the consequences on this actions.”
According to court filings and admissions made in court at the time he entered the guilty plea, between June 2013 and May 2017, Zannoni illegally exported and attempted to export night vision goggles and assault rifle components designated as defense articles on the United States Munitions List. The export of sensitive night vision equipment and assault rifle components requires a license from the United States Department of State. The Department of State has placed restrictions on the export of items that it has determined could make a significant contribution to the military potential and weapons proliferation of other nations and that could be detrimental to the foreign policy and national security of the United States. On May 14, 2017, the defendant was arrested after entering the United States at Miami International Airport.
When sentenced, Zannoni faces a maximum sentence of 20 years in prison and a $1 million fine.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution, with the assistance from Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
GIOVANNI ZANNONI
Age: 35
Residence: Gavorrano, ItalyE.D.N.Y. Docket No. 17-CR-565 (PKC)
Iowa Business Owner Pleads Guilty to Tax Evasion Concealed More Than $5.5 Million in Gross Receipts and Lied to IRSRead the Press Release
Council Bluffs, Iowa – A McClelland, Iowa, businessman pleaded guilty today to tax
evasion, announced Principal Deputy Assistant Attorney General Richard Zuckerman and United
States Attorney Marc Krickbaum for the Southern District of Iowa.According to documents and information provided to the court, Michael Collins, 49, was
part-owner of a real-estate development firm that earned significant income in 2006. As a result
of his ownership in the company, Collins received approximately $289,000 in income that year,
but did not report it on his individual income tax return. In 2008, the Internal Revenue Service
(IRS) contacted Collins regarding the unreported income and Collins filed an amended return
reporting the income and reflecting a tax due of more than $100,000. However, Collins did not
pay the tax liability.From 2006 through the present, Collins also operated an excavating and trucking company
that generated more than $5.5 million in gross receipts. To evade payment of his outstanding tax
liability, Collins registered the business as well as its bank accounts in the name of nominees,
used nominee entities to conceal over $5 million in gross receipts from the business, filed
fraudulent corporate tax returns that listed nominees as the owners of the business and paid his
personal expenses using the business’ unreported income. Collins also filed fraudulent
documents with the IRS claiming to have no gross business receipts for the company and falsely
told IRS employees that his only source of income was unemployment benefits. He admitted to
causing a tax loss of more than $250,000.Sentencing is scheduled for May 11, 2018, before United States District Court Judge
Stephanie M. Rose. Collins faces a statutory maximum sentence of five years in prison. He also
faces a period of supervised release, restitution and monetary penalties.Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Marc
Krickbaum thanked special agents of IRS-Criminal Investigation, who conducted the
investigation, and Tax Division Trial Attorneys Matthew Hoffman and Lee Langston, who are
prosecuting the case.Additional information about the Tax Division’s enforcement efforts can be found on the
division’s Website.Investigation of 3 Overdoses Leads to Heroin Distribution Charges against Waterbury ManRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that ANDRE REED, 25, of Waterbury, was arrested today on a criminal complaint charging him with heroin distribution offenses.
REED appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe. The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
It is alleged that REED supplied heroin to another individual who then sold it to the victim.
On December 29, 2016, at approximately 6:53 a.m., Torrington Police and emergency personnel responded to a Torrington residence on the report of an unresponsive female at the residence. Efforts to resuscitate the victim, who was 29, were not successful. Investigators seized drug and non-drug evidence indicating that the death was an opioid overdose. Investigators also seized the victim’s cell phone.
On December 29, 2016, at approximately 8:28 a.m., Torrington Police and paramedics responded to another Torrington residence on the report of an unresponsive female. The victim, who was 21, was pronounced deceased at the scene. Investigators seized drug and non-drug evidence, including multiple empty “folds,” which are commonly used to package heroin. Investigators also seized the victim’s cell phone.
As alleged in the complaint, analysis of the cell phones seized from the two Torrington overdose victims revealed that the 21-year-old victim contacted REED to purchase heroin on December 28, 2016. Minutes later, the 21-year-old victim sent a text message to the 29-year-old victim that said “I already called my dude he’s around.”
The complaint charges REED with possession with intent to distribute and distribution of heroin, and conspiracy to distribute heroin. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Torrington, Danbury and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Illinois Resident Sentenced on Sex Trafficking ChargesRead the Press Release
FARGO – United States Attorney Chris C. Myers announced that on December 21, 2017, ANTHONY DONTE COLLIER, a/k/a Koleone The Great, age 30, of Illinois, was sentenced in federal court after being found guilty by a trial jury in April of this year. Collier was sentenced to 40 years’ imprisonment, to be followed by a lifetime of supervised release on charges of Conspiracy to Engage in Sex Trafficking, Sex Trafficking of a Child, and four counts of Sex Trafficking. Collier was further ordered to pay $600 in special assessments to the Crime Victims’ Fund, in addition to a $5,000 special assessment payable to the Trafficking Victims’ Protection Act, and also $38,885.41 in restitution to the victims in the case.
This case came to the attention of law enforcement after Collier’s state probation office discovered an image on Collier’s Facebook page depicting a young woman on her knees, dressed in lingerie, with a dog collar around her neck which was attached to a leash that was being held by Collier. Law enforcement learned that Collier was frequenting hotels with that same woman depicted in the image and subsequently obtained a search warrant for Collier’s cell phone, which contained images of several women, including a 17-year-old juvenile girl. During the forensic examination of the cell phone, law enforcement found that the same images located on Collier’s cell phone were also seen on Backpage.com under the "Escort" section. The exam further revealed that the cell phone was utilized to purchase virtual currency known as "Bitcoins," which were ultimately used to purchase advertisements on Backpage.com; the ads depicted the same women and the same photos. Backpage.com is an online classified advertising company which Collier utilized to advertise the women for sex.
Victims were subsequently identified and interviewed, during which time they disclosed that Collier assaulted them, including urinating on one of the victims, to compel the victims to engage in commercial sex acts. The sex acts occurred in hotels as well as private residences located in both Moorhead and Fargo. A total of five victims were identified and interviewed as part of this case.
"This sentencing stands as a warning to those who would sell another person into sexual slavery," said Special Agent in Charge Alex Khu of HSI – St. Paul. "HSI, in addition to our local and state law enforcement partners, remain ever vigilant and will take aggressive action to find and rescue victims, and to put their victimizers behind bars."
U. S. Attorney Myers stated, "This case is a shining example of the commitment of local, state, and federal law enforcement, along with victim service providers, to rescue victims of sex trafficking and to punish defendants like Mr. Collier who prey on victims for their own financial gain."
This case was investigated by the Moorhead Police Department, Department of Homeland Security – Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigation.
Assistant United States Attorneys Jennifer Puhl and Brett Shasky prosecuted the case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consist of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, ND BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
The NDHTTF includes representatives from Youthworks, the Children’s Advocacy Center, the Domestic Violence Crisis Center, Lutheran Social Services, the ND Association of Counties, a Force to End hUman Sexual Exploitation (FUSE), a survivor of human trafficking, First Nations Women’s Alliance (FNWA), and the Department of Homeland Security - Homeland Security Investigations (HSI).
Idaho Falls Pair Who Possessed Drugs and Guns Plead Guilty in Federal CourtRead the Press Release
POCATELLO – Nicholas Levi Olsen, 34, and Chanel Lynn Bistodeau, 32, both of Idaho Falls, pleaded guilty this week to possession with intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced. Olsen and Bistodeau were indicted by a federal grand jury on April 25, 2017. This case highlights the strong partnership between the U.S. Attorney’s Office and the Eastern Idaho Partnership in reducing gun and drug offenses in eastern Idaho.
According to court records, in March of this year, Olsen and Bistodeau caught the attention of police while driving in Blackfoot. Olsen and Bistodeau parked at an apartment complex, where Bistodeau fled on foot while Olsen walked away from the car. The police caught up with Olsen, walked Olsen back to the car and had Olsen empty $730 in cash from his pocket. Shortly thereafter, Olsen ran. The police were unable to catch Olsen or Bistodeau.
Police searched the car. They found approximately ten ounces of methamphetamine, three pistols and drug paraphernalia.
On April 15, police arrested Olsen and Bistodeau at the Fairbridge Inn in Idaho Falls. Police found another pistol, about eight grams of methamphetamine and over four grams of heroin.
The charge for possession with intent to distribute methamphetamine is punishable by a term of imprisonment of ten years to life, a $10,000,000 fine, and at least five years of supervised release. Sentencing is set for January 18, 2018, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated through the combined efforts of the Bingham County Prosecutor’s Office, the Blackfoot Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Attorney’s Office, and the Eastern Idaho Partnership. The Eastern Idaho Partnership is a collaborative effort among local communities, law enforcement, the State of Idaho, and the U.S. Attorney for the District of Idaho. The Partners combine efforts to fund and support a Special Assistant United States Attorney, or “SAUSA.” The SAUSA, Bryan Wheat, works with local prosecutors and law enforcement to prosecute serious local crimes in federal court. The Partnership focuses its efforts on regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus that affect the southeast Idaho region.
“I applaud all of the agencies involved in this investigation and prosecution for a job well done,” said Bingham County Prosecutor Cleve Colson, who is also the chair of the Eastern Idaho Partnership. “The prosecution of Chanel Bistodeau and Nicholas Olsen through the Eastern Idaho Partnership is a clear illustration of its effectiveness in creating stronger and safer communities in eastern Idaho. The partnership has been a tremendous success and I look forward to its continued growth.”
“I am so pleased with the cooperative efforts between federal, state and local law enforcement officers and prosecutors in working together to reduce drug and gun crimes in Idaho. I applaud the Eastern Idaho Partnership for the concern they have for keeping their communities safe and am honored to work with them hand-in-hand,” U.S. Attorney Bart Davis said.
Hunterdon County, New Jersey, Man Pleads Guilty to Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A High Bridge, New Jersey, man today admitted distributing images of child sexual abuse over the Internet, Acting U.S. Attorney William E. Fitzpatrick announced.
Darrel Underhill, 73, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of distributing child pornography.
According to documents filed in the case and statements in court:
Underhill used a peer-to-peer file sharing program on his computer to download videos and images of child sexual abuse. In October 2016, law enforcement downloaded over three dozen such videos from Underhill’s computer. After executing a search warrant at Underhill’s home in March of 2017, agents located nearly 1000 videos and over 12,000 images of child sexual abuse on Underhill’s computers. Underhill admitted today that he was making videos available for others to download.
The distribution of child pornography charge to which Underhill pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Underhill will be required to register as a sex offender. Under the terms of the plea agreement, if accepted by the court, Underhill will be sentenced to 121 months in prison. He remains in custody pending his March 28, 2018 sentencing date.Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Homeland Security (DHS), Homeland Security Investigation’s (HSI) Newark Division, under the direction of Acting Special Agent in Charge Michael McCarthy, with the investigation.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender
Home Invasion Leader Indicted for Robbery and Gun ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Jose Jesus Carbajal, 31, of Waterford, charging him with conspiracy to commit Hobbs Act robbery, interference with commerce by robbery, and brandishing a firearm during and in relation to a crime of violence, United States Attorney Phillip A. Talbert announced. The Hobbs Act prohibits robbery and extortion that interferes with interstate commerce.
According to court documents, Carbajal was the leader of a home invasion crew that posed as police officers and robbed drug dealers. On one occasion, Carbajal allegedly led his crew to a house in Arbuckle, California, where they robbed the home’s occupants of money, marijuana, and other valuables before fleeing.
This case was the product of an investigation by the Federal Bureau of Investigation and the Colusa County Sheriff’s Department. Assistant United States Attorneys Melanie Alsworth and Ross Pearson are prosecuting the case.
If convicted of all counts, Carbajal faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Hartford Woman Sentenced to 2 Years in Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ZULEYMA CRUZ, 29, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for her role in a heroin trafficking operation.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration Hartford Task Force investigation into a drug trafficking organization that distributed large quantities of heroin in the Hartford area. The investigation revealed that CRUZ allowed members of the organization to store heroin, cocaine, drug packaging materials and cash at her Wayland Street apartment, and allowed her apartment to be used to process and package narcotics for street sale.
CRUZ and several co-conspirators were arrested on June 4, 2015. On that date, a search of CRUZ’s apartment revealed a bag of cocaine, approximately 400 bags of heroin, a heroin stamp, six boxes containing hundreds of stamped bags for packaging heroin, and other items used to process and package heroin for street sale.
On February 17, 2017, CRUZ pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
CRUZ is currently incarcerated in state custody. In September 2015, she was sentenced in Manchester Superior Court to a total effective sentence of seven and one-half years of incarceration on convictions for manslaughter with a motor vehicle and assault with a motor vehicle.
Judge Bryant ordered CRUZ to begin serving the 24-month federal sentence when she is released from state custody.
Six other individuals were charged as a result of this investigation.
This matter has been investigated by the Drug Enforcement Administration’s Hartford Task Force with the assistance of the Connecticut State Police. The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrisburg Woman Charged with Distribution of HeroinRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marjorie Maldonado, age 30, of Harrisburg, Pennsylvania, was indicted on December 20, 2017, by a federal grand jury with unlawful distribution of heroin.
According to United States Attorney David J. Freed, the indictment alleges that Maldonado distributed heroin on December 1, 2017, in Harrisburg.
The charge stems from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this drug trafficking charge is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Sentenced to Prison for Tax FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Felix Ramon Diaz, age 58, of Harrisburg, Pennsylvania, was sentenced on December 19, 2017, to one year and one day imprisonment by United States District Court Judge William W. Caldwell for aiding and assisting the preparation of false tax documents.
According to United States Attorney David J. Freed, Diaz was a tax preparer who owned Felix Tax Service. From 2010 through 2013, Diaz filed 45 tax returns with false and fraudulent income, deductions, and addresses in an effort to maximize income tax refunds. Diaz’s conduct resulted in approximately $100,000 in losses taxes to the government.
Judge Caldwell noted the health issues facing Diaz and his lack of prior criminal history as mitigating factors. However, when imposing sentence, the judge noted the crimes were serious and Diaz committed the offense for years.
In March 2016, a grand jury indicted Diaz for the tax fraud scheme. On January 25, 2017, Diaz entered a guilty plea to the offense before Judge Caldwell.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and Assistant United States Attorney Michael A. Consiglio prosecuted the case.
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Harrisburg Man Charged with Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eddie Junior Pena, age 23, of Harrisburg, Pennsylvania, was indicted on December 20, 2017, by a federal grand jury for unlawful possession of a firearm.
According to United States Attorney David J. Freed, the indictment alleges that between March 2017 and December 2017, Pena possessed a 9mm Glock firearm as a convicted felon in furtherance of drug trafficking.
The charges stem from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for possession of a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possessing a firearm after being convicted of a felony offense is 10 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Glastonbury Man Charged with Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging JAMES RIPBERGER, 62, of Glastonbury, with one count of receipt of child pornography.
As alleged in court documents and statements made in court, on October 12, 2017, law enforcement officers conducted a search of RIPBERGER’s Glastonbury residence and seized computers and electronic storage devices. Preliminary analysis of the seized items revealed more than 125 images and videos of child pornography.
If convicted of receipt of child pornography, RIPBERGER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
RIPBERGER has been in federal custody since December 15, 2017, when he was arrested on a federal criminal complaint.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by Homeland Security Investigations, the Glastonbury Police Department and the Connecticut Center for Digital Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Gentilly Resident Sentenced to over 10 Years Imprisonment for Money Laundering and other Financial CrimesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CORNELL PENDLETON, age 51, of the Gentilly neighborhood in New Orleans, was sentenced today for his role in laundering money on behalf of heroin dealers in the New Orleans area.
U.S. District Judge Jane Triche Milazzo sentenced PENDELTON to a term of incarceration of 121 months, followed by two years of supervised release. Judge Milazzo also ordered PENDLETON to pay a fine of $100,000.
Following a weeklong trial, a jury found PENDLETON guilty of conspiracy to commit money laundering; numerous substantive money laundering offenses involving the purchase of real property and cars using illegal drug money; structuring his cash deposits; and providing false statements on loan applications. The jury also found that PENDLETON must forfeit over $700,000 in cash and assets that were involved in his criminal activities.
According to the evidence presented trial, the case against PENDLETON stemmed from a Drug Enforcement Administration investigation of a heroin-trafficking organization that operated in New Orleans East. The original investigation, nicknamed “Wild Wild East,” began in 2013 and has since resulted in the conviction of twelve New Orleans-based heroin dealers.
Through that investigation, the government began developing evidence that PENDLETON was helping drug dealers to acquire high-end assets in an effort to conceal the proceeds of their drug operation. These high-end assets included multiple cars, such as Mercedes, Porsche, Corvette, Bentley, and BMW; residential and investment real estate; jewelry, including Rolex watches; and other expensive items. PENDLETON’s scheme involved purchasing assets in his own name, and then allowing the drug dealers to use the assets while making sizable, off-the-books payments to PENDLETON. Once an asset was fully paid off, PENDLETON would often transfer title of the asset back to the drug dealer. PENDLETON was paid entirely in cash for his assistance in acquiring these assets. The evidence showed that, over a two and a half year period between 2012 and 2014, PENDLETON deposited over $1.5 million in cash into four bank accounts, while knowing that the cash included illegal drug proceeds.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter were in charge of the prosecution.
Four Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, False Claim of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announces that a federal grand jury in Raleigh has returned indictments charging JELBER ALEXANDER LOPEZ-SANCHEZ, age 25, of Guatemala, JUAN SEGURA-GOMEZ, age 48, of Mexico, and KEVIN TERRASA, age 32, of Mexico, with Illegal Reentry of a Deported Alien. Additionally, a federal grand jury in Raleigh has returned an indictment charging JOSE DARWIN MARTINEZ-LAINEZ, age 32, of Honduras, with False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage in Unlawful Employment in the United States, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, LOPEZ-SANCHEZ, found in Duplin County, SEGURA-GOMEZ, previously deported twice and found in Beaufort County, and TERRASA, previously deported twice and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, False Representation of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft, MARTINEZ-LAINEZ, found in Sampson County, would face maximum penalties of twenty-four years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
Former Owner of Sleep Study Clinics Pleads Guilty to Fraud, Tax ChargesRead the Press Release
ALEXANDRIA, Va. – The former owner of 1st Class Sleep Diagnostic Center and 1st Class Medical, pleaded guilty today to conspiracy to commit health care and wire fraud, and conspiracy to defraud the United States.
According to court documents, from at least 2005 through 2014, Dannie Ahn, 43, of Centreville, helped control, manage, and oversee various corporations, to include 1st Class Sleep Diagnostic Center and 1st Class Medical, which provided sleep studies and sleep-related treatment at clinics located throughout Northern Virginia and Maryland.
According to the statement of facts filed with the plea agreement, Ahn, along with a conspirator, directed a scheme to defraud health care benefit programs by causing the submission of false, fraudulent, and misleading claims. Ahn fraudulently incentivized individuals to receive sleep studies, which he had no reason to believe were medically necessary and were not authorized by any medical practitioner, in order to increase revenue. Ahn also caused kickbacks to be paid to physicians in exchange for referring patients to 1st Class, and disguised the kickbacks using various means.
According to the statement of facts, Ahn, along with a conspirator, caused 1st Class to pay personal expenses which were falsely and fraudulently characterized as business expenses on the financial books and records of 1st Class. Later, Ahn caused the false information, including the false business records of 1st Class, to be provided to various individuals for preparation of corporate income tax returns and individual income tax returns. According to court documents, the loss attributable to Ahn’s conduct is between $4.5 and $25 million, and the loss to government health care programs is more than $1 million.
Ahn pleaded guilty to conspiracy to commit health care and wire fraud, and conspiracy to defraud the United States. He is scheduled for sentencing on Sept. 14, 2018.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management (OPM), made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Katherine Wong and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-222.
Former Executive of Defunct Tampa Technology Company Sentenced to Five Years in Prison for Investment FraudRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Terrance F. Taylor (52, Bradenton) to five years in federal prison for conspiracy to commit wire fraud. The Court also ordered him to pay $3,341,500 in restitution to the victims of the fraud.
Taylor pleaded guilty on September 9, 2015.
According to court documents, in 2010, Taylor and Timothy Roberts founded Savtira Corporation Inc., a technology company headquartered in Ybor City. Savtira purported to offer a centralized, cloud-based shopping cart platform for online and traditional retailers to sell products, regardless of the device used by the online purchaser. Roberts and Taylor marketed Savtira stock to investors by making false claims about the company, including that Savtira was profitable and that the company had entered into executed agreements with nationally recognized technology firms. They also falsely claimed that Savtira owned patents and/or that the company was valued between $450 and $540 million. Roberts and Taylor then misused and misappropriated some of the investors’ funds for personal expenses and cash withdrawals without the investors’ consent or knowledge. They also failed to disclose that Roberts had entered into a settlement agreement with the U.S. Securities and Exchange Commission in 2008 that required Roberts to pay a fine and banned him from selling unregistered securities.
Roberts previously pleaded guilty to wire fraud and faces up to 20 years in federal prison. His sentencing hearing is scheduled for March 16, 2018.
This case was investigated by the Florida Office of Financial Regulation’s Bureau of Financial Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Rachel Jones.
Former Embraer Sales Executive Pleads Guilty to Foreign Bribery and Related ChargesRead the Press Release
A former sales executive of Embraer S.A. (Embraer), a Brazilian-based manufacturer of aircraft, pleaded guilty today in connection with a scheme to pay bribes to a high-level foreign government official in exchange for assistance in securing Embraer’s sale of aircraft to Saudi Arabia’s national oil company.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim of the Southern District of New York, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement.
Colin Steven, 61, a U.K. citizen residing in the United Arab Emirates, was charged by information filed today in the Southern District of New York with one count of violating the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to violate the FCPA, one count of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering, one count of conspiracy to launder money and one count of making a false statement. Steven pleaded guilty to all of those counts before U.S. District Judge Alison J. Nathan of the Southern District of New York. A sentencing date has not been scheduled yet. The Court set a control date of June 21, 2018.
As part of his plea, Steven, a former vice president of sales & marketing in Embraer’s Executive Jets Division, admitted that he engaged in a scheme to have Embraer pay bribes to a foreign official in exchange for assistance in getting an aircraft sales contract with favorable terms awarded to Embraer; retained a kickback as part of the scheme; and lied to law enforcement officials about his kickback.
Steven consented to the filing of the information, which alleged that Embraer was in negotiations with Saudi Arabia’s national oil company over a potential aircraft sale when Steven and the foreign official devised an arrangement whereby the foreign official would guarantee that Embraer would win a contract and that the contract would involve new rather than used aircraft in exchange for approximately $1.5 million in bribe payments. In early 2010, Saudi Arabia’s national oil company awarded Embraer a contract for three new aircraft, valued at approximately $93 million. The information further alleged that he arranged to disguise the bribes as commissions to a South African company that was owned in part by Steven’s personal friends. The South African company transferred the bulk of the bribe proceeds to the foreign official’s intermediary but, at Steven’s direction, paid a portion of the bribe proceeds to Steven.
In pleading guilty, Steven admitted that he executed, and conspired with others to execute, the bribery and kickback schemes; laundered and conspired to launder the proceeds of those schemes through the South African company and lied to U.S. law enforcement about the kickback.
The guilty plea entered today follows the execution in October 2016 of a deferred prosecution agreement between the Department and Embraer, under which Embraer agreed to pay a $107 million penalty to the Department as part of a $205 million global resolution to investigations by the Department, the Securities and Exchange Commission and Brazilian authorities related to corrupt conduct in several countries, including Saudi Arabia. The agreement acknowledged Embraer’s cooperation with the investigations. With the cooperation of U.S. authorities, Brazilian authorities have charged 11 individuals for their alleged involvement in Embraer’s misconduct in the Dominican Republic. Saudi Arabian authorities have charged two individuals for their alleged involvement in Embraer’s misconduct in Saudi Arabia.
The FBI’s International Corruption Squads, based in Miami, Florida, and Los Angeles, California, investigated the case. Trial Attorneys John-Alex Romano and Nikhila Raj and Assistant Chief David Johnson of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Richard Cooper of the Southern District of New York, are prosecuting the case. The Fraud Section appreciates the cooperation and assistance provided by the SEC in this matter.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Department also appreciates the cooperation and assistance provided by authorities in Brazil, the Dominican Republic, South Africa and Switzerland in this matter.
In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Embraer Sales Executive Pleads Guilty to Foreign Bribery and Fraud ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and John P. Cronan, the Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that COLIN STEVEN pled guilty to Foreign Corrupt Practices Act, wire fraud, money laundering, and false statement charges arising from his role in paying bribes to a foreign official in exchange for assistance in obtaining business for STEVEN’s employer, Embraer S.A. (“Embraer”). STEVEN, a former executive in Embraer’s Executive Jets Division, arranged for Embraer to pay over $1.5 million in bribes to an official at the state-owned and state-controlled national oil company of Saudi Arabia (the “Saudi Arabia Company”), and ultimately received a kickback from a portion of the bribe proceeds. STEVEN pled guilty today before U.S. District Judge Alison J. Nathan.
According to the allegations contained in the Information to which STEVEN pled guilty, and statements made during the plea and other court proceedings:
Embraer, an aircraft manufacturer based in Brazil, has operations and subsidiaries in various locations around the world, including the United States and the Middle East. Embraer manufactures commercial, executive, and defense aircraft for governmental and private customers throughout the world. STEVEN, a British national, was an executive responsible for overseeing the generation of sales for a particular Embraer division in regions that included the Middle East.
In approximately 2006, STEVEN learned that the Saudi Arabia Company was interested in purchasing aircraft, and for a period of three years after that STEVEN and a salesperson who reported to him had occasional contact with employees of the Saudi Arabia Company to discuss the potential sale of three Embraer jets. In late 2009, STEVEN met with an official of the Saudi Arabia Company (the “Saudi Arabia Official”) in London, England. The Saudi Arabia Official offered to help Embraer win the aircraft contract from the Saudi Arabia Company, and to ensure that the Saudi Arabia Company would buy new – not used – jets from Embraer, in exchange for a payment. STEVEN agreed to cause Embraer to pay the Saudi Arabia Official $550,000 per aircraft, for a total bribe amount of $1.65 million.
In late 2009 and early 2010, STEVEN developed a plan to use a company based in South Africa (the “South Africa Company”) as a purported agent on the transaction, which would result in Embraer paying the South Africa Company $1.65 million in “finders fees,” when in fact the South African Company would perform no work on the transaction and would be used to facilitate and to disguise the payment to the Saudi Arabia Official.
In early 2010, on the Saudi Arabia Official’s recommendation, a committee at the Saudi Arabia Company approved the purchase of three new aircraft from Embraer for $93 million. A subsidiary of Embraer also entered into an agreement with the South Africa Company, pursuant to which the South Africa Company would purportedly promote the sale of Embraer aircraft to a subsidiary of the Saudi Arabia Company. In reality, the South Africa Company provided no services to Embraer other than serving as a conduit to funnel payments to the Saudi Arabia Official. An Embraer subsidiary subsequently wired $1.65 million to the South Africa Company, in December 2010 and February 2011. Between February 2011 and April 2011, the South Africa Company wired approximately $1.4 million to bank accounts in Switzerland and Bahrain held by an individual who was acting as an intermediary for the Saudi Arabia Official.
STEVEN also developed a plan to take a portion of the bribe proceeds as a kickback, and ultimately received approximately $130,000 in wire transfers from the South Africa Company in October and December 2011.
STEVEN was later interviewed by an agent of the Federal Bureau of Investigation in December 2014, and falsely stated that a wire transfer he received from the South Africa Company in 2011 was for the purpose of buying real estate in connection with a potential business venture between STEVEN and an executive of the South Africa Company.
The guilty plea entered today follows the execution in October 2016 of a deferred prosecution agreement between the Department of Justice and Embraer, under which Embraer agreed to pay a $107 million penalty as part of a $205 million global resolution to investigations by the Department, the Securities & Exchange Commission, and Brazilian authorities related to corrupt conduct in several countries, including Saudi Arabia. The agreement acknowledged Embraer’s cooperation with the investigations.
* * *
STEVEN, 61, resides in Dubai, United Arab Emirates. A chart listing the maximum sentences relating to the charges in the Information is below. As part of his plea agreement, STEVEN is also required to pay forfeiture and restitution. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. STEVEN is scheduled to be sentenced by Judge Nathan on June 21, 2018.
This case is being prosecuted by the Justice Department’s Criminal Division Fraud Section and the Office’s Complex Frauds and Cybercrime Unit. Trial Attorneys John-Alex Romano and Nikhila Raj as well as Assistant United States Attorney Richard Cooper and Assistant Chief David Johnson of the Fraud Section are prosecuting the case.
The FBI’s International Corruption Squads, based in Miami, Florida, and Los Angeles, California, investigated the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Office also appreciates the cooperation and assistance provided by authorities in Brazil, the Dominican Republic, South Africa and Switzerland in this matter.
Count
Charge
Maximum sentence
One
Conspiracy to violate the Foreign Corrupt Practices Act (“FCPA”), 18 U.S.C. § 371
Five years in prison
Two
Violation of the FCPA, 15 U.S.C. §§ 78dd-1 and 78ff(c)(2)(A), and 18 U.S.C. § 2
Five years in prison
Three
Conspiracy to commit wire fraud, 18 U.S.C. § 1349
20 years in prison
Four
Wire fraud, 18 U.S.C. §§ 1343 and 2
20 years in prison
Five
Conspiracy to commit money laundering, 18 U.S.C. § 1956(h)
20 years in prison
Six
Money laundering, 18 U.S.C. §§ 1956(a)(2)(A) and 2
20 years in prison
Seven
False statements, 18 U.S.C. § 1001
Five years in prison
Former Delhi City Clerk Sentenced to over a Year in Federal Prison for Stealing over $100,000 from the CityRead the Press Release
A woman who used her position as the city clerk for the City of Delhi to steal more than $100,000 in public funds was sentenced yesterday to more than a year in federal prison.
Angela Billings from Anamosa, Iowa, received the prison term after a guilty plea to theft from a program receiving public funds.
In a plea agreement, Billings admitted that she held a position of public trust as the city clerk and that her position of trust contributed significantly to the commission and concealment of her crime. She agreed that she stole more than $100,000 from the city by, among other means, using the city’s credit card for personal expenses and adjusting her own utility bills. Billings also agreed she owes more than $130,000 in restitution, which includes costs the city incurred to conduct the audit that discovered the breadth of her crime.
Billings was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Billings was sentenced to 15 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to pay $133,915.31 in restitution to the city. She must also serve a term of supervised release after the prison term. There is no parole in the federal system.
Public employees hold a special place in our society and are given a great deal of trust,” stated United States Attorney Peter Deegan. “We are committed to holding those employees responsible when they betray that trust by stealing from the communities they are supposed to be serving.”
Billings was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Jacob A. Schunk and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2032.
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Former Bothell Resident Pleads Guilty to Production, Distribution and Possession of Images of Child MolestationRead the Press Release
A 53-year old Bothell, Washington, man pleaded guilty today in U.S. District Court in Seattle to production, distribution and possession of child pornography, announced U.S. Attorney Annette L. Hayes. DONALD MCCOY JR was arrested in October 2016, and has been in federal custody since that time. MCCOY faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge James L. Robart on March 12, 2018.
According to records filed in the case, MCCOY came to the attention of federal law enforcement in 2016, when an undercover agent using peer-to-peer file sharing software observed images of child rape being shared from a computer tied to an internet protocol address that traced back to MCCOY’s residence. After obtaining the address and a court authorized search warrant, law enforcement executed the search at MCCOY’s home. Forensic examination of various electronic devices revealed that MCCOY had made images of the molestation of four young children between the ages of 6 and 13 years-old. MCCOY molested several the young children while they were asleep.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) with assistant with the Seattle Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Florida Resident Guilty of Theft of Federal Student Aid Funds and Aggravated Identity Theft Sentenced to 44 Months of ImprisonmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROMAN WILLIAMS, age 36, of Pensacola, Florida, was sentenced today after previously pleading guilty to theft of government funds and aggravated identity theft.
U.S. District Judge Eldon E. Fallon sentenced WILLIAMS to 44 months of imprisonment, to be followed by two years of supervised release after his release from prison. WILLIAMS was also ordered to pay restitution to his victims.
According to court documents, WILLIAMS falsified federal student loan applications using stolen identities and then used the stolen student aid monies for his own personal use.
Acting U.S. Attorney Evans praised the work of the Department of Education, Office of the Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Richard R. Pickens, II was in charge of the prosecution.
Firearm and Drug Trafficking Lands Washington Man in PrisonRead the Press Release
HELENA — On Thursday, December 21, 2017, United States District Court Judge Sam Haddon sentenced Christian Jesus Ruiz, 23, of Sunnyside, Washington, to 60 months in prison, 5 years’ supervised release, and a $100 surcharge for possession of a firearm in furtherance of a drug trafficking offense. Ruiz was part of a scheme by multiple conspirators to distribute very large amounts of methamphetamine through Deer Lodge, Montana each month between January 2016 and January 2017. Members of the conspiracy, including Ruiz, possessed firearms in connection with the drug trafficking crimes they committed in Montana.
Other members of the conspiracy included Jeff Allen Trask, Chase Ryan Storlie, and Hector Ricardo Gonzalez. The court previously sentenced Trask and Gonzalez. Trask was sentenced to 54 months in prison and five years of supervised release for his role in the conspiracy. Gonzalez was sentenced to 260 months in prison and five years of supervised release. Storlie faces sentencing on January 3, 2018.
Gonzalez and Ruiz’s involvement in the conspiracy came to a sudden end on January 24, 2017, when the authorities arrested them in Mineral County, Montana, in possession of 20 pounds of methamphetamine. The methamphetamine was destined for Deer Lodge.
The charges against Ruiz and his codefendants are the result of an investigation by the Montana Division of Criminal Investigations, the Missouri River Drug Task Force, the Helena Police Department, the Lewis and Clark County Sheriff’s Office, the Federal Bureau of Investigation, the Mineral County Sheriff’s Office, the Powell County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Montana Highway Patrol, and the Drug Enforcement Administration. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Tom Bartleson prosecuted the case.
United States Attorney Kurt Alme explained, “I want to thank our law enforcement partners for helping us bring these defendants to justice. The volatile combination of methamphetamine and guns is closely associated with a rise in violent crime in communities across Montana. The Department of Justice is committed to reducing violent crime in those communities and prosecuting Ruiz and his co-defendants is another positive step toward that goal.” Alme also praised the collaborative work of the law enforcement agencies and prosecutors in the case.
Felony Warrant Enforcement Operation Nets 22 Defendants Wanted for Gun, Drug and Other ChargesRead the Press Release
FAYETTEVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that “Operation Wintry Mix” resulted in the arrest of sixteen (16) defendants for outstanding federal charges in a coordinated warrant enforcement operation. In addition, three subjects related to this operation were found to be in the custody of the North Carolina Department of Corrections and a local jail in Virginia. Federal detainers have been filed against those subjects. Also, three subjects were arrested on state charges.
The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant is contained in the parenthesis following the personal information.
- Larry Donnell Adams,41, of Fayetteville, NC (Felon in Possession of a Firearm)
- Robert Edmond, Jr., 43 of Fayetteville, NC (Possession with Intent to Distribute Cocaine & Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Felon in Possession of a Firearm)
- Dervin Francis, 24, of Fayetteville, NC (Felon in Possession of a Firearm)
- Malcolm Dion Fuller, 36, of Fayetteville, NC (Felon in Possession of a Firearm)
- Adam Golden, 23, of Fayetteville, NC (2-Counts of Felon in Possession of a Firearm, Possession of a Stolen Firearm)
- Jesus Eliezer Gonzalez-Acevedo, 27,of Fayetteville, NC (Arson)
- Jason Stewart Hollingsworth, 41, of Fayetteville, NC (Possession with the Intent to Distribute Oxycodone & Amphetamine, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, & Felon in Possession of a Firearm)
- Joseph Luther Lewis, 28, of Spring Lake, NC (Felon in Possession of a Firearm, & Possession of a Stolen Firearm)
- Antonio Rashawn McArthur, 23, of Fayetteville, NC (Felon in Possession of a Firearm)
- Johnny Dewayne McArthur, 33, of Fayetteville, NC (Felon in Possession of a Firearm, Possession with the Intent to Distribute Marijuana, & Possession of Firearm in Furtherance of a Drug Trafficking Crime)
- Larry Lamar Nance, 32, of Raleigh, NC (Felon in Possession of a Firearm)
- Christopher Ray Parrish, 33, of Fayetteville, NC (Possession with the Intent to Distribute Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime & Felon in Possession of a Firearm)
- Rochi Dowell Purdie, 42, of Rex, NC (Felon in Possession of a Firearm, & Possession of Marijuana and Pyrrolidinopentiophenone (Flakka))
- Brandon Alexander Siermons, 25, of Fayetteville, NC (Felon in Possession of a Firearm)
- Albert Vines, 28, of Dunn, NC (2-Counts of Hobbs Act Robbery, 2-Counts of Felon in Possession of a Firearm, Possession with the Intent to Distribute Cocaine, & Possession of a Firearm in Furtherance of a Drug Trafficking Activity)
- Harold Edward Williams, Jr., 45, of Fayetteville, NC (3-Counts of Distribution of Heroin, Possession of a Firearm in Furtherance of Drug Trafficking Crime, & Felon in Possession of a Firearm)
The enforcement operation was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, (ATF), the United States Marshal Service, Fayetteville Police Department, Cumberland County Sheriff’s Office, Cumberland County District Attorney’s Office, the North Carolina Department of Public Safety Adult Probation and the United States Probation Office.
The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
Feds Focus on Mail Theft Based Identity Theft Crimes during Busy Holiday Shipping SeasonRead the Press Release
Five people have been charged federally in five separate mail theft cases brought in joint effort with the U.S. Postal Inspection Service to combat identity theft, announced U.S. Attorney Annette L. Hayes. Mail and package theft is a heightened problem in the busy holiday shipping season. These cases have taken some of the worst offenders off the street over the last few months. Some of those charged have already entered guilty pleas, and face mandatory minimum sentences for aggravated identity theft.
“Over the last several months we have worked with investigators from the Postal Inspection Service to federally prosecute mail thieves who repeatedly steal from homes, apartment buildings and other locations around western Washington,” said U.S. Attorney Annette L. Hayes. “These cases should serve as a warning that there are significant consequences for those who steal mail and victimize so many people.”
“The arrest and prosecution of prolific mail thieves is a top priority of the Postal Inspection Service,” said Inspector in Charge Tony Galetti.
Some of the cases pursued in this initiative include:
CHARLLETTE MILLER, 35, of Olympia, Washington pleaded guilty to access device fraud and will be sentenced in March 2018. MILLER used stolen mail, including drivers’ licenses to open bank and credit accounts in the names of her victims and then ran up thousands of dollars in fraudulent charges.
JESSE FRANKLIN DENHAM, 27, is scheduled for trial in January 2018 on an eight-count indictment charging bank fraud, access device fraud and aggravated identity theft. Using stolen mail, DENHAM allegedly opened bank and credit accounts, and forged balance transfer checks associated with the accounts. When arrested, DENHAM had mail from more than 50 victims in his car. DENHAM remains in custody.
SHAWLEE GEIGER, 41, of Seattle, is scheduled for trial in June 2018 on an eight-count indictment charging her with multiple counts of bank fraud and aggravated identity theft. GEIGER allegedly used stolen checks to inflate the balances of bank accounts she controlled and then quickly withdrew cash before the bank was notified that the checks were invalid.
DENNIE DENG, 27, of Auburn, Washington is scheduled for trial in March 2018 on a four-count indictment charging him with bank fraud and aggravated identity theft. DENG allegedly used stolen checks to inflate the balance of his bank account and then withdrew cash. In some instances he altered the stolen checks to further increase the amount of money fraudulently deposited in his account.
TRAVIS SICKLOVAN, 34, pleaded guilty in October to bank fraud, aggravated identity theft and possession of stolen mail. SICKLOVAN was arrested in November 2016, in a Snohomish County hotel with stolen mail from more than 60 victims. SICKLOVAN used the stolen mail to make and cash fraudulent checks and to obtain fraudulent credit cards.
Defendants convicted of aggravated identity theft face a mandatory minimum two years in prison in addition to any other sentence imposed based on other convictions.
The charges contained in a criminal complaint or indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The Seattle Division of the U.S. Postal Inspection Service employs a multi-faceted approach to address mail theft in western Washington. Using prevention and investigative efforts to combat mail theft, postal inspectors work with local, state and federal agencies across the area. Targeted enforcement data is used to identify, arrest and prosecute the mail thieves who are having the biggest impact on the community. The inspection service also seeks out ways to improve the security of postal facilities and mailboxes leading the effort to secure US Mail to prevent access to would-be thieves. Lastly, the Postal Inspection Service educates the public on ways to mitigate their risk of mail theft and to report it in a timely manner when it does happen.
These cases are being prosecuted by Assistant United States Attorneys Andre Penalver, Stephen Hobbs and Seungjae Lee.
Federal Jury Convicts Eloy “Chino” Alonzo of Methamphetamine Distribution and Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. - Following a three-day trial before the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, a jury found Eloy “Chino” Alonzo, 31, of Sweetwater, Tennessee, guilty of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of his drug trafficking. Sentencing is set for 2:00 pm, April 26, 2018, in U.S. District Court.
Evidence presented at trial showed that Eloy Alonzo, an illegal alien and citizen of Mexico, was a large-scale drug distributor that brought and sold pounds of methamphetamine into east Tennessee. A large quantity of methamphetamine and multiple assault rifles were found at Alonzo’s residence during the execution of a search warrant in Monroe County, Tennessee, in September 2016.
Law enforcement agencies participating in this joint investigation included the Ninth Judicial Drug Task Force, Drug Enforcement Administration, Tennessee Bureau of Investigation, Monroe County Sheriff’s Department, Sweetwater City Police Department, U.S. Homeland Security Investigations, Blount County Sherriff’s Department and Fifth Judicial Drug Task Force. Assistant U.S. Attorneys Cynthia Davidson and LaToyia Carpenter represented the United States.
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Federal Judge Sentences Prior Felon to 10 Years in Prison for Possessing 31 GunsRead the Press Release
BIRMINGHAM – A federal judge on Wednesday sentenced a Birmingham man to 10 years in prison on separate counts of being a convicted felon in possession of firearms, including a 2016 incident in which police recovered 31 firearms after he barricaded himself and three other people inside a house to avoid arrest.
U.S. Attorney Jay E. Town and the Bureau of Alcohol, Tobacco, Firearms, and Explosives announced the sentence.
U.S. District Court Judge Sharon Lovelace Blackburn sentenced WILLIE LEE COOKS, 46, for being a convicted felon in possession of a firearm on April 4, 2016, and multiple firearms on August 30, 2016.
“Cooks was a threat to the community, to his victims, and to law enforcement,” Town said. “Violent felons who possess firearms will not get diversion. They will not get probation. They will get a cell in the Bureau of Prisons.”
Birmingham Police stopped Cooks on April 4, 2016, for driving a vehicle without a license plate and arrested him on an outstanding felony warrant after seeing a Glock 9mm pistol on the floorboard, according to Cook’s plea agreement. The pistol was loaded with 31 rounds of ammunition in an extended magazine. Cooks had several prior felony convictions at that time, according to his plea agreement.
On Aug. 30, 2016, the U.S. Marshals Fugitive Task Force and the Alabama Law Enforcement Agency task force approached Cooks’ Birmingham residence to arrest him on a warrant, and Cooks barricaded himself and others in the house, according to his plea agreement. A Birmingham Police SWAT team was called to the scene and tear gas was deployed to get the occupants out of the house after negotiations for Cooks’ surrender failed, according to the plea agreement.
Police subsequently found the 31 firearms hidden in a crawl space under the house.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case, which Assistant U.S. Attorney L. James Weil Jr. prosecuted.
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East Bay Man Charged with United States Postal Service Mail BombingRead the Press Release
SAN FRANCISCO – A complaint has been filed in federal court charging Ross Gordon Laverty with mailing an explosive device with the intent to injure or kill, announced United States Attorney Brian J. Stretch, U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the complaint unsealed this morning, Laverty, 56, of Oakland, mailed at least one explosive device. The charge is based upon a bombing incident that occurred in October of this year.
The complaint alleges that on October 11, 2017, a package containing an improvised explosive device was delivered to an address in East Palo Alto, Calif. The addressee became suspicious of the package and initially decided not to open it. Nevertheless, on October 19, the victim carried the package outside of his home and opened it in his back yard, causing it to detonate and injure the victim.
The criminal complaint charges Laverty with one count of mailing an explosive devise with the intent to injure or kill, in violation of 18 U.S.C. § 1716(j)(2). Laverty made his initial appearance and was arraigned on the charge this morning in San Francisco before U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero scheduled a detention hearing for December 28, 2017.
A complaint merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charge, Laverty faces a maximum sentence of 20 years’ imprisonment and a maximum fine of $250,000. A term of supervised release and restitution may be ordered upon conviction. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the U.S. Postal Inspection Service with assistance from the ATF and the FBI.
Dominion Diagnostics pays $815,000 to the United States and State of Vermont to resolve allegations of False Claims Act violationsRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that Dominion Diagnostics, Inc. has paid $815,000 in total to the United States and the State of Vermont to resolve civil claims that Dominion Diagnostics violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. § 630, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which Dominion Diagnostics submitted the alleged false claims.
Dominion Diagnostics provides clinical drug monitoring solutions, clinical information, and support services to a variety of medical specialties. This includes urine drug testing and routine clinical blood testing to support screening, diagnosis and monitoring. Dominion Diagnostics is based in North Kingston, Rhode Island and has an office and does business in Vermont.
The United States and the State of Vermont contend that from January 1, 2010 through December 23, 2015, Dominion Diagnostics knowingly presented or caused to be presented claims for payment from Medicare and the Vermont Medicaid program for urine specimen validity testing when referring physicians did not specifically order specimen validity testing. The United States and the State of Vermont contend Dominion Diagnostics’ standing orders automatically included these validity tests without consideration as to whether the referring physicians had actually ordered the validity tests. In addition, the State of Vermont contends Dominion Diagnostics adopted and put into effect a new Usual & Customary Rate for certain claims and impermissibly gave that rate retroactive application on claims submitted to the Vermont Medicaid program.
“As exemplified by this settlement, health care companies doing business in Vermont who take shortcuts or ignore programmatic requirements, such as individualized medical necessity determinations, will face serious consequences,” said United States Attorney Christina E. Nolan. “We will pursue and hold accountable those who knowingly or recklessly bill the government for health care services without proper authorization and justification.”
The settlement announced today resolves the foregoing allegations without the need for litigation. Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dominion Diagnostics, nor a concession by the United States or State of Vermont that their claims are not well founded.
This matter was investigated by the United States Attorney’s Office for the District of Vermont, with assistance from the Office of the Inspector General of the Department of Health and Human Services, and by the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Nikolas P. Kerest handled the matter on behalf of the United States. Vermont Assistant Attorney General Steven J. Monde of the Medicaid Fraud and Residential Abuse Unit represented the State of Vermont. R. Jeffrey Behm of the law firm Sheehey, Furlong & Behm, P.C., represented Dominion Diagnostics.
Disney Cruise Ship Employee Pleads Guilty to Wire Fraud, Admitting He Embezzled More than $275,000Read the Press Release
Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951
NEWS RELEASE SUMMARY – December 21, 2017
SAN DIEGO – Renan Dias Da Rocha Gomes, a former employee aboard the Disney Wonder cruise ship, entered a guilty plea today to one count of wire fraud in connection with his scheme to embezzle more than $275,000 from The Walt Disney Company.
Gomes, who was arrested by federal agents on October 27, 2017, when the Disney Wonder made port in San Diego, admitted that from at least October 2015 through October 27, 2017, he was employed as a merchandise host and assigned to work in the merchandise stores aboard the Disney Wonder. At the hearing today, Gomes admitted he executed his scheme by fraudulently obtaining money through his access to the VeriFone payment system in order to embezzle funds from Disney for his own personal use and benefit.
According to the plea agreement, Gomes admitted he made approximately $275,000 in unauthorized charges to Disney’s bank account, and loaded the value of the funds onto Disney gift cards while working aboard the Disney Wonder on the high seas. Gomes also admitted that from April 23, 2017 through May 7, 2017, he spent approximately $37,700 of the embezzled funds for his own personal benefit by taking his family on a Disney World vacation. While on this vacation, Gomes stated the he used the gift cards with the embezzled funds to pay approximately $8,200 on lodging, approximately $29,500 on food, beverage, merchandise and entertainment expenses. As part of his plea agreement, Gomes will be required to repay The Walt Disney Company the total amount of funds he stole which the company was unable to recover.
“When someone misappropriates company assets, the loss not only affects the company but also the consumer. Today’s guilty plea sends a strong message that those who commit such corporate fraud, even while operating on the high seas, will be held accountable in this district,” said United States Attorney Adam L. Braverman.
“This case illustrates the dangers that businesses face from trusted insiders who seek to defraud them. While external fraud threats are usually the focus, the greatest fraud threats to businesses are typically from within,” stated Special Agent in Charge Eric S. Birnbaum. “The FBI remains committed to working with our law enforcement partners to detect corporate crime in all its forms and bring those responsible to justice.”
“Today’s guilty plea is an example of the significant results that can be achieved when law enforcement agencies form a great partnership and work diligently to bring a case to prosecution,” said David Shaw, Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “HSI will continue to investigate these individuals who attempt to enrich themselves by fraudulent means.”
Gomes’ next court appearance is on March 9, 2018 at 9 a.m. before U.S. District Judge Cathy A. Bencivengo. Gomes, who is a Brazilian national, remains in federal custody.
DEFENDANT Criminal Case No. 17CR3897-CAB
Renan Dias Da Rocha Gomes Age: 32 Citizenship: Brazil
SUMMARY OF CHARGES:
Count 1 – Wire Fraud (18 U.S.C. § 1343)
Maximum Penalties: mandatory minimum of 20 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years; restitution
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Homeland Security Investigations, Immigration and Customs Enforcement
U.S. Customs and Border Protection
Departments of Justice and Homeland Security Release Data on Incarcerated Aliens—94 Percent of All Confirmed Aliens in DOJ Custody Are Unlawfully PresentRead the Press Release
President Trump’s Executive Order on Enhancing Public Safety in the Interior of the United States requires the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to collect relevant data and provide quarterly reports on data collection efforts. On Dec. 18, 2017, DOJ and DHS released the FY 2017 4th Quarter Alien Incarceration Report, complying with this order.[1] The report found that more than one-in-five of all persons in Bureau of Prisons custody were foreign born, and that 94 percent of confirmed aliens in custody were unlawfully present.
"The American people deserve a lawful system of immigration that serves the national interest," Attorney General Sessions said. "But at the border and in communities across America, our citizens are being victimized by illegal aliens who commit crimes. Nearly 95 percent of confirmed aliens in our federal prisons are here illegally. We know based on sentencing data that non-citizens commit a substantially disproportionate number of drug-related offenses, which contributes to our national drug abuse crisis. The simple fact is that any offense committed by a criminal alien is ultimately preventable. One victim is too many. It's time for Congress to enact the President's immigration reform agenda so that we start welcoming the best and brightest while turning away drug dealers, gang members, and other criminals."
“While the administration is working diligently to remove dangerous criminal aliens from our streets, this report highlights the fact that more must be done,” said Secretary of Homeland Security Kirstjen Nielsen. “We will continue to pursue President Trump’s immigration priorities, including securing the border, enhancing interior enforcement, and pursuing a merit-based immigration system, but Congress must act immediately to adopt obvious solutions to strengthen DHS and DOJ efforts to confront dangerous criminal aliens.”
Section 16 of the Executive Order directs the Secretary of Homeland Security and the Attorney General to collect relevant data and provide quarterly reports regarding: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
A total of 58,766 known or suspected aliens were in in DOJ custody at the end of FY 2017, including 39,455 persons in BOP custody and 19,311 in USMS custody. Of this total, 37,557 people had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens (i.e., non-citizens and non-nationals), while 21,209 foreign-born people were still under investigation by ICE to determine alienage and/or removability
Among the 37,557 confirmed aliens, 35,334 people (94 percent) were unlawfully present. These numbers include a 92 percent unlawful rate among 24,476 confirmed aliens in BOP custody and a 97 percent unlawful rate among 13,081 confirmed aliens in USMS custody.
This report does not include data on the foreign-born or alien populations in state prisons and local jails because state and local facilities do not routinely provide DHS or DOJ with comprehensive information about their inmates and detainees—which account for approximately 90 percent of the total U.S. incarcerated population.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a quarterly basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.
Out of the 185,507 inmates in BOP custody, 39,455 (21 percent) were reported by BOP as foreign-born. Further details regarding these 39,455 foreign-born inmates are as follows:
- 20,240 (51 percent) were unauthorized aliens who are subject to a final order of removal;
- 14,979 (38 percent) remain under ICE investigation;
- 2,374 (6 percent) were unlawfully present and now in removal proceedings;
- 1,852 (less than 5 percent) were lawfully present aliens but are now in removal proceedings; and
- 10 were aliens who have been granted relief or protection from removal.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
USMS identified 19,311 aliens and foreign-born inmates under ICE investigation detained at USMS facilities. Further details regarding these 19,311 foreign-born inmates are as follows:
- 11,459 (59 percent) were aliens who are subject to a final order of removal;
- 6,230 (32 percent) remain under ICE investigation;
- 1,261 (6.5 percent) were unlawfully present and now in removal proceedings;
- 358 (less than 2 percent) were lawfully present but are now in removal proceedings; and
- 3 were aliens who have been granted relief or protection from removal.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
The Departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics and the Department of Homeland Security’s Office of Immigration Statistics.
[1] The FY 2017 2nd Quarter report is available at: https://www.justice.gov/opa/pr/pursuant-executive-order-public-safety-department-justice-releases-data-incarcerated-aliens-0. Data for the 3rd quarter of FY 2017 is available at: https://www.dhs.gov/news/2017/08/01/pursuant-executive-order-public-safety-departments-justice-and-homeland-security.
Danbury Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 31, of Danbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of distribution of heroin.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2017, the Danbury Police Department responded to Danbury residence on a report of an untimely death of a woman. Investigators collected from the scene three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp. Testing of the contents of the bag confirmed that it contained heroin.
The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine (Xanax) overdose.
In May 2017, investigators made two controlled purchases of heroin from CHARON. Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.
CHARON was arrested on a federal criminal complaint on September 12.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. CHARON is scheduled to be sentenced by U.S. District Judge Michael P. Shea on March 12, 2018.
This matter has been investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, the Danbury Police Department and the Darien Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David C. Nelson.
Cypress Man Sentenced for Enticement of a Minor via Messaging AppRead the Press Release
HOUSTON – A 34-year-old Cypress man has been ordered to federal prison following his conviction of coercion and enticement of a minor, announced Acting U.S. Attorney Abe Martinez. Christopher Ray Nunes pleaded guilty June 30, 2017.
Today, U.S. District Judge Melinda Harmon took into consideration the facts and circumstances of the case, specifically that Nunes knew what he was doing was illegal and yet he still travelled to meet someone he believed to be a 15-year-old girl for sexual activity. She then imposed a 120-month term of imprisonment. Nunes was further ordered serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
On Nov. 19 and 20, 2015, Nunes communicated through the texting application known as KIK with someone he believed to be a 15-year-old girl. During those conversations, he detailed his intended plans to engage in sexual acts with her.
On Nov. 20, 2015, Nunes drove from Cypress to Fort Bend County for the purpose of engaging in a sexual act with the girl. He was taken into custody upon his arrival. At the time of his arrest, Nunes was in possession of the phone on which the sexually explicit KIK chats occurred.
Nunes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Houston Metro Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Corning Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Kevin Theil, 54, of Corning, NY, who was convicted of possession of child pornography, was sentenced to 30 months in prison and 10 years supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between 2013 and December 16, 2016, the defendant possessed more than 300 images of child pornography on an Apple MacBook Pro laptop. Theil received the images over the internet. Some of the images depicted prepubescent minors and violence.
In November, 2016, the Ithaca Police Department was alerted by a cooperating witness (CW) that she knew a man from Corning who had a sexual interest in children. The CW told officers that Theil showed her naked images of young girls, approximately seven or eight years old, on his iPad. In addition, the CW stated that Theil admitted to her that he had previously sexually abused his niece on multiple occasions when she was approximately 14 years old. The CW further stated that on another occasion, Theil asked her to facilitate a sexual encounter with a minor female.
On December 15, 2016, search warrants were executed at the defendant’s residence in Corning and at Theil’s lake house in Hammondsport, NY. Following the searches, a forensic examination of the defendant’s computer revealed 367 images of child pornography on Theil’s laptop.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, the New York State Police, under the direction of Major Richard Allen, the Ithaca Police Department, under the direction of Chief Pete Tyler, the Steuben County Sheriff’s Department, under the direction of Sheriff James Allard, and the Albany Division of the FBI, under the direction of Special Agent-in-Charge Vadam Thomas.
Clinton Felon Sentenced to More Than Twenty Years in Federal Prison after Possessing Loaded Firearm and Then Assaulting Mount Vernon Police OfficerRead the Press Release
An eight-time felon who possessed a loaded firearm, and then assaulted and injured a Mount Vernon police officer during a traffic stop on Highway 30 in February 2017, was sentenced today to more than 20 years in federal prison.
Erwin Keith “Duffy” Bell, age 36, from Clinton, Iowa, received the prison term after a June 14, 2017, guilty plea to being a felon in possession of a firearm and ammunition. At the guilty plea, Bell admitted he possessed a .22 magnum caliber revolver after eight prior felony convictions in Iowa and Illinois for, among other things, possession of controlled substances with the intent to deliver, firearms trafficking, extortion, and burglary.
Evidence at the sentencing hearing showed that Bell was a passenger in a car travelling westbound on Highway 30 on February 4, 2017. When a Mount Vernon police officer attempted to arrest Bell, Bell struck the officer and fled. After a brief chase, Bell “squared off” with the officer and resisted arrest. Bell grabbed the officer’s duty baton and hit the officer with it. Bell also attempted to reach for the officer’s waistband during the struggle. After law enforcement officers subdued Bell, they found a loaded firearm on the ground. Bell later threatened to “beat” the arresting law enforcement officer, spat on another law enforcement officer, and was combative at a Cedar Rapids hospital.
Bell was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Bell was sentenced to 248 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $400 in restitution the City of Mount Vernon, Iowa. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Bell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Federal Bureau of Investigation, the Mount Vernon Police Department, the Lisbon Police Department, the Linn County Sheriff’s Office, the Mechanicsville Police Department, the Iowa State Patrol, the Clinton Police Department, the Davenport Police Department, the Eldridge Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-mj-65 and 17-cr-27.
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Citizen of Guatemala Pleads Guilty to Reentering U.S. after Being Deported for Sex Assault ConvictionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIMAS ESCOBAR, 41, a citizen of Guatemala last residing in New Britain, pleaded guilty today in New Haven federal court to one count of reentry of a removed alien.
According to court documents and statements made in court, ESCOBAR was admitted to the U.S. as a lawful permanent resident in November 2004.
In October 2011, ESCOBAR was convicted in Bristol Superior Court of sexual assault in the second degree and was sentenced to eight years of incarceration, execution suspended after 18 months, and 10 years of probation. He also was subject to mandatory sex offender registration.
In May 2013, ESCOBAR was deported from the U.S. to Guatemala.
On June 7, 2017, Plainville Police alerted ICE to ESCOBAR’s presence in the U.S. On June 14, ICE officers arrested ESCOBAR following a traffic stop in New Britain.
ESCOBAR has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on March 15, 2018, at which time he faces a maximum term of imprisonment of 20 years.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cheektowaga Man Sentenced for Attempting to Possess Child PornographyRead 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 Andrew Reiner, 30, of Cheektowaga, NY, was sentenced to 108 months in prison for attempting to possess child pornography before U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that, beginning in June 2016, the defendant communicated with a 15-year-old girl via cellphone applications Kik and Skout in an effort to have sexual intercourse with the child victim. Through the cellphone applications and text messaging, the defendant convinced the minor victim to sneak out of her home late at night to meet him for sexual activity on as many as four occasions. The defendant attempted to entice the victim to ask her friends to participate in sexual activity as well. Between June 2016 and July 2016, the defendant also asked the 15-year-old girl to send him sexually explicit photographs. Evidence shows the defendant had sexual intercourse with two other minor females.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Violent Crimes Against Children Program, under the direction of Special Agent-in-Charge Adam S. Cohen.
Charles County Sheriff’s Deputy Sentenced to 2 Years in Prison for Possession of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm has sentenced former Charles County Sheriff’s Deputy Alexander C. Sullivan, age 38, of King George, Virginia, to 2 years in prison followed by five years of supervised release for possession of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Sheriff Troy D. Berry of the Charles County Sheriff’s Office; and Sheriff Steve F. Dempsey of the King George County Sheriff’s Office.
According to the plea agreement, the National Center for Missing and Exploited Children (NCMEC) received four tips from a company that provides cloud security concerning suspected child pornography being uploaded to a specific telephone number in October and November 2016. An officer from the Charles County Sheriff’s Department conducted a search on the telephone number and determined that it belonged to Alexander Sullivan of Indian Head, Maryland. A state search warrant for Sullivan and his telephone was executed in Charles County on November 17, 2016. A preview of the materials on the phone allegedly revealed more than 100 images and at least seven videos containing child pornography.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, the Charles County Sheriff’s Office and the King George County Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristi N. O’Malley, who are prosecuting the federal case.
California man charged with using the mail to distribute methamphetamine to VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Superseding Indictment today charging Alexis Ocegueda, 23, with conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine, distribution of 50 grams or more of a mixture and substance containing methamphetamine, and attempted distribution of 50 grams or more of a mixture and substance containing methamphetamine.
According to Court documents, the United States alleges that during the conspiracy, Ocegueda shipped packages containing methamphetamine from San Diego, California to Vermont using the United States Postal Service. As part of the investigation, law enforcement seized over 250 grams of methamphetamine shipped by Ocegueda to addresses in Vermont.
On December 13, 2017, Ocegueda was arrested by United States Postal Inspectors and agents of the Drug Enforcement Administration at his residence in San Diego, California pursuant to a Criminal Complaint and Arrest Warrant issued by the Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont. On December 19, 2017, Ocegueda appeared before the Honorable William V. Gallo, United States Magistrate Judge for the Southern District of California. Ocegueda stipulated to his pretrial detention, and was ordered removed to the District of Vermont. Ocegueda’s initial appearance in the District of Vermont has not yet been scheduled
The United States Attorney emphasizes that the charges contained in the Superseding Indictment are merely accusations and that Ocegueda is presumed innocent unless and until he is proven guilty. If Ocegueda is convicted, he faces a mandatory minimum sentence of five years, and a maximum possible sentence of forty years on each alleged count.
United States Attorney Christina E. Nolan commended the efforts of the Drug Enforcement Administration and the United States Postal Inspection Service in the investigation of Ocegueda. Nolan added, “it is through such collaborative efforts across agencies and jurisdictions that we bring large-scale traffickers of dangerous drugs to justice. This case exemplifies how our dedicated public servants in law enforcement join forces for the health and safety of the citizens they are sworn to protect. We thank DEA, USPIS, and their local partners for closing off this methamphetamine pipeline that ran from the west coast to Vermont.”
“This arrest reflects DEA’s strong commitment to bring to justice those that distribute methamphetamine,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA and its local, state, and federal law enforcement partners will do everything in our power to keep this highly addictive drug off the streets of Vermont. This investigation demonstrates the strength of collaborative law enforcement efforts in Vermont and across the country, as well as our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who traffics this poison.”
“It is our duty as Postal Inspectors to go after those individuals who attempt to ship illicit drugs through the US Mail. The war on drugs has been an on-going and hard fought battle for law enforcement. Postal Inspectors will aggressively pursue anyone who attempts to use the Postal Service to facilitate drug trafficking,” said Nichole Cooper, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. An attorney has not yet appeared in Vermont on behalf of Ocegueda. The investigation was conducted by the Drug Enforcement Administration, the United States Postal Inspection Service – Los Angeles Division, and the United States Postal Inspection Service – Boston Division.
Butte County Couple Indicted for Trafficking Methamphetamine in Butte and Shasta CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Curtis Dale Sawyer, 52, and Ann Marie Vance, 49, both of Chico, charging them with conspiring to possess and possessing methamphetamine for distribution, U.S. Attorney Phillip A. Talbert announced. Vance was also charged with unlawful possession of a firearm.
According to court documents, on December 7, officers stopped Sawyer while he was driving northbound on Interstate 5 in Shasta County. After a narcotics canine alerted to the car, agents searched the vehicle and found over three pounds of methamphetamine. Afterwards, law enforcement officers searched the Chico home that Sawyer shared with Vance, where they found more methamphetamine and $106,634 in cash. Officers found another 8.3 pounds of methamphetamine in a car Vance was driving near the home, and a subsequent search of a storage unit connected to Vance uncovered additional methamphetamine, cash, and five firearms. Vance is prohibited by law from possessing firearms.
This case is the product of an investigation by the Shasta Interagency Narcotics Task Force, the Butte Interagency Narcotics Task Force, the Shasta County Sheriff’s Office, and the Drug Enforcement Administration.
If convicted of the most significant drug charges, Sawyer and Vance each face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of the firearm charge, Vance faces a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Brooke County woman admits to embezzling from credit unionRead the Press Release
WHEELING, WEST VIRGINIA – A Wellsburg, West Virginia woman pled guilty today to taking more than $82,000 from a local credit union, United States Attorney Bill Powell announced.
Michelle K. Martin, age 45, pled guilty to one count of “Theft, Embezzlement or Misapplication by Credit Institution Employee.” Martin admitted to embezzling approximately $82,000 from the Strip Steel Community Federal Credit Union in Brooke County from October 2016 to May 2017.
Martin faces up to 30 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Brevard County Man Sentenced to 24 Years for Production of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Billy Leon Dyer (78, Melbourne) to 24 years in federal prison for producing child pornography. The Court also ordered him to forfeit his residence located at 7664 Candlewick Drive and a vehicle that he used during the offense.
Dyer pleaded guilty on September 20, 2017.
According to court documents, between June 22, 2016, and February 9, 2017, Dyer induced at least three teen girls to engage in sexually explicit conduct so that he could produce child pornography. Dyer paid the girls, who were between 14 and 15 years old, $140-$200 each time he had sex with them. Sometimes he gave them drugs in exchange for sex. Agents discovered Dyer’s conduct after he discussed the details of his explicit activity during jail calls that he made to adult inmates at the Brevard County Jail.
In March 2017, law enforcement officers conducted an undercover operation using an undercover officer posing as an adult woman online. Dyer began a conversation with the “woman” and asked to “meet her soon.” The “woman” said that she was unable to have sex with him, but referred her 15-year-old cousin. Dyer told the “woman” that he would pay her a $40 finder’s fee for referring her “cousin,” and that he would pay her “cousin” $150 to have sex with him. During their conversation, Dyer admitted that he liked young girls and arranged a time to meet the “cousin” for sex. When he arrived at the predetermined location, agents arrested him. On his phone, computer, and thumb drive, agents located more than 170 images depicting the teen girls that Dyer had sex with at his house.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
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.
Boylston Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
BOSTON – A Boylston man pleaded guilty today in federal court in Worcester to two child pornography charges.
Randy Alan Chaplis, 33, pleaded guilty to one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. U.S. District Court Judge Timothy J. Hillman scheduled sentencing for March 22, 2018. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest.
On Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four.
On March 15, 2017, federal agents executed a search warrant at Chaplis’ residence and seized an external hard drive and a desktop computer that included multiple images of child pornography.
The charging statutes provide for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Beach Aviation Owner Robert “Charles” Brady Arrested on 56-Count IndictmentRead the Press Release
Robert Charles Brady, 36, of Fort Lauderdale, was arrested after being charged for wire fraud, filing false records in federal investigation and operating an aircraft without an airman’s certificate. U.S. Magistrate Judge Dave Lee Brannon ordered that Brady be detained.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. Department of Transportation, Office of the Inspector General (DOT-OIG), made the announcement.
As alleged in the Indictment, from 2012 to October 2017, Brady owned Beach Aviation, formerly located in Pompano and Boca Raton. It is alleged that Brady operated an illegal charter air carrier service and flight school in which Brady and his employees chartered flights to and from Bahamas and other destinations in the United States without authorization from the FAA. In addition, Brady falsified records seeking a second-in-command rating on a convair jet and claimed to be certified flight instructor on student logbooks, which were relied upon by students and FAA to verify flight hours for FAA pilot certifications and ratings.
The Indictment charges Brady with 56 separate counts. If convicted, Brady faces a maximum sentence of 20 years on each of the 12 counts of wire fraud, 20 years on each of the 17 counts of filing false records in a federal investigation, and three years on each of the 27 counts of operating an aircraft without an airman’s certificate.
Mr. Greenberg commended the investigative efforts of DOT-OIG and the Federal Aviation Administration. The case is being prosecuted by Assistant U.S. Attorney Scott Behnke.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Baton Rouge Man Sentenced for Operating an Aircraft in Air Transportation without an Airman’s CertificateRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER ROBERTS, age 33, of Baton Rouge, was sentenced today after previously pleading guilty to operating an aircraft in air transportation without an airman’s certificate.
U.S. District Judge Lance M. Africk sentenced ROBERTS to 5 years of probation.
According to court documents, ROBERTS possessed an airman’s certificate prior to September 2009. On or about September 10, 2009, the Federal Aviation Administration (FAA) issued ROBERTS an Emergency Order of Revocation after it was determined that an emergency existed related to safety in air commerce and immediately removed ROBERTS’ airman’s certificates, which are required to pilot an aircraft. Nevertheless, on or about January 25, 2016, ROBERTS knowingly piloted a Cessna 421 aircraft from Cookville, Tennessee to Hammond, Louisiana. Additionally, on or about May 16, 2017, ROBERTS knowingly piloted a Cessna 310 aircraft with passengers from the New Orleans International Airport in Kenner, Louisiana to Sarasota/Bradenton Airport in Florida.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Transportation, Office of Inspector General, and the U.S. Department of Homeland Security, Bureau of Customs and Border Protection, Office of Air and Marine, in investigating this matter. Assistant U.S. Attorney Loan “Mimi” Nguyen was in charge of the prosecution.